Financial Data and Key Metrics Changes - In Q2 2025, Lift Truck revenues declined by 19% year over year, primarily due to lower volumes across all product lines and weaker industry booking rates since early 2024 [19][20] - Adjusted Q2 operating profit was $5 million, significantly down from the prior year, impacted by lower volumes and increased material and freight costs due to tariffs [21][22] - The company reported a net debt position improvement year over year, with a steady liquidity position and increased unused borrowing capacity by 3% to nearly $260 million at the end of Q2 [27][28] Business Line Data and Key Metrics Changes - Lift Truck bookings in Q2 decreased to $330 million from $590 million in Q1 2025, with a notable decline in Europe and The Americas, while Asia Pacific bookings remained steady [13][14] - Bolzoni's revenue declined year over year due to the phase-out of lower-margin legacy products, but Q2 revenue grew sequentially due to higher volumes in attachments and forks sales in The Americas [23][24] Market Data and Key Metrics Changes - The global lift truck bookings market contracted in Q2, reflecting broader capital goods sector trends, with customers deferring capital expenditures due to economic uncertainty [11][12] - The order backlog at the end of Q2 was $1.7 billion, down from $1.9 billion in the previous quarter, primarily due to shipments outpacing new bookings [14][15] Company Strategy and Development Direction - The company is focusing on manufacturing and selling products within the same region to lower shipping costs and speed delivery, while also seeking new cost-effective supply partners [8][9] - Strategic initiatives include optimizing the manufacturing footprint and realigning the Nuvera business to adapt to changing economic conditions [10] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty and fluctuating tariff levels continue to impact business, but they are taking proactive measures to protect financial health and maintain dealer relationships [5][6] - The company expects to increase production rates in the second half of 2025, contingent on demand stabilization, while remaining cautious due to ongoing economic uncertainty [17][18] Other Important Information - The company plans to invest between $50 million and $60 million in capital expenditures for 2025, focusing on advanced products and manufacturing efficiency initiatives [44] - Recent tax legislation is expected to lower tax expenses and cash outflows, positively impacting financial results in the second half of 2025 [43] Q&A Session Summary Question: Expectations for seasonal trends in North America and EMEA - Management expects more stable decision-making in the Americas as tariff rules stabilize, while EMEA is anticipated to follow typical seasonal trends with a weaker third quarter [51][57] Question: Changes in views on tariffs and their impact - Management has adjusted to the tariff environment, expecting a mix of pre- and post-tariff pricing in the backlog, with ongoing adjustments based on tariff changes [58][62] Question: Competitive landscape following Toyota's privatization - Management does not expect immediate market dynamics to change but acknowledges the potential for increased flexibility among competitors [66] Question: Concerns about investing in technology amidst profitability challenges - Management remains committed to investing in technology and efficiency, with capital expenditures exceeding depreciation and amortization [70] Question: Mix and profitability within the backlog - Management maintains pricing discipline and expects to improve the margin profile of the backlog, despite challenges from tariffs [75][78] Question: Impact of sourcing components from China and India - Management is working to transition sourcing to mitigate tariff impacts, particularly for highly engineered components [80][82] Question: Bolzoni's legacy products and market share outlook - Management anticipates the phase-out of legacy products by 2027 and has made progress in gaining market share despite a smaller market size [88][93] Question: Competitive behavior in the current market - Management notes that while some pricing actions are observed, traditional competitors are generally maintaining discipline in production and pricing [95][97]

Q2 2025 Financial Performance - Hyster-Yale's Q2 2025 consolidated revenue reached $957 million, an 18% decrease compared to the prior year[14, 17] - The company reported an adjusted operating profit of $7 million, down from Q2 2024's strong results[14, 17] - Hyster-Yale's adjusted net loss was $2 million in Q2 2025[14, 20] - Lift Truck revenue was $904 million, a 19% year-over-year decrease[20, 23] - Bolzoni's revenue was $91 million, a 12% decrease compared to the prior year[20, 23] Liquidity and Outlook - Hyster-Yale extended its credit facility to 2030, maintaining liquidity of $300 million[17, 27] - The company's working capital as a percentage of sales decreased by 100 basis points to 21% compared to Q1 2025[17, 28] - The unit bookings value declined to $330 million, a 44% decrease compared to Q1 2025[17] - The unit value backlog is $17 billion, representing approximately 4-5 months of production[17] - Full year 2025 is projected to be below the robust results of 2024, with higher tariffs creating cost and market demand uncertainty[18, 35] Strategic Initiatives and Long-Term Objectives - Hyster-Yale aims for long-term financial objectives including revenue growth at GDP++, operating profit margins of 7% of sales, working capital at 15% of sales, and a Return on Total Capital Employed (ROTCE) greater than 20%[105] - The company is focused on modular, scalable product platforms and optimized manufacturing footprint to improve capital efficiency[75, 94]

Financial Performance - Hyster-Yale reported a quarterly loss of $0.14 per share, missing the Zacks Consensus Estimate of $0.26, and a significant decline from earnings of $3.58 per share a year ago, representing an earnings surprise of -153.85% [1] - The company posted revenues of $956.6 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.10%, but down from $1.17 billion in the same quarter last year [2] - Over the last four quarters, Hyster-Yale has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Hyster-Yale shares have declined approximately 18.8% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] - The current Zacks Rank for Hyster-Yale is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $897.91 million, and for the current fiscal year, it is $1.54 on revenues of $3.69 billion [7] - The estimate revisions trend for Hyster-Yale was mixed ahead of the earnings release, and future changes in estimates will be closely monitored [6][7] Industry Context - Hyster-Yale operates within the Manufacturing - Construction and Mining industry, which is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges ahead [8]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for Hyster-Yale, Inc [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Hyster-Yale's unaudited condensed consolidated financial statements and related notes for Q2 2025 and prior periods [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section provides the unaudited condensed consolidated balance sheets, highlighting asset, liability, and equity changes Condensed Consolidated Balance Sheet Highlights (In millions) | Metric | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :------------------ | | **Total Assets** | $2,075.1 | $2,029.2 | | Cash and cash equivalents | $66.9 | $96.6 | | Accounts receivable, net | $512.1 | $488.4 | | Inventories, net | $776.6 | $754.3 | | Total Current Assets | $1,456.7 | $1,433.3 | | **Total Liabilities** | $1,511.7 | $1,535.1 | | Total Current Liabilities | $1,042.2 | $1,057.9 | | Revolving credit facilities | $93.6 | $54.2 | | Short-term debt | $134.4 | $144.6 | | **Total Stockholders' Equity** | $544.7 | $475.1 | | Retained earnings | $356.7 | $374.6 | | Accumulated other comprehensive loss | $(151.2) | $(237.0) | - Total assets increased by **$45.9 million** from December 31, 2024, to June 30, 2025, primarily driven by increases in accounts receivable and inventories, while cash and cash equivalents decreased[8](index=8&type=chunk) - Total liabilities decreased