Financial Analysis

"Insurance Coverage The Company self-insures its general liability including product liability, automotive and workers' compensation losses up to $500 per occurrence. Catastrophic coverage has been purchased from third party insurers for occurrences up to $60,000. The two risk areas involving the most significant accounting estimates are workers' compensation and automotive liability. Actuarial valuations performed by the Company's outside risk insurance expert were used by the Company's management to form the basis for workers' compensation and automotive liability loss reserves. The actuary contemplated the Company's specific loss history, actual claims reported, and industry trends among statistical and other factors to estimate the range of reserves required. Risk insurance reserves are comprised of specific reserves for individual claims and additional amounts expected for development of these claims, as well as for incurred but not yet reported claims. The Company believes that the liability of approximately $3,419 recorded for such risks is adequate as of March 28, 2026. As of March 28, 2026, the Company has provided certain vendors and insurers letters of credit aggregating to $3,250 related to our product purchases and insurance coverage for product liability, workers compensation, and general liability. The Company self-insures group health claims up to an annual stop loss limit of $300 per participant. Historical group insurance loss experience forms the basis for …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following tables display our disaggregated revenue by product category. Certain amounts in the prior year presentation between segments were reclassified to conform to the current years presentation. See Note 15 - Segment Reporting for more information. Thirteen weeks ended March 28, 2026 Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue Fastening and Hardware $ 224,916 $ $ 28,827 $ 253,743 Personal Protective 56,392 1,330 57,722 Keys and Key Fobs 46,930 2,538 49,468 Engraving and Resharp 9,132 8 9,140 Total Revenue $ 281,308 $ 56,062 $ 32,703 $ 370,073 Thirteen weeks ended March 29, 2025 Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue Fastening and Hardware $ 209,548 $ $ 25,050 $ 234,598 Personal Protective 68,461 1,231 69,692 Keys and Key Fobs 42,979 2,136 45,115 Engraving and Resharp 9,931 7 9,938 Total Revenue $ 278,009 $ 52,910 $ 28,424 $ 359,343 The following tables disaggregate our revenue by geographic location. Certain amounts in the prior year presentation between segments were reclassified to conform to the current years presentation. See Note 15 - Segment Reporting for more information. Thirteen weeks ended March 28, 2026 Hardware and Protective Solutions Robotics and Digital Solutions Canada Total Revenue United States $ 277,223 $ 56,062 $ $ 333,285 Canada 32,703 32,703 Mexico 4,085 4,085 Consolidated $ 281,308 $ 56,062 $ 32,703 $ 370,073 Thirteen weeks ended March 29, 2025 Hardware and …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"2014 Equity Incentive Plan The 2014 Equity Incentive Plan may grant options, stock appreciation rights, restricted stock, and other stock-based awards for up to an aggregate of 14,523,510 shares of its common stock. The 2014 Equity Incentive Plan did not have any stock compensation expense recognized in the thirteen weeks ended March 28, 2026. Stock compensation expense of $73 was recognized in the thirteen weeks ended March 29, 2025. Stock Options The fair value of stock options is determined at the grant date using the Black-Scholes option pricing model. The time-based stock option awards generally vest evenly over four years from the grant date and performance-based options vest based on Company stock price hurdles. Restricted Stock Units The Restricted Stock Units (""RSUs"") granted to employees for service generally vest after three years, subject to continued employment. 2021 Equity Incentive Plan Effective July 14, 2021, the Company established the 2021 Equity Incentive Plan. On June 3, 2025, the 2021 Equity Incentive Plan was amended to increase the share reserve by 1,800,000 shares of common stock (the 2021 Equity Incentive Plan as amended is referred to as the 2021 Plan). Under the 2021 Plan, as amended, the maximum number of shares of common stock that may be delivered in satisfaction of awards under the 2021 Plan as of the Effective Date is (i) 10,950,814 shares, plus (ii) the number of shares of stock underlying awards under the 2014 Equity Incentive Plan that o …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

