Hillman Solutions Corp. (HLMN)

CIK: 0001822492. SIC: 3420 Cutlery, Handtools & General Hardware. Latest 10-K as of: 2026-02-17.

SIC breadcrumb: Manufacturing > SIC Major Group 34 > SIC 3420 Cutlery, Handtools & General Hardware

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1822492. Latest filing source: 0001822492-26-000019.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-17. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001822492.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Free cash flow = operating cash flow - capital expenditures. Missing metrics are omitted rather than fabricated.

Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-28. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001822492.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001822492-26-000084.

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high. Filing date: 2026-04-28. Report date: 2026-03-28.

ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion provides information which the Company’s management believes is relevant to an assessment and understanding of the Company’s operations and financial condition. This discussion should be read in conjunction with the Condensed Consolidated Financial Statements and accompanying notes in addition to the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 27, 2025.

FORWARD-LOOKING STATEMENTS

This quarterly report contains certain forward-looking statements, including, but not limited to, certain disclosures related to acquisitions, refinancing, capital expenditures, resolution of pending litigation, and realization of deferred tax assets, which are not historical facts and are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements.

All forward-looking statements are made in good faith by the Company and are intended to qualify for the safe harbor from liability established by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. You should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," “target”, “goal”, "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) unfavorable economic conditions that may affect our and our customers’, suppliers’ and other business partners’ operations, financial condition and cash flows including spending on home renovation or construction projects, inflation, recessions, instability in the financial markets or credit markets; (2) increased supply chain costs, including tariffs, raw materials, sourcing, transportation and energy; (3) the highly competitive nature of the markets that we serve; (4) the ability to continue to innovate with new products and services; (5) seasonality; (6) large customer concentration; (7) the ability to recruit and retain qualified employees; (8) the outcome of any legal proceedings that may be instituted against the Company; (9) adverse changes in currency exchange rates; or (10) regulatory changes and potential legislation that could adversely impact financial results. The foregoing list of factors is not exclusive, and readers should also refer to those risks that are included in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the Annual Report on Form 10-K filed on February 17, 2026. Given these uncertainties, current or prospective investors are cautioned not to place undue reliance on any such forward-looking statements.

Except as required by applicable law, the Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this communication to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

GENERAL

Hillman Solutions Corp. and its wholly-owned subsidiaries (collectively, “Hillman” or “Company”) are one of the largest providers of hardware-related products and related merchandising services to retail markets in North America. Our principal business is operated through our wholly-owned subsidiary, Hillman Solutions Corp. and its wholly-owned subsidiaries (collectively, “Hillman Group”), which had net sales of $370.1 million in the thirteen weeks ended March 28, 2026. Hillman sells its products to hardware stores, home improvement centers, mass merchants, pet supply stores, and other retail outlets principally in the United States, Canada, and Mexico. Product lines include thousands of small hardware parts such as fasteners and related items; threaded rod and metal shapes; keys and accessories; builder's hardware; personal protective equipment, such as gloves and eyewear; rope and chain; and identification items, such as tags and letters, numbers, and signs. We support product sales

23 | March 28, 2026 Form 10-Q

with services that include design and installation of merchandising systems, maintenance of appropriate in-store inventory levels, and break-fix for our robotics kiosks.

RECENT DEVELOPMENTS

On February 20, 2026, the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). On April 15, 2026, Hillman filed a lawsuit in the U.S. Court of International Trade against the United States of America seeking a full refund of all IEEPA tariffs that Hillman has paid to the United States. The financial impact of these events is uncertain, as it is unclear to what extent duties will be refunded by CBP, how effective the refund process will be, the timeline that refunds could be issued, or if we can fully collect on any refunds owed. We are evaluating the impact of these developments on our business and financial statements. No adjustments have been recorded in the accompanying unaudited condensed consolidated financial statements as we cannot reasonably estimate the financial impact; however, it is reasonably possible that it could be material.

IMPACT OF GLOBAL ECONOMIC CONDITIONS ON OUR RESULTS OF OPERATIONS

Our business is impacted by general economic conditions in the North American markets, particularly the U.S. and Canadian retail markets, including hardware stores, home improvement centers, mass merchants, and other retailers. Changes in current economic conditions, including inflationary pressures in the cost of inventory, transportation, and employee compensation, foreign currency volatility, housing market trends, tariffs, and concerns of a potential recession, have impacted consumer discretionary income levels and spending. Consumer discretionary income levels and spending impact the purchasing trends of our products by our retail customers. Any adverse trends in discretionary income and consumer spending could have a material adverse effect on our business or operating results.

We are exposed to the risk of unfavorable changes in foreign currency exchange rates for the U.S. dollar versus local currency of our suppliers, particularly those located in China and Taiwan, because we purchase a majority of our products for resale from multiple vendors located in these countries. The purchase price of these products is routinely negotiated in U.S. dollar amounts rather than the local currency of the vendors and our suppliers' profit margins decrease when the U.S. dollar declines in value relative to the local currency. This puts pressure on our suppliers to increase prices to us. The U.S. dollar declined in value relative to the CNY by approximately 1.4% in the thirteen weeks ended March 28, 2026, declined by 4.0% in 2025, and increased by 2.8% in 2024. The U.S. dollar increased in value relative to the Taiwan dollar by approximately 1.7% in the thirteen weeks ended March 28, 2026, declined by 4.2% in 2025, and increased by 7.1% in 2024.

