Hillman Solutions stock falls on missed Q4 expectations

Published 18/02/2025, 17:46
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Investing.com -- Shares of Hillman Solutions (NASDAQ: HLMN) tumbled 5.75% after the company reported fourth-quarter earnings that fell short of analyst expectations, coupled with revenue that narrowly missed consensus estimates.

The hardware products and merchandising solutions provider disclosed a fourth-quarter earnings per share (EPS) of $0.10, which was $0.01 below the analyst estimate of $0.11. Revenue for the quarter was reported at $349.6 million, slightly under the consensus estimate of $350.19 million. Despite the shortfall, the company’s net sales saw a marginal increase of 0.5% compared to the same quarter last year, which stood at $347.8 million.

For the full year of 2025, Hillman Solutions provided guidance that forecasts revenue ranging from $1.50 to $1.58 billion, against the consensus of $1.54 billion. This outlook follows a year in which the company’s net sales saw a slight decrease of 0.3% to $1.47 billion from the previous year’s $1.48 billion.

The company highlighted its achievements in 2024, including record-adjusted EBITDA and a reduction in net debt. Executive Chairman Doug Cahill pointed to disciplined execution and customer service as key factors contributing to Hillman’s success, which earned the company vendor of the year awards from both Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW).

Newly appointed CEO Jon Michael Adinolfi expressed optimism for 2025, citing plans to grow the company’s top and bottom lines through customer care, new business wins, and acquisitions. Adinolfi’s strategy includes capital investments into the MinuteKey 3.5 fleet and other growth initiatives expected to yield strong returns.

Hillman’s balance sheet reflects a decrease in gross debt to $718.6 million from $760.9 million at the end of the previous year, with net debt improving to $674.0 million from $722.4 million. The company’s liquidity stood at $233 million, including available borrowing under its revolving credit facility and cash equivalents.

Despite the positive full-year highlights and management’s confident outlook, investors reacted negatively to the fourth-quarter performance shortfall, leading to the decline in Hillman’s stock price in the recent trading session.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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