HAMILTON BEACH BRANDS HOLDING COMPANY ANNOUNCES FIRST QUARTER 2025 RESULTS
Hamilton Beach Brands reported positive first quarter 2025 results, with revenue increasing 4.0% to $133.4 million and gross margin expanding by 120 basis points to 24.6%. The company achieved an operating profit of $2.3 million, compared to a loss of $0.9 million in the previous year.
Key financial highlights include:
- Cash flow from operations: $6.6 million
- Net debt reduced to $1.7 million from $23.7 million year-over-year
- Net income: $1.8 million ($0.13 per diluted share)
CEO R. Scott Tidey noted strong performance in the core U.S. consumer business despite macroeconomic headwinds. However, due to recent tariff increases on Chinese imports, the company has suspended its forward-looking guidance. Management is actively working to diversify sourcing and implement measures to mitigate higher tariffs, with benefits expected in 2026.
Hamilton Beach Brands ha riportato risultati positivi nel primo trimestre del 2025, con un aumento del fatturato del 4,0% a 133,4 milioni di dollari e un margine lordo in crescita di 120 punti base, raggiungendo il 24,6%. L'azienda ha registrato un utile operativo di 2,3 milioni di dollari, rispetto a una perdita di 0,9 milioni nello stesso periodo dell'anno precedente.
I principali dati finanziari includono:
- Flusso di cassa operativo: 6,6 milioni di dollari
- Debito netto ridotto a 1,7 milioni di dollari da 23,7 milioni anno su anno
- Utile netto: 1,8 milioni di dollari (0,13 dollari per azione diluita)
Il CEO R. Scott Tidey ha evidenziato una solida performance nel business consumer statunitense nonostante le difficoltà macroeconomiche. Tuttavia, a causa dei recenti aumenti tariffari sulle importazioni cinesi, l'azienda ha sospeso le previsioni future. La direzione sta lavorando attivamente per diversificare le fonti di approvvigionamento e adottare misure per mitigare l'impatto delle tariffe più elevate, con benefici attesi nel 2026.
Hamilton Beach Brands reportó resultados positivos en el primer trimestre de 2025, con ingresos que aumentaron un 4,0% hasta 133,4 millones de dólares y un margen bruto que se expandió 120 puntos básicos hasta el 24,6%. La compañía logró un beneficio operativo de 2,3 millones de dólares, frente a una pérdida de 0,9 millones en el año anterior.
Los aspectos financieros clave incluyen:
- Flujo de caja operativo: 6,6 millones de dólares
- Deuda neta reducida a 1,7 millones desde 23,7 millones año tras año
- Ingreso neto: 1,8 millones de dólares (0,13 dólares por acción diluida)
El CEO R. Scott Tidey destacó un sólido desempeño en el negocio principal de consumo en EE. UU. a pesar de los desafíos macroeconómicos. Sin embargo, debido a los recientes aumentos de aranceles sobre las importaciones chinas, la compañía ha suspendido sus previsiones a futuro. La gerencia está trabajando activamente para diversificar las fuentes de abastecimiento e implementar medidas que mitiguen los mayores aranceles, con beneficios esperados para 2026.
Hamilton Beach Brands는 2025년 1분기 긍정적인 실적을 보고했으며, 매출은 4.0% 증가하여 1억 3,340만 달러를 기록했고, 총마진은 120베이시스 포인트 상승하여 24.6%에 달했습니다. 회사는 작년 같은 기간 90만 달러 손실에서 230만 달러 영업이익을 달성했습니다.
주요 재무 하이라이트는 다음과 같습니다:
- 영업활동 현금흐름: 660만 달러
- 순부채는 전년 대비 2,370만 달러에서 170만 달러로 감소
- 순이익: 180만 달러 (희석 주당 0.13달러)
CEO R. Scott Tidey는 거시경제적 어려움에도 불구하고 미국 내 핵심 소비자 사업에서 강한 성과를 보였다고 언급했습니다. 다만, 최근 중국산 수입품에 대한 관세 인상으로 인해 회사는 향후 전망을 보류했습니다. 경영진은 소싱 다변화와 높은 관세를 완화하기 위한 조치를 적극 추진 중이며, 2026년에 그 효과가 기대됩니다.
