Hillman Solutions Corp.
For the period ended Jun 27, 2026. Filed Aug 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 27, 2026 · Filed Aug 4, 2026
HLMN$8.32-2.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-28; filed 2026-04-28.
0001822492-26-000084
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-27; filed 2026-08-04.
0001822492-26-000137
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 107 previous paragraphs and 165 current paragraphs.
56 unchanged; 35 reworded; 59 added; 13 removed; 3 previous and 15 current paragraphs rearranged.
Tables are not compared: 8 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (59)
Current report
Tariff Environment
Current report
On February 20, 2026, the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). On April 15, 2026, Hillman filed a lawsuit in the U.S. Court of International Trade against the United States of America seeking a full refund of all IEEPA tariffs that Hillman has paid to the United States. We elected to apply a gain contingency model in accordance with ASC 450-30, “Gain Contingencies” to account for potential recoveries of previously paid tariffs under which a gain will not be recognized until realized or realizable. Additionally, after the Supreme Court ruling in February, the U.S. administration almost immediately instituted new tariffs against most major trading partners, and has previewed future actions that could restore or exceed the level of the IEEPA tariffs. We expect that the impact of these additional tariffs will partially offset any benefit of the IEEPA refunds that we will receive in the current year. Future adverse effects on our financial results will likely continue if tariff levels persist, continue to rise, or remain volatile. We are currently developing and implementing mitigation strategies (such as price increases and sourcing changes, among others) and determining future implementation timelines, though there is no assurance that these efforts will be successful.
Current report
Acquisition of Campbell Chain and Fittings
Current report
On April 3, 2026, the Company completed the acquisition of Campbell Chain and Fittings ("Campbell"), a widely recognized provider of industrial chain and chain-related products for a total purchase price of $2,600. Campbell adds US-based manufacturing and complements our existing chain business.
Current report
Acquisition of Delaney Hardware
Current report
On April 10, 2026, the Company completed the acquisition of Delaney Hardware (“Delaney”), a U.S.-based supplier of door hardware and related products used in residential, multifamily, and commercial construction for a total purchase price of $4,618. Delaney has business operations in North America and its financial results reside in the Company's Hardware and Protective Solutions reportable segment.
Current report
Our Hardware and Protective Solutions' segment increased by $30.1 million, or 9.9%. Primarily driving the increase was a 4.1% increase in core performance and 1.5% increase in new business wins, along with sales related to the Delaney and Campbell acquisitions of $13.7 million. Our increase in core performance was impacted by a low double digit increase from pricing partially offset by a high single digit decrease in volume.
Current report
Lastly, our Canada segment increased by $3.2 million, or 7.8%. Primarily driving the increase was 13.6% in new business wins. Our core performance was down 5.8% due to soft market volumes.
Current report
Canada's cost of sales as a percentage of net sales increased primarily due to higher tariffs implemented on steel products.
Current report
Selling, Warehouse, General and Administrative Expenses
Current report
•Selling expense increased $3.0 million due to expenses associated with our pro growth strategy and other initiatives.
Current report
•Warehouse expense increased $2.1 million primarily due to increased compensation and freight costs.
Current report
•General and administrative (“G&A”) expense was comparable to prior year.
Current report
Canada's SG&A was comparable to prior year.
Current report
Income from operations in our Hardware and Protective Solutions segment increased $4.7 million due to the changes in net sales, cost of sales, SG&A expenses, and other income described above partially offset by an increase in depreciation expense of $0.7 million due to capital spend on merchandising racks.
Current report
Canada's income from operations increased by $0.4 million primarily due to the changes in net sales, cost of sales and SG&A expenses described above offset by the change in exchange rate losses of $0.6 million in the thirteen weeks ended June 27, 2026.
Current report
In 2026, the effective tax rate differed from the U.S. federal statutory tax rate due to state and foreign income taxes and certain non-deductible expenses, offset by the non-taxable gain on the acquisition of Campbell Chain and Fittings.
Current report
In 2025, the effective tax rate differed from the U.S. federal statutory tax rate due to state and foreign income taxes and certain non-deductible expenses. See Note 8 - Income Taxes of the Notes to Condensed Consolidated Financial Statements for additional information.
