Hardware products distributor Hillman Group reported its 2025 fourth quarter and full year financial results on Feb. 17, which showed decelerated sales growth and a modest gross margin decline as higher tariff costs made an impact.

4Q25

Cincinnati-based Hillman posted 4Q25 sales of $365 million, up 4.5% year-over-year (+8.0% in 3Q). Adjusted gross margin of 47.6% dipped by 10 basis points as the company noted higher tariff costs hit its inventory. Adjusted EBITDA increased 2.3% to $57.5 million while EBITDA margin of 15.8% fell 30 bps.

By product segment in 4Q:

• Hardware and Protective Solutions sales increased 6.4% year-over-year. Adjusted EBIITDA margin increased 14.0% and adjusted EBITDA margin increased 100 bps
• Robotics and Digital Solutions sales dipped 1.1%. Adjusted EBITDA sunk 19.4% and adjusted EBITDA margin fell 650 bps
• Canada sales decreased 2.3%. Adjusted EBITDA slid 3.5% and adjusted EBITDA margin dipped 10 bps

Full-Year

For the full-year, Hillman’s 2025 annual sales increased 5.4% to a company record $1.55 billion. Adjusted gross margin of 48.7% increased 60 bps. Adjusted EBITDA of $275 million increased 13.9% and adjusted EBITDA margin increased 130 bps to 17.7%. Meanwhile, operating cash flow of $105 million trailed the $183 million of 2024.

2026 Outlook

In its full year 2026 guidance, HIllman expects annual sales of $1.6 billion to $1.7 billion, with adjusted EBITDA of $275 million to $285 million and free cash flow of $100 million to $120 million.

“Looking to 2026, we are confident we will grow both our top and bottom line, while we seek strategic opportunities to grow via M&A and expand our leading market share position,” Hillman CEO Jon Michael Adinolfi said in the company’s earnings release.

On MDM’s 2025 Top Distributors Lists, Hillman was No. 3 for Fasteners, No. 15 for MRO Industrial and No. 18 for Industrial Supplies.