Closed two acquisitions subsequent to quarter end - expanding Industrial MRO and Pro Distribution presence
Increases FY 2026 Net Sales guidance; reiterates Adj. EBITDA and Free Cash Flow guidance
CINCINNATI, April 27, 2026 (GLOBE NEWSWIRE) -- Hillman Solutions Corp. (Nasdaq: HLMN) (the "Company" or "Hillman"), a leading provider of hardware products and merchandising solutions, reported financial results for the thirteen weeks ended March 28, 2026.
First Quarter 2026 Highlights (Thirteen weeks ended March 28, 2026)
-- Net sales increased 3.0% to $370.1 million compared to $359.3 million in
the prior year quarter
-- Net loss totaled $(4.7) million, or $(0.02) per diluted share, compared
to $(0.3) million, or $(0.00) per diluted share, in the prior year
quarter
-- Adjusted diluted EPS1 totaled $0.07 per diluted share compared to $0.10
per diluted share in the prior year quarter
-- Adjusted EBITDA1 totaled $50.1 million compared to $54.5 million in the
prior year quarter
-- Net cash used by operating activities was $(19.5) million compared to
$(0.7) million in the prior year quarter
-- Free Cash Flow1 totaled $(34.3) million compared to $(21.3) million in
the prior year quarter
-- Hillman repurchased approximately 1.2 million shares of its common stock
at an average price of $8.29 per share, which totaled $10.1 million
-- Subsequent to the quarter end, closed two acquisitions:
-- Campbell Chain & Fittings, a premier manufacturer and supplier of
industrial chain and related products
-- Delaney Hardware, a U.S.-based supplier of door hardware and
builder's hardware used in residential, multifamily, and
commercial construction
Balance Sheet and Liquidity at March 28, 2026
-- Gross debt was $737.8 million compared to $693.1 million on December 27,
2025
-- Net debt1 was $710.1 million compared to $665.8 million on December 27,
2025
-- Liquidity available totaled $282.4 million; consisting of $254.7 million
of available borrowing under the revolving credit facility and $27.7
million of cash and equivalents
-- Net debt1 to trailing twelve month Adjusted EBITDA was 2.6x at quarter
end compared to 2.4x on December 27, 2025
Management Commentary
"Consistent demand for our hardware products, driven by repair, maintenance, and remodeling projects, coupled with mid-single digit growth in our robotics and digital solutions business ('RDS') drove a solid quarter for Hillman, despite the impact from weather and the macro, " commented Jon Michael Adinolfi, President and CEO of Hillman.
"We are raising our full year net sales guidance, driven by the two acquisitions we made subsequent to the end of the quarter. These tuck-in acquisitions support two important strategic initiatives for Hillman: category expansion and pro distribution."
"After the quarter end, we acquired Campbell Chain and Fittings, a premier manufacturer and supplier of industrial chain and chain-related products. This acquisition adds U.S.-based manufacturing and complements our existing retail chain business. Campbell also expands our position within the industrial MRO sector, a key focus area for our future growth.
"Additionally, one week later, we acquired Delaney Hardware, a U.S.-based supplier of door hardware and builder's hardware used in residential, multifamily, and commercial construction. This acquisition expands our product breadth in our residential pro distribution business.
"We will continue to be laser focused on strengthening our leadership position, executing our strategy to expand across categories and channels, and unlocking meaningful growth opportunities. As we look to the rest of the year, we remain confident in our ability to drive growth and manage this dynamic environment while taking great care of our customers and delivering value for our shareholders."
Full Year 2026 Guidance - Updated
Based on year-to-date performance and its expectations for the remainder of the year, management is updating its guidance most recently provided on February 17, 2026.
Previous FY 2026 Guidance Updated FY 2026 Guidance
------------------- ------------------------- ------------------------
Net Sales $1.600 to $1.700 billion $1.630 to $1.730 billion
Adjusted EBITDA(1) $275 to $285 million $275 to $285 million
Free Cash Flow(1) $100 to $120 million $100 to $120 million
------------------- ------------------------- ------------------------
1) Denotes Non-GAAP metric. For additional information, including our definitions, use of, and reconciliations of these metrics to the most directly comparable financial measures under GAAP, please see the reconciliations toward the end of the press release.
