Hillman Solutions (HLMN) Q3 2025 earnings summary

Executive summary

• Achieved record third quarter with net sales up 8% year-over-year to $424.9 million and adjusted EBITDA up 36% to $88 million, marking the highest in company history despite market volume headwinds and tariff volatility.

• Net income increased to $23.2 million ($0.12 per diluted share) from $7.4 million ($0.04 per share) in Q3 2024, with adjusted EPS rising to $0.22.

• Year-to-date consolidated revenues reached $1.19 billion (+5.7% YoY), with adjusted EBITDA of $217.8 million (18.3% margin).

• Maintained strong customer relationships, operational efficiency, and continued focus on long-term growth and shareholder value.

Financial highlights

• Net sales for Q3 2025: $424.9 million, up 8% year-over-year; adjusted EBITDA: $88 million, up 36% year-over-year; margin improved to 20.7%.

• Adjusted gross margin: 51.7%, up from 48.2% year-over-year; gross margin improved as cost of sales as a percentage of net sales decreased to 48.3%.

• Net income for Q3 2025: $23.2 million ($0.12 per diluted share); adjusted diluted EPS: $0.22.

• Free cash flow for Q3 2025: $9.1 million, down from $39.6 million in Q3 2024; net cash from operating activities for the nine months was $74.3 million.

• Liquidity available totaled $277 million, with net debt to adjusted EBITDA improved to 2.5x; gross debt at quarter end was $709.5 million.

Outlook and guidance

• Full-year 2025 net sales guidance reiterated at $1.535–$1.575 billion (4–7% growth over 2024); adjusted EBITDA guidance raised to $270–$275 million.

• Year-end leverage expected at 2.4x.

• Expect 2026 net sales growth in high single to low double digits, driven by rollover price and new business wins, assuming flat market volumes.

• 2026 adjusted EBITDA expected to grow low to mid single digits due to challenging margin comps.

• Management expects higher tariff expenses to impact cost of sales in Q4 2025 as inventory purchased before new tariffs is sold through.