Hillman Solutions Corp.
For the period ended Sep 26, 2026. Filed Nov 3, 2026.
View on SEC.govAbout this filing
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.
Sep 26, 2026 · Filed Nov 3, 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 2026-06-27; filed 2026-08-04.
0001822492-26-000137
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-26; filed 2026-11-03.
0001822492-26-000161
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 165 previous paragraphs and 177 current paragraphs.
85 unchanged; 62 reworded; 28 added; 10 removed; 8 previous and 2 current paragraphs rearranged.
Tables are not compared: 13 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 (28)
Current report
Acquisition of Kanebridge Corporation
Current report
On July 31, 2026, the Company entered into an Equity Purchase Agreement to acquire Kanebridge Corporation (n/k/a Kanebridge, LLC) ("Kanebridge"), a leading master distributor of industrial fasteners, for aggregate consideration of approximately $308.7 million. The Company closed on the Kanebridge acquisition on August 28, 2026. Kanebridge has business operations in North America and its financial results reside in the Company's Hardware and Protective Solutions reportable segment.
Current report
Refinancing of Credit Facilities and Additional Term Loans
Current report
On July 22, 2026, the Company entered into a new Term Loan B and new asset based revolving credit facility consisting of a $735 million senior secured Term Loan B (the "New Term Loan") and a $375 million senior secured asset-based revolving credit facility (the "New ABL Facility”). The net proceeds of the transaction were used to refinance the Company's existing Term Loan B due 2028, pay down the existing ABL facility due 2027, as well as pay down the related fees and expenses, and for general corporate purpose.
Current report
In connection with the completion of the acquisition of Kanebridge, on August 28, 2026, the Company entered into Amendment No. 1 (the “First Amendment”) to provide for an additional $200 million of senior secured term loans, the proceeds of which were used, together with cash on hand and borrowings under the Company's existing revolving credit facility, to finance a portion of the consideration paid to acquire Kanebridge and to pay related fees and expenses.
Current report
Our Hardware and Protective Solutions' segment increased by $17.8 million, or 5.4%. Primarily driving the increase was a 6.1% or $20.0 million increase in net sales related to the Delaney, Campbell, and Kanebridge acquisitions along with a 1.7% increase in new business wins. Offsetting the increase in sales was a decrease of 2.3% in core performance. Our decrease in core performance was impacted by a mid single digit decrease in volume offset by a low single digit increase from pricing.
Current report
Lastly, our Canada segment increased by $3.4 million, or 9.2%. Primarily driving the increase was 8.3% in new business wins along with an increase of core performance of 0.9%. Our core performance was impacted by mid single digit price increases offset by low single digit impacts of an unfavorable foreign exchange rate impact and decrease in market volumes.
Current report
Canada's cost of sales as a percentage of net sales decreased primarily due to decreased product and shipping costs.
Current report
•Selling expense was comparable to prior year.
Current report
•Warehouse expense increased $0.6 million primarily due to increased freight and shipping costs.
Current report
•G&A expense decreased $0.9 million primarily due to reduced variable compensation.
Current report
Amortization expense in the thirteen weeks ended September 26, 2026 increased $0.4 million primarily due to the additional amortization of intangible assets related to the Kanebridge acquisition.
Current report
Interest expense, net, decreased $0.4 million in the thirteen weeks ended September 26, 2026. Our interest expense was lower compared to prior year quarter due to lower interest rates, the timing of the refinancing, and the lower outstanding debt in the first half of the third quarter prior to our acquisition of Kanebridge(see Note 9 - Long-term Debt of the Notes to Condensed Consolidated Financial Statements for additional information).
Current report
•Warehouse expense increased $7.6 million primarily due to a $4.5 million increase related to warehouse costs associated with the acquisitions of Campbell, Delaney and Kanebridge along with increased compensation and freight costs.
Current report
•General and administrative (“G&A”) expense increased $7.0 million primarily due to acquisition and integration costs associated with the Kanebridge, Delaney, and Campbell acquisitions along with increased compensation and benefit expenses along with an increased investment into information technology.
Current report
•Warehouse expense increased $0.6 million due to inflation in labor and shipping costs.
Current report
•G&A expense decreased $1.3 million primarily driven by lower severance costs associated with restructuring activities in 2025.
Current report
Interest expense, net, decreased $2.7 million in the thirty-nine weeks ended September 26, 2026. Our interest expense was lower compared to prior year due to lower interest rates, the timing of the refinancing, and the lower outstanding debt in the first half of the third quarter prior to our acquisition of Kanebridge (see Note 9 - Long-term Debt of the Notes to Condensed Consolidated Financial Statements for additional information).
Current report
forecasted annual pre-tax income, which increased the relative impact of non-deductible expenses and state and foreign income taxes on the AETR.