by **$23.4 million**, mainly due to a reduction in other current liabilities and deferred revenue, partially offset by an increase in revolving credit facilities[8](index=8&type=chunk) - Total stockholders' equity increased by **$69.6 million**, largely due to a significant reduction in accumulated other comprehensive loss[8](index=8&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the unaudited condensed consolidated statements of operations, detailing revenues, profits, and earnings per share Condensed Consolidated Statements of Operations Highlights (In millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $956.6 | $1,168.1 | $1,867.0 | $2,224.6 | | Gross Profit | $168.2 | $259.3 | $345.9 | $495.0 | | Operating (Loss) Profit | $(8.5) | $95.6 | $12.8 | $179.4 | | Net (Loss) Income | $(13.4) | $63.9 | $(4.7) | $115.7 | | Net (Loss) Income Attributable to Stockholders | $(13.9) | $63.3 | $(5.3) | $114.8 | | Basic (Loss) Earnings per Share | $(0.79) | $3.62 | $(0.30) | $6.60 | | Diluted (Loss) Earnings per Share | $(0.79) | $3.58 | $(0.30) | $6.51 | | Dividends per Share | $0.3600 | $0.3500 | $0.7100 | $0.6750 | - Revenues decreased by **18.1%** for the three months and **16.1%** for the six months ended June 30, 2025, compared to the prior year periods[9](index=9&type=chunk) - The company reported an operating loss of **$8.5 million** for Q2 2025, a significant decline from an operating profit of **$95.6 million** in Q2 2024, and a net loss attributable to stockholders of **$13.9 million**[9](index=9&type=chunk) - For the six months ended June 30, 2025, the company recorded a net loss attributable to stockholders of **$5.3 million**, a substantial decrease from a net income of **$114.8 million** in the same period of 2024[9](index=9&type=chunk) [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section details the unaudited condensed consolidated statements of comprehensive income, including other comprehensive income components Condensed Consolidated Statements of Comprehensive Income Highlights (In millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net (Loss) Income | $(13.4) | $63.9 | $(4.7) | $115.7 | | Foreign currency translation adjustment | $38.6 | $(9.3) | $56.7 | $(26.0) | | Current period cash flow hedging activity, net of tax | $13.0 | $(11.3) | $23.3 | $(26.4) | | Comprehensive Income | $38.9 | $52.1 | $81.1 | $80.2 | | Comprehensive Income Attributable to Stockholders | $38.4 | $51.6 | $80.3 | $79.4 | - Despite a net loss, comprehensive income attributable to stockholders for the three and six months ended June 30, 2025, was positive, primarily driven by favorable foreign currency translation adjustments and current period cash flow hedging activity[11](index=11&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the unaudited condensed consolidated statements of cash flows, outlining operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, In millions) | Metric | 2025 | 2024 | | :--------------------------------- | :--- | :--- | | Net cash provided by (used for) operating activities | $(7.5) | $19.9 | | Net cash used for investing activities | $(25.6) | $(18.7) | | Net cash provided by (used for) financing activities | $(0.3) | $(11.4) | | Effect of exchange rate changes on cash | $3.7 | $(2.1) | | Increase (decrease) for the period | $(29.7) | $(12.3) | | Balance at the end of the period | $66.9 | $66.5 | - Net cash used for operating activities was **$7.5 million** for the six months ended June 30, 2025, a **$27.4 million** decrease from **$19.9 million** provided in the prior year, mainly due to lower net income and higher employee-related payments[13](index=13&type=chunk)[109](index=109&type=chunk) - Investing activities used **$25.6 million**, an increase from **$18.7 million** in 2024, primarily due to higher capital expenditures and a business acquisition[13](index=13&type=chunk)[110](index=110&type=chunk) - Financing activities used **$0.3 million**, a significant improvement from **$11.4 million** used in 2024, driven by increased borrowings under revolving credit facilities and reduced treasury stock purchases[13](index=13&type=chunk)[111](index=111&type=chunk) [Unaudited Condensed Consolidated Statements of Changes in Temporary and Permanent Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Temporary%20and%20Permanent%20Equity) This section details the unaudited condensed consolidated statements of changes in temporary and permanent equity - Total permanent equity increased from **$479.2 million** at December 31, 2024, to **$548.9 million** at June 30, 2025, primarily due to a decrease in accumulated other comprehensive loss[15](index=15&type=chunk) - Stockholders' equity increased by **$69.6 million** during the first six months of 2025, despite a net loss attributable to stockholders of **$5.3 million**, largely offset by positive other comprehensive income[15](index=15&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the basis of presentation, accounting policies, and other financial disclosures [Note 1—Basis of Presentation](index=9&type=section&id=Note%201%E2%80%94Basis%20of%20Presentation) This note outlines the company's business operations, recent acquisitions, and segment realignments - Hyster-Yale, Inc. designs, engineers, manufactures, sells, and services lift trucks, attachments, and aftermarket parts globally under Hyster and Yale brand names[17](index=17&type=chunk) - In May 2025, Bolzoni acquired **100%** of an Italian manufacturing business for **$2.6 million**, with results included in the Bolzoni segment[18](index=18&type=chunk) - Nuvera Fuel Cells, LLC was merged into HYMH's Americas segment in Q2 2025, leading to revised operating segments[19](index=19&type=chunk) [Note 2—Recently Issued Accounting Standards](index=10&type=section&id=Note%202%E2%80%94Recently%20Issued%20Accounting%20Standards) This note discusses the company's adoption status and evaluation of recently issued accounting standard updates - The Company did not adopt any new accounting standard updates in Q2 2025[23](index=23&type=chunk) - ASU 2023-09 (Income Tax Disclosures) will be applied for annual periods after December 15, 2024[24](index=24&type=chunk) - ASU 2024-03 (Disaggregation of Income Statement Expenses) is being evaluated for its effect on disclosures for annual periods after December 15, 2026[24](index=24&type=chunk) [Note 3—Revenue](index=10&type=section&id=Note%203%E2%80%94Revenue) This note details the company's revenue recognition policies and disaggregated revenue by category - Revenue is recognized when control of goods (trucks, parts) or services is transferred to the customer, typically at a point in time for sales and over time for service contracts[25](index=25&type=chunk)[26](index=26&type=chunk) - Variable consideration, including discounts and volume rebates, is estimated and reduces recognized revenue[27](index=27&type=chunk) Disaggregated Revenue by Category (Three Months Ended June 30, In millions) | Category | 2025 | 2024 | | :------------------ | :----- | :----- | | Dealer sales | $460.5 | $664.0 | | Direct customer sales | $178.8 | $193.1 | | Aftermarket sales | $221.0 | $218.9 | | Other | $96.3 | $92.1 | | **Total Revenues** | **$956.6** | **$1,168.1** | Disaggregated Revenue by Category (Six Months Ended June 30, In millions) | Category | 2025 | 2024 | | :------------------ | :------- | :------- | | Dealer sales | $876.1 | $1,282.9 | | Direct customer sales | $353.7 | $333.4 | | Aftermarket sales | $448.8 | $428.3 | | Other | $188.4 | $180.0 | | **Total Revenues** | **$1,867.0** | **$2,224.6** | - Deferred revenue balance at June 30, 2025, was **$64.9 million**, down from **$71.3 million** at December 31, 2024, reflecting revenue recognized from prior billings[34](index=34&type=chunk)[35](index=35&type=chunk) [Note 4—Business Segments](index=12&type=section&id=Note%204%E2%80%94Business%20Segments) This note describes the company's reportable segments and their respective revenues and operating profits - The Company operates four reportable segments: Americas, EMEA, JAPIC (collectively 'lift truck business'), and Bolzoni[36](index=36&type=chunk) - Nuvera was merged into the Americas operating segment in Q2 2025, and prior period amounts have been recast[39](index=39&type=chunk) Segment Revenues