HAMILTON BEACH BRANDS HOLDING COMPANY ANNOUNCES SECOND QUARTER RESULTS
Rhea-AI Summary
Hamilton Beach Brands (NYSE:HBB) reported second quarter 2026 revenue of $142.6 million, up 11.6% from $127.8 million. Gross margin rose to 54.3%, driven largely by $36.5 million in non-recurring IEEPA tariff refunds and sell-through of inventory no longer subject to those tariffs; excluding these benefits, gross margin would have been 26.1%.
Operating profit increased to $43.2 million from $5.9 million, and diluted EPS rose to $2.49 from $0.33. For the first half, operating cash flow was $61.5 million, lifting cash to $101.5 million and resulting in net cash of $51.5 million versus net debt of $38.7 million a year earlier. The company reiterated its 2026 revenue outlook, raised its gross margin outlook versus 2025, and now expects 2026 operating profit to decline high-single digits rather than low-teens, excluding tariff refund benefits and including about $12 million of planned advertising and accelerated ERP depreciation.
Positive
- Revenue +11.6% to $142.6 million in Q2 2026
- Operating profit rose to $43.2 million from $5.9 million
- Diluted EPS increased to $2.49 from $0.33 year over year
- Operating cash flow of $61.5 million in first half 2026 vs use of $23.8 million
- Net cash position of $51.5 million at June 30, 2026 vs $38.7 million net debt
- Improved 2026 outlook: higher gross margin view and smaller expected operating profit decline
Negative
- Q2 underlying gross margin 26.1% excluding non-recurring IEEPA tariff benefits vs 27.5% reported in 2025
- SG&A expenses increased to $34.3 million from $29.2 million
- 2026 operating profit still expected to decline high-single digits year over year
- 2026 outlook includes about $6 million incremental advertising spend reducing near-term profit
- 2026 outlook includes about $6 million accelerated ERP depreciation expense
- 2026 revenue growth outlook partially offset by Bartesian license expiration at end of 2025
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter Revenue Increased
Reiterates 2026 Revenue Outlook, Raises Gross Margin and Operating Profit Outlook
Second Quarter 2026 Overview
- Revenue increased
11.6% to$142.6 million $127.8 million - Gross margin increased significantly to
54.3% compared to27.5% ; 2Q26 gross margin included one-time benefits primarily related to IEEPA tariff refunds - Operating profit increased significantly to
$43.2 million $5.9 million - Diluted earnings per share was
$2.49 $0.33
"We delivered a solid second quarter, with improving underlying performance and gross margins in line with our expectations," said R. Scott Tidey, President and Chief Executive Officer. "Net sales increased low double digits as we recovered volumes lost in the prior year, while our ongoing tariff mitigation actions — including our foreign trade zone, sourcing diversification, and pricing actions — supported healthy gross margins. Our reported results also reflect the benefit from IEEPA tariff refunds of which we plan to reinvest a portion into additional programs to drive increased awareness for our brands and demand for our products. We feel good about our momentum heading into the second half of the year and believe our business is well positioned to deliver continued gains and increased shareholder value over the long-term."
Results of the Second Quarter 2026 Compared to the Second Quarter 2025
Total revenue increased
Gross profit was
Selling, general and administrative expenses (SG&A) increased to
Operating profit was
Income tax expense was
Net income was
Cash Flow and Debt
For the six months ended June 30, 2026, net cash provided by operating activities was
For the three months ended June 30, 2026, the Company repurchased 97,869 shares of its Class A common stock at prevailing market prices for an aggregate purchase amount of
On June 30, 2026, net cash was
Outlook
Based on first half results, Hamilton Beach is reiterating its outlook for revenue growth to approach mid-single digit range in 2026 inclusive of a partial offset caused by the expiration of the Company's Bartesian licensing agreement at the end of 2025. Excluding the benefit from IEEPA tariff refunds, our income outlook has improved. Gross margins are now expected to be modestly better than 2025's level versus prior guidance of similar to slightly better. Operating profit is now expected to decline high-single digits on a percentage basis compared to the previous estimate of low-teens inclusive of an incremental
Conference Call
The Company will conduct an earnings conference call and webcast on Wednesday, August 5, 2026, at 4:30 p.m. Eastern time. The call may be accessed by dialing 833-461-5787 (toll free), International 585-542-9983. Conference ID: 561620015. 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® and Weston®, as well as premium brands Hamilton Beach Professional® and Lotus®. 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 and CloroxTM home appliances. The Company has multiyear agreements to design, sell, market, and distribute Numilk® plant-based milk makers and Sunkist® commercial juicers and sectionizers. Hamilton Beach Health, which owns HealthBeacon, is expanding the Company's presence in the home health and medical markets through connected medical devices. 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 household 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 price increases 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, 2025. 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||