Current report
Twenty-six weeks ended June 27, 2026 vs the Twenty-six weeks ended June 28, 2025
Current report
•Net sales for the twenty-six weeks ended June 27, 2026 were $812.3 million compared to $762.1 million for the twenty-six weeks ended June 28, 2025, an increase of approximately $50.2 million or 6.6%.
Current report
•Net income for the twenty-six weeks ended June 27, 2026 was $16.4 million, or $0.08 per diluted share, compared to net income of $15.5 million, or $0.08 per diluted share for the twenty-six weeks ended June 28, 2025.
Current report
•Adjusted EBITDA(1) totaled $127.2 million versus $129.8 million in the twenty-six weeks ended June 27, 2026 and in the twenty-six weeks ended June 28, 2025, respectively.
Current report
RESULTS OF OPERATIONS
Current report
Net Sales by Segment
Current report
The increase in total net sales during the twenty-six weeks ended June 27, 2026 was primarily driven by the factors described below:
Current report
Hardware and Protective Solutions' net sales increased by $33.4 million or 5.7% in the twenty-six weeks ended June 27, 2026. Primarily driving the increase was a 1.5% increase in core performance and a 1.9% increase in new business wins, along with sales related to the Delaney and Campbell acquisitions of $13.7 million. Our increase in core performance was impacted by a low double digit increase from pricing partially offset by a high single digit decrease in volume.
Current report
Robotics and Digital Solutions' net sales in the twenty-six weeks ended June 27, 2026 increased by $9.2 million or 8.5%. Primarily driving the increase was an 11.6% increase in new business wins partially offset by a 3.1% decrease in core performance. Core performance within RDS was positively impacted by high-single digit price increases which were more than offset by low double digit volume decreases.
Current report
Canada's cost of sales as a percentage of net sales increased primarily due to higher tariffs on steel products.
Current report
Selling, Warehouse, General and Administrative Expenses
Current report
32 | June 27, 2026 Form 10-Q
Current report
•Selling expense increased by $4.5 million primarily due to expenses associated with our pro growth strategy and other initiatives.
Current report
•Warehouse expense increased $2.8 million primarily due to increased compensation and freight costs.
Current report
•General and administrative (“G&A”) expense was comparable to prior year.
Current report
Canada's SG&A increased due to the following:
Current report
Other Operating Expenses
Current report
Depreciation expense increased $5.3 million due to capital spend on merchandising racks along with key duplication kiosks.
Current report
Amortization expense in the twenty-six weeks ended June 27, 2026 decreased by $0.2 million primarily due to some intangible assets being fully amortized.
Current report
In the twenty-six weeks ended June 27, 2026, other income (expense) increased by $4.1 million consisting primarily of a $4.7 million gain on the acquisition of Campbell Chain and Fittings (see Note 4 - Acquisitions of the Notes to Condensed Consolidated Financial Statements for additional information) along with a $0.4 million gain on the revaluation of the contingent consideration associated with the acquisition of Resharp and Instafob (see Note 15 - Fair Value Measurements of the Notes to Condensed Consolidated Financial Statements for additional information). In addition, we recorded income related to certain rebates received of $0.7 million along with exchange rate losses of $0.6 million in the twenty-six weeks ended June 27, 2026.
Current report
In the twenty-six weeks ended June 28, 2025, other income (expense) consisted primarily of a $0.6 million gain on the revaluation of the contingent consideration associated with the acquisition of Resharp and Instafob. In addition, we recorded income related to certain rebates received of $0.4 million along with exchange rate gains of $0.1 million in the twenty-six weeks ended June 28, 2025.
Current report
33 | June 27, 2026 Form 10-Q
Showing the first 40 of 59 passages. Open the source sections for the rest.
Removed paragraphs (13)
Previous report
On February 20, 2026, the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). On April 15, 2026, Hillman filed a lawsuit in the U.S. Court of International Trade against the United States of America seeking a full refund of all IEEPA tariffs that Hillman has paid to the United States. The financial impact of these events is uncertain, as it is unclear to what extent duties will be refunded by CBP, how effective the refund process will be, the timeline that refunds could be issued, or if we can fully collect on any refunds owed. We are evaluating the impact of these developments on our business and financial statements. No adjustments have been recorded in the accompanying unaudited condensed consolidated financial statements as we cannot reasonably estimate the financial impact; however, it is reasonably possible that it could be material.
