Hillman Solutions (HLMN) Q3 2025 earnings summary

Executive summary

• Achieved record third quarter with net sales of $424.9 million and adjusted EBITDA of $88 million, the highest in company history, despite market volume headwinds and tariff volatility.

• Net income for Q3 2025 was $23.2 million ($0.12 per diluted share), up from $7.4 million ($0.04 per share) in Q3 2024.

• Maintained strong customer relationships and operational efficiency, positioning for continued growth into 2026.

• Demonstrated a 61-year track record of success, with a 7.4% sales CAGR over 20 years and 9.6% Adj. EBITDA CAGR from 2018-2024.

• Maintains long-term partnerships with major North American retailers and a diversified product portfolio across hardware, protective, and digital solutions.

Financial highlights

• Net sales for Q3 2025: $424.9 million, up 8% year-over-year.

• Adjusted EBITDA: $88 million, up 36% year-over-year; margin improved to 20.7%.

• Net income increased to $23.2 million ($0.12 per diluted share) from $7.4 million ($0.04 per share) in Q3 2024.

• Free cash flow for the quarter was $9.1 million, down from $39.6 million in Q3 2024.

• Liquidity available totaled $277 million, with net debt to adjusted EBITDA at 2.5x.

Outlook and guidance

• FY 2025 net sales guidance maintained at $1.535–$1.575 billion (4–7% growth over 2024).

• Adjusted EBITDA guidance raised to $270–$275 million (12.7–14% growth over 2024).

• Year-end leverage expected at 2.4x.

• Expect 2026 net sales growth in high single to low double digits, driven by rollover price and new business wins, assuming flat market volumes.

• 2026 adjusted EBITDA expected to grow low to mid single digits due to challenging margin comps.