from External Customers (Three Months Ended June 30, In millions) | Segment | 2025 | 2024 | | :------------------ | :----- | :----- | | Americas | $707.5 | $881.5 | | EMEA | $148.3 | $187.8 | | JAPIC | $48.4 | $48.7 | | Bolzoni | $90.6 | $102.4 | | **Total** | **$956.6** | **$1,168.1** | Segment Operating Profit (Loss) (Three Months Ended June 30, In millions) | Segment | 2025 | 2024 | | :------------------ | :------- | :----- | | Americas | $11.7 | $92.5 | | EMEA | $(15.0) | $4.8 | | JAPIC | $(7.6) | $(5.7) | | Bolzoni | $2.4 | $4.0 | | **Total** | **$(8.5)** | **$95.6** | [Note 5—Income Taxes](index=15&type=section&id=Note%205%E2%80%94Income%20Taxes) This note explains the company's income tax rates, reconciliation to the statutory rate, and the impact of recent tax legislation - The reported income tax rate for Q2 2025 was not meaningful due to a pre-tax loss, but for Q2 2024 it was **29.0%**. For the six months ended June 30, 2024, it was **30.7%**[43](index=43&type=chunk) - Differences from the U.S. federal statutory rate (**21%**) are primarily due to additional valuation allowance for capitalized R&D expenses and interim adjustments for pre-tax losses with no recognized tax benefit[43](index=43&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA), signed July 4, 2025, significantly revised U.S. corporate income tax, including immediate expensing of R&D and certain capital expenditures, which could favorably impact results[44](index=44&type=chunk)[45](index=45&type=chunk) [Note 6—Reclassifications from OCI](index=16&type=section&id=Note%206%E2%80%94Reclassifications%20from%20OCI) This note details the pre-tax impact of reclassifications from other comprehensive income (OCI) to net income Pre-Tax Impact of Reclassifications from OCI (Three Months Ended June 30, In millions) | OCI Component | 2025 | 2024 | Affected Line Item | | :--------------------------------- | :--- | :--- | :----------------- | | Gain (loss) on cash flow hedges (before tax) | $0.3 | $(8.0) | Income before income taxes | | Amortization of defined benefit pension items (before tax) | $(0.9) | $(0.9) | Income before income taxes | | **Total reclassifications for the period** | **$(0.7)** | **$(8.8)** | Net income | - For the three months ended June 30, 2025, reclassifications from OCI resulted in a net pre-tax gain of **$0.3 million** from cash flow hedges and a pre-tax loss of **$0.9 million** from pension amortization[47](index=47&type=chunk) [Note 7—Current and Long-Term Financing](index=16&type=section&id=Note%207%E2%80%94Current%20and%20Long-Term%20Financing) This note describes the company's current and long-term financing arrangements, including its revolving credit facility - On June 24, 2025, the Company entered into an amended **$300.0 million** secured, floating-rate revolving credit facility, maturing June 24, 2030, replacing the previous facility[48](index=48&type=chunk) - The facility can be increased to **$400.0 million** and is secured by working capital assets and capital stock[48](index=48&type=chunk)[49](index=49&type=chunk) - Borrowings bear interest at a floating rate (base rate, Term SOFR, or EURIBOR) plus an applicable margin, which was **0.50%** for U.S. base rate loans and **1.50%** for Term SOFR/EURIBOR loans prior to June 30, 2025[50](index=50&type=chunk) [Note 8—Financial Instruments and Derivative Financial Instruments](index=17&type=section&id=Note%208%E2%80%94Financial%20Instruments%20and%20Derivative%20Financial%20Instruments) This note discusses the fair value of financial instruments and the company's use of derivative instruments for hedging - The fair value of revolving credit agreements and long-term debt (excluding finance leases) was **$448.3 million** at June 30, 2025, compared to a carrying value of **$450.2 million**[53](index=53&type=chunk) - The Company uses forward foreign currency exchange contracts to hedge foreign currency risks, with a net asset fair value of **$11.1 million** at June 30, 2025 (vs. net liability of **$18.5 million** at Dec 31, 2024)[54](index=54&type=chunk)[60](index=60&type=chunk) - Interest rate swap agreements are used to reduce floating rate financing risks, with a net asset fair value of **$6.1 million** at June 30, 2025 (vs. **$9.9 million** at Dec 31, 2024)[56](index=56&type=chunk)[62](index=62&type=chunk) - Approximately **$7.1 million** of net deferred loss from foreign currency hedges and **$4.4 million** of net deferred gain from interest rate swaps are expected to be reclassified into earnings over the next twelve months[61](index=61&type=chunk)[62](index=62&type=chunk) [Note 9—Retirement Benefit Plans](index=19&type=section&id=Note%209%E2%80%94Retirement%20Benefit%20Plans) This note outlines the company's retirement benefit plans, including pension freezes and de-risking strategies - Pension benefits for U.S. and U.K. plans are frozen, with only certain Netherlands employees still earning benefits under a defined benefit plan[66](index=66&type=chunk) - In 2025, the U.K. plan trustee entered into a buy-in contract with a third-party insurance company as part of a de-risking strategy[66](index=66&type=chunk) Net Periodic Pension Expense (Six Months Ended June 30, In millions) | Pension Type | 2025 | 2024 | | :------------------ | :--- | :--- | | U.S. Pension | $0.9 | $0.8 | | Non-U.S. Pension | $1.1 | $(0.2) | | **Total** | **$2.0** | **$0.6** | [Note 10—Inventories](index=20&type=section&id=Note%2010%E2%80%94Inventories) This note provides a summary of inventory balances, valuation methods, and impairment charges Inventories Summary (In millions) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :------------------ | | Finished goods and service parts | $422.9 | $393.3 | | Work in process | $30.3 | $32.1 | | Raw materials | $435.2 | $431.7 | | Total manufactured inventories | $888.4 | $857.1 | | LIFO reserve | $(111.8) | $(102.8) | | **Total inventory** | **$776.6** | **$754.3** | - Total inventory increased to **$776.6 million** at June 30, 2025, from **$754.3 million** at December 31, 2024[69](index=69&type=chunk) - **51%** of total inventories were determined using the LIFO method at June 30, 2025, primarily for manufactured inventories in the U.S. lift truck business[69](index=69&type=chunk) - Impairment charges of **$4.6 million** related to inventory were recorded in Q2 2025 due to the Nuvera business realignment[70](index=70&type=chunk) [Note 11—Product Warranties](index=20&type=section&id=Note%2011%E2%80%94Product%20Warranties) This note details the company's product warranty policies and changes in warranty obligations - The Company provides standard warranties on lift trucks (generally **12 months/1,000-2,000 operating hours**) and sells extended warranty agreements (additional **2-5 years/up to 2,400-10,000 operating hours**)[71](index=71&type=chunk)[72](index=72&type=chunk) Product Warranty Obligations (In millions) | Metric | 2025 | | :--------------------------------- | :--- | | Balance at December 31, 2024 | $87.2 | | Current year warranty expense | $14.7 | | Change in estimate related to pre-existing warranties | $0.4 | | Payments made | $(23.5) | | Foreign currency effect | $1.7 | | **Balance at June 30, 2025** | **$80.5** | - The warranty liability decreased to **$80.5 million** at June 30, 2025, from **$87.2 million** at December 31, 2024, reflecting payments made and foreign currency effects[74](index=74&type=chunk) [Note 12—Contingencies](index=21&type=section&id=Note%2012%E2%80%94Contingencies) This note addresses the company's exposure to various legal and regulatory proceedings and related accruals - The Company is subject to various legal and regulatory proceedings, including product liability and environmental claims, which are incidental to ordinary business[75](index=75&type=chunk) - Management believes the likelihood of incurring costs materially in excess of recognized accruals for these claims is remote[75](index=75&type=chunk) [Note 13—Guarantees](index=21&type=section&id=Note%2013%E2%80%94Guarantees) This note outlines the company's guarantees, including recourse obligations and debt guarantees for joint ventures - Total amounts subject to recourse or repurchase obligations decreased to **$161.4 million** at June 30, 2025, from **$219.2 million** at December 31, 