Hamilton Beach Brands a annoncé des résultats positifs pour le premier trimestre 2025, avec un chiffre d'affaires en hausse de 4,0 % à 133,4 millions de dollars et une marge brute en progression de 120 points de base à 24,6 %. La société a réalisé un bénéfice d'exploitation de 2,3 millions de dollars, contre une perte de 0,9 million l'année précédente.
Les principaux faits financiers sont :
- Flux de trésorerie opérationnel : 6,6 millions de dollars
- Dette nette réduite à 1,7 million de dollars contre 23,7 millions d'année en année
- Résultat net : 1,8 million de dollars (0,13 dollar par action diluée)
Le PDG R. Scott Tidey a souligné une solide performance dans le secteur principal de la consommation aux États-Unis malgré des vents contraires macroéconomiques. Cependant, en raison des récentes hausses des tarifs sur les importations chinoises, la société a suspendu ses prévisions à venir. La direction travaille activement à diversifier ses sources d'approvisionnement et à mettre en œuvre des mesures pour atténuer l'impact des tarifs plus élevés, avec des bénéfices attendus en 2026.
Hamilton Beach Brands meldete positive Ergebnisse für das erste Quartal 2025, mit einem Umsatzanstieg von 4,0 % auf 133,4 Millionen US-Dollar und einer Ausweitung der Bruttomarge um 120 Basispunkte auf 24,6 %. Das Unternehmen erzielte einen Betriebsgewinn von 2,3 Millionen US-Dollar, im Vergleich zu einem Verlust von 0,9 Millionen im Vorjahr.
Wichtige finanzielle Höhepunkte umfassen:
- Barmittelzufluss aus operativer Tätigkeit: 6,6 Millionen US-Dollar
- Nettoverbindlichkeiten wurden von 23,7 Millionen auf 1,7 Millionen US-Dollar reduziert
- Nettoeinkommen: 1,8 Millionen US-Dollar (0,13 US-Dollar je verwässerter Aktie)
CEO R. Scott Tidey betonte eine starke Leistung im Kernbereich des US-Verbrauchergeschäfts trotz makroökonomischer Gegenwinde. Aufgrund der jüngsten Zollsteigerungen auf chinesische Importe hat das Unternehmen jedoch seine Prognose ausgesetzt. Das Management arbeitet aktiv an der Diversifizierung der Beschaffungsquellen und der Umsetzung von Maßnahmen zur Abmilderung der höheren Zölle, wobei Vorteile für 2026 erwartet werden.
- Revenue grew 4.0% to $133.4M vs $128.3M in Q1 2024
- Gross margin expanded 120 basis points to 24.6% from 23.4%
- Operating profit improved to $2.3M from -$0.9M loss last year
- Net income rose to $1.8M ($0.13/share) vs -$1.2M loss (-$0.08/share)
- Net debt reduced significantly to $1.7M from $23.7M year-over-year
- SG&A expenses decreased to $30.4M from $30.9M
- HealthBeacon acquisition contributing with higher margin revenue ($1.5M)
- Global Commercial market revenue decreased due to international market softness
- Cash flow from operations declined to $6.6M from $19.7M last year
- New China tariff increases creating significant business uncertainty
- Company suspended forward-looking guidance due to tariff uncertainty
- Working capital efficiency decreased compared to prior year
Insights
HBB reports improved Q1 performance but suspends guidance due to tariff uncertainty, creating mixed outlook despite stronger financials.
Hamilton Beach Brands delivered notable financial improvements in Q1 2025, with revenue growing
The company's profitability metrics show significant turnaround, swinging from an operating loss of
However, operating cash flow declined dramatically from
The most concerning development is HBB's suspension of forward guidance due to uncertainty created by recently increased tariffs on Chinese imports. Management specifically cites "significant uncertainty" in planning for the second half of 2025, though they're actively working to diversify sourcing. Their mitigation efforts are expected to benefit margins only in 2026, indicating potential near-term pressure.