We are also exposed to risk of unfavorable changes in the Canadian dollar exchange rate versus the U.S. dollar. Our sales in Canada are denominated in Canadian dollars, while a majority of the products are sourced in U.S. dollars. A weakening of the Canadian dollar versus the U.S. dollar results in lower sales in terms of U.S. dollars while the cost of sales remains unchanged. We have a practice of hedging some of our Canadian subsidiary's purchases denominated in U.S. dollars. The U.S. dollar increased in value relative to the Canadian dollar by approximately 1.5% in the thirteen weeks ended March 28, 2026, declined by 5.2% in 2025, and increased by 9.0% in 2024.

In addition, the negotiated purchase price of our products may be dependent upon market fluctuations in the cost of raw materials (i.e. steel, zinc, and nickel) used by our vendors in their manufacturing processes. The final purchase cost of our products may also be dependent upon inflation or deflation in the local economies of vendors that could impact the cost of labor and materials used in the manufacturing of our products. We identify the directional impact of changes in our product cost, but the quantification of each of these variable impacts cannot be measured as to the individual impact on our product cost with a sufficient level of precision. We may take pricing action, when warranted, in an attempt to offset a portion of product cost increases. The ability of our operating divisions to implement or maintain price increases and seek price concessions, as appropriate, is dependent on competitive market conditions.

We import products, which are subject to customs requirements and to tariffs and quotas set by governments, through mutual agreements and bilateral actions. The historical U.S. tariffs on steel and aluminum and other imported goods have increased our product costs and required us to increase prices on the affected products. Current uncertainties about increases in tariffs of imported products from countries may have an adverse effect

24 | March 28, 2026 Form 10-Q

on our results. (see Recent Developments - Tariff Environment of Item 2 - Management’s Discussion and Analysis above and Risk Factors of Part II - Other Information for additional information).

Thirteen weeks ended March 28, 2026 vs the Thirteen weeks ended March 29, 2025

FINANCIAL SUMMARY AND OTHER KEY METRICS

•Net sales for the thirteen weeks ended March 28, 2026 were $370.1 million compared to net sales of $359.3 million for the thirteen weeks ended March 29, 2025, an increase of approximately $10.7 million or 3.0%.

•Net loss for the thirteen weeks ended March 28, 2026 was $(4.7) million, or $(0.02) per diluted share, compared to a net loss of $(0.3) million, or $(0.00) per diluted share for the thirteen weeks ended March 29, 2025.

•Adjusted EBITDA(1) totaled $50.1 million versus $54.5 million in the thirteen weeks ended March 28, 2026 and in the thirteen weeks ended March 29, 2025, respectively.

RESULTS OF OPERATIONS

The following analysis of results of operations includes a brief discussion of the factors that affected our operating results and a comparative analysis of the thirteen weeks ended March 28, 2026 and the thirteen weeks ended March 29, 2025.

Thirteen weeks ended March 28, 2026

Thirteen weeks ended March 29, 2025

(dollars in thousands)

Amount

% of

Net Sales

Amount

% of

Net Sales

Net sales

$

370,073 

100.0 

%

$

359,343 

100.0 

%

Cost of sales (exclusive of depreciation and amortization shown separately below)

201,496 

54.4 

190,740 

53.1 

Selling, warehouse, general and administrative expenses

124,571 

33.7 

119,052 

33.1 

Depreciation

21,999 

5.9 

19,395 

5.4 

Amortization

15,276 

4.1 

15,415 

4.3 

Other income, net

(483)

(0.1)

(274)

(0.1)

Income from operations

7,214 

1.9 

15,015 

4.2 

Interest expense, net

13,005 

3.5 

14,460 

4.0 

Refinancing costs

— 

— 

906 

0.3 

Loss before income taxes

(5,791)

(1.6)

(351)

(0.1)

Income tax benefit

(1,059)

(0.3)

(34)

— 

Net loss

$

(4,732)

(1.3)

%

$

(317)

(0.1)

%

Adjusted EBITDA(1)

$

50,090 

13.5

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high. Filing date: 2026-02-17. Report date: 2025-12-27.

ITEM 7 – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion provides information which our management believes is relevant to an assessment and understanding of our operations and financial condition. This discussion should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements and schedules thereto appearing elsewhere herein. In addition, see “Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Regarding Forward-Looking Information”, as well as “Risk Factors” in Item 1A of this Annual Report.

Executive Overview and Trends in our Business

Net sales during 2025 increased by 5.4% when compared to 2024. Driving our performance for the year was the net sales contributions from new business wins, along with the contribution of net sales from the Intex DIY acquisition, which closed in August 2024, and the contribution of price increases, which were implemented during the year to offset an increase in costs related to tariffs. These contributions to net sales were offset by the soft home improvement market during the year. Hardware and Protective Solutions, our largest segment making up 76.9% of our net sales, led the way with an increase of 7.8%, while our Robotics and Digital Solutions segment returned to growth during 2025 contributing 1.6%. Partially offsetting this growth was a decline in our Canadian business segment.

Products across our business are primarily used by DIYers and professionals shopping at our customers' retail locations for repair, maintenance, and remodel projects. Because repair and maintenance projects are beneficial and often necessary no matter the economic environment, we believe our business is generally resilient to economic downturns. However, remodel projects are more dependent upon macroeconomic variables, including existing home sales. According to the National Association of Realtors, existing home sales in the U.S. for 2025 were unchanged from 2024, which marked a 30-year low, totaling 4.1 million. This was a headwind for our top line results during the year.

