10q10k10q10k.net

What changed in Hamilton Beach Brands Holding Co's 10-K — 2024 vs 2025

vs

Paragraph-level year-over-year comparison of Hamilton Beach Brands Holding Co's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+148 added−156 removedSource: 10-K (2026-02-25) vs 10-K (2025-02-26)

Top changes in Hamilton Beach Brands Holding Co's 2025 10-K

148 paragraphs added · 156 removed · 120 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

23 edited+6 added−5 removed31 unchanged
Biggest changeThe intellectual property of our Hamilton Beach Health ® business is important to the operations of our Health segment. 2 Table of Contents Any unauthorized use of, or third-party claim against, our intellectual property rights could harm our business or our ability to compete in the home, health and wellness markets.
Biggest changeAny unauthorized use of, or third-party claim against, our intellectual property rights could harm our business or our ability to compete in the home, health and wellness markets. Government Regulation Our operations are subject to various laws and regulations administered by federal, state, local and foreign government agencies, including laws and regulations related to health, safety and environmental matters.
Based on publicly available information about the industry, we are one of the largest full-line distributors and marketers of small electric household and specialty housewares appliances in North America, including the U.S., Canada, Mexico and Latin America, based on key product categories.
Based on publicly available information about the industry, we are one of the largest full-line distributors and marketers of small electric and specialty housewares appliances in North America, including the U.S., Canada, Mexico and Latin America, based on key product categories.
At the heart of our culture is Good Thinking®, a philosophy that embodies teamwork, service, and inspired innovation in every aspect of our business. This values-driven culture is a key strength, shaping our workplace environment and empowering our employees. Good Thinking® extends beyond product innovation—it influences everything we do.
At the heart of our culture is Good Thinking ® , a philosophy that embodies teamwork, service, and inspires innovation in every aspect of our business. This values-driven culture is a key strength, shaping our workplace environment and empowering our employees. Good Thinking ® extends beyond product innovation—it influences everything we do.
Sales and Marketing We design, market and distribute a wide range of branded, small electric household and specialty housewares appliances, including air fryers, blenders, coffee makers, food processors, indoor electric grills, irons, juicers, mixers, slow cookers, toasters and toaster ovens. We also design, market and distribute commercial products for restaurants, fast food chains, bars and hotels.
Sales and Marketing We design, market and distribute a wide range of brand name small electric household and specialty housewares appliances, including air fryers, blenders, coffee makers, food processors, indoor electric grills, irons, juicers, mixers, slow cookers, toasters and toaster ovens. We also design, market and distribute commercial products for restaurants, fast food chains, bars and hotels.
We purchase our inventory from approximately 60 suppliers, one of which represented more than 10% of purchases during the year ended December 31, 2024. We believe the loss of any one supplier would not have a long-term material adverse effect on our business because there are adequate supplier choices available that can meet our production and quality requirements.
We purchase our inventory from approximately 70 suppliers, one of which represented more than 10% of purchases during the year ended December 31, 2025. We believe the loss of any one supplier would not have a long-term material adverse effect on our business because there are adequate supplier choices available that can meet our production and quality requirements.
Scott Tidey 60 Director, President and Chief Executive Officer of Hamilton Beach Holding (from October 2024), President of Hamilton Beach Holding (from February 2024 to September 2024), Senior Vice President, Global Sales of HBB (from January 2023 to February 2024), Senior Vice President, Consumer Sales & Marketing of HBB (from March 2021 to January 2023), Senior Vice President, North America Sales and Marketing of HBB (from prior to 2020 to March 2021) Sally M.
Scott Tidey 61 Director, President and Chief Executive Officer of Hamilton Beach Holding (from October 2024), President of Hamilton Beach Holding (from February 2024 to September 2024), Senior Vice President, Global Sales of HBB (from January 2023 to February 2024), Senior Vice President, Consumer Sales & Marketing of HBB (from March 2021 to January 2023), Senior Vice President, North America Sales and Marketing of HBB (from prior to 2021 to March 2021) Sally M.
In the United States, we employ approximately 500 people, with about two-thirds located at our headquarters in Richmond, Virginia. This facility houses our product design, development and marketing teams, along with a state-of-the-art test kitchen and a UL-certified test laboratory. The majority of our remaining U.S. employees support operations at our distribution centers in Byhalia, Mississippi.
In the United States, we employ approximately 470 people, with about half located at our headquarters in Richmond, Virginia. This facility houses our product design, development and marketing teams, along with a state-of-the-art test kitchen and a UL-certified test laboratory. The majority of our remaining U.S. employees support operations at our distribution center in Byhalia, Mississippi.
As of December 31, 2024, we had a workforce of approximately 700 employees across six countries—Canada, China, Mexico, Ireland, Germany, and the United States. About 97% of our employees were full-time, with the remaining working part-time. Roughly 2% of our workforce, all based in Canada, are covered by collective bargaining agreements.
As of December 31, 2025, we had a workforce of approximately 660 employees across five countries—Canada, China, Mexico, Ireland, and the United States. About 97% of our employees were full-time, with the remaining working part-time. Roughly 2% of our workforce, all based in Canada, are covered by collective bargaining agreements.
Sales from our Health segment are generated through pharmaceutical and specialty pharmacy companies. Walmart Inc. and its global subsidiaries (“Walmart”) accounted for approximately 29%, 27% and 26% of our consolidated revenue in 2024, 2023 and 2022, respectively. Amazon.com, Inc. and its subsidiaries (“Amazon.com”) accounted for approximately 24%, 24% and 23% of our revenue in 2024, 2023 and 2022, respectively.
Sales from our Health segment are generated through specialty pharmacy and pharmaceutical companies. Walmart Inc. and its global subsidiaries (“Walmart”) accounted for approximately 29%, 29% and 27% of our revenue in 2025, 2024 and 2023, respectively. Amazon.com, Inc. and its subsidiaries (“Amazon.com”) accounted for approximately 19%, 24% and 24% of our revenue in 2025, 2024 and 2023, respectively.
Our five largest customers accounted for approximately 65%, 64% and 61% of our revenue for the years ended December 31, 2024, 2023 and 2022, respectively.
Our five largest customers accounted for approximately 62%, 65% and 64% of our revenue for the years ended December 31, 2025, 2024 and 2023, respectively.
Cunningham 50 Senior Vice President, Chief Financial Officer and Treasurer of Hamilton Beach Holding (from May 2023), Senior Vice President and Chief Financial Officer of Hamilton Beach Holding (from March 2023 to May 2023),Operating Partner of One Rock Capital Partners (from November 2021 to February 2023), Senior Vice President and Chief Financial Officer of Ascent Industries Co.
Cunningham 51 Senior Vice President, Chief Financial Officer and Treasurer of Hamilton Beach Holding (from May 2023), Senior Vice President and Chief Financial Officer of Hamilton Beach Holding (from March 2023 to May 2023),Operating Partner of One Rock Capital Partners (a private equity firm) (from November 2021 to February 2023), Senior Vice President and Chief Financial Officer of Ascent Industries Co.
Our operations are managed and reported in two operating segments, each of which is a reportable segment for financial reporting purposes: (1) Home and Commercial Products and (2) Health. During the years ended December 31, 2023 and 2022, the Company had one operating and one reportable segment.
Our operations are managed and r eported in two operatin g segments, each of which is a reportable segment for financial reporting purposes: (1) Home and Commercial Products and (2) Health . During the year ended December 31, 2023, the Company had one operating and one reportable segment.
Key Suppliers and Raw Material Our products are produced to our specifications by third-party suppliers. We do not maintain long-term purchase contracts with suppliers and operate mainly on a purchase order basis. We negotiate the purchases from our foreign suppliers in U.S. dollars. During 2024, we purchased approximately three-fourths of our finished products from suppliers in China.
Key Suppliers and Raw Material Our products are produced to our specifications by third-party suppliers. We do not maintain long-term purchase contracts with suppliers and operate mainly on a purchase order basis. We negotiate the purchases from our foreign suppliers in U.S. dollars.
Hamilton Beach® is the #1 small kitchen appliance national brand in the U.S., in brick-and-mortar and ecommerce channels, based on units sold. To a lesser degree, our retail product lines compete outside of North America. Our commercial products compete globally and have generated a strong position in these markets.
Hamilton Beach ® is the #2 small kitchen appliance national brand in the U.S. based on units sold and grew to #4 by dollars sold. To a lesser degree, our retail product lines compete outside of North America. Our commercial products compete globally and have generated a strong position in these markets.
We believe that our business is not dependent upon any individual patent, copyright or license, but that the Hamilton Beach ® and Proctor Silex ® trademarks are material to our business. Product Design and Development We incurred $13.7 million, $12.4 million and $11.8 million in 2024, 2023 and 2022, respectively, in expenses on product design and development activities.
We believe that our business is not dependent upon any individual patent, copyright or license, but that the Hamilton Beach ® trademark is material to our business. Product Design and Development We incurred $13.2 million, $13.7 million and $12.4 million in 2025, 2024 and 2023, respectively, in expenses on product design and development activities.
We support employee development through various training opportunities and resources, such as “Hamilton Beach University.” This cross-functional learning program provides employees with a deeper understanding of our company, products, and industry, while also equipping them with the skills needed to adapt to emerging trends and excel in their roles.
We support employee development through various training opportunities and resources, such as “Hamilton Beach University.” This cross-functional learning program provides employees with a deeper understanding of our company, products, and industry, while also equipping them with the skills needed to adapt to emerging trends and excel in their roles. 4 Table of Contents Information about our Executive Officers The following table sets forth, as of February 25, 2026, the name, age, current position and principal occupation and employment during the past five years of the Company’s executive officers.
Sales promotion activities are supported primarily through digital marketing vehicles. 1 Table of Contents Customers Sales from our Home and Commercial Products segment are generated predominantly by a network of inside sales employees to mass merchandisers, ecommerce retailers, national department stores, variety store chains, warehouse clubs, specialty home retailers, distributors, restaurants, bars, hotels and other retail outlets.
The primary system offered is the Smart Sharps Bin™ from Hamilton Beach Health ® . 1 Table of Contents Customers Sales from our Home and Commercial Products segment are generated predominantly by a network of inside sales employees to mass merchandisers, ecommerce retailers, department stores, warehouse clubs, specialty home retailers, distributors, restaurants, bars, hotels and other retail outlets.
In February 2024, our Hamilton Beach Health ® brand acquired HealthBeacon PLC (“HealthBeacon”) a medical technology firm and strategic partner of the Company. HealthBeacon develops digitally connected devices that enable patients to manage at home chronic conditions that require the use of injectable medications, and it provides other health services.
HealthBeacon develops digitally connected devices that enable patients to manage at home chronic conditions that require the use of injectable medications, and it provides other health services.
We generally market our “good” and “better” consumer products under the Hamilton Beach ® and Proctor Silex ® brands. We participate in the premium market with our owned brands Hamilton Beach ® Professional and Weston ® farm-to-table and field-to-table food processing equipment.
We generally market our “good” and “better” consumer products under the Hamilton Beach ® , Proctor Silex ® ,and Weston ® brands. We participate in the consumer premium market with our owned brands Hamilton Beach ® Professional and Lotus ® and license the brands for CHI ® premium garment care products and Clorox ™ home appliances.
To meet these competitive challenges, we have focused on continued innovation in our leading brands as well as expanding into new categories using existing core competencies. Our presence in a significant number of housewares product categories across various price points allows us to meet the needs of a wide range of retailers and consumers.
Our presence in a significant number of consumer housewares product categories across various price points allows us to meet the needs of a wide range of retailers and consumers.
We market our commercial products under the Hamilton Beach Commercial ® and the Proctor Silex Commercial ® brands. We also license certain of our trademarks to various licensees in categories such as microwave ovens, among others. We continue to expand in the home, health and wellness markets.
We also license certain of our trademarks to various licensees in categories such as microwave ovens, among others. We continue to expand in the home, health and wellness markets. In February 2024, the Company acquired HealthBeacon Limited (“HealthBeacon”) a medical technology firm and strategic partner of the Company.
Competition We believe the principal areas of competition with respect to our products are product design and innovation, quality, price, product features, supply chain excellence, merchandising, promotion and warranty. We compete with many manufacturers and distributors of housewares products.
Competition We believe the principal areas of competition with respect to all of our products are product design and innovation, quality, price and product features. We compete with many manufacturers and distributors of consumer housewares products. As brick-and-mortar retailers generally purchase a limited selection of brand name, small electric appliances, we compete with other suppliers for retail shelf space.
As brick-and-mortar retailers generally purchase a limited selection of branded, small electric appliances, we compete with other suppliers for retail shelf space. In the ecommerce channel, we must compete with a broad list of competitors for brand reputation through compelling content, strong ratings and reviews from consumers.
In the consumer ecommerce channel, we must compete with a broad list of competitors for brand reputation through compelling content, strong ratings and reviews from consumers. 2 Table of Contents To meet these competitive challenges, we have focused on continued innovation in our leading brands as well as expanding into new categories using existing core competencies.
Removed
Additionally, we participate in the premium market through multiyear licensing agreements to market and distribute CHI ® premium garment care products, Clorox ™ home appliances, Brita Hub ™ countertop electric water filtration appliances, the Bartesian ® premium cocktail delivery system and Numilk ® plant-based milk makers.
Added
The Lotus ® brand launched in September 2025 and offers high-end, premium small kitchen appliances. We market our commercial products under the Hamilton Beach Commercial ® and the Proctor Silex Commercial ® brands and we have multi-year license agreements to design, sell and distribute Sunkist ® commercial juicers and sectionizers and Numilk ® plant-based milk makers.
Removed
The primary system offered is the Smart Sharps Bin™ from Hamilton Beach Health ® .
Added
During 2025, we continued to diversify our sourcing base across the Asia-Pacific region, enabling us to shift procurement to countries that best serve our economic interests. While we continued to purchase a majority of our finished products from suppliers in China, this supply chain expansion allows the Company the necessary flexibility in the future.
Removed
Our Hamilton Beach Health ® brand completes primarily in the U.S. with additional operations in Europe. Government Regulation Our operations are subject to various laws and regulations administered by federal, state, local and foreign government agencies, including laws and regulations related to health, safety and environmental matters.
Added
Our Hamilton Beach Health ® brand competes primarily in the U.S. with additional operations in Europe. The intellectual property of our Hamilton Beach Health ® business is important to the operations of our Health segment.
Removed
Information about our Executive Officers The following table sets forth, as of February 26, 2025, the name, age, current position and principal occupation and employment during the past five years of the Company’s executive officers. EXECUTIVE OFFICERS OF THE COMPANY Name Age Positions R.
Added
EXECUTIVE OFFICERS OF THE COMPANY Name Age Positions R.
Removed
(a steel and chemical production and distribution company), (from June 2020 to August 2021), Vice President, Corporate Administration of Ascent Industries Co. (from prior to 2020 to June 2020) 4 Table of Contents
Added
(a steel and chemical production and distribution company) (from prior to 2021 to August 2021) Andrew C. Carington 57 Senior Vice President, General Counsel and Secretary of Hamilton Beach Holding (from May 2025), Senior Vice President and General Counsel of Hamilton Beach Holding (from March 2025 to May 2025), Chief Legal Officer and Secretary of MediaCo Holding Inc.
Added
(a multimedia company focused on radio and digital advertising, premium programming and events) (from October 2024 to March 2025), Chief Legal Officer and General Counsel of Standard Media Group LLC (a diversified national media company) (from prior to 2021 to March 2025)

