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 kids, today reported financial results for the second quarter ended June 30, 2026.

  • Sales increased 9% (5% in constant currency) to a second quarter record of $511.6 million, compared to $470.1 million in the prior year period.

  • Gross profit, inclusive of tariff refunds, expanded 26% year-over-year to a second quarter record of $253.2 million. Excluding tariff impact, gross profit increased 17% compared to the second quarter last year.

  • EBIT excluding non-core items and inclusive of tariff refund, of $54.6 million, compared to $31.0 million in the prior year period. Excluding tariff impact and non-core items EBIT increased 22% compared to the second quarter last year.

  • Strong operating cash flow, excluding IFRS 16 and inclusive of a $33 million tariff refund, was $56.8 million, compared to $13 million in the second quarter of 2025

  • During the second quarter of 2026, the Company received a cash refund of $33 million related to prior U.S. tariffs and intends to re-invest a portion of it into new strategic incremental growth initiatives, including investments to expand the Company’s manufacturing and supply chain capabilities.

  • The impact of the IEEPA tariff refund on the second quarter of 2026 includes a $16.8 million increase to gross profit and EBIT, and a $13.2 million benefit to net income, or $0.50 per diluted share.

  • Strong balance sheet with $122.9 million in cash and record shareholders’ equity of $938.3 million at June 30, 2026.

  • Declares an $8 million dividend for the second quarter of 2026, compared to $8 million for the second quarter last year.

Isaac Dabah, CEO of Delta Galil, stated, “We delivered an outstanding second quarter that meaningfully strengthened the momentum established in the first quarter and demonstrated broad-based progress across our business. Excluding the benefits of an IEEPA tariff refund, we achieved record second-quarter sales and an all-time record gross margin of 45.2%, as well as double-digit growth in all other profitability indicators. We expect to use a portion of the proceeds from the tariff refund to invest strategically in our manufacturing, supply chain and overall structure to support our future growth and profitability.”

“Second quarter and year-to-date results demonstrate that our growth initiatives are translating into stronger revenue, expanding profitability and increased cash generation. While the tariff refund provided an additional benefit to our reported results and cash flow, the strength of our underlying performance reflects the continued execution of our strategy and the investments we have made in product innovation, owned brands, manufacturing flexibility, global sourcing, and distribution capabilities. With positive momentum across the business and net debt lower than a year ago, we believe Delta Galil is increasingly well positioned to deliver sustained profitable growth through the balance of 2026 and beyond,” concluded Mr. Dabah.

Sales

Second quarter sales increased 9% to $511.6 million, compared to $470.1 million in the second quarter of 2025. Sales in constant currency increased 5%, compared to the second quarter last year. First half sales were $1,084.6 million, a 12% increase from $968.8 million in the prior-year period.

Gross Margin

Gross profit in the second quarter grew 26% to $253.2 million, compared to $201.3 million in the second quarter of 2025. Gross profit in the first half of 2026 was $491.9 million, compared to $403.9 million in the prior-year period.

Gross margin in the second quarter of 2026 increased by 670-basis points to 49.5%, compared to 42.8% in the second quarter of 2025. Gross margin in the first half of 2026 was 45.4%, compared to 41.7% in the first half of 2025.

Both second quarter and first half of 2026 gross profit included a $16.8 million benefit from the tariff refund. Excluding the tariff refund, gross margin in the second quarter and first half reached 45.2% and 43.4% of sales, respectively.

The year-over-year increase in gross margin was due primarily to continued improved efficiency of the Company’s factories, positive exchange rates, higher proportion of Delta Israel activity from total sales which is characterized by higher gross margin than average and the benefit of the tariff refund.

EBIT

EBIT, excluding non-core items in the second quarter of 2026 increased 76% to $54.6 million, compared to $31.0 million in the prior year. EBIT in the second quarter of 2026 increased 70% to $52.7 million, compared to $31.0 million, in the second quarter last year.

The year-over-year increase in EBIT for the second quarter was primarily due to higher organic and non-organic sales, and continued improved efficiency of the Company’s factories, partially offset by higher SG&A expenses mainly due to exchange rates and business expansion.

EBIT, excluding non-core items in the first half of 2026 increased 43% to $91.2 million, compared to $63.7 million, in the same period last year. EBIT in the first half of 2026 increased 38% to $87.8 million, compared to $63.7 million, in the same period last year.

