Hillman Group reported decelerated sales growth and a gross margin decline as higher tariff costs made an impact in 2025.

Fourth-quarter sales rose 4.5% to $365 million, while adjusted gross margin dipped 10 basis points to 47.6% as higher tariff costs hit inventory. Adjusted EBITDA increased 2.3% to $57.5 million, with EBITDA margin falling 30 bps to 15.8%.

During Q4, Hardware and Protective Solutions sales increased 6.4%, while adjusted EBITDA margin grew to 14%.

Robotics and Digital Solutions sales dipped 1.1%, with adjusted EBITDA sinking 19.4%.

Canada sales decreased 2.3%, while adjusted EBITDA slid 3.5%.

Full-year sales grew 5.4% to a record $1.55 billion. Adjusted gross margin increased 60 bps to 48.7%, while adjusted EBITDA gained 13.9% to $275 million.

Hillman expects annual sales of $1.6 billion to $1.7 billion in 2026.

“Looking to 2026, we are confident we will grow both our top and bottom line, while we seek strategic opportunities to grow via M&A and expand our leading market share position,” stated CEO Jon Michael Adinolfi.

Founded in 1964, Cincinnati-based Hillman offers 110,000 SKUs in categories including fasteners, key duplication systems, letters, numbers and signs, engraved tags, builder's hardware, and nails, decks and drywall to retail customers in the U.S., Canada, Mexico, South America and Australia.