Hillman Solutions Corp

Professional tools and equipment stocks reported a very strong second quarter, with the eight companies tracked beating analysts' revenue consensus estimates by 1.8% and next quarter's revenue guidance coming in 14.3% above expectations. Stanley Black & Decker reported revenues of $3.96 billion, flat year over year and in line with expectations, while beating EPS and EBITDA estimates. Kennametal delivered the fastest revenue growth, up 42.6% year over year to $736.6 million, and raised full-year guidance the most. Lincoln Electric posted revenues of $1.22 billion, up 12% year over year, but missed organic revenue estimates. Hyster-Yale Materials Handling saw revenues decline 15% year over year to $812.9 million, the slowest growth among peers, while Hillman grew revenues 9.8% to $442.3 million and beat full-year revenue and EBITDA guidance.

Hillman Solutions Corp reported second-quarter net sales of $442.3 million, a 10% increase from the prior year, and raised its full-year 2026 guidance. Adjusted EBITDA was $77.1 million, up 2.5% from $75.2 million a year ago, while adjusted gross margin declined 120 basis points to 47.1%. The company announced the acquisition of Cambridge Corporation, a master distributor of fasteners in the industrial channel, which is expected to contribute approximately $15 million in net sales and roughly $5 million in adjusted EBITDA to 2026 results. Full-year net sales guidance was narrowed to a range of $1.67 billion to $1.72 billion, with a midpoint of $1.695 billion representing 9% growth, and adjusted EBITDA guidance was raised to approximately $285 million. Free cash flow for the quarter was $70.2 million, and the company expects full-year free cash flow between $105 million and $115 million.

Hillman Solutions Corp. announced a rise in second-quarter profit. Earnings totaled $21.12 million, or $0.11 per share, compared with $15.83 million, or $0.08 per share, in the same period last year. Excluding items, adjusted earnings were $33.69 million, or $0.17 per share. Revenue increased 9.8% to $442.25 million from $402.80 million a year earlier. The company issued full-year revenue guidance of $1.670 billion to $1.720 billion.

Hillman Solutions Corp. and Hillwood Investment Properties have broken ground on a new 715,000-square-foot Class A multipurpose facility in Forest Park, Ohio, which Hillman will fully lease to consolidate several Cincinnati-area operations into a single hub. The consolidation is intended to streamline Hillman's North American distribution and support functions, potentially improving collaboration, operational efficiency, and customer service while revitalizing a long-vacant property through public–private partnerships. The new facility supports Hillman's investment thesis of steady recurring demand and margin improvement, but does not materially change near-term tensions around a weak financial profile, high debt, and a low 2.3 percent net margin. Hillman recently raised its 2026 net sales guidance to between US$1.63 billion and US$1.73 billion, and its narrative projects US$1.8 billion in revenue and US$102.9 million in earnings by 2028, requiring 5.9 percent yearly revenue growth and an approximately US$81.2 million earnings increase from US$21.7 million today.

Hillman Solutions Corp. and Hillwood Investment Properties held a groundbreaking ceremony for a new multipurpose facility at the former Forest Fair Mall site in Forest Park, Ohio. The planned Class A facility will be approximately 715,000 square feet, primarily containing distribution center space along with office and operational support functions, and includes an expansion pad for an additional 162,000 square feet. Hillman will lease and fully occupy the space as its sole tenant, consolidating several Cincinnati-area operations into one centralized location. The project was made possible through partnerships with the City of Forest Park, the Butler County Land Bank, the Ohio Department of Development, the City of Fairfield, JobsOhio, and REDI Cincinnati.