2024[76](index=76&type=chunk) - Approximately **$134.0 million** of these obligations at June 30, 2025, related to transactions with HYGFS, a **20%**-owned joint venture[78](index=78&type=chunk) - The Company guarantees **20%** of HYGFS' debt with Wells Fargo Financial Leasing, Inc. (WF), with a contractual guarantee of **$285.2 million** at June 30, 2025, secured by HYGFS' customer receivables and other assets[78](index=78&type=chunk) [Note 14—Equity and Debt Investments](index=22&type=section&id=Note%2014%E2%80%94Equity%20and%20Debt%20Investments) This note details the company's equity investments in unconsolidated affiliates and their financial contributions - The Company holds equity investments in HYGFS (**20%** interest) and Sumitomo NACCO Forklift Co., Ltd. (SN, **50%** interest), accounted for using the equity method[79](index=79&type=chunk) Equity Investments in Unconsolidated Affiliates (In millions) | Affiliate | June 30, 2025 | December 31, 2024 | | :------------------ | :------------ | :------------------ | | HYGFS | $25.4 | $27.7 | | SN | $29.8 | $26.6 | | Bolzoni investments | $0.5 | $0.4 | - Dividends received from HYGFS for the six months ended June 30, 2025, were **$8.0 million**, up from **$4.4 million** in 2024[80](index=80&type=chunk) - HYGFS and SN reported net income of **$25.6 million** for the six months ended June 30, 2025, compared to **$22.9 million** in 2024[80](index=80&type=chunk) [Note 15—Restructuring and Impairment Charges](index=23&type=section&id=Note%2015%E2%80%94Restructuring%20and%20Impairment%20Charges) This note outlines the restructuring and impairment charges recognized, primarily due to the Nuvera strategic realignment - The Company recognized **$15.7 million** in restructuring and impairment charges for Q2 2025 and **$15.9 million** for the six months ended June 30, 2025[82](index=82&type=chunk) - These charges include **$9.6 million** for long-lived asset impairment and **$4.6 million** for inventory impairment related to the Nuvera strategic realignment, plus **$1.0 million** in employee-severance costs[83](index=83&type=chunk) - An additional **$0.5 million** (Q2) and **$0.7 million** (six months) were recognized for 2024 programs to streamline manufacturing and optimize operations[85](index=85&type=chunk) - The accrual for cash severance charges was **$9.4 million** at June 30, 2025[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, liquidity, and capital resources for Q2 and H1 2025, including segment results and outlook [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=24&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) This section confirms that critical accounting policies and estimates remain consistent with prior disclosures - Critical Accounting Policies and Estimates have not materially changed since December 31, 2024[91](index=91&type=chunk) [FINANCIAL REVIEW](index=25&type=section&id=FINANCIAL%20REVIEW) This section provides a detailed financial review of the company's performance for the second quarter and first six months of 2025 [Second Quarter of 2025 Compared with Second Quarter of 2024](index=26&type=section&id=Second%20Quarter%20of%202025%20Compared%20with%20Second%20Quarter%20of%202024) This section compares the company's financial performance for Q2 2025 against Q2 2024, highlighting revenue and operating profit changes Q2 2025 vs Q2 2024 Revenue Changes (In millions) | Category | 2025 | 2024 | Change (%) | | :------------------ | :----- | :----- | :--------- | | Total Revenues | $956.6 | $1,168.1 | (18.1)% | | Lift Truck Business | $904.2 | $1,118.0 | (19.1)% | | Bolzoni | $90.6 | $102.4 | (11.5)% | - Lift Truck revenues decreased primarily due to a decline in unit volume and a shift to lower-priced lift trucks, mainly in the Americas and EMEA, reflecting economic uncertainty and weaker industry booking rates[95](index=95&type=chunk) Q2 2025 vs Q2 2024 Operating Profit (Loss) Changes (In millions) | Segment | 2025 | 2024 | Change (%) | | :------------------ | :------- | :----- | :--------- | | Total Operating Profit (Loss) | $(8.5) | $95.6 | (108.9)% | | Americas | $11.7 | $92.5 | (87.4)% | | EMEA | $(15.0) | $4.8 | (412.5)% | | JAPIC | $(7.6) | $(5.7) | (33.3)% | | Bolzoni | $2.4 | $4.0 | (40.0)% | - Operating profit decreased significantly due to lower gross profit (volume, overhead absorption, material/freight costs, unfavorable pricing) and **$15.7 million** in restructuring and impairment charges[97](index=97&type=chunk) - Net loss attributable to stockholders was **$13.9 million** in Q2 2025, compared to net income of **$63.3 million** in Q2 2024, primarily due to lower operating profit[101](index=101&type=chunk) [First Six Months of 2025 Compared with First Six Months of 2024](index=28&type=section&id=First%20Six%20Months%20of%202025%20Compared%20with%20First%20Six%20Months%20of%202024) This section compares the company's financial performance for the first six months of 2025 against the same period in 2024 H1 2025 vs H1 2024 Revenue Changes (In millions) | Category | 2025 | 2024 | Change (%) | | :------------------ | :------- | :------- | :--------- | | Total Revenues | $1,867.0 | $2,224.6 | (16.1)% | | Lift Truck Business | $1,768.6 | $2,125.0 | (16.8)% | | Bolzoni | $170.9 | $198.6 | (13.9)% | - Revenues decreased by **16.1%** for the first six months of 2025, mainly due to a decline in lift truck unit volume in the Americas and EMEA, driven by economic uncertainty[102](index=102&type=chunk) H1 2025 vs H1 2024 Operating Profit (Loss) Changes (In millions) | Segment | 2025 | 2024 | Change (%) | | :------------------ | :------- | :------- | :--------- | | Total Operating Profit (Loss) | $12.8 | $179.4 | (92.9)% | | Americas | $54.2 | $172.7 | (68.6)% | | EMEA | $(29.9) | $10.0 | (399.0)% | | JAPIC | $(14.9) | $(11.2) | (33.0)% | | Bolzoni | $3.0 | $7.3 | (58.9)% | - Operating profit decreased significantly to **$12.8 million** from **$179.4 million**, primarily due to lower gross profit (volume, material/freight costs, lower overhead absorption) and **$15.9 million** in restructuring charges[103](index=103&type=chunk) - Net loss attributable to stockholders was **$5.3 million** for the first six months of 2025, a substantial decline from **$114.8 million** net income in 2024[108](index=108&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=29&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section analyzes the company's liquidity, cash flow, financing activities, and capital structure [Cash Flows](index=29&type=section&id=Cash%20Flows) This section details the company's cash flows from operating, investing, and financing activities - Net cash used for operating activities was **$7.5 million** for the first six months of 2025, a **$27.4 million** decrease from **$19.9 million** provided in 2024, mainly due to lower net income and higher employee-related payments[109](index=109&type=chunk) - Net cash used for investing activities increased by **$6.9 million** to **$25.6 million**, driven by higher capital expenditures and the Bolzoni acquisition[110](index=110&type=chunk) [Financing Activities](index=30&type=section&id=Financing%20Activities) This section describes the company's financing activities, including credit facilities and debt obligations - Net cash used for financing activities improved by **$11.1 million** to **$0.3 million**, primarily due to increased borrowings under revolving credit facilities and reduced treasury stock purchases[111](index=111&type=chunk) - The Company entered into a new **$300.0 million** secured revolving credit facility on June 24, 2025, maturing in 2030, with **$205.5 million** availability at June 30, 2025[112](index=112&type=chunk)[115](index=115&type=chunk) - The Company also has a **$225.0 million** Term Loan maturing in May 2028, with **$216.0 million** outstanding at June 30, 2025[116](index=116&type=chunk)[119](index=119&type=chunk) - The Company was in compliance with all covenants for both the Facility and Term Loan at June 30, 2025[114](index=114&type=chunk)[118](index=118&type=chunk) [Contractual Obligations, Contingent Liabilities and Commitments](index=32&type=section&id=Contractual%20Obligations%2C%20Contingent%20Liabilities%20and%20Commitments) This section confirms no significant changes in contractual obligations or contingent