Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Hillman Solutions Corp. (HLMN) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 24.9%, with projected EPS growth of 18.4% this year, significantly outperforming the industry average of 5.7% [4] Group 2: Financial Metrics - Hillman Solutions Corp. exhibits a year-over-year cash flow growth of 12.5%, surpassing the industry average of 3.1% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 40.2%, compared to the industry average of 10% [6] Group 3: Earnings Estimates - There is a positive trend in earnings estimate revisions for Hillman Solutions Corp., with the current-year earnings estimates increasing by 6.4% over the past month [7] - The company has earned a Growth Score of B and a Zacks Rank 2 due to these positive earnings estimate revisions [9]

Core Insights - Hillman Solutions Corp. reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and showing an increase from $0.16 per share a year ago, resulting in an earnings surprise of +22.22% [1] - The company posted revenues of $424.94 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.25%, but up from $393.3 million year-over-year [2] - Hillman Solutions Corp. shares have underperformed the market, losing about 4.7% since the beginning of the year compared to the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $377.5 million, and for the current fiscal year, it is $0.54 on revenues of $1.57 billion [7] - The estimate revisions trend for Hillman Solutions Corp. was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Building Products - Miscellaneous industry, to which Hillman Solutions Corp. belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Financial Data and Key Metrics Changes - Hillman reported record net sales of $424.9 million for Q3 2025, an increase of 8% year-over-year [11][14] - Adjusted EBITDA rose 36% to $88 million, marking the highest adjusted EBITDA in the company's history [11][14] - Adjusted gross margin improved by 350 basis points to 51.7% compared to the prior year [11][14] - Leverage improved to 2.5 times from 2.7 times in the previous quarter [3][16] Business Segment Data and Key Metrics Changes - The Hardware and Protective Solutions (HPS) segment grew by 10% year-over-year, with adjusted EBITDA increasing by 57.3% to $65.8 million [12] - Robotics and Digital Solutions (RDS) saw a 3.3% increase in net sales, marking the third consecutive growth quarter [12] - Canadian business net sales were nearly flat, down 0.2% year-over-year, impacted by soft market volumes and foreign exchange [13] Market Data and Key Metrics Changes - Existing home sales in the U.S. are approximately 20% below the 10-year average, affecting market volumes [6] - Market volumes are expected to decline by 7% in the second half of 2025, with a cautious outlook for Q4 [45][61] Company Strategy and Development Direction - Hillman is focused on maintaining strong customer relationships and operational efficiency to navigate tariff challenges [9][10] - The company is optimistic about future growth opportunities, particularly as macroeconomic indicators improve [4][21] - Hillman plans to continue its dual-sourcing strategy to mitigate tariff impacts and enhance supply chain flexibility [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow despite current market headwinds, with expectations for continued growth into 2026 [3][21] - The company anticipates a high single to low double-digit growth in net sales for 2026, driven by rollover price and new business wins [20][61] - Management acknowledged the challenges posed by tariffs but emphasized the company's resilience and adaptability [9][10] Other Important Information - Hillman has initiated a $100 million share repurchase program, with $3.2 million deployed to buy back shares in Q3 2025 [16][17] - The company has paid down over $240 million of debt while reducing leverage significantly over the past three years [7][16] Q&A Session Summary Question: Competitive opportunities or pressures from suppliers - Management noted that they see several business opportunities arising from competitors facing challenges in the current environment [25] Question: Order patterns from largest retail customers - Order patterns have been consistent, with strong relationships maintained with retail partners [26] Question: Changes in 2026 outlook - Management reiterated their previous outlook for 2026, expecting high single to low double-digit growth in a flat market [27] Question: Impact of tariffs on market volumes - Management indicated that it is difficult to determine the exact impact of tariffs on consumer demand, but they remain cautiously optimistic [45] Question: Pricing and customer receptiveness - Management stated that pricing has played out as expected, with customers understanding the need for price adjustments due to tariffs [53] Question: M&A activity outlook - There has been an increase in inbound M&A interest, and management is optimistic about future opportunities [81]

Q3 2025 - November 4, 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 b ...

