Core Viewpoint - Hyster-Yale, Inc. is implementing a restructuring plan aimed at optimizing operational and overhead structures to better serve customers and shareholders, particularly in response to current low industry volumes in the industrial segment, with expectations for recovery in mid-2026 [1][2]. Restructuring Plan - The restructuring will lead to a reduction of approximately 575 employees globally across manufacturing and staff functions to address mismatches in shipping and booking rates [2]. - This initiative is expected to incur a one-time pre-tax charge of about $21 million in Q4 2025, while generating annualized cost savings of approximately $40 to $45 million starting in Q1 2026 [2]. Strategic Focus - The executive team emphasizes that these difficult decisions are necessary to maintain the company's strategic path, which is detailed in the investor presentation available on its website [3]. - The company is committed to supporting affected employees during this transition and remains focused on positioning itself for sustainable, long-term profitable growth [3]. Company Overview - Hyster-Yale, Inc. is headquartered in Cleveland, Ohio, and offers a comprehensive line of lift trucks and solutions, including attachments, to meet specific materials handling needs [5]. - The company aims to transform material movement globally and is dedicated to understanding customer applications to provide optimal solutions and exceptional customer care [5]. Subsidiary Information - Hyster-Yale's subsidiary, Hyster-Yale Materials Handling, Inc., designs, engineers, manufactures, and services a wide range of lift trucks and aftermarket parts marketed under various brand names [6].

Core Insights - Hyster-Yale, Inc. (NYSE:HY) is recognized as one of the 15 Best 52-Week Low Dividend Stocks to Invest in [1] - Roth Capital has lowered its price target for Hyster-Yale to $40 from $50 while maintaining a Buy rating, citing market uncertainties and tariffs as challenges [2] - The company reported Q3 2025 revenue of $979 million, a 4% increase year-over-year, but Lift Truck revenues fell 4% to $929 million due to lower truck volumes [3] - CEO Rajiv Prasad noted an increase in bookings to $380 million in Q3 from $330 million in Q2, with strong performance in the EMEA and APAC regions [4] - Hyster-Yale is a globally integrated company offering a full range of lift trucks and tailored solutions for materials handling [5]

Financial Data and Key Metrics Changes - Q3 2025 revenues for lift trucks were $929 million, reflecting a 4% decline compared to the prior year, primarily due to lower truck volumes across all product lines [14][15] - Operating profit declined by $27 million year over year, mainly driven by lower truck volumes and higher tariff costs [16] - Q3 operating cash flow improved by nearly 25% from Q2, reaching $37 million, largely driven by improved inventory performance [18] Business Line Data and Key Metrics Changes - Lift truck bookings rose to $380 million in Q3, up from $330 million in Q2, with gains led by the EMEA and JPEC regions [5] - Bolzoni's Q3 revenues dropped 11% year over year to $87 million, primarily due to the planned phase-out of lower-margin legacy components and softer lift truck demand in the US [17] Market Data and Key Metrics Changes - Overall lift truck market demand declined across all regions and most product categories compared to Q2, with many customers postponing capital expenditures [5] - In the Americas, truck volumes fell significantly, particularly in higher-value Class 4 and 5 trucks, due to reduced manufacturing output amid demand uncertainty [15] Company Strategy and Development Direction - The company is implementing targeted initiatives to increase bookings and enhance market participation, including expanding product offerings to modular and scalable lift truck models [6][9] - The competitive landscape is changing rapidly, with increasing pressure from low-cost foreign competitors, particularly in South America and Europe [9] Management's Comments on Operating Environment and Future Outlook - Management noted that ongoing macroeconomic uncertainty, largely due to tariffs and interest rate discussions, is causing delays in customer order conversions [6] - The expectation is for demand to remain soft in the near term, with production rates adjusted to reflect actual booking and cancellation trends [11] Other Important Information - The company's backlog stood at $1.35 billion at the end of Q3, down from $1.65 billion in Q2, driven by fewer trucks shipped [10] - Direct tariff costs totaled $40 million in Q3, significantly impacting demand levels across various end markets [22] Q&A