Hillman Solutions Q3 net income falls to $6.3M
Q3 cash flow measures increased year over year, while net income fell and net leverage reached 3.4x.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Hillman Solutions Corp. (HLMN) reported third-quarter net sales of $457.5 million, up 7.7% from $424.9 million in the prior-year quarter. Net income fell to $6.3 million from $23.2 million, and diluted EPS was $0.03 versus $0.12; Adjusted Diluted EPS was $0.22 in both periods. Adjusted EBITDA was $90.2 million, compared with $88.0 million. Net cash provided by operating activities rose to $69.9 million from $26.2 million, while free cash flow was $51.1 million versus $9.1 million.
Robotics and Digital Solutions sales grew 19.2%. Hillman completed the Kanebridge acquisition and repurchased approximately 0.6 million shares at an average price of $7.75 per share, totaling $5.0 million. It refinanced its credit facilities with a $735 million senior secured term loan B, a $375 million asset-based revolving credit facility and a $200 million add-on term loan B for the acquisition. Net debt was $932.6 million and leverage was 3.4x at September 26, 2026, compared with 2.4x on December 27, 2025.
For FY 2026, net sales guidance is now $1.660 billion to $1.680 billion. Hillman reiterated Adjusted EBITDA guidance of approximately $285 million and free cash flow guidance of $105 million to $115 million.
3 points · 0 major0 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointQuarterly net sales rose 7.7% to $457.5 million.
- Moderate pointOperating cash flow increased to $69.9 million from $26.2 million.
- Moderate pointFree cash flow increased to $51.1 million from $9.1 million.
Negative
- Moderate pointQuarterly net income fell to $6.3 million from $23.2 million.
- Moderate pointNet leverage reached 3.4x, up from 2.4x on December 27, 2025.
Filing Explained
As of September 26, 2026, available liquidity was 343.1 million dollars.
The 8-K furnishes third-quarter results and reports the refinancing as completed; the new term loan matures in 2033 and the revolving facility in 2031.
At
The full-year net-sales guidance range shifted from
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net sales: $457.5 million
Net income: $6.3 million
Adjusted Diluted EPS: $0.22 per diluted share
+5 more
8 metrics
Net sales
$457.5 million
Thirteen weeks ended September 26, 2026; up 7.7% from $424.9 million in the prior-year quarter.
Net income
$6.3 million
Thirteen weeks ended September 26, 2026; compared with $23.2 million in the prior-year quarter.
Adjusted Diluted EPS
$0.22 per diluted share
Thirteen weeks ended September 26, 2026; $0.22 in the prior-year quarter.
Adjusted EBITDA
$90.2 million
Thirteen weeks ended September 26, 2026; compared with $88.0 million in the prior-year quarter.
Net cash provided by operating activities
$69.9 million
Thirteen weeks ended September 26, 2026; compared with $26.2 million in the prior-year quarter.
Free cash flow
$51.1 million
Thirteen weeks ended September 26, 2026; compared with $9.1 million in the prior-year quarter.
Net Debt / TTM Adjusted EBITDA
3.4x
At September 26, 2026; compared with 2.4x on December 27, 2025.
FY 2026 net sales guidance
$1.660 billion to $1.680 billion
Updated full-year guidance.
Key Terms
Adjusted EBITDA, Free Cash Flow, asset-based revolving credit facility, Net Debt / TTM Adjusted EBITDA
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA increased to $90.2 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow financial
"Free Cash Flow increased to $51.1 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
asset-based revolving credit facility financial
"$375 million asset-based revolving credit facility"
A loan arrangement where a lender agrees to make funds available up to a set limit that a borrower can draw, repay, and draw again, with the amount available tied to the value of specific assets (like inventory, receivables, or equipment) pledged as collateral. It matters to investors because it provides flexible working capital while limiting risk exposure: the company can fund growth or cover shortfalls quickly, but borrowing capacity can shrink if asset values fall.
Net Debt / TTM Adjusted EBITDA financial
"Net Debt / TTM Adjusted EBITDA 3.4x"
Earnings Snapshot
Net sales: $457.5 million · Guidance included
Thirteen weeks ended September 26, 2026
Net sales
$457.5 million
Up 7.7% from $424.9 million in the prior-year quarter
Net income
$6.3 million
Compared with $23.2 million in the prior-year quarter
Adjusted EBITDA
$90.2 million
Compared with $88.0 million in the prior-year quarter
Free cash flow
$51.1 million
Compared with $9.1 million in the prior-year quarter
Guidance
FY 2026 net sales of $1.660 billion to $1.680 billion; Adjusted EBITDA of approximately $285 million; free cash flow of $105 million to $115 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did HLMN report in Q3 2026?
Hillman reported Q3 net sales of $457.5 million, up 7.7% from $424.9 million in the prior-year quarter. Robotics and Digital Solutions sales increased 19.2%, Hardware and Protective Solutions sales increased 5.4%, and Canada sales increased 9.2%.
How much net income did HLMN earn in Q3 2026?
Hillman reported $6.3 million of net income, compared with $23.2 million in the prior-year quarter. Diluted earnings per share were $0.03, versus $0.12 in that quarter.
What is HLMN's updated 2026 guidance?
Hillman updated FY 2026 net sales guidance to $1.660 billion to $1.680 billion, from $1.670 billion to $1.720 billion. It reiterated Adjusted EBITDA guidance of approximately $285 million and free cash flow guidance of $105 million to $115 million.
What credit facilities did HLMN establish in its refinancing?
