HBB

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:30 p.m. ET President and CEO - Scott Tidey Senior Vice President, Chief Financial Officer, and Treasurer - Sally Cunningham Operator: Thank you. Thank you for standing by. At this time, I would like to welcome everyone to today's Hamilton Beach Brands Second Quarter 2026 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. Thank you. So without further ado, I would like to turn the call over to Avanti Chiruvelith, Vice President with ICR. Avanti, you have the floor. Avanti Chiruvelith: Thanks, Jillian. Good afternoon, everyone, and welcome to the second quarter of 2026 Earnings Conference Call and Webcast for Hamilton Beach Grants. Earlier today, after the stock market closed, we issued our second quarter 2026 earnings release, which is available on our corporate website. Our speakers today are Scott Tidy, President and CEO, and Sally Cunningham, Senior Vice President, Chief Financial Officer, and Treasurer. Our presentation today includes forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in either our prepared remarks or during the Q&A. additional information regarding these risks and uncertainties is available in our 10Q, our earnings release, and our annual report on Form 10K for the year ended December 31st, 2025. The company disclaims any obligation to update these forward looking statements, which may not be updated until our quarterly conference call, our next conference call, if at all. The company also discusses certain non-GAAP measures. Reconciliation for Regulation G purposes can be found in our earnings release. And now I'll turn the call over to Scott. Scott?. R. Tidey: Thank you, Avanti, and good afternoon, everyone. Thank you for joining us today. We were pleased to report a solid second quarter, highlighted by meaningful improvement in our underlying operating performance, even before considering a significant one-time tariff refund we received during the quarter. Net sales increased low double digits driven primarily by the recovery of U.S. consumer volumes that we lost in the second quarter of last year. As you will recall, several retailers paused purchasing to reevaluate their inventory levels in response to the tariff environment at that time. We also experienced a nice improvement in gross margin. In Q2, we again benefited from our foreign trade zone, selling inventory that wasn't subject to additional tariff charges, in addition to other tariff mitigation actions, including diversifying our sourcing strategy and selectively raising prices. margin expansion more than offset increased investments in marketing and some non-operational expenses that Sally will detail shortly to deliver higher operating profit than a year ago. As you saw from our earnings release, our reported results benefited from refunds following the U.S. Supreme Court's February ruling on IEPA tariffs. very pleased to have received these funds, especially after the amount of work and cost we incurred after they were implemented in April of 2025. Our current plan is to reinvest a portion of these proceeds back into the business to help drive long-term growth. Turning now to our five strategic growth pillars, I want to update you on the progress we made in each of them during the second quarter. Starting with driving growth of our core business. Our new product pipeline continues to progress well. We remain on track to launch two new single serve coffee platforms in the second half of the year, which will bring much needed innovation to that category. We're also pleased with the initial results from our recent placements at a leading mass market retailer, and we've added shelf space at two of the top wholesale membership clubs, both of which we mentioned last quarter. We're also ramping up with our new advertising agency, which will help oversee and drive our digital marketing strategy, providing significant awareness of the Hamilton Beach brand starting in the second half of the year. Moving to gaining a larger share in the premium market, we launched Lotus Professional to the broader market during the second quarter, building on strong results we saw from last year's initial rollout. We remain on track to launch Lotus Signature in the fourth quarter of this year and early next year, and we continue to believe the premium category represents a significant long-term growth opportunity given our still small share of that market. At the same time, our CHI business is also building momentum. A leading mass market retailer continues to support three CHI steam irons and three CHI garment steamers in stores and online. And we've expanded the online assortment with the new CHI collapsible steamer and CHI deluxe retractable cord steamer. Another national retailer added the CHI Travel Steamer in the second quarter, while a leading warehouse club added the CHI Lava 360 Precision Iron online earlier this year. Also, based on strong results from a recent test at a top department store, we're expanding the CHI 360 precision iron to all of their doors in the third quarter. Turning to leading in the global commercial market, we are on track to add our Clips Blender at a leading national coffee chain, while at the same time we picked up a spindle mixer placement at a leading US fast food company's Central America locations. And as we anniversary the launch of our Sunkist commercial juicers and sectionizers, that business continues to exceed our expectations. In new product news, we are launching our high-performance Titan food processor in the fourth quarter, targeting the roughly 90 million global food processor market. We believe our features and pricing will be highly competitive, and interest from several regional food chains soon testing the product has been higher than any new product launch we've seen. in years. In hospitality, we've recently added our irons and hair dryers to a national hotel chain across approximately 770 US locations and now we're pursuing the same program with six to seven additional flagship chains. Moving to accelerating our digital transformation. We are advancing three coordinated initiatives to make sure Hamilton Beach stays discoverable and preferred as consumers' shopping shifts to AI-driven search. First, we're scaling AI optimized content