# Hamilton Beach Brands Holding Co (HBB)

Informational only - not investment advice.

CIK: 0001709164
SIC: 3634 Electric Housewares & Fans
SIC breadcrumb: [Manufacturing](/division/D/) > [Electronic And Other Electrical Equipment And Components, Except Computer Equipment](/major-group/36/) > [SIC 3634 Electric Housewares & Fans](/industry/3634/)
Latest 10-K filed: 2026-02-25
SEC page: https://www.sec.gov/edgar/browse/?CIK=1709164
Filing source: https://www.sec.gov/Archives/edgar/data/1709164/000170916426000037/hbb-20251231.htm

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 606852000 | USD | 2025 | 2026-02-25 |
| Net income | 26455000 | USD | 2025 | 2026-02-25 |
| Assets | 397624000 | USD | 2025 | 2026-02-25 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001709164.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 767,862,000 | 745,357,000 | 740,749,000 | 743,179,000 |  |  |  | 640,949,000 | 625,625,000 | 654,693,000 | 606,852,000 |
| Net income |  | 26,179,000 | 15,884,000 | 17,698,000 | -13,507,000 | 46,258,000 | 21,306,000 | 25,267,000 | 25,242,000 | 30,759,000 | 26,455,000 |
| Operating income |  | 43,374,000 | 37,956,000 | 33,550,000 | 26,794,000 | 37,415,000 | 31,539,000 | 38,794,000 | 35,081,000 | 43,202,000 | 36,579,000 |
| Gross profit |  | 193,771,000 | 136,117,000 | 139,052,000 | 128,552,000 | 138,654,000 | 136,502,000 | 129,114,000 | 143,676,000 | 170,207,000 | 156,153,000 |
| Diluted EPS |  | 1.91 | 1.31 | 1.29 | -0.99 | 3.37 | 1.53 | 1.81 | 1.80 | 2.20 | 1.95 |
| Operating cash flow | 26,488,000 | 62,563,000 | 33,440,000 | 11,824,000 |  |  | 17,857,000 | -3,418,000 | 88,636,000 | 65,415,000 | 13,813,000 |
| Capital expenditures |  | 6,002,000 | 6,198,000 | 7,759,000 | 4,122,000 | 3,312,000 | 11,844,000 | 2,279,000 | 3,419,000 | 3,193,000 | 2,777,000 |
| Dividends paid |  | 42,000,000 | 38,000,000 | 4,658,000 | 4,851,000 | 5,053,000 | 5,468,000 | 5,782,000 | 6,082,000 | 6,294,000 | 6,430,000 |
| Share buybacks |  |  | 0.00 | 0.00 | 5,960,000 | 0.00 | 0.00 | 2,979,000 | 3,074,000 | 14,106,000 | 8,987,000 |
| Assets |  | 310,833,000 | 326,233,000 | 321,418,000 | 288,663,000 | 391,168,000 | 382,504,000 | 388,950,000 | 384,702,000 | 415,067,000 | 397,624,000 |
| Liabilities |  | 245,565,000 | 279,825,000 | 264,600,000 | 252,397,000 | 311,063,000 | 280,225,000 | 264,416,000 | 237,435,000 | 249,164,000 | 214,779,000 |
| Stockholders' equity |  | 65,268,000 | 42,026,000 | 56,818,000 | 36,266,000 | 80,105,000 | 102,279,000 | 124,534,000 | 147,267,000 | 165,903,000 | 182,845,000 |
| Cash and cash equivalents |  | 11,340,000 | 10,906,000 | 4,420,000 | 2,142,000 | 2,415,000 | 1,125,000 | 928,000 | 15,370,000 | 45,644,000 | 47,313,000 |
| Free cash flow |  | 56,561,000 | 27,242,000 | 4,065,000 |  |  | 6,013,000 | -5,697,000 | 85,217,000 | 62,222,000 | 11,036,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 3.51% | 2.14% | 2.38% |  |  |  | 3.94% | 4.03% | 4.70% | 4.36% |
| Operating margin |  | 5.82% | 5.12% | 4.51% |  |  |  | 6.05% | 5.61% | 6.60% | 6.03% |
| Return on equity |  | 40.11% | 37.80% | 31.15% | -37.24% | 57.75% | 20.83% | 20.29% | 17.14% | 18.54% | 14.47% |
| Return on assets |  | 8.42% | 4.87% | 5.51% | -4.68% | 11.83% | 5.57% | 6.50% | 6.56% | 7.41% | 6.65% |
| Liabilities / equity |  | 3.76 | 6.66 | 4.66 | 6.96 | 3.88 | 2.74 | 2.12 | 1.61 | 1.50 | 1.17 |
| Current ratio |  | 1.33 | 1.16 | 1.31 | 1.18 | 1.69 | 1.94 | 2.80 | 2.05 | 1.97 | 2.47 |

## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001709164.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2017-Q3 | 2017-09-30 | 181,713,000 |  |  | reported discrete quarter |
| 2017-Q4 | 2017-12-31 | 265,778,000 |  |  | derived Q4 = FY annual - nine-month YTD |
| 2018-Q1 | 2018-03-31 | 146,633,000 |  |  | reported discrete quarter |
| 2018-Q2 | 2018-06-30 | 157,941,000 |  |  | reported discrete quarter |
| 2022-Q1 | 2022-03-31 |  |  | 0.51 | reported discrete quarter |
| 2022-Q2 | 2022-06-30 |  |  | 0.36 | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  |  | 0.43 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  | -4,777,000 | -0.34 | reported discrete quarter |
| 2023-Q2 | 2023-03-31 |  | -4,777,000 |  | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.01 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 110,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 |  |  | 0.74 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 |  | 19,569,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 128,277,000 | -1,162,000 | -0.08 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | -1,162,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 156,240,000 |  | 0.42 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | 5,986,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 156,667,000 |  | 0.14 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 213,509,000 | 23,999,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q2 | 2025-03-31 |  | 1,805,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 127,770,000 |  | 0.33 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 4,453,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 132,779,000 |  | 0.12 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 212,931,000 | 18,544,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 121,963,000 | 3,539,000 | 0.26 | reported discrete quarter |

## Macro Cross-References
- [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- [UNRATE](/indicator/UNRATE/): Unemployment Rate
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit
- [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food
- [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy
- [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter
- [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index
- [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate
- [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate
- [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio
- [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed
- [CE16OV](/indicator/CE16OV/): Employment Level
- [ICSA](/indicator/ICSA/): Initial Claims
- [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm
- [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period
- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade
- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income
- [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate
- [M2SL](/indicator/M2SL/): M2
- [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance
- [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States
- [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States
- [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States
- [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States
- [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States
- [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized
- [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized
- [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks
- [GDP](/indicator/GDP/): Gross Domestic Product
- [GPDI](/indicator/GPDI/): Gross Private Domestic Investment
- [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment
- [PCEC](/indicator/PCEC/): Personal Consumption Expenditures
- [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services
- [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt
- [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit
- [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts
- [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures
- [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing
- [USCONS](/indicator/USCONS/): All Employees, Construction
- [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade
- [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities
- [USGOVT](/indicator/USGOVT/): All Employees, Government
- [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private
- [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods
- [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- [BUSINV](/indicator/BUSINV/): Total Business Inventories
- [EXPGS](/indicator/EXPGS/): Exports of Goods and Services
- [IMPGS](/indicator/IMPGS/): Imports of Goods and Services
- [IR](/indicator/IR/): Import Price Index (End Use): All Commodities
- [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1709164/000170916426000067/hbb-20260331.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-05-06
Report date: 2026-03-31

Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of Operations

(Dollars in thousands, except as noted and per share data)

Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon management’s current expectations and are subject to various uncertainties and changes in circumstances. Important factors that could cause actual results to differ materially from those described in these forward-looking statements are set forth below under the heading “Forward-Looking Statements.” Accordingly, this Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the financial statements and Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Our operations are managed and reported in two operating segments, each of which is a reportable segment for financial reporting purposes: (1) Home and Commercial Products and (2) Health.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

For a summary of the Company’s critical accounting policies, refer to “Part II - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as there have been no material changes from those disclosed in the Annual Report.

