Hillman Solutions (HLMN) investor relations material

Executive summary

• Q3 net sales reached a record $457.5 million, up 7.7% YoY; Adjusted EBITDA rose to $90.2 million from $88.0 million, while GAAP net income fell to $6.3 million from $23.2 million.

• Growth reflected new business wins and acquisitions, partly offset by weak core volumes and macro headwinds; Kanebridge closed ahead of schedule and was performing ahead of expectations.

• FY2026 Adjusted EBITDA and Free Cash Flow guidance was reaffirmed as net sales guidance narrowed; the strategic plan targets 8%-12% annual sales growth and $2.5 billion in sales by 2030.

Financial highlights

• Q3 diluted EPS was $0.03 versus $0.12; Adjusted diluted EPS was $0.22, unchanged YoY. Operating income was $37.9 million versus $45.9 million.

• Q3 operating cash flow was $69.9 million versus $26.2 million; Free Cash Flow was $51.1 million versus $9.1 million.

• 9M net sales rose 7.0% to $1.270 billion; net income was $22.7 million versus $38.7 million and Adjusted EBITDA was $217.4 million versus $217.8 million.

• 9M operating cash flow was $138.3 million versus $74.3 million; Free Cash Flow was $87.0 million versus $18.9 million.

• Q3 Adjusted gross margin was 50.8% versus 51.7%; Adjusted EBITDA margin was 19.7% versus 20.7%.

Outlook and guidance

• FY2026 net sales guidance narrowed to $1.660-$1.680 billion from $1.670-$1.720 billion; the $1.670 billion midpoint represents nearly 8% growth, with market volumes improving less than expected.

• FY2026 Adjusted EBITDA guidance remains ~$285 million; Free Cash Flow is forecast at $105-$115 million and CapEx at $70-$75 million.

• 2027 growth is expected at 8%-12%, including 3%-4% from M&A anniversaries; management expects markets to remain a headwind and does not assume macro improvement.

• 2027 new business wins are expected to contribute at least 4% of growth; RDS is expected to grow above flat and likely at a double-digit rate.