Hillman put in place a $735 million senior secured term loan B and a $375 million asset-based revolving credit facility, and closed a $200 million add-on term loan B for the Kanebridge acquisition. The stated maturities are 2033 for the term loan B and 2031 for the revolving credit facility.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 2, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction | (Commission File No.) | (I.R.S. Employer | ||||||||||||
| of incorporation) | Identification No.) | |||||||||||||
(Address of principal executive offices)
Registrant’s telephone number, including area code: (513 ) 851-4900
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbols | Name of each exchange on which registered | ||||||
| Common Stock, par value $0.0001 per share | HLMN | The Nasdaq Stock Market LLC | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 2, 2026, Hillman Solutions Corp. (the “Company”) issued a press release, furnished as Exhibit 99.1 and incorporated herein by reference, announcing the Company's selected summary financial results for its thirteen and thirty-nine weeks ended September 26, 2026.
The information provided pursuant to Item 2.02, including the exhibit attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press Release, dated November 2, 2026, announcing the financial results of Hillman Solutions Corp. for its thirteen and thirty-nine weeks ended September 26, 2026.
99.2 Supplemental slides provided in connection with the third quarter 2026 earnings call of Hillman Solutions Corp.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: November 2, 2026 | Hillman Solutions Corp. | ||||||||||
By: | /s/ Robert O. Kraft | ||||||||||
Name: | Robert O. Kraft | ||||||||||
Title: | Chief Financial Officer | ||||||||||
Hillman Reports Third Quarter 2026 Results; Updates Full-Year Outlook
Q3 2026 Net Sales increased 7.7% to a record $457.5 million
Reiterates FY 2026 Adj. EBITDA and Free Cash Flow guidance; updates Net Sales outlook
CINCINNATI, November 2, 2026 -- Hillman Solutions Corp. (Nasdaq: HLMN) (the “Company” or “Hillman”), a leading provider of hardware and related products, reported financial results for the thirteen and thirty-nine weeks ended September 26, 2026.
Third Quarter 2026 Highlights (Thirteen weeks ended September 26, 2026)
•Net sales increased 7.7% to $457.5 million compared to $424.9 million in the prior year quarter
•Net income totaled $6.3 million, or $0.03 per diluted share, compared to $23.2 million, or $0.12 per diluted share, in the prior year quarter
•Adjusted diluted EPS1 totaled $0.22 per diluted share compared to $0.22 in the prior year quarter
•Adjusted EBITDA1 increased to $90.2 million compared to $88.0 million in the prior year quarter
•Net cash provided by operating activities increased to $69.9 million compared to $26.2 million in the prior year quarter
•Free Cash Flow1 increased to $51.1 million compared to $9.1 million in the prior year quarter
•Repurchased approximately 0.6 million shares of its common stock at an average price of $7.75 per share, which totaled $5.0 million
•Completed the acquisition of Kanebridge, a leading master distributor of industrial fasteners
Balance Sheet and Liquidity at September 26, 2026
•Successfully refinanced its existing credit facilities, consisting of a new $735 million senior secured term loan B and a $375 million asset-based revolving credit facility; closed a $200 million add-on term loan B for the Kanebridge acquisition
•Gross debt was $967.7 million compared to $693.1 million on December 27, 2025
•Net debt1 was $932.6 million compared to $665.8 million on December 27, 2025
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.
1
•Liquidity available totaled $343.1 million; consisting of $308.0 million of available borrowing under the revolving credit facility and $35.1 million of cash and equivalents
•Net debt1 to trailing twelve month Adjusted EBITDA was 3.4x at quarter end compared to 2.4x on December 27, 2025
Management Commentary
“The third quarter reflects the continued execution of Hillman’s Blueprint for Strategic Growth," commented Hillman's CEO, Jon Michael Adinolfi. "We continue to deliver net sales growth and strong free cash flow generation that give us the flexibility to invest into attractive opportunities, like our high-margin Robotics and Digital Solutions segment - which had a great quarter, up 19.2% - and accretive acquisitions, like Kanebridge."
"We are winning in Pro, where our channel relationships, sourcing agility, and field sales team are driving new business wins. The Kanebridge acquisition, which is off to a great start, accelerates that momentum, establishing our position as a long-tail master distributor in the U.S. industrial market."
"Given our performance through the first nine months, we are reaffirming our full-year Adjusted EBITDA and free cash flow guidance while narrowing down our net sales range, given the macro environment. As we look to the rest of 2026 and beyond, we are well positioned to drive growth and create long-term 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 updated its guidance most recently provided on August 3, 2026.
| Previous FY 2026 Guidance | Updated FY 2026 Guidance | |||||||
| Net Sales | $1.670 to $1.720 billion | $1.660 to $1.680 billion | ||||||
Adjusted EBITDA1 | ~$285 million | ~$285 million | ||||||
Free Cash Flow1 | $105 to $115 million | $105 to $115 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.
2
Third Quarter 2026 Results Presentation
Hillman plans to host a conference call and webcast presentation on November 3, 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, November 3, 2026
Time: 8:30 a.m. Eastern Time
Listen-Only Webcast: https://edge.media-server.com/mmc/p/diivckgp
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 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 over 150,000 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,
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.
3
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
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.
4
HILLMAN SOLUTIONS CORP.