THREE MONTHS ENDED JUNE 30 | SIX MONTHS ENDED JUNE 30 | ||||||
2026 | 2025 | 2026 | 2025 | ||||
(In thousands, except per | (In thousands, except per | ||||||
Revenue | $ 142,632 | $ 127,770 | $ 264,595 | $ 261,142 | |||
Cost of sales | 65,136 | 92,639 | 150,907 | 193,240 | |||
Gross profit | 77,496 | 35,131 | 113,688 | 67,902 | |||
Selling, general and administrative expenses | 34,290 | 29,183 | 65,514 | 59,641 | |||
Operating profit (loss) | 43,206 | 5,948 | 48,174 | 8,261 | |||
Interest (income) expense, net | (1,264) | 121 | (1,342) | 49 | |||
Other (income) expense, net | (160) | (182) | (66) | (331) | |||
Income (loss) before income taxes | 44,630 | 6,009 | 49,582 | 8,543 | |||
Income tax expense (benefit) | 10,922 | 1,556 | 12,335 | 2,285 | |||
Net income (loss) | $ 33,708 | $ 4,453 | $ 37,247 | $ 6,258 | |||
Basic earnings (loss) per share | $ 2.50 | $ 0.33 | $ 2.75 | $ 0.46 | |||
Diluted earnings (loss) per share | $ 2.49 | $ 0.33 | $ 2.75 | $ 0.46 | |||
Basic weighted average shares outstanding | 13,496 | 13,516 | 13,534 | 13,642 | |||
Diluted weighted average shares outstanding | 13,512 | 13,534 | 13,551 | 13,661 | |||
HAMILTON BEACH BRANDS HOLDING COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||
JUNE 30 | DECEMBER 31 | JUNE 30 | |||
(In thousands) | |||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ 101,469 | $ 47,313 | $ 11,338 | ||
Trade receivables, net | 99,097 | 110,535 | 74,093 | ||
Inventory | 115,125 | 133,833 | 160,357 | ||
Prepaid expenses and other current assets | 14,434 | 13,052 | 14,318 | ||
Total current assets | 330,125 | 304,733 | 260,106 | ||
Property, plant and equipment, net | 25,534 | 30,253 | 33,464 | ||
Right-of-use lease assets | 32,557 | 34,614 | 36,956 | ||
Goodwill | 7,099 | 7,099 | 7,099 | ||
Deferred income taxes | 3,520 | 3,607 | 7,513 | ||
Other non-current assets | 12,451 | 17,318 | 18,666 | ||
Total assets | $ 411,286 | $ 397,624 | $ 363,804 | ||
Liabilities and stockholders' equity | |||||
Current liabilities | |||||
Accounts payable | $ 69,674 | $ 86,376 | $ 76,275 | ||
Accrued compensation | 8,930 | 13,956 | 7,127 | ||
Accrued product returns | 7,907 | 7,875 | 7,072 | ||
Lease liabilities | 5,560 | 5,497 | 5,568 | ||
Other current liabilities | 13,282 | 9,529 | 9,450 | ||
Total current liabilities | 105,353 | 123,233 | 105,492 | ||
Revolving credit agreements | 50,000 | 50,000 | 50,000 | ||
Lease liabilities, non-current | 34,030 | 36,416 | 38,988 | ||
Other long-term liabilities | 5,169 | 5,130 | 5,349 | ||
Total liabilities | 194,552 | 214,779 | 199,829 | ||
Stockholders' equity | |||||
Preferred stock, par value | — | — | — | ||
Class A Common stock | 121 | 119 | 118 | ||
Class B Common stock | 36 | 36 | 36 | ||
Capital in excess of par value | 83,389 | 80,795 | 78,673 | ||
Treasury stock | (38,376) | (35,213) | (33,549) | ||
Retained earnings | 177,821 | 143,888 | 126,919 | ||
Accumulated other comprehensive loss | (6,257) | (6,780) | (8,222) | ||
Total stockholders' equity | 216,734 | 182,845 | 163,975 | ||
Total liabilities and stockholders' equity | $ 411,286 | $ 397,624 | $ 363,804 | ||
HAMILTON BEACH BRANDS HOLDING COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||
SIX MONTHS ENDED JUNE 30 | |||
2026 | 2025 | ||
(In thousands) | |||
Operating activities | |||
Net income (loss) | $ 37,247 | $ 6,258 | |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||
Depreciation and amortization | 5,406 | 2,518 | |
Stock compensation expense | 2,596 | 2,008 | |
Other | 395 | (1,294) | |
Net changes in operating assets and liabilities: | |||
Trade receivables | 11,835 | 44,391 | |
Inventory | 18,274 | (33,599) | |
Other assets | 6,500 | 10,856 | |
Accounts payable | (16,964) | (27,950) | |
Other liabilities | (3,746) | (26,961) | |
Net cash provided by (used for) operating activities | 61,543 | (23,773) | |
Investing activities | |||
Expenditures for property, plant and equipment | (895) | (1,466) | |
Net cash provided by (used for) investing activities | (895) | (1,466) | |
Financing activities | |||
Cash dividends paid | (3,314) | (3,202) | |
Purchase of treasury stock | (3,163) | (7,347) | |
Net cash provided by (used for) financing activities | (6,477) | (10,549) | |
Effect of exchange rate changes on cash and cash equivalents | (15) | 602 | |
Cash and cash equivalents | |||
Increase (decrease) for the period | 54,156 | (35,186) | |
Balance at the beginning of the period | 47,313 | 46,524 | |
Balance at the end of the period | $ 101,469 | $ 11,338 | |
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 total 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
JUNE 30 | DECEMBER 31 | JUNE 30 | |||
(In millions) | |||||
Total debt | $ 50.0 | $ 50.0 | $ 50.0 | ||
Less: cash and cash equivalents | $ (101.5) | $ (47.3) | $ (11.3) | ||
Net (cash) debt | $ (51.5) | $ 2.7 | $ 38.7 | ||
View original content to download multimedia:https://www.prnewswire.com/news-releases/hamilton-beach-brands-holding-company-announces-second-quarter-results-302843938.html
SOURCE Hamilton Beach Brands Holding Company