across our catalog with a 500 SKU content build underway to structure our products for discovery on leading AI platforms. Second, we're piloting paid AI advertising as a new growth channel, running a controlled three-month test on ChatGPT's newly launched ad platform to inform a scale decision ahead of the fourth quarter. And third, we're building the measurement infrastructure to give us product level visibility into how AI platforms recommend us versus our competitors so we can turn this investment into a measurable driver of revenue. Finally, on accelerating growth of Hamilton Beach Health. The second quarter marked the fourth consecutive quarter of profitable growth for this business, and we are on track to increase sales by 50% this year. We've now managed more than 1.2 million injections and that number is projected to keep growing as we continue to make excellent progress expanding our reach by adding more specialty pharmacy and pharmaceutical company partnerships. And as announced last quarter, we are broadening our connected medical device platform beyond our core injectable medication management with the third quarter pilot launch of our pill management platform, which is designed to improve medication adherence and provide valuable patient feedback. We are initially targeting dermatology and rheumatology treatment areas with plans to expand to other therapeutic areas as we validate the platform's effectiveness. This expansion represents a significant opportunity to address additional patient pain points and grow our distribution network with large specialty pharmacies. In closing, we are pleased with the underlying momentum in the business. With the investment we are making in promotions and marketing, we believe we are still well positioned to continue driving top-line growth in the back half of the year and beyond. I want to thank our teams for their continued hard work and execution this quarter. Their efforts to navigate a still evolving tariff environment while improving our margins and profitability reflect the resilience and commitment that defines our organization. Sally Cunningham: With that, I'll turn it over to Sally. Good afternoon, everyone. Echoing Scott's comments, we are pleased with our start to the year, especially our gross margin and operating profit performances. For the second quarter, revenue was $142.6 million, up 11.6% compared to $127.8 million a year ago. The increase was driven primarily by the recovery of our U.S. consumer business as retailers paused buying in the year-ago period as they assessed inventory levels and price increases following the implementation of higher tariffs by the U.S. in April of last year. Turning to gross profit and margin, gross profit was $77.5 million in the second quarter, compared to $35.1 million in the year-ago period. and gross profit margin was 54.3% compared to 27.5% in last year's second quarter. Significant improvement in gross profit margin was driven by the $36.5 million IEPA Tariff Refund. While approximately 260 basis points of the increase year over year was from sell-through of inventory that was priced in anticipation of IEFA tariffs that were eliminated following the Supreme Court's ruling in February. Excluding these benefits, gross margins in Q2 this year were 26.1% in line with our expectations. Selling, general, and administrative expenses increased to $34.3 million compared to $29.2 million in the second quarter of 2025. Increase was primarily driven by higher performance-based incentive expense as last year was lower than normal due to our projected performance at that time. along with $1.4 million in accelerated depreciation of our legacy ERP system, which we are in the process of replacing. Our operating profit increased $37.3 million to $43.2 million compared to $5.9 million in the second quarter of 2025, driven by the tariff refund. Income tax expense was $10.9 million compared to $1.6 million in the second quarter of 2025. And our tax rate was 24.5% this year compared to 25.9% last year. Net income in the second quarter was $33.7 million or $2.49 per diluted share compared to net income of $4.5 million or $0.33 per diluted share a year ago. Now, turning to our balance sheet and cash flows. For the six months ended June 30, 2026, net cash provided by operating activities was $61.5 million compared to net cash used for operating activities of $23.8 million for the six months ended June 30, 2025. The increase was primarily driven by IEPA tariff refunds and lower working capital due to lower inventory levels. Inventory on June 30, 2026 was $115.1 million, down 28.2% from $160.4 million on June 30, During the second quarter of 2026, we allocated our cash flow to repurchase approximately 98,000 shares totaling $2 million. and paid $1.7 million in dividends. At the end of the second quarter, our net cash position was $51.5 million, compared to a net debt of $38.7 million on June 30, 2025. Turning now to our outlook for the remainder of 2026. As a reminder, our initial outlook for this year didn't include any potential tariff refunds. Therefore, to provide a clear view of our projected operating performance, we are excluding the refund from our forward-looking comments. Year to date, the business on an operating basis has performed in line with our expectations, and we continue to expect 2026 revenue growth to approach the mid-single digit range. With respect to gross margins, as we said in our Q1 call, we are reinvesting the upside from the sell-through of inventory in our free trade zone that was priced in anticipation of IEBA tariffs into additional promotional programs to drive demand. While in the second quarter, gross margins also benefited from the sale of free inventory. This upside is largely offset in the second half of the year by higher commodity costs and higher freight rates. Based on our results thus far, and based on the current tariff rates, we are now expecting our 2026 gross margins to improve modestly over 2025's level. from our prior outlook for gross margins to be similar to slightly better. Operating profit is now expected to be down high single digits, inclusive of incremental $6 million in planned advertising spend in 2026 to support our growth initiative, and approximately $6 million in accelerated