13

Table of Contents

RESULTS OF OPERATIONS

The market for small electric household and specialty housewares appliances is fairly steady throughout the year; however, the Company’s revenue typically increases during the second half of the year and peaks during the fourth quarter due to the fall holiday-selling season.

First Quarter of 2026 Compared with First Quarter of 2025

THREE MONTHS ENDED

MARCH 31

Increase / (Decrease)

2026

% of Revenue

2025

% of Revenue

$ Change

% Change

Revenue

$

121,963 

100.0 

%

$

133,372 

100.0 

%

$

(11,409)

(8.6)

%

Cost of sales

85,771 

70.3 

%

100,601 

75.4 

%

(14,830)

(14.7)

%

Gross profit

36,192 

29.7 

%

32,771 

24.6 

%

3,421 

10.4 

%

Selling, general and administrative expenses

31,224 

25.6 

%

30,458 

22.8 

%

766 

2.5 

%

Operating profit (loss)

4,968 

4.1 

%

2,313 

1.7 

%

2,655 

114.8 

%

Interest (income) expense, net

(78)

(0.1)

%

(72)

(0.1)

%

(6)

8.3 

%

Other (income) expense, net

94 

0.1 

%

(149)

(0.1)

%

243 

(163.1)

%

Income (loss) before income taxes

4,952 

4.1 

%

2,534 

1.9 

%

2,418 

95.4 

%

Income tax expense (benefit)

1,413 

1.2 

%

729 

0.5 

%

684 

93.8 

%

Net income (loss)

$

3,539 

2.9 

%

$

1,805 

1.4 

%

$

1,734 

96.1 

%

Effective income tax rate

28.5 

%

28.8 

%

The following table identifies the components of the change in revenue:

Revenue

2025

$

133,372 

Increase (decrease) from:

Unit volume and product mix

(18,121)

Average sales price

4,651 

Foreign currency

2,061 

2026

$

121,963 

Revenue - Revenue decreased $11.4 million, or 8.6%, compared to the prior year due to lower volumes in the Company’s U.S. Consumer business.

Gross profit - Gross profit margin increased to 29.7% compared to 24.6% in the prior year due to favorable pricing and customer mix, partially offset by higher product costs. The margin improvement included a one-time benefit of 190 basis points related to the sell-through of inventory that was priced in anticipation of IEEPA tariffs that were eliminated following the Supreme Court’s ruling. This benefit is non-recurring and will not persist beyond the sell-through of the affected inventory.

Selling, general and administrative expenses (SG&A) - Selling, general and administrative expenses increased by $0.8 million compared to the prior year. The increase was primarily due to accelerated depreciation of the Company’s legacy enterprise resource planning (ERP) system, partially offset by the benefit of restructuring actions taken by management during the second quarter of the prior year.

Interest (income) expense, net - Interest income, net was $0.1 million for both the three months ended March 31, 2026 and 2025.

Other (income) expense, net - Other expense, net was $0.1 million for the three months ended March 31, 2026, compared to other income, net of $0.1 million for the three months ended March 31, 2025.

14

Table of Contents

Income tax expense (benefit) - The effective tax rate was 28.5% and 28.8% for the three months ended March 31, 2026 and 2025, respectively. The Company’s effective tax rate remains consistent for the periods compared.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity

Our cash flows are provided by dividends paid or distributions made by HBB. The only material assets held by us are the investments in our consolidated subsidiary. As a result, certain statutory limitations or regulatory or financing agreements could affect the levels of distributions allowed to be made by our subsidiary. We have not guaranteed any of the obligations of HBB.

