HAMILTON BEACH BRANDS HOLDING COMPANY ANNOUNCES SECOND QUARTER 2025 RESULTS

, /PRNewswire/ -- Hamilton Beach Brands Holding Company (NYSE: HBB) (The Company) today announced results for the second quarter of 2025. Second Quarter 2025 Overview Revenue declined 18.2% to $127.8 million compared to $156.2 million Gross margin increased 160 basis points to 27.5% compared to 25.9% Operating profit decreased to $5.9 million compared to $10.0 million Total debt was $50.0 million for both periods; Net debt was $38.7 million compared to $12.8 million "The second quarter presented challenges as significant trade disruptions from new tariff measures impacted the broader industry," said R. Scott Tidey, President and Chief Executive Officer. "Our team responded swiftly with strategic actions, including accelerating our manufacturing diversification, implementing select price increases, and reducing our fixed cost base. While the unprecedented macroeconomic headwinds pressured sales, we were able to lessen the impact on profitability through 160 basis points of gross profit expansion driven by a favorable shift in customer mix including our higher-margin Commercial and Health businesses. Based on our decisive actions to address rapidly changing market conditions, combined with the strength of our brand portfolio, upcoming product launches and new retail placements, we believe we are well positioned to navigate the current environment and emerge with our leadership position intact." Results of the Second Quarter 2025 Compared to the Second Quarter 2024 Total revenue declined $28.5 million, or 18.2%, to $127.8 million compared to $156.2 million. 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. Gross profit was $35.1 million, or 27.5% of total revenue, compared to $40.5 million, or 25.9% of total revenue. The increase in gross profit margin was 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. Selling, general and administrative expenses (SG&A) decreased to $29.1 million compared to $30.4 million. 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. Operating profit was $5.9 million compared to $10.0 million. Income tax expense was $1.6 million compared to $3.0 million in the prior year period. Net income was $4.5 million, or $0.33 per diluted share, compared to $6.0 million, or $0.42 per diluted share. Cash Flow and DebtFor the six months ended June 30, 2025, net cash used in operating activities was $23.8 million, down $60.9 million from net cash provided of $37.1 million in the prior year due primarily to a $50.8 million impact from changes in inventory and accounts payable, driven by higher inventory from increased tariffs and accelerated purchases in Q1 2025. Slower sales reduced inventory turnover, while fewer purchases in Q2 lowered accounts payable, further affecting cash flow due to timing differences between inventory buildup and supplier payments. The Company returned value to shareholders during the quarter through share repurchases and the quarterly dividend. The Company repurchased 215,297 shares of its Class A common stock at prevailing market prices for an aggregate purchase amount of $4.0 million and paid $1.6 million in dividends during the second quarter of 2025. On June 30, 2025, net debt was $38.7 million compared to net debt of $12.8 million on June 30, 2024. Net debt is defined as total debt minus cash and cash equivalents and highly liquid short-term investments. OutlookAs a result of the increased uncertainty caused by higher tariffs recently imposed by the United States, particularly in China, the Company believes it is prudent to maintain its recently implemented practice of not providing specific guidance on its business outlook. Conference CallThe Company will conduct an earnings conference call and webcast on Wednesday, July 30, 2025, at 4:30 p.m. Eastern time. The call may be accessed by dialing 888-350-3452 (toll free), International 646-960-0369. Conference ID: 1809480. The conference call will also be webcast live on the Company's Investor Relations website at www.hamiltonbeachbrands.com. An archive of the webcast will be available on the website. About Hamilton Beach Brands Holding CompanyHamilton Beach Brands Holding Company is a leading designer, marketer, and distributor of a wide range of brand name small electric household and specialty housewares appliances, and commercial products for restaurants, fast food chains, bars, and hotels, and is a provider of connected devices and software for healthcare management. The Company's owned consumer brands include Hamilton Beach®, Proctor Silex®, Hamilton Beach Professional®, Weston®, and TrueAir®. The Company's owned commercial brands include Hamilton Beach Commercial® and