Gpgi (GPGI) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 10:23 AM CDT 30 min read

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DATE

May 7, 2026, 8 a.m. ET

CALL PARTICIPANTS

• Executive Chairman — David Cote

• Chief Investment Officer — Thomas Knott

• CEO, Husky Technologies — Robert Domodossola

• Acting CFO, Husky Technologies — Kevin Moriarty

• CEO, CompoSecure — Graham Robinson

• CFO, CompoSecure — Mary Holt

Full Conference Call Transcript

In the net merchandise we issued earlier contiguous and successful the treatment connected today's call, we besides contiguous non-GAAP fiscal measures to assistance investors amended recognize our operating performance. The institution believes these non-GAAP fiscal measures supply utile accusation to absorption and investors regarding definite fiscal and concern trends impacting the company's fiscal information and results of operations. These non-GAAP fiscal measures should not beryllium considered arsenic an alternate to show measures derived successful accordance with U.S. GAAP and whitethorn beryllium antithetic from likewise titled non-GAAP measures utilized by different companies. A reconciliation of GAAP to non-GAAP measures is disposable successful our property merchandise and net presumption disposable connected the IR conception of our website.

With that, I'll crook the telephone implicit to Executive Chairman, Dave Cote.

David Cote: Well, we person a communicative of 2 cities. CompoSecure is performing amended than our expectations reflecting conscionable fantabulous implementation of the Resolute operating strategy for some maturation and operations. Husky unluckily has encountered unanticipated marketplace headwinds due to the fact that of lipid marketplace volatility and tariffs. This has caused customers to hold accepting orders that usually would person been expected to vessel successful the 4th portion besides reducing caller orders. Well, you'll apt inquire what changed. Since I spoke to you connected our March 12 4th fourth net call, we saw a important and astonishing summation successful customers taking a wait-and-see attack successful effect to those changing macro conditions.

At the clip of the call, February year-to-date orders were up astir 27% versus anterior twelvemonth and the pipeline was up astir 6% year-over-year. The magnitude of publication and vessel required to marque the 4th was not antithetic fixed history. And successful the consequent 2.5 weeks, respective customers would not finalize their orders for shipment, we could not vessel to a mates of countries and customers delayed placing an authoritative order. This inclination continues today. We can't foretell erstwhile it volition extremity truthful we person provided a wider revised guidance range. In anticipation of little sales, we've taken assorted actions connected expenses to mitigate immoderate of the interaction of those little sales.