Core Insights - Hyster-Yale reported quarterly earnings of $1.47 per share, exceeding the Zacks Consensus Estimate of $1.38 per share, and showing an increase from $1.43 per share a year ago, resulting in an earnings surprise of 6.52% [1] - The company achieved revenues of $1.07 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.43% and up from $1.03 billion year-over-year [2] - Hyster-Yale has outperformed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] Future Outlook - The sustainability of Hyster-Yale's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.66 on revenues of $1.02 billion, and for the current fiscal year, it is $5.39 on revenues of $4.07 billion [7] - The Zacks Rank for Hyster-Yale is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Manufacturing - Construction and Mining industry, to which Hyster-Yale belongs, is currently in the top 33% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Hyster-Yale's stock performance [5]

Financial Performance - Full year revenues for 2024 reached $4.3 billion, a 5% increase from $4.1 billion in 2023[4] - Adjusted operating profit for the full year 2024 was $267 million, reflecting a 28% increase compared to the prior year[5] - Q4 2024 revenues were $1.1 billion, with a year-over-year growth of 4%[8] - Revenues for the three months ended December 31, 2024, increased to $1,067.5 million, up from $1,027.2 million in the same period of 2023, representing a growth of 3.7%[50] - Gross profit for the twelve months ended December 31, 2024, was $895.5 million, compared to $785.6 million in 2023, reflecting an increase of 14.0%[50] - Net income attributable to stockholders for the twelve months ended December 31, 2024, was $142.3 million, up from $125.9 million in 2023, an increase of 13.0%[50] - Basic earnings per share for the twelve months ended December 31, 2024, rose to $8.16, compared to $7.35 in 2023, a growth of 11.0%[50] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $320.2 million, reflecting a strong operational performance[57] Cash Flow and Debt Management - Operating cash flow for FY 2024 was $171 million, with $81 million generated in Q4 2024[5] - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $170.7 million, an increase from $150.7 million in 2023[55] - The debt decreased by 6% to $440.7 million from $468.5 million in Q3 2024[21] - Total debt as of December 31, 2024, decreased to $440.7 million from $465.8 million in the previous quarter[55] Market and Business Outlook - The Company anticipates a slight improvement in the global lift truck market in 2025, primarily in EMEA and JAPIC regions, leading to higher year-over-year bookings[25] - The Company expects a significant year-over-year revenue decrease in 2025 due to lower production levels, with operating profit anticipated to be significantly lower than the exceptionally strong 2024 performance[31][35] - New modular, scalable counterbalanced trucks are expected to launch in the first half of 2025, including electric models of 1- to 3.5-ton trucks later in the year[28] - Nuvera expects full-year revenues in 2025 to increase over the prior year, largely driven by its new HydroCharge product[33] Operational Performance - The Lift Truck business saw a revenue increase of 11% in FY 2024 and 13% in Q4 2024 in the Americas[5] - Americas segment reported an adjusted operating profit of $78.6 million in Q4 2024, up from $55.0 million in Q4 2023, representing a 43.5% increase[63] - Lift Truck segment achieved an adjusted operating profit of $62.1 million in Q4 2024, an increase from $54.2 million in Q4 2023, marking a 14.4% growth[63] - EMEA segment experienced an adjusted operating loss of $9.4 million in Q4 2024, compared to an adjusted profit of $6.0 million in Q4 2023, indicating a significant decline[63] - JAPIC segment's adjusted operating loss was $7.1 million in Q4 2024, worsening from a loss of $6.8 million in Q4 2023[63] Restructuring and Strategic Initiatives - The company is focusing on manufacturing footprint improvement and operational optimization as part of its restructuring strategy[63] - The company expects additional implementation costs of $8 million to $16 million for manufacturing footprint improvements in 2025 and 2026[24] - Anticipated annual income and cash benefits from manufacturing improvements are projected to be between $30 million and $40 million starting in 2027[24] - The Company plans capital expenditures between $40 million and $80 million in 2025, influenced by economic and geopolitical uncertainties[36] Challenges and Risks - In Q4 2024, the Company's lift truck bookings decreased by 17% year-over-year to $400 million, while backlog dropped by 42% to $1.93 billion[26][29] - The Company aims to maintain bookings with margins at or above targeted levels, despite expected margin declines in 2025 due to increased competitive dynamics[30] - The company incurred restructuring and impairment charges of $21.4 million in Q4 2024, compared to $1.2 million in Q3 2024[63]