Both second quarter and first half of 2026 EBIT included a $16.8 million benefit from tariff refund. Excluding tariff refund and non-core items, EBIT in the second quarter and first half increased by 22% and 17%, respectively.

Non-Core Items

For the second quarter and the first half of 2026 the Company recorded non-core expenses of $1.9 and $3.4 million, respectively, for changes in fair value of liability with respect to conditioned consideration. For the second quarter and first half of 2025, the Company recorded no non-core expenses.

Net Income

Net income excluding non-core items, net of tax, in the second quarter of 2026 increased 106% to $34.4 million, compared to $16.7 million in the same period last year. Net income in the second quarter of 2026 increased 96% to $32.8, compared to $16.7 million in the same period last year.

Net income excluding non-core items, net of tax, in the first half of 2026 increased 52% to $52.0, compared to $34.3 million in the same period last year. Net income in the first half of 2026 increased 43% to $49.2, compared to $34.3 million in the same period last year.

Both second quarter and first half of 2026 net income included a $13.1 million benefit from tariff refund. Excluding tariff refund and non-core items, net income in the second quarter and first half increased by 27% and 13%, respectively.

Diluted Earnings Per Share

Diluted earnings per share, excluding non-core items, net of tax, in the second quarter of 2026 was $1.21, compared to $0.57 in the same period last year. Diluted earnings per share in the second quarter of 2026 were $1.15, compared to $0.57 in the same period last year.

Diluted earnings per share, excluding non-core items, net of tax, in the first half of 2026 was $1.84, compared to $1.18 in the same period last year. Diluted earnings per share in the first half of 2026 was $1.73, compared to $1.18 in the same period last year.

Diluted earnings per share, excluding tariff refund and non-core items, net of tax, in the second quarter and first half of 2026 increased 25% and 14% to $0.71 and $1.34, respectively, compared to $0.57 and $1.18 in the same periods last year.

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

EBITDA, excluding IFRS 16, was $62.7 million, compared to $39.1 million in the second quarter of 2025. In the first half of 2026, EBITDA excluding IFRS 16 impact was $107.5, compared to $79.6 million in the first half of 2025. EBITDA excluding IFRS 16 and tariff refund in the second quarter and the first half of 2026, increased by 17% and 14%, respectively and reached $45.9 million and $90.7 million.

Cash flow generated from operating activities, excluding IFRS 16, was $56.8 million, compared to $13.0 million in the second quarter of 2025. Cash flow generated from operating activities, excluding IFRS 16, was $84.7 million in the first half of 2026, compared to $17.1 million in the first half of 2025. The year-over-year increase in operating cash flow was primarily due to improved profitability, a $33 million tariff refund, and reduced working capital, mainly associated with changes in accounts receivables and inventory.

Net Debt to EBITDA, excluding IFRS 16, as of June 30, 2026, was 0.7x, compared to 0.9x at June 30, 2025.

Equity on June 30, 2026, was a record $938.3 million, compared to $852.0 million on June 30, 2025.

Delta Galil declared a dividend of $8 million, or $0305 per share, which will be distributed on August 19, 2026, with a record and “ex-dividend” date of August 12, 2026.

2026 Financial Guidance

The Company reaffirmed its 2026 guidance, which excludes non-core items and tariff refund, and is based on 1.15 US $ per 1 Euro, 3.00 NIS per 1 US $ and current tax and duty rates:

 

Full Year 2026 Guidance

(in millions, except per share amount)

 

Full Year 2025 Results

(in millions, except per share amount)

 

 

 

 

Sales

$2,294 – 2,328

 

$2,118.9

EBIT

$204 – 212

 

$174.2

EBITDA

$324 – 332

 

$282.8

Net income

$123 – 116

 

$102.6

Diluted EPS ($)

$4.23 – 4.00

 

$3.55

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 company engaged in the design, development, production and marketing of intimate apparel and activewear. 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 owns 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.

Source: Delta Galil Industries, Ltd.

DELTA GALIL INDUSTRIES LTD.

