Hillman Solutions Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the third quarter of 2026 increased 7.7% year-over-year to $457.5 million, compared to $424.9 million in the prior year quarter.
• Net income totaled $6.3 million ($0.03 per diluted share) for the quarter, down from $23.2 million ($0.12 per diluted share) in the prior year quarter.
• Adjusted diluted EPS remained flat at $0.22 per share, compared to $0.22 in the prior year quarter.
• Adjusted EBITDA increased to $90.2 million for the quarter, up from $88.0 million in the prior year quarter.
• Net cash provided by operating activities increased to $69.9 million for the quarter, compared to $26.2 million in the prior year quarter.
• Free Cash Flow increased to $51.1 million for the quarter, up from $9.1 million in the prior year quarter.
• Gross debt increased to $967.7 million at September 26, 2026, compared to $693.1 million on December 27, 2025.
• Net debt was $932.6 million at quarter end, compared to $665.8 million on December 27, 2025.
• Net debt to trailing twelve-month Adjusted EBITDA was 3.4x at quarter end, compared to 2.4x on December 27, 2025.
• Available liquidity totaled $343.1 million, consisting of $308.0 million in available borrowing under the revolving credit facility and $35.1 million in cash and equivalents.

Guidance and Future Outlook:

• Management reaffirmed full-year 2026 Adjusted EBITDA guidance of approximately $285 million.
• Management reaffirmed full-year 2026 Free Cash Flow guidance of $105 million to $115 million.
• Management narrowed full-year 2026 Net Sales guidance to $1.660 billion to $1.680 billion, down from the previous range of $1.670 billion to $1.720 billion, citing the macro environment.
• Management indicated a well-positioned outlook to drive growth and create long-term value for shareholders in 2026 and beyond.

Business Segments and Product Lines:

• The Robotics and Digital Solutions segment, described as high-margin, grew 19.2% in the third quarter.
• The company reported winning business in the Pro channel, driven by channel relationships, sourcing agility, and the field sales team.
• Completed the acquisition of Kanebridge, a leading master distributor of industrial fasteners.
• The Kanebridge acquisition is described as off to a great start, accelerating momentum in the U.S. industrial market and establishing a position as a long-tail master distributor.

Market and Competitive Landscape:

• The company differentiates itself through a dedicated field sales team of over 1,200 associates, direct-to-store distribution capabilities, and global sourcing expertise.
• The company serves retail, pro distribution, and industrial customers with a portfolio of over 150,000 SKUs.
• Management noted the highly competitive nature of the markets served as a factor in forward-looking statements.

Risks and Challenges:

• Potential risks include unfavorable economic conditions affecting home renovation or construction spending, inflation, recessions, and financial market instability.
• Risks include increased supply chain costs related to tariffs, raw materials, sourcing, transportation, and energy.
• Other risks include the ability to innovate, seasonality, large customer concentration, employee recruitment and retention, legal proceedings, currency exchange rate fluctuations, and regulatory changes.

Management Commentary and Tone:

• CEO Jon Michael Adinolfi stated the third quarter reflects continued execution of the "Blueprint for Strategic Growth," delivering net sales growth and strong free cash flow generation.
• Management expressed confidence in the flexibility to invest in attractive opportunities, specifically citing the Robotics and Digital Solutions segment and accretive acquisitions.
• Management highlighted success in the Pro channel and the strategic value of the Kanebridge acquisition in establishing a long-tail master distributor position.

Other Key Points:

• The company repurchased approximately 0.6 million shares of common stock in the quarter at an average price of $7.75 per share, totaling $5.0 million.
• Successfully refinanced existing credit facilities, closing a new $735 million senior secured term loan B and a $375 million asset-based revolving credit facility.
• Closed a $200 million add-on term loan B specifically for the Kanebridge acquisition.
• The company hosted a conference call and webcast presentation on November 3, 2026, featuring CEO Jon Michael Adinolfi and CFO Rocky Kraft.
• The company filed Form 10-Q and a quarterly presentation with the SEC and its Investor Relations website.