Hamilton Beach Brands Holding Co
For the period ended Sep 30, 2025. Filed Nov 5, 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.
Sep 30, 2025 · Filed Nov 5, 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 2025-06-30; filed 2025-07-30.
0001709164-25-000037
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001709164-25-000065
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 44 previous paragraphs and 46 current paragraphs.
23 unchanged; 15 reworded; 8 added; 5 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 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 (8)
Current report
Revenue - Revenue decreased $23.9 million, or 15.2%, to $132.8 million compared to $156.7 million in the prior year. The revenue decline was primarily driven by lower volumes in the Company’s U.S. Consumer business, including a delay in orders from one large retailer for most of the third quarter as they assessed inventory levels and pricing in response to the tariffs implemented by the U.S. in April 2025. Partially offsetting this decline was revenue growth in the Commercial and Health businesses.
Current report
Gross profit - As a percentage of revenue, gross profit margin decreased to 21.1% compared to 28.0% in the prior year primarily due to the flow through of a one-time incremental tariff cost of $5.0 million, which negatively impacted margin by 370 basis points. Most of these costs were from a temporary spike in tariff rates on imports from China to 125%. Additionally, a delay between tariff related rising costs and pricing adjustments temporarily reduced our margins during the third quarter.
Current report
Interest (income) expense, net - Interest expense, net was $0.2 million for the three months ended September 30, 2025 compared to $0.1 million for the three months ended September 30, 2024.
Current report
Pension termination expense - During the third quarter of 2024, a one-time non-cash expense of $7.6 million was incurred in connection with the termination of the Company’s U.S. defined benefit pension plan related to the reclassification of historical unrecognized losses from Accumulated Other Comprehensive Income.
Current report
Other (income) expense, net - Other expense, net was $0.6 million for the three months ended September 30, 2025 compared to $0.3 million for the three months ended September 30, 2024.
Current report
Gross profit - As a percentage of revenue, gross profit margin decreased to 24.4% from 25.9% in the prior year primarily due to the flow through of a one-time incremental tariff cost of $5.0 million, which negatively impacted margin by 130 basis points. Most of these costs were from a temporary spike in tariff rates on imports from China to 125%.
Current report
Pension termination expense - During the third quarter of 2024, a one-time non-cash expense of $7.6 million was incurred in connection with the termination of the Company’s U.S. defined benefit pension plan related to the reclassification of historical unrecognized losses from Accumulated Other Comprehensive Income.
Current report
Operating activities - Net cash used for operating activities was $14.6 million, compared to cash provided of $35.2 million in the prior year, reflecting a $49.8 million decrease. The decline was primarily driven by a $27.5 million reduction in accounts payable due to lower purchasing activity from decreased sales volume and inventory turnover, as well as shorter payment terms with new suppliers under the Company’s China diversification initiatives. The decrease also reflects less non-cash expense adjustments to net income and changes in other assets and liabilities, primarily related to payment of income taxes and the use of pension surplus assets.
Removed paragraphs (5)
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Reworded paragraphs (15)
Previous wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon management’s current expectations and are subject to various uncertainties and changes in circumstances. Important factors that could cause actual results to differ materially from those described in these forward-looking statements are set forth below under the heading “Forward-Looking Statements.”
Current wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon management’s current expectations and are subject to various uncertainties and changes in circumstances. Important factors that could cause actual results to differ materially from those described in these forward-looking statements are set forth below under the heading “Forward-Looking Statements.” Accordingly, this Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the financial statements and Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Previous wording
Second Quarter of 2025 Compared with Second Quarter of 2024
Current wording
Third Quarter of 2025 Compared with Third Quarter of 2024
Previous wording
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 wording
Selling, general and administrative expenses (SG&A) - Selling, general and administrative expenses decreased by $8.2 million compared to the third quarter of 2024. The decrease was primarily driven by $6.8 million of lower personnel costs, including reduced stock-based compensation expense due to changes in stock price and benefits associated with the restructuring actions taken by management in the second quarter.
Previous wording
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 wording
Income tax expense (benefit) - The effective tax rate was 18.4% and 27.4% for the three months ended September 30, 2025 and 2024, respectively. The effective tax rate was lower for the three months ended September 30, 2025 due to an increase in foreign derived tax benefits, partially offset by a valuation allowance on a capital loss.
Previous wording
First Six Months of 2025 Compared with First Six Months of 2024
Current wording
First Nine Months of 2025 Compared with First Nine Months of 2024
Previous wording
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 wording
Revenue - Revenue decreased by $47.3 million, or 10.7%, to $393.9 million compared to $441.2 million in the prior year. The revenue decline was primarily driven by lower volumes in the Company’s U.S. Consumer business due to softness in the U.S. market and 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 retailers resumed buying in the second quarter, the pause impacted early third quarter sales, especially for one large retailer that delayed orders for most of the third quarter.
Previous 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.
Current wording
Selling, general and administrative expenses (SG&A) - Selling, general and administrative expenses decreased $10.0 million compared to 2024. The decrease was primarily driven by $8.6 million of lower personnel costs, including reduced stock-based compensation expense due to changes in stock price and benefits associated with the restructuring actions taken by management in the second quarter.
Previous 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.
Current wording
Interest (income) expense, net - Interest expense, net was $0.3 million for both the nine months ended September 30, 2025 and 2024.
Previous 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.
Current wording
Other (income) expense, net - Other expense, net decreased by $1.1 million for the nine months ended September 30, 2025 driven by currency gains of $0.8 million in the current year compared to currency losses of $0.8 million in the prior year.
Previous wording
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 wording
Income tax expense (benefit) - The effective tax rate was 25.1% compared to 34.7% in the prior year. The effective tax rate was lower for the nine months ended September 30, 2025 due to an increase in foreign derived tax benefits and a reduction in foreign losses subject to a valuation allowance, partially offset by a valuation allowance on a capital loss.
Previous 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.
Current wording
Investing activities - Net cash used for investing activities in 2025 decreased $10.5 million compared to 2024. The 2024 period included the HealthBeacon acquisition and a U.S. Treasury bill investment, partially offset by the extinguishment of our secured loan to HealthBeacon. None of these activities recurred in the first nine months of 2025.
Previous 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.
Current wording
Financing activities - Net cash used for financing activities was $12.7 million in 2025 compared to net cash used for financing activities of $14.6 million in 2024. The change is due to a decrease in share repurchases during the first nine 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 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.
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 September 30, 2025, the borrowing base under the HBB Facility was $116.1 million and borrowings outstanding were $50.0 million. As of September 30, 2025, the Excess Availability under the HBB Facility was $66.1 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 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).
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 September 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 September 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 thenine months ended September 30, 2025 was 3.26% (after giving effect to the interest rate swap agreements described below).
Previous wording
The Company has an arrangement with a financial institution to sell certain U.S. trade receivables of a single customer on a non-recourse basis. See Note 2 of the unaudited consolidated financial statements.
Current wording
The Company has an arrangement with a financial institution to sell certain U.S. trade receivables of a single customer on a non-recourse basis. See Note 2 - Transfer of Financial Assets included in the unaudited consolidated financial statements contained in Part I of this Form 10-Q.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
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.