Hamilton Beach Brands Holding Co
For the period ended Jun 30, 2025. Filed Jul 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 30, 2025
HBB$32.16-0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-30.
0001709164-25-000019
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-30.
0001709164-25-000037
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 36 previous paragraphs and 44 current paragraphs.
24 unchanged; 8 reworded; 11 added; 4 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 4 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Revenue - Revenue decreased $28.5 million, or 18.2%, to $127.8 million compared to $156.2 million in the prior year. The revenue decline was primarily driven by lower volumes in the Company’s U.S. Consumer business as some retailers paused buying in the second quarter in order to assess inventory levels and price increases flowing from the new tariffs implemented by the United States in April 2025. While many retailers have resumed buying, the future tariff related impacts on consumer demand remain uncertain.
Current report
Gross profit - As a percentage of revenue, gross profit margin increased to 27.5% compared to 25.9% in the prior year primarily due to a shift in our customer mix within our U.S. Consumer business, along with a larger proportion of sales from our higher-margin International Commercial business and HealthBeacon in the current period.
Current report
Other (income) expense, net - Other (income) expense, net increased by $1.1 million to $0.2 million of income for the three months ended June 30, 2025 driven by currency gains of $0.3 million in the current three-month period compared to currency losses of $0.6 million in the second quarter of 2024.
Current report
Income tax expense (benefit) - The effective tax rate was 25.9% and 33.2% for three months ended June 30, 2025 and 2024, respectively. The effective tax rate was lower for the three months ended June 30, 2025 driven by a reduction in non-deductible expenses and a decreased impact of the HealthBeacon valuation allowance.
Current report
First Six Months of 2025 Compared with First Six Months of 2024
Current report
Revenue - Revenue decreased by $23.4 million compared to the prior year. The revenue decline was primarily driven by lower volumes in the Company’s U.S. Consumer business as some retailers paused buying in the second quarter in order to assess inventory levels and price increases flowing from the new tariffs implemented by the United States in April 2025. While many retailers have resumed buying, the future tariff related impacts on consumer demand remain uncertain.
Current report
Gross profit - Gross profit margin increased to 26.0% from 24.8% primarily due to a shift in our customer mix within our U.S. Consumer business, along with a larger proportion of sales from our higher-margin International Commercial business and HealthBeacon in the current period.
Current report
Selling, general and administrative expenses (SG&A) - Selling, general and administrative expenses decreased $1.9 million compared to 2024. The decrease was primarily driven by lower incentive related personnel costs, partially offset by a one-time severance charge from restructuring actions taken by management to deleverage its cost structure.
Current report
Interest (income) expense, net - Interest expense, net decreased $0.2 million due to interest income from the investment of the pension surplus assets during the first six months of 2025.
Current report
Income tax expense (benefit) - The effective tax rate was 26.7% compared to 37.2% in the prior year. The effective tax rate was lower for the six months ended June 30, 2025 driven by a reduction in non-deductible expenses and a decreased impact of the HealthBeacon valuation allowance.
Current report
Operating activities - Net cash used for operating activities was $23.8 million, compared to cash provided of $37.1 million in the prior year, representing a year-over-year decline of $60.9 million. This decrease was primarily driven by a $50.8 million change in inventory and accounts payable. The shift reflects higher inventory values due to increased tariffs and the acceleration of material inventory purchases in the first quarter of 2025. These early purchases, combined with lower sales, led to a slowdown in inventory turnover. As a result, fewer inventory-related purchases were made in the second quarter, contributing to a decrease in accounts payable and further impacting operating cash flow due to the timing difference between inventory buildup and supplier payment obligations.
Removed paragraphs (4)
Previous report
Revenue - Revenue increased $5.1 million, or 4.0%, to $133.4 million compared to $128.3 million in the prior year. The revenue growth reflected favorable product mix and increased volume, partially offset by pricing and foreign currency. In the Company’s North America Consumer markets, revenue increased driven by growth in the U.S. market. In the Company’s Global Commercial market, revenue decreased slightly due to softness in international markets. HealthBeacon contributed $1.5 million in revenue for the three months ended March 31, 2025.
Previous report
Gross profit - As a percentage of revenue, gross profit margin increased to 24.6% compared to 23.4% in the prior year primarily due to favorable product mix, including the addition of HealthBeacon which operates at a significantly higher gross margin.
Previous report
Income tax expense (benefit) - The effective tax rate was 28.8% and 8.6% for three months ended March 31, 2025 and 2024, respectively. The higher effective tax rate in the first quarter of 2025 reflects the shift from a loss in the first quarter of 2024 to profit in the first quarter of 2025, coupled with the exclusion of the foreign losses of HealthBeacon in both periods requiring a full valuation allowance for which no benefit can be recognized. Excluding these impacts, the Company’s effective tax rate remains consistent.
Previous report
Operating activities - Net cash provided by operating activities was $6.6 million, compared to $19.7 million in the prior year. Net working capital provided cash of $16.3 million in 2025 compared to cash provided of $33.5 million in 2024. Cash provided by trade receivables decreased to $34.9 million in 2025 from $46.2 million in the prior year. The decrease is primarily related to improvements in trade receivable collections that benefited the prior year. Net inventory and accounts payable represented a use of cash of $18.6 million in 2025, up from $12.7 million in the prior year, driven by a material level of inventory pulled forward in the current period ahead of uncertainty related to tariff impacts.
