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Core Insights - Hamilton Beach Brands Holding Company (HBB) experienced a significant decline in stock price, losing 4.5% since the second quarter results were reported, compared to a slight decline of 0.1% in the S&P 500 index during the same period [1] - The company reported an 18.2% decrease in revenues for Q2 2025, totaling $127.8 million, down from $156.2 million year-over-year, alongside a drop in net income to $4.5 million from $6 million [2] - Despite revenue and net income declines, gross margin improved by 160 basis points to 27.5%, attributed to a favorable customer and product mix [2][7] Financial Performance - Operating profit fell 40.4% to $5.9 million from $10 million in the previous year [3] - Selling, general and administrative (SG&A) expenses decreased slightly to $29.1 million from $30.4 million, although this was partially offset by one-time severance expenses related to restructuring [3] - Cash flow from operations turned negative, with a net cash usage of $23.8 million in the first half of 2025, compared to a net cash inflow of $37.1 million in the same period last year, primarily due to higher inventory levels and reduced purchases [4] Strategic Actions - The CEO highlighted "dramatic" trade disruptions due to a 145% tariff increase on China exports, leading to market uncertainty and temporary halts in retail purchasing [6] - In response, the company is diversifying manufacturing away from China, selectively raising prices, and implementing cost-reduction programs, including an 8% workforce reduction [6] - Management noted that gross margin improvement was driven by stronger performance in higher-margin Commercial and Health divisions [7] Market Dynamics - The revenue decline was largely due to a temporary pause in retailer purchasing as businesses reassessed inventory in light of new U.S. tariffs [8] - Although purchasing resumed mid-quarter after a new trade agreement framework was announced, the final outcomes of tariff negotiations remain uncertain [8] - Constrained trade advertising and promotional activities were strategically undertaken to align with subdued retailer demand, impacting U.S. consumer segment sales [9] Future Outlook - The company opted to withhold financial guidance for the remainder of 2025 due to ongoing macroeconomic uncertainties [10] - Despite this, management expressed confidence in the long-term strategy, particularly in premium appliances, commercial partnerships, and healthcare offerings [11] - The launch of the Lotus premium brand and the expansion of the HealthBeacon platform are anticipated growth drivers [12][13] Partnerships and Innovations - Hamilton Beach is progressing with the Lotus premium brand launch, which includes several new products, with a marketing budget of over $5 million allocated for the next 18 months [12] - HealthBeacon, the digital health business, reported revenue growth to $1.7 million and aims to increase its patient subscription base by over 50% in 2025 [13] - The partnership with Sunkist for branded commercial juicers is expected to contribute 5% of commercial business revenues in 2025, with plans to double this in 2026 [14]

Financial Data and Key Metrics Changes - Total revenue in Q2 2025 was $127.8 million, down 18.2% from the previous year, primarily due to lower volumes in the U.S. Consumer business as retailers paused purchases [18] - Gross profit was $35.1 million, compared to $40.5 million in the same period last year, with a gross margin increase of 160 basis points to 27.5% [19] - Operating profit was $5.9 million, or 4.7% of total revenue, down from $10 million or 6.4% in the previous year [21] - Net income was $4.5 million, or $0.33 per diluted share, compared to $6 million, or $0.42 per diluted share, a year ago [21] - For the first half of 2025, revenue was $261.1 million, down 8.2% from 2024, with gross margin increasing 120 basis points to 26% [21] Business Line Data and Key Metrics Changes - The core business maintained its number one position in units in North America despite top-line headwinds [12] - The Health business generated $1.7 million in revenue for Q2, significantly improving from $859,000 last year, while reducing operating segment loss from $2 million to $864,000 [32] - The commercial business contributed positively to gross margin expansion and profitability, with expectations for SunCast revenue to be about 5% of the commercial business in 2025 and double in 2026 [14] Market Data and Key Metrics