Our competitive moat, which consists of our 1,200 member field sales and service team, our ability to ship direct to the retail locations of our customers rather than their distribution network, and our 60+ years of experience set us apart from the competition. As such, we launched multiple new business wins during the year and we won vendor of the year awards from Do It Best and Home Depot Canada. We continue to focus on taking great care of our customers which has been a key focus on the company for over 60-years.

We are pleased with our top and bottom line results during 2025, as both were records for Hillman. Producing record top and bottom line results while successfully managing the dynamic and complex tariff situation is a testament to our team. Looking to 2026, we remain committed to driving value for our stakeholders, taking great care of our customers, and continuing to grow our business.

Impact of Global Economic Conditions on our Results of Operation

Our business is impacted by general economic conditions in the North American and international markets, particularly the U.S. and Canadian retail markets including hardware stores, home centers, mass merchants, and other retailers. Changes in current economic conditions, including inflationary pressures in the cost of inventory, transportation, and employee compensation, foreign currency volatility, and interest rates, have impacted consumer discretionary income levels and spending. Consumer discretionary income levels and spending impact the purchasing trends of our products by our retail customers. Any adverse trends in discretionary income and consumer spending could have a material adverse effect on our business or operating results.

We are exposed to the risk of unfavorable changes in foreign currency exchange rates for the U.S. dollar versus local currency of our suppliers located primarily in China and Taiwan. We purchase a majority of our products for resale from multiple vendors located in China and Taiwan. The purchase price of these products is routinely negotiated in U.S. dollar amounts rather than the local currency of the vendors and our suppliers' profit margins

22| December 27, 2025 Form 10-K

decrease when the U.S. dollar declines in value relative to the local currency. This puts pressure on our suppliers to increase prices to us. The U.S. dollar decreased in value relative to the CNY by approximately by 4.0% in 2025, increased by 2.8% in 2024, and increased by 2.9% in 2023. The U.S. dollar decreased in value relative to the Taiwan dollar by approximately 4.2% in 2025, increased by 7.1% in 2024, and decreased by 0.4% in 2023.

In addition, the negotiated purchase price of our products may be dependent upon market fluctuations in the cost of raw materials such as steel, zinc, and nickel used by our vendors in their manufacturing processes. The final purchase cost of our products may also be dependent upon inflation or deflation in the local economies of vendors in China and Taiwan that could impact the cost of labor and energy used in the manufacturing of our products. We identify the directional impact of changes in our product cost, but the quantification of each of these variable impacts cannot be measured as to the individual impact on our product cost with a sufficient level of precision. We may take pricing action, when warranted, in an attempt to offset a portion of product cost increases. The ability of our operating divisions to implement price increases and seek price concessions, as appropriate, is dependent on competitive market conditions.

We are also exposed to risk of unfavorable changes in the Canadian dollar exchange rate versus the U.S. dollar. Our sales in Canada are denominated in Canadian dollars while a majority of the products are sourced in U.S. dollars. A weakening of the Canadian dollar versus the U.S. dollar results in lower sales in terms of U.S. dollars while the cost of sales remains unchanged. We have a practice of hedging some of our Canadian subsidiary's purchases denominated in U.S. dollars. The U.S. dollar decreased in value relative to the Canadian dollar by approximately 5.2% in 2025, increased by 9.0% in 2024, and decreased by 2.4% in 2023.

We import products which are subject to customs requirements and to tariffs and quotas set by governments through mutual agreements and bilateral actions. U.S. tariffs on steel and aluminum and other imported goods has increased our product costs and required us to increase prices on the affected products. Recent tariffs against goods imported from China, Mexico, and Canada enacted since February 1, 2025 by the Trump Administration and any retaliatory tariffs issued in response thereto, have also caused us to increase prices on affected products.

Recent developments

Tariff Environment

In 2025, the U.S. government announced tariffs on imports from countries from which we import products and components. Additionally, other countries have announced their own tariffs. We estimate we source approximately 33% of our products from China, 33% from suppliers based in North America, and 33% from all other countries. Tariffs have resulted in an increase in our net working capital and cost of sales. We have raised our prices to offset the tariff costs, although these price increases could impact future demand for our products. We continue to analyze the impact of these actions and what, if any, steps, including pricing actions, we may take to mitigate the impact of the tariffs. Consistent with our normal course of business, we will continue exploring alternative suppliers in other countries to source quality products that provide the best value for our customers.

Segment Realignment

In the second quarter of 2025, the Company realigned its Hardware and Protective Solutions segment to include the sales of accessories, which are now managed by the Hardware and Protective Solutions leadership team. Previously, accessories were included under the Robotics and Digital Solutions segment leadership team. See Note 18 - Segment Reporting and Geographic Information of the Notes to Consolidated Financial Statements for additional information.

Share Repurchases

On July 31, 2025, the Board of Directors of the Company authorized a share repurchase program of up to $100.0 million (the “Repurchase Program”) of the Company's common stock. The company has repurchased a total of 1.4 million shares for $12.4 million as of December 27, 2025. See Note 10 - Equity and Accumulated Other Comprehensive Loss of the Notes to Consolidated Financial Statements for additional information.

