Q3 2026 (Thirteen weeks ended September 26, 2026)
Filed Nov 2, 2026Hillman Reports Third Quarter 2026 Results; Updates Full-Year Outlook Q3 2026 Net Sales increased 7.7% to a record $457.5 million Reiterates FY 2026 Adj. EBITDA and Free Cash Flow guidance; updates Net Sales outlook
Record net sales, higher Adjusted EBITDA, sharply higher operating cash flow and free cash flow were offset by lower GAAP operating income and net income, refinancing costs, and a materially higher debt balance following the Kanebridge acquisition and refinancing.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, thirteen weeks ended September 26, 2026GAAP | $457.5M | – | 7.7% |
| Cost of sales (exclusive of depreciation and amortization shown separately below), thirteen weeks ended September 26, 2026GAAP | $225.2M | – | – |
| Selling, warehouse, general and administrative expenses, thirteen weeks ended September 26, 2026GAAP | $157.9M | – | – |
| Depreciation, thirteen weeks ended September 26, 2026GAAP | $22.31M | – | – |
| Amortization, thirteen weeks ended September 26, 2026GAAP | $15.65M | – | – |
| Other income, net, thirteen weeks ended September 26, 2026GAAP | −$1.46M | – | – |
| Income from operations, thirteen weeks ended September 26, 2026GAAP | $37.89M | – | – |
| Interest expense, net, thirteen weeks ended September 26, 2026GAAP | $14.34M | – | – |
| Refinancing costs, thirteen weeks ended September 26, 2026GAAP | $13.51M | – | – |
| Income before income taxes, thirteen weeks ended September 26, 2026GAAP | $10.05M | – | – |
| Income tax expense, thirteen weeks ended September 26, 2026GAAP | $3.75M | – | – |
| Net income, thirteen weeks ended September 26, 2026GAAP | $6.29M | – | – |
| Basic income per share, thirteen weeks ended September 26, 2026GAAP | $ 0.03 | – | – |
| Diluted income per share, thirteen weeks ended September 26, 2026GAAP | $ 0.03 | – | – |
| Adjusted EBITDA, thirteen weeks ended September 26, 2026non-GAAP | $90.15M | – | – |
| Adjusted Diluted Earnings per Share, thirteen weeks ended September 26, 2026non-GAAP | $ 0.22 | – | – |
| Net cash provided by operating activities, thirteen weeks ended September 26, 2026GAAP | $69.88M | – | – |
| Capital expenditures, thirteen weeks ended September 26, 2026GAAP | −$18.80M | – | – |
| Free cash flow, thirteen weeks ended September 26, 2026non-GAAP | $51.09M | – | – |
| Net sales, thirty-nine weeks ended September 26, 2026GAAP | $1.27B | – | – |
| Income from operations, thirty-nine weeks ended September 26, 2026GAAP | $86.04M | – | – |
| Net income, thirty-nine weeks ended September 26, 2026GAAP | $22.68M | – | – |
| Diluted income per share, thirty-nine weeks ended September 26, 2026GAAP | $0.11 | – | – |
| Adjusted EBITDA, thirty-nine weeks ended September 26, 2026non-GAAP | $217.4M | – | – |
| Adjusted Diluted Earnings per Share, thirty-nine weeks ended September 26, 2026non-GAAP | $ 0.46 | – | – |
| Net cash provided by operating activities, thirty-nine weeks ended September 26, 2026GAAP | $138.3M | – | – |
| Capital expenditures, thirty-nine weeks ended September 26, 2026GAAP | −$51.39M | – | – |
| Free cash flow, thirty-nine weeks ended September 26, 2026non-GAAP | $86.96M | – | – |
| Gross debt at September 26, 2026other | $967.7M | – | – |
| Net debt at September 26, 2026non-GAAP | $932.6M | – | – |
| Net debt to trailing twelve month Adjusted EBITDA at quarter endnon-GAAP | 3.4x | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
FY 2026 outlook
- Revenue$1.660 to $1.680 billion
- NoteAdjusted EBITDA: ~$285 million
- NoteFree Cash Flow: $105 to $115 million
Capital returns
- Repurchased approximately 0.6 million shares of its common stock at an average price of $7.75 per share, which totaled $5.0 million.
- Repurchases of common stock, thirty-nine weeks ended September 26, 2026: (28,351) (dollars in thousands); thirty-nine weeks ended September 27, 2025: (3,165) (dollars in thousands).
What drove it
- Net sales increased 7.7% to a record $457.5 million in the third quarter.
- Management said Robotics and Digital Solutions was up 19.2%.
- Management cited channel relationships, sourcing agility and the field sales team as drivers of new business wins in Pro.
- Hillman completed the acquisition of Kanebridge, described as a leading master distributor of industrial fasteners.
- Third-quarter free cash flow was $51.1 million, compared to $9.1 million in the prior year quarter.
Concerns
- GAAP income from operations was 37,889 (dollars in thousands), compared with 45,904 (dollars in thousands) in the prior year quarter.
- GAAP net income was $ 6,291 (dollars in thousands), compared with $ 23,192 (dollars in thousands) in the prior year quarter.
- Refinancing costs were 13,505 (dollars in thousands) in the third quarter, compared with — in the prior year quarter.
- Gross debt was $967.7 million at September 26, 2026, compared to $693.1 million on December 27, 2025, and net debt to trailing twelve month Adjusted EBITDA was 3.4x compared to 2.4x.
- FY 2026 net sales guidance was updated to $1.660 to $1.680 billion from $1.670 to $1.720 billion, with management citing the macro environment.
What to watch
- Delivery against updated FY 2026 net sales guidance of $1.660 to $1.680 billion.