Changes - The U.S. business was adversely affected by increased tariffs, leading to a decrease in retailer demand [6] - Retailers paused purchasing in response to new tariffs, impacting sales volume [18] - Visibility remains limited due to ongoing tariff negotiations and their potential impact on consumer buying [23] Company Strategy and Development Direction - The company is diversifying manufacturing away from China to other Asia Pacific countries to minimize tariff exposure [7] - Strategic pricing actions were taken in June to align with current tariff rate increases, which were accepted by retail partners [9] - The company is optimistic about market opportunities for its core business, with key placements secured for the holiday season [12] - The Lotus brand launch is expected to be heavily supported with over $5 million in marketing over the next 18 months [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and brand strength despite near-term challenges [15] - The company is focused on maintaining market leadership and achieving long-term success through proactive measures [15] - Ongoing geopolitical events and trade negotiations create uncertainty in retailer planning and consumer demand [23] Other Important Information - The company realized $10 million in annualized savings from cost management measures, including an 8% reduction in force [9] - Net cash used for operating activities was $23.8 million for the first half of 2025, compared to a net cash provided of $37.1 million in the same period last year [22] - The restructuring charge for the quarter was approximately $800,000 [49] Q&A Session Summary Question: Performance of Health Beacon in Q2 - Management reported that the Health business had $1.7 million in revenue for Q2, significantly improving from last year, and is on track to meet growth targets [32] Question: Capital allocation plan regarding buybacks - Management indicated that stock buybacks are opportunistic and aim to avoid dilution from stock issuances [34][36] Question: Cost savings program details - A significant portion of the $10 million in annualized savings is headcount-related, primarily from the retail segment [41] Question: Pricing increases and competitive landscape - Management noted that pricing adjustments were made to cover tariffs, and competitors face similar challenges [43][48] Question: Long-term growth strategy - Management emphasized a focus on growth, particularly in the premium space, and expressed confidence in the company's strategy despite recent challenges [56][60]

[Part I. FINANCIAL INFORMATION](index=4&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements, including balance sheets, operations, cash flows, equity changes, and detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) | Metric | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | June 30, 2024 (in thousands) | | :-------------------------------- | :--------------------------- | :-------------------------- | :-------------------------- | | **Assets** | | | | | Cash and cash equivalents | $11,338 | $45,644 | $37,213 | | Inventory | $160,357 | $124,904 | $130,197 | | Total current assets | $260,106 | $303,719 | $264,992 | | Total assets | $363,804 | $415,067 | $369,896 | | **Liabilities & Equity** | | | | | Accounts payable | $76,275 | $104,161 | $96,452 | | Revolving credit agreements (non-current) | $50,000 | — | — | | Total current liabilities | $105,492 | $154,120 | $177,645 | | Total liabilities | $199,829 | $249,164 | $224,164 | | Total stockholders' equity | $163,975 | $165,903 | $145,732 | - Total assets decreased by **$51.26 million** from December 31, 2024, to June 30, 2025, primarily driven by a significant reduction in cash and cash equivalents and trade receivables, partially offset by an increase in inventory[7](index=7&type=chunk) - Total liabilities decreased by **$49.34 million** from December 31, 2024, to June 30, 2025, mainly due to a decrease in accounts payable and other current liabilities, while **$50.00 million** in revolving credit agreements shifted from current to non-current[7](index=7&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Revenue | $127,770 | $156,240 | $261,142 | $284,517 | | Gross profit | $35,131 | $40,496 | $67,902 | $70,550 | | Operating profit (loss) | $5,948 | $9,956 | $8,261 | $9,013 | | Net income (loss) | $4,453 | $5,986 | $6,258 | $4,824 | | Basic and diluted EPS | $0.33 | $0.42 | $0.46 | $0.34 | - Revenue for the three months ended June 30, 2025, decreased by **18.2%** year-over-year, while