Condensed Consolidated Statement of Net Income, GAAP Basis
(dollars in thousands) Unaudited
| Thirteen Weeks Ended September 26, 2026 | Thirteen Weeks Ended September 27, 2025 | Thirty-nine Weeks Ended September 26, 2026 | Thirty-nine Weeks Ended September 27, 2025 | ||||||||||||||||||||
| Net sales | $ | 457,488 | $ | 424,939 | $ | 1,269,812 | $ | 1,187,085 | |||||||||||||||
| Cost of sales (exclusive of depreciation and amortization shown separately below) | 225,203 | 205,378 | 660,861 | 604,456 | |||||||||||||||||||
| Selling, warehouse, general and administrative expenses | 157,896 | 138,342 | 416,450 | 381,101 | |||||||||||||||||||
| Depreciation | 22,308 | 20,100 | 66,842 | 59,343 | |||||||||||||||||||
| Amortization | 15,649 | 15,265 | 46,148 | 45,937 | |||||||||||||||||||
| Other income, net | (1,457) | (50) | (6,525) | (988) | |||||||||||||||||||
| Income from operations | 37,889 | 45,904 | 86,036 | 97,236 | |||||||||||||||||||
| Interest expense, net | 14,338 | 14,692 | 40,385 | 43,044 | |||||||||||||||||||
| Refinancing costs | 13,505 | — | 13,505 | 906 | |||||||||||||||||||
| Income before income taxes | 10,046 | 31,212 | 32,146 | 53,286 | |||||||||||||||||||
| Income tax expense | 3,755 | 8,020 | 9,467 | 14,579 | |||||||||||||||||||
| Net income | $ | 6,291 | $ | 23,192 | $ | 22,679 | $ | 38,707 | |||||||||||||||
| Basic income per share | $ | 0.03 | $ | 0.12 | $ | 0.12 | $ | 0.20 | |||||||||||||||
| Weighted average basic shares outstanding | 194,826 | 197,754 | 195,779 | 197,544 | |||||||||||||||||||
| Diluted income per share | $ | 0.03 | $ | 0.12 | $0.11 | $ | 0.19 | ||||||||||||||||
| Weighted average diluted shares outstanding | 196,058 | 199,849 | 197,349 | 199,454 | |||||||||||||||||||
5
HILLMAN SOLUTIONS CORP.
Condensed Consolidated Balance Sheets
(dollars in thousands)
Unaudited
| September 26, 2026 | December 27, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 35,078 | $ | 27,276 | |||||||
Accounts receivable, net of allowances of $2,431 ($1,944 - 2025) | 168,151 | 114,926 | |||||||||
| Inventories, net | 479,310 | 485,938 | |||||||||
| Other current assets | 20,724 | 18,342 | |||||||||
| Total current assets | 703,263 | 646,482 | |||||||||
Property and equipment, net of accumulated depreciation of $485,923 ($428,726 - 2025) | 230,229 | 231,482 | |||||||||
| Goodwill | 936,011 | 830,747 | |||||||||
Other intangibles, net of accumulated amortization of $638,342 ($592,748 - 2025) | 658,024 | 546,171 | |||||||||
| Operating lease right of use assets | 105,355 | 75,152 | |||||||||
| Other assets | 36,998 | 26,160 | |||||||||
| Total assets | $ | 2,669,880 | $ | 2,356,194 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 149,298 | $ | 141,662 | |||||||
| Current portion of debt and financing lease liabilities | 16,292 | 14,830 | |||||||||
| Current portion of operating lease liabilities | 21,414 | 17,947 | |||||||||
| Accrued expenses: | |||||||||||
| Salaries and wages | 16,106 | 35,790 | |||||||||
| Pricing allowances | 14,255 | 8,098 | |||||||||
| Income and other taxes | 9,014 | 9,466 | |||||||||
| Other accrued liabilities | 44,567 | 29,766 | |||||||||
| Total current liabilities | 270,946 | 257,559 | |||||||||
| Long-term debt | 940,512 | 668,337 | |||||||||
| Deferred tax liabilities | 129,529 | 131,870 | |||||||||
| Operating lease liabilities | 90,328 | 63,459 | |||||||||
| Other non-current liabilities | 5,702 | 6,462 | |||||||||
| Total liabilities | $ | 1,437,017 | $ | 1,127,687 | |||||||
| Commitments and contingencies (Note 6) | |||||||||||
| Stockholders' equity: | |||||||||||
Common stock: $0.0001 par value, 500,000,000 shares authorized, 199,329,814 and 194,358,288 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, 4,971,526 shares in 2026 and 1,369,568 shares in 2025 | (40,774) | (12,423) | |||||||||
| Additional paid-in capital | 1,469,227 | 1,457,422 | |||||||||
| Accumulated deficit | (155,967) | (178,646) | |||||||||
| Accumulated other comprehensive loss | (39,643) | (37,866) | |||||||||
| Total stockholders' equity | 1,232,863 | 1,228,507 | |||||||||
| Total liabilities and stockholders' equity | $ | 2,669,880 | $ | 2,356,194 | |||||||
6
HILLMAN SOLUTIONS CORP.
Condensed Consolidated Statement of Cash Flows
(dollars in thousands)
Unaudited
| Thirty-nine Weeks Ended September 26, 2026 | Thirty-nine Weeks Ended September 27, 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 22,679 | $ | 38,707 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 112,990 | 105,280 | |||||||||
| Deferred income taxes | (4,056) | 9,791 | |||||||||
| Deferred financing and original issue discount amortization | 1,397 | 3,767 | |||||||||
| Stock-based compensation expense | 11,727 | 10,739 | |||||||||
| Loss on debt restructuring, net of third party fees paid | 1,488 | — | |||||||||
| Gain on acquisition, net of tax | (5,214) | — | |||||||||
| Gain on disposal of property and equipment | 112 | (135) | |||||||||
| Change in fair value of contingent consideration | (489) | (500) | |||||||||
| Changes in operating items: | |||||||||||
| Accounts receivable, net | (38,772) | (34,721) | |||||||||
| Inventories, net | 62,269 | (53,925) | |||||||||
| Other assets | (12,183) | (19,691) | |||||||||
| Accounts payable | 3,563 | 22,575 | |||||||||
| Accrued salaries and wages | (19,648) | (1,217) | |||||||||
| Other accrued expenses | 2,484 | (6,381) | |||||||||
| Net cash provided by operating activities | 138,347 | 74,289 | |||||||||
| Net cash from investing activities | |||||||||||
| Acquisition of business, net of cash received | (314,503) | — | |||||||||
| Capital expenditures | (51,390) | (55,347) | |||||||||
| Other investing activities | (145) | (154) | |||||||||
| Net cash used for investing activities | (366,038) | (55,501) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Repayments of senior term loans | (636,960) | (6,384) | |||||||||
| Borrowings on senior term loans | 935,000 | — | |||||||||
| Financing fees | (3,751) | — | |||||||||
| Borrowings on revolving credit loans | 203,645 | 109,000 | |||||||||
| Repayments of revolving credit loans | (230,617) | (122,000) | |||||||||
| Principal payments under finance lease obligations | (4,963) | (4,156) | |||||||||
| Proceeds from exercise of stock options | 2,392 | 1,177 | |||||||||
| Repurchases of common stock | (28,351) | (3,165) | |||||||||
| Payments of contingent consideration | (207) | (199) | |||||||||
| Other financing activities | (587) | 142 | |||||||||
| Net cash provided by (used for) financing activities | 235,601 | (25,585) | |||||||||
| Effect of exchange rate changes on cash | (108) | 18 | |||||||||
| Net increase (decrease) in cash and cash equivalents | 7,802 | (6,779) | |||||||||
| Cash and cash equivalents at beginning of period | 27,276 | 44,510 | |||||||||
| Cash and cash equivalents at end of period | $ | 35,078 | $ | 37,731 | |||||||
7
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.
