Fasteners and other hardware products distributor Hillman Solutions reported its 2024 fourth quarter and full-year financial results on Feb. 18, showing a record 4Q bottom line increase in sales, while margins increased year-over-year.
4Q Results
The Cincinnati-based company posted total 4Q sales of $350 million, increased 0.5% year-over-year. Meanwhile, Hillman reported a net profit loss of $1.2 million which was an improvement from 4Q23’s loss of $10.1 million.
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Adjusted gross margin declined by 50 basis points year-over-year to 47.7%.
Hillman’s 4Q adjusted EBITDA of $56.3 million on 16.1% margin topped the $54.4 million and 15.6% margin of a year earlier.
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By Business Unit in 4Q:
- Hardware & Protective sales of $260 million increased 1.6% year-over-year, driven by new business and acquisitions, offset by market volume and price. Adjusted EBITDA of $34.4 million on a 13.2% margin was down 80 bps from $35.7 million/14.0% margin of a year earlier.
- Robotics & Digital sales of $57.2 million fell 2.0% year-over-year, driven by market volumes, offset by MinuteKey 3.5 benefits. Adjusted EBITDA of $20 million on a 35.0% margin increased by 14.6% and 500 bps year-over-year, respectively.
- Canada sales of $31.8 million decreased by 3.6% year-over-year, driven by market volume and price, offset by new business. Adjusted EBITDA of $56.2 million on a 16.1% margin increased from 4Q23’s $54.3 million/15.6% by 3.5% and 50 bps, respectively.
2024 Results
For its full-year, Hillman posted sales of $1.47 billion, down 0.3% from 2023’s $1.48 billion, while net profit totaled $17.3 million compared to a net loss of $9.6 million from the same period a year prior.
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Hillman’s full-year gross margin 48.1% jumped 390 bps from 2023’s 44.2% margin.
The company’s adjusted EBITDA of $241.8 million on 16.4% margin — includes the impact of an $8.6 million write-off of receivables from True Value — increased drastically from the prior year’s $219.4 million/14.9% margin.
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By Business Unit in 2024:
- Hardware & Protective sales of $1.09 billion increased 1.8% year-over-year from 2023’s $1.07 billion, driven by new business and acquisitions, offset by market volume and price. Adjusted EBITDA of $151.2 million on a 13.8% margin increased 22.8% and 230 bps year-over-year, respectively.
- Robotics & Digital sales of $230.3 million fell 6.1% year-over-year, driven by market volume and offset by MinuteKey 3.5 benefit. Adjusted EBITDA of $74.6 million on 32.4% margin declined by 7.7% and 60 bps from the same period a year prior, respectively.
- Canada sales of $147.9 million decreased by 5.5% year-over-year, driven by market volume and price offset by new business winds. Adjusted EBITDA of $15.7 million on a 10.7% margin, increased year-over-year from $15.3 million/9.8% margin.
2025 Outlook
Hillman released its 2025 guidance. The company expects total sales between $1.48 billion to $1.58 billion, with a midpoint expectation of $1.53 billion. Meanwhile, the company anticipates an adjusted EBITDA between $255 million to $275 million, with a midpoint of $265 million.
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Hillman also said it forecasts long-term annual growth targets with revenue expected to increase 6% and an adjusted EBITDA growth of 10%. Including acquisitions, the company expects revenue growth to increase 10% and adjusted EBITDA to improve 15%.
The company was No. 5 on MDM’s Top Distributors List for Fasteners and No. 22 for Industrial Supplies.
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