HBB earnings analysis
What we found in HBB's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
In the Q1 2026 report, Hamilton Beach Brands posted a revenue of $121.96 million, marking an 8.6% decrease from $133.37 million in Q1 2025. Despite the revenue decline, gross margins improved substantially from 24.6% to 29.7%, while earnings per share notably increased from $0.13 to $0.26. The company's operational adjustments seem to bolster profitability even in a challenging sales environment.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong EPS Growth
- EPS rose to $0.26 in Q1 2026, up from $0.13 in Q1 2025, a 100% increase.
- Significant Margin Improvement
- Gross margin increased by 510 basis points to 29.7%, compared to 24.6% in the same quarter last year.
- Operating Profit Doubled
- Operating profit jumped to $4.97 million from $2.31 million year-over-year, reflecting a 114.8% increase.
- Improved Cash Management
- Net cash provided by operating activities was $3.30 million, despite lower operational cash flows compared to $6.62 million last year.
- Reduction in Cost of Sales
- Cost of sales decreased by 14.7%, from $100.60 million to $85.77 million.
- Stable Debt Levels
- Total debt from revolving credit was maintained at $50 million, with strong liquidity on hand.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Declining Revenue
- Revenue decreased by $11.41 million, or 8.6%, compared to Q1 2025 primarily due to lower U.S. consumer business volumes.
- Increased SG&A Expenses
- SG&A expenses grew by $0.77 million compared to the prior year, mainly from increased depreciation costs.
- Negative Cash Flow Trends
- Operating cash flow fell to $3.30 million from $6.62 million, a decline of $3.3 million year-over-year, indicating liquidity pressures.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.26
- Gross margin
- 29.7%
- Operating margin
- 4.1%
- Segment
- Home and Commercial Products: $119.61M
- Segment
- Health: $2.35M
What they said about what is next.
Management reiterated expectations for mid-single digit revenue growth for 2026.
The filing reads better than the one before it.
What came before.
- 10-K · February 25, 2026
- Hamilton Beach Brands reports a two-segment strategy (Home and Commercial Products; Health) and is expanding its product roadmap with premium Lotus® (launched September 2025) and the 2024 acquisition of HealthBeacon…
- 10-Q · November 5, 2025
- Hamilton Beach Brands reported Q3 2025 revenue of $132,779,000, down $23,888,000 (15.2%) vs. Q3 2024, with gross margin compressing to 21.1% (from 28.0%) largely due to a one-time $5.0 million tariff impact. Operating…
- 10-Q · July 30, 2025
- Hamilton Beach Brands reported Q2 2025 revenue of $127.8M, down $28.5M (18.2%) vs. Q2 2024, with gross margin expanding to 27.5% from 25.9% but operating profit falling to $5.9M (4.7% of revenue) from $10.0M (6.4%). For…
- 10-K · February 26, 2025
- Hamilton Beach presents itself as a leading North American designer, marketer and distributor of small electric household and commercial appliances (Hamilton Beach® is described as the #1 small kitchen appliance…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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