Our principal sources of cash to fund liquidity needs are: (1) cash generated from operations and (2) borrowings available under the HBB Facility. Our primary use of funds consists of working capital requirements, operating expenses, payment of dividends, repurchase of shares, capital expenditures and payments of principal and interest on debt.

The HBB Facility expires on December 13, 2029. We believe funds available from cash on hand, the HBB Facility and operating cash flows will provide sufficient liquidity to meet our operating needs and commitments arising during the next twelve months.

The following table presents selected cash flow information:

THREE MONTHS ENDED

MARCH 31

2026

2025

Net cash provided by (used for) operating activities

$

3,304 

$

6,620 

Net cash provided by (used for) investing activities

$

(320)

$

(516)

Net cash provided by (used for) financing activities

$

(2,835)

$

(4,958)

Operating activities - Net cash provided by operating activities was $3.3 million, compared to cash provided of $6.6 million in the prior year, representing a decline of $3.3 million. The decline was primarily driven by higher net working capital, including a planned increase in accounts receivable following the Company’s decision to transition away from our arrangement with a financial institution to sell certain U.S. trade receivables of a single customer on a non-recourse basis which shifted the timing of cash receipts. This was partially offset by lower incentive payout compared to 2025.

Investing activities - Net cash used for investing activities decreased $0.2 million compared to the prior year.

Financing activities - Net cash used for financing activities decreased $2.1 million compared to the prior year due to lower share repurchases during the first three months of 2026.

Capital Resources

HBB does not expect to make voluntary repayments within the next twelve months under the HBB Facility as the rate of return to invest excess cash exceeds the average interest rate of the HBB Facility. A material decrease in interest rates could cause HBB to re-evaluate. The obligations under the HBB Facility are secured by all of HBB’s U.S. assets. As of March 31, 2026, the borrowing base under the HBB Facility was $103.9 million and borrowings outstanding were $50.0 million. As of March 31, 2026, Excess Availability (as defined in the HBB Facility) was $53.9 million.

The maximum availability under the HBB Facility is governed by a borrowing base derived from advance rates against eligible trade receivables and inventory of HBB. As of March 31, 2026, interest on outstanding loans under the HBB Facility accrues at a per annum rate equal to, at HBB’s option, either Term Secured Overnight Financing Rate (SOFR) (as defined in the HBB Facility) plus 1.65% or the Base Rate (as defined in the HBB Facility) plus 0.00%. As of March 31, 2026, the HBB Facility requires a fee of 0.20% per annum on the unused commitment thereunder. The weighted average interest rate applicable to the HBB Facility for the three months ended March 31, 2026 was 3.24% (after giving effect to the interest rate swap agreements described below).

15

Table of Contents

To reduce the exposure to changes in the market rate of interest, we have entered into interest rate swap agreements for a portion of the HBB Facility. Terms of the interest rate swap agreements require us to receive a variable interest rate and pay a fixed interest rate. We have interest rate swaps with notional values totaling $50.0 million as of March 31, 2026 at an average fixed interest rate of 1.59%.

The HBB Facility contains customary representations and warranties, events of default and covenants, including, among other things, covenants applicable to HBB and its subsidiaries limiting indebtedness, liens, investments, dispositions and restricted payments. Additionally, if Excess Availability is less than $15.0 million at any time, the HBB Facility will require that HBB maintain a minimum Fixed Charge Coverage Ratio (as defined in the HBB Facility) of 1.00 to 1.00 until Excess Availability is greater than or equal to $15.0 million for 30 consecutive days. As of March 31, 2026, we were in compliance with all applicable financial covenants in the HBB Facility.

The Company has an arrangement with a financial institution to sell certain U.S. trade receivables of a single customer on a non-recourse basis. See Note 2 - Transfer of Financial Assets included in the unaudited consolidated financial statements contained in Part I of this Form 10-Q.

