Hillman Reports Fourth Quarter and Record Full Year 2025 Results; Provides 2026 Guidance

Core Insights - Hillman Solutions Corp. reported a record net sales of $1.55 billion for the full year 2025, reflecting a 5.4% increase compared to 2024 [1][6] - The company anticipates a 6.3% increase in net sales for 2026, with guidance set between $1.6 billion and $1.7 billion [1][8] - Hillman achieved a net income of $40.3 million for 2025, compared to a net loss of $17.3 million in 2024 [6][24] Financial Performance - Fourth Quarter 2025 Results: - Net sales increased by 4.5% to $365.1 million compared to Q4 2024 [6] - Net income was $1.6 million, or $0.01 per diluted share, compared to a net loss of $(1.2) million in the prior year [6][24] - Adjusted EBITDA rose by 2.3% to $57.5 million [6] - Full Year 2025 Results: - Net sales reached $1.55 billion, up from $1.47 billion in 2024 [6][24] - Adjusted EBITDA increased by 13.9% to $275.3 million [6] - Free Cash Flow totaled $35.1 million, down from $98.1 million in 2024 [6][34] Balance Sheet and Liquidity - As of December 27, 2025, total assets were $2.36 billion, compared to $2.33 billion in 2024 [17] - Gross debt decreased to $693.1 million from $718.6 million at the end of 2024 [6][17] - Net debt improved to $665.8 million from $674.0 million in the previous year [6][32] - Liquidity available totaled $306 million, consisting of $279 million in borrowing capacity and $27 million in cash [6] Management Commentary - The CEO highlighted the company's ability to navigate a dynamic tariff environment while achieving record results [5] - The company plans to continue investing in growth opportunities, including the MinuteKey 3.5 fleet, expected to yield healthy returns [5][7] Guidance for 2026 - Hillman provided guidance for 2026, projecting net sales between $1.6 billion and $1.7 billion, adjusted EBITDA between $275 million and $285 million, and free cash flow between $100 million and $120 million [8][7]