Fasteners and industrial supplies distributor Hillman Solutions reported record third-quarter net sales of $457.5 million, up 7.7% year over year, as the company began integrating industrial fasteners master distributor Kanebridge.

Net income fell to $6.3 million from $23.2 million a year earlier. Adjusted EBITDA increased 2.4% to $90.2 million, while adjusted EBITDA margin contracted by 100 basis points to 19.7%. Adjusted gross margin decreased by 90 basis points to 50.8%.

Free cash flow increased to $51.1 million from $9.1 million in the year-ago quarter.

By business segment:

• Hardware and Protective Solutions sales increased 5.4% to $347 million, while adjusted EBITDA decreased 4.1% to $63.2 million.
• Robotics and Digital Solutions sales jumped 19.2% to $69.8 million, driven partly by Hillman’s MinuteKey 3.5 rollout. Adjusted EBITDA increased 13.4% to $20.9 million.
• Canada sales increased 9.2% to $40.7 million, while adjusted EBITDA rose 61.6% to $6.1 million.

Hillman narrowed its 2026 net sales outlook to $1.66 billion-$1.68 billion from its previous range of $1.67 billion-$1.72 billion, citing the macroeconomic environment. The company maintained its adjusted EBITDA forecast of approximately $285 million and free cash flow guidance of $105 million-$115 million.

“We continue to deliver net sales growth and strong free cash flow generation that give us the flexibility to invest into attractive opportunities, like our high-margin Robotics and Digital Solutions segment – which had a great quarter, up 19.2% – and accretive acquisitions, like Kanebridge,” Hillman CEO Jon Michael Adinolfi said in a news release.

Hillman completed its approximately $315 million acquisition of Kanebridge on Sept. 3 after announcing the deal in August. Kanebridge supplies more than 44,000 commercial and military-grade fastener SKUs to distributors across the U.S. and Canada, giving Hillman its first U.S. master distribution platform in the industrial fastener market.

The acquisition expanded Hillman’s estimated industrial addressable market to approximately $3 billion. Kanebridge offers same-day shipping from warehouses in Illinois and California.

Hillman financed the transaction with cash, a draw on its asset-based revolving credit facility and a $200 million term loan. The additional borrowing contributed to Hillman’s net leverage rising to 3.4x adjusted EBITDA at the end of 3Q from 2.4x at the end of 2025.

“Kanebridge is a strategic acquisition that establishes our position as a long-tail supplier to industrial distributors in the U.S.,” Adinolfi said. “Kanebridge diversifies our customer base and expands our presence in the industrial distribution channel, which is positioned to benefit from secular tailwinds.