Previous report
Our Hardware and Protective Solutions segment increased by $3.3 million, or 1.2%. Primarily driving the increase was 2.9% in new business wins, partially offset by a 1.7% decline in core performance. Our core performance was by impacted low double digit volume declines partially offset by a low double digit increase from pricing increases.
Previous report
Canada cost of sales as a percentage of net sales increased primarily due to increased product and shipping costs along with customer and product mix.
Previous report
Selling, Warehouse, and General and Administrative Expenses
Previous report
•Selling expense increased $1.5 million due to increased compensation costs.
Previous report
•Warehouse expense increased $0.7 million primarily due to costs associated with our Cincinnati, Ohio distribution center consolidation project.
Previous report
Canada SG&A increased due to the following:
Previous report
Income from operations in our Hardware and Protective Solutions segment decreased $7.5 million due to the changes in net sales, cost of sales, and SG&A expenses described above and an increase in depreciation expense of $0.6 million due to capital spend on merchandising racks.
Previous report
Canada's income from operations was comparable with the prior year.
Previous report
In 2026 and 2025, the effective tax rate differed from the U.S. federal statutory tax rate due to state and foreign income taxes and certain non-deductible expenses.
Previous report
Net cash used for operating activities for the thirteen weeks ended March 28, 2026 was unfavorably impacted by increases in accounts receivable and timing of supplier payments due to the seasonality of our business.
Previous report
30 | March 28, 2026 Form 10-Q
Previous report
31 | March 28, 2026 Form 10-Q
Reworded paragraphs (35)
Previous wording
Hillman Solutions Corp. and its wholly-owned subsidiaries (collectively, “Hillman” or “Company”) are one of the largest providers of hardware-related products and related merchandising services to retail markets in North America. Our principal business is operated through our wholly-owned subsidiary, Hillman Solutions Corp. and its wholly-owned subsidiaries (collectively, “Hillman Group”), which had net sales of $370.1 million in the thirteen weeks ended March 28, 2026. Hillman sells its products to hardware stores, home improvement centers, mass merchants, pet supply stores, and other retail outlets principally in the United States, Canada, and Mexico. Product lines include thousands of small hardware parts such as fasteners and related items; threaded rod and metal shapes; keys and accessories; builder's hardware; personal protective equipment, such as gloves and eyewear; rope and chain; and identification items, such as tags and letters, numbers, and signs. We support product sales
Current wording
Hillman Solutions Corp. and its wholly-owned subsidiaries (collectively, “Hillman” or “Company”) are one of the largest providers of hardware-related products and related merchandising services to retail markets in North America. Our principal business is operated through our wholly-owned subsidiary, Hillman Solutions Corp. and its wholly-owned subsidiaries (collectively, “Hillman Group”), which had net sales of $442.3 million in the thirteen weeks ended June 27, 2026 and $812.3 million in the twenty-six weeks ended June 27, 2026. Hillman sells its products to hardware stores, home improvement centers, mass merchants, pet supply stores, and other retail outlets principally in the United States, Canada, and Mexico. Product lines include thousands of small hardware parts such as fasteners and related items; threaded rod and metal shapes; keys and accessories; builder's hardware; personal protective equipment, such as gloves and eyewear; rope and chain; and identification items,
Previous wording
with services that include design and installation of merchandising systems, maintenance of appropriate in-store inventory levels, and break-fix for our robotics kiosks.
Current wording
such as tags and letters, numbers, and signs. We support product sales with services that include design and installation of merchandising systems, maintenance of appropriate in-store inventory levels, and break-fix for our robotics kiosks.
