Hillman Solutions Corp.

What they do

Hillman sells thousands of small, hard-to-manage SKUs such as fasteners, threaded rod, keys, builder's hardware, rope and chain, protective gloves and eyewear, and identification items like tags, letters, numbers and signs. It sells through hardware stores, home centers, mass merchants, pet supply stores, grocery and drug stores principally across the United States, Canada, Mexico, Latin America and the Caribbean. The company supports those sales with a field service and sales group of over 1,200 representatives who manage in-store inventory, displays and merchandising systems. It also operates robotics kiosks and provides break-fix service for them.

Revenue drivers

• Hardware and Protective Solutions — The largest segment, at $336.1 million, or 76.0% of second quarter 2026 net sales; it sells fasteners, hardware, threaded rod, keys, builder's hardware, rope and chain, and protective products like gloves and eyewear.
• Robotics and Digital Solutions — At $61.6 million, or 13.9% of second quarter 2026 net sales; this is the key duplication and robotics kiosk business, which grew 11.0% year over year driven partly by the MinuteKey 3.5 rollout.
• Canada — At $44.6 million, or 10.1% of second quarter 2026 net sales; it sells similar hardware products into the Canadian market, where segment growth came from 13.6% new business wins offset by soft core volumes.
• Acquired lines — Delaney, Campbell and Kanebridge — Second quarter 2026 Hardware and Protective Solutions sales included $13.7 million from the Delaney and Campbell acquisitions, and the company has agreed to acquire Kanebridge for $315 million.

Recent performance

Second quarter 2026 net sales rose 9.8% to $442.3 million from $402.8 million a year earlier, with all three segments growing. Net income was $21.1 million, or $0.11 per diluted share, versus $15.8 million, or $0.08 per diluted share, in the prior-year quarter. Adjusted EBITDA rose to $77.1 million from $75.2 million, while Adjusted diluted EPS was flat at $0.17. Net cash provided by operating activities increased to $68.5 million from $48.1 million, and Free Cash Flow rose to $70.2 million from $31.2 million. Gross debt was $701.3 million and net debt $665.4 million at June 27, 2026, with net debt to trailing twelve-month Adjusted EBITDA at 2.4x.

Strategy

Management describes a "Blueprint" for growth built on new business wins, category expansion, and acquisitions. Recent deals include Delaney Hardware and Campbell Chain & Fittings, and the pending $315 million purchase of Kanebridge Corp., which management says establishes an industrial master distribution presence in the U.S. The company also invests in its robotics platform, citing the MinuteKey 3.5 rollout as a driver of Robotics and Digital Solutions growth. In July 2026, subsequent to the quarter, Hillman refinanced its credit facilities with a new $735 million senior secured Term Loan B and a $375 million asset-based revolving credit facility, and it repurchased about 1.7 million shares for $13.3 million during the quarter.

Risks

• Home improvement demand sensitivity — Hillman's own risk factors state that sales of many products are driven by home repair and remodel activity, which is pressured by high home prices, elevated interest rates and weak existing home sales.
• Customer concentration — The company sells primarily to hardware stores, home centers and mass merchants, and its risk factors identify large customer concentration as a factor that could materially hurt results.
• Tariffs and supply chain costs — Hillman lists increased supply chain costs, including tariffs, raw materials, sourcing, transportation and energy, among the factors that could cause actual results to differ from expectations.
• Acquisition and integration risk — The pending Kanebridge acquisition for $315 million and recent Delaney and Campbell deals expand categories and channels, and the company's forward-looking statements flag acquisitions and refinancing among items subject to assumptions, risks and uncertainties.

Outlook

Management raised its full-year 2026 guidance, now expecting net sales of $1.670 to $1.720 billion, Adjusted EBITDA of $285 million, and Free Cash Flow of $105 to $115 million. The guidance assumes the Kanebridge acquisition closes around the start of the fourth quarter of 2026. Management said the raised midpoint reflects continued execution and the expected contribution from Kanebridge, while reiterating its free cash flow guidance midpoint.