Concise Consolidated Balance Sheets

As of June 30, 2026
 

 

June 30

 

December 31

 

2026

 

205

 

2025

 

(Unaudited)

 

(Audited)

 

Thousands of Dollars

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

121,532

 

88,692

 

133,973

Restricted Cash

1,418

 

1,501

 

1,802

Trade receivables

187,712

 

191,776

 

223,418

Income taxes receivable

7,018

 

1,080

 

2,569

Other accounts receivable

60,343

 

59,196

 

64,229

Financial derivative

2,288

 

505

 

1,390

Inventory

458,076

 

491,803

 

430,348

Assets held for sale

2,997

 

4,770

 

2,997

Total current assets

841,384

 

839,323

 

860,726

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

Investments accounted for using the equity method and long-term receivables

16,369

 

12,827

 

13,150

Investment property

2,375

 

2,640

 

2,513

Property, plant and equipment, net, including assets under construction

368,073

 

335,502

 

356,365

Goodwill

187,719

 

142,494

 

188,877

Brand names

155,465

 

138,730

 

157,704

Intangible assets, net of accumulated amortization

189,838

 

163,069

 

165,186

Right of use assets

356,494

 

292,170

 

294,733

Deferred tax assets

36,755

 

35,637

 

36,562

Financial derivative

5,002

 

1,956

 

3,202

Total non-current assets

1,318,090

 

1,125,025

 

1,218,292

Total assets

2,159,474

 

1,964,348

 

2,079,018

DELTA GALIL INDUSTRIES LTD.

Concise Consolidated Balance Sheets

As of June 30, 2026
 

June 30

 

December 31

 

2026

 

2025

 

2025

 

(Unaudited)

 

(Audited)

 

Thousands of Dollars

Liabilities and Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term bank loans

68,759

 

 

39,711

 

 

96,437

 

Current maturities of long term bank loans

25,474

 

 

22,325

 

 

23,759

 

Current maturities of bonds

33,471

 

 

31,289

 

 

31,625

 

Financial derivative

–

 

 

228

 

 

–

 

Current maturities of leases liabilities

79,649

 

 

68,730

 

 

72,690

 

Trade payables

204,631

 

 

213,580

 

 

188,055

 

Income taxes payable

16,299

 

 

14,993

 

 

21,146

 

Provision for realignment plan

1,806

 

 

3,506

 

 

2,898

 

Others payables

206,877

 

 

197,520

 

 

207,634

 

Total current liabilities

636,966

 

 

591,882

 

 

644,244

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

Bank loans

128,762

 

 

118,140

 

 

141,455

 

Post-employment benefits obligation, net

5,880

 

 

5,729

 

 

6,081

 

Lease Liability

310,684

 

 

249,916

 

 

253,299

 

Other non-current liabilities

63,151

 

 

43,783

 

 

54,695

 

Bonds

39,947

 

 

67,661

 

 

38,274

 

Deferred taxes liabilities

35,739

 

 

35,191

 

 

37,371

 

Total non-current liabilities

584,163

 

 

520,420

 

 

531,175

 

Total liabilities

1,221,129

 

 

1,112,302

 

 

1,175,419

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Equity attributable to company’s shareholders:

 

 

 

 

 

Share capital

23,714

 

 

23,714

 

 

23,714

 

Share premium

123,228

 

 

123,720

 

 

123,184

 

Other capital reserves

58,859

 

 

47,997

 

 

56,352

 

Retained earnings

706,650

 

 

639,992

 

 

678,210

 

Treasury shares

(7,802

)

 

(9,384

)

 

(8,848

)

 

904,649

 

 

826,039

 

 

872,612

 

Non-controlling interests

33,696

 

 

26,007

 

 

30,987

 

Total equity

938,345

 

 

852,046

 

 

903,599

 

Total liabilities and equity

2,159,474

 

 

1,964,348

 

 

2,079,018

 

DELTA GALIL INDUSTRIES LTD.

Concise Consolidated Statement of Income

For the six-month and three-month periods ending June 30, 2026
         
 

Six months ended June 30

 

Increase/

(Decrease)

 

Three months ended June 30

 

Increase/

(Decrease)

 

  

2026

 

2025

 

%

 

2026

 

2025

 

%
 

(Unaudited)

  

 

  

(Unaudited)

  

 
 

Thousands of Dollars

  

 

  

Thousands of Dollars

  

 
 

Excluding Earning Per Share data

  

 

  

Excluding Earning Per Share data

  

 

 

  

 

  

 

  

 

  

 

  

 

  

 

Sales

  

1,084,609

  

968,794

  

12%

  

511,636

  