Previous wording
We are exposed to the risk of unfavorable changes in foreign currency exchange rates for the U.S. dollar versus local currency of our suppliers, particularly those located in China and Taiwan, because we purchase a majority of our products for resale from multiple vendors located in these countries. The purchase price of these products is routinely negotiated in U.S. dollar amounts rather than the local currency of the vendors and our suppliers' profit margins decrease when the U.S. dollar declines in value relative to the local currency. This puts pressure on our suppliers to increase prices to us. The U.S. dollar declined in value relative to the CNY by approximately 1.4% in the thirteen weeks ended March 28, 2026, declined by 4.0% in 2025, and increased by 2.8% in 2024. The U.S. dollar increased in value relative to the Taiwan dollar by approximately 1.7% in the thirteen weeks ended March 28, 2026, declined by 4.2% in 2025, and increased by 7.1% in 2024.
Current wording
We are exposed to the risk of unfavorable changes in foreign currency exchange rates for the U.S. dollar versus local currency of our suppliers, particularly those located in China and Taiwan, because we purchase a majority of our products for resale from multiple vendors located in these countries. The purchase price of these products is routinely negotiated in U.S. dollar amounts rather than the local currency of the vendors and our suppliers' profit margins decrease when the U.S. dollar declines in value relative to the local currency. This puts pressure on our suppliers to increase prices to us. The U.S. dollar declined in value relative to the CNY by approximately 3.0% in the twenty-six weeks ended June 27, 2026, declined by 4.0% in 2025, and increased by 2.8% in 2024. The U.S. dollar increased in value relative to the Taiwan dollar by approximately 1.4% in the twenty-six weeks ended June 27, 2026, declined by 4.2% in 2025, and increased by 7.1% in 2024.
Previous wording
We are also exposed to risk of unfavorable changes in the Canadian dollar exchange rate versus the U.S. dollar. Our sales in Canada are denominated in Canadian dollars, while a majority of the products are sourced in U.S. dollars. A weakening of the Canadian dollar versus the U.S. dollar results in lower sales in terms of U.S. dollars while the cost of sales remains unchanged. We have a practice of hedging some of our Canadian subsidiary's purchases denominated in U.S. dollars. The U.S. dollar increased in value relative to the Canadian dollar by approximately 1.5% in the thirteen weeks ended March 28, 2026, declined by 5.2% in 2025, and increased by 9.0% in 2024.
Current wording
We are also exposed to risk of unfavorable changes in the Canadian dollar exchange rate versus the U.S. dollar. Our sales in Canada are denominated in Canadian dollars, while a majority of the products are sourced in U.S. dollars. A weakening of the Canadian dollar versus the U.S. dollar results in lower sales in terms of U.S. dollars while the cost of sales remains unchanged. We have a practice of hedging some of our Canadian subsidiary's
Previous wording
We import products, which are subject to customs requirements and to tariffs and quotas set by governments, through mutual agreements and bilateral actions. The historical U.S. tariffs on steel and aluminum and other imported goods have increased our product costs and required us to increase prices on the affected products. Current uncertainties about increases in tariffs of imported products from countries may have an adverse effect
Current wording
We import products, which are subject to customs requirements and to tariffs and quotas set by governments, through mutual agreements and bilateral actions. The historical U.S. tariffs on steel and aluminum and other imported goods have increased our product costs and required us to increase prices on the affected products. Current uncertainties about increases in tariffs of imported products from countries may have an adverse effect on our results. (see Recent Developments - Tariff Environment of Item 2 - Management’s Discussion and Analysis above and Risk Factors of Part II - Other Information for additional information).
Previous wording
•Net sales for the thirteen weeks ended March 28, 2026 were $370.1 million compared to net sales of $359.3 million for the thirteen weeks ended March 29, 2025, an increase of approximately $10.7 million or 3.0%.
Current wording
•Net sales for the thirteen weeks ended June 27, 2026 were $442.3 million compared to net sales of $402.8 million for the thirteen weeks ended June 28, 2025, an increase of approximately $39.4 million or 9.8%.
Previous wording
•Net loss for the thirteen weeks ended March 28, 2026 was $(4.7) million, or $(0.02) per diluted share, compared to a net loss of $(0.3) million, or $(0.00) per diluted share for the thirteen weeks ended March 29, 2025.
Current wording
•Net income for the thirteen weeks ended June 27, 2026 was $21.1 million, or $0.11 per diluted share, compared to net income of $15.8 million, or $0.08 per diluted share for the thirteen weeks ended June 28, 2025.
