Hillman Solutions (HLMN) Q4 2025 earnings summary

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%.