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 quarterNet 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 quarterAdjusted diluted EPS1 totaled $0.17 per diluted share compared to $0.16 per diluted share in the prior year quarterAdjusted EBITDA1 increased to $75.2 million compared to $68.4 million in the prior year quarterNet cash provided by operating activities was $48.7 million compared to $64.8 million in the prior year quarterFree Cash Flow1 totaled $31.2 million compared to $42.5 million in the prior year quarterSubsequent 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, 2024Net debt1 was $674.7 million compared to $674.0 million on December 28, 2024Liquidity 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 equivalentsNet 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 GuidanceUpdated FY 2025 GuidanceNet Sales$1.495 to $1.575 billion$1.535 to $1.575 billionAdjusted EBITDA1$255 to $275 million$265 to $275 millionYear-end leverage2.5x leverage at year end2.4x 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 & Treasury513-826-5495IR@hillmangroup.com 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, 2024Net 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, 2024ASSETS 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 24,452 34,977 Pricing allowances 6,374 7,651 Income and other taxes 10,536 10,377 Other accrued liabilities 31,068 31,843 Total current liabilities 273,251 253,730 Long-term debt 683,082 691,726 Deferred tax liabilities 123,064 124,611 Operating lease liabilities 63,057 71,474 Other non-current liabilities 7,238 6,591 Total liabilities$1,149,692 $1,148,132 Commitments and contingencies (Note 6) Stockholders' equity: Common stock: $0.0001 par value, 500,000,000 shares authorized, 197,565,451 and 196,705,710 issued and outstanding in 2025 and 2024, respectively 20 20 Additional paid-in capital 1,448,553 1,442,958 Accumulated deficit (203,436) (218,951)Accumulated other comprehensive loss (38,199) (41,656)Total stockholders' equity 1,206,938 1,182,371 Total liabilities and stockholders' equity$2,356,630 $2,330,503 HILLMAN SOLUTIONS CORP.Condensed Consolidated Statement of Cash Flows(dollars in thousands)Unaudited Twenty-sixWeeks EndedJune 28, 2025 Twenty-sixWeeks EndedJune 29, 2024Cash flows from operating activities: Net income$15,515 $11,043 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 69,915 63,138 Deferred income taxes (3,101) (1,706)Deferred financing and original issue discount amortization 2,511 2,551 Stock-based compensation expense 6,835 6,485 Loss on debt restructuring 906 3,008 Cash paid to third parties in connection with debt restructuring (906) (1,554)Loss on disposal of property and equipment (63) 56 Change in fair value of contingent consideration (567) 780 Changes in operating items: Accounts receivable, net (30,905) (28,414)Inventories, net (20,812) (10,929)Other assets (7,702) (4,409)Accounts payable 29,015 28,683 Accrued salaries and wages (10,681) 5,926 Other accrued expenses (1,908) 1,818 Net cash provided by operating activities 48,052 76,476 Net cash from investing activities Acquisition of business, net of cash received — (23,783)Capital expenditures (38,175) (40,078)Other investing activities (109) (153)Net cash used for investing activities (38,284) (64,014)Cash flows from financing activities: Repayments of senior term loans (4,256) (4,255)Financing fees — (33)Borrowings on revolving credit loans 79,000 65,000 Repayments of revolving credit loans (92,000) (65,000)Principal payments under finance lease obligations (2,653) (1,758)Proceeds from exercise of stock options 490 6,379 Payments of contingent consideration (137) (133)Other financing activities (855) 570 Net cash (used for) provided by financing activities (20,411) 770 Effect of exchange rate changes on cash 321 2,231 Net (decrease) increase in cash and cash equivalents (10,322) 15,463 Cash and cash equivalents at beginning of period 44,510 38,553 Cash and