8
| Thirteen Weeks Ended September 26, 2026 | Thirteen Weeks Ended September 27, 2025 | Thirty-nine Weeks Ended September 26, 2026 | Thirty-nine Weeks Ended September 27, 2025 | ||||||||||||||||||||
| Net income | $ | 6,291 | $ | 23,192 | $ | 22,679 | $ | 38,707 | |||||||||||||||
| Income tax expense | 3,755 | 8,020 | 9,467 | 14,579 | |||||||||||||||||||
| Interest expense, net | 14,338 | 14,692 | 40,385 | 43,044 | |||||||||||||||||||
| Depreciation | 22,308 | 20,100 | 66,842 | 59,343 | |||||||||||||||||||
| Amortization | 15,649 | 15,265 | 46,148 | 45,937 | |||||||||||||||||||
| EBITDA | $ | 62,341 | $ | 81,269 | $ | 185,521 | $ | 201,610 | |||||||||||||||
| Stock compensation expense | 4,365 | 3,904 | 11,727 | 10,739 | |||||||||||||||||||
Restructuring and other (1) | 1,469 | 749 | 2,903 | 2,860 | |||||||||||||||||||
Litigation expense (2) | — | 1,950 | — | 1,950 | |||||||||||||||||||
Transaction and integration expense (3) | 8,610 | 87 | 4,221 | 215 | |||||||||||||||||||
| Change in fair value of contingent consideration | (137) | 67 | (489) | (500) | |||||||||||||||||||
Refinancing costs (4) | 13,505 | — | 13,505 | 906 | |||||||||||||||||||
| Total adjusting items | 27,812 | 6,757 | 31,867 | 16,170 | |||||||||||||||||||
| Adjusted EBITDA | $ | 90,153 | $ | 88,026 | $ | 217,388 | $ | 217,780 | |||||||||||||||
(1)Includes consulting and other costs associated with severance related to our distribution center relocations and corporate restructuring activities.
(2)Litigation expense includes an accrual for the preliminary settlement of a California wage-hour class action / Private Attorneys General Act (PAGA) claim.
(3)Transaction and integration expense includes professional fees and other costs related to acquisition activity, including the acquisitions of Campbell Chain and Fittings and Delaney Hardware in the second quarter of 2026, and the Kanebridge acquisition in the third quarter. Also included is a $5.2 million gain, net of deferred taxes, on the Campbell acquisition.
(4)In July of 2026 we entered into a new Term Loan B consisting of a $735 million senior secured Term Loan B and new $375 million senior secured asset based revolving credit facility. In August of 2026, we entered into Amendment No. 1 to provide for an additional $200.0 million of senior secured term loans. In the first quarter of 2025, we entered into a Repricing Amendment (2025 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:
9
| Thirteen Weeks Ended September 26, 2026 | Thirteen Weeks Ended September 27, 2025 | Thirty-nine Weeks Ended September 26, 2026 | Thirty-nine Weeks Ended September 27, 2025 | ||||||||||||||||||||
| Reconciliation to Adjusted Net Income | |||||||||||||||||||||||
| Net Income | $ | 6,291 | $ | 23,192 | $ | 22,679 | $ | 38,707 | |||||||||||||||
Remove adjusting items (1) | 27,812 | 6,757 | 31,867 | 16,170 | |||||||||||||||||||
| Remove amortization expense | 15,649 | 15,265 | 46,148 | 45,937 | |||||||||||||||||||
Remove tax benefit on adjusting items and amortization expense (2) | (7,424) | (1,967) | (10,031) | (4,864) | |||||||||||||||||||
| Adjusted Net Income | $ | 42,328 | $ | 43,247 | $ | 90,663 | $ | 95,950 | |||||||||||||||
| Reconciliation to Adjusted Diluted Earnings per Share | |||||||||||||||||||||||
| Diluted Earnings per Share | $ | 0.03 | $ | 0.12 | $ | 0.11 | $ | 0.19 | |||||||||||||||
Remove adjusting items (1) | 0.14 | 0.03 | 0.16 | 0.08 | |||||||||||||||||||
| Remove amortization expense | 0.08 | 0.08 | 0.23 | 0.23 | |||||||||||||||||||
Remove tax benefit on adjusting items and amortization expense (2) | (0.04) | (0.01) | (0.05) | (0.02) | |||||||||||||||||||
| Adjusted Diluted Earnings per Share | $ | 0.22 | $ | 0.22 | $ | 0.46 | $ | 0.48 | |||||||||||||||
| Diluted Shares, as reported | 196,058 | 199,849 | 197,349 | 199,454 | |||||||||||||||||||
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 September 26, 2026 | Thirteen Weeks Ended September 27, 2025 | Thirty-nine Weeks Ended September 26, 2026 | Thirty-nine Weeks Ended September 27, 2025 | |||||||||||||||||||||||
| Stock compensation expense | $ | 0.02 | $ | 0.02 | $ | 0.06 | $ | 0.05 | ||||||||||||||||||
| Restructuring and other costs | 0.01 | 0.00 | 0.01 | 0.01 | ||||||||||||||||||||||
| Litigation expense | 0.00 | 0.01 | 0.00 | 0.01 | ||||||||||||||||||||||
| Transaction and integration expense | 0.04 | 0.00 | 0.02 | 0.00 | ||||||||||||||||||||||
| Change in fair value of contingent consideration | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||
| Refinancing costs | 0.07 | 0.00 | 0.07 | 0.00 | ||||||||||||||||||||||
| Total adjusting items | $ | 0.14 | $ | 0.03 | $ | 0.16 | $ | 0.08 | ||||||||||||||||||
Note: Adjusting items may not add due to rounding.