Proctor Silex Commercial®. The Company licenses the brands for CHI® premium garment care products, CloroxTM home appliances, and Brita HubTM countertop electric water filtration appliances. The Company has exclusive multiyear agreements to design, sell, market, and distribute Bartesian® cocktail makers and Numilk® plant-based milk makers. The Company's Hamilton Beach Health subsidiary is focused on expanding the Company's participation in the home health and medical markets. In 2024, Hamilton Beach Health acquired HealthBeacon, a medical technology firm that specializes in developing connected devices, and strategic partner of the Company since 2021. For more information about Hamilton Beach Brands Holding Company, visit www.hamiltonbeachbrands.com. Forward-Looking StatementsThe statements contained in this news release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Such risks and uncertainties include, without limitation: (1) uncertain or unfavorable global economic conditions and impacts from tariffs, inflation, rising interest rates, recessions or economic slowdowns; (2) changes in costs, including transportation costs and tariffs, of sourced products; (3) the Company's ability to source and ship products to meet anticipated demand; (4) changes in or unavailability of quality or cost effective suppliers; (5) the Company's ability to successfully manage constraints throughout the global transportation supply chain; (6) delays in delivery of sourced products; (7) changes in the sales prices, product mix or levels of consumer purchases of small electric and specialty housewares appliances; (8) changes in consumer retail and credit markets, including the increasing volume of transactions made through third-party internet sellers; (9) bankruptcy of or loss of major retail customers or suppliers; (10) exchange rate fluctuations, changes in the import tariffs and monetary policies and other changes in the regulatory climate in the countries in which the Company operates or buys and/or sells products; (11) the impact of tariffs on customer purchasing patterns; (12) customer acceptance of changes in costs of or delays in the development of new products; (13) product liability, regulatory actions or other litigation, warranty claims or returns of products; (14) increased competition, including consolidation within the industry; (15) changes in customers' inventory management strategies; (16) shifts in consumer shopping patterns, gasoline prices, weather conditions, the level of consumer confidence and disposable income as a result of economic conditions, unemployment rates or other events or conditions that may adversely affect the level of customer purchases of the Company's products; (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation; (18) the Company's ability to identify, acquire or develop, and successfully integrate, new businesses or new product lines; and (19) other risk factors, including those described in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2024. Furthermore, the future impact of unfavorable economic conditions, including inflation, changing interest rates, availability of capital markets and consumer spending rates remains uncertain. In uncertain economic environments, we cannot predict whether or when such circumstances may improve or worsen, or what impact, if any, such circumstances could have on our business, results of operations, cash flows and financial position. ***** HAMILTON BEACH BRANDS HOLDING COMPANYCONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) THREE MONTHS ENDED JUNE 30 SIX MONTHS ENDED JUNE 30 2025 2024 2025 2024 (In thousands, except pershare data) (In thousands, except pershare data) Revenue $ 127,770 $ 156,240 $ 261,142 $ 284,517 Cost of sales 92,639 115,744 193,240 213,967 Gross profit 35,131 40,496 67,902 70,550 Selling, general and administrative expenses 29,105 30,397 59,485 61,344 Amortization of intangible assets 78 143 156 193 Operating profit (loss) 5,948 9,956 8,261 9,013 Interest (income) expense, net 121 115 49 271 Other (income) expense, net (182) 883 (331) 1,056 Income (loss) before income taxes 6,009 8,958 8,543 7,686 Income tax expense (benefit) 1,556 2,972 2,285 2,862 Net income (loss) $ 4,453 $ 5,986 $ 6,258 $ 4,824 Basic and diluted earnings (loss) per share $ 0.33 $ 0.42 $ 0.46 $ 0.34 Basic weighted average shares outstanding 13,516 14,113 13,642 14,137 Diluted weighted average shares outstanding 13,534 14,127 13,661 14,152 HAMILTON BEACH BRANDS HOLDING COMPANYCONSOLIDATED BALANCE SHEETS(Unaudited) JUNE 302025 DECEMBER 312024 JUNE 302024 (In thousands) Assets Current assets Cash and cash equivalents $ 11,338 $ 45,644 $ 37,213 Trade receivables, net 74,093 117,068 