Record Fourth Quarter and Full Year Sales

Record Fourth Quarter Direct-To-Consumer Sales

Record Fourth Quarter Gross Profit Expanded 5% to $263.2 Million

Strong Cash Flow from Operating Activities, Excluding IFRS 16, in the Fourth Quarter of $89.5 Million, Compared to $64.3 Million in the Same Period Last Year.

$10 Million Dividend Declared for the Fourth Quarter 2025

For 2026, the Company is Focused on Achieving High-Single Digit Sales Growth and Double-Digit Profitability Growth Compared to 2025

Delta Galil Industries, Ltd. (DELG/Tel Aviv Stock Exchange), the global designer, manufacturer and marketer of branded and private label intimate, activewear, loungewear and denim apparel for ladies, men, and children, today reported financial results for the fourth quarter and year ended December 31, 2025.

• Fourth quarter sales increased 2% to a record $611.1 million, compared to $599.2 million in the fourth quarter of last year
• Full year sales increased 4% to a record $2,118.9 million
• Fourth quarter gross profit expanded 5% to a record $263.2 million
• Full year gross profit increased 5% to a record $900.3 million
• Own-web sales (excluding Bare Necessities) in the fourth quarter increased 27%, representing the 12^th consecutive quarter of double-digit growth
• Strong Balance sheet with $135.8 million in cash and record shareholders’ equity of $903.6 million at December 31, 2025
• Declares a $10 million dividend for the fourth quarter of 2025, compared to $10 million for the fourth quarter last year

Isaac Dabah, CEO of Delta Galil, stated, “Our fourth quarter capped an outstanding year of execution in what has been a challenging retail environment. We successfully navigated the impact of U.S. tariffs, expanded programs with key global customers, and delivered record sales driven by organic growth across most of our channels, geographies, and product lines. At the same time, we continued to make strategic investments in our factories and distribution centers to improve efficiencies, which enhanced our operations, brands and capabilities.

“I am proud of our performance throughout 2025, which reflects the strength and commitment of our team, the resilience of our balance sheet, our culture of continuous improvement, and the power of our global platform. Together, these fundamentals give us confidence that we are well positioned for another year of profitable growth,” concluded Mr. Dabah.

Sales

Fourth quarter sales increased 2% to a record $611.1 million, compared to $599.2 million in the fourth quarter of 2024. Sales for the full year were a record $2,118.9 million, a 4% increase from $2,045.7 million in the prior year period.

DTC sales of the Company’s owned brands (excluding Bare Necessities) increased 15% in the fourth quarter and the 2025 full year, compared to the same periods last year.

Gross Margin

Gross profit in the fourth quarter grew 5% to a record of $263.2 million compared to $250.1 million in the fourth quarter of 2024. Gross profit for the 2025 full year grew 5% to a record $900.3 million compared to $856.3 million in the prior-year period.

Gross margin in the fourth quarter of 2025 increased by 140-basis points to 43.1%, compared to 41.7% in the fourth quarter of 2024. The year-over-year increase in the fourth quarter gross margin was due primarily to a higher portion of DTC sales, continued improved efficiency of our factories and positive exchange rates, partially offset by the U.S. tariff impact. Gross margin for the 2025 full year was a record 42.5%, up 60-basis points compared to 41.9% in the prior year period.

EBIT

EBIT excluding non-core items in the fourth quarter of 2025 was $59.3 million, compared to $64.7 million in the prior year. EBIT in the fourth quarter of 2025 was $51.1 million, compared to $53.1 million, in the fourth quarter last year.

EBIT excluding non-core items in the full year 2025 was $174.2 million, or 8.2% of sales, compared to $184.1 million, or 9.0% of sales, in the prior year period. EBIT in the full year 2025 was $164.4 million, compared to $169.2 million in the same period last year.

The year-over-year decrease in EBIT for the fourth quarter and 2025 full year was primarily due to the impact of the U.S. tariff and higher SG&A expenses mainly due to retail expansion, partially offset by ongoing improvement in efficiencies in the Company’s factories.