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

48 edited+10 added−15 removed91 unchanged
Biggest changeWe are continually evaluating the impact of the current and any possible new tariffs on our supply chain, costs, sales and profitability and are implementing strategies to mitigate anticipated impact, including reviewing sourcing options and seeking alternate sources of supply in various countries outside of China, filing requests for exclusion from the tariffs for certain product lines and working with our suppliers and customers.
Biggest changeWe continually evaluate the impact of existing and potential trade actions on our supply chain, costs, sales and profitability and pursue mitigation strategies, including evaluating sourcing options outside of China, working with suppliers and customers on cost recovery, and submitting tariff exclusion requests where available; however, we can provide no assurance that any mitigation strategies will be successful or sufficient to offset higher costs or related impacts.
Failure to comply with such certification or labeling requirements could result in additional re-design expenses, fines, or product liability claims. Our expansion into a new industry through the acquisition involves the collection, use, and storage of personal data, including sensitive health-related information, in connection with the development and operation of our digitally connected devices.
Failure to comply with such certification or labeling requirements could result in additional re-design expenses, fines, or product liability claims. Our expansion into a new industry through the acquisition of HealthBeacon involves the collection, use, and storage of personal data, including sensitive health-related information, in connection with the development and operation of our digitally connected devices.
In addition, for certain products in our Hamilton Beach Health® business, we may be subject to detailed laws and regulations regarding, among other matters, research and development, clinical investigations, product approvals and manufacturing, marketing and promotion, sampling, distribution, record-keeping, storage and disposal practices, and we may face additional compliance costs and unexpected challenges in complying with these laws and regulations.
In addition, for certain products in our Hamilton Beach Health ® business, we may be subject to laws and regulations regarding, among other matters, research and development, clinical investigations, product approvals and manufacturing, marketing and promotion, sampling, distribution, record-keeping, storage and disposal practices, and we may face additional compliance costs and unexpected challenges in complying with these laws and regulations.
Increasing governmental and societal attention to environmental, social and governance matters has resulted in new laws and regulatory requirements, including expanded disclosure obligations that continue to increase the complexity of our reporting requirements. For example, we are required to comply with the U.S.
Increasing governmental and societal attention to environmental and social matters has resulted in new laws and regulatory requirements, including expanded disclosure obligations that continue to increase the complexity of our reporting requirements. For example, we are required to comply with the U.S.
Our business is dependent on key customers and the loss of, or significant decline in business from, one or more of our key customers could materially reduce our revenue and profitability and our ability to sustain or grow our business. We rely on several key customers.
Our business is dependent on key customers and the loss of, or significant decline in business from, one or more of our key customers could materially reduce our revenue and profitability and our ability to sustain or grow our business. We rely on several key customers in our consumer business.
While we are not aware of any cybersecurity incidents that have occurred since the beginning of 2024 that have materially affected, or are reasonably likely to materially affect us, including our results of operations or financial condition, any one or more future cybersecurity incidents could have a material adverse effect on our financial condition or results of operations.
While we are not aware of any cybersecurity incidents that have occurred since the beginning of 2025 that have materially affected, or are reasonably likely to materially affect us, including our results of operations or financial condition, any one or more future cybersecurity incidents could have a material adverse effect on our financial condition or results of operations.
Failure to maintain our reputation and brand image through any of these factors, including product quality issues, recalls, or negative public perception, could have a material adverse effect on our business, financial condition, results of operations and cash flows. Financial Risks Our financing arrangements contain various restrictions that could limit operating flexibility.
Failure to maintain our reputation and brand image through any of these factors, including product quality issues, recalls, or negative public perception, could have a material adverse effect on our business, financial condition, results of operations and cash flows. 10 Table of Contents Financial Risks Our financing arrangements contain various restrictions that could limit operating flexibility.
If an unfavorable ruling were to occur, there exists the possibility of an adverse impact on the Company’s reputation, financial position, results of operations and cash flows of the period in which the ruling occurs, or in future periods. 11 Table of Contents Our intellectual property rights could be infringed and adverse events regarding licensed intellectual property could harm our business.
If an unfavorable ruling were to occur, there exists the possibility of an adverse impact on the Company’s reputation, financial position, results of operations and cash flows of the period in which the ruling occurs, or in future periods. Our intellectual property rights could be infringed and adverse events regarding licensed intellectual property could harm our business.
These liabilities may not arise, if at all, until years after we sold these operations and could require us to incur significant additional expenses, which could materially adversely affect our results of operations and financial condition. The Company is subject to litigation risk which could adversely affect our financial condition, results of operations and liquidity.
These liabilities may not arise, if at all, until years after we sold these operations and could require us to incur significant additional expenses, which could materially adversely affect our results of operations and financial condition. 11 Table of Contents The Company is subject to litigation risk which could adversely affect our financial condition, results of operations and liquidity.
Because such family members could prevent other stockholders from exercising significant influence over significant corporate actions, the Company may be a less attractive takeover target, which could adversely affect the market price of its common stock. Item 1B. UNRESOLVED STAFF COMMENTS None. 14 Table of Contents
Because such family members could prevent other stockholders from exercising significant influence over significant corporate actions, the Company may be a less attractive takeover target, which could adversely affect the market price of its common stock. Item 1B. UNRESOLVED STAFF COMMENTS None.
In particular, product recalls may result in a decline in sales for a particular product. Failure to comply with public health, consumer protection and other regulations could affect our reputation, revenue and profitability. Some jurisdictions require that products be listed by UL, a not-for-profit organization that sets safety standards for products, or other similar recognized laboratories.
In particular, product recalls may result in a decline in sales for a particular product. 12 Table of Contents Failure to comply with public health, consumer protection and other regulations could affect our reputation, revenue and profitability. Some jurisdictions require that products be listed by UL, a not-for-profit organization that sets safety standards for products, or other similar recognized laboratories.
These laws and regulations apply to many aspects of our business, including the manufacture, safety, sourcing, labeling, storing, transportation, marketing, advertising, distribution, pricing and sale of our products. Additional regulations govern environmental matters, relations with distributors and retailers, employment, privacy, trade practices and regulation of per- and polyfluoroalkyl substances (PFAS) and other contaminants.
These laws and regulations apply to many aspects of our business, including the manufacture, safety, sourcing, labeling, storing, transportation, marketing, advertising, distribution, pricing and sale of our products. Additional regulations govern environmental matters, relations with distributors and retailers, employment, privacy, trade practices and regulation of PFAS, lead and other contaminants.
During fiscal 2024, Walmart and Amazon.com accounted for approximately 29% and 24% of our revenue, respectively. Although we have long-established relationships with many customers, including Walmart and Amazon, we do not have any long-term supply contracts with these customers, and purchases are generally made using individual purchase orders.
During fiscal 2025, Walmart and Amazon.com accounted for approximately 29% and 19% of our revenue, respectively. Although we have long-established relationships with many customers, including Walmart and Amazon.com, we do not have any long-term supply contracts with these customers, and purchases are generally made using individual purchase orders.
We sell a substantial quantity of products to mass merchandisers, ecommerce retailers, national department stores, variety store chains, warehouse clubs, specialty home retailers and other retail outlets. As a result, these retailers generally have a large selection of small electric household and specialty housewares appliance suppliers from which to choose.
We sell a substantial quantity of products to mass merchandisers, ecommerce retailers, department stores, warehouse clubs, specialty home retailers and other retail outlets. As a result, these retailers generally have a large selection of small electric household and specialty housewares appliance suppliers from which to choose.
Hamilton Beach Holding has two classes of common stock: Company Class A common stock (“Class A Common”) and Class B common stock (“Class B Common”). Holders of Class A Common are entitled to cast one vote per share and, as of December 31, 2024, accounted for approximately 21.6% of the voting power of the Company.
Hamilton Beach Holding has two classes of common stock: Company Class A common stock (“Class A Common”) and Class B common stock (“Class B Common”). Holders of Class A Common are entitled to cast one vote per share and, as of December 31, 2025, accounted for approximately 21.5% of the voting power of the Company.
Any failure to adequately safeguard personal data, or a significant breach in our data security systems, could expose us to legal liability, damage our reputation, and result in regulatory penalties. 12 Table of Contents Compliance with multiple, and potentially conflicting, international laws and regulations, including anti-corruption laws, may be difficult, burdensome or expensive.
Any failure to adequately safeguard personal data, or a significant breach in our data security systems, could expose us to legal liability, damage our reputation, and result in regulatory penalties. Compliance with multiple, and potentially conflicting, domestic and international laws and regulations, including anti-corruption laws, may be difficult, burdensome or expensive.
We may not be able to acquire businesses and develop products that will contribute positively to our earnings. Anticipated synergies may not materialize, cost savings may be less than expected, sales of products may not meet expectations or acquired businesses may carry unexpected liabilities.
We may not be able to acquire businesses and develop products that will contribute positively to our earnings. Anticipated synergies may not materialize, cost savings may be less than expected, product revenues may not meet expectations or acquired businesses may carry unexpected liabilities.
Additionally, our exposure to rising interest rates subjects us to increased debt obligations with respect to existing floating rate debt during periods where such rates are in effect. 10 Table of Contents We are subject to foreign currency exchange risk.
Additionally, our exposure to rising interest rates subjects us to increased debt obligations with respect to existing floating rate debt during periods where such rates are in effect. We are subject to foreign currency exchange risk.
In some cases, we use a single supplier to source a single product. An unforeseen disruption in the supplier’s operations could impact our ability to deliver products to customers in a timely manner to meet demand. We may experience significant delays while locating a new supplier, if able to at all, which could result in higher costs.
An unforeseen disruption in the supplier’s operations could impact our ability to deliver products to customers in a timely manner to meet demand. We may experience significant delays while locating a new supplier, if able to at all, which could result in higher costs.
Sales of our products fluctuate based on consumer spending patterns. Consumer spending patterns are subject to general economic conditions affecting disposable consumer income, such as unemployment rates, business conditions, inflation rates, interest rates, levels of consumer confidence, energy prices, mortgage rates, the level of consumer debt and taxation.
Consumer spending patterns are subject to general economic conditions affecting disposable consumer income, such as unemployment rates, business conditions, inflation rates, interest rates, levels of consumer confidence, energy prices, mortgage rates, the level of consumer debt and taxation.
On the basis of this common stock ownership, certain members of the Company’s extended founding family could exercise 80.5% of the Company’s total voting power.
On the basis of this common stock ownership, certain members of the Company’s extended founding family could exercise 81.0% of the Company’s total voting power.
Holders of Class B Common are entitled to cast ten votes per share and, as of December 31, 2024, accounted for the remaining voting power of the Company. As of December 31, 2024, certain members of the Company’s extended founding family held approximately 33.8% of Class A Common and 93.3% of Class B Common.
Holders of Class B Common are entitled to cast ten votes per share and, as of December 31, 2025, accounted for the remaining voting power of the Company. As of December 31, 2025, certain members of the Company’s extended founding family held approximately 34.4% of Class A Common and 93.7% of Class B Common.
Changes in consumer shopping trends and changes in distribution channels could result in lost market share and decreased revenue and profitability. Traditional brick-and-mortar retail channels have experienced low growth or declines in recent years, while the ecommerce channel has experienced significant growth.
As a result of this competition, we could lose market share and revenue. 6 Table of Contents Changes in consumer shopping trends and changes in distribution channels could result in lost market share and decreased revenue and profitability. Traditional brick-and-mortar retail channels have experienced low growth or declines in recent years, while the ecommerce channel has experienced significant growth.
As a result of dependence on key customers, we could experience a material adverse effect on our revenue and profitability if any of the following were to occur: • the insolvency or bankruptcy of any key customer; • a declining market in which customers materially reduce orders or demand lower prices; or • a strike or work stoppage at a key customer facility, which could affect both its suppliers and customers.
In addition, we may be unable to continually meet the needs of those customers, which could damage our customer relationships and result in reduced new orders. 5 Table of Contents As a result of dependence on key customers, we could experience a material adverse effect on our revenue and profitability if any of the following were to occur: • the insolvency or bankruptcy of any key customer; • a declining market in which customers materially reduce orders or demand lower prices; or • a strike or work stoppage at a key customer facility, which could affect both its suppliers and customers.
There are several possibilities that could cause a disruption to our distribution network, including but not limited to, acts of God, severe weather, impacts from climate change, labor shortages, equipment failures and lack of access to equipment, or cybersecurity incidents.
There are several possibilities that could cause a disruption to our distribution network, including but not limited to, acts of God, severe weather, natural disasters, labor shortages, equipment failures and lack of access to equipment, supplier and upstream supply chain disruptions, or cybersecurity incidents.
During fiscal 2024, our five largest customers accounted for a total of approximately 65% of our revenue. With the continuing trend towards the concentration of the industry and our branded small electric household and specialty housewares appliance sales among fewer retailers, we are increasingly dependent upon fewer customers whose bargaining strength is growing as a result of this concentration.
With the continuing trend towards the concentration of the industry and our brand name small electric household and specialty housewares appliance sales among fewer retailers, we are increasingly dependent upon fewer customers whose bargaining strength is growing as a result of this concentration.
Employment and retention of qualified personnel, particularly senior management and skilled professionals with experience in our business, operations, engineering, technology and industry, is important to the successful conduct of our business.
Employment and retention of qualified personnel, particularly senior management and skilled professionals with experience in our business, operations, engineering, technology and industry, is important to the successful conduct of our business. Our success depends upon our ability to recruit, hire, train and retain current and additional skilled and experienced personnel.
In addition, we compete with our retail customers, who use their own private label brands, and importers and foreign manufacturers of unbranded products. Some competitors may be willing to reduce prices and accept lower profit margins to compete. As a result of this competition, we could lose market share and revenue.
In addition, we compete with our retail customers, who use their own private label brands, and importers and foreign manufacturers of non-brand name products. Some competitors may be willing to reduce prices and accept lower profit margins to compete.