Financial Summary and Other Key Metrics

Fiscal 2025 and 2024 consisted of 252 shipping days. Shipping days are defined as non-holiday week-days, Monday through Friday of each week of the fiscal year.

•Net sales for the year ended December 27, 2025 were $1,552.2 million compared to net sales of $1,472.6 million for the year ended December 28, 2024, an increase of approximately $79.6 million or 5.4%.

23| December 27, 2025 Form 10-K

•Net income improved to $40.3 million, or $0.20 per diluted share, compared to net income of $17.3 million, or $0.09 per diluted share for the year ended December 28, 2024.

•Adjusted EBITDA(1) totaled $275.3 million versus $241.8 million in the year ended December 28, 2024.

(1) Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section for additional information, including our definition and our use of Adjusted EBITDA, and for a reconciliation from net income (loss) to Adjusted EBITDA.

Results of Operations

The following table shows the results of operations for the years ended December 27, 2025, December 28, 2024 and December 30, 2023.

Year Ended December 27, 2025

Year Ended December 28, 2024

Year Ended December 30, 2023

(dollars in thousands)

Amount

% of

Net Sales

Amount

% of

Net Sales

Amount

% of

Net Sales

Net sales

$

1,552,224 

100.0%

$

1,472,595 

100.0%

$

1,476,477 

100.0%

Cost of sales (exclusive of depreciation and amortization shown separately below)

795,875 

51.3%

764,691 

51.9%

828,956 

56.1%

Selling, warehouse, general and administrative expenses

502,000 

32.3%

488,702 

33.2%

452,110 

30.6%

Depreciation

79,870 

5.1%

68,766 

4.7%

59,331 

4.0%

Amortization

61,232 

3.9%

61,274 

4.2%

62,309 

4.2%

Other (income) expense, net

(722)

—%

361 

—%

12,843 

0.9%

Income from operations

113,969 

7.3%

88,801 

6.0%

60,928 

4.1%

Interest expense, net

56,467 

3.6%

59,241 

4.0%

68,310 

4.6%

Refinancing costs

906 

0.1%

3,008 

0.2%

— 

—%

Income (loss) before income taxes

56,596 

3.6%

26,552 

1.8%

(7,382)

(0.5)%

Income tax expense

16,291 

1.0%

9,297 

0.6%

2,207 

0.1%

Net income (loss)

$

40,305 

2.6%

$

17,255 

1.2%

$

(9,589)

(0.6)%

Adjusted EBITDA (1)

275,317 

17.7%

241,753 

16.4%

219,360 

14.9%

(1)    Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section for additional information, including our definition and our use of Adjusted EBITDA, and for a reconciliation from Net income (loss) to Adjusted EBITDA.

Net Sales

Net Sales by Product Line

2025 vs. 2024

2024 vs. 2023

2025

% of Net Sales

2024

% of Net Sales

$ Change

% Change

2023

% of Net Sales

$ Change

% Change

Fastening and Hardware

$

1,051,361 

67.7 

%

$

1,016,483 

69.0 

%

34,878 

3.4 

%

$

1,021,803 

69.2 

%

(5,320)

(0.5)

%

Personal Protective

270,937 

17.5 

%

229,925 

15.6 

%

41,012 

17.8 

%

216,403 

14.7 

%

13,522 

6.2 

%

Keys and Key Fobs

188,954 

12.2 

%

178,083 

12.1 

%

10,871 

6.1 

%

186,031 

12.6 

%

(7,948)

(4.3)

%

Engraving and Resharp

40,972 

2.6 

%

48,104 

3.3 

%

(7,132)

(14.8)

%

52,240 

3.5 

%

(4,136)

(7.9)

%

Consolidated

$

1,552,224 

$

1,472,595 

$

79,629 

$

1,476,477 

$

(3,882)

See Note 2 - Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements for a reconciliation of net sales by product line to net sales by operating segment.

24| December 27, 2025 Form 10-K

Net Sales by Segment

2025 vs. 2024

2024 vs. 2023

2025

% of Net Sales

2024

% of Net Sales

$ Change

% Change

2023

% of Net Sales

$ Change

% Change

Hardware and Protective Solutions

$

1,193,957 

76.9 

%

$

1,107,993 

75.2 

%

$

85,964 

7.8 

%

$

1,090,473 

73.9 

%

$

17,520 

1.6 

%

Robotics and Digital Solutions

220,157 

14.2 

%

216,701 

14.7 

%

3,456 

1.6 

%

229,546 

15.5 

%

(12,845)

(5.6)

%

Canada

138,110 

8.9 

%

147,901 

10.0 

%

(9,791)

(6.6)

%

156,458 

10.6 

%

(8,557)

(5.5)

%

Consolidated

$

1,552,224 

$

1,472,595 

$

79,629 

$

1,476,477 

$

(3,882)

Hardware and Protective Solutions revenues consist primarily of the delivery of fasteners, anchors, specialty fastening products, and personal protective equipment such as gloves and eye-wear as well as accessories and in-store merchandising services for the related product category.

Robotics and Digital Solutions revenues consist primarily of sales of keys and identification tags through self-service key duplication and engraving kiosks. It also includes our associate-assisted key duplication systems.

Canada revenues consist primarily of the delivery to Canadian customers of fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, personal protective equipment, and identification items as well as in-store merchandising services for the related product category.

