(Dollars in thousands, except as noted and per share data) Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon management’s current expectations and are subject to various uncertainties and changes in circumstances. Important factors that could cause actual results to differ materially from those described in these forward-looking statements are set forth below under the heading “Forward-Looking Statements.” Accordingly, this Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the financial statements and Company’s Annual Report on Form 10-K for the year ended December 31, 2025. 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. 14 Table of Contents CRITICAL ACCOUNTING POLICIES AND ESTIMATES For a summary of the Company’s critical accounting policies, refer to “Part II - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as there have been no material changes from those disclosed in the Annual Report. RESULTS OF OPERATIONS The market for small electric household and specialty housewares appliances is fairly steady throughout the year; however, the Company’s revenue typically increases during the second half of the year and peaks during the fourth quarter due to the fall holiday-selling season. Second Quarter of 2026 Compared with Second Quarter of 2025 THREE MONTHS ENDED JUNE 30 Increase / (Decrease) 2026 % of Revenue 2025 % of Revenue $ Change % Change Revenue $ 142,632 100.0 % $ 127,770 100.0 % $ 14,862 11.6 % Cost of sales 65,136 45.7 % 92,639 72.5 % (27,503) (29.7) % Gross profit 77,496 54.3 % 35,131 27.5 % 42,365 120.6 % Selling, general and administrative expenses 34,290 24.0 % 29,183 22.8 % 5,107 17.5 % Operating profit (loss) 43,206 30.3 % 5,948 4.7 % 37,258 626.4 % Interest (income) expense, net (1,264) (0.9) % 121 0.1 % (1,385) (1,144.6) % Other (income) expense, net (160) (0.1) % (182) (0.1) % 22 (12.1) % Income (loss) before income taxes 44,630 31.3 % 6,009 4.7 % 38,621 642.7 % Income tax expense (benefit) 10,922 7.7 % 1,556 1.2 % 9,366 601.9 % Net income (loss) $ 33,708 23.6 % $ 4,453 3.5 % $ 29,255 657.0 % Effective income tax rate 24.5 % 25.9 % The following table identifies the components of the change in revenue: Revenue 2025 $ 127,770 Increase (decrease) from: Unit volume and product mix 9,327 Average sales price 4,039 Foreign currency 1,496 2026 $ 142,632 Revenue - Revenue increased $14.9 million, or 11.6%, compared to the prior year due to higher volumes in the Company’s U.S. Consumer business reflecting recovery from the second quarter of 2025 when retailers paused buying to assess inventory levels and price increases flowing from IEEPA tariffs implemented in April 2025. Gross profit - Gross profit margin increased to 54.3% compared to 27.5% in the prior year. The significant improvement in gross profit margin included one-time benefits related to the IEEPA Tariff Ruling. These benefits consist of IEEPA Tariff Refunds of $36.5 million, as well as continued sell-through of inventory no longer subject to IEEPA tariffs. These benefits are non-recurring and will not persist beyond the sell-through of the affected inventory. Excluding these benefits, gross profit margin would have been 26.1%. 15 Table of Contents Selling, general and administrative expenses (SG&A) - Selling, general and administrative expenses increased $5.1 million compared to the prior year. The increase was primarily due to higher incentive related personnel costs, as the prior year reflected lower expected performance. The current period also includes $1.4 million accelerated depreciation of the Company’s legacy enterprise resource planning (ERP) system. Interest (income) expense, net - Interest income, net was $1.3 million for the three months ended June 30, 2026, compared to interest expense, net of $0.1 million in the prior period due to interest income on IEEPA Tariff Refunds. Other (income) expense, net - Other income, net was $0.2 million for both the three months ended June 30, 2026 and 2025. Income tax expense (benefit) - The effective tax rate was 24.5% and 25.9% for the three months ended June 30, 2026 and 2025, respectively. The effective tax rate was lower for the three months ended June 30, 2026 due to changes in the jurisdictional mix of earnings and a reduction in foreign losses subject to a valuation allowance. First Six Months of 2026 Compared with First Six Months of 2025 SIX MONTHS ENDED JUNE 30 2026 % of Revenue 2025 % of Revenue $ Change % Change Revenue $ 264,595 100.0 % $ 261,142 100.0 % $ 3,453 1.3 % Cost of sales 150,907 57.0 % 193,240 74.0 % (42,333) (21.9) % Gross profit 113,688 43.0 % 67,902 26.0 % 45,786 67.4 % Selling, general and administrative expenses 65,514 24.8 % 59,641 22.8 % 5,873 9.8 % Operating profit (loss) 48,174 18.2 % 8,261 3.2 % 39,913 483.1 % Interest (income) expense, net (1,342) (0.5) % 49 — % (1,391) (2,838.8) % Other (income) expense, net (66) — % (331) (0.1) % 265 (80.1) % Income (loss) before income taxes 49,582 18.7 % 8,543 3.3 % 41,039 480.4 % Income tax expense (benefit) 12,335 4.7 % 2,285 0.9 % 10,050 439.8 % Net income (loss) $ 37,247 14.1 % $ 6,258 2.4 % $ 30,989 495.2 % Effective income tax rate 24.9 % 26.7 % The following table identifies the components of the change in revenue: Revenue 2025 $ 261,142 Increase (decrease) from: Unit volume and product mix (12,052) Average sales price 11,948 Foreign currency 3,557 2026 $ 264,595 Revenue - Revenue increased $3.5 million, or 1.3%, compared to the prior year as pricing offset volume and mix pressure in the U.S. Consumer business, while growth in the Commercial and Health businesses and favorable foreign currency translation drove the overall increase. Gross profit - Gross profit margin increased to 43.0% compared to 26.0% in the prior year. The significant improvement in gross margin included one-time benefits related to the IEEPA Tariff Ruling. These benefits consist of IEEPA Tariff Refunds of $36.5 million received in the second quarter, as well as continued sell-through of inventory no longer subject to IEEPA tariffs. These benefits are non-recurring and will not persist beyond the sell-through of the affected inventory. Excluding these benefits, gross profit margin would have been 26.9%. 