Second Quarter 2026 (Thirteen weeks ended June 27, 2026)
Filed Aug 4, 2026Hillman Reports Second Quarter 2026 Results; Increases Net Sales and Adjusted EBITDA Outlook
Net sales increased 9.8%, GAAP net income increased, operating cash flow and free cash flow rose substantially, and management raised FY 2026 net sales and Adjusted EBITDA outlook. Adjusted EBITDA rose modestly and adjusted diluted EPS was unchanged year over year.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| FY 2026 Net Sales | $1.630 to $1.730 billion | $442.3 million | n/a |
| FY 2026 Adjusted EBITDA | $275 to $285 million | $77.1 million | n/a |
| FY 2026 Free Cash Flow | $100 to $120 million | $70.2 million | n/a |
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, thirteen weeks ended June 27, 2026GAAP | $442,251 | – | increased 9.8% |
| Cost of sales, thirteen weeks ended June 27, 2026GAAP | 234,162 | – | – |
| Selling, warehouse, general and administrative expenses, thirteen weeks ended June 27, 2026GAAP | 133,983 | – | – |
| Depreciation, thirteen weeks ended June 27, 2026GAAP | 22,535 | – | – |
| Amortization, thirteen weeks ended June 27, 2026GAAP | 15,223 | – | – |
| Other income, net, thirteen weeks ended June 27, 2026GAAP | (4,585) | – | – |
| Income from operations, thirteen weeks ended June 27, 2026GAAP | 40,933 | – | – |
| Interest expense, net, thirteen weeks ended June 27, 2026GAAP | 13,042 | – | – |
| Income before income taxes, thirteen weeks ended June 27, 2026GAAP | 27,891 | – | – |
| Income tax expense, thirteen weeks ended June 27, 2026GAAP | 6,771 | – | – |
| Net income, thirteen weeks ended June 27, 2026GAAP | $21,120 | – | increased to $21.1 million |
| Basic and diluted income per share, thirteen weeks ended June 27, 2026GAAP | $0.11 | – | – |
| Diluted income per share, thirteen weeks ended June 27, 2026GAAP | $0.11 | – | – |
| Weighted average diluted shares outstanding, thirteen weeks ended June 27, 2026GAAP | 196,891 | – | – |
| Adjusted EBITDA, thirteen weeks ended June 27, 2026non-GAAP | $77,145 | – | increased to $77.1 million |
| Adjusted net income, thirteen weeks ended June 27, 2026non-GAAP | $33,696 | – | – |
| Adjusted Diluted Earnings per Share, thirteen weeks ended June 27, 2026non-GAAP | $0.17 | – | unchanged from the prior year quarter |
| Net cash provided by operating activities, thirteen weeks ended June 27, 2026GAAP | $87,996 | – | increased to $68.5 million |
| Capital expenditures, thirteen weeks ended June 27, 2026GAAP | $(17,780) | – | – |
| Free cash flow, thirteen weeks ended June 27, 2026non-GAAP | $70,216 | – | increased to $70.2 million |
| Net sales, twenty-six weeks ended June 27, 2026GAAP | $812,324 | – | – |
| Income from operations, twenty-six weeks ended June 27, 2026GAAP | 48,147 | – | – |
| Net income, twenty-six weeks ended June 27, 2026GAAP | $16,388 | – | – |
| Diluted income per share, twenty-six weeks ended June 27, 2026GAAP | $0.08 | – | – |
| Adjusted EBITDA, twenty-six weeks ended June 27, 2026non-GAAP | $127,235 | – | – |
| Adjusted Diluted Earnings per Share, twenty-six weeks ended June 27, 2026non-GAAP | $0.24 | – | – |
| Net cash provided by operating activities, twenty-six weeks ended June 27, 2026GAAP | $68,463 | – | – |
| Capital expenditures, twenty-six weeks ended June 27, 2026GAAP | $(32,595) | – | – |
| Free cash flow, twenty-six weeks ended June 27, 2026non-GAAP | $35,868 | – | – |
FY 2026 Guidance - Updated outlook
- Revenue$1.670 to $1.720 billion
- NoteAdjusted EBITDA (non-GAAP): ~$285 million
- NoteFree Cash Flow (non-GAAP): $105 to $115 million
- NoteGuidance assumes the Kanebridge acquisition closes around the start of Q4 2026.
Capital returns
- Repurchased approximately 1.7 million shares of its common stock at an average price of $7.62 per share, which totaled $13.3 million.
- Repurchases of common stock, twenty-six weeks ended June 27, 2026: $(23,400) (dollars in thousands).
What drove it
- Management cited consistent demand for hardware products.
- Management cited healthy new business wins, including in Pro distribution.
- Management cited low-double digit growth in Robotics and Digital Solutions due to the MinuteKey 3.5 rollout.
- The Adjusted EBITDA reconciliation includes a $4.7 million gain, net of deferred taxes, on the Campbell acquisition.
- Management expects contribution from the Kanebridge acquisition, for which it entered a definitive agreement to acquire Kanebridge for $315 million, with closing expected around the start of Q4 2026.
Concerns
- Adjusted diluted EPS was unchanged from the prior year quarter at $0.17 per diluted share.
- Adjusted EBITDA for the twenty-six weeks ended June 27, 2026 was $127,235, compared to $129,754 in the prior-year period.
- Income from operations for the twenty-six weeks ended June 27, 2026 was 48,147, compared to 51,332 in the prior-year period.
- The Kanebridge transaction may not be consummated on the terms described, or at all, and is subject to closing conditions and regulatory approvals.
