Q1 2026 Hillman Solutions Corp Earnings Call Transcript
Key Points
- Hillman Solutions Corp (HLMN) reported a 3% increase in net sales for the first quarter of 2026, driven by new business wins.
- The company successfully closed two acquisitions, Campbell Chain & Fittings and Delaney Hardware, which are expected to contribute an additional $30 million in net sales for 2026.
- Hillman Solutions Corp (HLMN) raised its full-year net sales guidance to between $1.63 billion and $1.73 billion, reflecting an 8% growth over the previous year.
- The Robotics and Digital Solutions segment showed strong performance with a 6% increase in net sales and an 11.4% increase in adjusted EBITDA.
- The Canadian business saw a significant 15.1% increase in net sales, driven by new business wins in specialty fasteners and builder's hardware.
- Adjusted EBITDA for the first quarter decreased by 8% to $50.1 million, impacted by high-cost inventory and soft volume.
- The Protective Solutions segment experienced a 17% decline due to decreased promotional activity and destocking.
- Gross margin decreased by 130 basis points to 45.6% compared to the prior year quarter, affected by tariff-related costs.
- The company faced challenges with tariffs, which have resulted in a neutral net impact despite some tariffs being removed.
- Free cash flow was negative $34.3 million for the quarter, attributed to increased working capital in preparation for the spring and summer selling seasons.
(video playing)
Good morning, and welcome to the first-quarter 2026 results presentation for Hillman Solutions Corporation. My name is Carmen, and I will be your conference call operator today. Before we begin, I would like to remind our listeners that today's presentation is being recorded and simultaneously webcast.
The company's earnings release, presentation and 10-Q were issued this morning. These documents and a replay of today's presentation can be accessed on Hillman's Investors Relations website at ir.hillmangroup.com.
I would now like to turn the call over to Michael Koehler with Hillman. Please proceed.
Thank you, operator. Good morning, everyone, and thank you for joining us for Hillman's first-quarter 2026 results presentation. I am Michael Koehler, Vice President of Corporate Development, Investor Relations and Treasury.
Joining me on today's call are Hillman's President and Chief Executive Officer, Jon Michael Adinolfi, or JMA, as we call
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