| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 121.96 | 8.6% |
| Total Income | 121.96 | 8.6% |
| Expenditure | 117.00 | 10.7% |
| PBT | 4.95 | 95.7% |
| Net Profit | 3.54 | 95.6% |
| OPM | 4.07% | 2.34pp |
| NPM | 2.90% | 1.55pp |
| EPS | 0.26 | 100.0% |
Hamilton Beach Brands Reports Q1 2026 Results; Gross Margin Expands 510 bps
07 May 2026 · 7 May, 1:39 am
Summary
Hamilton Beach Brands Holding Company reported a decrease in revenue of 8.6% to $122.0 million for the first quarter of 2026. However, the company experienced strong margin gains, with gross margin increasing by 510 basis points to 29.7%. Operating profit also saw a significant increase of 115% to $5.0 million. The company is reiterating its financial targets for 2026 despite recent downturn in consumer sentiment and heightened macroeconomic uncertainty.
Key Highlights
- 1
Hamilton Beach Brands Holding Company's revenue declined by 8.6% to $122.0 million in the first quarter of 2026 compared to $133.4 million in the first quarter of 2025.
- 2
Gross margin increased by 510 basis points to 29.7% in the first quarter of 2026, compared to 24.6% in the prior year.
- 3
Operating profit increased by 115% to $5.0 million in the first quarter of 2026, compared to $2.3 million in the first quarter of 2025.
- 4
Diluted earnings per share was $0.26 in the first quarter of 2026, compared to $0.13 in the first quarter of 2025.
- 5
Net cash provided by operating activities was $3.3 million for the three months ended March 31, 2026, compared to $6.6 million for the three months ended March 31, 2025.
- 6
The company repurchased 55,413 shares of its Class A common stock for $0.9 million and paid $1.6 million in dividends during the first quarter of 2026.
- 7
Net debt was $2.6 million on March 31, 2026, compared to $1.7 million on March 31, 2025.
Management Comments
R. Scott Tidey
“We experienced strong margin gains in the first quarter that more than offset lower sales to deliver a meaningful improvement in profitability. The significant gross margin expansion reflects the benefits from both the foreign trade zone in our distribution center, which allowed us to immediately capitalize on the Supreme Court’s ruling on IEEPA tariffs, and the difference in timing between our price increases and the impact from higher costs. We are taking advantage of these temporary tailwinds and reinvesting the earnings upside in additional promotional programs to fuel increased demand. This is giving us confidence to reiterate our financial targets for 2026 despite the recent downturn in consumer sentiment and heightened macroeconomic uncertainty.”
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