85,038 Inventory 160,357 124,904 130,197 Prepaid expenses and other current assets 14,318 16,103 12,544 Total current assets 260,106 303,719 264,992 Property, plant and equipment, net 33,464 34,401 35,395 Right-of-use lease assets 36,956 36,049 37,486 Goodwill 7,099 7,099 7,099 Other intangible assets, net 1,945 2,101 2,210 Deferred income taxes 7,513 6,693 2,005 Deferred costs 2,737 16,156 14,523 Other non-current assets 13,984 8,849 6,186 Total assets $ 363,804 $ 415,067 $ 369,896 Liabilities and stockholders' equity Current liabilities Accounts payable $ 76,275 $ 104,161 $ 96,452 Revolving credit agreements — — 50,000 Accrued compensation 7,127 18,792 8,244 Accrued product returns 7,072 7,876 6,338 Lease liabilities 5,568 5,193 5,838 Other current liabilities 9,450 18,098 10,773 Total current liabilities 105,492 154,120 177,645 Revolving credit agreements 50,000 50,000 — Lease liabilities, non-current 38,988 39,008 40,489 Other long-term liabilities 5,349 6,036 6,030 Total liabilities 199,829 249,164 224,164 Stockholders' equity Preferred stock, par value $0.01 per share — — — Class A Common stock 118 115 114 Class B Common stock 36 36 36 Capital in excess of par value 78,673 76,668 73,483 Treasury stock (33,549) (26,202) (16,552) Retained earnings 126,919 123,863 101,078 Accumulated other comprehensive loss (8,222) (8,577) (12,427) Total stockholders' equity 163,975 165,903 145,732 Total liabilities and stockholders' equity $ 363,804 $ 415,067 $ 369,896 HAMILTON BEACH BRANDS HOLDING COMPANYCONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) SIX MONTHS ENDED JUNE 30 2025 2024 (In thousands) Operating activities Net income (loss) $ 6,258 $ 4,824 Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization 2,518 2,628 Stock compensation expense 2,008 3,084 Other (1,294) 1,610 Net changes in operating assets and liabilities: Trade receivables 44,391 49,582 Inventory (33,599) (7,657) Other assets 10,856 (2,622) Accounts payable (27,950) (3,076) Other liabilities (26,961) (11,302) Net cash provided by (used for) operating activities (23,773) 37,071 Investing activities Expenditures for property, plant and equipment (1,466) (1,540) Acquisition of business, net of cash acquired — (7,412) Issuance of secured loan — (600) Repayment of secured loan — 2,205 Net cash provided by (used for) investing activities (1,466) (7,347) Financing activities Cash dividends paid (3,202) (3,144) Purchase of treasury stock (7,347) (4,539) Net cash provided by (used for) financing activities (10,549) (7,683) Effect of exchange rate changes on cash, cash equivalents and restricted cash 602 (252) Cash, cash equivalents and restricted cash Increase (decrease) for the period (35,186) 21,789 Balance at the beginning of the period 46,524 16,379 Balance at the end of the period $ 11,338 $ 38,168 Reconciliation of cash, cash equivalents and restricted cash Cash and cash equivalents $ 11,338 $ 37,213 Restricted cash included in prepaid expenses and other current assets — 50 Restricted cash included in other non-current assets — 905 Total cash, cash equivalents and restricted cash $ 11,338 $ 38,168 Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures: Net (Cash) Debt Net (cash) debt is a non-GAAP financial measure that management uses in evaluating financial position. Net (cash) debt is defined as long-term debt less cash and cash equivalents and highly liquid short-term investments. Management believes net (cash) debt is an important measure of the Company's financial position due to the amount of cash and cash equivalents on hand. The presentation of this measure is not intended to be considered in isolation from, as a substitute for, or as superior to, the financial information prepared and presented in accordance with U.S. GAAP. The presentation of this measure may be different from non-GAAP financial measures used by other companies. A reconciliation of this measure to its most directly comparable GAAP measure is provided in the table below: JUNE 302025 DECEMBER 312024 JUNE 302024 (In millions) Total debt $ 50.0 $ 50.0 $ 50.0 Less: cash and cash equivalents $ (11.3) $ (45.6) $ (37.2) Less: highly liquid short-term investments (1) $ — $ (5.0) $ — Net (cash) debt $ 38.7 $ (0.6) $ 12.8 (1) Investments with original maturities greater than 3 months but less than one year are included in prepaid expenses and other current assets on the balance sheet. If the original maturity is 3 months or less it is included within cash and cash equivalents. SOURCE Hamilton Beach Brands Holding Company WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

HAMILTON BEACH BRANDS HOLDING COMPANY ANNOUNCES SECOND QUARTER 2025 RESULTS

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