First Quarter 2026 Results Presentation
Hillman plans to host a conference call and webcast presentation on April 28, 2026, at 8:30 a.m. Eastern Time to discuss its results. President and Chief Executive Officer Jon Michael Adinolfi and Chief Financial Officer Rocky Kraft will host the results presentation.
Date: Tuesday, April 28, 2026
Time: 8:30 a.m. Eastern Time
Listen-Only Webcast: https://edge.media-server.com/mmc/p/3we7oiaa
A webcast replay will be available approximately one hour after the conclusion of the call using the link above.
Hillman's quarterly presentation and Form 10-Q are expected to be filed with the SEC and posted to its Investor Relations website, https://ir.hillmangroup.com, prior to the webcast presentation.
About Hillman Solutions Corp.
Founded in 1964 and headquartered in Cincinnati, Hillman is a leading provider of hardware and related products serving retail, pro distribution, and industrial MRO customers. Over the last 60-plus years, Hillman has built a legacy of service and growth by forming strategic partnerships with North America's leading home improvement, hardware, and farm and fleet retailers. Hillman differentiates itself from the competition with its dedicated field sales team of 1,200+ associates, direct-to-store distribution capabilities, and world class global sourcing and supply chain expertise. The company offers an extensive product portfolio of more than 111,000 SKUs, including fasteners (power screws, nuts, and bolts), hardware (builder's hardware, door locks, rope & chain, accessories), project gear & supplies (gloves, work gear, paint & cleaning sundries), and key and engraving services (key duplication, auto keys, and engraving). Hillman is committed to delivering exceptional customer service, innovative products, and dependable solutions to its customers and regularly earns vendor of the year recognition from top customers. For more information on Hillman, visit www.hillman.com.
Forward-Looking Statements
All statements made in this press release that are considered to be forward-looking are made in good faith by the Company and are intended to qualify for the safe harbor from liability established by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. You should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget, " "forecast," "anticipate," "intend," "plan," "target", "goal", "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company's expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) unfavorable economic conditions that may affect our and our customers', suppliers' and other business partners' operations, financial condition and cash flows including spending on home renovation or construction projects, inflation, recessions, instability in the financial markets or credit markets; (2) increased supply chain costs, including tariffs, raw materials, sourcing, transportation and energy; (3) the highly competitive nature of the markets that we serve; (4) the ability to continue to innovate with new products and services; (5) seasonality; (6) large customer concentration; (7) the ability to recruit and retain qualified employees; (8) the outcome of any legal proceedings that may be instituted against the Company; (9) adverse changes in currency exchange rates; or (10) regulatory changes and potential legislation that could adversely impact financial results. The foregoing list of factors is not exclusive, and readers should also refer to those risks that are included in the Company's filings with the Securities and Exchange Commission ("SEC"), including the Annual Report on Form 10-K filed on February 17, 2026. Given these uncertainties, current or prospective investors are cautioned not to place undue reliance on any such forward-looking statements.
Except as required by applicable law, the Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this communication to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
Contact:
Michael Koehler
Vice President -- Corporate Development, Investor Relations, Treasury
513-826-5495
IR@hillmangroup.com
HILLMAN SOLUTIONS CORP.
Condensed Consolidated Statement of Net Loss, GAAP Basis
(dollars in thousands) Unaudited
Thirteen Weeks Ended Thirteen Weeks Ended
March 28, 2026 March 29, 2025
Net sales $ 370,073 $ 359,343
Cost of sales (exclusive
of depreciation and
amortization shown
separately below) 201,496 190,740
Selling, warehouse,
general and
administrative
expenses 124,571 119,052
Depreciation 21,999 19,395
Amortization 15,276 15,415
Other income, net (483) (274)
--- --------------- --- ---------------
Income from
operations 7,214 15,015
Interest expense, net 13,005 14,460
Refinancing costs -- 906
--- --------------- --- ---------------
loss before income
taxes (5,791) (351)
Income tax benefit (1,059) (34)
--- --------------- --- ---------------
Net loss $ (4,732) $ (317)
=== =============== === ===============
Basic and diluted loss
per share $ (0.02) $ (0.00)
Weighted average basic
and diluted shares
outstanding 196,626 197,284
HILLMAN SOLUTIONS CORP.