Current report
(2)Litigation expense includes an accrual for the preliminary settlement of a California wage-hour class action / Private Attorneys General Act (PAGA) claim.
Current report
Net cash provided by operating activities for the thirty-nine weeks ended September 27, 2025 unfavorably impacted by increases in the costs of inventory due to the recently enacted tariffs. Increased accounts receivable also unfavorably impacted cash flows due to pricing actions we took with our customers in response to the tariff cost increases. Increased accounts payable driven by the tariff costs partially offset the inventory and receivables changes. Additionally, operating cash flow in the thirty-nine weeks ended September 27, 2025 was unfavorably impacted by increases in other assets due to our investment in cloud based information technology. Finally, net cash provided by operating activities was unfavorably impacted by a decrease in accrued incentive compensation related to the payout of 2024 incentive compensation.
Current report
Kanebridge
Current report
On July 31, 2026, the Company entered into an Equity Purchase Agreement to acquire Kanebridge Corporation ("Kanebridge"). The Company closed the Kanebridge acquisition on August 28, 2026. Pursuant to the Purchase Agreement, the Company acquired all of the outstanding equity interests of Kanebridge for aggregate consideration of approximately $308.7 million, subject to customary adjustments for cash, indebtedness, working capital and transaction expenses.
Current report
2026 Refinancing activities
Current report
On July 22, 2026, the Company entered into a new $735 million Term Loan B and new $375 million asset based revolving credit facility. The net proceeds of the transaction were used to refinance the Company's existing Term Loan B due 2028, pay down the existing ABL facility due 2027, as well as related fees and expenses, and for general corporate purposes.
Current report
In August of 2026, we entered into an amendment No. 1 to the term loan credit agreement which provided an additional $200 million of incremental term loan funds to be used to finance the Kanebridge acquisition.
Current report
In connection with the closing of the First Amendment and New Term Loan (see Note 9 - Long-term Debt of the Notes to Condensed Consolidated Financial Statements for additional information), the Company incurred a loss of $13.5 million consisting of $1.5 million of existing fees written off and $12.0 million in new fees expensed. The Company capitalized an additional $3.8 million primarily for the payment of upfront lender fees and original issue discount.
Current report
39 | September 26, 2026 Form 10-Q
Removed paragraphs (10)
Previous 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.
Previous 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.
Previous report
•G&A expense was comparable to prior year.
Previous report
Amortization expense in the thirteen weeks ended June 27, 2026 decreased 0.2% due to certain intangible assets being fully amortized.
Previous report
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 report
31 | June 27, 2026 Form 10-Q
Previous report
•Warehouse expense increased $0.3 million primarily due to higher sales volumes.
Previous report
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).
Previous report
Term Loan:
Previous report
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.
Reworded paragraphs (62)
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 $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,
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 $457.5 million in the thirteen weeks ended September 26, 2026 and $1,269.8 million in the thirty-nine weeks ended September 26, 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
Previous 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.
Current wording
items, 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
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 wording
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 under Section 122 of the Trade Act of 1974 at a rate of 10 percent for a period of up to 150 days. As the Section 122 tariffs expired, the administration announced new tariffs under Section 301 on imports from more than 80 countries, citing the U.S. prohibition on goods made with forced labor, with rates generally from 10 to 12.5 percent. Several 301 investigations remain open, which could produce further country-specific 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 could occur if tariff levels persist, continue to rise, or remain volatile. We continue to develop and implement mitigation strategies (such as price increases and sourcing changes, among others) and assess future implementation timelines, though there is no assurance that these efforts will be successful.
Previous wording
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 wording
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 $3.0 million. Campbell adds US-based manufacturing and complements our existing chain business.
Previous wording
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 wording
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 $4.8 million. Delaney has business operations in North America and its financial results reside in the Company's Hardware and Protective Solutions reportable segment.
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 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.
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 4.2% in the thirty-nine weeks ended September 26, 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 1.3% in the thirty-nine weeks ended September 26, 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
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 purchases denominated in U.S. dollars. The U.S. dollar increased in value relative to the Canadian dollar by approximately 3.4% in the thirty-nine weeks ended September 26, 2026, declined by 5.2% in 2025, and increased by 9.0% in 2024.
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 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).
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).
Previous 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%.
Current wording
•Net sales for the thirteen weeks ended September 26, 2026 were $457.5 million compared to net sales of $424.9 million for the thirteen weeks ended September 27, 2025, an increase of approximately $32.5 million or 7.7%.
Previous 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.
Current wording
•Net income for the thirteen weeks ended September 26, 2026 was $6.3 million, or $0.03 per diluted share, compared to net income of $23.2 million, or $0.12 per diluted share for the thirteen weeks ended September 27, 2025.
Previous 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.
