Key Highlights

  • Revenue was USD 140.26 million against USD 132.78 million a year earlier, with EPS of USD 0.26 against USD 0.12.
  • Gross profit was USD 38.55 million, a Margin of 27.5% against 21.1% in the prior-year quarter.
  • Net income was USD 3.54 million, and operating profit was USD 4.39 million against USD 2.87 million.
  • Cash and equivalents were USD 92.54 million, and borrowings outstanding on the Credit Facility were USD 25.0 million.

Hamilton Beach Brands (NYSE:HBB) reported third quarter Revenue of USD 140.26 million, against USD 132.78 million in the same quarter of 2025. Net Income was USD 3.54 million, or USD 0.26 per basic and diluted share, against USD 1.65 million, or USD 0.12. No estimates were available for the period.

Revenue

Consumer products revenue was USD 121.97 million against USD 113.84 million, and commercial products revenue was USD 14.19 million against USD 15.49 million. By segment, Home and Commercial Products revenue was USD 137.71 million against USD 130.89 million, and Health revenue was USD 2.56 million against USD 1.89 million.

The company bridged the USD 7.5 million revenue increase as USD 5.6 million from unit Volume and product mix, USD 1.3 million from average sales price and USD 0.6 million from foreign currency. Management tied the growth to the U.S. Consumer Business recovering from the year-earlier quarter, when one large retailer delayed orders while assessing inventory and pricing after the April 2025 tariffs, and to double-digit growth in the Health business.

Profit and Margins

Gross profit rose to USD 38.55 million from USD 28.03 million, and the margin was 27.5% against 21.1%. Management attributed the change to continued sell-through of inventory no longer subject to IEEPA tariffs, compared with the year-earlier period when Tariff rates on imports from China reached 125%.

Selling, general and administrative expenses were USD 34.16 million against USD 25.15 million. Management cited USD 4.0 million of higher incentive-related personnel costs linked to the share price, USD 1.6 million of added Advertising and USD 1.3 million of accelerated Depreciation on its legacy enterprise resource planning system. Operating profit was USD 4.39 million against USD 2.87 million.

For nine months, net income was USD 40.79 million, or USD 3.02 per share, against USD 7.91 million, or USD 0.58. Management said that period includes one-time benefits from the Supreme Court's February 20, 2026 ruling on IEEPA tariffs, including USD 36.5 million of tariff refunds received in the second quarter, and that gross margin excluding those benefits would have been 26.9%.

Cash, Debt and Capital Returns

Cash and cash equivalents were USD 92.54 million at September 30, against USD 47.31 million at year end 2025 and USD 17.18 million a year earlier. Nine-month Operating Cash Flow was USD 80.5 million against cash used of USD 14.6 million, which management tied to the tariff refunds and lower inventory, since the prior year included accelerated purchases.

During the quarter the company paid down USD 25.0 million of borrowings under its credit facility, leaving USD 25.0 million outstanding against a borrowing base of USD 122.0 million and excess availability of USD 97.0 million. The facility expires on December 13, 2029.

The quarterly Dividend was USD 0.125 per share. The company repurchased 24,908 shares in the quarter for about USD 0.6 million, and 178,190 shares in the nine months for USD 3.5 million. The board's repurchase program covers up to USD 25 million from January 1, 2026 through December 31, 2027, with USD 21.54 million of authorization remaining.

Benchmarks Ahead

Revenue of USD 140.26 million sits alongside EPS of USD 0.26, cash of USD 92.54 million and borrowings of USD 25.0 million.

Management named a few reference points. The revenue pattern typically rises in the second half and peaks in the fourth quarter on holiday selling. The tariff-related gross margin benefits were described as non-recurring and tied to the sell-through of affected inventory. Remaining IEEPA refund claims are accounted for as gain contingencies, recognized only when realized or realizable.