Previous wording
•Adjusted EBITDA(1) totaled $50.1 million versus $54.5 million in the thirteen weeks ended March 28, 2026 and in the thirteen weeks ended March 29, 2025, respectively.
Current wording
•Adjusted EBITDA(1) totaled $77.1 million versus $75.2 million in the thirteen weeks ended June 27, 2026 and in the thirteen weeks ended June 28, 2025, respectively.
Previous wording
(1)Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section for additional information, including our definition and our use of Adjusted EBITDA, and for a reconciliation from net loss to Adjusted EBITDA.
Current wording
(1)Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section for additional information, including our definition and our use of Adjusted EBITDA, and for a reconciliation from net income to Adjusted EBITDA.
Previous wording
We evaluate our net sales growth by measuring changes from new business wins (e.g. new customers, new product lines, or categories at existing customers), mergers and acquisitions, and core performance of the existing business. We define core performance as the impact of the following factors on our existing base of business: market volume growth, change in customer footprint, product category management, price increases and/or decreases, and the impact of foreign currency exchange. During the quarter, our business was impacted by macroeconomic influences like economic uncertainty and concerns over housing affordability resulting from the combined pressure of high home prices and elevated interest rates, both of which impact existing home sales and repair and remodel spending on the home. During the first quarter of 2026, net sales increased by $10.7 million or 3.0%.
Current wording
We evaluate our net sales growth by measuring changes from new business wins (e.g. new customers, new product lines, or new categories at existing customers), mergers and acquisitions, and core performance of the existing business. We define core performance as the impact of the following factors on our existing base of business: market volume growth, change in customer footprint, product category management, price increases and/or decreases, and the impact of foreign currency exchange. During the quarter, our business was impacted by macroeconomic influences like economic uncertainty and concerns over housing affordability resulting from the combined pressure of high home prices and elevated interest rates, both of which impact existing home sales and repair and remodel spending on the home. During the second quarter of 2026, net sales increased by $39.4 million or 9.8%.
Previous wording
Our Robotics and Digital Solutions segment increased by $3.2 million, or 6.0%. Primarily driving the increase was 9.0% in new business wins offset by a 3.0% decrease in core performance. Core performance within RDS was negatively impacted by low double digit volume declines partially offset by the high single digit impact of price increases.
Current wording
Our Robotics and Digital Solutions' segment increased by $6.1 million, or 11.0%. Primarily driving the increase was 13.5% in new business wins partially offset by a 2.6% decrease in core performance. Core performance within RDS was positively impacted by a low double digit impact of price increases which was more than offset by a mid single digit decrease in volume.
Previous wording
Hardware and Protective Solutions' cost of sales as a percentage of net sales increased primarily due increased tariff costs and change in product costs.
Current wording
Hardware and Protective Solutions' cost of sales as a percentage of net sales increased primarily due to increased tariff costs and product costs.
Previous wording
The following table summarizes selling, warehouse, and general and administrative expense ("SG&A") by segment:
Current wording
The following table summarizes selling, warehouse, general and administrative expense ("SG&A") by segment:
Previous wording
•Selling expense increased $2.9 million primarily due to increased variable selling expenses due to the shift from full-service keys to self-service keys, which have a higher variable selling cost.
Current wording
•Selling expense increased $5.1 million primarily due to increased variable selling expenses due to the shift from full-service keys to self-service keys, which have a higher variable selling cost.
Previous wording
Depreciation expense increased $2.6 million due to capital spend on merchandising racks and key duplication kiosks.
Current wording
Depreciation expense increased $2.7 million due to capital spend on merchandising racks and key duplication kiosks.
Previous wording
Amortization expense in the thirteen weeks ended March 28, 2026 was comparable to prior year quarter.
Current wording
Amortization expense in the thirteen weeks ended June 27, 2026 decreased 0.2% due to certain intangible assets being fully amortized.
Previous wording
In the thirteen weeks ended March 28, 2026, other income (expense) consisted primarily of a $0.5 million gain on the revaluation of the contingent consideration associated with the acquisition of Resharp and Instafob (see Note 14 - Fair Value Measurements of the Notes to Condensed Consolidated Financial Statements for additional information) along with $0.2 million in rebate income. This was partially offset by exchange rate losses of $0.2 million.
