Hillman’s second quarter results were shaped by effective tariff mitigation strategies and execution on supply chain flexibility, which management credits for solid top and bottom line growth. CEO Jon Michael Adinolfi highlighted the company’s ability to “deliver orders on time and in full,” attributing performance to steady demand for repair and maintenance products, successful integration of the Intex acquisition, and a dual faucet sourcing strategy that reduced reliance on China. Management also pointed to strong results in its Hardware and Protective Solutions segment, as well as improved margins in Robotics and Digital Solutions, with Adinolfi noting, “This confirms our MinuteKey 3.5 strategy is working.”
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Hillman (HLMN) Q2 CY2025 Highlights:
- Revenue: $402.8 million vs analyst estimates of $392.4 million (6.2% year-on-year growth, 2.6% beat)
- Adjusted EPS: $0.17 vs analyst estimates of $0.14 (18.5% beat)
- Adjusted EBITDA: $75.23 million vs analyst estimates of $69.83 million (18.7% margin, 7.7% beat)
- The company lifted its revenue guidance for the full year to $1.56 billion at the midpoint from $1.54 billion, a 1.3% increase
- EBITDA guidance for the full year is $270 million at the midpoint, above analyst estimates of $261.3 million
- Operating Margin: 9%, in line with the same quarter last year
- Market Capitalization: $1.95 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Hillman’s Q2 Earnings Call
- Lee Jagoda (CJS Securities) asked how Hillman’s competitive advantages in retail translate to the pro channel. CEO Jon Michael Adinolfi explained that Hillman’s established brands and customer support are extending into pro segments, with further updates to be shared in the future.
- William Carter (Stifel) inquired about the sustainability of new business wins and the impact of rollover pricing in a flat market. CFO Rocky Kraft stated they expect to maintain at least 2% annual growth from new business and that the volume guidance is intentionally conservative.
- Matthew Bouley (Barclays) questioned margin elasticity and the impact of tariffs on profitability. Kraft clarified that price increases generally cover tariff costs, with minimal expected volume impact due to the essential nature of repair and maintenance products.
- Brian McNamara (Canaccord) asked about the timing and visibility of pricing changes at the retail shelf. Adinolfi responded that price implementation varies by retailer, but the company closely monitors progress and works with customers to ensure alignment.
- David Manthey (Baird) probed the timing of tariff cost impacts and pricing alignment. Adinolfi and Kraft confirmed a temporary benefit in Q3 before price and tariff costs reach parity in Q4, aligning profitability with underlying cost changes.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace at which Hillman reduces its China sourcing exposure through the dual faucet strategy, (2) the effectiveness of price pass-throughs in offsetting ongoing tariff costs as these costs fully flow through to the P&L, and (3) the continued rollout and utilization of MinuteKey 3.5 kiosks in key customer locations. Updates on new business wins and the ability to sustain margins in a flat demand environment will also be critical signposts.
Hillman currently trades at $9.86, up from $8.14 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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