Hamilton Beach Brands Company (HBB) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 5.6% YoY to $140.3M; gross margin expanded 640 bps to 27.5%, operating profit rose 52.6% to $4.4M, and diluted EPS was $0.26.

• U.S. consumer recovery and Health growth supported Q3 results; softer consumer sentiment and cautious retailer inventory commitments lowered the FY2026 outlook.

Financial highlights

• Q3 gross profit rose to $38.5M from $28.0M; SG&A increased to $34.2M from $25.2M, including higher incentives, advertising and accelerated ERP depreciation.

• Q3 net income was $3.5M, or $0.26 diluted EPS, vs. $1.7M, or $0.12; Q3 operating margin was 3.1% vs. 2.2%.

• 9M revenue rose 2.8% to $404.9M; net income was $40.8M, including a substantial one-time tariff-refund benefit.

• 9M gross profit was $152.2M; reported gross margin was 37.6% vs. 24.4%, or 26.9% excluding IEEPA refunds and affected-inventory benefits.

Outlook and guidance

• FY2026 revenue is now expected to be flat YoY, down from prior guidance for growth approaching mid-single digits; Q4 sales are expected below prior expectations.

• FY2026 gross margin, excluding IEEPA refunds, is expected to improve modestly from 2025; operating profit is forecast to decline in the high teens on a percentage basis.

• Operating cash flow less investing cash use is expected at $40M–$50M, up from $35M–$45M; guidance includes $6M planned advertising and ~$5M non-recurring ERP depreciation.

• Guidance excludes the $36.5M IEEPA tariff refund received in Q2 and the additional $4M refund anticipated in Q4.