Session Summary Question: How does the current demand uncertainty compare to previous cycles? - Management indicated that while the market remains active with requests for quotes, decision-making is slow due to volatility in the environment, including concerns about tariffs and interest rates [32][33] Question: What actions could be taken if demand further degrades? - The company is reviewing all cost structures and production utilization, preparing for a conservative posture while remaining ready to ramp up if bookings increase [36] Question: What is the status of the modular scalable platform and lithium-ion strategy? - The modular scalable products have received positive feedback in key markets, and the company is launching integrated lithium-ion solutions in North America and Europe [37][38] Question: Are there specific verticals experiencing more headwinds? - Management noted a slowdown in heavy manufacturing, particularly in the auto sector, while light manufacturing and distribution have been stable [42] Question: What is the outlook for the fourth quarter? - The company expects Q4 revenue to decline compared to Q3 due to lower production rates and persistent tariff headwinds, projecting a moderate operating loss [24]

Financial Performance - Q3 2025 - Hyster-Yale's Q3 2025 revenue was $979 million, a decrease of 4% compared to the prior year[11, 14, 16] - The adjusted operating profit for Q3 2025 was $3 million, significantly lower than the prior year's strong results[11, 14, 16] - The adjusted net loss was $1.6 million for Q3 2025[11] - Lift Truck revenue was $929 million, 4% lower year-over-year[16, 19] - Bolzoni revenue was $87 million, 11% lower year-over-year[16, 19] Liquidity and Debt - The company has $275 million in unused borrowing capacity, improved by $10 million compared to Q2 2025[14] - Working capital as a percentage of sales decreased by 130 basis points to 20% compared to Q2 2025 due to improved inventory efficiency[14] - The company's debt composition includes $70 million in ABL Term Loan, $214 million in Working Capital Facilities, $100 million in Wholesale Financing, $56 million in Leases, and $23 million in Other debt, totaling $468 million[21] Outlook and Strategy - The company expects a profit decline in Q4 2025 on lower revenues, reflecting tariff-related cost and demand impacts[34] - Capex of $50-$60 million is forecasted[34] - The company's long-term financial objectives include achieving 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) of over 20%[104]

Core Insights - Hyster-Yale reported a quarterly loss of $0.09 per share, missing the Zacks Consensus Estimate of $0.03, and a significant decline from earnings of $0.97 per share a year ago, indicating an earnings surprise of -400.00% [1] - The company generated revenues of $979.1 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.45%, but down from $1.02 billion year-over-year [2] - Hyster-Yale shares have decreased approximately 30% year-to-date, contrasting with the S&P 500's gain of 16.5% [3] Earnings Outlook - The future performance of Hyster-Yale's stock will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $942.85 million, and for the current fiscal year, it is $0.75 on revenues of $3.77 billion [7] Industry Context - The Manufacturing - Construction and Mining industry, to which Hyster-Yale belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Revenue Performance - Revenues for the third quarter of 2025 decreased by 3.6% to $979.1 million compared to $1,016.1 million in the third quarter of 2024, primarily due to a decline in unit volume in the Americas [99]. - The Americas segment reported revenues of $732.7 million, down 5.0% from $771.5 million in the same period last year [96]. - The EMEA segment saw a revenue increase of 3.5% to $150.1 million, compared to $145.0 million in the third quarter of 2024 [96]. - Bolzoni's revenues decreased by 10.9% to $87.0 million in the third quarter of 2025, compared to $97.6 million in the same period last year [96]. - Bolzoni's revenues decreased by 12.2% to $2,846.1 million in the first nine months of 2025 from $3,240.7 million in the same period of 2024, primarily due to a decline in unit volume [106]. Profitability and Income - Net income attributable to stockholders for the third quarter of 2025 was a loss of $2.3 million, a significant decline from a profit of $17.2 million in the same quarter of 2024 [97]. - The diluted earnings per share for the third quarter of 2025 was a loss of $0.13, compared to earnings of $0.97 in the third quarter of 2024 [97]. - The company reported an operating profit of $2.3 million in Q3 2025, down from $33.1 million in Q3 2024, largely