Key Highlights

  • HLMN reported record third quarter net sales of $457.5 million, up 7.7% from $424.9 million a year earlier.
  • Net income fell to $6.3 million, or $0.03 per diluted share, from $23.2 million, or $0.12, in the prior-year quarter.
  • Adjusted EBITDA rose to $90.2 million from $88.0 million, while adjusted diluted EPS held at $0.22.
  • Free Cash Flow climbed to $51.1 million from $9.1 million a year earlier.
  • The full-year 2026 net sales range was narrowed to $1.660 billion to $1.680 billion, with adjusted EBITDA and free cash flow guidance reiterated.

Record Sales Growth Led by Robotics and Digital Solutions

Hillman Solutions (NASDAQ:HLMN) reported results for the thirteen weeks ended Sep 26, 2026 on Nov 2, 2026. Net sales reached a record $457.5 million, up 7.7% from $424.9 million in the same quarter last year.

Hillman, founded in 1964 and based in Cincinnati, supplies hardware and related products to retail, professional distribution and industrial customers. Its portfolio spans more than 150,000 products, including fasteners, builder's hardware, work gloves, keys and engraving services.

The Robotics and Digital Solutions segment grew 19.2% to $69.8 million, helped by keys and key fobs Revenue of $60.2 million, up from $48.7 million. Hardware and Protective Solutions sales rose 5.4% to $347.0 million, and Canada increased 9.2% to $40.7 million.

Refinancing Charges and Margin Pressure Cut Net Income to $6.3 Million

Net income was $6.3 million, or $0.03 per diluted share, compared with $23.2 million, or $0.12, a year earlier. Income from operations fell to $37.9 million from $45.9 million, and the quarter included $13.5 million of refinancing costs.

Adjusted gross margin slipped to 50.8% from 51.7%, and adjusted EBITDA margin eased to 19.7% from 20.7%. Adjusted EBITDA still rose 2.4% to $90.2 million, and adjusted diluted EPS was unchanged at $0.22.

Segment margins diverged. Hardware and Protective Solutions adjusted EBITDA fell 4.1% to $63.2 million, with margin down 180 basis points to 18.2%. Canada adjusted EBITDA jumped 61.6% to $6.1 million, lifting its margin to 15.1% from 10.2%.

Kanebridge Acquisition Lifts Net Debt to 3.4 Times Adjusted EBITDA

Hillman completed its purchase of Kanebridge, a master distributor of industrial fasteners, and refinanced its Credit facilities in the quarter. The new structure includes a $735 million senior secured term Loan B, a $375 million asset-based revolver and a $200 million add-on term loan for the deal, with maturities extended to 2033 and 2031.

Gross debt was $967.7 million at quarter end, compared with $693.1 million on Dec 27, 2025. Net debt was $932.6 million, equal to 3.4 times trailing twelve month adjusted EBITDA, up from 2.4 times. The company said Leverage would be about 3.1 times had it owned Kanebridge for the full period.

Operating cash flow rose to $69.9 million from $26.2 million, and free cash flow reached $51.1 million. Hillman repurchased about 0.6 million shares at an average $7.75, totaling $5.0 million. Liquidity stood at $343.1 million, including $35.1 million of cash.

Narrowed Sales Range Sets Up the Fourth Quarter Finish

Hillman now expects 2026 net sales of $1.660 billion to $1.680 billion, narrowed from $1.670 billion to $1.720 billion on Aug 3, 2026, citing the macro environment. It reiterated adjusted EBITDA of about $285 million and free cash flow of $105 million to $115 million. Through nine months, net sales were $1.27 billion, adjusted EBITDA was $217.4 million and free cash flow was $87.0 million. An Earnings Call and webcast was scheduled for Nov 3, 2026, with the Quarterly Report on Form 10-Q expected to be filed beforehand.