Net sales increased $79.6 million in total during 2025. The increase in net sales was primarily driven by the factors described below:

Hardware and Protective Solutions increased $86.0 million due to the following:

•Hardware sales increased $45.9 million primarily driven by $59.4 million in price increases offset by $13.9 million in reduced volume driven by market softness.

•Protective equipment sales increased by $40.0 million primarily driven by $40.5 million of net sales added by the acquisition of Intex. Additionally, sales were impacted by price increases of $9.5 million offset by $9.5 million in reduced volume.

Robotics and Digital Solutions sales increased $3.5 million primarily driven by $14.3 million in price increases offset by $11.2 million in reduced volume.

Canada net sales decreased by $9.8 million primarily due to volume decreases of $4.8 million, an unfavorable impact of the exchange rate from Canadian dollars to U.S. dollars of $2.8 million, and price decreases of $2.2 million.

Cost of Sales (excluding depreciation and amortization)

The following table summarizes cost of sales by segment:

2025 vs. 2024

2024 vs. 2023

2025

% of Segment Net Sales

2024

% of Segment Net Sales

$ Change

% Change

2023

% of Segment Net Sales

$ Change

% Change

Hardware and Protective Solutions

$

654,836 

54.8%

$

617,689 

55.7%

$

37,147 

6.0%

$

667,072 

61.2%

$

(49,383)

(7.4)%

Robotics and Digital Solutions

59,817 

27.2%

60,233 

27.8%

(416)

(0.7)%

64,389 

28.1%

(4,156)

(6.5)%

Canada

81,222 

58.8%

86,769 

58.7%

(5,547)

(6.4)%

97,495 

62.3%

(10,726)

(11.0)%

Consolidated

$

795,875 

$

764,691 

$

31,184 

$

828,956 

$

(64,265)

Hardware and Protective Solutions cost of sales as a percentage of net sales decreased primarily due to the timing of price increases driven by higher tariff costs. During 2025, we began taking pricing actions with our customers to align with the additional tariff costs we paid in 2025. We expect higher tariff expense to be included in our cost of sales as we sell through the inventory purchased prior to the new tariffs and transition to selling inventory purchased after the new tariffs. These were partially offset by a higher mix of Protective Solutions sales which generally have higher costs than Hardware Solutions products.

Our Robotics and Digital Solutions cost of sales as a percentage of net sales decreased primarily due to the impact of price increases and sales mix.

Canada cost of sales as a percentage of net sales was comparable to prior year.

25| December 27, 2025 Form 10-K

Selling, Warehouse, and General and Administrative Expenses

The following table summarizes selling, warehouse, and general and administrative expense ("SG&A") by segment:

2025 vs. 2024

2024 vs. 2023

2025

% of Segment Net Sales

2024

% of Segment Net Sales

$ Change

% Change

2023

% of Segment Net Sales

$ Change

% Change

Hardware and Protective Solutions

$

360,570 

30.2 

%

$

348,532 

31.5 

%

$

12,038 

3.5 

%

$

317,177 

29.1 

%

$

31,355 

9.9 

%

Robotics and Digital Solutions

95,600 

43.4 

%

92,813 

42.8 

%

2,787 

3.0 

%

90,239 

39.3 

%

2,574 

2.9 

%

Canada

45,830 

33.2 

%

47,357 

32.0 

%

(1,527)

(3.2)

%

44,694 

28.6 

%

2,663 

6.0 

%

Consolidated

$

502,000 

$

488,702 

$

13,298 

$

452,110 

$

36,592 

Hardware and Protective Solutions SG&A increased in 2025 due to the following:

•Selling expense increased by $9.6 million primarily due to increased compensation and benefit expense.

•Warehouse expense increased $1.9 million due to inflation in shipping costs along with rent and maintenance. Additionally, warehouse expense includes $1.0 million in costs incurred related to our Cincinnati, Ohio distribution center consolidation project.

•General and administrative (“G&A”) increased by $0.5 million. The increase was primarily driven by an increased investment into information technology along with increased compensation and benefit expenses and legal fees. These current year increases were partially offset by lower bad debt expense in 2025 relative to 2024. The year ended December 28, 2024 included a write off of $8.4 million of accounts receivable, net, due to True Value declaring bankruptcy.

Robotics and Digital Solutions SG&A increased in 2025 due to the following:

•Selling expense increased by $6.4 million primarily due to the shift from full-service keys to self-service keys, which have a higher variable selling cost.

•Warehouse expense increased by $1.4 million due to inflation in labor and shipping costs.

•G&A decreased by $5.0 million. The decrease was primarily due to a $5.0 million settlement agreement with a kiosk development partner in 2024 (see Note 15 - Commitments and Contingencies).

Canada SG&A decreased in 2025 due to the following:

•Selling expense decreased $0.3 million primarily due to lower severance costs in the current year as relative to 2024.

•Warehouse expense decreased $0.9 million primarily due to lower sales volumes along with improved operational efficiencies in addition to lower severance costs in the current year as relative to 2024 due to restructuring activities in the prior year.

•G&A was comparable to prior year.

Other Operating Expenses

Depreciation expense increased $11.1 million due to increased capital spend on merchandising racks along with key duplication kiosks.

Amortization expense was comparable to prior year.

In the year ended December 27, 2025, other (income) expense, net consisted primarily of a $0.2 million gain on the revaluation of the contingent consideration associated with the acquisition of Resharp and Instafob (see Note 14 - Fair Value Measurements of the Notes to Consolidated Financial Statements for additional information) along with income from certain rebates received. In the year ended December 28, 2024, other expense (income), net consisted primarily of an exchange rate loss of $0.9 million and a $0.2 million loss on the revaluation of the contingent consideration associated with the acquisition of Resharp and Instafob. Offsetting these losses was income from certain rebates received.

