Hillman Solutions
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Hillman Solutions (HLMN) investor relations material

Hillman Solutions Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary17 Feb, 2026

Executive summary

  • Achieved record 2025 net sales of $1.552 billion, up 5.4% year-over-year, and record adjusted EBITDA of $275.3 million, up 13.9% from 2024.

  • Returned to profitability with GAAP net income of $40.3 million in 2025, up from $17.3 million in 2024, and Q4 net income of $1.6 million.

  • Successfully navigated tariff impacts, maintained strong customer service and operational efficiency, and continued investment in growth.

  • Positioned for continued growth in 2026, focusing on new business wins, pro channel expansion, and strategic M&A.

  • Free cash flow for 2025 was $35.1 million, with net leverage improved to 2.4x from 2.8x a year ago.

Financial highlights

  • 2025 net sales increased by $80 million over 2024, driven by pricing, acquisitions, and new business wins.

  • Adjusted gross profit margin for 2025 rose 60 basis points to 48.7%; adjusted EBITDA margin reached 17.7%.

  • Adjusted diluted EPS for 2025 was $0.58, up from $0.49 in 2024; Q4 adjusted EPS was flat at $0.10.

  • Free cash flow for 2025 was $35.1 million, impacted by $65 million in tariffs and down from $98.1 million in 2024.

  • Net debt at year-end was $665.8 million, with a net debt/EBITDA ratio of 2.4x.

Outlook and guidance

  • 2026 net sales expected between $1.6–$1.7 billion, midpoint growth of 6.3% over 2025.

  • Adjusted EBITDA guidance for 2026 is $275–$285 million, midpoint growth of 1.7%.

  • Free cash flow projected at $100–$120 million, with 90%+ conversion of adjusted net income.

  • CapEx for 2026 expected at $70–$75 million; continued stock repurchases and strategic M&A planned.

  • Long-term annual growth targets: organic revenue +6%, adjusted EBITDA +10%; with acquisitions: revenue +10%, adjusted EBITDA +15%.

Reconcile 2025 FCF decline with 2026 FCF guidance
How do MinuteKey investments impact 2026 guidance?
Future net debt to EBITDA target?
Detail the Pro business expansion strategy
What drives 2026 gross margin normalization?
What fuels M&A pipeline confidence for 2026?
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Frequently asked questions

Hillman Solutions Corp. provides hardware solutions and home improvement products to retailers, contractors, and consumers. The company’s product portfolio includes fasteners, keys, key duplication systems, and other small hardware items. Hillman also offers merchandising services and technology-enabled solutions to support its retail partners. Its operations focus on simplifying home improvement and maintenance tasks for its customers. The company is headquartered in Cincinnati, Ohio, and its shares are listed on the NASDAQ.

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