Any significant failure to obtain quality products, in sufficient quantities, on a timely basis, and at an affordable cost or any significant delays or interruptions of supply would have a material adverse effect on our revenue and profitability.
Any supplier’s inability to timely deliver products that meet desired specifications or any unanticipated changes in suppliers could be disruptive and costly. Any significant failure to obtain quality products, in sufficient quantities, on a timely basis, and at an affordable cost or any significant delays or interruptions of supply would have a material adverse effect on our revenue and profitability.
Given the uncertainty regarding the scope and duration of these trade actions by the U.S. government or other countries, as well as the potential for additional trade actions, the impact on our operations and results remains uncertain. Risks Related to Our Common Stock The amount and frequency of dividend payments made on the Company’s common stock could change.
Given the uncertainty regarding the scope, timing, enforcement and duration of current or future trade actions by the U.S. government or other countries, and the possibility of additional, retaliatory or rapidly implemented measures, the impact on our operations and results remains uncertain and could be material. 14 Table of Contents Risks Related to Our Common Stock The amount and frequency of dividend payments made on the Company’s common stock could change.
If our key customers’ websites or systems are disrupted for a considerable amount of time, whether due to a cybersecurity incident or other disruption, we could experience lost sales to consumers and the key customers’ inability to submit new purchase orders, which could result in reduced revenue and profitability. 5 Table of Contents The concentration of our branded small electric household and specialty housewares appliance sales among a few retailers and the trend toward private label brands could materially reduce revenue and profitability.
If our key customers’ websites or systems are disrupted for a considerable amount of time, whether due to a cybersecurity incident or other disruption, we could experience lost sales to consumers and the key customers’ inability to submit new purchase orders, which could result in reduced revenue and profitability.
If we were to lose, or experience a significant decline in business from any major customer, or if any major customers were to go bankrupt, we might be unable to find alternate distribution outlets.
If we were to lose, or experience a significant decline in business from any major customer, or if any major customers were to go bankrupt, we might be unable to find alternative distribution outlets. Additionally, we are vulnerable to a decline in revenue in the event of cybersecurity incidents at any of our key customers.
Entry into new markets or categories could subject our business to additional regulations and higher compliance costs. Violations of laws or regulations could damage our reputation and result in substantial financial penalties and operational limitations. Government regulations could impose costly requirements on our business.
Violations of laws or regulations could damage our reputation and result in substantial financial penalties and operational limitations. 13 Table of Contents Government regulations could impose costly requirements on our business.
Over the past several years, the U.S. government has taken a number of trade actions that impact or could impact our operations, including imposing tariffs on certain goods imported into the U.S. In addition, several governments, including the European Union, China and India, have imposed tariffs on certain goods imported from the United States.
Over the past several years, the U.S. government has taken a number of trade actions that impact or could impact our operations, including the imposition of tariffs on certain goods imported into the United States and changes to import/export regulations, sanctions and other trade controls.
The strength of the economy in the U.S., and to a lesser degree in Canada and Mexico, has a significant impact on our performance. Weakness in consumer confidence and poor financial performance by mass merchandisers, ecommerce retailers, warehouse clubs, department stores or any of our other customers could result in reduced revenue and profitability.
Weakness in consumer confidence and poor financial performance by mass merchandisers, ecommerce retailers, warehouse clubs, department stores or any of our other customers could result in reduced revenue and profitability. A general slowdown in the consumer sector could result in additional pricing and marketing support pressures on the Company.
We endeavor to design our products to meet the certification requirements of, and to be certified in, each of the jurisdictions in which they are sold. Some jurisdictions have begun to require labeling of products that contain per- and polyfluoroalkyl substances (PFAS) which leads to additional costs and efforts.
We endeavor to design our products to meet the certification requirements of, and to be certified in, each of the jurisdictions in which they are sold.
If our systems are damaged, or fail to function properly, we may have to make monetary investments to repair or replace the systems and could endure delays in operations.
Additionally, the increase in hybrid working where employees, including third-party employees, access technology infrastructure remotely may create additional information technology and data security risks. If our systems are damaged, or fail to function properly, we may have to make monetary investments to repair or replace the systems and could endure delays in operations.
Failure to obtain anticipated orders or delays or cancellations of orders or significant pressure to reduce prices from key customers could impair our ability to sustain or grow our business. In addition, we may be unable to continually meet the needs of those customers, which could damage our customer relationships and result in reduced new orders.
Failure to obtain anticipated orders or delays or cancellations of orders or significant pressure to reduce prices from key customers could impair our ability to sustain or grow our business.
We are dependent on third-party suppliers for the manufacturing and distribution of our products. Our ability to select reliable suppliers that provide timely deliveries of quality products will impact our success in meeting customer demand. Any supplier’s inability to timely deliver products that meet desired specifications or any unanticipated changes in suppliers could be disruptive and costly.
We are dependent on third-party suppliers for the manufacturing and distribution of our products. Our suppliers are primarily located in the Asia-Pacific region, with approximately two-thirds of our suppliers currently based in China. Our ability to select reliable suppliers that provide timely deliveries of quality products will impact our success in meeting customer demand.
We have invested significant resources in our selling and marketing capabilities, while maintaining our presence in traditional brick-and-mortar retail channels.
Rapid technological changes and advancements, including developments in artificial intelligence and agentic shopping, could also impact our ability to remain competitive. We have invested significant resources in our selling and marketing capabilities, while maintaining our presence in traditional brick-and-mortar retail channels.
Competitors’ new products may beat our products to market, be higher quality or more reliable, be more effective with more features, obtain better market acceptance or render our products obsolete.
In addition, the development of new products in our Hamilton Beach Health ® business may require significant lead times for research and development, clinical investigations and product approvals. Competitors’ new products may beat our products to market, be higher quality or more reliable, be more effective with more features, obtain better market acceptance or render our products obsolete.
The foregoing factors could have a material adverse effect on our ability to maintain or increase the supply of products, which may result in material increases in our expenses and decreases in our revenue and profitability. While our suppliers are primarily located in the Asia-Pacific region, approximately three-fourths of our suppliers are currently based in China.
The foregoing factors could have a material adverse effect on our ability to maintain or increase the supply of products, which may result in material increases in our expenses and decreases in our revenue and profitability. Certain products rely upon a single third-party supplier. In some cases, we use a single supplier to source a single product.
Also, receipt of approval in one country does not guarantee approval by the FDA or any other foreign regulatory agency. 13 Table of Contents U.S. government trade actions could have a material adverse effect on our subsidiaries, financial position, and results of operation.
Also, receipt of approval in one country does not guarantee approval by the FDA or any other foreign regulatory agency. Changes in U.S. and foreign trade policies, tariffs and other government actions may increase our costs, disrupt our supply chain or otherwise adversely affect our business, financial condition or results of operations.
However, if we are not successful in utilizing ecommerce channels that consumers may prefer, we may experience a loss in market share and decreased revenue and profitability. 6 Table of Contents The markets for our products are dependent on consumer spending and typically peak in the fourth quarter, which could result in significant variations in revenue and profitability.
The markets for our products are dependent on consumer spending and typically peak in the fourth quarter, which could result in significant variations in revenue and profitability. Sales of our products fluctuate based on consumer spending patterns.
You should not interpret the disclosure of any risk factor to imply that the risk has not already materialized. Industry Risks Our business is sensitive to the strength of the North American consumer markets and weakness in these markets could adversely affect our business.
Industry Risks Our business is sensitive to the strength of the North American consumer markets and weakness in these markets could adversely affect our business. The strength of the economy in the U.S., and to a lesser degree in Canada and Mexico, has a significant impact on our performance.
These factors may affect the cost of our products, and we may not be able to pass those costs on to our customers. Periods of inflation, rising interest rates, and shifts in consumer spending could cause the insolvency or bankruptcy of certain retail customers, which may result in material decreases in our revenue and profitability.
These factors may affect the cost of our products, and we may not be able to pass those costs on to our customers.
Cybersecurity threat bad actors also may attempt to exploit vulnerabilities in software that is commonly used by companies in cloud-based services and bundled software. Additionally, the increase in hybrid working where employees, including third-party employees, access technology infrastructure remotely may create additional information technology and data security risks.
Cybersecurity threat bad actors also may attempt to exploit vulnerabilities in software that is commonly used by companies in cloud-based services and bundled software, as well as vulnerabilities that may exist in rapidly emerging technologies, such as artificial intelligence.
Our ability to successfully expand into the health and wellness market is dependent upon several factors, including our ability to attract new customers and retain existing customers, provide customers with high-quality support, and enter into strategic partnerships with pharmaceutical and specialty pharmacy companies.
Our ability to successfully expand into the health and wellness market is dependent upon several factors, including our ability to expand through new client launches, broaden public offerings for additional medications, and implement digital improvements that improve the patient experience.
Removed
A general slowdown in the consumer sector could result in additional pricing and marketing support pressures on the Company.
Added
The concentration of our brand name small electric household and specialty housewares appliance sales among a few retailers could materially reduce revenue and profitability. During fiscal 2025, our five largest customers accounted for a total of approximately 62% of our revenue.
Removed
Additionally, as cybersecurity incidents are increasing in frequency, we are vulnerable to a decline in revenue in the event of cybersecurity incidents at any of our key customers.
Added
However, if we are not successful in utilizing ecommerce channels that consumers may prefer, or anticipate or effectively integrate these emerging technologies into our operations, we may experience a loss in market share and decreased revenue and profitability.
Removed
In addition, the development of new products in our Hamilton Beach Health ® business may require significant lead times for research and development, clinical investigations and product approvals, as well as significant capital investments.
Added
In addition, an increasing number of states and other jurisdictions have adopted or proposed laws that restrict or ban the use of per- and polyfluoroalkyl substances (PFAS), impose limits on lead and other regulated substances, or require labeling or disclosure of the presence of these and certain other chemical or contaminants in consumer products, leading to additional costs and efforts.
Removed
Historically, the costs of our products have fluctuated due to cost pressures resulting from economic conditions. As an example, our products require a substantial amount of plastic. Because the primary resource used in plastic is petroleum, the cost and availability of plastic varies to a great extent with the price of petroleum.
Added
As we expand sourcing and manufacturing activities outside of China, there could be a need to increase international travel and cross-border assignments for employees and contractors. These activities may subject us to additional immigration, visa and work-authorization requirements in multiple jurisdictions. Compliance with immigration laws can be complex and may involve administrative costs, processing delays and limitations on personnel mobility.
Removed
When the prices of petroleum, as well as steel, aluminum and copper, increase significantly, supplier price increases may materially reduce our profitability if we are unable to pass price increases on to our customers.
Added
Any failure to obtain required permits or to comply with immigration and work-authorization rules could delay our ability to oversee suppliers and operations in new markets, increase compliance costs or result in fines or other regulatory penalties. Entry into new markets or categories could subject our business to additional regulations and higher compliance costs.
Removed
The Company has also experienced increased transportation costs in the past due to global supply chain challenges, including the cost of ocean freight from China, and could be subject to future increases in transportation costs. In addition, our ability to meet customers’ demands depends, in part, on our ability to obtain the timely and adequate shipment of our products.
Added
Several foreign governments, including the European Union, China and India, have also imposed tariffs or other trade measures on certain goods imported from the United States. The current domestic and international political and regulatory environment, including changes in administrations, government policy shifts and evolving global trade relations, creates uncertainty regarding future trade laws, regulations and tariff regimes.
Removed
Certain transportation industry vendors may experience capacity constraints due to increases in volume, shipping availability, port congestion, port strikes, rail strikes, labor shortages or other factors. If our transportation industry vendors become capacity constrained, then we may have to identify new vendors or explore alternative order fulfillment methods to ensure we have sufficient shipping capabilities.
Added
Additional changes, including new, increased or retaliatory tariffs, sanctions, quotas or other trade barriers, may be proposed or implemented with limited notice. Our suppliers are primarily located in the Asia-Pacific region, with the majority based in China.
Removed
We cannot predict if we will be able to obtain alternative shipping sources within the time frames that we require and at a comparable cost, which could lead to significant delays in shipping our products and additional costs.
Added
In 2025, the U.S. government announced substantial new tariffs on many countries, including reciprocal tariffs targeting countries with which the United States has significant trade deficits. As a result, many of our product lines are subject to multiple tariffs imposed by the U.S. government on imports from China and other Asia-Pacific countries.
Removed
As we take steps to diversify the geographic location of our suppliers, finding suppliers outside of China could result in additional risks, including additional compliance requirements with foreign laws and taxes, obtaining distribution and administrative support and training new personnel. Certain products rely upon a single third-party supplier.
Added
There is uncertainty as to whether any, or all, of these tariffs will be fully implemented or sustained. These actions and any future modifications may increase our costs of goods sold, affect our pricing decisions, create volatility in customer order patterns, or impact competitiveness across product categories.
Removed
Our success depends upon our ability to recruit, hire, train and retain current and additional skilled and experienced personnel in a challenging labor market that may require increased wage costs.
Added
In addition, changes in tariff rules, administration and enforcement may increase the risk of unanticipated duties, interest, penalties, shipment delays or other supply chain disruptions.
Removed
We are in the process of implementing the enterprise resource planning (“ERP”) system which was previously installed in the U.S. at our Canada subsidiary.
Removed
Any significant disruption, delay or deficiency in the design and implementation of the ERP system could adversely affect our ability to process orders, ship products, send invoices and track payments, fulfill contractual obligations or otherwise operate our business.
Removed
As the majority of our products are imported into the U.S. from China, many of our product lines are subject to the tariffs imposed under Section 301 of U.S. trade law that have been applied to separate lists of Chinese goods imported into the United States, beginning during the first Trump Administration.
Removed
The Section 301 tariffs on goods covered by lists 1, 2, 3 and 4a affect approximately 40% of our total purchases on an annualized basis. The second Trump Administration has announced new changes to the U.S. government’s tariff policy, including new tariffs on China, Canada and Mexico.
Removed
We can provide no assurance that any strategies we implement to mitigate the impact of such tariffs or other trade actions will be successful.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