26| December 27, 2025 Form 10-K

Income from Operations

2025 vs. 2024

2024 vs. 2023

2025

2024

$ Change

% Change

2023

$ Change

% Change

Hardware and Protective Solutions

$

90,553 

$

60,138 

$

30,415 

50.6 

%

$

11,644 

$

48,494 

416.5 

%

Robotics and Digital Solutions

17,322 

20,549 

(3,227)

(15.7)

%

39,676 

(19,127)

(48.2)

%

Canada

6,094 

8,114 

(2,020)

(24.9)

%

9,608 

(1,494)

(15.5)

%

Total segment income from operations

$

113,969 

$

88,801 

$

25,168 

28.3 

%

$

60,928 

$

27,873 

45.7 

%

Income from operations in our Hardware and Protective Solutions segment increased $30.4 million due to the changes in net sales, cost of sales, SG&A expense, and other (income) expense, net described above. Depreciation expense increased by $6.3 million due to increased capital spend on merchandising racks and facility relocations completed in the prior year.

Income from operations in our Robotics and Digital Solutions segment decreased by $3.2 million primarily due to the changes in net sales, cost of sales, and SG&A expenses described above and a $4.8 million increase in depreciation expense associated with increased capital spend on key machines. Offsetting this increased expense was a gain of $0.5 million in other (income) expense driven by the changes in revaluation of the contingent consideration.

Canada's income from operations decreased by $2.0 million primarily due to the changes in net sales, cost of sales, and SG&A expenses described above. Canada also recorded exchange rate loss of $0.1 million in 2025 compared to a loss of $0.7 million in 2024.

Income (Loss) Before Income Taxes

Interest expense, net, decreased $2.8 million primarily due to a reduction in outstanding debt and a reduction in interest rate spreads driven by the debt repricing in the first quarter of 2025 (see Note 7 - Long-Term Debt of the Notes to Consolidated Financial Statements for additional information).

Income Taxes:

For the years ended December 27, 2025 and December 28, 2024 the effective income tax rate was 28.8% and 35.0%, respectively. The Company recorded an income tax provision for the year ended December 27, 2025 of $16.3 million, and an income tax provision for the year ended December 28, 2024 of $9.3 million.

In 2025, the Company's effective tax rate differed from the U.S. federal statutory tax rate due to certain non-deductible expenses. In addition, the effective tax rate differed due to state and foreign income taxes and our federal research and development credit.

In 2024, the Company's effective tax rate differed from the U.S. federal statutory tax rate primarily due to certain non-deductible expenses. In addition, the effective tax rate differed due to state and foreign income taxes and withholding taxes on distributions from our Canadian subsidiary.

Year Ended December 28, 2024 vs Year Ended December 30, 2023

For a comparison of our results of operations for fiscal 2024 to fiscal 2023, see “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" of our Form 10-K for fiscal 2024.

27| December 27, 2025 Form 10-K

Non-GAAP Financial Measures

Adjusted EBITDA is a non-GAAP financial measure and is the primary basis used to measure the operational strength and performance of our businesses, as well as to assist in the evaluation of underlying trends in our businesses. This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of our businesses and from intangible assets recognized in business combinations. It is also unaffected by our capital and tax structures, as our management excludes these results when evaluating our operating performance. Our management and Board of Directors use this financial measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating segments. Additionally, we believe that Adjusted EBITDA is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure of Adjusted EBITDA may not be directly comparable to similar measures used by other companies.

The following table presents a reconciliation of Net income (loss), the most directly comparable financial measures under GAAP, to Adjusted EBITDA for the periods presented:

(dollars in thousands)

Year Ended December 27, 2025

Year Ended

December 28, 2024

Year Ended December 30, 2023

Net income (loss)

$

40,305 

$

17,255 

$

(9,589)

Income tax expense

16,291 

9,297 

2,207 

Interest expense, net

56,467 

59,241 

68,310 

Depreciation

79,870 

68,766 

59,331 

Amortization

61,232 

61,274 

62,309 

EBITDA

$

254,165 

$

215,833 

$

182,568 

Stock compensation expense

14,246 

13,463 

12,004 

Restructuring and other costs(1)

4,058 

2,978 

3,031 

Litigation expense (2)

1,950 

5,000 

339 

Transaction and integration expense (3)

232 

1,243 

1,754 

Change in fair value of contingent consideration

(240)

228 

(4,936)

Refinancing costs (4)

906 

3,008 

— 

Impairment charges (5)

— 

— 

24,600 

Adjusted EBITDA

$

275,317 

$

241,753 

$

219,360 

(1)Restructuring and other costs includes consulting and other costs associated with severance related to our distribution center relocations and corporate restructuring activities. 2024 and 2023 include costs associated with the Cybersecurity Incident that occurred in May 2023, see Note 15 - Commitments and Contingencies of the Notes to Consolidated Financial Statements for additional information.

(2)Litigation expense includes an accrual for the tentative settlement of a California wage-hour class action / Private Attorneys General Act (PAGA) claim in 2025 along with a settlement and legal fees paid in association with a dispute with a kiosk development partner in 2024, and litigation with the Hy-Ko Products Company LLC litigation (see Note 15 - Commitments and Contingencies of the Notes to Consolidated Financial Statements for additional information).

