Hillman Solutions Corp. (NASDAQ: HLMN) saw its stock plummet 5.60% in Tuesday's pre-market trading, despite reporting strong third-quarter results and raising its full-year guidance. The company, a leading provider of hardware products and merchandising solutions, announced record net sales and adjusted EBITDA for the quarter ended September 27, 2025.
Hillman reported Q3 net sales of $424.9 million, an 8% increase from the previous year and slightly above analyst expectations of $423.2 million. Adjusted earnings per share came in at $0.22, beating the consensus estimate of $0.20. The company also posted record adjusted EBITDA of $88 million, significantly surpassing analyst projections of $79.7 million.
Despite these positive results, investors seemed to focus on other factors. The company's free cash flow for the quarter decreased to $9.1 million from $39.6 million in the same period last year, which may have raised concerns about cash generation. Additionally, while Hillman maintained its full-year 2025 net sales guidance of $1.535 to $1.575 billion, it only slightly raised its adjusted EBITDA guidance to $270 to $275 million. This modest increase in outlook, coupled with the broader market conditions, may have contributed to the stock's decline.
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