10
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:
| September 26, 2026 | December 27, 2025 | ||||||||||
| Revolving loans | $ | 9,000 | $ | 36,000 | |||||||
| Senior term loan, due 2028 | — | 636,960 | |||||||||
| Senior term loan, due 2033 | 935,000 | — | |||||||||
| Finance leases and other obligations | 23,718 | 20,090 | |||||||||
| Gross debt | $ | 967,718 | $ | 693,050 | |||||||
| Less cash | 35,078 | 27,276 | |||||||||
| Net debt | $ | 932,640 | $ | 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 September 26, 2026 | Thirteen Weeks Ended September 27, 2025 | Thirty-nine Weeks Ended September 26, 2026 | Thirty-nine Weeks Ended September 27, 2025 | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 69,884 | $ | 26,237 | $ | 138,347 | $ | 74,289 | |||||||||||||||
| Capital expenditures | (18,795) | (17,172) | (51,390) | (55,347) | |||||||||||||||||||
| Free cash flow | $ | 51,089 | $ | 9,065 | $ | 86,957 | $ | 18,942 | |||||||||||||||
Source: Hillman Solutions Corp.
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11
Quarterly Earnings Results Presentation Q3 2026 - November 2, 2026
2 PresBuilder Placeholder - Delete this box if you see it on a slide, but DO NOT REMOVE this box from the slide layout Forward Looking Statements This presentation contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements. All forward-looking statements 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 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 its Annual Report on Form 10-K for the fiscal year ended December 27, 2025 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. Presentation of Non-GAAP Financial Measures In addition to the results provided in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) throughout this presentation the company has provided non-GAAP financial measures, which present results on a basis adjusted for certain items. The company uses these non-GAAP financial measures for business planning purposes and in measuring its performance relative to that of its competitors. The company believes that these non-GAAP financial measures are useful financial metrics to assess its operating performance from period-to-period by excluding certain items that the company believes are not representative of its core business. These non-GAAP financial measures are not intended to replace, and should not be considered superior to, the presentation of the company’s financial results in accordance with GAAP. The use of the non-GAAP financial measures terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. These non-GAAP financial measures are reconciled from the respective measures under GAAP in the appendix below. The company is not able to provide a reconciliation of the company’s non-GAAP financial guidance to the corresponding GAAP measures without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation such as certain non-cash, nonrecurring or other items that are included in net income and EBITDA as well as the related tax impacts of these items and asset dispositions / acquisitions and changes in foreign currency exchange rates that are included in cash flow, due to the uncertainty and variability of the nature and amount of these future charges and costs.
3 • Net sales increased 7.7% to $457.5 million versus Q3 2025 ◦ Hardware and Protective Solutions ("HPS") increased +5.4% ◦ Robotics and Digital Solutions ("RDS") increased +19.2% ◦ Canada increased +9.2% • GAAP net income totaled $6.3 million, or $0.03 per diluted share, compared to $23.2 million, or $0.12 per diluted share, in Q3 2025 • Adjusted Gross Margins were 50.8% compared to 51.7% in Q3 2025 • Adjusted EBITDA increased to $90.2 million from $88.0 million in Q3 2025 • Adjusted EBITDA margins were 19.7% compared to 20.7% in Q3 2025 • Net Debt / Adjusted EBITDA (ttm): 3.4x at quarter end, up from 2.4x on December 27, 2025 due to additional debt added to fund the Kanebridge acquisition Q3 2026 Financial Review Please see reconciliation tables in the Appendix of this presentation for non-GAAP metrics. Highlights for the 13 Weeks Ended September 26, 2026
4 Q3 2026 Operational Review Highlights for the 13 Weeks Ended September 26, 2026 • Continued taking great care of customers: ◦ YTD fill rates continued to be in the "high ninety percent" range • Repurchased 0.6 million shares of common stock at an average price of $7.75 per share, which totaled $5.0 million • Completed the acquisition of Kanebridge a leading master distributor of industrial fasteners • Successfully refinanced its existing credit facilities extending maturities to 2033 (term loan B) and 2031 (revolving credit facility) ◦ $735 million senior secured term loan B ◦ $375 million asset-based revolving credit facility ◦ $200 million add-on to the term loan B (for the Kanebridge acquisition)
5 Quarterly Financial Performance Adjusted EBITDA (millions $ and % of Net Sales) Please see reconciliation of Non-GAAP metrics Adjusted EBITDA and Adjusted Gross Margin in the Appendix of this presentation. Not to scale. Net Sales (millions $) Adjusted Gross Margin (millions $ and % of Net Sales) $88.0 $90.2 Q3 2025 Q3 2026 19.7%20.7% $219.6 $232.3 Q3 2025 Q3 2026 $424.9 $457.5 Q3 2025 Q3 2026 50.8%51.7%