Current wording
In the thirteen weeks ended June 27, 2026, other income (expense) increased by $3.9 million consisting primarily of a $4.7 million gain on the acquisition of Campbell Chain and Fittings (see Note 4 - Acquisitions of the Notes to Condensed Consolidated Financial Statements for additional information) along with a $0.2 million loss on the revaluation of the contingent consideration associated with the acquisition of Resharp and Instafob (see Note 15 - Fair Value Measurements of the Notes to Condensed Consolidated Financial Statements for additional information) and $0.4 million in rebate income. This was partially offset by exchange rate losses of $0.4 million.
Previous wording
In the thirteen weeks ended March 29, 2025, other income (expense) consisted primarily of a $0.3 million gain on the revaluation of the contingent consideration associated with the acquisition of Resharp and Instafob.
Current wording
In the thirteen weeks ended June 28, 2025, other income (expense) consisted primarily of exchange rate gains of $0.3 million in the thirteen weeks ended June 28, 2025, and a $0.2 million gain on the revaluation of the contingent consideration associated with the acquisition of Resharp and Instafob. In addition, we recorded income related to certain rebates received of $0.2 million.
Previous wording
Income from operations in our Robotics and Digital Solutions segment decreased $0.4 million. The $0.4 million decrease is primarily due to the changes in net sales, cost of sales, and SG&A expenses described above, and an increase in depreciation expense of $1.9 million due to capital spend on key duplication kiosks and machines. Additionally, we saw an increase of $0.2 million in other income driven by the changes in revaluation of the contingent consideration described above.
Current wording
Income from operations in our Robotics and Digital Solutions segment decreased $0.5 million. The $0.5 million decrease is primarily due to the changes in net sales, cost of sales, and SG&A expenses described above, and an increase in depreciation expense of $1.9 million due to capital spend on key duplication kiosks and machines. Additionally, we saw a decrease of $0.4 million in other income driven by the changes in revaluation of the contingent consideration described above.
Previous wording
Interest expense, net, decreased $1.5 million in the thirteen weeks ended March 28, 2026 primarily due to a reduction in outstanding debt and a reduction in interest rate spreads driven by the debt repricing in the first quarter of 2025(see Note 9 - Long-term Debt of the Notes to Condensed Consolidated Financial Statements for additional information).
Current wording
Interest expense, net, decreased $0.9 million in the thirteen weeks ended June 27, 2026 primarily due to a reduction in outstanding debt and a reduction in interest rate spreads driven by the debt repricing in the first quarter of 2025(see Note 9 - Long-term Debt of the Notes to Condensed Consolidated Financial Statements for additional information).
Previous wording
For the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025, the effective income tax rate was 18.3% and 9.7%, respectively. The Company recorded an income tax benefit for the thirteen weeks ended March 28, 2026 of $1.1 million based on a pre-tax loss of $5.8 million, and an income tax benefit for the thirteen weeks ended March 29, 2025 of $0.03 million based on a pre-tax loss of $0.35 million.
Current wording
For the thirteen weeks ended June 27, 2026 and thirteen weeks ended June 28, 2025, the effective income tax rate was 24.3% and 29.4%, respectively. The Company recorded an income tax provision for the thirteen weeks ended June 27, 2026 of $6.8 million based on a pre-tax income of $27.9 million, and an income tax provision for the thirteen weeks ended June 28, 2025 of $6.6 million based on a pre-tax income of $22.4 million.
Previous wording
Lastly, our Canada segment increased by $4.3 million, or 15.1%. Primarily driving the increase was 15.5% in new business wins, partially offset by a 0.4% decline in core performance. Canada's core performance was negatively impacted by mid-single digit volume declines partially offset by the favorable mid-single digit impact of foreign exchange.
Current wording
Lastly, our Canada net sales increased by $7.5 million or 10.7%. Primarily driving the increase was 14.2% in new business wins offset by a 3.4% decrease in core performance. Canada's core performance was negatively impacted by mid-single digit market softness offset by the favorable low-single digit impact of price increases.
Previous wording
•G&A expense decreased $0.5 million primarily due to reduced variable compensation.
Current wording
•G&A expense decreased $0.4 million due to reduced compensation and benefit expense.
