Hillman Solutions (HLMN) Q2 FY26 earnings call: guidance and Q&A

How did the Cambridge deal come about, and was it a competitive bid or privately negotiated?

JMA confirmed it was a competitive bid for a business Hillman had admired for a long time. They were impressed with Cambridge's team and felt the deal was a great fit, especially given Hillman's minimal presence in that specific US industrial space.

“Yes, Lee, this is a business that we've admired from afar for quite some time. So we're excited when there was an opportunity to join a process, so this was a competitive bid.”

asked by Lee Jagoda · answered by Jon Adinolfi

Are there opportunities to sell Hillman's existing SKUs through Cambridge's channels, leveraging their network?

JMA stated this is an exciting prospect, believing Hillman can introduce its products and leverage its global sourcing capabilities to create synergies and better rates for Cambridge, ultimately driving growth.

“Absolutely, yes, that's actually one of the more exciting pieces of it. We believe that we can bring them some product. And as I mentioned, I touched on it, the sourcing capability.”

asked by Lee Jagoda · answered by Jon Adinolfi

Can Hillman leverage Cambridge's proprietary FastNet software platform across its broader network, including retail hardware channels?

JMA indicated that Cambridge would initially operate as is, but Hillman expects to learn from their service model and platform. He also noted existing internal synergies with Hillman's special orders desk.

“Today, I would say we're going to operate Cambridge as it is today, a platform that our customers want to make sure we take great care of them. We do believe we can learn from their service model and their opportunities that they create.”

asked by Lee Jagoda · answered by Jon Adinolfi

How national is Cambridge's business, and are there opportunities for investments to expand its reach or market share?

JMA described Cambridge as "very national" with a strong US footprint. He sees clear opportunities for growth, particularly in the long-tail SKU segment, which can be supported by future investments.

“Ruben, they are I would say very national so they do cover all the US so today we feel like they have a nice footprint they are certainly the long tail you know I'll say supplier of choice, I would call it.”

asked by Reuben Gardner · answered by Jon Adinolfi

Could you provide context on Cambridge's customer base, including the number of customers, their specialization, and the end markets they serve?

JMA highlighted that Cambridge serves thousands of customers across diverse sectors like manufacturing, construction, industrial, and commercial, including data centers. These are largely incremental customers for Hillman, touching parts of the economy outside of retail.

“Yes, so we're excited about their customer base. They have thousands of customers. They are the long tail, so they are supporting all different parts of the economy, candidly.”

asked by David Manthey · answered by Jon Adinolfi

Does Cambridge primarily ship direct to end customers, or do they operate through other distributors?

JMA clarified that Cambridge operates as a master distributor, selling through distribution, similar to Hillman's model. While they can drop-ship to end-users, their primary channel is through other distributors.

“So I want to be clear, part of the reason we put in master distributor, just like we are in retail, they are master distributors. So while they can drop to an end user, they are selling through distribution.”

asked by David Manthey · answered by Jon Adinolfi