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Sep 30, 2023
Hillman Solutions Q3 2023 Earnings Report
Hillman Solutions experienced revenue and adjusted EBITDA growth, navigating a challenging macroeconomic environment.
Key Takeaways
Hillman Solutions Corp. reported a 5.4% increase in net sales to $398.9 million and net income of $5.1 million for the third quarter of 2023. Adjusted EBITDA grew to $66.8 million, driven by strength in the Hardware and Protective Solutions segment and improved margins. The company updated its full year 2023 guidance, narrowing the range for net sales and adjusted EBITDA while increasing the free cash flow outlook.
Net sales increased by 5.4% to $398.9 million compared to the prior year quarter.
Net income totaled $5.1 million, or $0.03 per diluted share, compared to a net loss of $(9.5) million in the prior year quarter.
Adjusted EBITDA totaled $66.8 million compared to $59.0 million in the prior year quarter.
The company narrowed its full year 2023 guidance for net sales and adjusted EBITDA, and increased its free cash flow outlook.
Forward Guidance
Management updated its full year 2023 guidance, narrowing the range for net sales and adjusted EBITDA while increasing the free cash flow outlook.
Positive Outlook
- Expect gross margins to expand sequentially into the fourth quarter.
- Benefiting from new business wins.
- Benefiting from prior pricing actions.
- Benefiting from prudent cost controls.
- Increased free cash flow outlook for the year.
Challenges Ahead
- Challenging macroeconomic environment.
- Lower foot traffic at customers.
- Net Sales original guidance $1.45 to $1.55 billion, updated guidance $1.455 to $1.485 billion.
- Adjusted EBITDA original guidance $215 to $235 million, updated guidance $215 to $220 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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