HLMN earnings analysis
What we found in HLMN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.11
- Gross margin
- 47.1%
- Operating margin
- 9.3%
- Segment
- Hardware and Protective Solutions: $336.066 million, +9.9% year over year
- Segment
- Robotics and Digital Solutions: $61.615 million, +11.0% year over year
- Segment
- Canada: $44.570 million, +7.8% year over year
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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