Hillman Solutions (HLMN) Investor presentation summary

Market leadership and growth strategy

• Holds #1 position in primary fastening and hardware categories, operating in an $18B+ market with strong secular tailwinds.

• Over 90% of revenue comes from owned brands, with a focus on innovation and category leadership.

• Multi-lane growth strategy targets both organic expansion and bolt-on acquisitions, especially in Pro and industrial channels.

• Expanding from DIY dominance to a comprehensive hardware solution for professional channels, with recent acquisitions supporting this shift.

• Targeting 8–12% revenue CAGR over five years, aiming for $2.5B in net sales by 2030.

Operational excellence and supply chain

• Manages over 111,000 SKUs and serves as a one-stop solution for retailers, with a 99% customer retention rate for core programs.

• Direct-to-store distribution and 27 strategically located centers enable 97% of US customers to be reached within two days.

• Dual Faucet global sourcing model optimizes landed cost, reducing China exposure and increasing sourcing flexibility.

• Category management uses data-driven, SKU-level reporting to optimize inventory and consumer trends.

Financial performance and targets

• 2025 revenue reached $1.55B with adjusted EBITDA of $275M and a margin of 17.7%.

• Net leverage reduced to 2.4x, with over $250M net debt reduction since 2021 and strong free cash flow conversion above 100%.

• 2026 guidance projects $1.63B–$1.73B revenue, $275M–$285M adjusted EBITDA, and $100M–$120M free cash flow.

• ROIC improved to 13.7% in 2025, with a high-teens target over the next five years.