Contractual Obligations, Contingent Liabilities and Commitments

For a summary of the Company’s contractual obligations, contingent liabilities and commitments, refer to “Part II - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Contractual Obligations, Contingent Liabilities and Commitments” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as there have been no material changes from those disclosed in the Annual Report.

Off Balance Sheet Arrangements

For a summary of the Company’s off balance sheet arrangements, refer to “Part II - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Off Balance Sheet Arrangements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as there have been no material changes from those disclosed in the Annual Report.

16

Table of Contents

FORWARD-LOOKING STATEMENTS

The statements contained in this Form 10-Q 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 p

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high

Item 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HAMILTON BEACH BRANDS HOLDING COMPANY

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

Management’s discussion and analysis of financial condition and results of operations should be read in conjunction with our historical financial statements and related notes thereto and the other disclosures contained elsewhere in this Annual Report on Form 10-K. The following discussion and analysis focuses on our financial results for the years ended December 31, 2025 and 2024 and year-to-year comparisons between these years. A discussion of our results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023 is included in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2024.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and disclosure of contingent assets and liabilities (if any). Actual results could differ from those estimates.

We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements.

Revenue Recognition: Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Sales taxes are excluded from revenue. At contract inception, we assess the goods and services promised in our contracts with customers and identify a performance obligation for each promised good or service that is distinct. We have elected to account for shipping and handling activities performed after a customer obtains control of the goods as activities to fulfill the promise to transfer the goods, and therefore these activities are not assessed as a separate service to customers. The amount of revenue recognized varies primarily with price concessions and changes in returns. We offer price concessions to our customers for incentive offerings, special pricing agreements, price competition, promotions or other volume-based arrangements. We determine whether price concessions offered to our customers are a reduction of the transaction price and revenue or are advertising expense, depending on whether we receive a distinct good or service from our customers and, if so, whether we can reasonably estimate the fair value of that distinct good or service. We evaluated such agreements with our customers and determined they should be accounted for as variable consideration.

To estimate variable consideration, we apply both the expected value method and most likely amount method based on the form of variable consideration, according to which method would provide the better prediction. The expected value method involves a probability weighted determination of the expected amount, whereas the most likely amount method identifies the single most likely outcome in a range of possible amounts.

We monitor our estimates of variable consideration, which includes returns and price concessions, and periodically adjust the carrying amounts as appropriate. During 2025, there were no material adjustments to the aforesaid estimates, and our past results of operations have not been materially affected by a change in these estimates. Although there can be no assurances, we are not aware of any circumstances that would be reasonably likely to materially change these estimates in the future.

Deferred Taxes: We determine deferred tax assets and/or liabilities by multiplying the differences between the financial reporting and tax reporting bases for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled if there is no change in law. The effect on deferred taxes of a change in tax rates is recognized in net income in the period that includes the enactment date. Valuation allowances on deferred tax assets are estimated based on our assessment of the realizability of such amounts.

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Item 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HAMILTON BEACH BRANDS HOLDING COMPANY

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

RESULTS OF OPERATIONS

Our results of operations were as follows for the years ended December 31:

2025 Compared with 2024

Year Ended December 31

2025

% of Revenue

2024

% of Revenue

$ Change

% Change

Revenue

$

606,852 

100.0 

%

$

654,693 

100.0 

%

$

(47,841)

(7.3)

%

Cost of sales

450,699 

74.3 

%

484,486 

74.0 

%

(33,787)

(7.0)

%

Gross profit

156,153 

25.7 

%

170,207 

26.0 

%

(14,054)

(8.3)

%

Selling, general and administrative expenses

119,263 

19.7 

%

126,703 

19.4 

%

(7,440)

(5.9)

%

Amortization of intangible assets

311 

0.1 

%

302 

— 

%

9 

3.0 

%

Operating profit

36,579 

6.0 

%

43,202 

6.6 

%

(6,623)

