Hillman Solutions (HLMN) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 increased 9.8% year-over-year to $442.3 million, with net income rising to $21.1 million ($0.11 per diluted share) from $15.8 million ($0.08 per share) in Q2 2025.

• Adjusted EBITDA for Q2 2026 was $77.1 million, up from $75.2 million in the prior year, though margin declined to 17.4% from 18.7%.

• Free cash flow for Q2 2026 was $70.2 million, more than doubling year-over-year.

• Major acquisitions included Campbell Chain & Fittings, Delaney Hardware, and a definitive agreement to acquire Kanebridge Corporation for $315 million, expected to close at the start of Q4 2026.

• Refinanced credit facilities post-quarter with a new $735 million Term Loan B (maturing 2033) and $375 million ABL revolver (maturing 2031), enhancing liquidity and extending maturities.

Financial highlights

• Q2 2026 net sales: $442.3 million, up 9.8% year-over-year.

• Adjusted EBITDA: $77.1 million, up from $75.2 million year-over-year; margin at 17.4%, down 130 bps year-over-year.

• Adjusted gross margin: 47.1%, down from 48.3% year-over-year.

• Free cash flow: $70.2 million for the quarter, up from $31.2 million year-over-year.

• Net debt at quarter end: $665.4 million; net debt/EBITDA at 2.4x.

Outlook and guidance

• Full-year 2026 net sales guidance raised to $1.67–$1.72 billion (midpoint $1.695 billion, 9% growth year-over-year).

• Full-year adjusted EBITDA expected at ~$285 million, up from prior midpoint.

• Free cash flow guidance narrowed to $105–$115 million (midpoint $110 million).

• Guidance assumes Kanebridge acquisition closes at the start of Q4 2026, expected to add $15 million in net sales and $5 million in adjusted EBITDA to FY 2026.

• Management expects continued cost pressures from tariffs and inflation, with mitigation strategies underway.