Non-Core Items

Below are details regarding non-core items in the reporting periods of 2025 and 2024, in millions:

Net Income

Net income excluding non-core items, net of tax, in the fourth quarter of 2025 decreased 13% to $35.5 million, compared to $41.0 million in the fourth quarter of 2024. Net income in the fourth quarter of 2025 was $28.0 million, compared to $29.5 million in the same period last year.

Net income excluding non-core items, net of tax, in the full year 2025 decreased 5% to $102.6 million, compared to $108.5 million in the 2024 full year. Net income in the 2025 full year was $93.7 million, compared to $94.6 million in the same period last year.

Diluted Earnings Per Share

Diluted earnings per share, excluding non-core items, net of tax, were $1.21 in the fourth quarter of 2025, compared to $1.43 in the fourth quarter of 2024. Diluted earnings per share in the fourth quarter of 2025 was $0.93, compared to $1.00 in the fourth quarter last year.

Diluted earnings per share, excluding non-core items, net of tax, were $3.55 in the full year 2025, compared to $3.82 in the same period of 2024. Diluted earnings per share in the full year 2025 were $3.21, compared to $3.29 in the same period last year.

EBITDA, Cash Flow, Net Debt, Equity, and Dividend

EBITDA, excluding IFRS 16, in the fourth quarter of 2025 was $69.9 million, compared to $72.4 million in the fourth quarter of 2024. In the full year 2025, EBITDA excluding IFRS 16 impact, was $209.1 compared to $217.1 million in the full year 2024.

Cash flow generated from operating activities, excluding IFRS 16, in the fourth quarter was $89.5 million, compared to $64.3 million in the fourth quarter of 2024. Cash flow generated from operating activities, excluding IFRS 16, was $131.8 million in the full year 2025, compared to $153.1 million in the full year 2024.

Net Debt to EBITDA, excluding IFRS 16, as of December 31, 2025, was 0.9x, compared to 0.6x on December 31, 2024.

Equity on December 31, 2025, was a record $903.6 million, compared to $803.6 million on December 31, 2024.

Delta Galil declared a dividend of $10 million, or $0.3825 per share, which will be distributed on March 11, 2026, with a record and “ex-dividend” date of February 25, 2026.

2026 Financial Guidance
The Company’s guidance excludes non-core items and changes in fair value of liability with respect to contingent consideration, includes IFRS 16, and is based on 1.15 US $ per 1 Euro and 3.15 NIS per 1 US $ and on current tax and duty rates:

Constant Currency - Excluding the Impact of Foreign Currency
This release refers to “reported” amounts in accordance with IFRS accounting principles (“GAAP”), which include translation and transactional impacts from foreign currency exchange rates. The release also refers to “constant dollar” amounts, which exclude the impact of translating foreign currencies into U.S. dollars, and are considered a non-GAAP financial measure. These constant currency performance measures should be viewed in addition to, and not in lieu of, or superior to, Delta Galil’s operating performance measures calculated in accordance with GAAP.

About Delta Galil Industries
Delta Galil is an innovative, global intimate apparel and activewear company engaged in the design, development, production and marketing of products. The Company offers products in a wide range of categories - Ladies intimates,  men’s underwear, loungewear, activewear, sleepwear, shapewear and socks. The Company's main markets are the U.S., Europe and Israel.

Delta Galil's leading customers include Nike, Victoria's Secret, Lululemon, Skims, Walmart and others. In addition, the Company holds a wide portfolio of owned brands such as Delta, Schiesser, Eminence, Athena, Splendid, PJ Salvage and under license agreements for leading brands such as adidas, Columbia, Calvin Klein, Tommy Hilfiger and others. The Company also designs, develops, markets and sells denim under the Seven for All Mankind brand.

Delta Galil has a vertically integrated and global production and distribution platform that includes the entire value chain, from the design stage to the delivery of the final product, which allows for operational flexibility, high efficiency and rapid response to market changes.

The Company's CEO and controlling shareholder is Mr. Isaac Dabah, who has extensive global experience in the fashion and  apparel sector.

Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may" "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, tax rates in the various countries the Company operates in, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

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