6 Hardware & Protective Q3 2026 Q3 2025 Δ Thirteen weeks ended 9/26/2026 9/27/2025 Revenues $346,968 $329,122 5.4% Adjusted EBITDA $63,163 $65,840 (4.1)% Margin (Adj. EBITDA/Net Sales) 18.2% 20.0% (180) bps Robotics & Digital Q3 2026 Q3 2025 Δ Thirteen weeks ended 9/26/2026 9/27/2025 Revenues $69,843 $58,573 19.2% Adjusted EBITDA $20,856 $18,390 13.4% Margin (Adj. EBITDA/Net Sales) 29.9% 31.4% (150) bps Canada Q3 2026 Q3 2025 Δ Thirteen weeks ended 9/26/2026 9/27/2025 Revenues $40,677 $37,244 9.2% Adjusted EBITDA $6,134 $3,796 61.6% Margin (Adj. EBITDA/Net Sales) 15.1% 10.2% 490 bps Consolidated Q3 2026 Q3 2025 Δ Thirteen weeks ended 9/26/2026 9/27/2025 Revenues $457,488 $424,939 7.7% Adjusted EBITDA $90,153 $88,026 2.4% Margin (Adj. EBITDA/Net Sales) 19.7% 20.7% (100) bps Quarterly Performance by Product Category Please see reconciliation of Adjusted EBITDA to Net Income in the Appendix of this presentation. Figures in Thousands of USD unless otherwise noted. • Top Row: ◦ 27 point height ◦ 16 font (work sans) ◦ 4 point white bottom line • First Column green ◦ Dark: CFD9D1 ◦ Light: D9E1DA • Other Columns gray ◦ Dark: D9D9D9 ◦ Light E0E0E0 ◦ 1 point white bottom and inside lines
7 Hardware & Protective Q3 2026 Q3 2025 Δ Thirty-nine weeks ended 9/26/2026 9/27/2025 Revenues $964,342 $913,055 5.6% Adjusted EBITDA $146,365 $155,639 (6.0)% Margin (Adj. EBITDA/Net Sales) 15.2% 17.0% (180) bps Robotics & Digital Q3 2026 Q3 2025 Δ Thirty-nine weeks ended 9/26/2026 9/27/2025 Revenues $187,520 $167,003 12.3% Adjusted EBITDA $56,684 $50,700 11.8% Margin (Adj. EBITDA/Net Sales) 30.2% 30.4% (20) bps Canada Q3 2026 Q3 2025 Δ Thirty-nine weeks ended 9/26/2026 9/27/2025 Revenues $117,950 $107,027 10.2% Adjusted EBITDA $14,339 $11,441 25.3% Margin (Adj. EBITDA/Net Sales) 12.2% 10.7% 150 bps Consolidated Q3 2026 Q3 2025 Δ Thirty-nine weeks ended 9/26/2026 9/27/2025 Revenues $1,269,812 $1,187,085 7.0% Adjusted EBITDA $217,388 $217,780 (0.2)% Margin (Adj. EBITDA/Net Sales) 17.1% 18.3% (120) bps YTD Performance by Product Category Please see reconciliation of Adjusted EBITDA to Net Income in the Appendix of this presentation. Figures in Thousands of USD unless otherwise noted.
8 Hardware & Protective Robotics & Digital Canada Total Revenue Thirteen weeks ended September 26, 2026 Fastening and Hardware $278,183 $— $35,680 $313,863 Personal Protective 68,785 — 2,000 70,785 Keys and Key Fobs — 60,182 2,995 63,177 Engraving and Resharp — 9,661 2 9,663 Total Revenue $346,968 $69,843 $40,677 $457,488 Quarterly Revenue by Product Category Hardware & Protective Robotics & Digital Canada Total Revenue Thirteen weeks ended September 27, 2025 Fastening and Hardware $249,174 $— $33,264 $282,438 Personal Protective 79,948 — 1,380 81,328 Keys and Key Fobs — 48,733 2,595 51,328 Engraving and Resharp — 9,840 5 9,845 Total Revenue $329,122 $58,573 $37,244 $424,939 Figures in Thousands of USD unless otherwise noted.
9 Hardware & Protective Robotics & Digital Canada Total Revenue Thirty-nine weeks ended September 26, 2026 Fastening and Hardware $785,705 $— $104,936 $890,641 Personal Protective 178,637 — 4,769 183,406 Keys and Key Fobs — 159,576 8,226 167,802 Engraving and Resharp — 27,944 19 27,963 Total Revenue $964,342 $187,520 $117,950 $1,269,812 YTD Revenue by Product Category Hardware & Protective Robotics & Digital Canada Total Revenue Thirty-nine weeks ended September 27, 2025 Fastening and Hardware $703,288 $— $95,719 $799,007 Personal Protective 209,767 — 4,260 214,027 Keys and Key Fobs — 137,766 7,026 144,792 Engraving and Resharp — 29,237 22 29,259 Total Revenue $913,055 $167,003 $107,027 $1,187,085 Figures in Thousands of USD unless otherwise noted.
10 Total Net Leverage (Net Debt / TTM Adj. EBITDA) Capital Structure September 26, 2026 millions $ ABL Revolver ($308 million available) $9.0 Term Note $935.0 Finance Leases and Other Obligations $23.7 Total Debt $967.7 Cash $35.1 Net Debt $932.6 TTM Adjusted EBITDA $274.9 Net Debt / TTM Adjusted EBITDA 3.4x Please see reconciliation of Non-GAAP metrics Adjusted EBITDA and Net Debt in the Appendix of this presentation. 2.5x 2.4x 2.6x 2.4x 3.4x 09 /2 7/ 20 25 12 /2 7/ 20 25 03 /2 8/ 20 26 06 /2 7/ 20 26 09 /2 6/ 20 26 Capital Structure supports organic growth and acquisition opportunities Assuming Hillman owned Kanebridge for the TTM period, Net Debt / TTM Adjusted EBITDA would be ~3.1x1 Kanebridge TTM Adjusted EBITDA ~$29
11 2026 Full Year Guidance (in millions USD) Previous FY 2026 Guidance Range Updated FY 2026 Guidance Range Net Sales $1.670 to $1.720 billion $1.660 to $1.680 billion Adjusted EBITDA ~$285 million ~$285 million Free Cash Flow $105 to $115 million $105 to $115 million On November 2, 2026, Hillman provided the following updates to its 2026 FY Guidance. Please see reconciliation of Non-GAAP metrics in the Appendix of this presentation.
12 Key Takeaways Resilient Business; M&A Active; Playing to Win • Business has 60+ year track record of success; proven to be resilient through multiple economic cycles with great long-term partnerships with customers • Hillman products are utilized for repair, maintenance and remodel projects; products are generally low-cost and a very small percentage of a given project • 1,200-member sales and service team and direct-to-store fulfillment continue to provide competitive advantages and strengthen competitive moat - drives new business wins • Hillman continues "Dual Faucet" strategy to diversify its supply chain to optimize costs and value; working to mitigate higher costs Long Term Financial Objectives Please see reconciliation of Adjusted EBITDA to Net Income in the Appendix of this presentation. Figures in Thousands of USD unless otherwise noted.
13 Long Term Financial Targets Hillman outlined its path to $2.5 Billion of Net Sales at its Inaugural Investor Day, held on March 19, 2026 Targeting an 8%-12% revenue CAGR over the next 5 years driven by multiple levers
Appendix
15 Investment Highlights Significant runway for incremental growth: Organic + M&A Management team with proven operational and M&A expertise Strong financial profile with 60+ year track record Market and innovation leader across multiple categories Indispensable partner embedded with winning retailers Customers love us, trust us and rely on us Large, predictable, growing and resilient end markets
16 Hillman: Overview Who We Are *Management Estimates Adjusted EBITDA is a non-GAAP measure. Please see Appendix for a reconciliation of Adjusted EBITDA to Net Income ~18 billion Fasteners Sold ~214 million Pairs of Work Gloves Sold ~105 million Keys Duplicated ~111,000 SKUs Managed ~29,000 Direct Shipping Retail Locations ~31,500 Kiosks in Retail Locations #1 Position Across Core Categories* 7.3% Sales CAGR over past 20 years 62-Year Track record of success $1.6 billion 2025 Sales 10.2% CAGR 2018-2025 Adj. EBITDA Growth 17.7% 2025 Adj. EBITDA Margin 2025: By The Numbers • We are a leading North American provider of hardware products and solutions, including; ◦ Hardware and home improvement products ◦ Protective and job site gear – including work gloves and job site storage ◦ Robotic kiosk technologies (“RDS”): Key duplication, engraving & knife sharpening • Our differentiated service model provides direct to-store shipping, in-store service, and category management solutions • We have long-standing strategic partnerships with leading retailers across North America: ◦ Home Depot, Lowes, Walmart, Tractor Supply, and ACE Hardware • Founded in 1964; HQ in Cincinnati, Ohio
17 #1 in Segment Representative Top Customers #1 in Segment #1 in Segment Key, Auto and Fob Duplication Personalized Tags Knife Sharpening Fasteners & Specialty Gloves Builders Hardware & Metal Shapes Safety / PPE Construction Fasteners / Power Screws Work Gear Picture Hanging Source: Third party industry report and management estimates. Primary Product Categories Hardware Solutions Robotics & Digital SolutionsProtective Solutions Rope & Chain
18 Thirteen weeks ended September 26, 2026 September 27, 2025 Net income $6,291 $23,192 Income tax expense 3,755 8,020 Interest expense, net 14,338 14,692 Depreciation 22,308 20,100 Amortization 15,649 15,265 EBITDA $62,341 $81,269 Stock compensation expense 4,365 3,904 Restructuring and other (1) 1,469 749 Litigation expense (2) — 1,950 Transaction and integration expense (3) 8,610 87 Change in fair value of contingent consideration (137) 67 Refinancing costs (4) 13,505 — Adjusted EBITDA $90,153 $88,026 Adjusted EBITDA Reconciliation Footnotes: 1. Includes consulting and other costs associated with severance related to our distribution center relocations and corporate restructuring activities. 2. Litigation expense includes an accrual for the preliminary settlement of a California wage-hour class action / Private Attorneys General Act (PAGA) claim. 3. Transaction and integration expense includes professional fees and other costs related to acquisition activity, including the acquisition of Kanebridge Corporation in the third quarter of 2026, and Campbell Chain and Fittings and Delaney Hardware acquisitions in the second quarter of 2026, along with a $0.5 million gain, net of deferred taxes, on the Campbell acquisition. 4. In July of 2026 we entered into a new Term Loan B consisting of a $735 million senior secured Term Loan B and new $375 million senior secured asset based revolving credit facility. In August of 2026, we entered into Amendment No. 1 to provide for an additional $200 million of senior secured term loans. In the first quarter of 2025, we entered into a Repricing Amendment (2025 Repricing Amendment) on our existing Senior Term Loan due July 14, 2028
19 Thirty-nine weeks ended September 26, 2026 September 27, 2025 Net income $22,679 $38,707 Income tax expense 9,467 14,579 Interest expense, net 40,385 43,044 Depreciation 66,842 59,343 Amortization 46,148 45,937 EBITDA $185,521 $201,610 Stock compensation expense 11,727 10,739 Restructuring and other (1) 2,903 2,860 Litigation expense (2) — 1,950 Transaction and integration expense (3) 4,221 215 Change in fair value of contingent consideration (489) (500) Refinancing costs (4) 13,505 906 Adjusted EBITDA $217,388 $217,780 Adjusted EBITDA Reconciliation Footnotes: 1. Includes consulting and other costs associated with severance related to our distribution center relocations and corporate restructuring activities. 2. Litigation expense includes an accrual for the preliminary settlement of a California wage-hour class action / Private Attorneys General Act (PAGA) claim. 3. Transaction and integration expense includes professional fees and other costs related to acquisition activity, including the acquisition of Kanebridge Corporation in the third quarter of 2026, and Campbell Chain and Fittings and Delaney Hardware acquisitions in the second quarter of 2026, along with a $5.2 million gain, net of deferred taxes, on the Campbell acquisition. 4. In July of 2026 we entered into a new Term Loan B consisting of a $735 million senior secured Term Loan B and new $375 million senior secured asset based revolving credit facility. In August of 2026, we entered into Amendment No. 1 to provide for an additional $200.0 million of senior secured term loans. In the first quarter of 2025, we entered into a Repricing Amendment (2025 Repricing Amendment) on our existing Senior Term Loan due July 14, 2028.
