Key Highlights

  • Net sales increased 7.7% to USD 457.5 million, while adjusted EBITDA edged up to USD 90.2 million.
  • Net income was USD 6.3 million, or USD 0.03 per share, against USD 23.2 million, or USD 0.12.
  • Free Cash Flow rose to USD 51.1 million from USD 9.1 million, and Operating Cash Flow reached USD 69.9 million.
  • Full-year sales guidance narrowed to USD 1.660 billion to USD 1.680 billion, with adjusted EBITDA near USD 285 million.

Quarterly Performance

Hillman Solutions Corp. (NASDAQ:HLMN), a provider of hardware and related products, reported net sales for the thirteen weeks ended September 26, 2026 of USD 457.5 million, up 7.7% from USD 424.9 million in the prior year quarter. Net Income totaled USD 6.3 million, or USD 0.03 per diluted share, compared with USD 23.2 million, or USD 0.12. Adjusted diluted earnings per share, a non-GAAP measure, were USD 0.22, unchanged from a year earlier, while adjusted EBITDA increased to USD 90.2 million from USD 88.0 million.

Cash generation was the clearer improvement. Net cash provided by Operating Activities rose to USD 69.9 million from USD 26.2 million, and free cash flow increased to USD 51.1 million from USD 9.1 million. The company repurchased about 0.6 million shares at an average price of USD 7.75, totaling USD 5.0 million.

Strategy and Acquisition

Chief executive Jon Michael Adinolfi said the quarter reflected continued execution of the company's Blueprint for Strategic Growth, with net sales growth and free cash flow giving it flexibility to invest. He highlighted the Robotics and Digital Solutions segment, which grew 19.2% in the quarter, and the Acquisition of Kanebridge, a master distributor of industrial fasteners. He said the company is winning in the Pro channel through channel relationships, sourcing agility and its field sales team, and that Kanebridge accelerates that momentum by establishing a position as a long-tail master distributor in the U.S. industrial market.

Balance Sheet After the Refinancing

The company refinanced its existing Credit facilities with a new USD 735 million senior secured term Loan B and a USD 375 million asset-based revolving credit facility, and closed a USD 200 million add-on term loan B to fund the Kanebridge acquisition. Gross Debt was USD 967.7 million, compared with USD 693.1 million on December 27, 2025, and net debt was USD 932.6 million versus USD 665.8 million. Net debt to trailing twelve month adjusted EBITDA was 3.4 times at quarter end, compared with 2.4 times at year-end 2025.

Liquidity available totaled USD 343.1 million, made up of USD 308.0 million of availability under the revolving credit Facility and USD 35.1 million of cash and equivalents. By our calculation, gross debt rose about USD 275 million since year-end, which lines up with the add-on term loan and the larger refinanced structure.

Leverage and Guidance Indicators

Management updated its full-year 2026 guidance, last provided on August 3. Net sales guidance narrowed to USD 1.660 billion to USD 1.680 billion from USD 1.670 billion to USD 1.720 billion, which removes the upper end of the earlier range; the company cited the macro environment. Adjusted EBITDA guidance of about USD 285 million and free cash flow guidance of USD 105 million to USD 115 million were reiterated.

Items to track include integration of Kanebridge, progress in reducing the 3.4 times Leverage ratio, the pace of the Robotics and Digital Solutions segment and the gap between rising sales and lower GAAP net income.