depreciation associated with our legacy ERP system compared to our prior guidance for a low teens percentage decline. Cash flow from operating activities, thus cash used for investing activities for 2026, is still expected to be in the range of $35 to $45 million, reflecting an outsized increase due to the normalization of tariff-related impacts on networking capital. With respect to the refund, we plan to reinvest a portion of the proceeds over the second half of 2026 into an additional brand building and marketing programs aimed at driving awareness and demand next year and beyond. Also, regarding next year, we believe we have opportunities to further improve our gross margins, excluding any impact from future changes in tariff rates, thanks to the action we've taken around pricing and sourcing over the last 12 months combined with the continued growth of our higher margin commercial and health businesses. To close, we are pleased with our performance year to date, and we continue to be optimistic about our prospects in the second half. diversified business model, strong brand portfolio, and the work we've done strengthening our foundation positions the company to capitalize on improving market conditions this year and create a platform to deliver sustainable growth and shareholder value over the long term. This concludes our prepared remarks. We will now turn the line back to the operator for Q&A. Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Adam Bradley with AJB Capital. Adam, your line is open. Please go ahead. Adam Bradley: Hi, Scott and Sally. Lots of cash in the bank. generated this quarter, but what appears to be a significant slowdown in share repurchases. even less so than share buybacks have added cash. Can you tell us a little bit about that?. Sally Cunningham: Hey Adam, it's Sally. Good to hear from you again. Hey, you know our capital allocation philosophy hasn't really changed. Our share repurchases continue to be based on a number of factors including our outlook, what we plan to do with the cash, and other strategic as well as honestly the float that's out there and it's available for repurchase. So I think we haven't made any deviations from our philosophy and we're continuing to buy shares accordingly. Adam Bradley: Okay. And just kind of bigger picture than over the last couple of years, there's been this allocation of a little less than half of net income to dividends and repurchases, you know, net of stock-based comp. And the rest has been to cash. So help investors, help me help investors. How does leadership, how does the board think about capital allocation and its impact on investor value, investor returns? given that, yes, given kind of what we've seen over the last few years. Sally Cunningham: I mean, I'll start and if Scott wants to add to something, that would be great. But you know, the philosophy hasn't really changed. I mean, the board of directors, you know, and management are continuing to be very invested in long-term shareholder value. whether that's returning that value through dividends and share repurchases, or whether that's future investments into the company to help drive growth and higher EPS. So we take it very seriously and we're looking at it on a very frequent basis, but that hasn't really changed. Scott, I don't know if you wanna add anything to that. I think Adam, again, we look at,. R. Tidey: we think we've got great momentum across the strategic initiatives and we think there's there's areas to be investing in those to drive additional growth and so we're going to continue to look at those opportunities and invest appropriately. Operator: Okay, thanks. Thank you. There are no further questions in the queue. We have reached the end of the Q&A session. That concludes our call for today. Thank you all for joining. You may now disconnect. Before you buy stock in Hamilton Beach Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hamilton Beach Brands wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Hamilton Beach (HBB) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Hamilton Beach Brands Holding Company? Here are five stocks we like better. Second-quarter results improved sharply: Revenue rose 11.6% to $142.6 million, while net income increased to $33.7 million from $4.5 million a year earlier. Results were significantly boosted by a $36.5 million refund of IEEPA tariffs, although management said underlying operations also improved. Growth initiatives are expanding across multiple businesses: Hamilton Beach plans new single-serve coffee platforms, premium products and commercial appliances, while Hamilton Beach Health reported its fourth consecutive quarter of profitable growth and is targeting 50% sales growth this year. Management reaffirmed its outlook: 2026 revenue is expected to grow at a mid-single-digit rate, excluding tariff refunds, while the projected decline in operating profit improved to a high-single-digit percentage. The company ended June with $51.5 million in net cash and sharply lower inventory. Hamilton Beach Brands (NYSE:HBB) reported higher second-quarter revenue and operating profit, with results aided by a $36.5 million refund of tariffs imposed under the International Emergency Economic Powers Act, while management said underlying operating performance also improved. Revenue for the second quarter of 2026 rose 11.6% to $142.6 million from $127.8 million a year earlier. President and CEO Scott Tidey said the increase was primarily driven by a recovery in U.S. consumer volumes after several retailers had paused purchases in the second quarter of 2025 while reassessing inventory levels amid the tariff environment. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Net income totaled $33.7 million, or $2.49 per diluted share, compared with $4.5 million, or $0.33 per diluted share, in the prior-year quarter. Operating profit rose to $43.2 million from $5.9 million. Senior Vice President, Chief Financial Officer and Treasurer Sally Cunningham said gross profit increased to $77.5 million from $35.1 million, and gross margin expanded to 54.3% from 27.5%. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The reported improvement was driven principally by the $36.5 million IEEPA tariff refund received during the quarter. Cunningham said approximately 260 basis points of the year-over-year margin increase also reflected sales of inventory priced in anticipation of IEEPA tariffs that were later eliminated following the Supreme Court’s February ruling. Excluding those benefits, second-quarter gross margin was 26.1%, which Cunningham said was in line with the company’s expectations. Tidey said Hamilton Beach also benefited from inventory in its foreign trade zone that was not subject to additional tariff charges, alongside sourcing diversification and selective price increases. → No Hangover: Revisiting Microsoft One Week After Earnings Selling, general and administrative expense increased to $34.3 million from $29.2 million. The increase included higher performance-based incentive expense and $1.4 million in accelerated depreciation related to the replacement of the company’s legacy enterprise resource planning system. Tidey said the company remains on track to introduce two new single-serve coffee platforms in the second half of 2026. It has also gained shelf space at two wholesale membership clubs and is working with a new advertising agency to increase digital marketing activity beginning in the second half. In premium products, Hamilton Beach launched Lotus Professional more broadly during the quarter and plans to launch Lotus Signature in the fourth quarter and early next year. The company also expanded distribution and online assortment for its CHI-branded irons and garment steamers. Its commercial business is preparing to place the Eclipse Blender with a national coffee chain and has secured a spindle mixer placement at a U.S. fast-food company’s Central America locations. Tidey said Sunkist commercial juicers and sectionizers continue to exceed expectations. The company plans to introduce a Titan food processor in the fourth quarter, targeting what it described as a roughly $90 million global food processor market. Hamilton Beach Health recorded its fourth consecutive quarter of profitable growth, according to Tidey, and management expects sales in that business to increase 50% this year. The platform has managed more than 1.2 million injections, and the company plans a third-quarter pilot of a pill-management platform initially aimed at dermatology and rheumatology treatments. Management reaffirmed its expectation that 2026 revenue growth will approach the mid-single-digit range, excluding tariff refunds from forward-looking commentary. The company now expects full-year gross margin to improve modestly from 2025, compared with its prior outlook for margins to be similar to slightly better. While tariff-free inventory supported second-quarter margins, Cunningham said the benefit would be largely offset in the second half by higher commodity costs and freight rates. Hamilton Beach now expects operating profit to decline by a high-single-digit percentage in 2026, an improvement from its previous outlook for a low-teens percentage decline. The forecast includes an incremental $6 million in advertising spending and about $6 million of accelerated depreciation associated with its legacy ERP system. Cash flow from operating activities less cash used for investing activities is still expected to range from $35 million to $45 million for the year. For the first six months, operating cash flow was $61.5 million, compared with cash used in operations of $23.8 million a year earlier. Inventory declined 28.2% year over year to $115.1 million as of June 30, while the company ended the quarter with net cash of $51.5 million, compared with net debt of $38.7 million a year earlier. During the quarter, the company repurchased about 98,000 shares for $2 million and paid $1.7 million in dividends. In response to an analyst question, Cunningham said the company’s capital-allocation philosophy had not changed and that repurchases remain dependent on its outlook, cash plans, strategic initiatives and available public float. Hamilton Beach Brands Holding Company is a designer, marketer and distributor of branded small kitchen and household appliances. The company's product portfolio spans a range of countertop and electric appliances, including blenders, mixers, toasters, coffeemakers, slow cookers, air fryers, and specialty beverage machines. Through the Hamilton Beach and Proctor-Silex brands, the company serves both everyday consumers and commercial foodservice operators. Established in 1910, Hamilton Beach has introduced a number of innovations in small-appliance technology, from early electric drink mixers to modern immersion blenders and multi-function cookers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hamilton Beach Brands Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Shares of Hamilton Beach Brands Holding Company HBB have increased 13.9% since reporting second-quarter 2026 results, outperforming the S&P 500 index’s 0.4% decline. Over the past month, Hamilton Beach shares have rallied 30.9% compared with the S&P 500 index’s 2.8% advance. Second-quarter revenues increased 11.6% to $142.6 million from $127.8 million a year earlier, reflecting a recovery in U.S. consumer volumes. Earnings per share rose to $2.49 from 33 cents in the prior-year quarter, while net income increased 657% to $33.7 million from $4.5 million in the prior-year quarter. Operating profit climbed 626.4% to $43.2 million from $5.9 million in the year-ago quarter. The sharp profit increases, however, were heavily influenced by non-recurring tariff-related benefits. Hamilton Beach Brands Holding Company price-consensus-eps-surprise-chart | Hamilton Beach Brands Holding Company Quote Consumer-products revenues rose 11.5% to $122.2 million from $109.6 million in the second quarter of 2025, whereas commercial-products revenues increased 11.3% to $16.3 million from $14.6 million in the prior-year quarter. Licensing revenues declined 2.5% to $2.2 million, whereas leasing revenues advanced 51.3% to $2 million. By reportable segment, Home and Commercial Products revenues increased 11.2% to $140.2 million and segment profit grew to $43.1 million from $6.8 million in the second quarter of 2025. Health revenues climbed 44.9% to $2.5 million, and the segment recorded a $98,000 profit against an $864,000 loss in the second quarter of 2025. For the first six months, the operating cash inflow