Despite these challenges, HBB continued returning value to shareholders through
Revenue Increased
Gross Margin Expanded 120 Basis Points to
Cash Flow from Operations was
First Quarter 2025 Overview
- Revenue increased
4.0% to$133.4 million $128.3 million - Gross margin increased 120 basis points to
24.6% compared to23.4% - Operating profit increased to
$2.3 million $0.9 million - Cash flow from operating activities was
$6.6 million $19.7 million - Total debt was
$50.0 million $1.7 million $23.7 million
"Our first quarter results reflect solid improvement over last year even in the face of strengthening macroeconomic headwinds," said R. Scott Tidey, President and Chief Executive Officer. "The positive momentum we generated in the fourth quarter carried into the start of 2025 as demand for our core
"Prior to the most recent round of tariff hikes imposed on
Results of the First Quarter 2025 Compared to the First Quarter 2024
Total revenue grew
Gross profit was
Selling, general and administrative expenses (SG&A) decreased to
Operating profit was
Interest income, net increased to
Income tax expense was
Net income was
Cash Flow and Debt
For the quarter ended March 31, 2025, net cash provided by operating activities was
The Company allocated its cash flow primarily to return value to shareholders through share repurchases and the quarterly dividend. The Company repurchased 141,435 shares of its Class A common stock at prevailing market prices for an aggregate purchase amount of
On March 31, 2025, net debt was
Outlook
As a result of the increased uncertainty caused by higher tariffs recently imposed by
Conference Call
The Company will conduct an earnings conference call and webcast on Wednesday, April 30, 2025, at 4:30 p.m. Eastern time. The call may be accessed by dialing 888-350-3452 (toll free), International 647-362-9199. Conference ID: 1809480. The conference call will also be webcast live on the Company's Investor Relations website at www.hamiltonbeachbrands.com. An archive of the webcast will be available on the website.
About Hamilton Beach Brands Holding Company
Hamilton Beach Brands Holding Company is a leading designer, marketer, and distributor of a wide range of brand name small electric household and specialty housewares appliances, and commercial products for restaurants, fast food chains, bars, and hotels, and is a provider of connected devices and software for healthcare management. The Company's owned consumer brands include Hamilton Beach®, Proctor Silex®, Hamilton Beach Professional®, Weston®, and TrueAir®. The Company's owned commercial brands include Hamilton Beach Commercial® and Proctor Silex Commercial®. The Company licenses the brands for CHI® premium garment care products, CloroxTM home appliances, and Brita HubTM countertop electric water filtration appliances. The Company has exclusive multiyear agreements to design, sell, market, and distribute Bartesian® cocktail makers and Numilk® plant-based milk makers. The Company's Hamilton Beach Health subsidiary is focused on expanding the Company's participation in the home health and medical markets. In 2024, Hamilton Beach Health acquired HealthBeacon, a medical technology firm that specializes in developing connected devices, and strategic partner of the Company since 2021. For more information about Hamilton Beach Brands Holding Company, visit www.hamiltonbeachbrands.com.