470,124

  

9%

Cost of sales

  

592,684

  

564,882

  

 

  

258,471

  

268,800

  

 

Gross profit

  

491,925

  

403,912

  

22%

  

253,165

  

201,324

  

26%

% of sales

  

45.4%

  

41.7%

  

 

  

49.5%

  

42.8%

  

 

Selling and marketing expenses

  

339,759

  

286,732

  

18%

  

169,187

  

144,386

  

17%

% of sales

  

31.3%

  

29.6%

  

 

  

33.1%

  

30.7%

  

 

General and administrative expenses

  

61,489

  

53,174

  

16%

  

29,663

  

25,126

  

18%

% of sales

  

5.7%

  

5.5%

  

 

  

5.8%

  

5.3%

  

 

Other income, net and Share in losses (profits) of investees accounted for using the equity method

  

(570)

  

298

  

 

  

(326)

  

784

  

 

Operating income excluding non-core items

  

91,247

  

63,708

  

43%

  

54,641

  

31,028

  

76%

% of sales

  

8.4%

  

6.6%

  

 

  

10.7%

  

6.6%

  

 

Non-core items

  

3,436

  

–

  

 

  

1,957

  

–

  

 

Operating income

  

87,811

  

63,708

  

38%

  

52,684

  

31,028

  

70%

Financing expenses, net

  

22,190

  

19,045

  

17%

  

9,115

  

9,448

  

(4%)

Income before tax on income

  

65,621

  

44,663

  

47%

  

43,569

  

21,580

  

102%

Income taxes expenses

  

16,461

  

10,324

  

59%

  

10,809

  

4,844

  

123%

Net income for the period

  

49,160

  

34,339

  

43%

  

32,760

  

16,736

  

96%

Net income for the period excluding non-core items, net of tax

  

52,029

  

34,339

  

52%

  

34,394

  

16,736

  

106%

 

  

 

  

 

  

 

  

 

  

 

  

 

Attribution of net earnings for the period:

  

 

  

 

  

 

  

 

  

 

  

 

Attributed to Company’s shareholders

  

45,579

  

31,271

  

 

  

30,185

  

15,052

  

 

Attributed to non-controlling interests

  

3,581

  

3,068

  

 

  

2,575

  

1,684

  

 

 

  

49,160

  

34,339

  

 

  

32,760

  

16,736

  

 

 

  

 

  

 

  

 

  

 

  

 

  

 

Net diluted earnings per share attributed to company’s shareholders

  

1.73

  

1.18

  

 

  

1.15

  

0.57

  

 

Net diluted earnings per share, before non-core items, net of tax, attributable to Company’s shareholders

  

1.84

  

1.18

  

56%

  

1.21

  

0.57

  

112%

DELTA GALIL INDUSTRIES LTD.

Concise Consolidated Cash Flow Reports

For the six-month and three-month periods ending June 30, 2026
   
 

Six months ended June 30

 

Three months ended June 30

 

  

2026

 

2025

 

2026

 

2025
 

(Unaudited)

 

(Unaudited)
 

Thousands of Dollars

 

Thousands of Dollars

 

  

 

 

 

 

 

 

 

Cash flows from operating activities:

  

 

 

 

 

 

 

 

Net income for the period

  

49,160

 

34,339

 

32,760

 

16,736

Adjustments required to present cash flows from operating activities

  

111,539

 

46,102

 

56,730

 

26,354

Interest paid in cash

  

(18,643)

 

(15,758)

 

(8,048)

 

(6,797)

Interest received in cash

  

1,999

 

841

 

1,364

 

402

Income taxes paid in cash, net

  

(26,411)

 

(21,451)

 

(9,447)

 

(11,058)

Net cash generated from operating activities

  

117,644

 

44,073

 

73,359

 

25,637

 

  

 

 

 

 

 

 

 

Cash flows from investment activities:

  

 

 

 

 

 

 

 

Acquisition of property, plant including under construction

  

(22,836)

 

(55,177)

 

(10,259)

 

(34,542)

Acquisition of intangible assets

  

(14,305)

 

(10,354)

 

(7,185)

 

(5,034)

Proceeds from sale of property, plant and equipment

  

120

 

4,152

 

97

 

2,428

Others

  

(2,801)

 

(132)

 

(2,442)

 

275

Net cash used in Investing activities

  