liabilities since the prior year-end - No significant changes in contractual obligations or commercial commitments since December 31, 2024[121](index=121&type=chunk) [Capital Expenditures](index=32&type=section&id=Capital%20Expenditures) This section provides a summary of actual and planned capital expenditures for the current and upcoming periods Capital Expenditures (In millions) | Category | Six Months Ended June 30, 2025 | Planned for Remainder of 2025 | Planned 2025 Total | Actual 2024 | | :------------------ | :----------------------------- | :---------------------------- | :----------------- | :---------- | | Lift truck business | $21.1 | $24-29 | $45-50 | $40.9 | | Bolzoni | $3.3 | $2-6 | $5-10 | $6.9 | | **Total** | **$24.4** | **$26-35** | **$50-60** | **$47.8** | - Planned capital expenditures for 2025 are forecasted to range between **$50 million** and **$60 million**, primarily for manufacturing improvements, product development, and IT infrastructure[122](index=122&type=chunk)[145](index=145&type=chunk) [Capital Structure](index=32&type=section&id=Capital%20Structure) This section presents key metrics related to the company's capital structure, including debt and equity Capital Structure (In millions) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :------------ | :------------------ | :----- | | Cash and cash equivalents | $66.9 | $96.6 | $(29.7) | | Net assets | $1,036.6 | $934.8 | $101.8 | | Total debt | $(473.2) | $(440.7) | $(32.5) | | Total temporary and permanent equity | $563.4 | $494.1 | $69.3 | | Debt to total capitalization | 46 % | 47 % | (1)% | - Debt to total capitalization improved slightly to **46%** at June 30, 2025, from **47%** at December 31, 2024[124](index=124&type=chunk) [OUTLOOK](index=32&type=section&id=OUTLOOK) This section provides the company's forward-looking perspective on strategic initiatives, market conditions, and financial projections [Consolidated Strategic Perspective](index=32&type=section&id=Consolidated%20Strategic%20Perspective) This section outlines the company's strategic assumptions and the anticipated impact of tariffs on future financial results - The full-year 2025 outlook assumes U.S. tariffs in effect on July 9, 2025, no extension of Section 301 tariff exemption beyond August 31, 2025, and no additional global tariffs[125](index=125&type=chunk)[126](index=126&type=chunk) - Tariffs are expected to negatively affect financial results in H2 2025, despite proactive initiatives like price increases and cost optimization[125](index=125&type=chunk) [Lift Truck Business](index=33&type=section&id=Lift%20Truck%20Business) This section discusses the outlook for the lift truck business, including bookings, backlog, production, and strategic initiatives - Global lift truck bookings significantly contracted in Q2 2025 due to economic uncertainty and deferred capital expenditures, with dollar value bookings decreasing to **$330 million** from **$590 million** in Q1 2025[128](index=128&type=chunk)[130](index=130&type=chunk) - Backlog stood at **$1.7 billion** at the end of Q2 2025, down from **$1.9 billion** at Q1 2025, as shipments exceeded bookings[131](index=131&type=chunk) - Production output is expected to increase in H2 2025 compared to H1, but growth expectations are moderated due to macroeconomic uncertainty and tariff pressures[132](index=132&type=chunk) - Monthly price adjustments are implemented to address tariff changes and manage margins, with initial benefits from 2024 streamlining programs expected in late 2025 and into 2026[134](index=134&type=chunk)[135](index=135&type=chunk) - Nuvera's strategic realignment is expected to generate **$15-20 million** in annualized cost reductions starting H2 2025, with **$10-15 million** of Nuvera's costs integrated into the Lift Truck business for battery and charging product development[136](index=136&type=chunk) - Full-year 2025 operating profit is projected to decline relative to prior guidance due to reduced bookings, lower production volumes, and potential tariff costs[138](index=138&type=chunk) [Bolzoni](index=34&type=section&id=Bolzoni) This section provides the outlook for the Bolzoni segment, including projected revenues and operating profit - Bolzoni's Q3 2025 revenues are projected to slightly improve sequentially, with operating profit anticipated to increase moderately due to improved factory utilization[140](index=140&type=chunk) - Full-year 2025 revenues are anticipated to decline year-over-year, and operating profit is projected to be below 2024's adjusted operating profit due to weaker demand[141](index=141&type=chunk) [Consolidated](index=34&type=section&id=Consolidated) This section presents the consolidated outlook for the company, including revenue, profit, and capital expenditure forecasts - The Company anticipates modest sequential growth in both revenue and operating profit in Q3 2025[142](index=142&type=chunk) - Full-year 2025 revenues, production, and profits are expected to be below 2024 results, with the outlook deteriorating due to tariff impacts and a greater-than-expected decline in demand in H2 2025[142](index=142&type=chunk) - The Company targets a **7%** operating profit margin across the business cycle and is focused on generating strong operating cash flow and accretive capital deployment[143](index=143&type=chunk)[144](index=144&type=chunk) - Capital expenditures for 2025 are now forecasted to range between **$50 million** and **$60 million**[145](index=145&type=chunk) [Long-Term Objectives](index=35&type=section&id=Long-Term%20Objectives) This section outlines the company's long-term vision and strategic initiatives for sustainable growth - The Company's vision is to transform material movement from Port to Home by providing optimal customer solutions and exceptional customer care[147](index=147&type=chunk) - Strategic initiatives focus on transforming the core lift truck business and building new opportunities in warehouse lift trucks, vehicle automation, energy management, and attachments to achieve long-term revenue and operating profit growth[147](index=147&type=chunk) [EFFECTS OF FOREIGN CURRENCY](index=35&type=section&id=EFFECTS%20OF%20FOREIGN%20CURRENCY) This section addresses the impact of foreign currency exchange rate movements on the company's financial results - The Company operates internationally and is subject to variability from exchange rate movements, which impact revenues, operating profit, and net income[148](index=148&type=chunk) [FORWARD-LOOKING STATEMENTS](index=35&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section cautions that forward-looking statements are subject to risks and uncertainties that could materially affect actual results - Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including supply chain disruptions, tariffs, reduced demand, customer acceptance of pricing, and geopolitical developments[149](index=149&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section confirms no material changes to market risk exposures since December 31, 2024, referring to the 10-K for details - No material changes in the Company's market risk exposures since December 31, 2024[150](index=150&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and no material changes in internal control over financial reporting during Q2 2025 - The Company's disclosure controls and procedures were effective as of June 30, 2025[151](index=151&type=chunk) - No material changes in internal control over financial reporting occurred during Q2 2025[152](index=152&type=chunk) [PART II. OTHER INFORMATION](index=36&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) This section confirms no legal proceedings to report - No legal proceedings to report[154](index=154&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section confirms no material changes to previously disclosed risk factors from the 2024 Form 10-K and Q1 2025 Form 10-Q - No material changes from previously disclosed risk factors in the 2024 Form 10-K and Q1 2025 Form 10-Q[154](index=154&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports no Class A common stock repurchases in Q2 2025 and details remaining repurchase authorization - No shares of Class A common stock were repurchased by the Company during Q2 2025[155](index=155&type=chunk) - As of June 30, 2025, **$44,239,122** or **1.5 million shares** (whichever comes first) remain authorized under the stock repurchase program approved in November 2024[155](index=155&type=chunk) [Item 3. Defaults Upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section confirms no defaults upon senior securities - No defaults upon senior securities[156](index=156&type=chunk) [Item 4. Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the company - Mine Safety Disclosures are not applicable[156](index=156&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) This section confirms no Rule 10b5-1 or non-Rule 10b5-1 trading arrangement changes by directors or officers in Q2 2025 - No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025[156](index=156&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including agreements, certifications, and XBRL documents - Exhibits include the Third Amended and Restated Loan, Security and Guaranty Agreement (Exhibit 10.1), certifications (Exhibits 31(i)(1), 31(i)(2), 32), and Inline XBRL documents (Exhibits 101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[157](index=157&type=chunk) [Signatures](index=38&type=section&id=Signatures) This section contains the certification signature of Dena R. McKee, VP, Controller, and Chief Accounting Officer - The report is signed by Dena R. McKee, Vice President, Controller and Chief Accounting Officer, on August 5, 2025[161](index=161&type=chunk)

[Q2 2025 Financial Performance Overview](index=1&type=section&id=Q2%202025%20Financial%20Performance%20Overview) Hyster-Yale's Q2 2025 financial results, covering consolidated performance, segment analysis, and income tax [Consolidated Results](index=1&type=section&id=Consolidated%20Results) Consolidated results for Q2 2025 show an 18% year-over-year revenue decline and a shift from operating profit to loss, despite sequential revenue growth | ($ in millions except per share amounts) | Q2 2025 | Q2 2024 | % Change | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $956.6 | $1,168.1 | (18)% | $910.4 | 5% | | **Operating (Loss) Profit** | $(8.5) | $95.6 | (109)% | $21.3 | (140)% | | **Net (Loss) Income** | $(13.9) | $63.3 | (122)% | $8.6 | (262)% | | **Diluted (Loss) Earnings per Share** | $(0.79) | $3.58 | (122)% | $0.48 | (265)% | | **Adjusted Operating Profit** | $7.2 | $95.6 | (92)% | $21.5 | (67)% | | **Adjusted Net (Loss) Income** | $(2.3) | $63.3 | (104)% | $8.7 | (126)% | - Key operational highlights for Q2 2025 include a **5% sequential revenue improvement**, a renewed **$300 million credit facility**, and a significant decline in bookings attributed to tariff uncertainty among customers[7](index=7&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Analysis of the financial performance of the Lift Truck and Bolzoni business segments in Q2 2025 [Lift Truck Business](index=1&type=section&id=Lift%20Truck%20Business) Lift Truck business revenues declined 19% year-over-year with a significant operating profit loss, impacted by lower volumes and tariff costs Lift Truck Revenues by Geography ($ in millions) | Region | Q2 2025 | Q2 2024 | % Change | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total** | **$904.2** | **$1,118.0** | **(19)%** | **$864.4** | **5%** | | Americas | $707.5 | $881.5 | (20)% | $698.9 | 1% | | EMEA | $148.3 | $187.8 | (21)% | $118.2 | 25% | | JAPIC | $48.4 | $48.7 | (1)% | $47.3 | 2% | Lift Truck Operating Profit (Loss) by Geography ($ in millions) | Region | Q2 2025 | Q2 2024 | % Change | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total** | **$(10.9)** | **$91.6** | **(112)%** | **$20.3** | **(154)%** | | Americas | $11.7 | $92.5 | (87)% | $42.5 | (72)% | | EMEA | $(15.0) | $4.8 | n.m. | $(14.9) | (1)% | | JAPIC | $(7.6) | $(5.7) | (33)% | $(7.3) | (4)% | - Product margins declined due to increased material costs from higher tariffs and an unfavorable product mix. The company incurred approximately **$10 million in additional tariff-related costs** in Q2 2025 compared to the prior year[13](index=13&type=chunk) - Following Nuvera's strategic realignment, its results are now included in the Americas segment. Q2 2025 adjusted results exclude **$15 million in severance and impairment costs** related to this realignment[13](index=13&type=chunk) [Bolzoni Business](index=3&type=section&id=Bolzoni%20Business) Bolzoni's revenue decreased 12% year-over-year with a 40% drop in operating profit, primarily due to European wage inflation | ($ in millions) | Q2 2025 | Q2 2024 | % Change | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $90.6 | $102.4 | (12)% | $80.3 | 13% | | **Gross Profit** | $21.4 | $22.4 | (4)% | $18.5 | 16% | | **Operating Profit** | $2.4 | $4.0 | (40)% | $0.6 | 300% | - The year-over-year decline in operating profit was mainly driven by increased employee-related costs from wage inflation in Europe, which offset improvements in gross margin from material cost savings and favorable product mix[16](index=16&type=chunk) [Income Tax Expense](index=3&type=section&id=Income%20Tax%20Expense) Q2 2025 income tax expense significantly decreased due to lower pre-tax earnings, with a new tax act under evaluation for future impact - The low tax expense is attributed to lower pre-tax earnings and the company's inability to recognize deferred tax assets due to its U.S. valuation allowance position[18](index=18&type=chunk) - A new tax act signed on July 4, 2025, could favorably impact the company, particularly through provisions allowing immediate expensing of R&D costs. The financial impact is under evaluation and not included in Q2 2025 results[19](index=19&type=chunk) [Financial Position and Cash Flow](index=4&type=section&id=Financial%20Position%20and%20Cash%20Flow) Analysis of the company's liquidity, capital allocation, and cash flow performance in Q2 2025 [Liquidity and Capital Allocation](index=4&type=section&id=Liquidity%20and%20Capital%20Allocation) Liquidity improved with a renewed credit facility and reduced debt, but financial leverage increased due to lower earnings | ($ in millions) | June 30, 2025 | June 30, 2024 | March 31, 2025 | | :--- | :--- | :--- | :--- | | **Debt** | $473.2 | $501.9 | $484.0 | | **Cash** | $66.9 | $66.5 | $77.2 | | **Net Debt** | $406.3 | $435.4 | $406.8 | | **Net Debt / Adjusted EBITDA** | 2.4 | 1.3 | 1.6 | - The company renewed its **$300 million revolving credit facility**, resulting in lower borrowing margins, increased covenant flexibility, and an extended maturity to June 2030[22](index=22&type=chunk) - Generated **$29 million in cash from operations**, primarily from favorable working capital actions. Inventory levels decreased by **$28 million sequentially** (excluding currency and tariff impacts)[25](index=25&type=chunk) [Business Outlook](index=5&type=section&id=Business%20Outlook) Future outlook for consolidated performance, segment-specific projections, and capital allocation strategies [Consolidated Strategic Perspective](index=5&type=section&id=Consolidated%20Strategic%20Perspective) Full-year 2025 outlook is uncertain due to expected negative impacts from U.S. tariffs, despite mitigation efforts - Tariffs are expected to negatively impact financial results in the second half of 2025, even after mitigation actions such as price increases and supply chain adjustments are implemented[26](index=26&type=chunk) - The outlook is based on several key assumptions, including no new global tariffs beyond those effective July 9, 2025, and the non-extension of a Section 301 tariff exemption for lift truck parts beyond August 31, 2025[31](index=31&type=chunk) [Lift Truck Business Outlook](index=5&type=section&id=Lift%20Truck%20Business%20Outlook) Lift Truck business faces moderated growth expectations due to sharply reduced bookings and backlog, with ongoing optimization projects | ($ in millions) | Q2 2025 | Q2 2024 | % Change | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Unit Bookings ($ Value)** | $330 | $380 | (13)% | $590 | (44)% | | **Unit Backlog ($ Value)** | $1,650 | $2,560 | (36)% | $1,910 | (14)% | - The sharp sequential decline in bookings was partly due to customers accelerating purchases in Q1 ahead of anticipated tariff-related price increases, followed by heightened uncertainty in Q2[30](index=30&type=chunk)[32](index=32&type=chunk) - Manufacturing