Previous wording
•Selling expense increased by $0.5 million primarily due increased variable selling expenses.
Current wording
•Selling expense increased by $0.8 million primarily due to increased variable selling expenses.
Previous wording
•Warehouse expense increased by $0.2 million primarily due primarily due to higher sales volumes.
Current wording
•Warehouse expense increased $0.3 million primarily due to higher sales volumes.
Previous wording
•General and administrative expense (“G&A”) was comparable to prior year.
Current wording
•G&A was comparable to prior year.
Previous wording
The following table presents a reconciliation of net loss, the most directly comparable financial measure under GAAP, to Adjusted EBITDA for the periods presented:
Current wording
The following table presents a reconciliation of net income, the most directly comparable financial measure under GAAP, to Adjusted EBITDA for the periods presented:
Previous wording
(2)Transaction and integration expense includes professional fees and other costs related to acquisition activity, including the to the Campbell Chain and Fittings and Delaney Hardware acquisitions in 2026 (see Note 16 - Subsequent Events of the Notes to Condensed Consolidated Financial Statements for additional information).
Current wording
(2)Transaction and integration expense includes professional fees and other costs related to acquisition activity, including the acquisitions of Campbell Chain and Fittings and Delaney Hardware in the second quarter of 2026, along with a $4,721 gain, net of deferred taxes, on the Campbell acquisition (see Note 4 - Acquisitions of the Notes to Condensed Consolidated Financial Statements for additional information).
Previous wording
Our working capital position, which we define as current assets minus current liabilities, of $442.8 million as of March 28, 2026 represents an increase of $53.9 million from the December 27, 2025 level of $388.9 million driven by seasonality of the business and tariff costs. We expect to generate sufficient operating cash flows to meet our short-term liquidity needs, and we expect to maintain access to the capital markets, although there can be no assurance of our ability to do so. However, disruption and volatility in the global capital markets and economic uncertainties driven by increases in tariffs could impact our capital resources and liquidity in the future. We do expect the current tariff environment to increase our costs of products we import, which will increase our working capital position and unfavorably impact our future cash flows (see Recent Developments - Tariff Environment of Item 2 - Management’s Discussion and Analysis and Risk Factors of Part II - Other Information for additional information).
Current wording
Our working capital position, which we define as current assets minus current liabilities, of $422.9 million as of June 27, 2026 represents an increase of $34.0 million from the December 27, 2025 level of $388.9 million driven by seasonality of the business and tariff costs. We expect to generate sufficient operating cash flows to meet our short-term liquidity needs, and we expect to maintain access to the capital markets, although there can be no assurance of our ability to do so. However, disruption and volatility in the global capital markets and economic uncertainties driven by increases in tariffs could impact our capital resources and liquidity in the future. We do expect the current tariff environment to increase our costs of products we import, which will increase our working capital position and unfavorably impact our future cash flows (see Recent Developments - Tariff Environment of Item 2 - Management’s Discussion and Analysis and Risk Factors of Part II - Other Information for additional information).
Previous wording
Net cash used for operating activities for the thirteen weeks ended March 29, 2025 was unfavorably impacted by increases in accounts receivable due to the seasonality of our business in addition to a decrease in accrued incentive compensation related to the payout of 2024 incentive compensation.
Current wording
Net cash provided by operating activities for the twenty-six weeks ended June 27, 2026 was favorably impacted by a reduction in inventory due to a focus on inventory management in order to balance supply chain in relationship with the recently enacted tariffs. Additionally, net cash used for operating activities was unfavorably impacted by a decrease in accrued incentive compensation related to the payout of 2025 incentive compensation.
Previous wording
Cash of $14.8 million and $20.7 million was used in the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025, respectively, to invest in new key duplicating kiosks and merchandising racks.
Current wording
Cash of $32.6 million and $38.2 million was used in the twenty-six weeks ended June 27, 2026 and twenty-six weeks ended June 28, 2025, respectively, to invest in new key duplicating kiosks and merchandising racks.
Previous wording
The Company used $2.1 million of cash for principal payments on the senior term loan. As of March 28, 2026, we have outstanding borrowings of $634.8 million on the term loan. See Note 8 - Long-term Debt of the Notes to Condensed Consolidated Financial Statements for additional information.
