GPGI Cuts 2026 Ebitda Outlook After Husky Cost Miss

The Tip Desk · November 7, 2026 · 4 min read

Third-quarter pro forma adjusted net sales were $509.6 million, up about 4.5%, as the company lowered full-year adjusted Ebitda guidance to $520 million–$550 million.

GPGI, Inc. (GPGI), a diversified multi-industry platform, reported third-quarter 2026 pro forma adjusted net sales of $509.6 million, up about 4.5% from a year earlier, reversing a 4% year-over-year decline in the second quarter.

Pro forma adjusted EBITDA was $146.3 million, up 6.6% year over year, after a 13% year-over-year decline in the prior quarter. The margin was 28.7%, up about 60 basis points from a year earlier, after a 230-basis-point year-over-year decline in the second quarter.

The company said third-quarter results were in line with expectations, with strength at CompoSecure and improving demand at Husky. It is adjusting full-year 2026 guidance while still expecting a sequentially strong fourth quarter.

CompoSecure delivered record adjusted net sales of $140.7 million, up 16.4% from a year earlier, which the company attributed to robust demand across a broadening customer base, including new program wins. Record pro forma adjusted EBITDA was $61.2 million, up 22.9%, and the margin rose about 230 basis points to 43.5%. The company said the results reflected organic revenue growth and continued operational efficiencies from implementation of the Resolute Operating System.

Husky adjusted net sales were $368.9 million, up 0.5% year over year. The company said the business returned to growth in systems and had strong growth in spare parts, offsetting difficult system comparisons and customer deferrals on aftermarket tooling and hot runners. Husky pro forma adjusted EBITDA was $88.8 million, down 0.9%, with the margin down about 30 basis points to 24.1%. The margin improved about 500 basis points sequentially.

Husky total pipeline was up 9% versus the third quarter of 2025, total orders up 7%, and aftermarket orders up 13%. Sequentially from the second quarter, pipeline rose 6%, total orders 4%, aftermarket orders 11%, and total backlog 5%. The company said it anticipates further acceleration in the fourth quarter given a strong near-term pipeline, particularly for systems, and that strengthening near-term pipeline and systems backlog coverage provide support for revenue growth and improved profitability in the fourth quarter.

For the fourth quarter of 2026, GPGI expects pro forma adjusted net sales of $630 million–$660 million, about 1% above the year-ago quarter at the midpoint, with low-single-digit organic revenue growth at the midpoint. CompoSecure is expected to grow high teens; Husky plus or minus low-single-digit growth and deliver its prior sales forecast. Pro forma adjusted EBITDA is guided to $178 million–$208 million, about 8% above the year-ago quarter at the midpoint, with high-single-digit adjusted EBITDA growth at the midpoint. The margin range is 27.0%–29.0%. The company said margin-rate expansion is expected to be led by CompoSecure, partially offset by Husky’s delayed realization of cost actions, elevated freight costs, and product mix.

For full-year 2026, the company now anticipates achieving its prior adjusted net sales forecast, with pro forma adjusted net sales of $2,034 million–$2,064 million, about 1% above the prior-year midpoint. It is lowering the range for pro forma adjusted EBITDA to $520 million–$550 million, about 2% below the prior-year midpoint, a roughly 8% ($45 million) cut at the midpoint from the prior $550 million–$610 million range. The margin range is 25.0%–27.0%. Pro forma adjusted free cash flow is guided to $250 million–$300 million, a roughly 8% ($25 million) cut at the midpoint from $275 million–$325 million. The company attributed the EBITDA and free-cash-flow reductions primarily to Husky.

Husky full-year 2026 pro forma adjusted net sales guidance was raised to $1,492 million–$1,519 million from $1,450 million–$1,545 million, about $8 million higher at the midpoint, with systems sales mix about 130 basis points higher than the May forecast. Husky pro forma adjusted EBITDA guidance was lowered to $320 million–$345 million from $344 million–$383 million, about $31 million lower at the midpoint. The company said the 2026 EBITDA miss versus the May plan was driven by cost rather than sales: direct labor about $11 million, delayed indirect-expense reductions about $14 million, and unfavorable mix and material costs about $6 million net of an $8 million sales benefit. It said it does not expect carryover in 2027.

As of September 30, 2026, net debt was $1,921 million and net debt to last-twelve-months pro forma adjusted EBITDA was 3.7 times. The company is targeting non-GAAP year-end net LTM leverage of approximately 3.5 times, versus a prior target of approximately 3.0 times.

For 2027, GPGI said it anticipates a return to its long-term growth algorithm, with mid-high-single-digit organic revenue growth, more than 100 basis points of margin-rate expansion, and double-digit-plus EBITDA growth.