footprint and operational optimization projects are progressing, with expected annualized benefits of **$30 million to $40 million** starting in 2027[37](index=37&type=chunk) - Operating expenses are projected to decline modestly in 2025, benefiting from annualized cost reductions of **$15 to $20 million** from Nuvera's strategic realignment beginning in the second half of 2025[38](index=38&type=chunk) [Bolzoni Outlook](index=7&type=section&id=Bolzoni%20Outlook) Bolzoni anticipates slight sequential Q3 2025 revenue and profit improvement, but full-year results are projected to decline year-over-year - Q3 2025 revenues are expected to slightly improve sequentially, with higher attachment sales offsetting reduced legacy component sales[42](index=42&type=chunk) - Full-year 2025 revenues are anticipated to decline year-over-year, and operating profit is projected to be below 2024's adjusted operating profit[43](index=43&type=chunk) [Consolidated Outlook](index=7&type=section&id=Consolidated%20Outlook) Consolidated outlook for Q3 2025 shows modest sequential growth, but full-year 2025 results are expected to decline due to tariffs and demand - The company expects modest sequential growth in revenue and operating profit in Q3 2025[44](index=44&type=chunk) - Full-year 2025 revenues, production levels, and profits are expected to be below 2024 results, with the outlook having worsened due to tariff impacts and a significant decline in demand[44](index=44&type=chunk) - The company maintains a long-term target of a **7% operating profit margin** across the business cycle[45](index=45&type=chunk) [Capital Allocation and Cash Flow Outlook](index=7&type=section&id=Capital%20Allocation%20and%20Cash%20Flow%20Outlook) Focus on strong operating cash flow through inventory optimization, with 2025 capital expenditures forecasted between $50 million and $60 million - The company is focused on working capital efficiency, particularly inventory optimization, to support strong full-year cash flow from operations[46](index=46&type=chunk) - Capital expenditures for 2025 are forecasted to range between **$50 million and $60 million**[47](index=47&type=chunk)[48](index=48&type=chunk) [Other Information](index=8&type=section&id=Other%20Information) Additional details on the company's long-term strategic objectives and upcoming investor conference call [Long-Term Objectives](index=8&type=section&id=Long-Term%20Objectives) Hyster-Yale's long-term vision focuses on transforming material movement and building new opportunities for sustainable growth - The company's vision is to transform material movement from Port to Home by providing optimal customer solutions and exceptional customer care[49](index=49&type=chunk) - Investors are encouraged to review the Q2 2025 Investor Deck on the company's website for more detailed information on strategic initiatives[50](index=50&type=chunk) [Conference Call Information](index=8&type=section&id=Conference%20Call%20Information) Details for the investor conference call on August 6, 2025, to discuss Q2 2025 financial results - A conference call to discuss financial results is scheduled for **August 6, 2025, at 11:00 a.m. Eastern Time**[50](index=50&type=chunk) [Appendix: Financial Statements and Reconciliations](index=11&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Reconciliations) Detailed financial statements, segment information, cash flow data, and non-GAAP reconciliations for Q2 2025 [Financial Highlights (Consolidated Statements)](index=11&type=section&id=Financial%20Highlights%20%28Consolidated%20Statements%29) Consolidated income statement for Q2 2025, detailing revenues, costs, operating profit, and net income attributable to stockholders - Presents the detailed consolidated income statement, showing a net loss attributable to stockholders of **$13.9 million** for Q2 2025, compared to a net income of **$63.3 million** in Q2 2024[59](index=59&type=chunk) [Segment Information](index=12&type=section&id=Segment%20Information) Detailed financial performance by operating segment, including revenues, gross profit, and operating profit (loss) for Q2 2025 - Provides a detailed breakdown of revenues, gross profit, and operating profit by geographic and business segment, highlighting the significant operating profit decline in the Americas and the persistent losses in EMEA and JAPIC for Q2 2025[61](index=61&type=chunk) [Cash Flow, Capital Structure and Working Capital](index=13&type=section&id=Cash%20Flow%2C%20Capital%20Structure%20and%20Working%20Capital) Key data on cash flow from operations, capital structure, working capital components, and Adjusted EBITDA reconciliation - Details cash flow from operating activities, which was **$28.9 million** in Q2 2025. It also shows key balance sheet items like Debt (**$473.2 million**), Cash (**$66.9 million**), and Working Capital (**$814.3 million**) as of June 30, 2025[63](index=63&type=chunk) [Reconciliation of Non-GAAP Measures](index=14&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Reconciliation of non-GAAP financial measures, including adjusted operating profit, net income, and diluted EPS, to GAAP counterparts - Reconciles GAAP operating loss of **$(8.5) million** to an adjusted operating profit of **$7.2 million** for Q2 2025 by excluding **$15.7 million in restructuring and impairment charges**[65](index=65&type=chunk) - Provides a detailed reconciliation of adjusted operating profit by segment, showing the impact of restructuring charges primarily within the Americas segment[66](index=66&type=chunk)

Consolidated Financial Results - Hyster-Yale, Inc. reported Q2 2025 revenues of $956.6 million, a decrease of 18% compared to Q2 2024's $1,168.1 million, but an increase of 5% from Q1 2025's $910.4 million [2][54] - The company experienced an operating loss of $8.5 million in Q2 2025, a significant decline from an operating profit of $95.6 million in Q2 2024 and a decrease from a profit of $21.3 million in Q1 2025 [2][54] - Net income for Q2 2025 was a loss of $13.9 million, down 122% from a profit of $63.3 million in Q2 2024 and a decline from a profit of $8.6 million in Q1 2025 [2][54] Lift Truck Business Performance - Lift Truck revenues were $904.2 million in Q2 2025, down 19% year-over-year from $1,118.0 million in Q2 2024, but up 5% from $864.4 million in Q1 2025 [3][4] - The decline in year-over-year revenues was attributed to lower volumes across all product lines due to economic uncertainty affecting customer order patterns [4][25] - The Americas segment saw a 20% decrease in revenues to $707.5 million compared to Q2 2024, while EMEA revenues fell by 21% to $148.3 million [3][8] Gross and Operating Profit Analysis - Gross profit for Q2 2025 was $146.8 million, down 38% from $236.9 million in Q2 2024, and down 8% from $158.8 million in Q1 2025 [6][54] - The operating loss for the Lift Truck business was $10.9 million in Q2 2025, a decline of 112% from a profit of $91.6 million in Q2 2024 [6][54] - Adjusted operating profit for Q2 2025 was $4.8 million, a decrease of 95% from $91.6 million in Q2 2024 [6][54] Liquidity and Capital Structure - The company renewed a $300 million revolving credit facility in Q2 2025, improving covenant flexibility and extending the maturity date to June 2030 [7][16] - As of June 30, 2025, total debt was $473.2 million, down from $501.9 million a year earlier, with cash holdings of $66.9 million [15][56] - The net debt position improved year-over-year to $406.3 million, reflecting effective cash generation and debt reduction strategies [15][17] Market Outlook and Strategic Initiatives - The company anticipates continued challenges in the lift truck market due to economic uncertainty and tariff impacts, with a focus on maintaining operational efficiency and cost discipline [20][36] - Management is implementing price adjustments to mitigate tariff-related costs, with expectations for product margins to remain above targeted levels despite competitive pressures [31][30] - The company is committed to long-term growth through strategic initiatives in product development and operational optimization, aiming for significant annualized income benefits starting in 2027 [32][44]