The Company uses the accounting guidance that applies to all assets and liabilities that are being measured and reported on a fair value basis. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entitys own assumptions. The accounting guidance establishes a hierarchy which requires an entity to maximize the use of quoted market prices and minimize the use of unobservable inputs. An asset or liability's level is based on the lowest level of input that is significant to the fair value measurement. The following tables set forth the Companys financial assets and liabilities that were measured at fair value on a recurring basis during the period, by level, within the fair value hierarchy: As of March 28, 2026 Level 1 Level 2 Level 3 Total Trading securities $ 773 $ $ $ 773 Interest rate swaps 70 70 Foreign exchange forward contracts 2,615 2,615 Contingent co …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Goodwill amounts by reportable segment are summarized as follows: Goodwill at Acquisitions Dispositions Other (1) Goodwill at December 27, 2025 March 28, 2026 Hardware and Protective Solutions $ 592,527 $ $ $ 29 $ 592,556 Robotics and Digital Solutions 210,356 210,356 Canada 27,864 (404) 27,460 Total $ 830,747 $ $ $ (375) $ 830,372 (1) The ""Other"" change to goodwill relates to adjustments resulting from fluctuations in foreign currency exchange rates for the Canada, Hardware Solutions, and Protective Solutions reporting units. Other intangibles, net, as of March 28, 2026 and December 27, 2025 consist of the following: Estimated Useful Life (Years) March 28, 2026 December 27, 2025 Customer relationships 9 - 20 $ 956,495 $ 956,880 Trademarks - indefinite Indefinite 85,191 85,274 Trademarks - other 2 - 15 29,549 29,549 Technology and patents 5 - 12 67,262 67,216 Intangible assets, gross 1,138,497 1,138,919 Less: Accumulated amortization 607,790 592,748 Other intangibles, net $ 530,707 $ 546,171 The amortization expense for intangible assets for the thirteen weeks ended March 28, 2026 was $15,276, and the thirteen weeks ended March 29, 2025 was $15,415, respectively. The Company tests goodwill and indefinite-lived intangible assets for impairment annually in the fourth quarter. Impairment is also tested when events or changes in circumstances indicate that the carrying values of the assets may be greater than their fair values. During the thirteen weeks ended March 28, 2026, t …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

ASC 740 requires companies to apply their estimated annual effective tax rate on a year-to-date basis in each interim period. These rates are derived, in part, from expected annual pre-tax income or loss. In the thirteen weeks ended March 28, 2026, the Company applied an estimated annual effective tax rate based on expected annual pre-tax income to the interim period pre-tax loss to calculate the income tax benefit. For the thirteen weeks ended March 28, 2026, the effective income tax rate was 18.3%. The Company recorded an income tax benefit for the thirteen weeks ended March 28, 2026 of $1,059. The difference between the expected statutory tax rate and the effective tax rate for the thirteen weeks ended March 28, 2026 was the result of certain non-deductible expenses and state and foreign income taxes. For the thirteen weeks ended March 29, 2025, the effective income tax rate was 9.7%. The Company recorded an income tax benefit for the thirteen weeks ended March 29, 2025 of $34. The effective tax rate for the thirteen weeks ended March 29, 2025 was the result of certain non-deductible expenses and state and foreign income taxes. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the U.S. The legislation included several provisions that impact the timing and magnitude of certain tax deductions, including, among others, making 100% bonus depreciation permanent, allowing for the expensing of domestic research costs, and modifying the business interest expen …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Lessee The Company determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both 1) the right to obtain substantially all of the economic benefits from the use of the asset and 2) the right to direct the use of the asset. The Company leases certain distribution center locations, vehicles, forklifts, computer equipment, and its corporate headquarters with expiration dates through 2042. Certain lease arrangements include escalating rent payments and options to extend the lease term. Expected lease terms include these options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. The Company's leasing arrangements do not contain material residual value guarantees, nor material restrictive covenants. The components of operating and finance lease costs for the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025 were as follows: Thirteen Weeks Ended March 28, 2026 Thirteen Weeks Ended March 29, 2025 Operating lease costs $ 6,292 $ 5,648 Short term lease costs 1,239 713 Variable lease costs 143 602 Finance lease costs: Amortization of right of use assets 1,501 1,271 Interest on lease liabilities 281 223 Rent expense is recognized on a straight-line basis over the …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"The following table summarizes the Companys debt: March 28, 2026 December 27, 2025 Revolving loans $ 83,162 $ 36,000 Senior Term Loan, due 2028 634,832 636,960 Finance lease & other obligations 19,851 20,090 737,845 693,050 Unamortized discount on Senior Term Loan (1,876) (2,087) Current portion of long-term debt and finance leases (14,898) (14,830) Deferred financing fees (7,016) (7,796) Total long-term debt, net $ 714,055 $ 668,337 As of March 28, 2026, the Asset-Backed Loan (""ABL"") Revolver had an outstanding balance of $83,162, and had outstanding letters of credit of $3,250. Certain portions of the ABL Revolver are separately available to the Companys United States and Canadian subsidiaries, each of which currently maintains outstanding borrowings of $81,000 and $2,162, respectively. The Company has $254,691 of available borrowings under the revolving credit facility as a source of liquidity as of March 28, 2026 based on the customary ABL borrowing base and availability provisions. On January 14, 2025, the Company entered into a Repricing Amendment (2025 Repricing Amendment) on its existing Senior Term Loan due July 14, 2028. The 2025 Repricing Amendment (i) reduces the interest rate per annum applicable to the Term Loan outstanding from SOFR plus a margin varying from 2.25% to 2.50% to SOFR plus a margin of 2.00%, as well as a 1.00% margin for ABR Loans and (ii) implements a 1% prepayment premium for the existing Term Loan to apply to Repricing Transactions that …

