Hillman Solutions Corp. Q1 FY2026 earnings call

• Highlighted long-term strategic initiatives from Investor Day including core business win strategies, expansion into adjacent aisles, robotics and digital solutions rollout, global supply chain flexibility, associate empowerment, and PRO channel growth. - Discussed first quarter results with net sales up 3%, adjusted EBITDA down 8%, and details on hardware, RDS, Canada, pro and industrial teams' performance. - Mentioned acquisitions of Campbell Chain and Delaney Hardware, with expected contributions to net sales and growth opportunities. - Talked about navigating economic cycles, tariffs impact, oil price impact on costs, and focus on customer care and operational efficiency

Hardware and Protective Solutions (HPS) increased 1.2% vs Q1 2025; HS up 7% driven by new business wins and core performance; PS down 17% due to promotional off-shelf activity, destocking, and lower sell-through of gloves; Robotics and Digital Solutions (RDS) up 6% vs year-ago quarter, adjusted EBITDA increased by 11.4% to $16.2 million; Canadian business net sales increased 15.1% vs prior year quarter with 15% increase in new business wins and flat core performance

• Raised full year net sales guidance range to $1.63 billion to $1.73 billion with midpoint $1.68 billion. - Reiterated full-year 2026 adjusted EBITDA guidance between $275 million to $285 million and free cash flow guidance between $100 million to $120 million. - Expect adjusted gross margins to be between 46% and 47% for the year and improve sequentially throughout the year

• Uncertainty around tariff refunds with unknown potential impact. - Continued tariff changes and their choppy impact on bottom line and cash flow. - Impact of oil price increases on packaging and freight costs, though currently not significant but monitored. - Potential negative impact on PS business due to promotional activity and market conditions

• Questions and answers on destocking activities, pro strategy feedback, gross margin trajectory, tariff impact, PS business, acquisitions, RDS profitability and M&A deal environment