Company Announcement - Hyster-Yale, Inc. will release its Second Quarter 2025 financial results after the market closes on August 5, 2025 [1] - A webcast to discuss the financial results will be hosted on August 6, 2025, at 11:00 a.m. ET [1] Webcast Access - The webcast can be accessed on the company's website approximately 15 minutes prior to the event [2] - An archive of the webcast will be available on the company's website about two hours after the live call ends [2] Company Overview - Hyster-Yale, Inc. is headquartered in Cleveland, Ohio, and offers a full line of lift trucks and solutions for materials handling [3] - The company's vision includes understanding customer applications to improve productivity and providing exceptional customer care throughout the product lifecycle [3] Subsidiaries and Products - Hyster-Yale's subsidiary, Hyster-Yale Materials Handling, Inc., designs, manufactures, and sells lift trucks and aftermarket parts under various brand names [4] - The subsidiary Bolzoni S.p.A. produces attachments and lift tables marketed under its own brand names [4] - Hyster-Yale Materials Handling has a joint venture in Japan with Sumitomo NACCO Forklift Co. Ltd. [4]

Company Performance - Hyster-Yale's stock closed at $42.27, reflecting a 2.2% increase from the previous trading session, outperforming the S&P 500's gain of 0.48% [1] - The stock has seen a slight increase of 0.07% over the past month, which is below the Industrial Products sector's gain of 6.87% and the S&P 500's gain of 5.13% [1] Earnings Projections - The upcoming EPS for Hyster-Yale is projected at $0.07, indicating a significant drop of 98.04% compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is expected to be $936.9 million, down 19.79% from the previous year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates forecast earnings of $1.36 per share and revenue of $3.69 billion, representing declines of 84.86% and 14.29% respectively compared to the previous year [3] - Recent adjustments to analyst estimates are crucial as they reflect changing business trends, with positive revisions indicating analyst optimism [3] Valuation Metrics - Hyster-Yale has a Forward P/E ratio of 30.41, which is a premium compared to the industry average Forward P/E of 16.43 [6] - The Manufacturing - Construction and Mining industry, part of the Industrial Products sector, currently holds a Zacks Industry Rank of 208, placing it in the bottom 16% of over 250 industries [6] Zacks Rank System - Hyster-Yale currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [5] - The Zacks Rank system has a strong track record, with stocks rated 1 producing an average annual return of +25% since 1988 [5]

Financial Data and Key Metrics Changes - In Q1 2025, lift truck revenues declined by 14% year over year, primarily due to lower sales volumes in The Americas and EMEA [19] - Operating cash outflows totaled $36 million, compared to inflows of $22 million in the prior year, driven by lower net income and unfavorable working capital changes [27] - The company's leverage, measured by net debt to EBITDA, was 1.6 times at the end of Q1 [26] Business Line Data and Key Metrics Changes - Lift Truck adjusted operating profit declined significantly compared to the prior year due to lower volumes and loss of manufacturing absorption [20] - JPIC revenues increased year over year due to increased volumes and a favorable product mix shift toward big trucks [19] - Bolzoni's revenues declined primarily due to the planned phase-out of lower-margin legacy products, but gross profit margins improved due to better pricing and lower material costs [22] Market Data and Key Metrics Changes - The lift truck booking market showed encouraging signs of recovery in The Americas and particularly in EMEA, with bookings of $590 million reflecting year-over-year growth and a nearly 50% sequential increase [12][30] - The company's backlog remains solid at $1.9 billion, with production rates expected to increase in Q2 [13][31] Company Strategy and Development Direction - The company is focusing on producing and selling products in the same region to avoid excess shipping costs and enhance delivery time [9] - A strategic business realignment related to Nuvera aims to enhance near-term profitability and create an integrated energy solutions program [14] - The long-term strategic focus is on driving profitable growth through innovation and operating efficiency [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant uncertainty created by shifting tariff levels and their effects on market demand and cost structures [7] - The company remains cautiously optimistic about its 2025 outlook, despite anticipating that operating profit will be below 2024's exceptionally strong results [18][35] - Management emphasized the importance of financial discipline and proactive pricing strategies to counter inflation and tariff-related costs [32][36] Other Important Information - The company expects to incur $15 million to $18 million in severance and impairment costs during Q2 due to the business realignment [16] - The effective tax rate increased due to the ongoing capitalization of research and development costs for U.S. tax purposes [25] Q&A Session Summary Question: No questions were raised during the Q&A session - The operator indicated that there were no questions from participants [43]

Financial Data and Key Metrics Changes - In Q1 2025, lift truck revenues declined by 14% year over year, primarily due to lower sales volumes in The Americas and EMEA [18] - Adjusted operating profit for the lift truck segment declined significantly compared to the prior year, primarily due to lower volumes and loss of manufacturing absorption [19] - Q1 2025 income tax expense was $8 million, significantly below the prior year's $25 million due to lower pre-tax earnings [24] - Leverage, as measured by net debt to EBITDA, was 1.6 times at the end of Q1 [25] Business Line Data and Key Metrics Changes - In The Americas, the downturn was driven by reduced sales of higher value Class IV and V internal combustion engine trucks [18] - JPIC revenues increased year over year due to increased volumes and a favorable product mix shift toward big trucks [18] - Bolzoni's revenues declined primarily due to the planned phase-out of lower margin legacy products, but gross profit margins improved due to better pricing and lower material costs [21][22] Market Data and Key Metrics Changes - The lift truck booking market showed encouraging signs of recovery in The Americas and particularly in EMEA, with bookings of $590 million reflecting year-over-year growth and a nearly 50% sequential increase [11][29] - The company's backlog remains solid at $1.9 billion, with production rates expected to increase in Q2 [12][30] Company Strategy and Development Direction - The company is focusing on producing and selling products in the same region to avoid excess shipping costs and enhance delivery time [7] - A strategic business realignment related to Nuvera aims to enhance near-term profitability and create an integrated energy solutions program [12] - The company is committed to driving profitable growth through innovation and operating efficiency, with a focus on modular product development and manufacturing optimization [9][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant uncertainty created by shifting tariff levels and their effects on market demand and cost structures [6] - The company remains cautiously optimistic about its 2025 outlook, despite anticipating that operating profit will be below 2024's exceptionally strong results [17][32] - Management emphasized the importance of financial discipline and proactive liquidity management in navigating current market challenges [25][36] Other Important Information - The company expects to incur $15 million to $18 million in severance and impairment costs during Q2 due to the business realignment [15] - The company anticipates cash flows from operations to be only moderately below 2024 levels, despite projected net income decline [36] Q&A Session Summary Question: What are the key concerns regarding tariffs and restructuring? - Management highlighted that tariffs remain a significant concern and the restructuring of the Billerica facility around energy solutions is crucial in the current market environment [39]