Current wording
The Company used $4.3 million of cash for principal payments on the senior term loan. As of June 27, 2026, we have outstanding borrowings of $632.7 million on the term loan. See Note 9 - Long-term Debt of the Notes to Condensed Consolidated Financial Statements for additional information.
Previous wording
Our revolver draws, net of payments, provided cash of $47.2 million in the thirteen weeks ended March 28, 2026, primarily used to fund capital expenditures.
Current wording
Our revolver draws, net of payments, provided cash of $10.0 million in the twenty-six weeks ended June 27, 2026, primarily used to fund acquisitions and capital expenditures.
Previous wording
In the thirteen weeks ended March 28, 2026, the Company repurchased $10.1 million of its common stock, see Note 10 - Equity and Accumulated Other Comprehensive Loss of the Notes to Consolidated Financial Statements for additional information.
Current wording
In the twenty-six weeks ended June 27, 2026, the Company repurchased $23.4 million of its common stock, see Note 11 - Equity and Accumulated Other Comprehensive Loss of the Notes to Consolidated Financial Statements for additional information.
Previous wording
In the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025, the Company received $1.5 million and $0.3 million from the exercise of stock options, respectively.
Current wording
In the twenty-six weeks ended June 27, 2026 and twenty-six weeks ended June 28, 2025, the Company received $1.5 million and $0.5 million from the exercise of stock options, respectively.
Rearranged current paragraphs (15)
Current report — wording carried from elsewhere
purchases denominated in U.S. dollars. The U.S. dollar increased in value relative to the Canadian dollar by approximately 3.7% in the twenty-six weeks ended June 27, 2026, declined by 5.2% in 2025, and increased by 9.0% in 2024.
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FINANCIAL SUMMARY AND OTHER KEY METRICS
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The following analysis of results of operations includes a brief discussion of the factors that affected our operating results and a comparative analysis of the twenty-six weeks ended June 27, 2026 and the twenty-six weeks ended June 28, 2025.
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(1)Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section for additional information, including our definition and our use of Adjusted EBITDA, and for a reconciliation from net income to Adjusted EBITDA.
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Cost of Sales (excluding depreciation and amortization)
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The following table summarizes cost of sales by segment:
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Hardware and Protective Solutions' cost of sales as a percentage of net sales increased primarily due to increased tariff costs and product costs.
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Robotics and Digital Solutions' cost of sales as a percentage of net sales decreased primarily due to price increases and sales mix.
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The following table summarizes selling, warehouse, general and administrative expense ("SG&A") by segment:
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Hardware and Protective Solutions' SG&A increased due to the following:
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Robotics and Digital Solutions' SG&A increased due to the following:
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•Selling expense increased by $8.0 million primarily due to the shift from full-service keys to self-service keys, which have a higher variable selling cost.
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•Warehouse expense was comparable to prior year.
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Income from operations in our Robotics and Digital Solutions segment decreased $0.9 million. The $0.9 million decrease is primarily due to the changes in net sales, cost of sales, and SG&A expenses described above, along with an increase in depreciation expense of $3.9 million due to capital spend on key duplication kiosks and machines and a decrease of $0.2 million in other expense driven by the changes in revaluation of the contingent consideration described above.
Current report — wording carried from elsewhere
Interest expense, net, decreased $2.3 million in the twenty-six weeks ended June 27, 2026 primarily due to a reduction in outstanding debt and a reduction in interest rate spreads driven by the debt repricing in the first quarter of 2025(see Note 9 - Long-term Debt of the Notes to Condensed Consolidated Financial Statements for additional information).
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
on our results. (see Recent Developments - Tariff Environment of Item 2 - Management’s Discussion and Analysis above and Risk Factors of Part II - Other Information for additional information).
Previous report — wording carried elsewhere
Additionally, net cash used for operating activities was unfavorably impacted by a decrease in accrued incentive compensation related to the payout of 2025 incentive compensation.
Previous report — wording carried elsewhere
Our revolver draws, net of payments, provided cash of $18.0 million in the thirteen weeks ended March 29, 2025, to fund capital expenditures.