5 edited+0 added−1 removed8 unchanged
Biggest changeThrough these roles the VP, IT Business Solutions has implemented information technology security and privacy policies across multiple infrastructure and application platforms as well as identity and access management enhancements. In order to enable the Company to prevent, detect, mitigate and remediate cybersecurity incidents, our security monitoring and protection systems are continuously monitored.
Biggest changeOur cybersecurity risk management processes are led by our VP, Information Technology, and Group Manager, Security and Infrastructure and the Company has implemented security and privacy policies across multiple infrastructure and application platforms as well as identity and access management enhancements.
As of the filing of this Form 10-K, we are not aware of any cybersecurity incidents that have occurred since the beginning of 2024 that have materially affected, or are reasonably likely to materially affect us, including our business strategy, results of operations or financial condition.
As of the filing of this Form 10-K, we are not aware of any cybersecurity incidents that have occurred since the beginning of 2025 that have materially affected, or are reasonably likely to materially affect us, including our business strategy, results of operations or financial condition.
Risk Factors of this Annual Report on Form 10-K, which information is incorporated herein by reference. Governance Cybersecurity is among our Board’s oversight priorities. Through their oversight role, the Board has allocated oversight of cybersecurity risk to our Audit Review Committee of the Board.
Risk Factors of this Annual Report on Form 10-K, which information is incorporated herein by reference. 15 Table of Contents Governance Cybersecurity is among our Board’s oversight priorities. Through their oversight role, the Board has allocated oversight of cybersecurity risk to our Audit Review Committee of the Board.
The VP, IT Business Solutions is kept informed in accordance with our Incident Response Plan and reports matters to the Audit Review Committee as necessary.
The VP, Information Technology, is kept informed in accordance with our Incident Response Plan and reports matters to the Audit Review Committee as necessary.
Our cybersecurity risk management processes are led by our VP, IT Business Solutions who has over 23 years of experience in various roles involving managing information systems and cybersecurity functions and developing cybersecurity strategies.
The VP, Information Technology has many years of experience in various roles involving managing information systems and cybersecurity functions and developing cybersecurity strategies. In order to enable the Company to prevent, detect, mitigate and remediate cybersecurity incidents, our security monitoring and protection systems are continuously monitored.
Removed
Additionally, we have a Cyber Security Task Force in place to support our VP, IT Business Solutions that is comprised of individuals across our various departments within our organization including information systems, legal, finance, internal audit, sales and marketing, engineering and supply chain teams which meets regularly to further advance our cybersecurity strategy. 15 Table of Contents

