Hillman Solutions reported first quarter sales increased 2.6% to $359.3 million, driven by its Hardware and Protective Solutions product category (5.6% increase) and followed by Robotics and Digital Solutions (1.9% increase).

Net loss totaled $300,000, compared to $1.5 million in the same quarter last year, and adjusted gross margin in the quarter (46.9%) was slightly down compared from 47.6% in 1Q24.

Hardware & Protective sales rose 5.6% to $270 million, driven by contributions from the acquisition of Intex DIY in August 2024 and new business. Adjusted EBITDA of $37.4 million on a 15.8% margin increased by 120 bps year-over-year.

Robotics & Digital sales grew 1.9% to $56.5 million. Adjusted EBITDA of $15.4 million decreased by 340 bps year-over-year.

Canada sales fell 18.7% to $28.4 million, attributed to a soft market and economy and FX headwinds. Adjusted EBITDA of $1.7 million decreased by 260 bps YoY.

Hillman CEO Jon Michael Adinolfi estimated the impact of all new 2025 tariffs to be about $250 million on an annualized basis.

“We believe we can mitigate the additional tariff-related costs through price increases,” Adinolfi said. “At the same time, we are working with our customers and suppliers to optimize the country of origin were we source our products.”

He later clarified that it would be price increases, rather than surcharges.

Hillman officials said the company will continue to diversify the country of origin where its products are sourced to optimize its supply chain, saying the company has the ability to “reduce China exposure to approximately 20% by year-end.”