Financial Performance - Net sales increased by 8.0% to a record $424.9 million compared to $393.3 million in the prior year quarter[5] - Net income totaled $23.2 million, or $0.12 per diluted share, compared to $7.4 million, or $0.04 per diluted share, in the prior year quarter[5] - Adjusted EBITDA increased to a record $88.0 million compared to $64.8 million in the prior year quarter[5] - Net income for the thirty-nine weeks ended September 27, 2025, was $38,707,000, a 109% increase from $18,477,000 for the same period in 2024[19] - Adjusted EBITDA for the thirty-nine weeks ended September 27, 2025, was $217,780,000, up 17.4% from $185,484,000 in the prior year[23] - Adjusted diluted earnings per share for the thirty-nine weeks ended September 27, 2025, was $0.48, compared to $0.39 for the same period in 2024, reflecting a 23.1% increase[26] Cash Flow and Investments - Free Cash Flow totaled $9.1 million compared to $39.6 million in the prior year quarter[5] - Cash flows from operating activities provided $74,289,000, a decrease of 47% compared to $140,187,000 for the thirty-nine weeks ended September 28, 2024[19] - Net cash used for investing activities was $55,501,000, a significant reduction from $122,169,000 in the previous year[19] - Free cash flow for the thirteen weeks ended September 27, 2025, was $9,065,000, compared to $39,593,000 for the same period in 2024, indicating a decrease of approximately 77%[31] - For the thirty-nine weeks ended September 27, 2025, free cash flow was $18,942,000, down from $75,991,000 in the prior year, representing a decline of about 75%[31] - Net cash provided by operating activities for the thirteen weeks ended September 27, 2025, was $26,237,000, compared to $63,711,000 for the same period in 2024, a decrease of approximately 59%[31] - Capital expenditures for the thirteen weeks ended September 27, 2025, were $17,172,000, down from $24,118,000 in the same period in 2024, reflecting a reduction of about 29%[31] - For the thirty-nine weeks ended September 27, 2025, capital expenditures totaled $55,347,000, compared to $64,196,000 in the prior year, a decrease of approximately 14%[31] - The company emphasizes that free cash flow is a critical indicator of cash generated by business operations and available for investment and debt obligations[30] Debt and Liquidity - Gross debt was $709.5 million compared to $718.6 million on December 28, 2024[5] - Net debt to trailing twelve month Adjusted EBITDA improved to 2.5x at quarter end compared to 2.8x on December 28, 2024[5] - Liquidity available totaled $276.9 million, consisting of $239.2 million of available borrowing under the revolving credit facility and $37.7 million of cash and equivalents[5] - Net debt as of September 27, 2025, was $671,791,000, slightly down from $674,045,000 at the end of December 28, 2024[29] Stock and Shareholder Actions - Hillman repurchased approximately 325.6 thousand shares of its common stock at an average price of $9.72 per share, totaling $3.2 million[5] Depreciation and Expenses - The company reported a depreciation and amortization expense of $105,280,000 for the thirty-nine weeks ended September 27, 2025, compared to $96,440,000 in the prior year[19] - The company incurred $10,739,000 in stock-based compensation expense for the thirty-nine weeks ended September 27, 2025, up from $9,742,000 in the prior year[19] Accounts Receivable - Accounts receivable net change was $(34,721,000), indicating a higher collection period compared to $(22,906,000) in the previous year[19] Cash and Cash Equivalents - Cash and cash equivalents at the end of the period were $37,731,000, down from $59,820,000 at the end of September 28, 2024[19]

Increases FY 2025 Adj. EBITDA guidance; reiterates Net Sales and year-end leverage guidanceCINCINNATI, Nov. 04, 2025 (GLOBE NEWSWIRE) -- Hillman Solutions Corp. (Nasdaq: HLMN) (the “Company” or “Hillman”), a leading provider of hardware products and merchandising solutions, reported financial results for the thirteen and thirty-nine weeks ended September 27, 2025. Third Quarter 2025 Highlights (Thirteen weeks ended September 27, 2025) Net sales increased 8.0% to a record $424.9 million compared to $393.3 mi ...

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. In the quarter, the Conestoga Small Cap Composite returned -1.4% net-of-fees, underperforming the Russell 2000 Growth Index’s impressive 12.2% gain. Most of the Index's gains come from low-quality stock leadership, where unprofitable, high-beta ...

Core Insights - Hillman Solutions Corp. plans to host a conference call on November 4, 2025, to discuss its financial results for the thirteen and thirty-nine weeks ended September 27, 2025 [1][4] - The earnings release will be issued on the same day prior to the results presentation [1][4] - The presentation will be hosted by President and CEO Jon Michael Adinolfi and CFO Rocky Kraft [2] Presentation Details - Date: November 4, 2025 [3] - Time: 8:30 a.m. Eastern Time [3] - A listen-only webcast will be available [3] - Sell-side analysts must register to participate in the live Q&A session [3] - A replay of the webcast will be available approximately one hour after the presentation [3] Company Overview - Hillman Solutions Corp. is a leading provider of hardware-related products and solutions in North America [5] - The company has a strong commitment to customer service and a competitive advantage through direct-to-store shipping and a dedicated sales team of over 1,200 professionals [5] - Hillman's product portfolio includes hardware solutions, protective solutions, and robotic and digital solutions [5] - The company is recognized for its distribution network and has received vendor of the year awards from top customers [5]

Core Viewpoint - Hillman Solutions Corp. (HLMN) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - For Hillman Solutions Corp., the recent upgrade reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [5][10]. Earnings Estimate Revisions - Hillman Solutions Corp. is projected to earn $0.55 per share for the fiscal year ending December 2025, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for Hillman Solutions Corp. has increased by 2.2%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, highlighting their potential for market-beating returns [9][10]. - Hillman Solutions Corp.'s upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for the stock in the near term [10].