Hardware products distributor Hillman Solutions has raised its guidance for the year following a strong first half, clarity around tariffs and better business outlook.
On Aug. 5, the Cincinnati-based distributor reported a 2Q year-over-year net sales increase of 6.2% to $402.8 million.
That sales increase was driven by continued growth in Hillman’s Hardware and Protective Solutions product category (up 8.7% in 2Q), followed by Robotics and Digital Solutions (2.3% increase). While Hillman’s Canada unit’s sales decreased by 5.6%, it was sequential improvement from the previous quarter when the unit was down by 18.7%.
Adjusted EBITDA increased to $75.2 million compared to $68.4 million in the same quarter of 2024, and adjusted EBITDA margins were up 70 basis points year-over-year to 18.7%. Adjusted 2Q gross margin of 48.3% fell 40 bps year-over-year.
The company now expects to end 2025 with 2.4x net sales-adjusted EBITDA leverage at year-end.
MDM’s 2Q25 MarketPulse Report (store link)
“Our team has done a fantastic job successfully managing the tariff environment while continuing to provide great customer service at the shelf and delivering orders on-time and in-full,” Hillman President and CEO Jon Michael Adinolfi said. “During the quarter, we delivered robust top and bottom-line results which produced strong free cash flow and reduced our net debt outstanding. Looking forward, we are confident that the resilience of our business, together with our long-term growth opportunities, will drive growth for the remainder of 2025 and for years to come.”
2Q25 Performance By Product Category
- Hardware & Protective sales of about $306 million increased 8.7% year-over-year, driven by contributions from M&A, new business and pricing. Adjusted EBITDA of $51.5 million on a 16.8% margin increased by 80 bps year-over-year.
- Robotics & Digital sales of $55.5 million grew 2.3% year-over-year, supported by the rollout of MinuteKey 3.5. Adjusted EBITDA of about $17.8 million on a 32% margin increased by 70 bps year-over-year.
- Canada sales of about $41.4 million decreased by 5.6% year-over-year, attributed to a soft market and economy and FX headwinds. Adjusted EBITDA of $5.9 million decreased by 40 bps YoY.
Hillman ranked three times on MDM’s Top Distributors List: No. 3 on the Fasteners list, No. 15 on the MRO Industrial list, No. 18 on the Industrial Supplies list,
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