- Delivery against reaffirmed FY 2026 Adjusted EBITDA guidance of ~$285 million and Free Cash Flow guidance of $105 to $115 million.
- Kanebridge integration and its contribution to Hillman's industrial-market position.
- Debt, liquidity and net debt to trailing twelve month Adjusted EBITDA following the refinancing and acquisition.
- Whether Robotics and Digital Solutions sustains the 19.2% growth cited by management.
Balance sheet and cash flow
- Cash and cash equivalents at September 26, 2026: $ 35,078 (dollars in thousands); December 27, 2025: $ 27,276 (dollars in thousands).
- Liquidity available totaled $343.1 million, consisting of $308.0 million of available borrowing under the revolving credit facility and $35.1 million of cash and equivalents.
- Total assets at September 26, 2026: $ 2,669,880 (dollars in thousands); December 27, 2025: $ 2,356,194 (dollars in thousands).
- Total liabilities at September 26, 2026: $ 1,437,017 (dollars in thousands); December 27, 2025: $ 1,127,687 (dollars in thousands).
- Total stockholders' equity at September 26, 2026: 1,232,863 (dollars in thousands); December 27, 2025: 1,228,507 (dollars in thousands).
- Acquisition of business, net of cash received, thirty-nine weeks ended September 26, 2026: (314,503) (dollars in thousands); thirty-nine weeks ended September 27, 2025: —.
- Net cash used for investing activities, thirty-nine weeks ended September 26, 2026: (366,038) (dollars in thousands); thirty-nine weeks ended September 27, 2025: (55,501) (dollars in thousands).
- Net cash provided by financing activities, thirty-nine weeks ended September 26, 2026: 235,601 (dollars in thousands); net cash used for financing activities, thirty-nine weeks ended September 27, 2025: (25,585) (dollars in thousands).
- Net increase in cash and cash equivalents, thirty-nine weeks ended September 26, 2026: 7,802 (dollars in thousands); net decrease in cash and cash equivalents, thirty-nine weeks ended September 27, 2025: (6,779) (dollars in thousands).
Analysis
Hillman reported record third-quarter net sales of $457.5 million, up 7.7% from $424.9 million in the prior year quarter. Management identified continued execution in Pro, new business wins, and a 19.2% increase in Robotics and Digital Solutions as growth drivers. The release does not provide revenue for individual operating segments, so the contribution of Robotics and Digital Solutions to consolidated sales cannot be quantified from this filing.
The revenue gain did not translate into higher GAAP earnings. Income from operations declined to 37,889 (dollars in thousands) from 45,904 (dollars in thousands), while net income declined to $ 6,291 (dollars in thousands) from $ 23,192 (dollars in thousands). The quarter included 13,505 (dollars in thousands) of refinancing costs, compared with — in the prior-year quarter. Adjusted EBITDA increased to $ 90,153 (dollars in thousands) from $ 88,026 (dollars in thousands), and Adjusted Diluted Earnings per Share was unchanged at $ 0.22.
Cash generation improved materially. Net cash provided by operating activities was $ 69,884 (dollars in thousands), compared with $ 26,237 (dollars in thousands), and free cash flow was $ 51,089 (dollars in thousands), compared with $ 9,065 (dollars in thousands). For the thirty-nine weeks, operating cash flow was 138,347 (dollars in thousands), free cash flow was $ 86,957 (dollars in thousands), and capital expenditures were (51,390) (dollars in thousands), compared with (55,347) (dollars in thousands) in the prior-year period.
Capital allocation centered on acquisitions, refinancing and share repurchases. Hillman completed the Kanebridge acquisition and reported acquisition of business, net of cash received, of (314,503) (dollars in thousands) for the thirty-nine weeks. The company refinanced its credit facilities, including a new $735 million senior secured term loan B, a $375 million asset-based revolving credit facility and a $200 million add-on term loan B for Kanebridge. Gross debt reached $967.7 million and net debt reached $932.6 million, while net debt to trailing twelve month Adjusted EBITDA increased to 3.4x from 2.4x on December 27, 2025. The company also repurchased approximately 0.6 million shares for $5.0 million during the quarter.
Management narrowed FY 2026 net sales guidance to $1.660 to $1.680 billion from $1.670 to $1.720 billion, citing the macro environment. It reaffirmed Adjusted EBITDA guidance of ~$285 million and Free Cash Flow guidance of $105 to $115 million. The principal reported tension is therefore between sales and cash-flow progress and the lower GAAP profit, higher acquisition-related debt, and reduced sales outlook range.
Management, verbatim
The third quarter reflects the continued execution of Hillman’s Blueprint for Strategic Growth,
Jon Michael Adinolfi, CEO
We are winning in Pro, where our channel relationships, sourcing agility, and field sales team are driving new business wins. The Kanebridge acquisition, which is off to a great start, accelerates that momentum, establishing our position as a long-tail master distributor in the U.S. industrial market.
Jon Michael Adinolfi, CEO
Given our performance through the first nine months, we are reaffirming our full-year Adjusted EBITDA and free cash flow guidance while narrowing down our net sales range, given the macro environment.
Jon Michael Adinolfi, CEO
Not in the filing
stated, not guessed- Individual segment revenue, including Robotics and Digital Solutions revenue
- Individual segment profit or margin metrics
- Gross profit and gross margin
- Operating expense guidance
- Tax rate guidance
- GAAP net income, EPS or cash-flow guidance and reconciliations for forward-looking non-GAAP guidance
- Dividend information
- Prior-quarter comparisons for reported metrics
- Previous-release outlook section for formal actual-versus-prior-guidance comparisons
AlphAI 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.