was $61.5 million against a $23.8-million outflow a year earlier. Inventory declined 28.2% to $115.1 million from $160.4 million in the prior-year quarter. Hamilton Beach ended June with net cash of $51.5 million versus net debt of $38.7 million a year earlier. During the quarter, it repurchased 97,869 shares for $2 million and paid out $1.7 million in dividends. Chief executive officer R. Scott Tidey described the quarter as solid, citing improved underlying performance and recovered consumer demand after retailers paused purchases in the prior-year quarter amid tariff and pricing uncertainty. He said that foreign-trade-zone use, sourcing diversification and selective pricing supported margins, while the company plans to reinvest part of the tariff refunds in brand-awareness and demand-building programs. Management also highlighted progress across its growth initiatives. Hamilton Beach plans two single-serve coffee platforms in the second half and a Lotus Signature rollout beginning in the fourth quarter. Commercial initiatives include the planned Titan food processor launch, new hospitality placements across about 770 U.S. hotel locations and continued strength in Sunkist juicers and sectionizers. The Health business delivered its fourth consecutive quarter of profitable growth, has managed more than 1.2 million injections and remains on track for 50% sales growth in 2026. The company is also building AI-optimized content across 500 stock-keeping units and testing paid AI advertising to improve product discovery as consumers increasingly use AI-driven search platforms. Gross profit rose 120.6% to $77.5 million in the second quarter of 2026, lifting the gross margin to 54.3% from 27.5%. The results included $36.5 million of refunds following the U.S. Supreme Court’s February 2026 ruling invalidating tariffs imposed under the International Emergency Economic Powers Act, plus benefits from selling inventory no longer subject to those tariffs. Excluding both items, the gross margin would have been 26.1%. Management quantified roughly 260 basis points of year-over-year improvement from the inventory sell-through alone. The revenue increase reflected a $9.3-million benefit from unit volume and mix, $4 million from average pricing, and $1.5 million from currency. SG&A expenses increased 17.5% to $34.3 million due to higher performance-based incentive costs and $1.4 million of accelerated depreciation for the legacy ERP system. The second-half margins are expected to face higher commodity and freight costs. Hamilton Beach reiterated that 2026 revenue growth should approach the mid-single-digit range, including a partial drag from the expiration of its Bartesian licensing agreement at the end of 2025. Excluding tariff refunds, management expects the gross margin to improve modestly from 2025 versus its earlier view of similar to slightly better performance. Operating profit is projected to decline in the high-single-digit percentage, improved from the previous low-teens decline forecast. That projection includes $6 million of incremental advertising and about $6 million of accelerated legacy-ERP depreciation. The company maintained its expectation for the operating cash flow less investing cash use of $35-$45 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hamilton Beach Brands Holding Company (HBB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net sales growth was primarily driven by a volume recovery in the U.S. consumer segment as retailers resumed purchasing following an inventory pause during the 2025 tariff implementation. Gross margin expansion resulted from strategic use of a foreign trade zone to sell inventory not subject to new tariffs, alongside sourcing diversification and selective price increases. The Hamilton Beach Health segment achieved its fourth consecutive quarter of profitable growth, with management projecting a 50% sales increase for the full year driven by specialty pharmacy partnerships. Management is pivoting the digital strategy toward AI-driven search, initiating a 500 SKU content restructuring to ensure product discoverability on emerging AI platforms. The premium market strategy is gaining momentum through the Lotus Professional rollout and expanded retail placements for the CHI brand in both physical stores and warehouse clubs. Commercial market growth is being fueled by new placements at national coffee and fast-food chains, alongside the successful anniversary of the Sunkist juicer line. Management plans to reinvest a portion of the IEPA tariff refund into brand-building and marketing programs to drive awareness and demand next year and beyond. Full-year 2026 revenue is expected to approach the mid-single-digit range, excluding the impact of one-time tariff refunds. Operating profit guidance was revised to a high-single-digit decline, an improvement from the prior low-teens decline forecast, despite $12 million in planned spending for advertising and ERP system depreciation. The company is piloting paid AI advertising on ChatGPT's new platform to evaluate its viability as a new growth channel ahead of the fourth quarter. Gross margins for 2026 are now expected to improve modestly over 2025 levels, as upside from tariff-free inventory is partially offset by rising commodity and freight costs. A $36.5 million IEPA tariff refund significantly inflated reported operating profit and cash flow following a favorable U.S. Supreme Court ruling. The company is incurring $6 million in accelerated depreciation during 2026 related to the replacement of its legacy ERP system. Inventory levels decreased 28.2% year-over-year to $115.1 million, reflecting a normalization of working capital following previous tariff-related disruptions. Management flagged rising commodity costs and freight rates as specific headwinds that will largely offset margin gains in the second half of the year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated their capital allocation philosophy remains unchanged, with repurchases dictated by market outlook, strategic cash needs, and available float. The board continues to balance returning value via dividends and buybacks against reinvesting in the business to drive long-term earnings per share growth. Leadership emphasized that current momentum across strategic initiatives warrants continued internal investment to capture growth opportunities. The company maintains a net cash position of $51.5 million, providing flexibility for both shareholder returns and operational scaling.

Second Quarter Revenue Increased 11.6% to $142.6 MillionReiterates 2026 Revenue Outlook, Raises Gross Margin and Operating Profit Outlook GLEN ALLEN, Va., Aug. 5, 2026 /PRNewswire/ -- Hamilton Beach Brands Holding Company (NYSE: HBB) (The Company) today announced results for the second quarter of 2026. Second Quarter 2026 Overview Revenue increased 11.6% to $142.6 million compared to $127.8 million Gross margin increased significantly to 54.3% compared to 27.5%; 2Q26 gross margin included one-time benefits primarily related to IEEPA tariff refunds Operating profit increased significantly to $43.2 million compared to $5.9 million Diluted earnings per share was $2.49 compared to $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 $14.9 million, or 11.6%, to $142.6 million. The revenue increase was primarily driven by higher volumes in the Company's U.S. Consumer business reflecting recovery from the second quarter of 2025 when retailers paused buying to assess inventory levels and price increases flowing from the tariffs implemented by the United States in April 2025. Gross profit was $77.5 million, or 54.3% of total revenue, compared to $35.1 million or 27.5% of total revenue. The margin improvement included one-time benefits related to February 2026 United States Supreme Court ruling on IEEPA tariffs. These benefits consist of refunds received of $36.5 million for tariffs paid over the past year, as well as continued sell-through of inventory no longer subject to those tariffs. These benefits are non-recurring and will not persist beyond the sell-through of the affected inventory. Excluding these benefits, gross profit margin would have been 26.1%. Selling, general and administrative expenses (SG&A) increased to $34.3 million compared to $29.2 million. The increase was primarily driven by higher incentive related personnel costs, as prior year reflected lower expected performance. The current year also includes $1.4 million in accelerated depreciation of the Company's legacy enterprise resource planning (ERP) system. Operating profit was $43.2 million compared to $5.9 million. Income tax expense was $10.9 million compared to $1.6 million in the prior year period. Net income was $33.7 million, or $2.49 per diluted share, compared to $4.5 million, or $0.33 per diluted share. Cash Flow and DebtFor the six months ended June 30, 2026, net cash provided by operating activities was $61.5 million, compared to $23.8 million used in operating activities for the same period in 2025. The increase was primarily driven by the aforementioned IEEPA tariff refunds and lower working capital mainly due to reduced inventory levels as the prior year included accelerated purchases ahead of tariff uncertainty and lower sell through. The 2025 period also included higher incentive and tax payments related to the prior year. 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 $2.0 million and paid $1.7 million in dividends. On June 30, 2026, net cash was $51.5 million compared to net debt of $38.7 million on June 30, 2025. Net (cash) debt is defined as total debt minus cash and cash equivalents and highly liquid short-term investments. OutlookBased 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 $6 million in planned advertising spend in 2026 to support the Company's strategic growth initiatives and approximately $6 million in accelerated depreciation associated with the Company's legacy ERP system. The Company still expects cash flow from operating activities less cash used for investing activities for 2026 to be in the range of $35 million to $45 million. Conference CallThe 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 CompanyHamilton 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 StatementsThe 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. 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 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: View original content to download multimedia:https://www.prnewswire.com/news-releases/hamilton-beach-brands-holding-company-announces-second-quarter-results-302843938.html

Shares of Hamilton Beach Brands Holding Company HBB have declined 7.4% since reporting first-quarter 2026 results, underperforming the S&P 500 index’s 2.1% return. Over the past month, the stock has fallen 7.9% against the S&P 500’s 8.6% growth. Hamilton Beach reported first-quarter 2026 revenues of $122 million, down 8.6% from $133.4 million in the year-ago quarter, reflecting lower volumes in its U.S. Consumer business amid softer consumer sentiment and macroeconomic uncertainty. However, profitability improved sharply as the gross margin expanded 510 basis points to 29.7% from 24.6%. Operating profit more than doubled to $5 million from $2.3 million a year earlier. Net income increased to $3.5 million from $1.8 million in the prior-year quarter, while diluted earnings per share rose to 26 cents from 13 cents. Hamilton Beach Brands Holding Company price-consensus-eps-surprise-chart | Hamilton Beach Brands Holding Company Quote The company’s earnings improvement was driven largely by pricing actions, favorable customer mix and tariff-related benefits. Gross profit increased 10.4% year over year to $36.2 million despite the decline in revenues. Management said the company benefited from the implementation of a foreign trade zone at its distribution center, which allowed it to capitalize on a February 2026 Supreme Court ruling eliminating certain IEEPA tariffs. According to management, about 190 basis points of the gross margin expansion came from selling inventory that had been priced to account for tariffs that were ultimately removed. Another 320 basis points of improvement stemmed from pricing actions and higher penetration of the company’s commercial and healthcare businesses. Management noted that some of these benefits are temporary and expected to normalize later in the year. Selling, general and administrative expenses increased modestly to $31.2 million from $30.5 million due to $1.4 million in accelerated depreciation tied to the replacement of the company’s legacy ERP