(15.3)

%

Interest expense, net

703 

0.1 

%

613 

0.1 

%

90 

14.7 

%

Pension termination expense

— 

— 

%

7,611 

1.2 

%

(7,611)

n/m

Other expense (income), net

235 

— 

%

1,602 

0.2 

%

(1,367)

(85.3)

%

Income before income taxes

35,641 

5.9 

%

33,376 

5.1 

%

2,265 

6.8 

%

Income tax expense

9,186 

1.5 

%

2,617 

0.4 

%

6,569 

251.0 

%

Net income

$

26,455 

4.4 

%

$

30,759 

4.7 

%

$

(4,304)

(14.0)

%

n/m = not meaningful

Effective income tax rate

25.8 

%

7.8 

%

The following table identifies the components of the change in revenue for 2025 compared with 2024:

Revenue

2024

$

654,693 

Increase (decrease) from:

Unit volume and product mix

(52,943)

Foreign currency

(2,238)

Average sales price

7,340 

2025

$

606,852 

Revenue - Total revenue decreased $47.8 million, or 7.3% compared to the prior year due to lower volumes in the Company’s U.S. Consumer business in the second and third quarters as retailers paused buying in order to assess inventory levels and price increases flowing from the new tariffs implemented by the United States. Partially offsetting this decline was revenue growth in the Commercial and Health businesses.

Gross profit - Gross profit margin decreased to 25.7% in the current year compared to 26.0% in the prior year primarily due to the flow through of a one-time incremental tariff cost of $5.3 million, which negatively impacted full year margin by 90 basis points. Most of these costs were from a temporary spike in tariff rates on imports from China to 125%. This was partially offset by favorable customer and product mix due to the growth in our higher margin Commercial and Health businesses.

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Item 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HAMILTON BEACH BRANDS HOLDING COMPANY

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

Selling, general and administrative expenses - Selling, general and administrative expenses decreased $7.4 million compared to the prior year. The decrease is primarily due to lower personnel costs associated with the restructuring actions taken by management in the second quarter and reduced incentive compensation expense.     

Interest expense, net - Interest expense, net was $0.7 million in the current year compared to $0.6 million in the prior year.

Pension termination expense - During 2024, a one-time non-cash expense of $7.6 million was incurred in connection with the termination of the Company’s U.S. defined benefit pension plan related to the reclassification of historical unrecognized losses from Accumulated Other Comprehensive Income.

Other expense (income), net - Other expense, net decreased $1.4 million. In the current year, other expense, net includes currency gains of $1.1 million compared to currency losses of $0.9 million in the prior year.

Income tax expense - The effective tax rate on income was 25.8% in the current year compared to 7.8% in the prior year. The effective tax rate was lower in the prior year primarily due to a tax benefit for foreign operations and a tax benefit related to a tax accounting method change in the U.S., neither of which recurred in the current year.

LIQUIDITY AND CAPITAL RESOURCES

Our cash flows are provided by dividends paid or distributions made by HBB. The only material assets held by us are the investments in our consolidated subsidiary. As a result, certain statutory limitations or regulatory or financing agreements could affect the levels of distributions allowed to be made by our subsidiary. We have not guaranteed any of the obligations of HBB.

Our principal sources of cash to fund liquidity needs are: (1) cash generated from operations and (2) borrowings available under the HBB Facility. Our primary use of funds consists of working capital requirements, operating expenses, payment of dividends, repurchase of shares, capital expenditures and payments of principal and interest on debt. As of December 31, 2025, we had cash and cash equivalents of $47.3 million, compared to $45.6 million as of December 31, 2024. We believe our liquidity and access to capital markets will be adequate to fund our cash requirements for the next twelve months and for the foreseeable future.

