Q2 2026 Hamilton Beach Brands Holding Co Earnings Call Transcript
Key Points
- Net sales increased low double digits, driven by recovery of US consumer volumes lost in the prior year.
- Gross margin improved significantly, benefiting from tariff mitigation actions and a one-time IEPA tariff refund.
- Operating profit increased to $43.2 million, up from $5.9 million in the prior year, driven by the tariff refund.
- Hamilton Beach Health delivered its fourth consecutive quarter of profitable growth, with sales on track to increase 50% this year.
- The company is expanding its premium and commercial product lines, including new placements at major retailers and food chains.
- Gross margin excluding the tariff refund was 26.1%, only in line with expectations, with no significant improvement.
- SG&A expenses increased to $34.3 million, driven by higher performance-based incentive costs and accelerated depreciation of legacy ERP system.
- The company expects 2026 operating profit to decline high single digits, inclusive of incremental $6 million in advertising spend and $6 million in accelerated depreciation.
- Cash flow from operating activities is expected to be an outsized $35-45 million outflow due to normalization of tariff-related impacts on working capital.
- Share repurchases slowed significantly in the quarter, with only $2 million spent, raising questions about capital allocation priorities.
Thank you. Thank you for standing by. At this time, I would like to welcome everyone to today's Hamilton Beach Brands second-quarter 2026 earnings conference call.
(Operator instructions) Thank you.
So without further ado, I would like to turn the call over to Avanti Chiruvelith, Vice President with ICR. Avanti, you have the floor.
Thanks, Jillian. Good afternoon, everyone, and welcome to the second-quarter of 2026 earnings conference call and webcast for Hamilton Beach Grants. Earlier today, after the stock market closed, we issued our second-quarter 2026 earnings release, which is available on our corporate website.
Our speakers today are Scott Tidy, President and CEO, and Sally Cunningham, Senior Vice President, Chief Financial Officer, and Treasurer. Our presentation today includes forward-looking statements.
These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in either our
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