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The acquisition of Kanebridge Corporation doubles Hillman's industrial business and establishes a critical fastener distribution presence in the U.S. market.

Management views Kanebridge as a strategic 'full circle' move, returning to industrial roots with a high-margin, light-CapEx model that mirrors Hillman's retail moat in SKU complexity.

Top-line growth of 10% was driven by a combination of core performance, M&A, and a significant 4.5% contribution from new business wins.

The 'Win the Pro' initiative achieved a milestone 1% contribution to total growth, validating the company's expansion into LBM and specialty distribution channels.

Robotics and Digital Solutions (RDS) continues to be the primary margin driver, benefiting from the accelerated rollout of the Minute Key 3.5 platform.

Operational resilience in Canada remains high, where new business wins of 14% successfully offset a 6% decline in core performance due to market softness and FX headwinds.

Management maintains a neutral stance on recent tariff shifts, utilizing a dual-sourcing strategy to optimize landed costs regardless of geopolitical changes.

Full-year 2026 net sales guidance raised to $1.67 billion - $1.72 billion, incorporating a $15 million contribution from the Kanebridge acquisition expected to close in Q4.

Adjusted EBITDA guidance increased to approximately $285 million, reflecting the accretive nature of the Kanebridge deal despite transaction-related expenses.

Management expects new business wins to accelerate from 1% of top-line growth this year to at least 2% in 2027 as pro-specific offerings scale.

The financial framework assumes a modest improvement in market volumes during the second half of 2026, aided by softer year-over-year comparisons.

Long-term targets remain focused on reaching $2.5 billion in net sales by 2030 through a mix of 8-12% annual growth and disciplined M&A execution.

The $315 million Kanebridge acquisition will be financed through cash, the ABL revolver, and an add-on term loan B, resulting in a temporary leverage increase of one full turn.

Hillman successfully refinanced its credit facilities, extending maturities to 2031 and 2033 to provide a more flexible capital structure for future M&A.

Share repurchase activity will be reduced in the short term to prioritize net leverage reduction following the Kanebridge transaction.

A material cash tax benefit of $40 million to $45 million is expected from the Kanebridge transaction, improving the effective post-synergy purchase multiple.

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Management confirmed the deal was a competitive bid for a business they had 'admired from afar' and already utilized as a supplier.

The acquisition provides an immediate U.S. industrial foundation that Hillman previously lacked, complementing their existing Paulin brand in Canada.

Hillman expects $2 million in immediate cost synergies, primarily through global sourcing scale and better manufacturing rates.

While Kanebridge will initially operate as a standalone platform, Hillman intends to learn from their 'FasNet' digital ordering system to enhance service models across other channels.

Management noted they have not seen an outsized change in demand or consumer acceleration in recent weeks, describing the environment as 'more of the same.'

The company remains focused on high service levels to be ready for any eventual market volume recovery.

Kanebridge is characterized as a slower-turning inventory business compared to Hillman's core, but it commands higher margins due to the specialty nature of the SKUs.

The industrial business exhibits much less seasonality than the core retail hardware business, providing a steadier revenue stream throughout the year.