Hamilton Beach Brands Q3 gross margin rises on lower tariff impacts
HBB•Third-quarter revenue rose 5.6% year over year to $140.26 million, and gross margin increased to 27.5% from 21.1%. Hamilton Beach now expects 2026 revenue to be flat and operating profit to decline by a high-teens percentage, while forecasting $40 million to $50 million in cash flow from operations less investing activities.
1. Quarterly results
Hamilton Beach Brands said third-quarter revenue increased 5.6% year over year, driven by a recovery in its U.S. consumer business and double-digit growth in its Health business. Gross margin rose to 27.5% from 21.1%, as the company sold inventory no longer subject to elevated tariffs; tariffs had reached 125% in the year-earlier period.
2. 2026 outlook
The company now expects 2026 revenue to be flat year over year, lowering its prior growth outlook, and operating profit to decline by a high-teens percentage, versus its previous estimate of a high-single-digit decline. It raised its forecast for cash flow from operations less investing activities to $40 million to $50 million.