Condensed Consolidated Balance Sheets
(dollars in thousands)
Unaudited
March 28, 2026 December 27, 2025
ASSETS
Current assets:
Cash and cash equivalents $ 27,731 $ 27,276
Accounts receivable, net of
allowances of $1,876 ($1,944 -
2025) 138,767 114,926
Inventories, net 483,323 485,938
Other current assets 20,066 18,342
----------- --------------
Total current assets 669,887 646,482
Property and equipment, net of
accumulated depreciation of
$446,048 ($428,726 - 2025) 224,575 231,482
Goodwill 830,372 830,747
Other intangibles, net of
accumulated amortization of
$607,790 ($592,748 - 2025) 530,707 546,171
Operating lease right of use
assets 77,222 75,152
Other assets 28,216 26,160
Total assets $ 2,360,979 $ 2,356,194
=========== ==============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 139,832 $ 141,662
Current portion of debt and
financing lease liabilities 14,898 14,830
Current portion of operating
lease liabilities 19,432 17,947
Accrued expenses:
Salaries and wages 10,419 35,790
Pricing allowances 5,514 8,098
Income and other taxes 8,429 9,466
Other accrued liabilities 28,559 29,766
----------- --------------
Total current liabilities 227,083 257,559
Long-term debt 714,055 668,337
Deferred tax liabilities 132,061 131,870
Operating lease liabilities 63,934 63,459
Other non-current liabilities 7,868 6,462
----------- --------------
Total liabilities $ 1,145,001 $ 1,127,687
=========== ==============
Commitments and contingencies
(Note 6)
Stockholders' equity:
Common stock: $0.0001 par
value, 500,000,000 shares
authorized, 198,945,695 and
196,355,206 issued and
outstanding in 2026,
respectively, and 197,857,100
and 196,487,532 shares issued
and outstanding in 2025,
respectively 20 20
Treasury stock, at cost,
2,590,489 shares in 2026 and
1,369,568 shares in 2025 (22,539) (12,423)
Additional paid-in capital 1,460,059 1,457,422
Accumulated deficit (183,378) (178,646)
Accumulated other comprehensive
loss (38,184) (37,866)
----------- --------------
Total stockholders' equity 1,215,978 1,228,507
----------- --------------
Total liabilities and
stockholders' equity $ 2,360,979 $ 2,356,194
=========== ==============
HILLMAN SOLUTIONS CORP.