Item 2. Properties

Properties — owned and leased real estate

2 edited+0 added−0 removed0 unchanged
Biggest changePROPERTIES The following table presents the principal distribution and office facilities owned or leased: Segment (use is indicated by ‘X’) Home and Commercial Products Health Facility Location Owned/Leased Function(s) (3) X X Glen Allen, Virginia Leased Global headquarters X Geel, Belgium (1) Distribution center X Shenzhen, People’s Republic of China (1) Distribution center X Mexico City, Mexico Leased Mexico sales and administrative headquarters X Belleville, Ontario, Canada Leased Distribution center X X Southern Pines, North Carolina Owned Service center for customer returns; distribution center; call center X Shenzhen, People’s Republic of China Leased Administrative office X Markham, Ontario, Canada Leased Canada sales and administration headquarters X Tultitlan, Mexico (1) Distribution center X Byhalia, Mississippi Leased Distribution centers (2) X Dublin, Ireland Leased Sales and administration headquarters (1) This facility is not owned or leased by HBB.
Biggest changePROPERTIES The following table presents the principal distribution and office facilities owned or leased: Segment (use is indicated by ‘X’) Home and Commercial Products Health Facility Location Owned/Leased Function(s) (2) X X Glen Allen, Virginia Leased Global headquarters X Byhalia, Mississippi Leased Distribution center X X Southern Pines, North Carolina Owned Service center for customer returns; distribution center; call center X Geel, Belgium (1) Distribution center X Belleville, Ontario, Canada Leased Distribution center X Markham, Ontario, Canada Leased Canada sales and administration headquarters X Shenzhen, People’s Republic of China (1) Distribution center X Shenzhen, People’s Republic of China Leased Administrative office X Dublin, Ireland Leased Sales and administration headquarters X Mexico City, Mexico Leased Mexico sales and administrative headquarters X Tultitlan, Mexico (1) Distribution center (1) This facility is not owned or leased by HBB.
This facility is managed by a third-party distribution provider. (2) The Company leases two distribution facilities in Byhalia, Mississippi. (3) Sales and distribution offices are also leased in several cities in the U.S. and China.
This facility is managed by a third-party distribution provider. (2) Sales and distribution offices are also leased in several cities in the U.S. and China.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed0 unchanged
Biggest changeItem 3. LEGAL PROCEEDINGS The information required by this Item 3 is set forth in Note 10 “Contingencies” included in our Financial Statements and Supplementary Data contained in Part IV of this Form 10-K and is hereby incorporated herein by reference to such information. Item 4. MINE SAFETY DISCLOSURES None. PART II
Biggest changeItem 3. LEGAL PROCEEDINGS The information required by this Item 3 is set forth in Note 10 “Contingencies” included in our Financial Statements and Supplementary Data contained in Part IV of this Form 10-K and is hereby incorporated herein by reference to such information. Item 4. MINE SAFETY DISCLOSURES None. PART II 16 Table of Contents

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

10 edited+4 added−3 removed14 unchanged
Biggest changeIssuer Purchases of Equity Securities (a) (b) (c) (d) Period Total Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of the Publicly Announced Program Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program Month #1 October 1 to 31, 2024 33,781 $ 29.49 33,781 $ 14,693,346 Month #2 November 1 to 30, 2024 94,591 $ 21.95 94,591 $ 12,617,363 Month #3 December 1 to 31, 2024 68,268 $ 17.12 68,268 $ 11,448,823 196,640 $ 21.57 196,640 $ 11,448,823 (1) Average price paid per share includes costs associated with the repurchases but excludes the 1% excise tax on stock repurchases imposed by the Inflation Reduction Act of 2022.
Biggest changeIssuer Purchases of Equity Securities (1) (a) (b) (c) (d) Period Total Number of Shares Purchased Average Price Paid per Share (2) Total Number of Shares Purchased as Part of the Publicly Announced Program Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program Month #1 October 1 to 31, 2025 33,066 $ 14.73 33,066 $ 3,728,702 Month #2 November 1 to 30, 2025 26,472 $ 14.33 26,472 $ 3,349,286 Month #3 December 1 to 31, 2025 12,201 $ 16.28 12,201 $ 3,150,650 71,739 $ 14.85 71,739 $ 3,150,650 (1) In November 2023, the Company’s Board approved a stock repurchase program authorizing the repurchase of up to $25 million of the Company’s Class A Common, which expired on December 31, 2025.
During 2024, there were no material adjustments to the aforesaid estimates and our past results of operations have not been materially affected by a change in these estimates. Although there can be no assurances, we are not aware of any circumstances that would be reasonably likely to materially change these estimates in the future.
During 2025, there were no material adjustments to the aforesaid estimates, and our past results of operations have not been materially affected by a change in these estimates. Although there can be no assurances, we are not aware of any circumstances that would be reasonably likely to materially change these estimates in the future.
A discussion of our results of operations for the year ended December 31, 2023 compared to the year ended December 31, 2022 is included in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2023.
A discussion of our results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023 is included in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2024.
The Class B Common is convertible into Class A Common on a one-for-one basis.
Class B Common is convertible into Class A Common on a one-for-one basis.
The following discussion and analysis focuses on our financial results for the years ended December 31, 2024 and 2023 and year-to-year comparisons between these years.
The following discussion and analysis focuses on our financial results for the years ended December 31, 2025 and 2024 and year-to-year comparisons between these years.
The expected value method involves a probability weighted determination of the expected amount, whereas the most likely amount method identifies the single most likely outcome in a range of possible amounts. We monitor our estimates of variable consideration, which includes returns and price concessions, and periodically make adjustments to the carrying amounts as appropriate.
The expected value method involves a probability weighted determination of the expected amount, whereas the most likely amount method identifies the single most likely outcome in a range of possible amounts. We monitor our estimates of variable consideration, which includes returns and price concessions, and periodically adjust the carrying amounts as appropriate.
The total combined share repurchases from the stock repurchase program and the Incentive Plan during the year ended December 31, 2024, was 668,785 shares for an aggregate purchase price of $14.1 million (excluding the 1% excise tax as a result of the Inflation Reduction Act of 2022).
The total combined share repurchases from the stock repurchase program and the Incentive Plan during the year ended December 31, 2025, was 506,925 shares for an aggregate purchase price of $9.0 million (excluding the 1% excise tax as a result of the Inflation Reduction Act of 2022).
During the fourth quarter of 2024, we repurchased 196,640 shares for an aggregate purchase price of $4.2 million. Additionally, during the year ended December 31, 2024, the Company withheld shares for tax payments due upon issuance of stock to employees under the Executive Long-Term Equity Incentive Compensation Plan (the “Incentive Plan”).
Additionally, during the year ended December 31, 2025, the Company withheld shares for tax payments due upon issuance of stock to employees under the Executive Long-Term Equity Incentive Compensation Plan (the “Incentive Plan”). During the year ended December 31, 2025, the Company repurchased 39,121 shares for an aggregate purchase price of $0.7 million pursuant to the Incentive Plan.
As of February 21, 2025, there were 700 Class A Common stockholders of record and 726 Class B Common stockholders of record. 16 Table of Contents Purchases of Equity Securities by the Issuer and Affiliated Purchasers In November 2023, our Board approved a stock repurchase program for the purchase of up to $25 million of our Class A Common outstanding starting January 1, 2024 and ending December 31, 2025.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers On November 20, 2025, the Company announced that our Board approved a stock repurchase program for the purchase of up to $25 million of our Class A Common outstanding starting January 1, 2026 and ending December 31, 2027.
During the years ended December 31, 2024, 2023 and 2022, we repurchased 638,381, 250,772 and 261,049 shares for an aggregate purchase price of $13.5 million (excluding the 1% excise tax as a result of the Inflation Reduction Act of 2022), $3.1 million and $3.0 million, respectively.
This program replaced the previous stock repurchase plan that started January 1, 2024 and ended December 31, 2025. During the years ended December 31, 2025, 2024 and 2023, we repurchased 467,804, 638,381 and 250,772 shares for an aggregate purchase price of $8.3 million, $13.5 million and $3.1 million, respectively.
Removed
This program replaced the previous stock repurchase plan that started February 22, 2022 and ended December 31, 2023.
Added
As of February 20, 2026, there were 684 Class A Common stockholders of record and 711 Class B Common stockholders of record.
Removed
During the year ended December 31, 2024, the Company repurchased 30,404 shares for an aggregate purchase price of $0.6 million pursuant to the Incentive Plan.
Added
The aggregate purchase price amounts for 2025 and 2024 are stated excluding the 1% excise tax resulting from the Inflation Reduction Act of 2022. During the fourth quarter of 2025, we repurchased 71,739 shares for an aggregate purchase price of $1.1 million.
Removed
Item 6. [RESERVED] 17 Table of Contents Item 7.
Added
On November 20, 2025, the Company announced that our Board approved a new stock repurchase program authorizing up to $25 million of our Class A Common, effective January 1, 2026 through December 31, 2027. Because the new program begins on January 1, 2026, its authorized amount is not included in the chart above.
Added
(2) Average price paid per share includes costs associated with the repurchases but excludes the 1% excise tax on stock repurchases imposed by the Inflation Reduction Act of 2022. Item 6. [RESERVED] 17 Table of Contents Item 7.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