Reworded paragraphs (8)
Previous wording
First Quarter of 2025 Compared with First Quarter of 2024
Current wording
Second Quarter of 2025 Compared with Second Quarter of 2024
Previous wording
Selling, general and administrative expenses (SG&A) -Selling, general and administrative expenses decreased by $0.6 million compared to the first quarter of 2024. The decrease was primarily driven by HealthBeacon acquisition expenses that did not recur in 2025.
Current wording
Selling, general and administrative expenses (SG&A) - Selling, general and administrative expenses decreased by $1.3 million compared to the second quarter of 2024. The decrease was primarily driven by lower incentive related personnel costs, partially offset by a one-time severance charge from restructuring actions taken by management to deleverage its cost structure.
Previous wording
Interest (income) expense, net- The Company had net interest income of $0.1 million compared to net interest expense of $0.2 million in the prior year, primarily due to investment of increased cash on hand in the first quarter of 2025.
Current wording
Interest (income) expense, net - The Company had net interest expense of $0.1 million for both the three months ended June 30, 2025 and June 30, 2024.
Previous wording
Other (income) expense, net- Other (income) expense, net includes currency gains of $0.3 million in the current year compared to currency losses of $0.1 million in the prior year.
Current wording
Other (income) expense, net - Other (income) expense, net increased by $1.4 million to $0.3 million of income for the six months ended June 30, 2025 driven by currency gains of $0.6 million in the current year compared to currency losses of $0.7 million in the prior year.
Previous wording
Investing activities - Net cash used for investing activities in 2025 decreased $6.2 million compared to 2024 related primarily to the 2024 acquisition of HealthBeacon partially offset by the extinguishment of our secured loan to HealthBeacon in the first quarter of 2024, neither of which recurred in the first quarter of 2025.
Current wording
Investing activities - Net cash used for investing activities in 2025 decreased $5.9 million compared to 2024. The 2024 period included the acquisition of HealthBeacon partially offset by the extinguishment of our secured loan to HealthBeacon in the first half of 2024, neither of which recurred in the first half of 2025.
Previous wording
Financing activities - Net cash used for financing activities was $5.0 million in 2025 compared to net cash used for financing activities of $2.1 million in 2024. The change is due to increased purchases of treasury stock in the first quarter of 2025.
Current wording
Financing activities - Net cash used for financing activities was $10.5 million in 2025 compared to net cash used for financing activities of $7.7 million in 2024. The change is due to an increase in share repurchases in the first six months of 2025.
Previous wording
HBB does not expect to make voluntary repayments within the next twelve months under the HBB Facility as the rate of return to invest excess cash exceeds the average interest rate of the HBB Facility. A material decrease in interest rates could cause HBB to re-evaluate. The obligations under the HBB Facility are secured by all of HBB’s U.S. assets. As of March 31, 2025, the borrowing base under the HBB Facility was $122.6 million and borrowings outstanding were $50.0 million. As of March 31, 2025, the excess availability under the HBB Facility was $72.6 million.
Current wording
HBB does not expect to make voluntary repayments within the next twelve months under the HBB Facility as the rate of return to invest excess cash exceeds the average interest rate of the HBB Facility. A material decrease in interest rates could cause HBB to re-evaluate. The obligations under the HBB Facility are secured by all of HBB’s U.S. assets. As of June 30, 2025, the borrowing base under the HBB Facility was $95.4 million and borrowings outstanding were $50.0 million. As of June 30, 2025, the Excess Availability under the HBB Facility was $45.4 million.
Previous wording
The maximum availability under the HBB Facility is governed by a borrowing base derived from advance rates against eligible trade receivables and inventory of HBB. As of March 31, 2025, interest on outstanding loans under the HBB Facility accrues at a per annum rate equal to, at HBB’s option, either Term Secured Overnight Financing Rate (SOFR) (as defined in the HBB Facility) plus 1.65% or the Base Rate(as defined in the HBB Facility) plus 0.00%. As of March 31, 2025, the HBB Facility requires a fee of 0.20% per annum on the unused commitment there under. The weighted average interest rate applicable to the HBB Facility for thethree months ended March 31, 2025 was 3.23% (after giving effect to the interest rate swap agreements described below).
Current wording
The maximum availability under the HBB Facility is governed by a borrowing base derived from advance rates against eligible trade receivables and inventory of HBB. As of June 30, 2025, interest on outstanding loans under the HBB Facility accrues at a per annum rate equal to, at HBB’s option, either Term Secured Overnight Financing Rate (SOFR) (as defined in the HBB Facility) plus 1.65% or the Base Rate(as defined in the HBB Facility) plus 0.00%. As of June 30, 2025, the HBB Facility requires a fee of 0.20% per annum on the unused commitment there under. The weighted average interest rate applicable to the HBB Facility for thesix months ended June 30, 2025 was 3.26% (after giving effect to the interest rate swap agreements described below).
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The following table identifies the components of the change in revenue: