Financial Data and Key Metrics Changes - Net sales for Q1 2025 totaled $359.3 million, an increase of 2.6% compared to Q1 2024, driven by the Intex acquisition and new business [16][21] - Adjusted EBITDA increased by 4.2% to $54.5 million, with adjusted EBITDA margins improving by 30 basis points to 15.2% [17][22] - Adjusted gross margins decreased to 46.9%, down from 47.6% in the prior year [17][22] Business Line Data and Key Metrics Changes - Hardware and Protective Solutions (HPS) segment net sales increased by 5.6%, with adjusted EBITDA rising by 15.8% to $37.4 million [18] - Robotics and Digital Solutions (RDS) net sales were up 1.9%, with adjusted gross margins and adjusted EBITDA margins slightly down [19] - Canadian business net sales decreased by 18.7% due to a 12% decline in existing home sales and economic uncertainty [20] Market Data and Key Metrics Changes - Approximately one-third of products are sourced from China, with plans to reduce this to about 20% by year-end 2025 [7][14] - The company anticipates a 17% decline in market volumes during the second half of 2025, which is considered a conservative estimate [10][46] Company Strategy and Development Direction - The company is implementing a dual faucet strategy to diversify its supply chain and reduce reliance on Chinese suppliers [14] - Focus on maintaining strong partnerships with customers and suppliers to navigate tariff impacts and optimize sourcing [11][32] - The company aims to manage through current challenges and believes it will emerge stronger [15][31] Management's Comments on Operating Environment and Future Outlook - Management reiterated full-year 2025 net sales and adjusted EBITDA guidance, citing ongoing monitoring of tariffs and economic conditions [6][25] - The company is confident in its ability to manage through tariff-related challenges and maintain service levels [62] - Future growth opportunities are anticipated as the home improvement market rebounds [65] Other Important Information - The estimated annualized impact of new tariffs is approximately $250 million, which the company plans to offset through price increases [7][26] - Free cash flow guidance has been withdrawn due to uncertainties surrounding tariffs [28] Q&A Session Summary Question: Impact of tariffs on RDS margins - Management acknowledged pressure on RDS margins due to the rollout and expects margins to improve to 30% EBITDA rate and 70% gross margins for the rest of the year [38] Question: Performance of Personal Protective business - No material pull forwards were noted, and promotional activity was strong, leading to better-than-expected performance [39] Question: Volume assumptions for the second half of the year - Initial guidance assumed a 1% decline in market volumes, but the current estimate is a conservative 17% decline [46] Question: Future sourcing strategy - The company is targeting a reduction in Chinese sourcing to 20% and is exploring opportunities in Southeast Asia and India [49] Question: Timing of price increases - Price increases are expected to be implemented by July 1, with a dollar-for-dollar approach to tariffs [54][56] Question: Comparison to COVID supply chain issues - Current supply chain performance is better than during COVID, with no significant disruptions reported [62] Question: M&A activity in the current environment - The M&A pipeline remains strong, but uncertainty around tariffs is impacting valuations [88]

Q1 2025 - April 29, 2025 Forward Looking Statements This presentation contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements. All forward-looking statements are made in good faith by ...

Company Performance - Hillman Solutions Corp. reported quarterly earnings of $0.10 per share, matching the Zacks Consensus Estimate and remaining unchanged from the previous year [1] - The company posted revenues of $359.34 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 0.22% and up from $350.31 million a year ago [2] - Over the last four quarters, Hillman has surpassed consensus revenue estimates two times [2] Stock Performance - Hillman Solutions Corp. shares have declined approximately 22.3% since the beginning of the year, compared to a 6% decline in the S&P 500 [3] - The current Zacks Rank for Hillman is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $394.6 million, and for the current fiscal year, it is $0.58 on revenues of $1.53 billion [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which may impact future stock performance [6] Industry Context - The Building Products - Miscellaneous industry, to which Hillman belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Hillman Solutions (HLMN) Q1 2025 Earnings Call April 29, 2025 08:30 AM ET Company Participants Michael Koehler - VP, IR and TreasuryJon Michael Adinolfi - President & CEORobert Kraft - CFO & TreasurerLee Jagoda - Senior Managing DirectorAnika Dholakia - AVP - Equity ResearchStephen Volkmann - Managing DirectorDavid Manthey - Managing Director Madison Callinan - Equity Research Associate Conference Call Participants Reuben Garner - Equity Research Analyst Operator Good morning, and welcome to the First Quart ...

Hillman Solutions (HLMN) Q1 2025 Earnings Call April 29, 2025 08:30 AM ET Company Participants Michael Koehler - VP, IR and TreasuryJon Michael Adinolfi - President & CEORobert Kraft - CFO & TreasurerLee Jagoda - Senior Managing DirectorAnika Dholakia - AVP - Equity ResearchStephen Volkmann - Managing DirectorDavid Manthey - Managing Director Madison Callinan - Equity Research Associate Conference Call Participants Reuben Garner - Equity Research Analyst Operator Good morning, and welcome to the First Quart ...

Financial Performance - Net sales increased by 2.6% to $359.3 million compared to $350.3 million in the prior year quarter[6] - Net loss totaled $(0.3) million, or $(0.00) per diluted share, compared to $(1.5) million, or $(0.01) per diluted share, in the prior year quarter[6] - Adjusted EBITDA increased to $54.5 million compared to $52.3 million in the prior year quarter[6] - Net loss for the thirteen weeks ended March 29, 2025, was $317,000, a significant improvement from a net loss of $1,492,000 for the same period in 2024, representing a reduction of approximately 78.8%[20] - Adjusted EBITDA for the thirteen weeks ended March 29, 2025, was $54,526,000, compared to $52,322,000 for the same period in 2024, reflecting an increase of about 4.2%[24] - The company’s diluted earnings per share for the thirteen weeks ended March 29, 2025, was $0.10, unchanged from the same period in 2024, indicating stable performance in this metric[27] Cash Flow and Liquidity - Free Cash Flow totaled $(21.3) million compared to $(6.1) million in the prior year quarter[6] - Free cash flow for the thirteen weeks ended March 29, 2025, was $(21,313,000), a decline from $(6,083,000) in the same period of 2024, indicating a worsening cash generation situation[33] - Cash and cash equivalents at the end of the period were $36,309,000, up from $30,672,000 at the end of the same period in 2024, showing an increase of approximately 18.0%[20] - Net cash provided by financing activities for the thirteen weeks ended March 29, 2025, was $14,393,000, down from $20,411,000 in the same period of 2024, a decrease of about 29.5%[20] Debt and Capital Expenditures - Net debt as of March 29, 2025, was $703,663,000, an increase from $674,045,000 as of December 28, 2024, representing a rise of approximately 4.4%[31] - The company incurred capital expenditures of $20,658,000 for the thirteen weeks ended March 29, 2025, compared to $17,759,000 for the same period in 2024, reflecting an increase of approximately 10.7%[20] Guidance and Strategic Focus - Full Year 2025 guidance for Net Sales is reiterated at $1.495 to $1.575 billion[8] - Full Year 2025 guidance for Adjusted EBITDA is reiterated at $255 to $275 million[8] - The company plans to manage its business to end the year with a leverage ratio of around 2.5 times[8] - The acquisition of Intex DIY in August 2024 contributed to the growth in both top and bottom lines[5] - The company is focusing on diversifying its supply chain to mitigate the impact of tariffs[5] Adjusting Items and Expenses - Total adjusting items for Adjusted EBITDA in the thirteen weeks ended March 29, 2025, amounted to $5,607,000, compared to $7,434,000 in the same period of 2024, indicating a decrease of about 24.5%[24] - The company reported a stock-based compensation expense of $3,278,000 for the thirteen weeks ended March 29, 2025, compared to $2,829,000 for the same period in 2024, an increase of about 15.8%[24]

Core Viewpoint - Hillman Solutions Corp. reported financial results for the first quarter of 2025, showing growth in both net sales and adjusted EBITDA, while also addressing challenges related to tariffs and supply chain diversification [4][5][6]. Financial Performance - Net sales increased by 2.6% to $359.3 million compared to $350.3 million in the prior year quarter [7]. - Adjusted EBITDA rose to $54.5 million from $52.3 million in the prior year quarter [7]. - The company reported a net loss of $(0.3) million, or $(0.00) per diluted share, an improvement from a net loss of $(1.5) million, or $(0.01) per diluted share, in the prior year quarter [7][14]. Balance Sheet and Liquidity - As of March 29, 2025, total assets were $2.33 billion, slightly up from $2.33 billion on December 28, 2024 [15][16]. - Gross debt increased to $740.0 million from $718.6 million at the end of 2024, while net debt rose to $703.7 million from $674.0 million [7][30]. - Liquidity available totaled $200.9 million, consisting of $164.6 million in available borrowing under the revolving credit facility and $36.3 million in cash and equivalents [7]. Guidance and Outlook - The company reiterated its full-year guidance for net sales between $1.495 billion and $1.575 billion and adjusted EBITDA between $255 million and $275 million [6][5]. - Free cash flow guidance was withdrawn due to uncertainties around tariffs, but the company aims to manage its business to achieve a leverage ratio of around 2.5 times by year-end [6][5]. Management Commentary - The CEO highlighted the positive start to 2025, driven by contributions from the Intex DIY acquisition and new business wins, while emphasizing the importance of long-term partnerships and supply chain diversification [4].

Company Overview - Hillman Solutions Corp. (HLMN) shares increased by 6.9% to close at $7.89, following a notable trading volume and a 21.2% loss over the past four weeks [1] - The stock's surge is linked to President Trump's announcement to suspend U.S. tariffs for 90 days, which has renewed investor optimism [1] Earnings Expectations - The company is projected to report quarterly earnings of $0.10 per share, unchanged from the same quarter last year, with revenues expected to reach $358.57 million, reflecting a 2.4% increase year-over-year [2] - The consensus EPS estimate for the quarter has been revised 1.5% higher in the last 30 days, indicating a positive trend that may lead to price appreciation [3] Industry Context - Hillman Solutions Corp. operates within the Zacks Building Products - Miscellaneous industry, where another company, TopBuild (BLD), saw its shares rise by 7.7% to $297.13, despite a -7.2% return over the past month [3] - TopBuild's consensus EPS estimate has decreased by 2.2% to $4.42, representing an 8.1% decline compared to the previous year, and it currently holds a Zacks Rank of 4 (Sell) [4]

Core Viewpoint - Hillman Solutions Corp. is set to announce its financial results for the thirteen weeks ending March 29, 2025, during a conference call scheduled for April 29, 2025, at 8:30 a.m. Eastern Time [1][2]. Company Overview - Hillman Solutions Corp. is a prominent provider of hardware-related products and solutions, serving home improvement, hardware, and farm and fleet retailers across North America [5]. - The company is recognized for its strong customer service and has established a competitive advantage through direct-to-store shipping and a dedicated in-store sales and service team of over 1,200 professionals [5]. - Hillman's product portfolio includes hardware solutions such as fasteners, screws, nuts, and bolts, as well as protective solutions like work gloves and jobsite storage [5]. - The company has over 60 years of experience in the industry and is frequently awarded vendor of the year by top customers due to its world-class distribution network [5]. Earnings Presentation Details - The earnings release and quarterly results presentation will be filed with the SEC and made available on Hillman's website before the presentation begins [4]. - A listen-only webcast will be available for the presentation, and sell-side analysts must register to participate in the live Q&A session [3].

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Hillman Solutions Corp. identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Hillman Solutions Corp. has a historical EPS growth rate of 28.5%, with projected EPS growth of 17.3% for the current year, significantly outperforming the industry average of 5.5% [4]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 12.5%, which is substantially higher than the industry average of 2.7% [5]. - Over the past 3-5 years, Hillman Solutions Corp. has maintained an annualized cash flow growth rate of 40.2%, compared to the industry average of 8.9% [6]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Hillman Solutions Corp. have been revised upward, with the Zacks Consensus Estimate increasing by 1.3% over the past month [8]. Group 4: Overall Assessment - Hillman Solutions Corp. has achieved a Growth Score of B and a Zacks Rank of 2, indicating its potential as an outperformer and a solid choice for growth investors [10].