Hillman Solutions 2025 Q1 Earnings Misses Targets as Net Loss Narrows

Hillman Solutions reported its fiscal 2025 Q1 earnings on April 29th, 2025. The company’s revenue of $359.3 million fell short of Wall Street’s expectations of $361.3 million, though its adjusted EPS of $0.10 matched analysts' estimates. Hillman's full-year revenue guidance at the midpoint of $1.54 billion came in slightly above expectations, and its adjusted EBITDA guidance of $265 million also exceeded forecasts. Despite these positive elements, Hillman’s stock price experienced significant declines, influenced by ongoing market conditions.

Revenue

Hillman Solutions saw a 2.6% increase in total revenue for Q1 2025, amounting to $359.34 million compared to the previous year's $350.31 million. In the Fastening and Hardware segment, revenue reached $231 million, while Personal Protective products generated $69.69 million. The Keys and Key Accessories division contributed $48.72 million, and the Engraving and Resharp segment brought in $9.94 million, culminating in consolidated revenue of $359.34 million.

Earnings/Net Income

Hillman Solutions maintained stable EPS at $0.00 in Q1 2025, matching the previous year's results. However, the company successfully reduced its net loss to $317,000, marking a 78.8% decrease from the $1.49 million net loss reported in Q1 2024. Hillman’s EPS stability indicates ongoing challenges, but the significant reduction in net loss is a positive signal for future performance.

Price Action

The stock price of Hillman Solutions has tumbled 10.81% during the latest trading day, has dropped 6.78% during the most recent full trading week, and has plummeted 22.28% month-to-date.

Post-Earnings Price Action Review

Following the release of its earnings report, Hillman Solutions (HLMN) experienced mixed results in its stock price performance. Backtest data reveals a 44.44% win rate for three-day post-earnings price action, which drops to 33.33% over ten days, before returning to 44.44% at the thirty-day mark. This pattern indicates frequent short-term volatility in the stock following earnings releases. The maximum return observed over a 30-day period was 2.37%, suggesting modest potential for price appreciation. While there's room for gains, the overall returns remain relatively limited, emphasizing the stock's vulnerability to market fluctuations in the short term.

CEO Commentary

Jon Michael Adinolfi, President and CEO, expressed confidence in Hillman Solutions' strong performance, noting a 2.6% increase in net sales driven by the Intex acquisition and new business. He acknowledged challenges such as tariffs and a volatile economic environment, estimating a $250 million annual impact from new tariffs but believes the company can mitigate these costs through price increases. Adinolfi emphasized Hillman's resilience and strong partnerships, asserting a positive long-term outlook despite current challenges.

Guidance

Hillman Solutions reaffirmed its full-year 2025 net sales guidance between $1.495 billion and $1.575 billion, with a midpoint of $1.535 billion, reflecting 4% growth over the previous year. Adjusted EBITDA guidance remains between $255 million and $275 million, with a midpoint of $265 million, indicating a 10% growth. The guidance accounts for anticipated tariff impacts, with pricing adjustments expected to offset volume declines, as market volumes are projected to decrease approximately 17% in the year's second half.

Additional News

In recent developments, Barclays PLC acquired 34,265 shares of Hillman Solutions Corp (NASDAQ:HLMN), signaling confidence in the company's potential despite recent earnings challenges. Additionally, Marshall Wace LLP has trimmed its stake in Hillman, possibly reflecting a strategic portfolio adjustment in light of the company's current market conditions. These movements in the financial sector highlight ongoing interest and strategic decisions regarding Hillman's future outlook. Hillman continues to navigate its challenges with a focus on maintaining strong customer relationships and diversifying its supply chain to mitigate external impacts.