due to tariff costs of approximately $40 million and lower unit volumes [101]. - Operating profit in the Americas decreased to $21.1 million in Q3 2025 from $40.9 million in Q3 2024, attributed to lower gross profit and overhead absorption rates [102]. - EMEA experienced an operating loss of $16.9 million in Q3 2025, compared to a loss of $9.6 million in Q3 2024, driven by unfavorable pricing and increased material costs [103]. - The net loss attributable to stockholders was $2.3 million in Q3 2025, a significant decline from net income of $17.2 million in Q3 2024 [105]. - For the first nine months of 2025, the operating profit decreased from $212.5 million in 2024 to $15.1 million, primarily due to lower gross profit and approximately $60 million in tariff costs [107]. - JAPIC's operating loss increased to $19.1 million in the first nine months of 2025 from $15.3 million in the same period of 2024, mainly due to lower gross profit and higher material costs [110]. Cash Flow and Financing - Net cash provided by operating activities decreased by $60.4 million in the first nine months of 2025 compared to the same period in 2024, primarily due to changes in net income and increased employee-related payments [113]. - The company entered into a $300.0 million secured revolving credit facility in Q2 2025, which can be increased to $400.0 million, maturing on June 24, 2030 [116]. - As of September 30, 2025, the book value of assets held as collateral under the revolving credit facility was approximately $1.1 billion [117]. - The Company has a U.S. borrowing capacity of $210.0 million and a non-U.S. borrowing capacity of $90.0 million, with total availability of $225.1 million as of September 30, 2025 [119]. - The Term Loan outstanding amount is $215.0 million, with a net amount outstanding of $212.7 million after discounts and fees, and an applicable interest rate of 7.78% [123]. Backlog and Bookings - The backlog of lift truck orders as of September 30, 2025, was approximately $1.35 billion, down from $2.3 billion in the previous year [98]. - The Company’s backlog at the end of Q3 2025 was $1.35 billion, down from $1.65 billion at the end of Q2 2025, indicating a reduction in new bookings [138]. - Dollar value bookings improved to $380 million in Q3 2025, up from $330 million in the prior quarter, driven by gains in the EMEA and JAPIC regions [133]. Strategic Initiatives and Future Outlook - The company completed a strategic realignment of Nuvera Fuel Cells, merging it into HYMH to enhance integrated energy solutions in the Americas segment [94]. - Planned capital expenditures for 2025 are expected to range between $50 million and $60 million, with $38.9 million spent in the first nine months of 2025 [126][150]. - The Company anticipates a moderate operating loss in Q4 2025, primarily due to moderated production rates and consistent tariff costs with Q3 2025 levels [145]. - Operational improvement projects initiated in 2024 are expected to generate annualized income and cash benefits ranging between $30 million to $40 million by 2027 [143]. - The Company is committed to disciplined capital allocation, including continued debt reduction and strategic investments for long-term growth [151]. Risks and Challenges - The Company operates internationally and is subject to variability from foreign currency exchange rate movements, impacting revenues, operating profit, and net income [153]. - The Company faces risks from supply chain disruptions, including delays in delivery and increased costs due to inflation, affecting liquidity [155]. - There is a potential reduction in global demand for lift trucks and related aftermarket parts, which may impact overall sales [155]. - The Company is exposed to geopolitical risks, including changes in U.S. trade policy and tariffs, which could affect operations and costs [155]. - The effectiveness of global cost reduction programs and successful implementation of procurement initiatives are critical for maintaining profitability [155]. - The Company is focused on the successful commercialization of products related to the energy solutions program, which is a key growth area [155]. - Political and economic uncertainties in operating countries may impact business operations and strategic decisions [155]. - The Company must navigate challenges related to workforce management, including attracting and retaining employees [155]. - Exchange rate fluctuations and interest rate volatility are ongoing concerns that could affect financial performance [155]. - The Company is committed to protecting its information technology infrastructure against potential cyber threats and service interruptions [155].