The Company has an agreement with a third-party administrator to provide an accounts payable tracking system which facilitates a participating supplier’s ability to monitor and voluntarily elect to sell payment obligations owed by the Company to the designated third-party financial institution. Participating suppliers can sell one or more of the Company’s payment obligations at their sole discretion. The Company has no economic interest in a supplier’s decision to sell one or more of its payment obligations. The Company’s rights and obligations with respect to such payment obligations, including amounts due and scheduled payment terms, are not impacted by suppliers’ decisions to sell amounts under these arrangements. The agreement has a limit of $65.0 million in payment obligations. There is no requirement to provide assets pledged as security or other forms of guarantees under the agreement. The Company pays the third-party administrator based upon the original payment terms negotiated with participating suppliers. The payment of these obligations by the Company is included in cash used in operating activities in the Consolidated Statement of Cash Flows. As of December 31, 2025 and 2024, the Company has $29.9 million and $56.9 million, respectively, in outstanding payment obligations that are presented in Accounts payable on the Consolidated Balance Sheets. Of these totals, the third-party financial institution has made payments to participating suppliers to settle $21.8 million and $48.2 million, respectively, of our outstanding payment obligations.

See Note 1 “Nature of Operations and Summary of Significant Accounting Policies” included in our Financial Statements and Supplementary Data contained in Part IV of this Form 10-K for a rollforward of the Company’s outstanding payment obligations confirmed as valid under our supplier finance program.

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Item 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HAMILTON BEACH BRANDS HOLDING COMPANY

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

We do not rely on the supplier finance program as a means to manage our cash flow, as our payment terms to the third-party financial institution are the same as our terms to our participating suppliers. Therefore, we do not face a material risk if any party terminates the agreement. Our participation has not had a material impact on our Consolidated Balance Sheets, Statement of Cash Flows or liquidity.

The following table presents selected cash flow information:

Year Ended December 31

(In thousands)

2025

2024

Net cash provided by (used for) operating activities

$

13,813 

$

65,415 

Net cash provided by (used for) investing activities

$

1,932 

$

(13,884)

Net cash provided by (used for) financing activities

$

(15,417)

$

(20,948)

December 31, 2025 Compared with December 31, 2024

    Operating activities - Net cash provided by operating activities was $13.8 million, compared to cash provided of $65.4 million in the prior year, representing a decline of $51.6 million. The decrease in net cash provided is primarily due to an increase in net working capital, including lower accounts payable as we anniversary the inventory builds of late 2024. In addition, there was a reduction in other liabilities driven by decreased income tax payable primarily as the result of the “One Big Beautiful Bill Act” (“OBBBA”) and lower incentive compensation payables compared to the prior year.

    Investing activities - Net cash provided by investing activities was $1.9 million in the current year, compared to a net use of cash of $13.9 million in the prior year. The current year includes the proceeds received from the maturity of a U.S. Treasury bill, while the prior year includes the acquisition of HealthBeacon and the investment in the same U.S. Treasury bill.

    Financing activities - Net cash used for financing activities decreased $5.5 million in the current year primarily due to decreased purchases of treasury stock.

Capital Resources

The HBB Facility the Company has is a $125 million senior secured floating-rate revolving credit facility that expires with repayment due on December 13, 2029. The HBB Facility also has an optional $25.0 million term loan. The obligations under the HBB Facility are secured by all of HBB’s U.S. assets. The HBB Facility also requires HBB to achieve a minimum fixed charge coverage ratio in certain circumstances, as defined in the HBB Facility.

As of December 31, 2025, the borrowing base under the HBB Facility was $123.8 million and borrowings outstanding were $50.0 million. As of December 31, 2025, the excess availability under the HBB Facility was $73.8 million.