(3)Transaction and integration expense includes professional fees and other costs related to acquisition activity, including without limitation the Koch Industries, Inc. and Intex DIY, Inc acquisitions and the CCMP secondary offerings in 2023.

(4)In the first quarters of 2025 and 2024, we entered into a Repricing Amendment (2025 Repricing Amendment and 2024 Repricing Amendment) on our existing Senior Term Loan due July 14, 2028 (see Note 7 - Long-Term Debt of the Notes to Consolidated Financial Statements for additional information).

(5)In the fourth quarter of 2023, we recorded an impairment charge in our Hardware and Protective Solutions segment of $24.6 million, primarily related to review of certain product offerings. In the fourth quarter of 2023, we evaluated a specific product line and decided to exit certain retail locations and markets, which reduced the future cash flows from this product line and impacted the lower of cost or market valuation of inventory. As a result of this review we impaired $19.6 million of intangible assets and recorded inventory revaluation charges of $5.0 million.

The following tables present a reconciliation of segment operating income, the most directly comparable financial measures under GAAP, to segment Adjusted EBITDA for the periods presented (amounts in thousands). Certain amounts in the prior year presentation between segments were reclassified to conform to the current year’s presentation:

28| December 27, 2025 Form 10-K

Year Ended December 27, 2025

Hardware and Protective Solutions

Robotics and Digital Solutions

Canada

Operating income

$

90,553 

$

17,322 

$

6,094 

Depreciation and amortization

88,829 

47,390 

4,883 

Stock compensation expense

12,080 

1,144 

1,022 

Restructuring and other costs

2,783 

120 

1,155 

Litigation expense

1,780 

170 

— 

Transaction and integration expense

225 

7 

— 

Change in fair value of contingent consideration

— 

(240)

— 

Adjusted EBITDA

$

196,250 

$

65,913 

$

13,154 

Year Ended December 28, 2024

Hardware and Protective Solutions

Robotics and Digital Solutions

Canada

Operating income

$

60,138 

$

20,549 

$

8,114 

Depreciation and amortization

82,446 

42,661 

4,933 

Stock compensation expense

11,562 

1,117 

784 

Restructuring and other costs

340 

689 

1,949 

Litigation expense

— 

5,000 

— 

Transaction and integration expense

1,212 

31 

— 

Change in fair value of contingent consideration

— 

228 

— 

Adjusted EBITDA

$

155,698 

$

70,275 

$

15,780 

Year Ended December 30, 2023

Hardware and Protective Solutions

Robotics and Digital Solutions

Canada

Operating income

$

11,644 

$

39,676 

$

9,608 

Depreciation and amortization

76,757 

40,055 

4,828 

Stock compensation expense

10,204 

1,035 

765 

Restructuring and other costs

2,582 

339 

110 

Litigation expense

— 

339 

— 

Transaction and integration expense

1,594 

160 

— 

Impairment charges

24,600 

— 

— 

Change in fair value of contingent consideration

— 

(4,936)

— 

Adjusted EBITDA

$

127,381 

$

76,668 

$

15,311 

Liquidity and Capital Resources:

The following table presents the key categories of our consolidated statements of cash flows:

Year Ended December 27, 2025

Year Ended December 28, 2024

$ Change

Year Ended December 30, 2023

$ Change

Net cash provided by operating activities

$

105,185 

$

183,336 

$

(78,151)

$

238,035 

$

(54,699)

Net cash used for investing activities

(70,351)

(143,397)

73,046 

(67,852)

(75,545)

Net cash used for financing activities

(52,220)

(39,268)

(12,952)

(161,976)

122,708 

Net (decrease) increase in cash and cash equivalents

(17,234)

5,957 

(23,191)

7,472 

(1,515)

29| December 27, 2025 Form 10-K

Operating Cash Flows:

Operating cash flows for the year ended December 27, 2025 were unfavorably impacted by increases in the costs of inventory and other accrued liabilities due to the recently enacted tariffs.

Operating cash flows for the year ended for the year ended December 28, 2024 were unfavorably impacted by increases in accounts receivable due to accounts receivable generated by the Koch business post acquisition. Additionally, we saw increased accrued liabilities due to the timing of inventory purchases and payments. Finally, in 2024 we saw increases in accrued incentive compensation which favorably impacted our cash flow from operating activities.

Investing Cash Flows:

Capital Expenditures:

Cash of $70.1 million, $85.2 million, and $65.8 million, was used in the years ending December 27, 2025, December 28, 2024 and December 30, 2023, respectively, to invest in new key duplicating kiosks and machines and merchandising racks.

Acquisitions:

In 2025, the Company did not complete any new acquisitions. In 2024, the Company completed its acquisitions of Koch Industries, Inc and Intex DIY, Inc for a total purchase price of $23.8 million and $34.1 million, respectively (see Note 5 - Acquisitions of the Notes to Consolidated Financial Statements for additional information).

Financing Cash Flows:

Term Loan:

The Company used $8.5 million of cash for principal payments on the senior term loan. As of December 27, 2025, we have outstanding borrowings of $637.0 million on the term loan. In 2024 the Company used $106.4 million of cash for principal payments on the senior term loan, including a $100.0 million prepayment against the outstanding term loan balance without payment of a premium or penalty. See Note 7 - Long-Term Debt of the Notes to Consolidated Financial Statements for additional information.