cash equivalents at end of period$34,188 $54,016 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 WeeksEndedJune 28, 2025 Thirteen WeeksEndedJune 29, 2024 Twenty-sixWeeks EndedJune 28, 2025 Twenty-sixWeeks EndedJune 29, 2024Net income$15,832 $12,535 $15,515 $11,043 Income tax expense 6,593 5,114 6,559 4,631 Interest expense, net 13,892 13,937 28,352 29,208 Depreciation 19,848 16,297 39,243 32,635 Amortization 15,257 15,249 30,672 30,503 EBITDA$71,422 $63,132 $120,341 $108,020 Stock compensation expense 3,557 3,656 6,835 6,485 Restructuring and other (1) 420 879 2,111 1,870 Transaction and integration expense (2) 70 242 128 516 Change in fair value of contingent consideration (241) 448 (567) 780 Refinancing costs (3) — — 906 3,008 Total adjusting items 3,806 5,225 9,413 12,659 Adjusted EBITDA$75,228 $68,357 $129,754 $120,679 (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 the Koch Industries, Inc. and Intex DIY, Inc acquisitions. (3)In the first quarters of 2025 and 2024, we entered into a Repricing Amendment (2025 Repricing Amendment and 2024 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: ThirteenWeeks EndedJune 28, 2025 ThirteenWeeks EndedJune 29, 2024 Twenty-sixWeeks EndedJune 28, 2025 Twenty-sixWeeks EndedJune 29, 2024Reconciliation to Adjusted Net Income Net income$15,832 $12,535 $15,515 $11,043 Remove adjusting items (1) 3,806 5,225 9,413 12,659 Remove amortization expense 15,257 15,249 30,672 30,503 Remove tax benefit on adjusting items and amortization expense (2) (1,176) (1,544) (2,896) (3,780)Adjusted Net Income$33,719 $31,465 $52,704 $50,425 Reconciliation to Adjusted Diluted Earnings per Share Diluted Earnings per Share $0.08 $0.06 $0.08 $0.06 Remove adjusting items (1) 0.02 0.03 0.05 0.06 Remove amortization expense 0.08 0.08 0.15 0.15 Remove tax benefit on adjusting items and amortization expense (2) (0.01) (0.01) (0.01) (0.02)Adjusted Diluted Earnings per Share $0.17 $0.16 $0.26 $0.25 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 rate of 25%, excluding certain awards that are non-deductible. b.The tax impact of acquisition and integration expense was calculated using the statutory rate of 25%, excluding certain charges that were non-deductible. c.Amortization expense for financial accounting purposes was offset by the tax benefit of deductible amortization expense using the statutory rate of 25%. (3)Diluted shares on a GAAP basis for the thirteen and twenty-six weeks ended June 28, 2025 include the dilutive impact of 1,083 and 1,818 options and awards, respectfully. Diluted shares on a GAAP basis for the thirteen and twenty-six weeks ended June 29, 2024 include the dilutive impact of 2,345 and 2,316 options and awards, respectfully. Per Share Impact of Adjusting Items Thirteen WeeksEndedJune 28, 2025 Thirteen WeeksEndedJune 29, 2024 Twenty-sixWeeks EndedJune 28, 2025 Twenty-sixWeeks EndedJune 29, 2024Stock compensation expense $0.02 $0.02 $0.03 $0.03 Restructuring and other costs 0.00 0.00 0.01 0.01 Transaction and integration expense 0.00 0.00 0.00 0.00 Change in fair value of contingent consideration 0.00 0.00 0.00 0.00 Refinancing costs 0.00 0.00 0.00 0.02 Total adjusting items $0.02 $0.03 $0.05 $0.06 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: June 28, 2025 December 28, 2024Revolving loans$49,000 $62,000 Senior term loan, due 2028 641,215 645,470 Finance leases and other obligations 18,647 11,085 Gross debt $708,862 $718,555 Less cash 34,188 44,510 Net debt$674,674 $674,045 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 WeeksEndedJune 28, 2025 Thirteen WeeksEndedJune 29, 2024 Twenty-sixWeeks EndedJune 28, 2025 Twenty-sixWeeks EndedJune 29, 2024Net cash provided by operating activities$48,707 $64,800 $48,052 $76,476 Capital expenditures (17,517) (22,319) (38,175) (40,078)Free cash flow$31,190 $42,481 $9,877 $36,398 Source: Hillman Solutions Corp.

Hillman Reports Second Quarter 2025 Results

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