- The filing identifies risks including unfavorable economic conditions, supply-chain costs including tariffs, customer concentration, seasonality, competition, and integration risks.
What to watch
- Closing of the Kanebridge acquisition around the start of Q4 2026 and its expected contribution to FY 2026 guidance.
- Delivery against updated FY 2026 net sales guidance of $1.670 to $1.720 billion.
- Delivery against updated FY 2026 Adjusted EBITDA guidance of ~$285 million.
- Delivery against reiterated FY 2026 free cash flow guidance midpoint within the $105 to $115 million range.
- Demand for hardware products, Pro distribution new business wins, and the MinuteKey 3.5 rollout in Robotics and Digital Solutions.
- Net debt, liquidity, and leverage following the refinancing and planned Kanebridge acquisition.
Balance sheet and cash flow
- Cash and cash equivalents at June 27, 2026: $35,839 (dollars in thousands), compared to $27,276 at December 27, 2025.
- Gross debt at June 27, 2026: $701.3 million, compared to $693.1 million at December 27, 2025.
- Net debt at June 27, 2026: $665.4 million, compared to $665.8 million at December 27, 2025.
- Liquidity available totaled $331.3 million, consisting of $295.5 million of available borrowing under the revolving credit facility and $35.8 million of cash and equivalents.
- Net debt to trailing twelve month Adjusted EBITDA was 2.4x at quarter end, unchanged from 2.4x on December 27, 2025.
- Total assets at June 27, 2026: $2,376,178 (dollars in thousands), compared to $2,356,194 at December 27, 2025.
- Total liabilities at June 27, 2026: $1,150,971 (dollars in thousands), compared to $1,127,687 at December 27, 2025.
- Total stockholders' equity at June 27, 2026: $1,225,207 (dollars in thousands), compared to $1,228,507 at December 27, 2025.
- Subsequent to quarter end, the Company closed refinancing of its existing credit facilities, consisting of a new $735 million senior secured Term Loan B and a $375 million asset-based revolving credit facility.
Analysis
Hillman reported second-quarter net sales of $442,251, up 9.8% from $402,803 in the prior-year quarter. Management attributed the growth to consistent hardware demand, new business wins including in Pro distribution, and low-double digit growth in Robotics and Digital Solutions associated with the MinuteKey 3.5 rollout. The filing does not provide revenue by operating segment, so the relative contribution of these businesses is not quantified.
GAAP net income increased to $21,120 from $15,832, while income from operations increased to 40,933 from 36,317. Adjusted EBITDA increased to $77,145 from $75,228. Adjusted diluted EPS was $0.17, unchanged from $0.17 in the prior-year quarter. The quarter's Adjusted EBITDA reconciliation includes a $4.7 million gain, net of deferred taxes, on the Campbell acquisition, while transaction and integration expense was $(4,481).
Cash generation strengthened in the quarter. Net cash provided by operating activities was $87,996, compared with $48,707, and free cash flow was $70,216, compared with $31,190. Hillman repurchased approximately 1.7 million shares at an average price of $7.62 per share, totaling $13.3 million. At June 27, 2026, cash and cash equivalents were $35,839, gross debt was $701.3 million, net debt was $665.4 million, and net debt to trailing twelve month Adjusted EBITDA was 2.4x.
For the first twenty-six weeks, sales were $812,324 versus $762,146, but income from operations was 48,147 versus 51,332 and Adjusted EBITDA was $127,235 versus $129,754. Management raised FY 2026 net sales guidance to $1.670 to $1.720 billion and set Adjusted EBITDA guidance at ~$285 million. Free cash flow guidance is $105 to $115 million. The outlook assumes the Kanebridge acquisition closes around the start of Q4 2026.
Capital allocation and the balance sheet are central to the second-half setup. Subsequent to quarter end, Hillman refinanced its facilities with a new $735 million senior secured Term Loan B and a $375 million asset-based revolving credit facility. It also agreed to acquire Kanebridge for $315 million. The transaction expands Hillman's industrial master distribution presence in the U.S., but the filing states that completion is subject to approvals and other closing conditions and that anticipated benefits may not be fully realized or may take longer to realize than expected.
Management, verbatim
Hillman delivered a strong second quarter, with robust free cash flow and top line growth of 10%, which is in line with our long-term growth targets.
Jon Michael Adinolfi, President and CEO of Hillman
Consistent demand for our hardware products, healthy new business wins - including in Pro distribution - and low-double digit growth in our Robotics and Digital Solutions business due to our MinuteKey 3.5 rollout, drove healthy growth during the quarter.
Jon Michael Adinolfi, President and CEO of Hillman
Given our continued execution and the expected contribution from the Kanebridge acquisition, we are raising the midpoint of full-year Net Sales guidance and our Adjusted EBITDA expectations, while reiterating our free cash flow guidance midpoint.
Jon Michael Adinolfi, President and CEO of Hillman
Not in the filing
stated, not guessed- Revenue by operating segment was not reported.
- Segment profit or segment margin was not reported.
- Gross profit and gross margin were not reported.
- A GAAP operating-expense guidance figure was not reported.
- A tax-rate guidance figure was not reported.
- Quarter-over-quarter comparisons were not reported.
- A dividend declaration or dividend amount was not reported.
- A directly comparable GAAP reconciliation for forward-looking Adjusted EBITDA and free cash flow guidance was not provided.
- A prior-release outlook section was not separately provided; the filing includes prior FY 2026 guidance in its updated guidance table, but annual guidance cannot be evaluated against a single-quarter actual result.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.