Core Viewpoint - The second quarter of 2025 presented significant challenges for Hamilton Beach Brands due to trade disruptions from new tariff measures, leading to a notable decline in revenue but an improvement in gross profit margin through strategic actions taken by the company [2][3]. Financial Performance - Total revenue decreased by $28.5 million, or 18.2%, to $127.8 million compared to $156.2 million in the same quarter of 2024 [3]. - Gross profit was $35.1 million, representing 27.5% of total revenue, an increase from 25.9% in the prior year, attributed to a favorable shift in customer mix and higher-margin sales [4]. - Operating profit fell to $5.9 million from $10.0 million year-over-year [5]. - Net income was $4.5 million, or $0.33 per diluted share, down from $6.0 million, or $0.42 per diluted share, in the previous year [6]. Cost Management - Selling, general and administrative expenses (SG&A) decreased to $29.1 million from $30.4 million, primarily due to lower personnel costs, despite a one-time severance charge [5]. Cash Flow and Debt - For the six months ended June 30, 2025, net cash used in operating activities was $23.8 million, a decrease of $60.9 million from net cash provided of $37.1 million in the prior year, largely due to inventory changes [7]. - As of June 30, 2025, net debt increased to $38.7 million from $12.8 million a year earlier, with total debt remaining at $50.0 million [9][18]. Shareholder Returns - The company returned value to shareholders through share repurchases, buying back 215,297 shares for $4.0 million, and paid $1.6 million in dividends during the second quarter [8]. Market Outlook - Due to increased uncertainty from higher tariffs, particularly affecting imports from China, the company has opted not to provide specific guidance on its business outlook [10].

Core Viewpoint - Hamilton Beach Brands Holding Company reported a solid performance in Q1 2025, with revenue growth and improved profitability despite macroeconomic challenges [2][3]. Financial Performance - Total revenue increased by 4.0% to $133.4 million compared to $128.3 million in Q1 2024, driven by a favorable product mix and increased volume [3][12]. - Gross profit rose to $32.8 million, representing a gross margin of 24.6%, up from 23.4% in the previous year, primarily due to a favorable product mix including the addition of HealthBeacon [4][12]. - Operating profit improved to $2.3 million from a loss of $0.9 million in the prior year [5][12]. - 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, in Q1 2024 [5][12]. Cash Flow and Debt Management - Cash flow from operating activities was $6.6 million, a decrease from $19.7 million in Q1 2024, attributed to changes in working capital [6][12]. - The company reported net debt of $1.7 million, significantly reduced from $23.7 million a year earlier, indicating improved financial health [8][12]. Strategic Outlook - The company is facing increased uncertainty due to recent tariff hikes, particularly affecting products sourced from China, which has led to a temporary suspension of forward-looking guidance [9]. - Management is actively working to diversify the sourcing base and implement measures to mitigate the impact of higher tariffs, with expectations for improved margins in 2026 [2][9]. Shareholder Returns - In Q1 2025, the company repurchased 141,435 shares for $2.7 million and paid $1.6 million in dividends, reflecting a commitment to returning value to shareholders [7].