system. Restructuring actions taken last year partially offset the increase. Management acknowledged that consumer demand weakened during March, particularly in lower-priced product categories within the U.S. Consumer segment. Chief executive officer R. Scott Tidey said elevated fuel costs and cautious discretionary spending pressured shoppers in the company’s core price segments. Despite those pressures, the company highlighted strong momentum in several growth initiatives. Hamilton Beach’s Health business posted another quarter of robust sales growth and marked its third consecutive quarter of profitable growth. Management said the business remains on track to grow sales 50% year over year in 2026, supported by expanding partnerships with specialty pharmacies and pharmaceutical companies. The company also pointed to gains in its premium Lotus brand, wherein management cited strong sell-through results and expanding shelf space commitments from retail partners. Hamilton Beach plans to launch additional Lotus products later this year and expects to continue investing in the brand into 2027 and beyond. Within the commercial business, Hamilton Beach reported growing demand for products, including the Summit Edge blender and Sunkist commercial juicers. The company also secured placements with a national coffee chain and a U.S.-based fast-food chain serving Central American markets. Net cash provided by operating activities totaled $3.3 million in the quarter, down from $6.6 million a year earlier. The decline reflected higher working capital requirements, including increased accounts receivable after the company exited an arrangement to sell certain receivables tied to a major customer. During the quarter, Hamilton Beach repurchased about 55,000 shares for approximately $900,000 and paid out $1.6 million in dividends. Net debt stood at $2.6 million at March 31, 2026, compared with $1.7 million a year earlier. Hamilton Beach reiterated its previously issued 2026 guidance despite ongoing macroeconomic uncertainty. The company continues to expect revenue growth to approach the mid-single-digit range for the year, including the impacts of the expiration of its Bartesian licensing agreement at the end of 2025. The gross margin is expected to remain similar to or slightly better than 2025 levels, while operating profit is projected to decline by a low-teens percentage due to higher advertising spending and ERP-related depreciation costs. Management also expects 2026 cash flow from operating activities less investing activities to range between $35 million and $45 million. The company stated that its current outlook does not include the potential recovery of $41 million in IEEPA-related tariffs paid in 2025 and early 2026, which it is actively working to recover. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hamilton Beach Brands Holding Company (HBB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Hamilton Beach Brands Holding Company? Here are five stocks we like better. Hamilton Beach’s Q1 profit surged as gross margin expanded by 510 basis points to 29.7%, helping operating profit more than double to $5 million despite sales coming in slightly below expectations. Revenue was $122 million, down 8.6% year over year, with weaker U.S. consumer demand and softer March sales offset only partly by higher pricing and growth in healthcare and commercial businesses. The company reiterated its 2026 outlook, expecting mid-single-digit revenue growth and gross margins similar to slightly better than 2025, while planning to absorb higher advertising and depreciation costs. Hamilton Beach Brands (NYSE:HBB) said first-quarter profitability exceeded management’s expectations as a sharp improvement in gross margin offset weaker-than-planned sales in parts of its consumer business. President and CEO Scott Tidey said revenue was expected to decline year over year because the company was facing a difficult comparison, but sales came in “modestly below” expectations, primarily due to softer demand in March. He said consumers remained under pressure and discretionary spending weakened in parts of the business, with the impact most evident in the company’s U.S. consumer segment. → Rocket Lab Posts Record Q1 Revenue, Raises Q2 Guidance “Shoppers in our price segments appeared to be especially affected by elevated fuel costs,” Tidey said. Despite the sales pressure, Tidey said Hamilton Beach delivered “exceptional gross margin expansion” of 510 basis points, which helped drive operating profit up 115% to $5 million. → MarketBeat Week in Review – 05/04 - 05/08 Chief Financial Officer Sally Cunningham said first-quarter revenue was $122 million compared with $103.4 million a year earlier, which she described as an 8.6% decline. She said the decline was primarily due to lower volumes in the U.S. consumer business, partially offset by higher prices and continued growth in the company’s healthcare division. Gross profit rose to $36.2 million from $32.8 million in the prior-year quarter, while gross margin improved to 29.7% from 24.6%. → The USMCA Review Is Coming: 3 Border-Sensitive Stocks to Watch Cunningham said the 510-basis-point margin improvement reflected favorable pricing and customer mix, partially offset by higher product costs. She also noted that 190 basis points of the improvement came from a one-time benefit tied to the sell-through of inventory priced in anticipation of IEEPA tariffs that were eliminated following a Supreme Court ruling. “This benefit is non-recurring and will not persist beyond the sell-through of affected inventory,” Cunningham said. Tidey said the company’s implementation of a foreign trade zone at its distribution center last year allowed it to quickly benefit from the ruling by shipping certain products in March without additional tariff charges. He said margins also benefited from sourcing diversification and selective price increases. Cunningham said the remaining 320 basis points of margin improvement was driven by the timing of price increases, which she expects to normalize in the second half of the year, along with greater penetration of the company’s higher-margin commercial and healthcare businesses. Selling, general and administrative expenses rose to $31.2 million from $30.5 million a year