Hamilton Beach Reports Decline in Q2 and First Half 2025 Financial Performance

Hamilton Beach Brands Holding Company reported a decline in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the three months ended June 30, 2025, the company generated revenue of $127.8 million, a decrease of 18.2% from $156.2 million in the same period of 2024. The decline was attributed primarily to reduced volumes in the U.S. Consumer business, as retailers paused purchases to assess inventory levels amid new tariffs implemented in April 2025. The company's gross profit for the quarter was $35.1 million, resulting in a gross profit margin of 27.5%, up from 25.9% a year earlier, due to a favorable shift in customer mix and increased sales from higher-margin segments.

In the first half of 2025, Hamilton Beach reported total revenue of $261.1 million, down 8.2% from $284.5 million in the prior year. The company’s net income for the second quarter was $4.5 million, a decrease of 25.6% compared to $6.0 million in the same quarter of 2024. For the first six months, net income increased by 29.7% to $6.3 million, compared to $4.8 million in the previous year. The effective tax rate for the second quarter was 25.9%, down from 33.2% in 2024, reflecting a reduction in non-deductible expenses.

Strategically, Hamilton Beach completed the acquisition of HealthBeacon, a medical technology firm, for approximately $7.5 million in February 2024. The integration of HealthBeacon is ongoing, and its results are included in the company’s financials for the current reporting period. The Health segment contributed $1.7 million in revenue for the second quarter of 2025, compared to $0.8 million in the same period of 2024. The company continues to focus on expanding its product offerings and enhancing its market presence, particularly in the health and commercial sectors.

Operationally, Hamilton Beach's selling, general, and administrative expenses decreased to $29.1 million in the second quarter, down from $30.4 million a year prior, primarily due to lower personnel costs. The company reported a significant change in cash flow, with net cash used for operating activities amounting to $23.8 million, a decline from cash provided of $37.1 million in the previous year. This shift was largely driven by changes in inventory and accounts payable, reflecting higher inventory values due to tariffs and a slowdown in inventory turnover.

Looking ahead, Hamilton Beach anticipates that revenue will typically increase in the second half of the year, peaking during the holiday season. However, the company acknowledges uncertainties related to consumer demand and the ongoing impact of tariffs on purchasing patterns. The company maintains a $125 million senior secured revolving credit facility, which it believes will provide sufficient liquidity to meet operational needs in the coming year.