Hillman Solutions (HLMN) Investor Day 2026 summary

Vision and strategy

• Outlined a five-year plan to grow revenue from $1.6 billion to $2.5 billion, focusing on expanding both core and pro markets, with disciplined capital allocation and a strong emphasis on ROIC as a key performance metric.

• Targeting an expanded total addressable market (TAM) from $6.5 billion to $18 billion by leveraging opportunities in retail, pro distribution, and industrial MRO.

• Strategy centers on owning and expanding the core business, winning in the pro segment, and driving growth through both organic initiatives and M&A, including innovation in adjacent categories.

• Leadership team has been strengthened with new roles and hires to support pro and LBM channels, reflecting a commitment to execution and value creation.

• Focused on three strategic pillars: Own the Core, Expand Categories, and Win the Pro, all underpinned by disciplined capital allocation and ROIC focus.

Financial performance and guidance

• Achieved over 600 basis points of gross margin expansion and 300 basis points of EBITDA improvement over the past five years, with net debt reduced by over $250 million.

• Five-year financial objectives include 8–12% revenue CAGR, low double-digit EBITDA growth, high-teens ROIC, and maintaining net leverage below 2.5x.

• Free cash flow conversion expected to remain at or above 100%, supporting ongoing investments and share buybacks.

• Doubling new business wins target from 2%+ to 4%+ annually, driven by increased focus on pro and business development.

• Margin expansion driven by operational efficiencies, supply chain optimization, and category mix.

Business development and market expansion

• Core business is built on deep customer relationships, broad product portfolio (over 111,000 SKUs), and a unique direct-to-store distribution model.

• Expanding presence in Pro channels through retail partners, specialty distribution, and lumber/building materials, with a focus on bulk fastener and hardware sales.

• Scaling the Power Pro product line to double revenue to $200M by 2030 through deeper Pro channel penetration.

• Specialty distribution and industrial MRO channels are targeted for both organic and inorganic growth, with a focus on high-SKU complexity and tailored solutions.

• M&A pipeline is robust, with recent successes like Koch Rope and Chain demonstrating the ability to drive top-line growth and margin expansion.