Hillman Solutions Corp.

Hillman Solutions Corp. supplies small hardware, fasteners, keys, builder's hardware, protective gear, and identification products to North American retail channels. It also provides merchandising and in-store service support, including shelf management, inventory replenishment, and robotics kiosk break-fix services, making it both a product supplier and a retail execution partner.

16,4 %

2,6 %

+5,4 %

2.51

0.62

— Hillman Solutions Corp.
	%
Hardware and fasteners	55% Small parts, fasteners, threaded rod, metal shapes, rope, and chain sold into retail channels.
Keys and builder's hardware	15% Keys, key duplication systems, and builder's hardware used in home repair and retail hardware aisles.
Protective solutions	10% Personal protective equipment and related consumables such as gloves, eyewear, and cleaning rags.
Identification and signage	8% Tags, letters, numbers, signs, and other retail identification products.
Merchandising and service solutions	12% Design, installation, replenishment, and break-fix services for retail merchandising systems and kiosks.

Hillman sells primarily to retail outlets rather than end consumers, with hardware stores, home centers, mass...

Big box chain storesprimary
Large national retailers that buy fasteners, keys, builder's hardware, and merchandising support in high volume because they need reliable fill rates and in-store execution.
Hardware stores and home centersprimary
Core retail customers that stock Hillman's broad assortment of small hardware items for home repair and remodeling demand.
Mass merchantsprimary
Large-format retailers that use Hillman as a category manager for small hardware and related accessories.
Pet supply, grocery, and drug storessecondary
Secondary retail channels that buy selected SKUs and benefit from Hillman's merchandising and replenishment services.

Hillman operates mainly in North America, with sales concentrated in the United States, Canada, and Mexico and...

•Primary sales markets are the United States, Canada, and Mexico
•Additional retail reach extends into Latin America and the Caribbean
•Canada is a separate operating segment and has shown recent decline
•Sourcing is split across China, North America, and other countries
•Tariffs and import rules affect pricing, inventory, and working capital

Hillman's strategy centers on winning and retaining large retail accounts by combining product breadth with high-touch...

Protect and deepen large retail relationshipsshort-term

Two big box customers represent a very large share of sales, so service levels and fulfillment are critical to retention.

Mitigate tariff and sourcing riskshort-term

Import duties raise product costs, working capital needs, and can pressure demand if prices rise too far.

Expand category coverage and merchandising capabilitymedium-term

Broader assortments and better in-store execution help Hillman remain a category manager for retailers.

Hillman is exposed to customer concentration, since two large big-box customers account for a substantial portion of...

high

Customer concentration

Two largest customers generated a very large share of net sales and receivables, so loss or repricing would materially affect results.

Scope: Big box chain stores
Materiality: high

high

Tariffs and import measures

The company imports a majority of products, and tariffs increase product costs, working capital, and may reduce demand after price increases.

Scope: China, Mexico, Canada, and other import sources
Materiality: high

high

Cybersecurity and systems disruption

Hillman relies on IT systems and third-party systems for ordering, inventory, collections, and shipping; a ransomware event already occurred in 2023.

Scope: Enterprise systems and vendor interfaces
Materiality: high

medium

Demand tied to home improvement activity

Sales depend on home repair and remodel activity, so a weak housing or consumer backdrop can reduce sell-through.

Scope: Retail end markets
Materiality: medium

Inventory realization and obsolescence reserve

A 5% change in the reserve would have affected fiscal 2025 net earnings by about $1.6 million

Tariff-related inventory and cost accounting

Affects gross margin, inventory balances, and cash conversion

Goodwill and acquisition accounting

Potential non-cash impairment charges if acquired businesses underperform

Seasonality and quarterly comparability

Quarterly results may not be directly comparable across periods

Hillman Solutions Corp.

Customer concentration

Tariffs and import measures

Cybersecurity and systems disruption

Demand tied to home improvement activity

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