CompoSecure, Inc.

GPGI reported second-quarter pro forma adjusted net sales of $473.2 million, down approximately 4% year over year, pro forma adjusted EBITDA of $113.9 million, down approximately 13%, and pro forma adjusted EBITDA margin of 24.1%, down approximately 230 basis points. Pro forma adjusted free cash flow was about $63 million, which management said was significantly higher than the prior year. CompoSecure delivered record adjusted net sales of $133.6 million, up approximately 12%, record adjusted EBITDA of $55.2 million, up approximately 14%, and adjusted EBITDA margin of 41.3%, up 70 basis points. Husky reported adjusted net sales of $339.6 million, down approximately 9%, pro forma adjusted EBITDA of $64.9 million, down approximately 23%, and pro forma adjusted EBITDA margin of 19.1%, down approximately 330 basis points. For full year 2026, GPGI reaffirmed pro forma net sales of $1.95 billion to $2.1 billion, pro forma adjusted EBITDA of $550 million to $610 million, and pro forma adjusted free cash flow of $275 million to $325 million, while adjusting pro forma adjusted EBITDA margin guidance to 27% to 29% to reflect tariff pass-through revenues and mix at Husky.

David Cote emphasized that GPGI is executing with discipline and that the quarter was consistent with expectations and prior guidance. He highlighted CompoSecure’s ROS-driven inflection in growth and profitability, while describing Husky’s weakness as tied to transient market headwinds such as resin volatility, shipping disruptions and tariff uncertainty rather than a structural problem. His tone was confident and forward-looking, stressing cultural transformation, organic investment, and the belief that 2026 is a seed-planting year for an acceleration in 2027.

Thomas Knott focused on the financial framework: second-quarter pro forma adjusted net sales of $473.2 million, EBITDA of $113.9 million, EBITDA margin of 24.1%, and about $63 million of pro forma adjusted free cash flow. He reiterated full-year guidance for revenue, EBITDA and free cash flow, and explained that the margin guide was adjusted to 27% to 29% because of tariff pass-through revenues and mix effects at Husky. He also said GPGI remains focused on debt paydown and is targeting 3x leverage by the end of 2026, with a long-term leverage target of 2x to 2.5x excluding one-time step-ups for acquisitions.

Analysts focused on whether Husky’s demand was truly deferred rather than canceled, how much pipeline had converted, and what leading indicators management was watching. Management said pipeline growth was up double digits, orders were improving, and systems were performing better than expected, but they would not quantify the pipeline or declare victory. Questions also covered ROS progress at Husky and whether macro conditions would need to improve to hit guidance; management said the guide does not assume material improvement from here and that current assumptions are consistent with what they saw last quarter. On capital allocation, management said it is actively evaluating bolt-ons and new platforms, but will remain disciplined and only act when a target fits the criteria and is accretive at a fair price.