Condensed Consolidated Statement of Cash Flows
(dollars in thousands)
Unaudited
Thirteen Weeks Ended Thirteen Weeks Ended
March 28, 2026 March 29, 2025
Cash flows from
operating activities:
Net loss $ (4,732) $ (317)
Adjustments to
reconcile net loss to
net cash used for
operating activities:
Depreciation and
amortization 37,275 34,810
Deferred income
taxes 218 (974)
Deferred financing
and original issue
discount
amortization 1,253 1,257
Stock-based
compensation
expense 4,007 3,278
Loss on debt
restructuring -- 906
Cash paid to third
parties in
connection with
debt restructuring -- (906)
Loss (gain) on
disposal of
property and
equipment 14 (139)
Change in fair value
of contingent
consideration (509) (326)
Changes in operating
items:
Accounts
receivable, net (24,128) (24,617)
Inventories, net 2,909 7,319
Other assets (3,950) (2,152)
Accounts payable (1,548) 11,340
Accrued salaries
and wages (25,415) (20,769)
Other accrued
expenses (4,927) (9,365)
Net cash used for
operating
activities (19,533) (655)
--- --------------- --- ---------------
Net cash from investing
activities
Capital expenditures (14,815) (20,658)
Other investing
activities (55) (67)
--- --------------- --- ---------------
Net cash used for
investing
activities (14,870) (20,725)
--- --------------- --- ---------------
Cash flows from
financing activities:
Repayments of senior
term loans (2,128) (2,128)
Borrowings on
revolving credit
loans 72,162 62,000
Repayments of
revolving credit
loans (25,000) (44,000)
Principal payments
under finance lease
obligations (1,484) (1,270)
Proceeds from exercise
of stock options 1,483 306
Repurchases of common
stock (10,116) --
Payments of contingent
consideration (77) (75)
Other financing
activities (114) (440)
Net cash provided by
financing
activities 34,726 14,393
--- --------------- --- ---------------
Effect of exchange rate
changes on cash 132 (1,214)
--- --------------- --- ---------------
Net increase (decrease)
in cash and cash
equivalents 455 (8,201)
Cash and cash
equivalents at
beginning of period 27,276 44,510
--- --------------- --- ---------------
Cash and cash
equivalents at end of
period $ 27,731 $ 36,309
=== =============== === ===============
Reconciliations of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
The Company uses non-GAAP financial measures to analyze underlying business performance and trends. The Company believes that providing these non-GAAP financial measures enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance. These non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. The Company's definitions of its non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, reconciliations to GAAP financial measures are not provided for forward-looking non-GAAP measures. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
Non-GAAP financial measures such as consolidated adjusted EBITDA and Adjusted Diluted Earnings per Share (EPS) exclude from the relevant GAAP metrics items that neither relate to the ordinary course of the Company's business, nor reflect the Company's underlying business performance.
Reconciliation of Adjusted EBITDA (Unaudited)
(dollars in thousands)
Adjusted EBITDA is a non-GAAP financial measure and is the primary basis used to measure the operational strength and performance of our businesses as well as to assist in the evaluation of underlying trends in our businesses. This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of our businesses and from intangible assets recognized in business combinations. It is also unaffected by our capital and tax structures, as our management excludes these results when evaluating our operating performance. Our management use this financial measure to evaluate our consolidated operating performance and the operating performance of our operating segments as well as to allocate resources and capital to our operating segments. Additionally, we believe that Adjusted EBITDA is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure of Adjusted EBITDA may not be directly comparable to similar measures used by other companies.
Thirteen Weeks Ended Thirteen Weeks Ended
March 28, 2026 March 29, 2025
Net loss $ (4,732) $ (317)
Income tax benefit (1,059) (34)
Interest expense, net 13,005 14,460
Depreciation 21,999 19,395
Amortization 15,276 15,415
EBITDA $ 44,489 $ 48,919
--- --------------- --- ---------------
Stock compensation
expense 4,007 3,278
Restructuring and other
(1) 2,011 1,691
Transaction and
integration expense
(2) 92 58
Change in fair value of
contingent
consideration (509) (326)
Refinancing costs (3) -- 906
Total adjusting items 5,601 5,607
--- --------------- --- ---------------
Adjusted EBITDA $ 50,090 $ 54,526
=== =============== === ===============
(1) Includes consulting and other costs associated with
severance related to our distribution center relocations
and corporate restructuring activities.
(2) Transaction and integration expense includes professional
fees and other costs related to acquisition activity,
including the to the Campbell Chain and Fittings and
Delaney Hardware acquisitions in 2026.
(3) In the first quarter of 2025, we entered into a Repricing
Amendment on our existing Senior Term Loan due July
14, 2028.
