Hillman Reports First Quarter 2025 Results

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 - Free cash flow guidance was withdrawn due to uncertainties around tariffs, but the company aims to manage its business to achieve a leverage ratio of around 2.5 times by year-end [6][5].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].