(39,822)

 

(61,511)

 

(19,789)

 

(36,873)

 

  

 

 

 

 

 

 

 

Cash flows from financing activities:

  

 

 

 

 

 

 

 

Dividend paid to non-controlling interests in subsidiary

  

(3,604)

 

(2,514)

 

(870)

 

(835)

Payment of long-term payables in connection with acquisition of property, plant and equipment under construction

  

(3,882)

 

(2,412)

 

(1,921)

 

(1,209)

Principal elements of lease payments

  

(32,901)

 

(26,982)

 

(16,526)

 

(12,596)

Dividend paid

  

(18,021)

 

(18,020)

 

(7,999)

 

(7,997)

Receipt of long-term bank loans

  

–

 

967

 

–

 

–

Repayment of long-term bank loans

  

(10,288)

 

(9,664)

 

(2,444)

 

(2,230)

Short-term credit from banking corporations, net

  

(27,609)

 

36,877

 

(29,239)

 

27,414

Others

  

2,721

 

(255)

 

1,720

 

(23)

Net cash generated from (used in) financing activities

  

(93,584)

 

(22,003)

 

(57,279)

 

2,524

Net decrease in cash and cash equivalents

  

(15,762)

 

(39,441)

 

(3,709)

 

(8,712)

 

  

 

 

 

 

 

 

 

Effects of exchange rate changes on cash and cash equivalents

  

3,321

 

7,624

 

3,525

 

7,216
 

 

 

 

 

 

 

 

Balance of cash and cash equivalents at the beginning of the period, net

  

133,973

 

120,509

 

121,716

 

90,188

Balance of cash and cash equivalents at the end of the Period, net

  

121,532

 

88,692

 

121,532

 

88,692

DELTA GALIL INDUSTRIES LTD.

Concise Consolidated Cash Flow Reports

For the six-month and three-month periods ending June 30, 2026
   
 

Six months ended June 30

 

Three months ended June 30

 

  

2026

 

2025

 

2026

 

2025
 

(Unaudited)

 

(Unaudited)
 

Thousands of Dollars

 

Thousands of Dollars

Reconciliations required to present cash flows generated by operating activities:

  

 

 

 

 

 

 

 

Adjustments in respect of:

  

 

 

 

 

 

 

 

Depreciation

  

17,861

 

16,848

 

8,844

 

8,585

Amortization

  

41,471

 

34,725

 

20,935

 

17,913

Interest in respect of bonds and loans

  

10,525

 

8,885

 

4,224

 

3,262

Interest received in cash

  

(1,999)

 

(841)

 

(1,364)

 

(402)

Taxes on income paid in cash, net

  

26,411

 

21,451

 

9,447

 

11,058

Deferred taxes on income, net

  

(633)

 

(6,941)

 

(221)

 

(5,240)

Interest expenses recognized in respect of lease agreements

  

8,118

 

6,873

 

3,824

 

3,535

Retirement benefit obligation, net

  

(103)

 

(487)

 

(77)

 

27

Change in realignment plan provision

  

(1,092)

 

(4,636)

 

(643)

 

(3,797)

Change in fair value of liability due to contingent consideration

  

3,436

 

–

 

1,957

 

–

Loss (Gain) from disposal of property, plant and equipment

  

(78)

 

(1,505)

 

(82)

 

(1,028)

Share-based payments expenses

  

1,154

 

1,163

 

545

 

749

Share in profits of investee accounted for using the equity method

  

90

 

156

 

40

 

9

Others

  

(2,388)

 

2,533

 

(290)

 

2,425

 

  

102,773

 

78,224

 

47,139

 

37,096

Changes to operating assets and liabilities:

  

 

 

 

 

 

 

 

Decrease in trade receivables

  

33,150

 

92,130

 

25,353

 

28,367

Decrease (Increase) in other receivable

  

(966)

 

(1,418)

 

163

 

470

Increase (decrease) in trade payables

  

19,253

 

(40,928)

 

(13,465)

 

(34,324)

Increase (decrease) in other payables

  

(16,201)

 

(15,936)

 

11,747

 

7,887

Increase in inventory

  

(26,470)

 

(65,970)

 

(14,207)

 

(13,142)

 

  

8,766

 

(32,122)

 

9,591

 

(10,742)

 

  

111,539

 

46,102

 

56,730

 

26,354

 

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