Reconciliation of Adjusted Diluted Earnings Per Share
(in thousands, except per share data)
Unaudited
We define Adjusted Diluted EPS as reported diluted EPS excluding the effect of one-time, non-recurring activity and volatility associated with our income tax expense. The Company believes that Adjusted Diluted EPS provides further insight and comparability in operating performance as it eliminates the effects of certain items that are not comparable from one period to the next. The following is a reconciliation of reported diluted EPS from continuing operations to Adjusted Diluted EPS from continuing operations:
Thirteen Weeks Ended Thirteen Weeks Ended
March 28, 2026 March 29, 2025
Reconciliation to
Adjusted Net Income
Net Loss $ (4,732) $ (317)
Remove adjusting
items (1) 5,601 5,607
Remove amortization
expense 15,276 15,415
Remove tax benefit on
adjusting items and
amortization expense
(2) (1,506) (1,720)
--- --------------- --- ---------------
Adjusted Net Income $ 14,639 $ 18,985
=== =============== === ===============
Reconciliation to
Adjusted Diluted
Earnings per Share
Diluted Earnings per
Share $ (0.02) $ 0.00
Remove adjusting
items (1) 0.03 0.03
Remove amortization
expense 0.08 0.08
Remove tax benefit on
adjusting items and
amortization expense
(2) (0.01) (0.01)
--- --------------- --- ---------------
Adjusted Diluted
Earnings per Share $ 0.07 $ 0.10
=== =============== === ===============
Diluted Shares, as
reported 196,626 197,284
Non-GAAP dilution
adjustments:
Dilutive effect of
stock options and
awards 2,467 2,553
--- --------------- --- ---------------
Adjusted Diluted Shares 199,093 199,837
=== =============== === ===============
Note: Adjusted EPS may not add due to rounding.
(1) Please refer to the "Reconciliation of Adjusted EBITDA"
table above for additional information on adjusting
items. See the "Per share impact of Adjusting Items"
table below for the per share impact of each adjustment.
(2) We have calculated the income tax effect of the non-GAAP
adjustments shown above at the applicable statutory
rate of 25% for the U.S. and 26.2% for Canada except
for the following items:
a. The tax impact of stock compensation expense was calculated
using the statutory rates above, excluding certain
awards that are non-deductible.
b. Amortization expense for financial accounting purposes
was offset by the tax benefit of deductible amortization
expense using the statutory rate of 25%.
Per Share Impact of Adjusting Items
Thirteen Weeks Ended Thirteen Weeks Ended
March 28, 2026 March 29, 2025
Stock compensation
expense $ 0.02 $ 0.02
Restructuring and other
costs 0.01 0.01
Transaction and
integration expense 0.00 0.00
Change in fair value of
contingent
consideration 0.00 0.00
Refinancing costs 0.00 0.00
Total adjusting items $ 0.03 $ 0.03
==== ================ ==== ================
Note: Adjusting items may not add due to rounding.
Reconciliation of Net Debt
We define Net Debt as reported gross debt less cash on hand. Net debt is not defined under U.S. GAAP and may not be computed the same as similarly titled measures used by other companies. The Company believes that Net Debt provides further insight and comparability into liquidity and capital structure. The following is the calculation of Net Debt:
March 28, 2026 December 27, 2025
Revolving loans $ 83,162 $ 36,000
Senior term loan, due 2028 634,832 636,960
Finance leases and other
obligations 19,851 20,090
------------ --- --------------
Gross debt $ 737,845 $ 693,050
------------ --- --------------
Less cash 27,731 27,276
------------ --- --------------
Net debt $ 710,114 $ 665,774
============ === ==============
Reconciliation of Free Cash Flow
We calculate free cash flow as cash flows from operating activities less capital expenditures. Free cash flow is not defined under U.S. GAAP and may not be computed the same as similarly titled measures used by other companies. We believe free cash flow is an important indicator of how much cash is generated by our business operations and is a measure of incremental cash available to invest in our business and meet our debt obligations.
Thirteen Weeks Ended Thirteen Weeks Ended
March 28, 2026 March 29, 2025
Net cash used by
operating activities $ (19,533) $ (655)
Capital expenditures (14,815) (20,658)
--- --------------- --- ---------------
Free cash flow $ (34,348) $ (21,313)
=== =============== === ===============
Source: Hillman Solutions Corp.
(END) Dow Jones Newswires
April 27, 2026 16:30 ET (20:30 GMT)