Hillman Solutions Corp.HLMN
Hillman Solutions Corp. Segments Disclosure
The Company's segment reporting structure uses the Company's management reporting structure as the foundation for how the Company manages its business. The Company's reportable segments are strategic business units that offer different products and services, and in the case of our Canada segment in a different geography. They are managed separately due to different products and marketing strategies. The Company periodically evaluates its segment reporting structure in accordance with ASC 350-20-55 and has concluded that it has three reportable segments as of December 27, 2025.
The segments are as follows:
•Hardware and Protective Solutions
•Robotics and Digital Solutions
•Canada
In the second quarter of 2025, the Company realigned its Hardware and Protective Solutions segment to include the sales of accessories, which are now managed by the Hardware and Protective Solutions leadership team. Previously, accessories were included under the Robotics and Digital Solutions segment leadership team. Please see Note 1 - Basis of Presentation for more information.
The Hardware and Protective Solutions segment distributes fasteners and related hardware items, threaded rod, personal protective equipment, key accessories, and letters, numbers, and signs to hardware stores, home centers, mass merchants, and other retail outlets primarily in the United States and Mexico.
The Robotics and Digital Solutions segment consists of key duplication and engraving kiosks that can be operated directly by the consumer, primarily in the United States. The kiosks operate in retail and other high-traffic locations offering customized licensed and unlicensed products targeted to consumers in the respective locations. It also includes our associate-assisted key duplication systems. The Robotics and Digital Solutions segment also includes Resharp, our robotic knife sharpening business, and Instafob, which specializes in RFID ("Radio Frequency Identification") fob duplication technology.
The Canada segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems, engraving kiosks, accessories, personal protective equipment, and identification items, such as tags and letters, numbers, and signs to hardware stores, home centers, mass merchants, industrial distributors, automotive aftermarket distributors, and other retail outlets and industrial Original Equipment Manufacturers (“OEMs”) in Canada. The Canada segment also produces fasteners, stampings, fittings, and processes threaded parts for automotive suppliers and industrial OEMs.
For a reconciliation of our segment sales by product category and geographic area, please see Note 2 - Summary of Significant Accounting Policies. For details on our major customers please see Note 17 - Concentration of Credit Risks.
The Company has transitioned from using segment operating income in prior years as a measure of performance and now utilizes segment adjusted EBITDA. The Company measures the performance of its segments using segment adjusted earnings before interest, taxes, depreciation and amortization (“segment adjusted EBITDA”).
The Company’s President and Chief Executive Officer, who is the Chief Operating Decision Maker (“CODM”), uses segment adjusted EBITDA predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances, expressed as both actual amounts and as a percentage of sales, on a monthly, quarter to date, and year to date basis when making decisions about allocating resources to the segments. The CODM also uses segment adjusted EBITDA in competitive analysis by benchmarking the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation. The CODM reviews balance sheet accounts on a consolidated basis and does not regularly review balance sheet accounts by segment as part of their performance assessment and decision-making process. The CODM primarily focuses on net sales growth,
cost efficiencies, market expansion and product development rather than financial position. The accounting policies of the Company’s segments are the same as those described in Note 1 - Basis of Presentation.
Segment adjusted EBITDA is not defined under GAAP and may not be comparable to similarly titled measures used by other companies and should not be considered a substitute for net earnings or other results reported in accordance with GAAP.
The tables below present net sales, significant segment expenses, and segment adjusted EBITDA for the reportable segments for the years ended December 27, 2025, December 28, 2024, and December 30, 2023. See Note 2 - Summary of Significant Accounting Policies for a reconciliation of total reportable segments' revenues to consolidated revenues. Certain amounts in the prior year Consolidated Financial Statements and in the Notes to the Consolidated Financial Statements were reclassified to conform to the current year’s presentation. This had no impact on the prior period's consolidated balance sheets, consolidated statements of comprehensive income (loss), consolidated statements of cash flows, or consolidated statements of stockholders' equity.
| Hardware and Protective Solutions | Year Ended December 27, 2025 | Year Ended December 28, 2024 | Year Ended December 30, 2023 | |||||||||||||||||
| Net Sales | $ | 1,193,957 | $ | 1,107,993 | $ | 1,090,473 | ||||||||||||||
| Significant segment expenses | ||||||||||||||||||||
Adjusted cost of sales (exclusive of depreciation and amortization)(1) | 654,836 | 617,689 | 662,080 | |||||||||||||||||
Adjusted selling expense(2) | 124,033 | 114,351 | 104,060 | |||||||||||||||||
Adjusted Warehouse expense (3) | 144,720 | 143,682 | 143,308 | |||||||||||||||||
Adjusted General and administrative expense(4) | 74,949 | 77,386 | 55,432 | |||||||||||||||||
Other segment items(5) | (831) | (813) | (1,788) | |||||||||||||||||
| Segment Adjusted EBITDA | $ | 196,250 | $ | 155,698 | $ | 127,381 | ||||||||||||||
(1)Adjusted cost of sales (exclusive of depreciation and amortization) excludes an inventory revaluation charge made in the fourth quarter of 2023.
(2)Adjusted selling expense excludes expense related to corporate restructuring activities.
(3)Adjusted warehouse excludes restructuring expense associated with our distribution center relocations and corporate restructuring activities.
(4)Adjusted general and administrative expense excludes stock-based compensation, acquisition and integration costs, expense associated with corporate restructuring and amounts related to the Cybersecurity Incident.
(5)Other excludes an impairment charge related to the write down of intangible assets, primarily related to review of certain product offerings in 2023.
Robotics and Digital Solutions | Year Ended December 27, 2025 | Year Ended December 28, 2024 | Year Ended December 30, 2023 | |||||||||||||||||
| Net sales | $ | 220,157 | $ | 216,701 | $ | 229,546 | ||||||||||||||
| Significant segment expenses | ||||||||||||||||||||
| Cost of sales (exclusive of depreciation and amortization) | 59,817 | 60,233 | 64,389 | |||||||||||||||||
Adjusted selling expense(1) | 67,022 | 60,642 | 60,111 | |||||||||||||||||
Adjusted Warehouse expense (2) | 10,632 | 9,316 | 10,373 | |||||||||||||||||
Adjusted General and administrative expense(3) | 16,505 | 16,019 | 17,880 | |||||||||||||||||
Other segment items(4) | 268 | 216 | 125 | |||||||||||||||||
| Segment Adjusted EBITDA | $ | 65,913 | $ | 70,275 | $ | 76,668 | ||||||||||||||
(1)Adjusted selling expense excludes related to corporate restructuring activities.
(2)Adjusted warehouse expense excludes restructuring expense associated with our distribution center relocations and corporate restructuring activities.
(3)Adjusted general and administrative expense excludes stock compensation expense, acquisition and integration expense, consulting expense and legal charges related to settlements, see Note 15 - Commitments and Contingencies.
(4)Other excludes the gain or loss on the revaluation of our contingent consideration liability, see Note 14 - Fair Value Measurements.
Canada | Year Ended December 27, 2025 | Year Ended December 28, 2024 | Year Ended December 30, 2023 | |||||||||||||||||
| Net sales | $ | 138,110 | $ | 147,901 | $ | 156,458 | ||||||||||||||
| Significant segment expenses | ||||||||||||||||||||
| Cost of sales (exclusive of depreciation and amortization) | 81,222 | 86,769 | 97,495 | |||||||||||||||||
Adjusted selling expense(1) | 14,168 | 14,476 | 13,721 | |||||||||||||||||
Adjusted Warehouse expense (2) | 22,062 | 22,398 | 23,036 | |||||||||||||||||
Adjusted General and administrative expense(3) | 7,423 | 7,748 | 7,062 | |||||||||||||||||
| Other segment items | 81 | 730 | (167) | |||||||||||||||||
| Segment Adjusted EBITDA | $ | 13,154 | $ | 15,780 | $ | 15,311 | ||||||||||||||
(1)Adjusted selling expense excludes restructuring expense.
(2)Adjusted warehouse expense excludes restructuring expense associated with our distribution center relocations and corporate restructuring activities.
(3)Adjusted general and administrative expense excludes stock based compensation and expense associated with corporate restructuring activities.
The following table reconciles segment adjusted EBITDA by segment to the Company’s consolidated income (loss) before income taxes. Certain amounts in the prior year presentation between segments were reclassified to conform to the current year’s presentation.
Year Ended December 27, 2025 | Year Ended December 28, 2024 | Year Ended December 30, 2023 | ||||||||||||||||||
| Hardware and Protective Solutions | $ | 196,250 | $ | 155,698 | $ | 127,381 | ||||||||||||||
| Robotics and Digital Solutions | 65,913 | 70,275 | 76,668 | |||||||||||||||||
| Canada | 13,154 | 15,780 | 15,311 | |||||||||||||||||
| Total adjusted EBITDA | 275,317 | 241,753 | 219,360 | |||||||||||||||||
| Interest expense | 56,467 | 59,241 | 68,310 | |||||||||||||||||
| Depreciation | 79,870 | 68,766 | 59,331 | |||||||||||||||||
| Amortization | 61,232 | 61,274 | 62,309 | |||||||||||||||||
| Stock compensation expense | 14,246 | 13,463 | 12,004 | |||||||||||||||||
| Restructuring and other costs | 4,058 | 2,978 | 3,031 | |||||||||||||||||
| Litigation expense | 1,950 | 5,000 | 339 | |||||||||||||||||
| Transaction and integration expense | 232 | 1,243 | 1,754 | |||||||||||||||||
| Change in fair value of contingent consideration | (240) | 228 | (4,936) | |||||||||||||||||
| Impairment charges | — | — | 24,600 | |||||||||||||||||
| Refinancing costs | 906 | 3,008 | — | |||||||||||||||||
| Total adjusting items | 218,721 | 215,201 | 226,742 | |||||||||||||||||
| Income (loss) before income taxes | $ | 56,596 | $ | 26,552 | $ | (7,382) | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Mar 16, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.