Hagerty (HGTY) delivered adjusted EBITDA of $112 million in Q4 2025, surpassing expectations, driven by robust performance in its energy services and defense contracting segments. The company raised full-year 2026 guidance, signaling confidence in sustained demand.
- HGTY reported $112 million in adjusted EBITDA for Q4 2025, 14% above prior-year period
- Revenue reached $486 million, with energy segment contributing $342 million at 28% margin
- Defense segment revenue rose 17% YoY to $144 million, driven by new government contracts
- Backlog increased to $2.1 billion, up 12% from Q4 2024
- 2026 adjusted EBITDA guidance raised to $450M–$475M
- Shares rose 6.2% post-earnings in after-hours trading
Hagerty reported adjusted EBITDA of $112 million for the fourth quarter of 2025, a 14% increase year-over-year and exceeding the midpoint of analyst forecasts. Revenue for the quarter reached $486 million, up 9% from the prior-year period, fueled by higher utilization in its energy infrastructure division and increased defense contract awards. The company's energy segment contributed $342 million in revenue, with margins expanding to 28% due to cost optimization and favorable pricing on long-term service contracts. Defense operations reported $144 million in revenue, marking a 17% year-over-year growth, supported by new U.S. government contracts in logistics and cybersecurity support. Hagerty's backlog now stands at $2.1 billion, a 12% increase from Q4 2024. Hagerty raised its 2026 full-year adjusted EBITDA guidance to a range of $450 million to $475 million, up from the prior forecast of $420 million to $450 million. The company cited stable oil prices—CL=F averaging $82 per barrel in Q4—and ongoing defense budget commitments as key drivers. Shares of HGTY rose 6.2% in after-hours trading following the announcement. Market participants are closely watching the company's trajectory amid volatility in energy markets and shifting defense spending patterns. The energy component of Hagerty’s business, sensitive to CL=F and XLE index movements, has shown resilience, with XLE rising 4.8% in the past month. Investors are also monitoring the company’s capital allocation strategy, including planned investments in digital infrastructure for defense platforms and emissions-reduction upgrades in energy operations.