net income decreased by **25.6%**[9](index=9&type=chunk) - For the six months ended June 30, 2025, revenue decreased by **8.2%** year-over-year, but net income increased by **29.7%**, and basic and diluted EPS rose from **$0.34 to $0.46**[9](index=9&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Net income (loss) | $4,453 | $5,986 | $6,258 | $4,824 | | Foreign currency translation adjustment | $2,660 | $(1,868) | $2,987 | $(2,965) | | Cash flow hedging activity | $(1,115) | $1,555 | $(1,735) | $1,592 | | Total other comprehensive income (loss), net of tax | $1,080 | $(1,243) | $355 | $(1,760) | | Comprehensive income (loss) | $5,533 | $4,743 | $6,613 | $3,064 | - Comprehensive income for the three months ended June 30, 2025, increased to **$5.53 million** from **$4.74 million** in the prior year, primarily due to a positive shift in foreign currency translation adjustment[12](index=12&type=chunk) - For the six months ended June 30, 2025, comprehensive income more than doubled to **$6.61 million** from **$3.06 million** in the prior year, largely influenced by favorable foreign currency translation adjustments[12](index=12&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | | Net cash provided by (used for) operating activities | $(23,773) | $37,071 | | Net cash provided by (used for) investing activities | $(1,466) | $(7,347) | | Net cash provided by (used for) financing activities | $(10,549) | $(7,683) | | Increase (decrease) in cash for the period | $(35,186) | $21,789 | | Balance at the end of the period | $11,338 | $38,168 | - Net cash used for operating activities significantly shifted from a positive **$37.07 million** in H1 2024 to a negative **$23.77 million** in H1 2025, a year-over-year decline of **$60.9 million**[14](index=14&type=chunk)[83](index=83&type=chunk) - Net cash used for investing activities decreased by **$5.88 million** in H1 2025 compared to H1 2024, primarily due to the absence of the HealthBeacon acquisition in the current period[14](index=14&type=chunk)[84](index=84&type=chunk) - Net cash used for financing activities increased to **$10.55 million** in H1 2025 from **$7.68 million** in H1 2024, driven by increased share repurchases[14](index=14&type=chunk)[85](index=85&type=chunk) [Consolidated Statements of Changes in Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) | Equity Component | Balance, Jan 1, 2025 (in thousands) | Balance, June 30, 2025 (in thousands) | Balance, Jan 1, 2024 (in thousands) | Balance, June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :---------------------------------- | :---------------------------------- | | Class A Common Stock | $115 | $118 | $112 | $114 | | Capital in Excess of Par Value | $76,668 | $78,673 | $70,401 | $73,483 | | Treasury Stock | $(26,202) | $(33,549) | $(12,013) | $(16,552) | | Retained Earnings | $123,863 | $126,919 | $99,398 | $101,078 | | Accumulated Other Comprehensive Income (Loss) | $(8,577) | $(8,222) | $(10,667) | $(12,427) | | Total Stockholders' Equity | $165,903 | $163,975 | $147,267 | $145,732 | - Total stockholders' equity decreased slightly from **$165.90 million** at January 1, 2025, to **$163.98 million** at June 30, 2025, primarily due to share repurchases and cash dividends, partially offset by net income[17](index=17&type=chunk) - Treasury stock increased by **$7.35 million** during the first six months of 2025, reflecting ongoing share repurchase activities[17](index=17&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Detailed notes for financial statements, covering accounting policies, transactions, equity, revenue, and segments

Second Quarter 2025 Results Overview [Management Commentary and Strategic Response](index=1&type=section&id=Management%20Commentary%20and%20Strategic%20Response) Facing Q2 2025 challenges from new tariffs and macroeconomic headwinds, the company implemented strategic actions to improve gross margin and mitigate profitability impact - The second quarter faced challenges primarily due to trade disruptions from new tariff measures and macroeconomic headwinds[2](index=2&type=chunk) - The company implemented strategic actions, including accelerating manufacturing diversification, selective price increases, and reducing the fixed cost base[2](index=2&type=chunk) - Gross margin expanded by **160 basis points** through favorable customer mix shifts, including high-margin commercial and health businesses, mitigating sales pressure on profitability[2](index=2&type=chunk) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Q2 