Hamilton Beach Brands Q2 Earnings Call Highlights

Second-quarter results improved sharply: Revenue rose 11.6% to $142.6 million, while net income increased to $33.7 million from $4.5 million a year earlier. Results were significantly boosted by a $36.5 million refund of IEEPA tariffs, although management said underlying operations also improved. Growth initiatives are expanding across multiple businesses: Hamilton Beach plans new single-serve coffee platforms, premium products and commercial appliances, while Hamilton Beach Health reported its fourth consecutive quarter of profitable growth and is targeting 50% sales growth this year. Management reaffirmed its outlook: 2026 revenue is expected to grow at a mid-single-digit rate, excluding tariff refunds, while the projected decline in operating profit improved to a high-single-digit percentage. The company ended June with $51.5 million in net cash and sharply lower inventory.

Hamilton Beach Brands NYSE: HBB reported higher second-quarter revenue and operating profit, with results aided by a $36.5 million refund of tariffs imposed under the International Emergency Economic Powers Act, while management said underlying operating performance also improved. Revenue for the second quarter of 2026 rose 11.6% to $142.6 million from $127.8 million a year earlier. President and CEO Scott Tidey said the increase was primarily driven by a recovery in U.S. consumer volumes after several retailers had paused purchases in the second quarter of 2025 while reassessing inventory levels amid the tariff environment.

Net income totaled $33.7 million, or $2.49 per diluted share, compared with $4.5 million, or $0.33 per diluted share, in the prior-year quarter. Operating profit rose to $43.2 million from $5.9 million.

Senior Vice President, Chief Financial Officer and Treasurer Sally Cunningham said gross profit increased to $77.5 million from $35.1 million, and gross margin expanded to 54.3% from 27.5%. The reported improvement was driven principally by the $36.5 million IEEPA tariff refund received during the quarter. Cunningham said approximately 260 basis points of the year-over-year margin increase also reflected sales of inventory priced in anticipation of IEEPA tariffs that were later eliminated following the Supreme Court’s February ruling. Excluding those benefits, second-quarter gross margin was 26.1%, which Cunningham said was in line with the company’s expectations. Tidey said Hamilton Beach also benefited from inventory in its foreign trade zone that was not subject to additional tariff charges, alongside sourcing diversification and selective price increases. Selling, general and administrative expense increased to $34.3 million from $29.2 million. The increase included higher performance-based incentive expense and $1.4 million in accelerated depreciation related to the replacement of the company’s legacy enterprise resource planning system.

Tidey said the company remains on track to introduce two new single-serve coffee platforms in the second half of 2026. It has also gained shelf space at two wholesale membership clubs and is working with a new advertising agency to increase digital marketing activity beginning in the second half. In premium products, Hamilton Beach launched Lotus Professional more broadly during the quarter and plans to launch Lotus Signature in the fourth quarter and early next year. The company also expanded distribution and online assortment for its CHI-branded irons and garment steamers. Its commercial business is preparing to place the Eclipse Blender with a national...