earlier. Cunningham said the increase was primarily due to $1.4 million of accelerated depreciation tied to the company’s legacy ERP system, which Hamilton Beach is replacing, partially offset by benefits from restructuring actions taken in the second quarter of last year. Operating profit increased to $5 million from $2.3 million in the first quarter of 2025. Net income was $3.5 million, or $0.26 per diluted share, compared with $1.8 million, or $0.13 per diluted share, a year earlier. Net cash provided by operating activities was $3.3 million for the quarter, down from $6.6 million in the prior-year period. Cunningham attributed the decrease primarily to higher net working capital, including a planned increase in accounts receivable after the company exited an arrangement to sell certain U.S. trade receivables of a single customer to a financial institution. During the quarter, Hamilton Beach repurchased about 55,000 shares for $900,000 and paid $1.6 million in dividends. Net debt at quarter-end was $2.6 million, compared with $1.7 million at March 31, 2025. Tidey said Hamilton Beach continues to make progress on five strategic initiatives, including growth in its core business, digital transformation, premium products, commercial markets and Hamilton Beach Health. In the core business, Tidey highlighted traction for three new blender kitchen systems and a redesigned Durathon iron platform launched during the quarter. He also said the company is expanding into garment steamers and plans to launch two new single-serve coffee platforms in the second half of the year. The company also secured new product placements across multiple categories, including expanded programs with a leading department store for the fall, added shelf space with two wholesale membership clubs and increased penetration with a leading mass-market retailer. Tidey said Hamilton Beach is increasing investments in digital, social media and influencer marketing. He said the company has added resources to improve discoverability across platforms and refine its “AI shopping tactics” as generative AI becomes more influential in consumer shopping behavior. The company also selected a new advertising agency to help oversee its digital marketing strategy beginning in the second half of the year. In the premium market, Tidey said the category represents about half of the $9 billion U.S. appliance market, while Hamilton Beach currently holds about a 1% share. He said the company’s Lotus brand continues to exceed expectations, following “strong double-digit sell-through” for Lotus Professional in 2025. Hamilton Beach is preparing to launch Lotus Signature in the fall. During the Q&A portion of the call, Tidey said the initial exclusivity period for Lotus Professional with a national retail chain ended in the first quarter, and the company is now rolling the product out to other retailers. He said Hamilton Beach supported Lotus with several million dollars last year and expects to invest more in 2026, continuing into 2027 and beyond. Tidey said the commercial business remains a significant growth opportunity. The Summit Edge High-Performance Blender remains central to the company’s commercial strategy, and Tidey said Hamilton Beach is deepening relationships with large food service and hospitality chains. He said the Eclipse commercial blender will soon be added to a leading national coffee chain, while the company recently gained a spindle mixer placement for a leading U.S.-based fast food chain in Central America. Tidey also said Sunkist commercial juicers and sectionizers, launched in the second quarter of last year, continue to exceed expectations with demand from restaurants, hospitality chains and schools. Hamilton Beach Health posted its third consecutive quarter of profitable growth, according to Tidey, who said the company remains on track to increase sales in that business by 50% this year. He said Hamilton Beach is expanding injectable medication partnerships with specialty pharmacies and pharmaceutical companies and recently signed a new injectable drug for its SmartSharp Spin platform. The company also plans to pilot a pill management platform in the third quarter, initially targeting oncology and mental health treatments. Tidey said the platform is intended to improve medication adherence and provide patient feedback. Hamilton Beach reiterated its 2026 guidance. Cunningham said the company continues to expect revenue growth to approach the mid-single-digit range. Gross margins are projected to be similar to slightly better than 2025 levels as the company reinvests first-quarter upside into additional promotional programs to support demand. Reported operating profit is expected to decline by a low-teens percentage, reflecting an incremental $6 million in planned advertising spending and about $6 million of accelerated depreciation related to the legacy ERP system. The company expects cash flow from operating activities less cash used for investing activities to be between $35 million and $45 million in 2026. Cunningham said the outlook excludes any potential impact from IEEPA-related refunds. The company is pursuing approximately $41 million of tariffs paid in 2025 and early 2026, but she said the timing and ultimate recovery remain uncertain. “Our diversified business model, strong brand portfolio, and the work we’ve done strengthening our foundation positions the company to capitalize on improving market conditions this year and create a platform for long-term growth,” Cunningham said. Hamilton Beach Brands Holding Company is a designer, marketer and distributor of branded small kitchen and household appliances. The company's product portfolio spans a range of countertop and electric appliances, including blenders, mixers, toasters, coffeemakers, slow cookers, air fryers, and specialty beverage machines. Through the Hamilton Beach and Proctor-Silex brands, the company serves both everyday consumers and commercial foodservice operators. Established in 1910, Hamilton Beach has introduced a number of innovations in small-appliance technology, from early electric drink mixers to modern immersion blenders and multi-function cookers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hamilton Beach Brands Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.