2025 saw revenue decline by 18.2% and operating profit worsen, despite a 160 basis point gross margin improvement and increased net debt Q2 2025 Key Financial Data Comparison | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change | | :--- | :--- | :--- | :--- | | Revenue | $127.8 | $156.2 | -18.2% | | Gross Margin | 27.5% | 25.9% | +160 basis points | | Operating Profit | $5.9 | $10.0 | -41.0% | | Total Debt | $50.0 | $50.0 | 0% | | Net Debt | $38.7 | $12.8 | +202.3% | Detailed Financial Performance (Q2 2025 vs Q2 2024) [Revenue Performance](index=2&type=section&id=Revenue%20Performance) Total revenue declined 18.2% year-over-year, driven by reduced U.S. consumer sales as retailers paused purchases amid inventory assessments and new tariff price increases - Total revenue decreased by **$28.5 million**, or **18.2%**, to **$127.8 million**[4](index=4&type=chunk) - The revenue decline was primarily driven by reduced sales volume in the U.S. consumer business, as some retailers paused purchases in Q2 to assess inventory levels and price increases from new tariffs[4](index=4&type=chunk) [Gross Profit and Margin](index=2&type=section&id=Gross%20Profit%20and%20Margin) Gross profit reached $35.1 million (27.5% of revenue), with gross margin up 160 basis points, driven by favorable U.S. consumer customer mix and higher-margin international and HealthBeacon sales - Gross profit was **$35.1 million**, representing **27.5%** of total revenue, compared to **$40.5 million** or **25.9%** in the prior year period[5](index=5&type=chunk) - The increase in gross margin was primarily attributable to a shift in the customer mix within the U.S. consumer business and a greater proportion of higher-margin sales from international commercial business and HealthBeacon during the period[5](index=5&type=chunk) [Operating Expenses and Profitability](index=2&type=section&id=Operating%20Expenses%20and%20Profitability) SG&A expenses decreased due to lower incentive costs, partially offset by restructuring severance, resulting in a significant year-over-year decline in operating profit - Selling, general, and administrative (SG&A) expenses decreased to **$29.1 million** from **$30.4 million** in the prior year period[6](index=6&type=chunk) - The decrease in SG&A was primarily driven by lower incentive-related personnel costs, partially offset by one-time severance costs incurred from restructuring actions taken by management to reduce the cost structure[6](index=6&type=chunk) - Operating profit decreased to **$5.9 million** from **$10.0 million** in the prior year period[6](index=6&type=chunk) [Net Income and Earnings Per Share](index=2&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share) Both net income and diluted earnings per share for Q2 2025 were lower than the prior year period Net Income and Earnings Per Share Comparison | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :--- | :--- | :--- | | Net Income | $4.5 | $6.0 | | Diluted EPS | $0.33 | $0.42 | Cash Flow and Debt Analysis [Operating Cash Flow (Six Months)](index=2&type=section&id=Operating%20Cash%20Flow%20(Six%20Months)) Operating cash flow for the six months ended June 30, 2025, shifted to a $23.8 million outflow, a sharp decline from prior year's inflow, primarily due to inventory and accounts payable changes from tariffs and slower sales - For the six months ended June 30, 2025, net cash used in operating activities was **$23.8 million**, a **$60.9 million** decrease from net cash provided of **$37.1 million** in the prior year period[8](index=8&type=chunk) - The primary reason was a **$50.8 million** impact from changes in inventory and accounts payable, attributed to increased inventory due to higher tariffs and accelerated purchases in Q1 2025[8](index=8&type=chunk) - Slower sales reduced inventory turns, while lower Q2 purchases decreased accounts payable, further impacting cash flow[8](index=8&type=chunk) [Shareholder Capital Returns](index=2&type=section&id=Shareholder%20Capital%20Returns) The company returned value to shareholders in the second quarter through share repurchases and quarterly dividends - The company repurchased **215,297 shares** of Class A common stock for a total of **$4.0 million**[9](index=9&type=chunk) - Dividends of **$1.6 million** were paid during Q2 2025[9](index=9&type=chunk) [Net Debt Position](index=2&type=section&id=Net%20Debt%20Position) As of June 30, 2025, net debt increased to $38.7 million, compared to $12.8 million in the prior year period - As of June 30, 2025, net debt