26 edited+8 added−12 removed11 unchanged
Biggest changeMANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HAMILTON BEACH BRANDS HOLDING COMPANY (Tabular Amounts in Thousands, Except Per Share and Percentage Data) RESULTS OF OPERATIONS Our results of operations were as follows for the years ended December 31: 2024 Compared with 2023 Year Ended December 31 2024 % of Revenue 2023 % of Revenue $ Change % Change Revenue $ 654,693 100.0 % $ 625,625 100.0 % $ 29,068 4.6 % Cost of sales 484,486 74.0 % 481,949 77.0 % 2,537 0.5 % Gross profit 170,207 26.0 % 143,676 23.0 % 26,531 18.5 % Selling, general and administrative expenses 126,703 19.4 % 108,395 17.3 % 18,308 16.9 % Amortization of intangible assets 302 — % 200 — % 102 51.0 % Operating profit 43,202 6.6 % 35,081 5.6 % 8,121 23.1 % Interest expense, net 613 0.1 % 3,000 0.5 % (2,387) (79.6) % Pension termination expense 7,611 1.2 % — — % 7,611 n/m Other expense (income), net 1,602 0.2 % 385 0.1 % 1,217 316.1 % Income before income taxes 33,376 5.1 % 31,696 5.1 % 1,680 5.3 % Income tax expense 2,617 0.4 % 6,454 1.0 % (3,837) (59.5) % Net income $ 30,759 4.7 % $ 25,242 4.0 % $ 5,517 21.9 % n/m = not meaningful Effective income tax rate 7.8 % 20.4 % The following table identifies the components of the change in revenue for 2024 compared with 2023: Revenue 2023 $ 625,625 Increase (decrease) from: Unit volume and product mix 62,530 Foreign currency (2,903) Average sales price (30,559) 2024 $ 654,693 Revenue - Revenue increased $29.1 million, or 4.6% compared to the prior year due to increased unit volume and a more favorable product mix, primarily driven by the North America Consumer markets.
Biggest changeMANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HAMILTON BEACH BRANDS HOLDING COMPANY (Tabular Amounts in Thousands, Except Per Share and Percentage Data) RESULTS OF OPERATIONS Our results of operations were as follows for the years ended December 31: 2025 Compared with 2024 Year Ended December 31 2025 % of Revenue 2024 % of Revenue $ Change % Change Revenue $ 606,852 100.0 % $ 654,693 100.0 % $ (47,841) (7.3) % Cost of sales 450,699 74.3 % 484,486 74.0 % (33,787) (7.0) % Gross profit 156,153 25.7 % 170,207 26.0 % (14,054) (8.3) % Selling, general and administrative expenses 119,263 19.7 % 126,703 19.4 % (7,440) (5.9) % Amortization of intangible assets 311 0.1 % 302 — % 9 3.0 % Operating profit 36,579 6.0 % 43,202 6.6 % (6,623) (15.3) % Interest expense, net 703 0.1 % 613 0.1 % 90 14.7 % Pension termination expense — — % 7,611 1.2 % (7,611) n/m Other expense (income), net 235 — % 1,602 0.2 % (1,367) (85.3) % Income before income taxes 35,641 5.9 % 33,376 5.1 % 2,265 6.8 % Income tax expense 9,186 1.5 % 2,617 0.4 % 6,569 251.0 % Net income $ 26,455 4.4 % $ 30,759 4.7 % $ (4,304) (14.0) % n/m = not meaningful Effective income tax rate 25.8 % 7.8 % The following table identifies the components of the change in revenue for 2025 compared with 2024: Revenue 2024 $ 654,693 Increase (decrease) from: Unit volume and product mix (52,943) Foreign currency (2,238) Average sales price 7,340 2025 $ 606,852 Revenue - Total revenue decreased $47.8 million, or 7.3% compared to the prior year due to lower volumes in the Company’s U.S.
A 0.25% increase in the Base Rate would increase our estimated total annual interest payments on the HBB Facility by approximately $0.6 million. Variable interest payments could change in the event HBB decides to make voluntary repayments. Our purchase and other obligations are primarily for accounts payable, open purchase orders and accrued payroll and incentive compensation.
A 0.25% increase in the Base Rate would increase our estimated total annual interest payments on the HBB Facility by approximately $0.4 million. Variable interest payments could change in the event HBB decides to make voluntary repayments. Our purchase and other obligations are primarily for accounts payable, open purchase orders and accrued payroll and incentive compensation.
Such risks and uncertainties include, without limitation: (1) uncertain or unfavorable global economic conditions and impacts from global military conflicts; (2) the Company’s ability to source and ship products to meet anticipated demand; (3) the Company’s ability to successfully manage constraints throughout the global transportation supply chain; (4) changes in the sales prices, product mix or levels of consumer purchases of small electric and specialty housewares appliances; (5) changes in consumer retail and credit markets, including the increasing volume of transactions made through third-party internet sellers; (6) bankruptcy of or loss of major retail customers or suppliers; (7) changes in costs, including transportation costs, of sourced products; (8) delays in delivery of sourced products; (9) changes in or unavailability of quality or cost effective suppliers; (10) exchange rate fluctuations, changes in the import tariffs and monetary policies and other changes in the regulatory climate in the countries in which the Company operates or buys and/or sells products; (11) the impact of tariffs on customer purchasing patterns; (12) product liability, regulatory actions or other litigation, warranty claims or returns of products; (13) customer acceptance of, changes in costs of or delays in the development of new products; (14) increased competition, including consolidation within the industry; (15) changes in customers’ inventory management strategies; (16) shifts in consumer shopping patterns, gasoline prices, weather conditions, the level of consumer confidence and disposable income as a result of economic conditions, unemployment rates or other events or conditions that may adversely affect the level of customer purchases of the Company’s products; (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation; (18) the Company’s ability to identify, acquire or develop, and successfully integrate, new businesses or new product lines; and (19) other risk factors, including those described in the Company’s filings with the Securities and Exchange Commission, including, but not limited to, this Annual Report on Form 10-K.
Such risks and uncertainties include, without limitation: (1) uncertain or unfavorable global economic conditions and impacts from tariffs, inflation, rising interest rates, recessions or economic slowdowns; (2) changes in costs, including transportation costs and tariffs, of sourced products; (3) the Company’s ability to source and ship products to meet anticipated demand; (4) changes in or unavailability of quality or cost effective suppliers; (5) the Company’s ability to successfully manage constraints throughout the global transportation supply chain; (6) delays in delivery of sourced products; (7) changes in the sales prices, product mix or levels of purchases of small electric and specialty housewares appliances; (8) changes in consumer retail and credit markets, including the increasing volume of transactions made through third-party internet sellers; (9) bankruptcy of or loss of major retail customers or suppliers; (10) exchange rate fluctuations, changes in the import tariffs and monetary policies and other changes in the regulatory climate in the countries in which the Company operates or buys and/or sells products; (11) the impact of tariffs on customer purchasing patterns; (12) customer acceptance of, price increases or delays in the development of new products; (13) product liability, regulatory actions or other litigation, warranty claims or returns of products; (14) increased competition, including consolidation within the industry; (15) changes in customers’ inventory management strategies; (16) shifts in consumer shopping patterns, gasoline prices, weather conditions, the level of consumer confidence and disposable income as a result of economic conditions, unemployment rates or other events or conditions that may adversely affect the level of customer purchases of the Company’s products; (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation; (18) the Company’s ability to identify, acquire or develop, and successfully integrate, new businesses or new product lines; and (19) other risk factors, including those described in the Company’s filings with the Securities and Exchange Commission, including, but not limited to, this Annual Report on Form 10-K.
As of December 31, 2024, interest on outstanding loans under the HBB Facility accrues at a per annum rate equal to, at HBB’s option, either Term Secured Overnight Financing Rate (SOFR) (as defined in the HBB Facility) plus 1.65% or the Base Rate (as defined in the HBB) plus 0.00%.
As of December 31, 2025, interest on outstanding loans under the HBB Facility accrues at a per annum rate equal to, at HBB’s option, either Term Secured Overnight Financing Rate (SOFR) (as defined in the HBB Facility) plus 1.65% or the Base Rate (as defined in the HBB Facility) plus 0.00%.
As of December 31, 2024, we were in compliance with all applicable financial covenants in the HBB Facility. HBB does not expect to make voluntary repayments within the next twelve months under the HBB Facility as the rate of return to invest excess cash exceeds the average interest rate of the HBB Facility.
As of December 31, 2025, we were in compliance with all applicable financial covenants in the HBB Facility. HBB does not expect to make voluntary repayments within the next twelve months under the HBB Facility as the rate of return to invest excess cash exceeds the average interest rate of the HBB Facility.
Pension termination expense - During 2024, a one-time non-cash expense of $7.6 million was incurred in connection with the termination of the Company’s U.S. defined benefit pension plan related to the reclassification of historical unrecognized losses from Accumulated Other Comprehensive Income. Other expense (income), net - Other expense (income), net increased $1.2 million.
Pension termination expense - During 2024, a one-time non-cash expense of $7.6 million was incurred in connection with the termination of the Company’s U.S. defined benefit pension plan related to the reclassification of historical unrecognized losses from Accumulated Other Comprehensive Income. Other expense (income), net - Other expense, net decreased $1.4 million.
A material decrease in interest rates could cause HBB to re-evaluate. We maintain an arrangement with a financial institution to sell certain U.S. trade receivables on a non-recourse basis.
A material decrease in interest rates could cause HBB to re-evaluate. We maintain an arrangement with a financial institution to sell certain U.S. trade receivables of a single customer on a non-recourse basis.
An event of default, as defined in the HBB Facility and in our operating and finance lease agreements, could cause an acceleration of the payment schedule. No such event of default for us has occurred or is anticipated to occur. 22 Table of Contents Item 7.
An event of default, as defined in the HBB Facility and in our operating and finance lease agreements, could cause an acceleration of the payment schedule. No such event of default for us has occurred or is anticipated to occur.
As of December 31, 2024, the HBB Facility requires a fee of 0.20% per annum on the unused commitment there under. The weighted average interest rate applicable to the HBB Facility and the Prior HBB Facility for the year ended December 31, 2024 was 2.50% (after giving effect to the interest rate swap agreements described below).
As of December 31, 2025, the HBB Facility requires a fee of 0.20% per annum on the unused commitment there under. The weighted average interest rate applicable to the HBB Facility and the Prior HBB Facility for the year ended December 31, 2025 was 3.30% (after giving effect to the interest rate swap agreements described below).
As of December 31, 2024 and 2023, the Company has $56.9 million and $55.0 million, respectively, in outstanding payment obligations that are presented in Accounts payable on the Consolidated Balance Sheets. Of these totals, the third-party financial institution has made payments to participating suppliers to settle $48.2 million and $48.9 million, respectively, of our outstanding payment obligations.
As of December 31, 2025 and 2024, the Company has $29.9 million and $56.9 million, respectively, in outstanding payment obligations that are presented in Accounts payable on the Consolidated Balance Sheets. Of these totals, the third-party financial institution has made payments to participating suppliers to settle $21.8 million and $48.2 million, respectively, of our outstanding payment obligations.
To reduce the exposure to changes in the market rate of interest, we have entered into interest rate swap agreements for a portion of the HBB Facility. Terms of the interest rate swap agreements require us to receive a variable interest rate and pay a fixed interest rate.
To reduce the exposure to changes in the market rate of interest, we have entered into interest rate swap agreements for a portion of the HBB Facility. Terms of the interest rate swap agreements require us to receive a variable interest rate and pay a fixed interest rate. 21 Table of Contents Item 7.
The HBB Facility also requires HBB to achieve a minimum fixed charge coverage ratio in certain circumstances, as defined in the HBB Facility. As of December 31, 2024, the borrowing base under the HBB Facility w as $107.3 million a nd borrowings outstanding were $50.0 million.
The HBB Facility also requires HBB to achieve a minimum fixed charge coverage ratio in certain circumstances, as defined in the HBB Facility. As of December 31, 2025, the borrowing base under the HBB Facility w as $123.8 million a nd borrowings outstanding were $50.0 million.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HAMILTON BEACH BRANDS HOLDING COMPANY (Tabular Amounts in Thousands, Except Per Share and Percentage Data) Selling, general and administrative expenses - Selling, general and administrative expenses increased $18.3 million compared to 2023.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HAMILTON BEACH BRANDS HOLDING COMPANY (Tabular Amounts in Thousands, Except Per Share and Percentage Data) Selling, general and administrative expenses - Selling, general and administrative expenses decreased $7.4 million compared to the prior year.
FORWARD-LOOKING STATEMENTS The statements contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere throughout this Annual Report on Form 10-K that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HAMILTON BEACH BRANDS HOLDING COMPANY (Tabular Amounts in Thousands, Except Per Share and Percentage Data) FORWARD-LOOKING STATEMENTS The statements contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere throughout this Annual Report on Form 10-K that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act.
LIQUIDITY AND CAPITAL RESOURCES Our cash flows are provided by dividends paid or distributions made by HBB. The only material assets held by us are the investment in our consolidated subsidiary. As a result, certain statutory limitations or regulatory or financing agreements could affect the levels of distributions allowed to be made by our subsidiary.
The only material assets held by us are the investments in our consolidated subsidiary. As a result, certain statutory limitations or regulatory or financing agreements could affect the levels of distributions allowed to be made by our subsidiary. We have not guaranteed any of the obligations of HBB.
In 2024, other expense (income), net includes currency losses of $0.9 million in the current year compared to currency gains of $0.3 million in 2023. Income tax expense - The effective tax rate on income was 7.8% and 20.4% for the years ended December 31, 2024 and 2023, respectively.
In the current year, other expense, net includes currency gains of $1.1 million compared to currency losses of $0.9 million in the prior year. Income tax expense - The effective tax rate on income was 25.8% in the current year compared to 7.8% in the prior year.
We believe our liquidity and access to capital markets will be adequate to fund our cash requirements for the next twelve months and for the foreseeable future.
As of December 31, 2025, we had cash and cash equivalents of $47.3 million, compared to $45.6 million as of December 31, 2024. We believe our liquidity and access to capital markets will be adequate to fund our cash requirements for the next twelve months and for the foreseeable future.
The HBB Facility contains customary representations and warranties, events of default and covenants, including, among other things, covenants applicable to HBB and its subsidiaries limiting indebtedness, liens, investments, dispositions and restricted payments.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HAMILTON BEACH BRANDS HOLDING COMPANY (Tabular Amounts in Thousands, Except Per Share and Percentage Data) The HBB Facility contains customary representations and warranties, events of default and covenants, including, among other things, covenants applicable to HBB and its subsidiaries limiting indebtedness, liens, investments, dispositions and restricted payments.
The following table presents selected cash flow information: Year Ended December 31 (In thousands) 2024 2023 Net cash provided by (used for) operating activities $ 65,415 $ 88,636 Net cash provided by (used for) investing activities $ (13,884) $ (5,174) Net cash provided by (used for) financing activities $ (20,948) $ (70,072) December 31, 2024 Compared with December 31, 2023 Operating activities - Net cash provided by operating activities was $65.4 million, representing more normalized post-pandemic working capital, compared to $88.6 million in the prior year, which benefited from significant excess inventory reduction activities.
The following table presents selected cash flow information: Year Ended December 31 (In thousands) 2025 2024 Net cash provided by (used for) operating activities $ 13,813 $ 65,415 Net cash provided by (used for) investing activities $ 1,932 $ (13,884) Net cash provided by (used for) financing activities $ (15,417) $ (20,948) December 31, 2025 Compared with December 31, 2024 Operating activities - Net cash provided by operating activities was $13.8 million, compared to cash provided of $65.4 million in the prior year, representing a decline of $51.6 million.
Contractual Obligations, Contingent Liabilities and Commitments Following is a table which summarizes the contractual obligations of Hamilton Beach Holding as of December 31, 2024: Payments Due by Period Contractual Obligations Total 2025 2026 2027 2028 2029 Thereafter Revolving credit agreements $ 50,000 $ — $ — $ — $ — $ 50,000 $ — Variable interest payments on HBB Facility 9,539 1,641 1,640 1,656 2,157 2,445 — Purchase and other obligations 240,503 240,318 53 68 64 — — Operating lease obligations 54,087 7,263 6,567 6,103 5,787 5,691 22,676 Finance lease obligations 385 107 107 106 64 1 — Total contractual cash obligations $ 354,514 $ 249,329 $ 8,367 $ 7,933 $ 8,072 $ 58,137 $ 22,676 Our variable interest payments are calculated based upon our contractual payment schedule and the December 31, 2024 Base Rate (as defined in the HBB Facility) plus an applicable margin of 0.00%.
Contractual Obligations, Contingent Liabilities and Commitments Following is a table which summarizes the contractual obligations of Hamilton Beach Holding as of December 31, 2025: Payments Due by Period Contractual Obligations Total 2026 2027 2028 2029 2030 Thereafter Revolving credit agreements $ 50,000 $ — $ — $ — $ 50,000 $ — $ — Variable interest payments on HBB Facility 7,992 2,517 2,433 1,825 1,217 — — Purchase and other obligations 157,675 157,469 77 79 50 — — Operating lease obligations 50,158 7,420 6,970 6,596 6,492 5,791 16,889 Finance lease obligations 285 110 109 65 1 — — Total contractual cash obligations $ 266,110 $ 167,516 $ 9,589 $ 8,565 $ 57,760 $ 5,791 $ 16,889 Our variable interest payments are calculated based upon our contractual payment schedule and the December 31, 2025 Base Rate (as defined in the HBB Facility) plus an applicable margin of 0.00%.
Off Balance Sheet Arrangements We have not entered into any off balance sheet financing arrangements. Recently Issued and Adopted Accounting Standards Refer to Note 1 to the consolidated financial statements for discussion of recently issued and adopted accounting standards.
Recently Issued and Adopted Accounting Standards Refer to Note 1 to the consolidated financial statements for discussion of recently issued and adopted accounting standards. 22 Table of Contents Item 7.
We have not guaranteed any of the obligations of HBB. Our principal sources of cash to fund liquidity needs are: (1) cash generated from operations and (2) borrowings available under the HBB Facility.
Our principal sources of cash to fund liquidity needs are: (1) cash generated from operations and (2) borrowings available under the HBB Facility. Our primary use of funds consists of working capital requirements, operating expenses, payment of dividends, repurchase of shares, capital expenditures and payments of principal and interest on debt.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HAMILTON BEACH BRANDS HOLDING COMPANY (Tabular Amounts in Thousands, Except Per Share and Percentage Data) The maximum availability under the HBB Facility is governed by a borrowing base derived from advance rates against eligible trade receivables and inventory of HBB.
As of December 31, 2025, the excess availability under the HBB Facility was $73.8 million. The maximum availability under the HBB Facility is governed by a borrowing base derived from advance rates against eligible trade receivables and inventory of HBB.
As a result of the Agreement, repayment of the HBB Facility is due on December 13, 2029, therefore all borrowings are classified as long term debt as of December 31, 2024. The obligations under the HBB Facility are secured by substantially all of HBB’s U.S. assets.
Capital Resources The HBB Facility the Company has is a $125 million senior secured floating-rate revolving credit facility that expires with repayment due on December 13, 2029. The HBB Facility also has an optional $25.0 million term loan. The obligations under the HBB Facility are secured by all of HBB’s U.S. assets.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HAMILTON BEACH BRANDS HOLDING COMPANY (Tabular Amounts in Thousands, Except Per Share and Percentage Data) Given the funded status of the one defined benefit pension plan, we do not expect to contribute to the pension plan in 2025. Pension benefit payments are made from assets of the pension plan.
Given the funded status of the one defined benefit pension plan, we do not expect to contribute to the pension plan in 2026. Pension benefit payments are made from assets of the pension plan. Off Balance Sheet Arrangements We have not entered into any off balance sheet financing arrangements.
The effective tax rate was lower for the year ended December 31, 2024 due to a tax benefit for foreign operations and a tax benefit related to a tax accounting method change in the U.S. which are not expected to recur. These were partially offset by non-deductible executive compensation and a valuation allowance on HealthBeacon losses.
The effective tax rate was lower in the prior year primarily due to a tax benefit for foreign operations and a tax benefit related to a tax accounting method change in the U.S., neither of which recurred in the current year. LIQUIDITY AND CAPITAL RESOURCES Our cash flows are provided by dividends paid or distributions made by HBB.
Removed
These increases were partially offset by lower average selling prices reflecting lower costs during the year and unfavorable foreign currency fluctuations. Additionally, the acquisition of HealthBeacon added a new revenue stream during the year and contributed $4.3 million in revenue for 2024.
Added
Consumer business in the second and third quarters as retailers paused buying in order to assess inventory levels and price increases flowing from the new tariffs implemented by the United States. Partially offsetting this decline was revenue growth in the Commercial and Health businesses.
Removed
Gross profit - Gross profit margin increased to 26.0% in the current year compared to 23.0% in the prior year primarily due to lower product and transportation costs and a favorable product mix. 19 Table of Contents Item 7.
Added
Gross profit - Gross profit margin decreased to 25.7% in the current year compared to 26.0% in the prior year primarily due to the flow through of a one-time incremental tariff cost of $5.3 million, which negatively impacted full year margin by 90 basis points.
Removed
The increase is primarily due to the addition of $7.7 million of HealthBeacon expenses, a $5.9 million increase in employee-related costs, including $4.0 million of increased incentive compensation due to higher achievement percentage, an increase in outside services and non-recurring items, which include an incremental $1.0 million of HealthBeacon transaction costs and the absence of a $0.9 million insurance recovery that occurred in the prior year.
Added
Most of these costs were from a temporary spike in tariff rates on imports from China to 125%. This was partially offset by favorable customer and product mix due to the growth in our higher margin Commercial and Health businesses. 19 Table of Contents Item 7.
Removed
Interest expense - Interest expense, net decreased $2.4 million due to decreased average borrowings outstanding under the HBB Facility, and lower interest rates compared to 2023.
Added
The decrease is primarily due to lower personnel costs associated with the restructuring actions taken by management in the second quarter and reduced incentive compensation expense. Interest expense, net - Interest expense, net was $0.7 million in the current year compared to $0.6 million in the prior year.
Removed
Our primary use of funds consists of working capital requirements, operating expenses, payment of dividends, repurchase of shares, capital expenditures, payments of principal and interest on debt and acquisitions. As of December 31, 2024, we had cash and cash equivalents of $45.6 million, compared to $15.4 million as of December 31, 2023.
Added
The decrease in net cash provided is primarily due to an increase in net working capital, including lower accounts payable as we anniversary the inventory builds of late 2024.
Removed
Net working capital provided cash of $14.5 million in 2024 compared to cash provided of $49.5 million in 2023. The 2024 period benefited from the Company's continued focus on working capital management which led to improvements in days sales outstanding.
Added
In addition, there was a reduction in other liabilities driven by decreased income tax payable primarily as the result of the “One Big Beautiful Bill Act” (“OBBBA”) and lower incentive compensation payables compared to the prior year.
Removed
The net cash provided by operating activities during 2024 reflects the net working capital changes and increased net income which includes non-cash pension termination and stock compensation expenses, offset by a deferred income tax benefit.
Added
Investing activities - Net cash provided by investing activities was $1.9 million in the current year, compared to a net use of cash of $13.9 million in the prior year. The current year includes the proceeds received from the maturity of a U.S.
Removed
Investing activities - Net cash used for investing activities increased in 2024 compared to 2023 related primarily to the acquisition of HealthBeacon offset by the extinguishment of our secured loan to HealthBeacon in 2024 which provided net cash of $1.6 million. Additionally, the Company used excess cash on hand to invest in a six-month U.S. Treasury bill during 2024.
Added
Treasury bill, while the prior year includes the acquisition of HealthBeacon and the investment in the same U.S. Treasury bill. Financing activities - Net cash used for financing activities decreased $5.5 million in the current year primarily due to decreased purchases of treasury stock.
Removed
Financing activities - Net cash used for financing activities was $20.9 million in 2024 compared to cash used for financing activities of $70.1 million in 2023. The change is due to a decrease in HBB’s net borrowing activity on the HBB Facility. This decrease was partially offset by increased purchases of treasury stock.
Removed
Capital Resources On December 13, 2024, HBB entered into the Second Amended and Restated Credit Agreement (the “Agreement”).
Removed
The Agreement restated HBB’s prior credit agreement (the “Prior HBB Facility”) in its entirety and extended the term of HBB's seni or secured floating-rate revolving credit facility (the “HBB Facility”) to December 13, 2029, decreased the credit facility from $150 million to $125 million, added an optional $25.0 million term loan, and removed the Canadian subsidiary from the credit facility.
Removed
As of December 31, 2024, the excess availability under the HBB Facility was $57.3 million. 21 Table of Contents Item 7.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

