Hillman Solutions turned in the strongest quarter in its 61-year history, delivering record sales and profit despite a challenging housing market and ongoing tariff pressures. The company said third-quarter revenue climbed 8% to $424.9 million, while profit more than tripled to $23.2 million. Operating earnings also set a company record, rising 36% to $88 million.
“This was a record quarter for Hillman,” president and CEO Jon Michael Adinolfi told investors. “We recognized the highest net sales and adjusted earnings of any quarter in our history. I’m especially proud of this team because we achieved these results despite market volume headwinds and tariff volatility.”
Adinolfi credited Hillman’s long-standing focus on repair, maintenance, and small-project products—items that sell in any economy. “The durability of our business model comes from the essential nature of our products,” he said. “These projects happen during good times and difficult times.”
Hillman’s results were fueled by higher prices and new customer wins. The company said pricing added about 10 points of growth, acquisitions contributed two points, and new contracts added another two. That strength offset a six-point drag from softer market demand.
Margins improved significantly as Hillman’s supply chain efficiencies and price discipline outweighed higher import costs. Gross margin rose to 51.7%, up from 48.2% a year earlier.
The company’s largest division, Hardware & Protective Solutions, led the way with 10% growth. Its robotics and digital unit also posted a third straight quarter of gains, helped by the rollout of Hillman’s next-generation Mini Key 3.5 self-service kiosks, which now number more than 3,000 across North America.
While profits surged, cash generation slowed. Operating cash flow fell to $26 million from $64 million a year earlier, and free cash flow dropped to $9 million. Chief financial officer Robert Kraft said about $30 million in new tariff costs weighed on cash results. “At the end of the third quarter, we had roughly $60 million of new tariffs sitting in inventory,” he said.
Kraft noted the company has fully absorbed the cost of higher tariffs by collaborating closely with suppliers and adjusting pricing. “We continue to execute our dual-sourcing strategy, buying from multiple suppliers in multiple countries,” Adinolfi added. “That flexibility allows us to react quickly as policies shift so we can always deliver high-quality products at the best value.”
Hillman reaffirmed its full-year revenue forecast of $1.54 billion to $1.58 billion and raised the bottom end of its profit guidance. The company now expects annual earnings to rise 13–14% from last year.
Adinolfi said early signs in the housing market could provide a tailwind heading into 2026. “For the first time in a long time, we’re encouraged by some of the leading indicators,” he said, pointing to lower mortgage rates and a higher number of existing homes for sale.
Looking further ahead, Kraft said Hillman expects sales to grow at a high-single- to low-double-digit rate in 2026, supported by continued pricing discipline and new business wins. Even with flat market volumes, he said, the company’s “disciplined operations, strong execution, and healthy customer relationships” will sustain steady performance.
Adinolfi summed up the quarter by highlighting the company’s “competitive moat”—a direct-to-store delivery network, more than 1,200 in-store service reps, and deep retail partnerships. “We’re a good business when things are good, and a surprisingly good business when things are challenging,” he said. “That’s what this quarter proved once again.”
