HAMILTON BEACH BRANDS HOLDING COMPANY ANNOUNCES THIRD QUARTER 2025 RESULTS

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Hamilton Beach Brands (NYSE: HBB) reported third quarter 2025 results on Nov 5, 2025: revenue $132.8M, down 15.2% year‑over‑year from $156.7M, and gross margin 21.1% versus 28.0% a year ago. The quarter included a one‑time $5.0M tariff cost that reduced margin by ~370 basis points after temporary tariff rates spiked to 125% on certain Chinese imports. Operating profit fell to $2.9M from $10.6M; net income was $1.7M, $0.12 diluted. Net debt increased to $32.8M. The company paused formal guidance due to tariff uncertainty and will host a conference call on Nov 5, 2025.

Positive

• SG&A decreased by $8.2M year‑over‑year
• Company resumed more normalized retailer ordering sequentially in 3Q25
• Returned capital: $0.6M share repurchase and $1.6M dividends in 3Q25

Negative

• Revenue declined 15.2% to $132.8M in 3Q25
• Gross margin down ~690 bps to 21.1% YoY; tariff cost lowered margin by 370 bps
• Operating profit fell to $2.9M from $10.6M in 3Q24
• Net cash used in operations $14.6M for nine months vs $35.2M provided prior year
• Net debt increased by $10.3M to $32.8M as of Sep 30, 2025

Insights

Equity Analyst

Revenue fell and margins compressed sharply due to temporary high tariffs; operating profit remained positive but weakened.

Hamilton Beach Brands saw third quarter revenue decline to $132.8 million, down 15.2%, with gross margin falling to 21.1% from 28.0%. The company attributes a $5.0 million one-time tariff hit that reduced margins by 370 basis points and reports operating profit of $2.9 million.

The business depends on retail ordering normalization, tariff levels, and pricing pass-through. Cash from operations turned negative year-to-date ($14.6 million used), and net debt rose to $32.8 million, creating near-term liquidity and working-capital sensitivity while the company implements sourcing diversification and pricing actions.

Watch near-term indicators: sequential sales patterns and retailer orders in the upcoming quarter, any reversal of the temporary tariff spike, and operating cash flow trends over the next fiscal quarter ending on Q4 2025. Expect the clearest evidence of recovery in order patterns and margins once tariff impacts cease and pricing fully takes effect within one to two quarters.

GLEN ALLEN, Va., Nov. 5, 2025 /PRNewswire/ -- Hamilton Beach Brands Holding Company (NYSE: HBB) (The Company) today announced results for the third quarter of 2025.

Third  Quarter 2025 Overview

• Revenue declined 15.2% to $132.8 million compared to $156.7 million
• Gross margin decreased to 21.1% compared to 28.0%; 3Q25 gross margin included a one-time 370 basis point impact mostly from the flow through of a temporary 125% tariff rate on Chinese imports
• Operating profit decreased to $2.9 million compared to $10.6 million
• Total debt was $50.0 million for both periods; Net debt was $32.8 million compared to $22.5 million

"We are pleased that our sales trend improved sequentially as retailer purchasing started to normalize during the third quarter following the significant disruption from new tariffs implemented in April," said R. Scott Tidey, President and Chief Executive Officer. "With trade relations between the U.S. and China improving and tariff rates on certain Chinese imports moderating significantly from the peaks reached in the second quarter, we now have greater clarity into our cost and pricing architecture which has led to the resumption of more normalized ordering patterns. Importantly, in the third quarter we fully absorbed the impact on gross margins from the peak tariff rate and moved forward with a more balanced inventory position. While uncertainty in the marketplace remains, our visibility is improving and we expect that the strength of our brand portfolio, recent sourcing diversification efforts, and pricing actions, will lead to further top-line and margin recovery in the fourth quarter."

Results of the Third Quarter 2025 Compared to the Third Quarter 2024
Total revenue decreased $23.9 million, or 15.2%, to $132.8 million compared to $156.7 million. The revenue decline was primarily driven by lower volumes in the Company's U.S. Consumer business, including a delay in orders from one large retailer for most of the third quarter as they assessed inventory and pricing in response to the tariffs implemented by the U.S. in April 2025. Partially offsetting this decline was revenue growth in the Commercial and Health businesses.

Gross profit was $28.0 million, or 21.1% of total revenue, compared to $43.9 million or 28.0% of total revenue. The decrease in gross profit margin is primarily due to the flow through of a one-time incremental tariff cost of $5.0 million, which negatively impacted margin by 370 basis points. Most of these costs were from a temporary spike in tariff rates on imports from China to 125%. Additionally, a delay between tariff related rising costs and the effective date of pricing adjustments temporarily reduced our margins during the third quarter.