Financial Performance - Q3 2025 consolidated revenues were $979.1 million, a 4% decline year-over-year but a 2% increase sequentially [4]. - Operating profit decreased to $2.3 million, down 93% year-over-year, while net loss was $2.3 million compared to a net income of $17.2 million in Q3 2024 [4]. - Revenues for Q3 2025 were $979.1 million, a decrease of 3.9% from $1,016.1 million in Q3 2024 [57]. - Gross profit for Q3 2025 was $155.9 million, down 19.2% from $192.9 million in Q3 2024 [57]. - Net income attributable to stockholders for Q3 2025 was a loss of $2.3 million, compared to a profit of $17.2 million in Q3 2024 [57]. - Basic earnings per share for Q3 2025 were $(0.13), compared to $0.98 in Q3 2024 [57]. - Total revenues for the nine months ended September 30, 2025, were $2,846.1 million, down 12.2% from $3,240.7 million in the same period of 2024 [57]. - Cash flow before financing activities for Q3 2025 was $22.9 million, a decrease from $58.1 million in Q3 2024 [62]. - Net cash provided by operating activities for Q3 2025 was $37.1 million, down from $70.1 million in Q3 2024 [62]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $136.0 million, compared to $64.5 million in the same period of 2024 [62]. Revenue and Backlog - Lift Truck revenues were $929.3 million, reflecting a 4% decline year-over-year due to lower truck volumes across all product lines [5]. - The backlog at the end of Q3 2025 was $1.35 billion, down from $1.65 billion at the end of Q2 2025, as shipments outpaced new bookings [29]. - The company anticipates further backlog degradation in the near term due to ongoing weaker demand and reduced truck bookings [30]. - Q3 2025 unit bookings increased to $380 million, a 3% rise from Q3 2024 and a 15% increase from Q2 2025 [32]. - Unit backlog value decreased to $1.35 billion, down 41% from Q3 2024 and down 18% from Q2 2025 [32]. Operating Expenses and Profitability - Operating cash flow improved to $37 million, attributed to increased inventory efficiency [6]. - Tariff costs amounted to approximately $40 million in Q3 2025, impacting overall profitability [11]. - Operating expenses in Q4 2025 are projected to remain consistent with year-to-date levels, resulting in a modest year-over-year decrease [36]. - Q4 2025 is expected to result in a moderate operating loss due to moderated production rates, with tariff costs projected to remain consistent with Q3 2025 [37]. - The company aims to maintain a 7% operating profit margin over the business cycle, although near-term results are expected to fall below this target due to ongoing market uncertainty [39]. - The company is focusing on generating strong operating cash flow despite projected lower net income in 2025 [41]. Strategic Initiatives - The company expects a favorable financial impact of $2 million to $3 million in Q4 2025 from potential reductions in Chinese tariff levels [21]. - The company remains focused on liquidity management and optimizing working capital levels amid ongoing economic uncertainty [19]. - The company is committed to disciplined capital allocation, including continued debt reduction and strategic investments for long-term growth [43]. - The company is expanding modular and scalable models to support customer applications and enhance competitive positioning across product ranges [33]. - The company expects operational improvement projects to incur an additional $3 million in Q4 2025 and between $12 million to $25 million in 2026, with anticipated annualized income benefits of $30 million to $40 million by 2027 [35]. Regional Performance - Q3 2025 adjusted operating profit for the Americas was $22.1 million, down from $41.1 million in Q3 2024, reflecting a decrease of 46.3% [65]. - EMEA region reported an adjusted operating loss of $16.9 million in Q3 2025, worsening from a loss of $9.6 million in Q3 2024 [65]. - JAPIC adjusted operating loss was $4.2 million in Q3 2025, compared to a loss of $3.1 million in Q3 2024 [65]. - Lift Truck segment showed an adjusted operating profit of $1.0 million in Q3 2025, significantly down from $28.4 million in Q3 2024 [65]. - Bolzoni's adjusted operating profit remained stable at $2.1 million in Q3 2025, unchanged from Q3 2024 [65]. - Total adjusted operating profit for the company was $3.3 million in Q3 2025, a decline from $34.3 million in Q3 2024, representing a decrease of 90.4% [65]. Restructuring and Operational Efficiency - The company reported restructuring and impairment charges of $1.0 million for Q3 2025, compared to $1.2 million in Q3 2024 [64]. - Restructuring and impairment charges included $1.0 million in Q3 2025, compared to $1.2 million in Q2 2025 [65]. - The company is undergoing a strategic realignment, impacting its manufacturing footprint and operational efficiency [65]. - The company continues to focus on improving its operational performance amid challenging market conditions [65].