16 Table of Contents Selling, general and administrative expenses (SG&A) - Selling, general and administrative expenses increased $5.9 million compared to the prior year. The increase was primarily due to higher incentive related personnel costs, as the prior year reflected lower expected performance. The current period also includes $2.8 million accelerated depreciation of the Company’s legacy ERP system. Interest (income) expense, net - Interest income, net was $1.3 million for the six months ended June 30, 2026, compared to interest expense, net of $49 thousand for the six months ended June 30, 2025 due to interest income on the IEEPA Tariff Refunds in the second quarter of 2026. Other (income) expense, net - Other income, net was $0.1 million for the six months ended June 30, 2026 compared to other income, net of $0.3 million for the six months ended June 30, 2025. Income tax expense (benefit) - The effective tax rate was 24.9% compared to 26.7% in the prior six month period. The effective tax rate was lower for the six months ended June 30, 2026 due to changes in the jurisdictional mix of earnings and a reduction in foreign losses subject to a valuation allowance. LIQUIDITY AND CAPITAL RESOURCES Liquidity Our cash flows are provided by dividends paid or distributions made by HBB. 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. 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. The HBB Facility expires on December 13, 2029. We believe funds available from cash on hand, the HBB Facility and operating cash flows will provide sufficient liquidity to meet our operating needs and commitments arising during the next twelve months. The following table presents selected cash flow information: SIX MONTHS ENDED JUNE 30 2026 2025 Net cash provided by (used for) operating activities $ 61,543 $ (23,773) Net cash provided by (used for) investing activities $ (895) $ (1,466) Net cash provided by (used for) financing activities $ (6,477) $ (10,549) Operating activities - Net cash provided by operating activities was $61.5 million, compared to cash used of $23.8 million in the prior year, representing an increase of $85.3 million. The increase was primarily driven by the aforementioned IEEPA refunds and lower working capital mainly due to reduced inventory levels as the prior year included accelerated purchases ahead of tariff uncertainty and lower sell through. The 2025 period also included higher incentive compensation and tax payments related to the prior year. Investing activities - Net cash used for investing activities decreased $0.6 million compared to the prior year. Financing activities - Net cash used for financing activities decreased $4.1 million compared to the prior year due to lower share repurchases during the first six months of 2026. Capital Resources The obligations under the HBB Facility are secured by all of HBB’s U.S. assets. As of June 30, 2026, the borrowing base under the HBB Facility was $104.3 million and borrowings outstanding were $50.0 million. As of June 30, 2026, Excess Availability (as defined in the HBB Facility) was $54.3 million. The Company may repay outstanding debt from time to time depending on market conditions, cash flow generation, and other factors. 17 Table of Contents 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 June 30, 2026, 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 June 30, 2026, the HBB Facility requires a fee of 0.20% per annum on the unused commitment thereunder. The weighted average interest rate applicable to the HBB Facility for the six months ended June 30, 2026 was 3.26% (after giving effect to the interest rate swap agreements described below). 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. We have interest rate swaps with notional values totaling $50.0 million as of June 30, 2026 at an average fixed interest rate of 1.59%. 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. Additionally, if Excess Availability is less than $15.0 million at any time, the HBB Facility will require that HBB maintain a minimum Fixed Charge Coverage Ratio (as defined in the HBB Facility) of 1.00 to 1.00 until Excess Availability is greater than or equal to $15.0 million for 30 consecutive days. As of June 30, 2026, we were in compliance with all applicable financial covenants in the HBB Facility. The Company has an arrangement with a financial institution to sell certain U.S. trade receivables of a single customer on a non-recourse basis. See Note 2 - Transfer of Financial Assets included in the unaudited consolidated financial statements contained in Part I of this Form 10-Q. Contractual Obligations, Contingent Liabilities and Commitments For a summary of the Company’s contractual obligations, contingent liabilities and commitments, refer to “Part II - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Contractual Obligations, Contingent Liabilities and Commitments” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as there have been no material changes from those disclosed in the Annual Report. Off Balance Sheet Arrangements For a summary of the Company’s off balance sheet arrangements, refer to “Part II - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Off Balance Sheet Arrangements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as there have been no material changes from those disclosed in the Annual Report. 18 Table of Contents FORWARD-LOOKING STATEMENTS The statements contained in this Form 10-Q 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. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. 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 consumer purchases of small electric household 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, the Annual Report on Form 10-K for the year ended December 31, 2025. Furthermore, the future impact of unfavorable economic conditions, including inflation, changing interest rates, availability of capital markets and consumer spending rates remains uncertain. In uncertain economic environments, we cannot predict whether or when such circumstances may improve or worsen, or what impact, if any, such circumstances could have on our business, results of operations, cash flows and financial position.