was **$38.7 million**, compared to **$12.8 million** as of June 30, 2024[10](index=10&type=chunk) - Net debt is defined as total debt less cash and cash equivalents and highly liquid short-term investments[10](index=10&type=chunk) [Business Outlook](index=3&type=section&id=Business%20Outlook) Due to increased uncertainty from recently implemented higher U.S. tariffs, particularly on China, the company has decided not to provide specific business outlook guidance - Given the increased uncertainty resulting from recently implemented higher U.S. tariffs, particularly on China, the company deems it prudent to maintain its practice of not providing specific business outlook guidance[11](index=11&type=chunk) Company Information [About Hamilton Beach Brands Holding Company](index=3&type=section&id=About%20Hamilton%20Beach%20Brands%20Holding%20Company) Hamilton Beach Brands is a leading designer, marketer, and distributor of small appliances, housewares, and commercial products, also providing connected healthcare solutions, with diverse brands and an active expansion into home health via its Health subsidiary - The company is a leading designer, marketer, and distributor of small household appliances, specialty housewares, and commercial products, also providing connected healthcare management devices and software[13](index=13&type=chunk) - It owns consumer brands like Hamilton Beach® and Proctor Silex®, commercial brands such as Hamilton Beach Commercial®, and licenses brands including CHI®, Clorox™, and Brita Hub™[13](index=13&type=chunk) - The Hamilton Beach Health subsidiary focuses on expanding into the home health and medical markets, having acquired medical technology company HealthBeacon in 2024[13](index=13&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements, subject to risks like global economic conditions, tariffs, and supply chain issues, which may cause actual results to differ materially; the company disclaims any obligation to revise these statements - Statements in the press release that are not historical facts are 'forward-looking statements,' subject to risks and uncertainties that could cause actual results to differ materially from expectations[14](index=14&type=chunk) - Risks and uncertainties include, but are not limited to: uncertain or adverse global economic conditions, tariff impacts, cost changes, supply chain capabilities, changes in consumer purchasing levels, retail market changes, bankruptcy of major customers or suppliers, currency fluctuations, changes in the regulatory environment, product liability, and increased competition[14](index=14&type=chunk) - The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof[14](index=14&type=chunk) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) The company will host an earnings conference call and webcast on Wednesday, July 30, 2025, at 4:30 PM ET, providing dial-in information and website access - The company will host an earnings conference call and webcast on Wednesday, July 30, 2025, at **4:30 PM ET**[12](index=12&type=chunk) - Dial-in numbers are **888-350-3452** (toll-free) or **646-960-0369** (international), with conference ID **1809480**[12](index=12&type=chunk) - The webcast will be available on the company's investor relations website at www.hamiltonbeachbrands.com and will be archived[12](index=12&type=chunk) Consolidated Financial Statements [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) This section details the consolidated statements of operations for the three and six months ended June 30, 2025 and 2024, presenting key financial metrics including revenue, costs, gross profit, operating expenses, operating profit, net income, and EPS Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended June 30, 2025 (Thousands USD) | Three Months Ended June 30, 2024 (Thousands USD) | Six Months Ended June 30, 2025 (Thousands USD) | Six Months Ended June 30, 2024 (Thousands USD) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $127,770 | $156,240 | $261,142 | $284,517 | | Cost of Sales | 92,639 | 115,744 | 193,240 | 213,967 | | Gross Profit | 35,131 | 40,496 | 67,902 | 70,550 | | Selling, General & Administrative Expenses | 29,105 | 30,397 | 59,485 | 61,344 | | Operating Profit (Loss) | 5,948 | 9,956 | 8,261 | 9,013 | | Net Income (Loss) | $4,453 | $5,986 | $6,258 | $4,824 | | Basic and Diluted EPS | $0.33 | $0.42 | $0.46 | $0.34 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) This section presents the consolidated balance sheets as of June 30, 2025, December 31, 