Hamilton Beach Reports 4% Revenue Growth and Net Income Turnaround in Q1 2025

Hamilton Beach Brands Holding Company reported a revenue increase of 4.0% for the first quarter of 2025, reaching $133.4 million compared to $128.3 million in the same period of 2024. The company achieved a gross profit of $32.8 million, resulting in a gross profit margin of 24.6%, up from 23.4% a year earlier. This improvement was attributed to a favorable product mix, including contributions from the recently acquired HealthBeacon, which operates at a higher gross margin. The net income for the quarter was $1.8 million, a significant turnaround from a net loss of $1.2 million in the prior year, translating to earnings of $0.13 per share.

In terms of operational changes, Hamilton Beach completed the acquisition of HealthBeacon PLC on February 2, 2024, for approximately $7.5 million. This acquisition is expected to enhance the company's offerings in the health segment, which includes leasing connected devices and software for healthcare management. HealthBeacon contributed $1.5 million in revenue during the first quarter of 2025, reflecting its integration into Hamilton Beach's operations. The company has also restructured its reporting segments, now operating in two segments: Home and Commercial Products and Health.

The company’s selling, general, and administrative expenses decreased to $30.4 million from $30.9 million in the previous year, primarily due to the absence of acquisition-related expenses from HealthBeacon in 2025. Interest income improved to $0.1 million from a net interest expense of $0.2 million in the prior year, reflecting better cash management. Additionally, the company reported a net cash provided by operating activities of $6.6 million, a decrease from $19.7 million in the same quarter last year, largely due to changes in working capital dynamics.

Hamilton Beach's cash and cash equivalents increased to $48.3 million as of March 31, 2025, compared to $27.2 million a year earlier. The company has a $125 million senior secured revolving credit facility, which provides sufficient liquidity for its operational needs. The company’s effective tax rate for the quarter was 28.8%, a notable increase from 8.6% in the prior year, reflecting the shift from a loss to profit and the exclusion of foreign losses from HealthBeacon.

Looking ahead, Hamilton Beach anticipates continued revenue growth, particularly in the second half of the year, which typically sees increased sales due to the holiday season. The company is focused on integrating HealthBeacon into its operations and exploring opportunities for geographic expansion and product innovation. However, it remains cautious about potential impacts from global economic conditions, including tariffs and inflation, which could affect its supply chain and profitability.