LongTermDebtTextBlock · excerpt; the full note is in the filing

On January 6, 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-01, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures: Disaggregation of Income Statement Expenses, as an amendment to ASU 2024-03. This ASU mandates that public business entities provide detailed disclosures in the notes to their financial statements, breaking down certain expense categories presented on the income statement into specified natural expense components. This enhanced disclosure aims to provide investors with more detailed information about the types of expenses included in commonly presented expense captions, such as cost of sales, selling, general, and administrative expenses (SG&A), and research and development. The amendments introduced by ASU 2025-01 are effective for public business entities for fiscal years beginning after December 15, 2026 and for interim periods beginning after December 15, 2027 with early adoption permitted. The Company is currently evaluating the impact provided by the new standard. In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05), which provides a practical expedient to measure credit losses on current accounts receivable and current contract assets under Accounting Standards Codification 606, Revenue from Contracts with Customers. The practical expedient assu …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Sales to related parties, which are included in net sales, consist of the sale of excess inventory to Ollie's Bargain Outlet Holdings, Inc. (""Ollie's""). John Swygert, Executive Chairman of Ollie's since 2025, and before that President and Chief Executive Officer of Ollie's, is a member of our Board of Directors. Sales to related parties were $203 in the thirteen weeks ended March 28, 2026 and immaterial in the thirteen weeks ended March 29, 2025. In late 2024, the Company signed a contract with Ollie's to place Minute Key and Quick-Tag machines in select Ollie's locations. The Company paid royalty shares to Ollie's as a result of this agreement. The payments to related parties were immaterial in the thirteen weeks ended March 28, 2026 and in the thirteen weeks ended March 29, 2025."

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The Companys segment reporting structure uses the Companys management reporting structure as the foundation for how the Company manages its business. 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 March 28, 2026. 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. For a reconciliation of our segment sales by product category and geographic area, please see Note 2 - Summary of Significant Accounting Policies. The tables below present net sales, significant segment expenses, and segment adjusted EBITDA for the reportable segments for the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025. 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 Condensed Consolidated Financial Statements and in the Notes to the Condensed Consolidated Financial Statements were reclassified to conform to the current y …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

The significant accounting policies should be read in conjunction with the significant accounting policies included in the Form 10-K filed on February 17, 2026 with the SEC. Use of Estimates in the Preparation of Financial Statements: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses for the reporting periods. Actual results may differ from these estimates. Share Repurchase Program: On July 31, 2025, the Board of Directors of the Company authorized a share repurchase program of up to $100,000 (the Repurchase Program) of the Company's common stock. The Company accounts for the repurchase of its common stock under the cost method. Under this method, the repurchased shares are recorded at their cost as a reduction of stockholders' equity. Upon repurchase, the treasury stock account is debited for the cost paid, and the cash account is credited. When treasury shares are reissued, any excess of the reissuance price over the repurchase cost is credited to additional paid-in capital. If the reissuance price is less than the repurchase cost, the difference is first debited to additional paid-in capital (from previous treasury stock transactions) and then to retained earnings. Th …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Common Stock Hillman Solutions Corp. has one class of common stock. Share Repurchases On July 31, 2025, the Board of Directors of the Company authorized a share repurchase program of up to $100,000 (the Repurchase Program) of the Company's common stock. The Repurchase Program permits shares of common stock to be repurchased from time to time at management's discretion, through a variety of methods, including a 10b5-1 trading plan, open market purchases, privately negotiated transactions or transactions otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The timing and number of shares of common stock repurchased will be opportunistic depending on a variety of factors, including price, general business and market conditions, alternative investment opportunities and funding considerations. The Repurchase Program does not obligate the Company to repurchase any specific number of shares of common stock and may be suspended or discontinued at any time. The following table presents information about our repurchases of common stock, all of which were completed through open market purchases (amounts in thousands): Thirteen weeks ended March 28, 2026 Total number of shares repurchased (1,221) Total cost of shares repurchased (1) $ (10,116) (1) The Companys share repurchases are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. Excise taxes incurred on share repurchases represent direct costs of the repurchase and …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

"On April 3, 2026, the Company completed the acquisition of Campbell Chain and Fittings (Campbell) from Apex Tool Group. Campbell is a widely recognized provider of industrial chain and chain-related products including welded and weldless chain, forged fittings, overhead lifting, and lifting clamp products. Campbell has business operations in North America and its financial results will reside in the Company's Hardware and Protective Solutions reportable segment. On April 10, 2026, the Company completed the acquisition of Delaney Hardware (""Delaney""). Delaney Hardware is a U.S.-based supplier of door hardware and related products used in residential, multifamily, and commercial construction. Their core offerings include door hardware for residential, multi-family & light commercial, builders-grade hardware, sliding door & specialty hardware, bath & trim hardware and builder & project services (keying, project quotes). Delaney's financial results will reside in the Company's Hardware and Protective Solutions reportable segment."

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