Current wording
•Adjusted EBITDA(1) totaled $90.2 million versus $88.0 million in the thirteen weeks ended September 26, 2026 and in the thirteen weeks ended September 27, 2025, respectively.
Previous 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%.
Current wording
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 we believe impact existing home sales and repair and remodel spending on the home. During the third quarter of 2026, net sales increased by $32.5 million or 7.7%, and drivers of the increase are detailed below.
Previous 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.
Current wording
Our Robotics and Digital Solutions' segment increased by $11.3 million, or 19.2%. Primarily driving the increase was 18.8% in new business wins and a 0.4% increase in core performance. Core performance within RDS was positively impacted by a low double digit impact of price increases which was partially offset by a low double digit decrease in volume.
Previous wording
Robotics and Digital Solutions' cost of sales as a percentage of net sales decreased due to price increases and sales mix.
Current wording
Robotics and Digital Solutions' cost of sales as a percentage of net sales decreased due to our price increases and sales mix.
Previous wording
•General and administrative (“G&A”) expense was comparable to prior year.
Current wording
•General and administrative (“G&A”) expense increased $7.1 million primarily due to acquisition and integration costs associated with the Kanebridge acquisition.
Previous wording
•Warehouse expense increased $2.1 million primarily due to increased compensation and freight costs.
Current wording
•Warehouse expense increased $4.7 million primarily due to a $2.1 million increase related to warehouse costs associated with the acquisitions of Campbell, Delaney and Kanebridge in addition to increased compensation and freight costs in our core business.
Previous 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.
Current wording
•Selling expense increased $9.2 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 $2.7 million due to capital spend on merchandising racks and key duplication kiosks.
Current wording
Depreciation expense increased $2.2 million due to capital spend on merchandising racks and key duplication kiosks.
Previous 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.
Current wording
In the thirteen weeks ended September 26, 2026, other income (expense) increased by $1.4 million consisting primarily of a $0.8 million gain in rebate income along with a $0.5 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) and a $0.1 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).
Previous 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.
Current wording
In the thirteen weeks ended September 27, 2025, other income (expense) consisted primarily of exchange rate losses of $0.2 million and a $0.1 million loss 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 $0.3 million.
Previous wording
Income from operations in our Hardware and Protective Solutions segment decreased $2.8 million due to the changes in net sales, cost of sales, SG&A expenses, and other income described above in addition to an increase in depreciation expense of $1.4 million due to capital spend on merchandising racks offset by a decrease of $0.3 million in amortization expense due to some intangible assets being fully amortized.
Current wording
Income from operations in our Hardware and Protective Solutions segment decreased $13.0 million due to the changes in net sales, cost of sales, SG&A expenses, and other income described above in addition to an increase in depreciation expense of $0.8 million due to capital spend on merchandising racks and amortization of $0.8 million due to the Kanebridge acquisition.
Previous 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.
Current wording
Income from operations in our Robotics and Digital Solutions segment increased $1.8 million. The $1.8 million increase is primarily due to the changes in net sales, cost of sales, and SG&A expenses described above, partially offset by an increase in depreciation expense of $1.5 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.
Previous wording
Canada's income from operations increased by $0.5 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 twenty-six weeks ended June 27, 2026 .
Current wording
Canada's income from operations increased by $3.2 million primarily due to the changes in net sales, cost of sales and SG&A expenses described above partially offset by the change in exchange rate gains of $0.2 million in the thirteen weeks ended September 26, 2026.
Previous 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.
Current wording
For the thirteen weeks ended September 26, 2026 and thirteen weeks ended September 27, 2025, the effective income tax rate was 37.4% and 25.7%, respectively. The Company recorded an income tax provision for the thirteen weeks ended September 26, 2026 of $3.8 million on pre-tax income of $10.0 million, and an income tax provision for the thirteen weeks ended September 27, 2025 of $8.0 million based on a pre-tax income of $31.2 million.
Previous wording
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 wording
The Company applies an estimated annual effective tax rate (“AETR”) to year-to-date ordinary income in each interim period. In 2026, the effective tax rate differed from the U.S. federal statutory rate mainly due to non-deductible expenses and state and foreign income taxes, partially offset by the non-taxable gain on the acquisition of Campbell Chain and Fittings. The increase in the effective tax rate compared to the prior year period was primarily due to lower forecasted annual pre-tax income, which increased the relative impact of non-deductible expenses and state and foreign income taxes on the AETR.
Previous wording
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 wording
In 2025, the effective tax rate differed from the U.S. federal statutory tax rate mainly due to state and foreign income taxes and non-deductible expenses. See Note 8 - Income Taxes of the Notes to Condensed Consolidated Financial Statements for additional information.
