Hillman Solutions reported record third-quarter sales, but net income fell sharply from a year earlier while adjusted earnings per share held steady. The hardware and related-products supplier also completed its acquisition of industrial-fastener distributor Kanebridge, refinanced its credit facilities and updated its full-year sales outlook.
The company reiterated its adjusted EBITDA and free-cash-flow guidance. The revised sales target and the numerical guidance ranges were not included in the announcement details available here.
Quarterly performance
- Net sales rose 7.7% to a record $457.5 million from $424.9 million a year earlier.
- Net income declined to $6.3 million, or 3 cents per diluted share, from $23.2 million, or 12 cents per share.
- Adjusted diluted earnings per share were unchanged at 22 cents. Adjusted EBITDA increased to $90.2 million from $88.0 million.
- Cash generation improved: cash from operations was $69.9 million, up from $26.2 million, while free cash flow rose to $51.1 million from $9.1 million.
- Hillman repurchased about 600,000 shares for $5.0 million, at an average price of $7.75 per share.
Acquisition, debt and liquidity
- Hillman completed its acquisition of Kanebridge, described as a leading master distributor of industrial fasteners.
- The company refinanced its existing credit facilities with a new $735 million senior secured term loan and a $375 million asset-based revolving credit facility. It also closed a $200 million add-on term loan to support the Kanebridge acquisition.
- At quarter-end, gross debt was $967.7 million, compared with $693.1 million at the end of 2025. Net debt was $932.6 million, up from $665.8 million.
- Hillman had $343.1 million of available liquidity: $308.0 million of unused borrowing capacity under its revolving facility and $35.1 million in cash and equivalents.
- Net debt was 3.4 times trailing 12-month adjusted EBITDA, compared with 2.4 times at the end of 2025.
What changes for investors
Hillman’s sales and adjusted EBITDA increased, and quarterly cash generation improved substantially. At the same time, net income was well below the prior-year quarter, and debt and leverage were higher than at year-end. The Kanebridge acquisition and its related financing add to the company’s business and debt load; Hillman maintained its adjusted EBITDA and free-cash-flow outlook while revising its sales outlook.