2024, and June 30, 2024, outlining assets, liabilities, and stockholders' equity, with changes in cash and accounts payable Consolidated Balance Sheets (Unaudited) | Metric | June 30, 2025 (Thousands USD) | December 31, 2024 (Thousands USD) | June 30, 2024 (Thousands USD) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | $11,338 | $45,644 | $37,213 | | Inventory | 160,357 | 124,904 | 130,197 | | Total Assets | $363,804 | $415,067 | $369,896 | | Accounts Payable | $76,275 | $104,161 | $96,452 | | Revolving Credit Facility | 50,000 | 50,000 | — | | Total Liabilities | 199,829 | 249,164 | 224,164 | | Total Stockholders' Equity | 163,975 | 165,903 | 145,732 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section details the consolidated statements of cash flows for the six months ended June 30, 2025 and 2024, outlining cash flows from operating, investing, and financing activities, noting a shift from net operating cash inflow to outflow Consolidated Statements of Cash Flows (Unaudited) | Activity Type | Six Months Ended June 30, 2025 (Thousands USD) | Six Months Ended June 30, 2024 (Thousands USD) | | :--- | :--- | :--- | | Net Cash (Used in) Provided by Operating Activities | $(23,773) | $37,071 | | Net Cash (Used in) Provided by Investing Activities | $(1,466) | $(7,347) | | Net Cash (Used in) Provided by Financing Activities | $(10,549) | $(7,683) | | Ending Cash, Cash Equivalents, and Restricted Cash Balance | $11,338 | $38,168 | Non-GAAP Financial Measures Reconciliation [Net (Cash) Debt Reconciliation](index=8&type=section&id=Net%20(Cash)%20Debt%20Reconciliation) This section provides a reconciliation of the non-GAAP financial measure 'Net (Cash) Debt' to the most directly comparable GAAP measure, showing net debt of $38.7 million as of June 30, 2025 - Net (Cash) Debt is a non-GAAP financial measure used by management to assess financial position, defined as total debt less cash and cash equivalents and highly liquid short-term investments[22](index=22&type=chunk) Net (Cash) Debt Reconciliation (Millions USD) | Metric | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | June 30, 2024 (Millions USD) | | :--- | :--- | :--- | :--- | | Total Debt | $50.0 | $50.0 | $50.0 | | Less: Cash and Cash Equivalents | $(11.3) | $(45.6) | $(37.2) | | Less: Highly Liquid Short-Term Investments | — | $(5.0) | — | | Net (Cash) Debt | $38.7 | $(0.6) | $12.8 |

GLEN ALLEN, Va., July 30, 2025 /PRNewswire/ -- Hamilton Beach Brands Holding Company (NYSE: HBB) (The Company) today announced results for the second quarter of 2025. Second Quarter 2025 Overview "The second quarter presented challenges as significant trade disruptions from new tariff measures impacted the broader industry," said R. Scott Tidey, President and Chief Executive Officer. "Our team responded swiftly with strategic actions, including accelerating our manufacturing diversification, implementing se ...

Core Viewpoint - Hamilton Beach Brands Holding Company is set to release its second quarter financial results for 2025 on July 30, 2025, after market close, and will host a conference call to discuss these results [1]. Group 1: Financial Results Announcement - The company will file its 10-Q for the quarter ended June 30, 2025, on July 30, 2025 [1]. - A conference call is scheduled for July 30, 2025, at 4:30 p.m. Eastern Time to discuss the financial results [2]. Group 2: Company Overview - Hamilton Beach Brands Holding Company is a prominent designer, marketer, and distributor of a variety of small electric household and specialty housewares appliances, as well as commercial products for the food service industry [3]. - The company owns several consumer brands, including Hamilton Beach®, Proctor Silex®, and Hamilton Beach Professional®, among others [3]. - The company has exclusive agreements to design, sell, and distribute products like Bartesian® cocktail makers and Numilk® plant-based milk makers, and has expanded into the home health market through its Hamilton Beach Health subsidiary [3].

Company Overview - Hamilton Beach Brands Holding Company (NYSE: HBB) is recognized as a producer and seller of small electric household and specialty housewares, which has been assigned a soft 'buy' rating [1]. Industry Insights - Crude Value Insights provides an investment service and community that focuses on oil and natural gas, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1]. - Subscribers to Crude Value Insights benefit from a 50+ stock model account, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [2].