Selling, general and administrative expenses (SG&A) decreased to $25.1 million compared to $33.3 million. The decrease was primarily driven by $6.8 million of lower personnel costs, including reduced stock-based compensation expense due to changes in stock price and benefits associated with the restructuring actions taken by management in the second quarter.

Operating profit was $2.9 million compared to $10.6 million.

Income before taxes was $2.0 million compared to $2.7 million. The prior year period included a one-time non-cash charge of $7.6 million related to the termination of the Company's pension plan.

Income tax expense was $0.4 million compared to $0.7 million in the prior year period.

Net income was $1.7 million, or $0.12 per diluted share, compared to $1.9 million, or $0.14 per diluted share.

Cash Flow and Debt
For the nine months ended September 30, 2025, net cash used for operating activities was $14.6 million, compared to $35.2 million cash provided for the nine months ended September 30, 2024. The decline was primarily driven by a $27.5 million reduction in accounts payable due to lower purchasing activity from decreased sales volume and inventory turnover, as well as shorter payment terms with new suppliers under the Company's China diversification initiatives.

For the three months ended September 30, 2025, the Company repurchased 39,333 shares of its Class A common stock at prevailing market prices for an aggregate purchase amount of $0.6 million and paid $1.6 million in dividends during the third quarter of 2025.

On September 30, 2025, net debt was $32.8 million compared to net debt of $22.5 million on September 30, 2024. Net debt is defined as total debt minus cash and cash equivalents and highly liquid short-term investments. 

Outlook
As a result of the increased uncertainty caused by higher tariffs recently imposed by the United States, particularly in China, the Company believes it is prudent to maintain its recently implemented practice of not providing specific guidance on its business outlook.

Conference Call
The Company will conduct an earnings conference call and webcast on Wednesday, November 5, 2025, at 4:30 p.m. Eastern time. The call may be accessed by dialing 888-350-3452 (toll free), International 646-960-0369. 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®, Weston®, and TrueAir®, 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, CloroxTM home appliances, and Brita HubTM countertop electric water filtration appliances. The Company has 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
	THREE MONTHS ENDED SEPTEMBER 30				NINE MONTHS ENDED SEPTEMBER 30
	2025		2024		2025		2024
	(In thousands, except per share data)				(In thousands, except per share data)
Revenue	$     132,779		$     156,667		$     393,921		$      441,184
Cost of sales	104,753		112,765		297,993		326,732
Gross profit	28,026		43,902		95,928		114,452
Selling, general and administrative expenses	25,075		33,251		84,560		94,595
Amortization of intangible assets	77		31		233		224
Operating profit (loss)	2,874		10,620		11,135		19,633
Interest (income) expense, net	224		59		273		330
Pension termination expense	—		7,595		—		7,595
Other (income) expense, net	625		298		294		1,354
Income (loss) before income taxes	2,025		2,668		10,568		10,354
Income tax expense (benefit)	372		732		2,657		3,594
Net income (loss)	$         1,653		$         1,936		$         7,911		$          6,760
Basic and diluted earnings (loss) per share	$           0.12		$           0.14		$           0.58		$            0.48
Basic weighted average shares outstanding	13,488		13,852		13,591		14,042
Diluted weighted average shares outstanding	13,508		13,863		13,610		14,056

 

HAMILTON BEACH BRANDS HOLDING COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited)
	SEPTEMBER 30 2025		DECEMBER 31 2024		SEPTEMBER 30 2024
	(In thousands)
Assets
Current assets
Cash and cash equivalents	$                 17,175		$                 45,644		$                 22,602
Trade receivables, net	83,805		117,068		99,049
Inventory	174,801		124,904		164,802
Prepaid expenses and other current assets	15,466		16,103		18,912
Total current assets	291,247		303,719		305,365
Property, plant and equipment, net	33,172		34,401		35,238
Right-of-use lease assets	35,693		36,049		36,627
Goodwill	7,099		7,099		7,099
Other intangible assets, net	2,160		2,101		2,179
Deferred income taxes	7,556		6,693		2,187
Deferred costs	2,665		16,156		15,434
Other non-current assets	12,790		8,849		4,540
Total assets	$               392,382		$               415,067		$               408,669
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$               106,458		$               104,161		$               128,489
Revolving credit agreements	—		—		50,000
Accrued compensation	8,800		18,792		12,622
Accrued product returns	6,452		7,876		6,616
Lease liabilities	5,497		5,193		5,584
Other current liabilities	8,409		18,098		10,130
Total current liabilities	135,616		154,120		213,441
Revolving credit agreements	50,000		50,000		—
Lease liabilities, non-current	37,628		39,008		39,528
Other long-term liabilities	5,090		6,036		5,749
Total liabilities	228,334		249,164		258,718
Stockholders' equity
Preferred stock, par value $0.01 per share	—		—		—
Class A Common stock	118		115		115
Class B Common stock	36		36		36
Capital in excess of par value	79,242		76,668		77,779
Treasury stock	(34,124)		(26,202)		(21,878)
Retained earnings	126,953		123,863		101,430
Accumulated other comprehensive loss	(8,177)		(8,577)		(7,531)
Total stockholders' equity	164,048		165,903		149,951
Total liabilities and stockholders' equity	$               392,382		$               415,067		$               408,669

