Hillman Reports Second Quarter 2025 Results
Raises mid-point of 2025 Net Sales and Adj. EBITDA guidance
Board approves $100 million Share Repurchase Program
CINCINNATI, Aug. 05, 2025 (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 and twenty-six weeks ended June 28, 2025.
Second Quarter 2025 Highlights (Thirteen weeks ended June 28, 2025)
Net sales increased 6.2% to $402.8 million compared to $379.4 million in the prior year quarter
Net income totaled $15.8 million, or $0.08 per diluted share, compared to $12.5 million, or $0.06 per diluted share, in the prior year quarter
Adjusted diluted EPS1 totaled $0.17 per diluted share compared to $0.16 per diluted share in the prior year quarter
Adjusted EBITDA1 increased to $75.2 million compared to $68.4 million in the prior year quarter
Net cash provided by operating activities was $48.7 million compared to $64.8 million in the prior year quarter
Free Cash Flow1 totaled $31.2 million compared to $42.5 million in the prior year quarter
Subsequent to quarter-end, Hillman's Board of Directors authorized a new $100 million share repurchase program
Balance Sheet and Liquidity at June 28, 2025
Gross debt was $708.9 million compared to $718.6 million on December 28, 2024
Net debt1 was $674.7 million compared to $674.0 million on December 28, 2024
Liquidity available totaled $246.9 million; consisting of $212.7 million of available borrowing under the revolving credit facility and $34.2 million of cash and equivalents
Net debt1 to trailing twelve month Adjusted EBITDA improved to 2.7x at quarter end compared to 2.8x on December 28, 2024
Management Commentary
"Our team has done a fantastic job successfully managing the tariff environment while continuing to provide great customer service at the shelf and delivering orders on-time and in-full," commented Jon Michael Adinolfi, President and CEO of Hillman. "During the quarter, we delivered robust top and bottom-line results which produced strong free cash flow and reduced our net debt outstanding. Looking forward, we are confident that the resilience of our business together with our long-term growth opportunities will drive growth for the remainder of 2025 and for years to come."
Full Year 2025 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 April 29, 2025 with Hillman's first quarter 2025 results.
Previous FY 2025 Guidance
Updated FY 2025 Guidance
Net Sales
$1.495 to $1.575 billion
$1.535 to $1.575 billion
Adjusted EBITDA1
$255 to $275 million
$265 to $275 million
Year-end leverage
2.5x leverage at year end
2.4x leverage at year end
Rocky Kraft, Hillman's chief financial officer added: "Strong execution during the first half of the year, some clarity around tariffs, and a better outlook for the second half of the year have resulted in us raising the low-end of our guidance for both Net Sales and Adjusted EBITDA, therefore raising the midpoint of both. We now believe we will end the year with a leverage ratio of around 2.4 times, even with a modest share repurchase."
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.
Share Repurchase Program
Hillman's Board of Directors authorized a share repurchase program ("SRP") for up to $100 million of the currently outstanding shares of the Company's common stock. The SRP permits shares of common stock to be repurchased from time to time at management's discretion, through a variety of methods, including a 10b5-1 trading plan, open market purchases, privately negotiated transactions or transactions otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended.
Second Quarter 2025 Results Presentation
Hillman plans to host a conference call and webcast presentation today, August 5, 2025, 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, August 5, 2025
Time: 8:30 a.m. Eastern Time
Listen-Only Webcast: https://edge.media-server.com/mmc/p/jok22dbq
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.
Hillman Solutions Corp. ("Hillman") is a leading provider of hardware-related products and solutions to home improvement, hardware, and farm and fleet retailers across North America. Renowned for its commitment to customer service, Hillman has differentiated itself with its competitive moat built on direct-to-store shipping, a dedicated in-store sales and service team of over 1,200 professionals, and over 60 years of product and industry experience. Hillman's extensive portfolio includes hardware solutions (fasteners, screws, nuts and bolts), protective solutions (work gloves, jobsite storage and protective gear), and robotic and digital solutions (key duplication and tag engraving). Leveraging its world-class distribution network, Hillman 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 20, 2025. 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 KoehlerVice President of Investor Relations &
HILLMAN SOLUTIONS CORP.Condensed Consolidated Statement of Net Loss, GAAP Basis(dollars in thousands) Unaudited
Thirteen Weeks EndedJune 28, 2025
Thirteen Weeks EndedJune 29, 2024
Twenty-six Weeks Ended June 28, 2025
Twenty-six Weeks EndedJune 29, 2024
Net sales
$
402,803
$
379,432
$
762,146
$
729,737
Cost of sales (exclusive of depreciation and amortization shown separately below)
208,338
194,672
399,078
378,106
Selling, warehouse, general and administrative expenses
123,707
121,154
242,759
239,719
Depreciation
19,848
16,297
39,243
32,635
Amortization
15,257
15,249
30,672
30,503
Other (income) expense
(664
)
474
(938
)
884
Income from operations
36,317
31,586
51,332
47,890
Interest expense, net
13,892
13,937
28,352
29,208
Refinancing costs
—
—
906
3,008
Income before income taxes
22,425
17,649
22,074
15,674
Income tax expense
6,593
5,114
6,559
4,631
Net income
$
15,832
$
12,535
$
15,515
$
11,043
Basic income per share
$
0.08
$
0.06
$
0.08
$
0.06
Weighted average basic shares outstanding
197,593
196,075
197,439
195,721
Diluted income per share
$
0.08
$
0.06
$
0.08
$
0.06
Weighted average diluted shares outstanding
198,676
198,420
199,257
198,037
HILLMAN SOLUTIONS CORP.Condensed Consolidated Balance Sheets(dollars in thousands)Unaudited
June 28, 2025
December 28, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
34,188
$
44,510
Accounts receivable, net of allowances of $1,644 ($2,827 - 2024)
141,178
109,788
Inventories, net
427,633
403,673
Other current assets
20,545
15,213
Total current assets
623,544
573,184
Property and equipment, net of accumulated depreciation of $406,602 ($376,150 - 2024)
234,852
224,174
Goodwill
830,535
828,553
Other intangibles, net of accumulated amortization of $562,043 ($530,398 - 2024)
576,459
605,859
Operating lease right of use assets
74,088
81,708
Other assets
17,152
17,025
Total assets
$
2,356,630
$
2,330,503
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
169,483
$
139,057
Current portion of debt and financing lease liabilities
13,912
12,975
Current portion of operating lease liabilities
17,426
16,850
Accrued expenses:
Salaries and wages