Core Insights - Hyster-Yale, Inc. reported a decline in revenues and profits for Q3 2025, reflecting ongoing economic uncertainty and reduced truck volumes across all product lines [1][7][9] Financial Performance - Revenues for Q3 2025 were $979.1 million, down 4% year-over-year from $1,016.1 million in Q3 2024, but up 2% sequentially from $956.6 million in Q2 2025 [2][7] - Operating profit fell to $2.3 million, a 93% decrease from $33.1 million in Q3 2024, while net income was a loss of $2.3 million compared to a profit of $17.2 million in the same quarter last year [2][7] - Diluted earnings per share were $(0.13), down from $0.97 in Q3 2024, reflecting a 113% decline [2][7] Lift Truck Business Results - Lift Truck revenues were $929.3 million, a 4% decline year-over-year, attributed to lower truck volumes due to economic uncertainty [3][4] - The Americas segment saw revenues of $732.7 million, down 5% from $771.5 million in Q3 2024, while EMEA revenues increased by 4% year-over-year [3][8] - Gross profit for the Lift Truck business was $134.3 million, down 21% from $169.9 million in Q3 2024 [5][7] Tariff Impact - Tariff costs were approximately $40 million in Q3 2025, contributing to the decline in operating profit [9] - The company is implementing price increases and cost reductions to mitigate the impact of tariffs on financial results [18][19] Cash Flow and Liquidity - Operating cash flow improved to $37 million, driven by increased inventory efficiency [17] - The company reduced debt slightly to $467.8 million compared to $468.5 million a year ago, maintaining a focus on liquidity management [14][15] Market Outlook - The company anticipates continued challenges due to tariffs and economic uncertainty, with proactive measures in place to improve financial results [18][19] - Despite a contraction in the lift truck market, there was an uptick in booking activity, with dollar value bookings improving to $380 million from $330 million in the prior quarter [21][24] Strategic Initiatives - The company is focused on operational improvement projects to streamline manufacturing and optimize operations, with expected benefits starting in 2026 [31] - Long-term objectives include transforming the lift truck business and expanding into new markets, with a commitment to innovation and customer engagement [38]

Core Viewpoint - Hyster-Yale, Inc. is set to release its Third Quarter 2025 financial results on November 4, 2025, followed by a webcast to discuss these results on November 5, 2025 [1][2]. Company Overview - Hyster-Yale, Inc. is headquartered in Cleveland, Ohio, and operates as a globally integrated company providing a full line of lift trucks and solutions tailored to meet specific materials handling needs [3]. - The company's vision focuses on transforming material movement from port to home, emphasizing understanding customer applications and delivering optimal solutions to enhance productivity at the lowest cost of ownership [3]. - Hyster-Yale Materials Handling, Inc., a wholly owned subsidiary, designs, engineers, manufactures, and sells a comprehensive range of lift trucks and aftermarket parts under various brand names, including Hyster®, Yale®, Maximal®, and Nuvera® [4]. Financial Communication - The financial results for the third quarter will be discussed in a live audio webcast available on the company's website, with an archive accessible two hours post-event [1][2].

Core Viewpoint - Hyster-Yale's stock performance has shown resilience, outperforming major indices, but upcoming earnings are expected to reflect significant declines in both earnings per share and revenue compared to the previous year [1][3][4]. Company Performance - Hyster-Yale's stock closed at $37.72, marking a +1.37% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.79% [1]. - Over the past month, Hyster-Yale shares have gained 3.05%, while the Industrial Products sector and the S&P 500 gained 2.29% and 1.27%, respectively [2]. Earnings Forecast - The upcoming earnings report is projected to show earnings of $0.03 per share, representing a year-over-year decline of 96.91%, with revenue expected to be $955.69 million, indicating a 5.95% decline compared to the same quarter last year [3]. - For the full year, analysts expect earnings of $0.75 per share and revenue of $3.77 billion, reflecting changes of -91.65% and -12.59% from the previous year [4]. Analyst Estimates - Recent changes to analyst estimates for Hyster-Yale are being monitored, as they often indicate shifts in near-term business trends, with positive revisions suggesting optimism about the business outlook [5]. - The Zacks Rank system, which incorporates estimate changes, currently ranks Hyster-Yale at 3 (Hold), with no changes in the consensus EPS estimate over the last 30 days [6][7]. Valuation Metrics - Hyster-Yale is currently trading at a Forward P/E ratio of 49.61, which is significantly higher than the industry average Forward P/E of 16.37 [8]. - The Manufacturing - Construction and Mining industry, part of the Industrial Products sector, has a Zacks Industry Rank of 201, placing it in the bottom 19% of over 250 industries [8][9].