Forward-Looking Statements
The statements contained in this news release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Such risks and uncertainties include, without limitation: (1) uncertain or unfavorable global economic conditions and impacts from tariffs, inflation, rising interest rates, recessions or economic slowdowns; (2) changes in costs, including transportation costs and tariffs, of sourced products; (3) the Company's ability to source and ship products to meet anticipated demand; (4) changes in or unavailability of quality or cost effective suppliers; (5) the Company's ability to successfully manage constraints throughout the global transportation supply chain; (6) delays in delivery of sourced products; (7) changes in the sales prices, product mix or levels of consumer purchases of small electric and specialty housewares appliances; (8) changes in consumer retail and credit markets, including the increasing volume of transactions made through third-party internet sellers; (9) bankruptcy of or loss of major retail customers or suppliers; (10) exchange rate fluctuations, changes in the import tariffs and monetary policies and other changes in the regulatory climate in the countries in which the Company operates or buys and/or sells products; (11) the impact of tariffs on customer purchasing patterns; (12) customer acceptance of changes in costs of or delays in the development of new products; (13) product liability, regulatory actions or other litigation, warranty claims or returns of products; (14) increased competition, including consolidation within the industry; (15) changes in customers' inventory management strategies; (16) shifts in consumer shopping patterns, gasoline prices, weather conditions, the level of consumer confidence and disposable income as a result of economic conditions, unemployment rates or other events or conditions that may adversely affect the level of customer purchases of the Company's products; (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation; (18) the Company's ability to identify, acquire or develop, and successfully integrate, new businesses or new product lines; and (19) other risk factors, including those described in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2024. Furthermore, the future impact of unfavorable economic conditions, including inflation, changing interest rates, availability of capital markets and consumer spending rates remains uncertain. In uncertain economic environments, we cannot predict whether or when such circumstances may improve or worsen, or what impact, if any, such circumstances could have on our business, results of operations, cash flows and financial position.
*****
HAMILTON BEACH BRANDS HOLDING COMPANY | |||
THREE MONTHS ENDED MARCH 31 | |||
2025 | 2024 | ||
(In thousands, except per | |||
Revenue | $ 133,372 | $ 128,277 | |
Cost of sales | 100,601 | 98,223 | |
Gross profit | 32,771 | 30,054 | |
Selling, general and administrative expenses | 30,380 | 30,947 | |
Amortization of intangible assets | 78 | 50 | |
Operating profit (loss) | 2,313 | (943) | |
Interest (income) expense, net | (72) | 156 | |
Other (income) expense, net | (149) | 173 | |
Income (loss) before income taxes | 2,534 | (1,272) | |
Income tax expense (benefit) | 729 | (110) | |
Net income (loss) | $ 1,805 | $ (1,162) | |
Basic and diluted earnings (loss) per share | $ 0.13 | $ (0.08) | |
Basic weighted average shares outstanding | 13,769 | 14,162 | |
Diluted weighted average shares outstanding | 13,788 | 14,162 | |
HAMILTON BEACH BRANDS HOLDING COMPANY | |||||
MARCH 31 | DECEMBER 31 | MARCH 31 | |||
(In thousands) | |||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ 48,296 | $ 45,644 | $ 26,279 | ||
Trade receivables, net | 82,331 | 117,068 | 89,596 | ||
Inventory | 165,890 | 124,904 | 133,523 | ||
Prepaid expenses and other current assets | 16,931 | 16,103 | 12,893 | ||
Total current assets | 313,448 | 303,719 | 262,291 | ||
Property, plant and equipment, net | 34,015 | 34,401 | 36,851 | ||
Right-of-use lease assets | 37,961 | 36,049 | 37,848 | ||
Goodwill | 7,099 | 7,099 | 6,253 | ||
Other intangible assets, net | 2,023 | 2,101 | 2,375 | ||
Deferred income taxes | 7,115 | 6,693 | 2,410 | ||
Deferred costs | 2,720 | 16,156 | 14,550 | ||
