Revenue growth has trended into negative territory with an 8.6% decline in 2026Q1, while operating margins remain highly sensitive to seasonal demand, fluctuating between 1.7% and 11.9% over the last five quarters.
| Sales/Revenue | 595.44M | 606.85M | 654.69M | 625.63M | 640.95M | 658.39M | 603.71M | 611.79M | 743.18M | 740.75M | 745.36M | 767.86M |
| Revenue Growth % | -9.75% | -7.31% | 4.65% | -2.39% | -2.65% | 9.06% | -1.32% | -17.68% | 0.33% | -0.62% | -2.93% | - |
| Cost of Goods Sold | 435.87M | 450.7M | 484.49M | 481.95M | 511.83M | 521.89M | 465.06M | 483.23M | 554.17M | 546.93M | 551.59M | 577.13M |
| COGS % of Revenue | - | 74.27% | 74% | 77.03% | 79.86% | 79.27% | 77.03% | 78.99% | 74.57% | 73.83% | 74% | 75.16% |
| Gross Profit | 159.57M | 156.15M | 170.21M | 143.68M | 129.11M | 136.5M | 138.65M | 128.55M | 189.01M | 193.82M | 193.77M | 190.73M |
| Gross Margin % | 26.8% | 25.73% | 26% | 22.97% | 20.14% | 20.73% | 22.97% | 21.01% | 25.43% | 26.17% | 26% | 24.84% |
| Gross Profit Growth % | - | -8.26% | 18.47% | 11.28% | -5.41% | -1.55% | 7.86% | -31.99% | -2.48% | 0.03% | 1.6% | - |
| Operating Expenses | 120.26M | 119.26M | 127M | 108.59M | 90.32M | 104.96M | 101.24M | 101.76M | 156.69M | 155.69M | 150.4M | 155.17M |
| OpEx % of Revenue | - | 19.65% | 19.4% | 17.36% | 14.09% | 15.94% | 16.77% | 16.63% | 21.08% | 21.02% | 20.18% | 20.21% |
| Selling, General & Admin | 120.11M | 119.26M | 126.7M | 96M | 90.12M | 104.76M | 99.99M | 100.38M | 155.31M | 154.31M | 149.02M | 153.79M |
| SG&A % of Revenue | - | 19.65% | 19.35% | 15.34% | 14.06% | 15.91% | 16.56% | 16.41% | 20.9% | 20.83% | 19.99% | 20.03% |
| Research & Development | 0 | 13.2M | 0 | 12.4M | 0 | 0 | 0 | 0 | 11M | 10.4M | 9.7M | 9.6M |
| R&D % of Revenue | - | 2.18% | - | 1.98% | - | - | - | - | 1.48% | 1.4% | 1.3% | 1.25% |
| Other Operating Expenses | 155K | -13.2M | 302K | 200K | 200K | 200K | 1.25M | 1.38M | -1.01M | -227K | -837K | -1.56M |
| Operating Income | 39.23M | 36.58M | 43.2M | 35.08M | 38.79M | 31.54M | 37.41M | 26.79M | 32.32M | 38.13M | 43.37M | 35.55M |
| Operating Margin % | 6.59% | 6.03% | 6.6% | 5.61% | 6.05% | 4.79% | 6.2% | 4.38% | 4.35% | 5.15% | 5.82% | 4.63% |
| Operating Income Growth % | - | -15.33% | 23.15% | -9.57% | 23% | -15.7% | 39.64% | -17.1% | -15.25% | -12.08% | 21.99% | - |
| EBITDA | 43.9M | 42.47M | 48M | 39.44M | 43.68M | 36.45M | 41.32M | 30.8M | 36.6M | 43.75M | 49.6M | 41.86M |
| EBITDA Margin % | 7.37% | 7% | 7.33% | 6.3% | 6.81% | 5.54% | 6.84% | 5.03% | 4.92% | 5.91% | 6.65% | 5.45% |
| EBITDA Growth % | -14.43% | -11.53% | 21.7% | -9.69% | 19.82% | -11.79% | 34.18% | -15.85% | -16.34% | -11.8% | 18.48% | - |
| D&A (Non-Cash Add-back) | 4.66M | 5.89M | 4.8M | 4.36M | 4.88M | 4.91M | 3.91M | 4M | 4.28M | 5.61M | 6.23M | 6.31M |
| EBIT | 38.85M | 36.2M | 33.99M | 34.7M | 37.02M | 31.81M | 35.73M | 27.15M | 33.4M | 37.84M | 43.37M | 35.55M |
| Net Interest Income | -697K | -559K | -613K | -3M | -4.59M | -2.85M | -2M | -2.98M | -2.92M | -1.57M | -1.37M | -1.96M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 697K | 559K | 613K | 3M | 4.59M | 2.85M | 2M | 2.98M | 2.92M | 1.57M | 1.37M | 1.96M |
| Other Income/Expense | -1.18M | -938K | -9.83M | -3.38M | -6.37M | -2.58M | -3.68M | -2.62M | -1.83M | -2.06M | -2.21M | -3.52M |
| Pretax Income | 38.06M | 35.64M | 33.38M | 31.7M | 32.43M | 28.96M | 33.73M | 24.18M | 28.03M | 36.08M | 41.16M | 32.04M |
| Pretax Margin % | 6.39% | 5.87% | 5.1% | 5.07% | 5.06% | 4.4% | 5.59% | 3.95% | 3.77% | 4.87% | 5.52% | 4.17% |
| Income Tax | 9.87M | 9.19M | 2.62M | 6.45M | 7.16M | 7.65M | 9.66M | 9.08M | 6.25M | 18.17M | 14.98M | 12.32M |
| Effective Tax Rate % | 25.93% | 25.77% | 7.84% | 20.36% | 22.09% | 26.42% | 28.65% | 37.57% | 22.28% | 50.37% | 36.4% | 38.47% |
| Net Income | 28.19M | 26.45M | 30.76M | 25.24M | 25.27M | 21.31M | 46.26M | -13.51M | 21.78M | 17.91M | 26.18M | 19.71M |
| Net Margin % | 4.73% | 4.36% | 4.7% | 4.03% | 3.94% | 3.24% | 7.66% | -2.21% | 2.93% | 2.42% | 3.51% | 2.57% |
| Net Income Growth % | -16.42% | -13.99% | 21.86% | -0.1% | 18.59% | -53.94% | 442.47% | -162% | 21.66% | -31.61% | 32.81% | - |
| Net Income (Continuing) | 28.19M | 26.45M | 30.76M | 25.24M | 25.27M | 21.31M | 24.07M | 15.09M | 27.14M | 17.91M | 26.18M | 19.71M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 22.19M | -28.6M | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.07 | 1.95 | 2.20 | 1.80 | 1.81 | 1.53 | 3.37 | -0.26 | 1.59 | 1.16 | 1.91 | 1.44 |
