NASDAQ$HLMN

Hillman Solutions Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Hillman Solutions' performance was marked by bottom-line improvements driven by efficiencies and strong margins, despite a slight decrease in net sales due to market conditions.

Hillman Solutions Corp. reported a slight decrease in net sales but a significant increase in net income and adjusted EBITDA for Q2 2024. The company focused on operational efficiencies and margin management, updating its full-year guidance to reflect these improvements.

  • Net sales decreased slightly by 0.2% to $379.4 million.
  • Net income increased to $12.5 million, or $0.06 per diluted share, compared to $4.5 million, or $0.02 per diluted share, in the prior year quarter.
  • Adjusted EBITDA increased to $68.4 million compared to $58.0 million in the prior year quarter.
  • The company updated its full-year 2024 guidance, lowering revenue expectations but increasing adjusted EBITDA guidance.

Headline financials

Total Revenue

$379M

Previous: $380M-0.2%
EPS

$0.06

Previous: $0.13-53.8%
Adjusted EBITDA

$68.4M

Previous: $58M+17.9%
Net Debt to TTM Adjusted EBITDA

2.8%

No prior period
Capital Expenditures

-$22.3M

No prior period
Free Cash Flow

$12.5M

Previous: $4.55M+175.8%
Net Income

$12.5M

Previous: $4.55M+175.8%
Operating Income

$31.6M

Previous: $20.8M+51.9%
Gross Profit

-$195M

Previous: -$216M+10.1%
Cash & Equivalents

$54M

Previous: $37.7M+43.4%
Total Assets

$2.39B

Previous: $2.47B-3.4%
Stock-Based Comp

$3.66M

Previous: $3.41M+7.3%

Revenue & EPS history

Hillman Solutions · Revenue · Quarterly

$379M

Q2 2024-0.2%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Hillman updated its full-year 2024 guidance to reflect current market conditions, lowering revenue expectations while increasing adjusted EBITDA guidance, and maintaining free cash flow guidance.

Tailwinds

  • Adjusted EBITDA guidance increased to $240 to $250 million from $230 to $240 million.
  • Confidence in driving profitability through operations and margin management.
  • Free cash flow guidance remains unchanged at $100 to $120 million.
  • Focus on 'controlling the controllables' to position Hillman for future growth.
  • Exceptional fill rates of 95% ensuring product availability for retail partners.

Headwinds

  • Net sales guidance lowered to $1.44 to $1.48 billion from $1.475 to $1.555 billion.
  • Sales impacted by prevailing market conditions.
  • Increased supply chain costs, including raw materials, sourcing, transportation and energy
  • Unfavorable economic conditions that may affect operations, financial condition and cash flows including spending on home renovation or construction projects, inflation, recessions, instability in the financial markets or credit markets
  • Direct and indirect costs associated with the May 2023 ransomware attack

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-1.0%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-0.6%

Avg return

30 days after

41%

9 / 22 earnings

Positive

+8.8%

Q4 2023

Best reaction

-10.1%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.0%-10.5%-14.5%
Q4 2025-10.1%-11.0%-21.2%
Q3 2025-2.9%-5.6%-3.1%
Q1 2025-7.4%-5.7%-1.7%
Q4 2024-2.1%-3.3%-13.2%
Q3 2024+3.8%+4.1%+4.4%
Q2 2024+3.4%+3.0%+7.2%
Q1 2024-4.2%-4.3%-10.7%
Q4 2023+8.8%+8.8%+15.2%
Q3 2023-1.9%-0.7%+15.2%
Q2 2023-6.1%-5.1%-13.2%
Q1 2023+1.4%+0.5%+8.9%
Q4 2022+3.0%+0.0%-12.6%
Q3 2022+7.4%+3.5%+15.4%
Q2 2022-9.7%-6.1%-20.3%
Q1 2022+6.0%+6.6%+6.4%
Q4 2021+8.2%+17.7%+33.9%
Q3 2021-5.3%-1.7%-9.8%
Q2 2021+3.3%+4.2%-0.4%
Q1 2021-8.0%-5.9%+1.9%
Q4 2020-2.8%+1.1%-0.3%
Q4 2019-2.8%+1.1%-0.3%
Q3 2020
Q2 2020
Q1 2020

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