Hillman Solutions Corp. Reports Strong 2024 Results & Plans for 2025
Hillman Solutions Corp. - 2024 Financial Performance Review
Hillman Solutions Corp. (NASDAQ: HLMN), a leader in the hardware products and merchandising solutions industry, has unveiled its financial results for the thirteen and fifty-two weeks ending December 28, 2024. Despite facing a challenging macroeconomic landscape, Hillman has recorded resilience and growth, solidifying its status as a dependable player in its market.
Fourth Quarter Highlights
Key Financial Metrics
In the fourth quarter of 2024, Hillman's net sales increased by 0.5%, totaling $349.6 million compared to $347.8 million in the same quarter of the previous year. The company also reported a significant reduction in its net loss, which shrank to $(1.2) million or $(0.01) per diluted share, markedly better than the $(10.1) million loss or $(0.05) per diluted share from the prior year quarter.
Adjusted EBITDA reached a remarkable $56.3 million, up from $54.4 million year-over-year. Additionally, adjusted diluted earnings per share stayed stable at $0.10, indicating solid performance amidst volatilities.
Market Strategy and Operational Excellence
Doug Cahill, Hillman's Executive Chairman, emphasized the company's commitment to disciplined execution and customer satisfaction, which has contributed to its recognition as Vendor of the Year by both Home Depot and Lowe's. The company continues to enhance its position through targeted acquisitions, maximizing its operational capabilities and portfolio diversity.
Annual Overview for 2024
Year-End Financial Outcomes
For the full year of 2024, Hillman achieved net sales of $1.47 billion, marking a slight decline of 0.3% from the previous year's $1.48 billion. However, net income demonstrated a turnaround, reaching $17.3 million, compared to a net loss of $(9.6) million the previous year. The adjusted diluted earnings per share showed promising growth from $0.41 to $0.49, showcasing effective cost management strategies in light of challenges allegedly exacerbated by the impact of a $0.03 per diluted share write-off from True Value receivables.
Strengthened Financial Position
As of December 28, 2024, Hillman posted a significant decrease in gross debt, reporting $718.6 million down from $760.9 million, further indicating an improvement in financial health. With available liquidity of $233 million, including $189 million in borrowing capacity and $45 million in cash, the company remains well-positioned to navigate its operational needs and growth initiatives.
Looking Ahead: Guidance for 2025
Hillman has set its sights on an ambitious outlook for the upcoming year. The management anticipates net sales in the range of $1.495 billion to $1.575 billion, with adjusted EBITDA projected between $255 million to $275 million, and free cash flow expected to land between $90 million and $110 million. These projections are fueled by strategic capital investments in current technologies and potential new market opportunities that the company aims to tap into.
Management Insights
Newly appointed CEO Jon Michael Adinolfi expressed confidence in the company’s path to success in 2025, focusing on customer care, securing new business, and expanding through acquisitions. The company is particularly excited about its investment in the MinuteKey fleet and optimizing its operations for future growth and returns.
Frequently Asked Questions
What were the fourth quarter net sales for Hillman Solutions Corp.?
Hillman's net sales for the fourth quarter of 2024 were $349.6 million.
How did Hillman perform in 2024 compared to 2023?
For 2024, Hillman achieved a net income of $17.3 million, a significant turnaround from a net loss of $(9.6) million in 2023.
What is the projected net sales range for Hillman in 2025?
Hillman projects net sales to be between $1.495 billion and $1.575 billion for 2025.
Who is the new CEO of Hillman Solutions Corp.?
The new CEO is Jon Michael Adinolfi, who aims to maintain customer focus and drive business growth.
What strategic investments is Hillman considering for 2025?
Hillman plans to invest in the MinuteKey 3.5 fleet and pursue opportunities for operational growth through acquisitions.
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