HLMN · Hillman Solutions Corp.

Hillman Solutions Corp. announced first quarter 2026 results showing net sales growth of 3.0% to $370.1 million, supported by strong performances in Robotics and Digital Solutions (RDS) at +6.0% and Canada at +15.1%, offsetting softer Hardware and Protective Solutions (HPS) growth of 1.2%. Despite top-line expansion, profitability softened with Adjusted EBITDA declining 8.1% to $50.1 million (13.5% margin vs. 15.2% prior year) and a GAAP net loss of $4.7 million, reflecting higher operating expenses, weather impacts, and macroeconomic pressures as noted by CEO Jon Michael Adinolfi. Adjusted gross margins contracted to 45.6% from 46.9%, influenced by supply chain dynamics. Balance sheet remains solid with net debt at $710.1 million (2.6x TTM Adjusted EBITDA, up slightly from 2.4x year-end) and $282.4 million liquidity. Post-quarter, Hillman closed tuck-in acquisitions of Campbell Chain & Fittings (expanding Industrial MRO with U.S. manufacturing and $20 million expected 2026 sales add) and Delaney Hardware (broadening pro distribution door hardware, $10 million expected sales add), driving an upward revision to full-year net sales guidance from $1.600-$1.700 billion to $1.630-$1.730 billion while reiterating Adjusted EBITDA ($275-$285 million) and Free Cash Flow ($100-$120 million) ranges. Share repurchases of 1.2 million shares for $10.1 million underscore confidence in valuation. Management emphasized resilient demand for repair/maintenance products, RDS growth, supply chain diversification via 'dual faucet' strategy reducing China exposure, and strategic M&A focus on category expansion and pro channels. A conference call is scheduled for April 28, 2026.