 

HAMILTON BEACH BRANDS HOLDING COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	NINE MONTHS ENDED SEPTEMBER 30
	2025		2024
	(In thousands)
Operating activities
Net income (loss)	$                           7,911		$                           6,760
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	3,772		3,744
Stock compensation expense	2,577		7,381
Pension termination expense	—		7,595
Other	(1,570)		3,206
Net changes in operating assets and liabilities:
Trade receivables	35,351		34,599
Inventory	(47,634)		(43,687)
Other assets	10,856		(3,321)
Accounts payable	1,882		29,425
Other liabilities	(27,786)		(10,525)
Net cash provided by (used for) operating activities	(14,641)		35,177
Investing activities
Expenditures for property, plant and equipment	(2,228)		(2,347)
Acquisition of business, net of cash acquired	—		(7,412)
Issuance of secured loan	—		(600)
Repayment of secured loan	—		2,205
Purchase of U.S. Treasury bill	—		(4,884)
Other	(278)		—
Net cash provided by (used for) investing activities	(2,506)		(13,038)
Financing activities
Cash dividends paid	(4,821)		(4,728)
Purchase of treasury stock	(7,922)		(9,865)
Net cash provided by (used for) financing activities	(12,743)		(14,593)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	541		(390)
Cash, cash equivalents and restricted cash
Increase (decrease) for the period	(29,349)		7,156
Balance at the beginning of the period	46,524		16,379
Balance at the end of the period	$                         17,175		$                         23,535
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$                         17,175		$                         22,602
Restricted cash included in prepaid expenses and other current assets	—		63
Restricted cash included in other non-current assets	—		870
Total cash, cash equivalents and restricted cash	$                         17,175		$                         23,535

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 U.S. GAAP. The presentation of this measure may be different from non-GAAP financial measures used by other companies. A reconciliation of this measure to its most directly comparable GAAP measure is provided in the table below:

	SEPTEMBER 30 2025		DECEMBER 31 2024		SEPTEMBER 30 2024
	(In millions)
Total debt	$                   50.0		$                   50.0		$                   50.0
Less: cash and cash equivalents	$                 (17.2)		$                 (45.6)		$                 (22.6)
Less: highly liquid short-term investments (1)	$                      —		$                   (5.0)		$                   (4.9)
Net (cash) debt	$                   32.8		$                   (0.6)		$                   22.5

(1) Investments with original maturities greater than 3 months but less than one year are included in prepaid expenses and other current assets on the balance sheet. If the original maturity is 3 months or less it is included within cash and cash equivalents.

 

 

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SOURCE Hamilton Beach Brands Holding Company

FAQ

What were Hamilton Beach Brands (HBB) third quarter 2025 revenue and EPS on Nov 5, 2025?

HBB reported $132.8M revenue for 3Q25 and $0.12 diluted EPS.

How did tariffs affect Hamilton Beach Brands' 3Q25 gross margin (HBB)?

A one‑time $5.0M incremental tariff cost reduced gross margin by ~370 basis points in 3Q25.

Why did Hamilton Beach Brands' (HBB) operating profit drop in 3Q25?

Operating profit fell to $2.9M from $10.6M due to lower revenue and the tariff‑related margin impact.

What was Hamilton Beach Brands' (HBB) net debt and cash flow position on Sep 30, 2025?

Net debt was $32.8M on Sep 30, 2025; year‑to‑date operating cash used was $14.6M.

Will Hamilton Beach Brands (HBB) provide forward guidance after the 3Q25 release?

The company stated it is maintaining its recent practice of not providing specific guidance due to tariff uncertainty.