Hillman Solutions Corp. 2026 Q2 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 27, 2026, and the twenty-six weeks ended on that date. Hillman Solutions Corp. operates three segments: Hardware and Protective Solutions, Robotics and Digital Solutions, and Canada. The company provides fasteners, hardware, personal protective equipment, and key duplication services to retail outlets in North America.
Key Financial Metrics
| Metric | 13 Weeks Ended June 27, 2026 | 26 Weeks Ended June 27, 2026 |
|---|---|---|
| Net Sales | $442.3 million | $812.3 million |
| Net Income | $21.1 million ($0.11/share) | $16.4 million ($0.08/share) |
| Adjusted EBITDA | $77.1 million | $127.2 million |
| Operating Cash Flow (26 weeks) | $68.5 million | |
| Cash and Equivalents | $35.8 million (as of June 27, 2026) | |
| Total Debt (Net) | $693.0 million (Gross); $678.1 million (Net of current portion) | |
| Working Capital | $422.9 million |
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 9.8% ($39.4 million) in Q2 and 6.6% ($50.2 million) year-to-date compared to the prior year. Growth was driven by new business wins, acquisitions (Campbell Chain and Fittings, Delaney Hardware), and pricing actions, partially offset by volume declines.
- Profitability: Net income rose 33.4% in Q2 ($21.1M vs $15.8M) due to higher sales and a $4.7 million non-taxable gain on the Campbell acquisition. Operating income increased 12.7% in Q2.
- Cost Pressures: Cost of sales as a percentage of net sales increased to 52.9% in Q2 (from 51.7% prior year) due to tariff costs and product cost inflation. SG&A expenses increased 8.3% in Q2, driven by variable selling costs in the Robotics segment and compensation increases.
- Acquisitions: Completed acquisitions of Campbell Chain and Fittings ($2.6M purchase price) and Delaney Hardware ($4.6M purchase price) in April 2026, contributing $13.7 million in sales during the quarter.
Outlook, Risks, and Unusual Items
- Tariff Environment: The U.S. Supreme Court invalidated IEEPA tariffs in February 2026. Hillman filed a lawsuit seeking refunds but notes that new tariffs instituted by the administration may offset these benefits. Management is implementing price increases and sourcing changes to mitigate costs.
- Subsequent Events: On July 22, 2026, the company refinanced its debt with a new $735 million Term Loan B and a $375 million ABL facility. On July 31, 2026, it agreed to acquire Kanebridge Corporation for approximately $315 million.
- Share Repurchases: The company repurchased $23.4 million of common stock during the first half of 2026 under a $100 million program authorized in July 2025.
- Capital Expenditures: Investing cash outflows included $32.6 million in capital expenditures, primarily for key duplication kiosks and merchandising racks.
Investor Verification Checklist
- Tariff Impact: Verify the net financial impact of the IEEPA tariff refund lawsuit versus new tariff implementations on future margins.
- Volume Trends: Assess the sustainability of revenue growth given the reported "high single digit" volume decreases in the Hardware segment and "low double digit" volume decreases in Robotics.
- Debt Refinancing: Review the terms of the new Term Loan B and ABL facility closed in July 2026 to understand future interest rate exposure and covenants.
- Acquisition Integration: Monitor the integration progress and financial contribution of the Kanebridge acquisition ($315M) and the smaller Q2 acquisitions.
- Inventory Management: Confirm that inventory levels remain optimized given the focus on balancing supply chain against tariff costs.