The maximum availability under the HBB Facility is governed by a borrowing base derived from advance rates against eligible trade receivables and inventory of HBB. As of December 31, 2025, interest on outstanding loans under the HBB Facility accrues at a per annum rate equal to, at HBB’s option, either Term Secured Overnight Financing Rate (SOFR) (as defined in the HBB Facility) plus 1.65% or the Base Rate (as defined in the HBB Facility) plus 0.00%. As of December 31, 2025, the HBB Facility requires a fee of 0.20% per annum on the unused commitment thereunder. The weighted average interest rate applicable to the HBB Facility and the Prior HBB Facility for the year ended December 31, 2025 was 3.30% (after giving effect to the interest rate swap agreements described below).

To reduce the exposure to changes in the market rate of interest, we have entered into interest rate swap agreements for a portion of the HBB Facility. Terms of the interest rate swap agreements require us to receive a variable interest rate and pay a fixed interest rate.

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Item 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HAMILTON BEACH BRANDS HOLDING COMPANY

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

The HBB Facility contains customary representations and warranties, events of default and covenants, including, among other things, covenants applicable to HBB and its subsidiaries limiting indebtedness, liens, investments, dispositions and restricted payments. Additionally, if Excess Availability (as defined in the HBB Facility) is less than $15.0 million at any time, the HBB Facility will require that HBB maintain a minimum Fixed Charge Coverage Ratio (as defined in the HBB Facility) of 1.00 to 1.00 until Excess Availability is greater than or equal to $15.0 million for 30 consecutive days. As of December 31, 2025, we were in compliance with all applicable financial covenants in the HBB Facility.

HBB does not expect to make voluntary repayments within the next twelve months under the HBB Facility as the rate of return to invest excess cash exceeds the average interest rate of the HBB Facility. A material decrease in interest rates could cause HBB to re-evaluate.

We maintain an arrangement with a financial institution to sell certain U.S. trade receivables of a single customer on a non-recourse basis.

Contractual Obligations, Contingent Liabilities and Commitments

Following is a table which summarizes the contractual obligations of Hamilton Beach Holding as of December 31, 2025:

Payments Due by Period

Contractual Obligations

Total

2026

2027

2028

2029

2030

Thereafter

Revolving credit agreements

$

50,000 

$

— 

$

— 

$

— 

$

50,000 

$

— 

$

— 

Variable interest payments on HBB Facility

7,992 

2,517 

2,433 

1,825 

1,217 

— 

— 

Purchase and other obligations

157,675 

157,469 

77 

79 

50 

— 

— 

Operating lease obligations

50,158 

7,420 

6,970 

6,596 

6,492 

5,791 

16,889 

Finance lease obligations

285 

110 

109 

65 

1 

— 

— 

Total contractual cash obligations

$

266,110 

$

167,516 

$

9,589 

$

8,565 

$

57,760 

$

5,791 

$

16,889 

Our variable interest payments are calculated based upon our contractual payment schedule and the December 31, 2025 Base Rate (as defined in the HBB Facility) plus an applicable margin of 0.00%. A 0.25% increase in the Base Rate would increase our estimated total annual interest payments on the HBB Facility by approximately $0.4 million. Variable interest payments could change in the event HBB decides to make voluntary repayments.

Our purchase and other obligations are primarily for accounts payable, open purchase orders and accrued payroll and incentive compensation.

An event of default, as defined in the HBB Facility and in our operating and finance lease agreements, could cause an acceleration of the payment schedule. No such event of default for us has occurred or is anticipated to occur.

Given the funded status of the one defined benefit pension plan, we do not expect to contribute to the pension plan in 2026. Pension benefit payments are made from assets of the pension plan.

Off Balance Sheet Arrangements

We have not entered into any off balance sheet financing arrangements.

Recently Issued and Adopted Accounting Standards

Refer to Note 1 to the consolidated financial statements for discussion of recently issued and adopted accounting standards.

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Item 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HAMILTON BEACH BRANDS HOLDING COMPANY

(Tabular Amounts in Thousands, Except Per Share and Percentage Data)

FORWARD-LOOKING STATEMENTS

The statements contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere throughout this Annual Report on Form 10-K 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 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, price increases 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, this Annual Report on Form 10-K. 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.

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