20 Thirteen weeks ended September 26, 2026 September 27, 2025 Net Sales $457,488 $424,939 Cost of sales (exclusive of depreciation and amortization) 225,203 205,378 Gross margin exclusive of depreciation and amortization $232,285 $219,561 Gross margin exclusive of depreciation and amortization % 50.8 % 51.7 % Adjusting Items: — — Adjusted Gross Profit $232,285 $219,561 Adjusted Gross Margin % 50.8 % 51.7 % Thirty-nine weeks ended September 26, 2026 September 27, 2025 Net Sales $1,269,812 $1,187,085 Cost of sales (exclusive of depreciation and amortization) 660,861 604,456 Gross margin exclusive of depreciation and amortization $608,951 $582,629 Gross margin exclusive of depreciation and amortization % 48.0 % 49.1 % Adjusting Items: — — Adjusted Gross Profit $608,951 $582,629 Adjusted Gross Margin % 48.0 % 49.1 % Adjusted Gross Margin Reconciliation
21 Thirteen weeks ended September 26, 2026 September 27, 2025 Net sales $457,488 $424,939 Selling, general and administrative expenses 157,896 138,342 SG&A as a % of Net Sales 34.5 % 32.6 % SG&A Adjusting Items (1): Stock compensation expense 4,365 3,904 Restructuring 1,469 749 Litigation expense — 1,950 Acquisition and integration expense (2) 9,103 87 Adjusted SG&A $142,959 $131,652 Adjusted SG&A as a % of Net Sales 31.2 % 31.0 % Thirty-nine weeks ended September 26, 2026 September 27, 2025 Net sales $1,269,812 $1,187,085 Selling, general and administrative expenses 416,450 381,101 SG&A as a % of Net Sales 32.8 % 32.1 % SG&A Adjusting Items (1): Stock compensation expense 11,727 10,739 Restructuring 2,903 2,860 Litigation expense — 1,950 Acquisition and integration expense (2) 9,435 215 Adjusted SG&A $392,385 $365,337 Adjusted SG&A as a % of Net Sales 30.9 % 30.8 % Adjusted SG&A Expense Reconciliation 1. See adjusted EBITDA Reconciliation for details of adjusting items 2. Excludes the $0.5 million gain and the $5.2 million gain, net of deferred taxes, on the Campbell acquisition for the thirteen and thirty-nine weeks ended September 26, 2026, respectively.
22 As of September 26, 2026 December 27, 2025 Revolving loans $9,000 $36,000 Senior term loan 935,000 636,960 Finance leases and other obligations 23,718 20,090 Gross debt $967,718 $693,050 Less cash 35,078 27,276 Net debt $932,640 $665,774 Net Debt & Free Cash Flow Reconciliations Thirteen weeks ended September 26, 2026 September 27, 2025 Net cash provided by operating activities $69,884 $26,237 Capital expenditures (18,795) (17,172) Free cash flow $51,089 $9,065 Thirty-nine weeks ended Net cash provided by operating activities $138,347 $74,289 Capital expenditures (51,390) (55,347) Free cash flow $86,957 $18,942 Reconciliation of Net Debt Reconciliation of Free Cash Flow
23 Thirteen weeks ended September 26, 2026 HPS RDS Canada Operating income $25,943 $7,437 $4,509 Depreciation & amortization 23,544 13,185 1,228 Stock compensation expense 3,803 346 216 Restructuring and other 1,268 20 181 Transaction and integration expense 8,605 5 — Change in fair value of contingent consideration — (137) — Adjusted EBITDA $63,163 $20,856 $6,134 Thirteen weeks ended September 27, 2025 HPS RDS Canada Operating income $38,935 $5,626 $1,343 Depreciation & amortization 22,007 12,107 1,251 Stock compensation expense 3,010 405 489 Restructuring 24 12 713 Litigation expense 1,780 170 — Transaction and integration expense 84 3 — Change in fair value of contingent consideration — 67 — Adjusted EBITDA $65,840 $18,390 $3,796 Segment Adjusted EBITDA Reconciliations
24 Thirty-nine weeks ended September 26, 2026 HPS RDS Canada Operating income $60,286 $15,950 $9,800 Depreciation & amortization 69,109 40,196 3,685 Stock compensation expense 10,218 896 613 Restructuring and other 2,536 126 241 Transaction and integration expense 4,216 5 — Change in fair value of contingent consideration — (489) — Adjusted EBITDA $146,365 $56,684 $14,339 Thirty-nine weeks ended September 27, 2025 HPS RDS Canada Operating income $76,077 $14,991 $6,168 Depreciation & amortization 66,516 35,099 3,665 Stock compensation expense 8,929 856 954 Restructuring 2,129 77 654 Litigation expense 1,780 170 — Transaction and integration expense 208 7 — Change in fair value of contingent consideration — (500) — Adjusted EBITDA $155,639 $50,700 $11,441 Segment Adjusted EBITDA Reconciliations