Other non-current assets | 13,639 | 8,849 | 6,372 | ||
Total assets | $ 418,020 | $ 415,067 | $ 368,950 | ||
Liabilities and stockholders' equity | |||||
Current liabilities | |||||
Accounts payable | $ 126,342 | $ 104,161 | $ 96,579 | ||
Accrued compensation | 5,302 | 18,792 | 5,701 | ||
Accrued product returns | 7,074 | 7,876 | 6,135 | ||
Lease liabilities | 5,531 | 5,193 | 6,086 | ||
Other current liabilities | 14,589 | 18,098 | 11,693 | ||
Total current liabilities | 158,838 | 154,120 | 126,194 | ||
Revolving credit agreements | 50,000 | 50,000 | 50,000 | ||
Lease liabilities, non-current | 40,184 | 39,008 | 41,009 | ||
Other long-term liabilities | 5,817 | 6,036 | 6,340 | ||
Total liabilities | 254,839 | 249,164 | 223,543 | ||
Stockholders' equity | |||||
Preferred stock, par value | — | — | — | ||
Class A Common stock | 118 | 115 | 114 | ||
Class B Common stock | 36 | 36 | 36 | ||
Capital in excess of par value | 77,821 | 76,668 | 72,303 | ||
Treasury stock | (29,575) | (26,202) | (12,567) | ||
Retained earnings | 124,083 | 123,863 | 96,705 | ||
Accumulated other comprehensive loss | (9,302) | (8,577) | (11,184) | ||
Total stockholders' equity | 163,181 | 165,903 | 145,407 | ||
Total liabilities and stockholders' equity | $ 418,020 | $ 415,067 | $ 368,950 | ||
HAMILTON BEACH BRANDS HOLDING COMPANY | |||
THREE MONTHS ENDED MARCH 31 | |||
2025 | 2024 | ||
(In thousands) | |||
Operating activities | |||
Net income (loss) | $ 1,805 | $ (1,162) | |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||
Depreciation and amortization | 1,225 | 1,188 | |
Stock compensation expense | 1,156 | 1,904 | |
Other | (935) | 1,255 | |
Net changes in operating assets and liabilities: | |||
Trade receivables | 34,899 | 46,236 | |
Inventory | (40,645) | (9,614) | |
Other assets | 7,178 | (3,074) | |
Accounts payable | 22,031 | (3,102) | |
Other liabilities | (20,094) | (13,930) | |
Net cash provided by (used for) operating activities | 6,620 | 19,701 | |
Investing activities | |||
Expenditures for property, plant and equipment | (516) | (942) | |
Acquisition of business, net of cash acquired | — | (7,412) | |
Issuance of secured loan | — | (600) | |
Repayment of secured loan | — | 2,205 | |
Net cash provided by (used for) investing activities | (516) | (6,749) | |
Financing activities | |||
Cash dividends paid | (1,585) | (1,531) | |
Purchase of treasury stock | (3,373) | (554) | |
Net cash provided by (used for) financing activities | (4,958) | (2,085) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 626 | (2) | |
Cash, cash equivalents and restricted cash | |||
Increase (decrease) for the period | 1,772 | 10,865 | |
Balance at the beginning of the period | 46,524 | 16,379 | |
Balance at the end of the period | $ 48,296 | $ 27,244 | |
Reconciliation of cash, cash equivalents and restricted cash | |||
Cash and cash equivalents | $ 48,296 | $ 26,279 | |
Restricted cash included in prepaid expenses and other current assets | — | 51 | |
Restricted cash included in other non-current assets | — | 914 | |
Total cash, cash equivalents and restricted cash | $ 48,296 | $ 27,244 | |
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures: Net (Cash) Debt
Net (cash) debt is a non-GAAP financial measure that management uses in evaluating financial position. Net (cash) debt is defined as long-term debt less cash and cash equivalents and highly liquid short-term investments. Management believes net (cash) debt is an important measure of the Company's financial position due to the amount of cash and cash equivalents on hand. The presentation of this measure is not intended to be considered in isolation from, as a substitute for, or as superior to, the financial information prepared and presented in accordance with
MARCH 31 | DECEMBER 31 | MARCH 31 | |||
(In millions) | |||||
Total debt | $ 50.0 | $ 50.0 | $ 50.0 | ||
Less: cash and cash equivalents | $ (48.3) | $ (45.6) | $ (26.3) | ||
Less: highly liquid short-term investments (1) | $ — | $ (5.0) | $ — | ||
Net (cash) debt | $ 1.7 | $ (0.6) | $ 23.7 | ||
1 | Investments with original maturities greater than 3 months but less than one year are included in prepaid expenses and |
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SOURCE Hamilton Beach Brands Holding Company
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