Despite management's optimism about 2026 recovery, the combination of declining full-year fundamentals, lowered 2026 operating profit guidance, and significant cash flow deterioration suggests ongoing operational challenges. The stock may face pressure despite the improved Q4 results.
Price Chart
Executive Summary
Hamilton Beach Brands reported flat fourth-quarter revenue of $212.9 million but a 7.3% decline in full-year 2025 revenue to $606.9 million due to tariff-related disruptions. Despite improved gross margins and operating profit in Q4, full-year net income fell to $1.95 per share from $2.20. The company expects mid-single-digit revenue growth in 2026 but anticipates a low-teens percentage decline in operating profit due to increased advertising and ERP system depreciation expenses.
Key Financial Metrics
Key Facts
- Fourth-quarter revenue was flat at $212.9 million, but full-year revenue declined 7.3% to $606.9 million
- Full-year net income decreased to $1.95 per share from $2.20 per share in 2024
- Gross margin decreased 30 basis points to 25.7% for the full year due to $5.3 million in tariff costs
- Company expects 2026 operating profit to decline in the low teens percentage range despite revenue growth
- Cash flow from operations dropped to $13.8 million from $65.4 million due to working capital changes
Financial Impact
Revenue declined $47.8 million year-over-year with net income down $4.3 million. Operating profit decreased $6.6 million to $36.6 million for the year.
Risk Factors
- Tariff-related costs continue to impact margins
- Operating profit expected to decline in 2026 despite revenue growth
- Significant drop in operating cash flow to $13.8 million
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001709164-26-000033 |
| Document: hbb-20260225.htm | 0001709164-26-000033 |
| Document: 0001709164-26-000033-index-headers.html | 0001709164-26-000033 |
| Document: 0001709164-26-000033-index.html | 0001709164-26-000033 |
| Document: 0001709164-26-000033.txt | 0001709164-26-000033 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 19, 2026 9w ago | Press Release | $33.65 | awaiting T+60 | — | $33.08 (−1.71%) |
Mar 25, 2026 30w ago | DEFA14A | $17.27 $20.52 | ▲ +18.82% | ▲ +5.36% | $33.08 (+91.52%) |
Feb 26, 2026 34w ago | 8-K | $20.54 $19.61 | ▲ +4.53% | ▲ +12.70% | $33.08 (−61.03%) |
US Market Status
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