ABL Revolver:

Our revolver draws, net of repayments, used cash of $26.0 million in the year ended December 27, 2025 primarily used to fund the additional tariff costs in the current year. During the year ended December 28, 2024, our revolver repayments, net of draws, provided cash of $62.0 million as part of the Company's initiative to pay down the term loan along with the acquisitions of Koch and Intex.

Treasury Stock:

In the year ended December 27, 2025, the Company repurchased $12.4 million of its common stock, see Note 10 - Equity and Accumulated Other Comprehensive Loss of the Notes to Consolidated Financial Statements for additional information.

Stock Option Exercises:

In the years ended December 27, 2025, December 28, 2024, and December 30, 2023, the Company received $1.2 million, $9.7 million, and $2.2 million, respectively, from the exercise of stock options.

Liquidity:

We believe that projected cash flows from operations and ABL Revolver availability will be sufficient to fund working capital and capital expenditure needs for the next 12 months. As of December 27, 2025, the ABL Revolver had an outstanding balance of $36.0 million and had outstanding letters of credit of $3.3 million, leaving $279.1 million of available borrowings as a source of liquidity. Our material cash requirements for known contractual obligations include, debt, and lease obligations, each of which are discussed in more detail earlier in this section and in the footnotes to consolidated financial statements, along with capital expenditures. Our future investments

30| December 27, 2025 Form 10-K

will depend primarily on the builds of new key duplicating kiosks and machines, merchandising racks, and IT projects that we undertake and the timing of these expenditures.

We also have cash requirements for purchase orders and contracts for the purchase of inventory and other goods and services, which are based on current distribution needs and are fulfilled by our suppliers within the short term.

Our working capital (current assets minus current liabilities) position of $388.9 million as of December 27, 2025 represents an increase of $69.4 million from the December 28, 2024 level of $319.5 million driven primarily by the impact of tariff costs and related increases in receivables driven by increased prices. We expect to generate sufficient operating cash flows to meet our short-term liquidity needs, and we expect to maintain access to the capital markets, although there can be no assurance of our ability to do so. However, disruption and volatility in the global capital markets, could impact our capital resources and liquidity in the future.

Related Party Transactions:

The information required by this Item is set forth in the section entitled Related Party Transactions in the 2026 Proxy Statement and is hereby incorporated by reference into this Form 10-K.

Critical Accounting Policies and Estimates:

Our accounting policies are more fully described in Note 2 - Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements. As disclosed in that note, the preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Future events cannot be predicted with certainty and, therefore, actual results could differ from those estimates. The following section describes our critical accounting policies.

Inventory Realization:

Inventories consisting predominantly of finished goods are valued at the lower of cost or net realizable value, cost being determined principally on the standard cost method, which approximates the first-in-first-out “FIFO” method. The historical usage rate is the primary factor used in assessing the net realizable value of excess and obsolete inventory. A reduction in the carrying value of an inventory item from cost to net realizable value is recorded for inventory with excess on-hand quantities as determined based on historic and projected sales, product category, and stage in the product life cycle. We do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions we use to calculate our excess and obsolete inventory reserve. However, if our estimates regarding excess and obsolete inventory are inaccurate, we may be exposed to losses or gains that could be material. A 5% difference in actual excess and obsolete inventory reserved for at December 27, 2025 would have affected net earnings by approximately $1.6 million in fiscal 2025.

Goodwill:

We have adopted ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test and instead requires an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. If, after assessing the totality of events or circumstances, we determine that the fair value of a reporting unit is less than the carrying value, then we would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit.

Our annual impairment assessment is performed for the reporting units as of October 1. In 2025, 2024, and 2023, with the assistance of an independent third-party specialist, management assessed the value of our reporting units based on a based on a discounted cash flow model and a guideline public company method. Assumptions critical to our fair value estimates under the discounted cash flow model include the projected net sales and EBITDA growth rates and the discount rates. The results of the quantitative assessments in 2025, 2024, and 2023 indicated that the fair value of each reporting unit was in excess of its carrying value.

Significant assumptions used in the determination of the estimated fair values of the reporting units are the projected net sales and EBITDA growth rates and the discount rate. The projected net sales and EBITDA growth rates are dependent on overall market growth rates, the competitive environment, inflation and our ability to pass price increase along to our customers, relative currency exchange rates, and business activities that impact market

31| December 27, 2025 Form 10-K

share. As a result, the growth rate could be adversely impacted by a sustained deceleration in category growth, devaluation of the U.S. Dollar against other currencies, an increased competitive environment, or an economic recession. The discount rate, which is consistent with a weighted average cost of capital that is likely to be expected by a market participant, is based upon industry required rates of return, including consideration of both debt and equity components of the capital structure. Our discount rate may be impacted in the future by adverse changes in the macroeconomic environment and volatility in the equity and debt markets.

While management can and has implemented strategies to address these events, changes in operating plans or adverse changes in the future could reduce the underlying cash flows used to estimate fair values and could result in a decline in fair value that would trigger future impairment charges. As of December 27, 2025, the carrying value of our largest reporting unit, Hardware Solutions, goodwill was $450.9 million.

Recent Accounting Pronouncements:

Recently issued accounting standards are described in Note 3 - Recent Accounting Pronouncements of the Notes to Consolidated Financial Statements.