| EPS Growth % | -14.69% | -11.36% | 22.22% | -0.55% | 18.3% | -54.6% | 1396.15% | -116.35% | 37.07% | -39.27% | 32.64% | - |
| EPS (Basic) | - | 1.95 | 2.20 | 1.80 | 1.81 | 1.54 | 3.39 | -0.26 | 1.59 | 1.16 | 1.91 | 1.44 |
| Diluted Shares Outstanding | 13.59M | 13.45M | 13.96M | 14.06M | 14M | 13.93M | 13.71M | 13.73M | 13.73M | 13.69M | 13.67M | 13.67M |
| Basic Shares Outstanding | 13.57M | 13.43M | 13.95M | 14.04M | 13.97M | 13.88M | 13.66M | 13.69M | 13.7M | 13.67M | 13.67M | 13.67M |
| Dividend Payout Ratio | - | 24.31% | 20.46% | 24.09% | 22.88% | 25.66% | 10.92% | - | 21.38% | 218.72% | 160.43% | 76.1% |
Retailer inventory cycle volatility
According to recent financial disclosures, HBB's revenue growth has trended into negative territory, with a 8.6% decline in 2026Q1, suggesting that the post-pandemic demand pull-forward has fully exhausted and the company is struggling to find new organic volume drivers in a saturated domestic market.
The consistent contraction in quarterly revenue growth indicates that the company's reliance on the replacement cycle is currently insufficient to offset broader consumer discretionary weakness. Investors should monitor whether the lack of top-line momentum reflects a structural loss of shelf space or merely a temporary normalization of retail inventory levels.
As reported in quarterly filings, gross margins have fluctuated significantly, bottoming at 21.1% in 2025Q3 before recovering to 29.7% in 2026Q1, highlighting the company's extreme sensitivity to inbound freight costs and the limited pricing power inherent in their value-tier appliance portfolio.
The wide variance in gross margin suggests that HBB lacks the brand equity to pass through inflationary cost spikes to its price-sensitive customer base. This volatility implies that profitability remains hostage to external logistical factors rather than internal operational efficiencies or premium product mix shifts.
Based on the provided income statement data, operating margins have struggled to scale, frequently dipping into low single digits, which suggests that the company's high fixed SG&A costs are not being adequately absorbed by the current, lower-volume revenue base during non-holiday periods.
The inability to maintain consistent operating profitability outside of the fourth quarter indicates a lack of meaningful operating leverage. This suggests that the current cost structure may be too rigid for a business model that experiences such extreme seasonal revenue concentration.
Analysis of the income statement reveals that net income is heavily skewed toward the fourth quarter, with 2025Q4 contributing $18.5M in profit, while other quarters show significantly thinner margins, suggesting that annual EPS figures may be misleading indicators of underlying operational health.
The reliance on holiday-driven profitability warrants further investigation into the sustainability of these seasonal spikes. Investors should be cautious of interpreting annual earnings as a sign of consistent performance, as the quarterly volatility suggests a business model that is highly vulnerable to any disruption in the year-end retail cycle.
While the company maintains a conservative balance sheet, the persistent weakness in operating margins, which fell to 1.7% in 2025Q1, suggests that the business model may be structurally incapable of generating consistent shareholder returns without significant improvements in product mix or cost management.
Short-term observers might focus on the potential for further margin compression if retail partners continue to demand deeper concessions. The lack of R&D investment, as evidenced by zero reported spending, may further limit the company's ability to innovate its way out of this low-margin trap.
Quick answers to the most common questions about buying HBB stock.
For fiscal year 2025, Hamilton Beach Brands Holding Company (HBB) reported total revenue of $606.9M. This represents a 21.0% decline compared to $767.9M in 2015.
Hamilton Beach Brands Holding Company (HBB) is profitable, generating $26.5M in net income for the fiscal year ending 2025 with a net profit margin of 4.4%.
Hamilton Beach Brands Holding Company (HBB) reported an operating income of $36.6M, resulting in an operating profit margin of 6.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Hamilton Beach Brands Holding Company (HBB) generated $156.2M in gross profit for the year, representing a gross profit margin of 25.7%. This demonstrates the company's core pricing power and production efficiency.