Previous wording
Twenty-six weeks ended June 27, 2026 vs the Twenty-six weeks ended June 28, 2025
Current wording
Thirty-nine weeks ended September 26, 2026 vs the Thirty-nine weeks ended September 27, 2025
Previous wording
•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 wording
•Net sales for the thirty-nine weeks ended September 26, 2026 were $1,269.8 million compared to $1,187.1 million for the thirty-nine weeks ended September 27, 2025, an increase of approximately $82.7 million or 7.0%.
Previous wording
•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 wording
•Net income for the thirty-nine weeks ended September 26, 2026 was $22.7 million, or $0.11 per diluted share, compared to net income of $38.7 million, or $0.19 per diluted share for the thirty-nine weeks ended September 27, 2025.
Previous wording
•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 wording
•Adjusted EBITDA(1) totaled $217.4 million versus $217.8 million in the thirty-nine weeks ended September 26, 2026 and in the thirty-nine weeks ended September 27, 2025, respectively.
Previous wording
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.
Current wording
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 thirty-nine weeks ended September 26, 2026 and the thirty-nine weeks ended September 27, 2025.
Previous wording
The increase in total net sales during the twenty-six weeks ended June 27, 2026 was primarily driven by the factors described below:
Current wording
The increase in total net sales during the thirty-nine weeks ended September 26, 2026 was primarily driven by the factors described below:
Previous wording
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 wording
Hardware and Protective Solutions' net sales increased by $51.3 million or 5.6% in the thirty-nine weeks ended September 26, 2026. Primarily driving the increase was a 3.7% increase in net sales related to the Delaney, Campbell and Kanebridge acquisitions of $33.7 million along with a 1.8% increase in new business wins including a 0.1% increase in core performance. Our increase in core performance was impacted by a high single digit increase from price partially offset by a high single digit decrease in volume.
Previous wording
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 wording
Robotics and Digital Solutions' net sales in the thirty-nine weeks ended September 26, 2026 increased by $20.5 million or 12.3%. Primarily driving the increase was a 14.1% increase in new business wins partially offset by a 1.9% decrease in core performance. Core performance within RDS was positively impacted by low-double digit price increases which were more than offset by low double digit volume decreases.
Previous 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.
Current wording
Lastly, our Canada net sales increased by $10.9 million or 10.2%. Primarily driving the increase was 12.1% in new business wins offset by a 1.9% decrease in core performance. Canada's core performance was negatively impacted by the impact of foreign exchange. The impact of price and volume were immaterial in the thirty-nine weeks ended September 26, 2026.
Previous wording
Robotics and Digital Solutions' cost of sales as a percentage of net sales decreased primarily due to price increases and sales mix.
Current wording
Robotics and Digital Solutions' cost of sales as a percentage of net sales decreased primarily due to our price increases and sales mix.
Previous wording
•Selling expense increased by $4.5 million primarily due to expenses associated with our pro growth strategy and other initiatives.
Current wording
•Selling expense increased by $4.1 million primarily due to expenses associated with our pro growth strategy and other initiatives along with a $1.4 million increase related to increased selling costs associated with the acquisitions of Campbell, Delaney and Kanebridge.
Previous wording
•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.
Current wording
•Selling expense increased by $17.2 million primarily due to the shift from full-service keys to self-service keys, which have a higher variable selling cost.
Previous wording
•G&A expense decreased $0.4 million due to reduced compensation and benefit expense.
Current wording
•G&A expense decreased $1.4 million due to reduced compensation and benefit expense.
Previous wording
•Selling expense increased by $0.8 million primarily due to increased variable selling expenses.
Current wording
•Selling expense increased by $1.3 million primarily due to increased variable selling expenses.
Showing the first 40 of 62 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
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
Current report — wording carried from elsewhere
estimates and assumptions are reasonable based on the facts and circumstances as of September 26, 2026, however, actual results may differ from these estimates under different assumptions and circumstances.
Rearranged previous paragraphs (8)
Previous report — wording carried 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.
Previous report — wording carried elsewhere
•Selling expense increased $3.0 million due to expenses associated with our pro growth strategy and other initiatives.
Previous report — wording carried elsewhere
Canada's cost of sales as a percentage of net sales increased primarily due to higher tariffs on steel products.
Previous report — wording carried elsewhere
•Warehouse expense increased $2.8 million primarily due to increased compensation and freight costs.
Previous report — wording carried elsewhere
•General and administrative (“G&A”) expense was comparable to prior year.
Previous report — wording carried elsewhere
•Warehouse expense was comparable to prior year.
Previous report — wording carried elsewhere
•G&A was comparable to prior year.
Previous report — wording carried elsewhere
Net cash provided by operating activities for the twenty-six weeks ended June 28, 2025 was favorably impacted by increased accounts payable due to the timing of inventory purchases and payments. Inventory and accounts payable were both impacted by the recently enacted tariffs. Net cash provided by operating activities was unfavorably impacted by a decrease in accrued incentive compensation related to the payout of 2024 incentive compensation.