Hillman (NASDAQ: HLMN) Q4 2024 Earnings Report

Financial Highlights:

* Revenue: $349.6 million, flat year-over-year, missing analyst estimates by 0.6%
* Adjusted EPS: $0.10, in line with analyst estimates
* Adjusted EBITDA: $56.27 million, in line with analyst estimates
* Management's revenue guidance for FY2025: $1.54 billion, in line with analyst expectations (4.2% growth)
* EBITDA guidance for FY2025: $265 million, in line with analyst expectations
* Operating Margin: 4%, up from 1.2% in Q4 2023
* Free Cash Flow Margin: 6.3%, down from 15.2% in Q4 2023

Business Overview:

Hillman designs, manufactures, and sells industrial equipment and systems for various sectors. Professional tools, automation, and data collection technologies have driven demand in recent years. However, economic cycles, consumer spending, and interest rates can affect the demand for Hillman's products.

Sales Performance:

Over the last five years, Hillman's sales growth has been sluggish, at 3.9% compounded annually. In Q4 2024, revenue was flat year-over-year. Analysts project 5.3% revenue growth over the next 12 months.

Profitability:

Hillman's operating margin over the last five years has been weak at 3.7%. However, it recently increased to 4% in Q4 2024, suggesting improved expense management.

Earnings Per Share (EPS):

Hillman's EPS has turned positive over the last five years. Over the last two years, it has grown at a compound annual growth rate of 10.2%. In Q4 2024, EPS was $0.10, in line with Q4 2023 but missing analyst estimates.

Guidance and Market Reaction:

Hillman's full-year revenue and EBITDA guidance for FY2025 is in line with analyst expectations. The stock rose 1.2% to $10.50 after the earnings release.

Conclusion:

Hillman's Q4 2024 earnings were largely in line with expectations. The company faces headwinds from economic cycles, but its recent margin expansion is encouraging. Analysts project moderate growth over the next 12 months. Investors should evaluate Hillman's valuation, business qualities, and earnings trends before making an investment decision.