Core Insights - Hamilton Beach Brands Holding Company (HBB) shares have decreased by 23.2% since the first quarter of 2025 results, contrasting with a 0.63% increase in the S&P 500 index during the same period [1] - The company reported a revenue increase of 4% year-over-year, reaching $133.4 million, with a gross profit rise of 9% to $32.8 million and a net income of $1.8 million compared to a net loss of $1.2 million a year ago [2] - Operating profit improved significantly to $2.3 million from a loss of $0.9 million in the previous year, while SG&A expenses slightly decreased to $30.4 million [3] Financial Performance - Cash flow from operations was $6.6 million, a decline from $19.7 million the previous year, attributed to higher inventory levels and tougher comparisons in receivables collections [4] - The North America consumer business, particularly in the U.S., drove first-quarter gains, supported by positive at-home dining trends [5] - The Health segment, including HealthBeacon, generated $1.5 million in revenues and is expected to grow significantly due to a new partnership with OptumHealth [5][13] Strategic Developments - E-commerce accounted for approximately 40% of U.S. consumer sales, growing in the mid-single digits, while international revenues faced slight declines [7] - The company plans to launch a new premium brand, Lotus, targeting high-end home cooks with seven products set for release later in the year [6] - CEO Scott Tidey noted that 15% of U.S.-bound manufacturing has shifted away from China, with expectations for two-thirds to be sourced elsewhere by the end of 2025, which is projected to positively impact margins in 2026 [8][9] Outlook and Challenges - The company suspended forward guidance due to escalating tariff uncertainties, despite initial results positioning HBB on track to meet full-year targets [10][11] - Management remains confident in its mitigation strategies, including price increases and pre-buying inventory before tariffs took effect [11] - The company repurchased 141,435 shares for $2.7 million and paid out $1.6 million in dividends, indicating a commitment to shareholder returns [12]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $133.4 million, a 4% increase compared to Q1 2024, driven by favorable product mix and higher volumes [20] - Gross profit was $32.8 million, with a gross profit margin of 24.6%, up from 23.4% in the previous year [21] - Operating profit improved to $2.3 million from an operating loss of $943,000 in Q1 2024 [22] - Net income was $1.8 million or $0.13 per diluted share, compared to a net loss of $1.2 million or $0.08 per diluted share a year ago [23] Business Line Data and Key Metrics Changes - Hamilton Beach brand sales saw modest growth, primarily from the U.S. Consumer and Latin America businesses [8] - The premium business experienced mid-single-digit growth, driven by new product launches like Nu Milk and Qi brand products [10] - The Health Beacon business contributed $1.5 million in revenue, marking its third consecutive quarter of increasing patient subscriptions [12][13] Market Data and Key Metrics Changes - North American consumer markets showed solid growth, with the U.S. market being the major contributor [20] - International revenue experienced slight declines, indicating challenges in overseas markets [20] Company Strategy and Development Direction - The company is focused on six strategic initiatives: driving core growth, gaining share in the premium market, leading in the global commercial market, accelerating growth of Hamilton Beach Health, enhancing digital transformation, and leveraging partnerships and acquisitions [7] - The launch of the new premium brand Lotus is expected to capture share in the $4 billion premium market [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increasing macroeconomic headwinds and the impact of tariffs, stating that visibility into near-term trends has become challenging [6][26] - The company is taking actions to mitigate tariff impacts, including price increases and sourcing diversification [15][17] - Future guidance has been temporarily suspended due to the unpredictability of trade negotiations [27] Other Important Information - The company reported a net debt position of $1.7 million, significantly reduced from $23.7 million at the end of the previous year [25] - E-commerce sales accounted for approximately 40% of U.S. consumer sales, with mid-single-digit growth reported in Q1 [14] Q&A Session Summary Question: Clarification on gross margin outlook with tariffs - Management indicated that while they are working to mitigate tariffs, they do not have visibility to share regarding gross margins going forward [31] Question: Cost comparison of sourcing outside China - Management stated that they feel confident in maintaining margins as they diversify production outside of China, regardless of cost impacts [38] Question: Retailers' response to price increases - Management noted that there is open communication with retailers regarding price increases, and both parties are navigating the situation together [42][44] Question: Performance breakout for HealthBeacon - Management confirmed that performance will continue to be disclosed in segment reports and expressed excitement about the business's growth [47]