10-Q · April 28, 2026
Hillman reported Q1 net sales of $370,073,000, up 3.0% year-over-year but roughly flat sequentially (+1.4% vs. Q4). Gross margin compressed to ~45.6% and operating margin fell to ~1.95%, producing a GAAP net loss of…
Earnings analysis · 10-Q
HLMN earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Hillman delivered a strong Q2 sales increase, with revenue of $442.251 million (+9.8% year over year) and GAAP diluted EPS of $0.11 (+$0.03), while operating margin improved modestly to 9.3%. Growth was broad across all…
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Hillman delivered a strong Q2 sales increase, with revenue of $442.251 million (+9.8% year over year) and GAAP diluted EPS of $0.11 (+$0.03), while operating margin improved modestly to 9.3%. Growth was broad across all segments and first-half operating cash flow rose to $68.463 million, aided by lower inventory. Offsetting these positives, year-over-year gross margin contracted, tariff costs remain a stated headwind, and debt stood at $701.266 million before the planned approximately $315.0 million Kanebridge acquisition.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.11
What stood out
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Revenue and GAAP EPS increased
Q2 net sales reached $442.251 million, up $39.448 million (9.8%) from $402.803 million a year earlier and up $72.178 million from Q1 2026 sales implied by first-half sales of $812.324 million. GAAP diluted EPS rose to $0.11 from $0.08 year over year.
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Margins recovered sequentially
Gross margin was 47.1% in Q2 ($208.089 million gross profit on $442.251 million sales), improving from 45.6% in Q1 2026 but below 48.3% a year ago. Operating margin was 9.3%, up from 9.0% in Q2 2025 and 2.0% in Q1 2026.
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Broad-based segment sales growth
All three segments expanded sales: Hardware and Protective Solutions added $30.142 million (+9.9%) to $336.066 million; Robotics and Digital Solutions added $6.095 million (+11.0%) to $61.615 million; and Canada added $3.211 million (+7.8%) to $44.570 million.
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Cash conversion and capex improved
First-half operating cash flow increased $20.411 million to $68.463 million, while capital expenditures fell $5.580 million to $32.595 million. Capex equaled 4.0% of first-half sales of $812.324 million, primarily for kiosks and merchandising racks.
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Inventory reduction supported liquidity
Cash increased to $35.839 million from $27.276 million at year-end, while inventories declined $30.853 million to $455.085 million. Management attributed the inventory reduction to supply-chain management amid recently enacted tariffs.
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Small acquisitions aided Hardware growth
The company completed Campbell and Delaney acquisitions for $2.600 million and $4.618 million, respectively. Campbell contributed $10.777 million of sales and $5.534 million of operating income during the period.
What to watch
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Leverage rises ahead of Kanebridge deal
Total debt, including revolving loans, term loan and finance leases, increased to $701.266 million at June 27, 2026 from $693.050 million at December 27, 2025. The subsequent Kanebridge acquisition is approximately $315.0 million and will use cash, revolver borrowings and an additional Term Loan B.
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Receivables and tariff working-capital pressure
Accounts receivable rose $39.768 million to $154.694 million from year-end, while the ABL revolver balance increased $10.000 million to $46.000 million. Management says tariff-related product costs are expected to increase working capital and adversely affect future cash flow.
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Tariff and rate exposure remain material
Hardware and Protective Solutions cost of sales rose to 57.7% of segment sales from 55.2%, and Canada cost of sales rose to 59.5% from 59.2%; management cites increased tariff/product costs and higher steel tariffs. The filing states that a 1% rate change would alter annual interest expense by about $3.2 million.
Management's outlook
The 10-Q does not provide quantified earnings or revenue guidance. It discloses a July 31, 2026 agreement to acquire Kanebridge for approximately $315.0 million, funded by cash, revolver borrowings and an additional Term Loan B.
Earlier filings 4
10-K · February 17, 2026
Hillman reports net sales of approximately $1,552.2 million in 2025 with continued strength in its Hardware and Protective Solutions segment (2025 revenue $1,194.0 million). Robotics and Digital Solutions remained…
10-Q · November 4, 2025
Hillman reported a stronger Q3 with revenue of $424,939,000 (13 weeks) up $31,643,000 or ~8.0% versus the prior-year quarter and material margin expansion (gross margin 51.7% and operating margin 10.8%). Net income for…
10-Q · April 29, 2025
Hillman reported net sales of $359,343,000 in Q1 2025, up $9,038,000 (+2.6%) versus Q1 2024, while operating income fell to $15,015,000 from $16,304,000. Gross margin compressed to 46.9% (from ~47.6%) and the company…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.