5 edited+0 added−0 removed7 unchanged
Biggest changeAdditionally, a hypothetical 10% relative increase in interest rates would cause an increase of $0.2 million in the fair value of interest rate swap agreements and the resulting fair value would be a receivable of $4.2 million. Neither would have a material impact to our interest expense, net of $0.6 million as of December 31, 2024.
Biggest changeAdditionally, a hypothetical 10% relative increase in interest rates would cause an increase of $0.1 million in the fair value of interest rate swap agreements and the resulting fair value would be a receivable of $2.1 million. Neither would have a material impact to our interest expense, net of $0.7 million as of December 31, 2025.
We assume that a loss in fair value is an increase in our receivables. The fair value of our interest rate swap agreements was a receivable of $4.0 million as of December 31, 2024.
We assume that a loss in fair value is an increase in our receivables. The fair value of our interest rate swap agreements was a receivable of $2.0 million as of December 31, 2025.
Assuming a hypothetical 10% weakening of the U.S. dollar as of December 31, 2024, the fair value of foreign currency-sensitive financial instruments, which represents forward foreign currency exchange contracts, would be decreased by $1.2 million compared with its fair value as of December 31, 2024.
Assuming a hypothetical 10% weakening of the U.S. dollar as of December 31, 2025, the fair value of foreign currency-sensitive financial instruments, which represents forward foreign currency exchange contracts, would be decreased by $0.3 million compared with its fair value as of December 31, 2025.
A hypothetical 10% relative decrease in interest rates would cause a decrease of $0.2 million in the fair value of interest rate swap agreements and the resulting fair value would be a receivable of $3.8 million.
A hypothetical 10% relative decrease in interest rates would cause a decrease of $0.1 million in the fair value of interest rate swap agreements and the resulting fair value would be a receivable of $1.9 million.
The fair value of our foreign currency exchange contracts was a net receivable of $0.8 million as of December 31, 2024.
The fair value of our foreign currency exchange contracts was a net payable of $0.1 million as of December 31, 2025.

Other HBB 10-K year-over-year comparisons