Hamilton Beach Brands Company (HBB) investor relations material

Executive summary

• Q2 2026 revenue rose 11.6% year-over-year to $142.6 million, driven by U.S. Consumer volume recovery and price increases following the IEEPA tariff ruling.

• Net income for Q2 2026 was $33.7 million, up from $4.5 million, reflecting significant one-time $36.5 million IEEPA tariff refunds.

• Gross margin surged to 54.3% from 27.5%, primarily due to the tariff refund; excluding this, gross margin would have been 26.1%.

• Strategic growth pillars advanced, including new product launches, premium market expansion, and digital transformation.

• Health segment achieved its fourth consecutive quarter of profitable growth and is expanding its connected device platform.

Financial highlights

• Q2 2026 revenue: $142.6 million (up $14.9 million year-over-year).

• Q2 2026 net income: $33.7 million (up $29.3 million year-over-year).

• Gross profit was $77.5 million (54.3% margin), up from $35.1 million (27.5%) last year, driven by the $36.5 million tariff refund.

• Net cash from operations for the first half was $61.5 million, compared to a $23.8 million outflow last year.

• Net cash position at quarter-end: $51.5 million vs. net debt of $38.7 million a year ago.

Outlook and guidance

• 2026 revenue growth expected to approach mid-single digits, excluding tariff refund and with a partial offset from a licensing agreement expiration.

• Gross margins for 2026 now expected to improve modestly over 2025, versus prior guidance of flat to slightly better.

• Operating profit forecasted to decline high single digits, reflecting increased advertising and ERP depreciation.

• Cash flow from operations less investing activities projected at $35–$45 million for 2026.

• Management expects revenue to increase in the second half, peaking in Q4 due to seasonal demand.