Hillman Solutions (HLMN) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales rose 2.6% year-over-year to $359.3 million, driven by the Intex DIY acquisition, new business wins, and growth in Protective and Robotics segments, partially offset by a decline in Canada.

• Net loss narrowed to $(0.3) million, or $(0.00) per diluted share, compared to $(1.5) million, or $(0.01) per share, in Q1 2024, reflecting improved operating performance and lower interest costs.

• Adjusted EBITDA increased to $54.5 million (15.2% margin), up from $52.3 million (14.9% margin) in Q1 2024.

• Supply chain diversification advanced, with China exposure reduced to 33% and a target of 20% by year-end.

• Full-year 2025 net sales and adjusted EBITDA guidance reiterated; free cash flow guidance withdrawn due to tariff uncertainties.

Financial highlights

• Hardware and Protective Solutions net sales rose 5.6% to $274.4 million, with growth from the Intex acquisition and new business.

• Robotics and Digital Solutions net sales increased 1.9% to $56.5 million, mainly due to price increases.

• Canada segment net sales fell 18.7% to $28.4 million, impacted by lower volume and unfavorable currency exchange.

• Adjusted gross margin was 46.9%, down from 47.6% a year ago, impacted by mix from recent acquisitions.

• Free cash flow was negative $21.3 million, reflecting inventory build and capital investments.

Outlook and guidance

• Full-year 2025 net sales guidance reiterated at $1.495–$1.575 billion (midpoint $1.535 billion, 4% growth).

• Adjusted EBITDA guidance held at $255–$275 million (midpoint $265 million, 10% growth).

• Free cash flow guidance withdrawn due to tariff timing uncertainties.

• Targeting year-end net debt/EBITDA leverage around 2.5x.

• Guidance assumes tariff-related price increases offset by volume declines, with market volumes expected down 17% in H2.