Hillman Narrows 2026 Sales Outlook After Record Quarter

The Tip Desk · November 3, 2026 · 2 min read

Third-quarter net sales reached a record $457.5 million as the company closed Kanebridge and reiterated about $285 million of full-year adjusted EBITDA.

Hillman Solutions Corp. (HLMN) reported record third-quarter net sales of $457.5 million for the thirteen weeks ended September 26, 2026, up 7.7% from $424.9 million a year earlier, a slower pace than the 9.8% increase to $442.3 million in the prior quarter.

The hardware and related-products provider completed the Kanebridge acquisition, a master distributor of industrial fasteners, and closed a $200 million add-on term loan B to fund the deal. Gross debt rose to $967.7 million from $693.1 million at December 27, 2025. Net debt to trailing-twelve-month adjusted EBITDA was 3.4x at quarter end, compared with 2.4x at year-end.

GAAP net income fell to $6.3 million, or $0.03 a share, from $23.2 million, or $0.12 a share, a year earlier, after $13.5 million of refinancing costs and higher transaction and integration expense. Adjusted diluted EPS held at $0.22 a share, matching the year-ago quarter after $0.17 a share in the second quarter.

Adjusted EBITDA increased to $90.2 million from $88.0 million a year earlier. Adjusted EBITDA margin compressed to 19.7% from 20.7%. Adjusted gross margin was 50.8%, down from 51.7%.

Hardware and Protective Solutions sales increased 5.4%. Robotics and Digital Solutions increased 19.2%. Canada increased 9.2%. Chief Executive Officer Jon Michael Adinolfi said Robotics and Digital Solutions “had a great quarter” and that the company is winning in Pro distribution, with Kanebridge accelerating that momentum as a long-tail master distributor in the U.S. industrial market.

Free cash flow increased to $51.1 million from $9.1 million a year earlier, after $70.2 million in the second quarter. Net cash provided by operating activities was $69.9 million. The company repurchased about 0.6 million shares at an average $7.75 a share, totaling $5.0 million. Liquidity available was $343.1 million, including $308.0 million of revolving capacity and $35.1 million of cash.

In July the company refinanced existing credit facilities with a $735 million senior secured term loan B and a $375 million asset-based revolving credit facility. The August add-on term loan funded Kanebridge.

Based on year-to-date performance, management narrowed full-year 2026 net sales guidance to $1.660 billion to $1.680 billion from $1.670 billion to $1.720 billion. It reiterated adjusted EBITDA of about $285 million and free cash flow of $105 million to $115 million. Adinolfi said the company is reaffirming those ranges while narrowing the sales outlook “given the macro environment.”