Core Insights - Hyster-Yale, Inc. reported a consolidated revenue of $4.3 billion for the full year 2024, representing a 5% increase compared to 2023, driven by improved pricing discipline in the Lift Truck business [2][5][6] - The company experienced a decline in Q4 2024 net income to $10.3 million, down 59% from $25.2 million in Q4 2023, primarily due to increased operational costs and restructuring charges [4][5][11] - Adjusted operating profit for the full year 2024 was $267 million, a 28% increase from the previous year, indicating strong operational performance despite challenges [2][6][11] Financial Performance - Full year revenues reached $4,308.2 million in 2024, up from $4,118.3 million in 2023, with a 5% year-over-year growth [2][5] - Q4 2024 revenues were $1,067.5 million, a 4% increase from $1,027.2 million in Q4 2023 [4][48] - Operating profit for the full year was $244.8 million, with an adjusted operating profit of $267.4 million, reflecting a strong performance in the Lift Truck segment [2][5][6] Segment Performance - The Lift Truck business generated $1,021.6 million in Q4 2024 revenues, a 4% increase from $981.5 million in Q4 2023, with significant growth in the Americas segment [8][9] - The Americas segment saw a 13% revenue increase in Q4 2024 compared to the previous year, while EMEA revenues declined by 21% due to lower product demand [8][12] - Adjusted operating profit for the Lift Truck business improved by 15% in Q4 2024 compared to the prior year, driven by favorable product mix and pricing [10][11] Operational Efficiency - The company initiated restructuring efforts in Q4 2024, incurring $21 million in charges aimed at optimizing its manufacturing footprint and improving operational efficiency [6][23] - Cash generated from operations for FY 2024 was $171 million, with $81 million generated in Q4 2024, indicating strong cash flow management [5][20] - Inventory levels decreased by $61 million year-over-year, reflecting improved production alignment and efficiency [25] Strategic Outlook - Hyster-Yale anticipates a slight improvement in the global lift truck market in 2025, particularly in EMEA and JAPIC regions, following a moderate decline in 2024 [24][30] - The company plans to maintain its focus on cash generation and capital allocation, with projected capital expenditures between $40 million and $80 million for 2025 [36][37] - Long-term objectives include achieving 7% operating profit margins across business cycles, with expectations for significant income and cash benefits from ongoing operational improvements starting in 2027 [22][37]

Revenue Performance - Revenues for the Americas segment increased by 11.1% to $3,222.5 million in 2024 from $2,899.3 million in 2023[144] - EMEA segment revenues decreased by 13.8% to $707.6 million in 2024 from $820.5 million in 2023[144] - The lift truck business overall reported a revenue increase of 4.9% to $4,113.8 million in 2024 from $3,920.9 million in 2023[144] - For the year ended December 31, 2024, the company reported revenues of $4,308.2 million, a 5% increase from $4,118.3 million in 2023, primarily driven by higher lift truck revenues and improved pricing[147] - The company's bookings for the year ended December 31, 2024, were approximately $1,670 million, compared to $1,270 million in 2023, indicating a significant increase[146] - The backlog for the company as of December 31, 2024, was approximately $1,930 million, down from $2,300 million in 2023[146] Profitability - Gross profit for the Americas segment rose by 23.0% to $695.0 million in 2024 compared to $564.9 million in 2023[144] - Operating profit for 2024 was $244.8 million, representing a 17.3% increase from $208.7 million in 2023, attributed to improved gross profit from higher pricing and reduced customer incentives[149] - Net income attributable to stockholders increased to $142.3 million in 2024 from $125.9 million in 2023, reflecting a $16.4 million increase[156] - The diluted earnings per share rose to $8.04 in 2024, up from $7.24 in 2023, marking an 11.0% increase[156] - Operating profit in the Americas increased by $85.0 million, or 36.5%, primarily due to improved gross profit from higher pricing[151] - EMEA reported an operating loss of $11.4 million in 2024, a decline from an operating profit of $12.1 million in 2023, due to manufacturing inefficiencies[152] Expenses and Charges - Selling, general and administrative expenses increased by 8.9% to $628.1 million in 2024 from $576.9 million in 2023[144] - The company incurred restructuring and impairment charges totaling $22.6 million in 2024, with no charges reported in 2023[144] - The company recognized restructuring and impairment charges of $17.8 million in 2024, primarily for streamlining manufacturing operations[150] Cash Flow and Debt - Cash provided by operating activities increased by $20.0 million to $170.7 million in 2024, driven by higher net income and favorable changes in assets and liabilities[157] - As of December 31, 2024, the Company had a total borrowing capacity of $300 million, with $210 million in U.S. borrowing capacity and $90 million in non-U.S. borrowing capacity[164] - The Company reported outstanding debt of approximately $217.1 million under the Term Loan, with a net amount outstanding of $214.6 million after discounts and unamortized deferred financing fees[168] - The Company had excess availability of $242.7 million under the Facility and an additional $47.8 million related to other non-U.S. revolving credit agreements[169] - The Company's total contractual cash obligations as of December 31, 2024, amounted to $1.41 billion, with significant obligations due in 2025[171] Future Outlook - The Company anticipates a slight improvement in the global lift truck market in 2025, primarily in EMEA and JAPIC regions[180] - Lift Truck expects a significant year-over-year revenue decrease in 2025 due to lower production levels, with operating profit anticipated to be significantly lower than the exceptionally strong 2024 performance[185] - The Company expects to generate significant income and cash benefits from its manufacturing improvement programs starting in 2027, estimated between $30 million to $40 million annually[179] - Planned capital expenditures for 2025 range from $40 million to $80 million, primarily for manufacturing improvements and product development[175] - Capital expenditures for 2025 are projected to range between $40 million and $80 million, influenced by economic and geopolitical uncertainties[190] - The Company is focused on cash generation and improving working capital efficiency, expecting cash flow from operations in 2025 to remain strong and comparable to 2024 levels[190] Strategic Initiatives - The Company aims to achieve 7% operating profit margins across business cycles, but expects 2025 revenues, production levels, and profits to decline significantly compared to robust 2024 results[189] - The Company plans to phase out Bolzoni's lower-margin legacy component manufacturing to create space for profitable attachment growth[184] - Lift Truck intends to remain agile with its pricing strategy in response to potential tariff changes, aiming to keep margins above target levels in 2025[184] - The Company believes that ongoing strategic initiatives will contribute to long-term revenue and operating profit growth rates above the material handling market's expected growth rates[191] Product Development - Nuvera's revenues significantly declined by 67.4% to $1.4 million in 2024 from $4.3 million in 2023[144] - Nuvera anticipates full-year revenues to increase in 2025 largely due to the HydroCharge™ product, which began customer demonstrations in September 2024[187][188] - Nuvera's development of a more powerful 125kW fuel cell engine is expected to incur modest increases in product development costs year-over-year[188] - Bolzoni's product margins are expected to improve modestly year-over-year, despite decreased revenues, due to the planned phase-out of lower-margin legacy component sales[186]

Company Overview - Hyster-Yale's stock closed at $53.44, reflecting a -1.67% change from the previous session, underperforming the S&P 500's daily loss of 0.43% [1] - Over the past month, Hyster-Yale shares gained 1.72%, outperforming the Industrial Products sector's loss of 1.98% but lagging behind the S&P 500's gain of 2.6% [1] Upcoming Earnings - The upcoming earnings release is scheduled for February 25, 2025, with an expected EPS of $1.38, indicating a 3.5% decline compared to the same quarter last year [2] - Revenue is anticipated to be $1.02 billion, reflecting a 0.48% decrease from the same quarter last year [2] Analyst Estimates - Recent changes to analyst estimates indicate a dynamic nature of near-term business trends, with positive revisions suggesting optimism about the company's profitability [3] - The Zacks Rank system, which incorporates estimate changes, provides an actionable rating system for investors [4] Valuation Metrics - Hyster-Yale currently holds a Zacks Rank of 3 (Hold), with a Forward P/E ratio of 10.08, indicating a discount compared to the industry's Forward P/E of 12.27 [5] Industry Context - The Manufacturing - Construction and Mining industry, part of the Industrial Products sector, ranks 177 in the Zacks Industry Rank, placing it in the bottom 30% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Company Overview - Hyster-Yale, Inc. is headquartered in Cleveland, Ohio, and is a globally integrated company that offers a full line of lift trucks and solutions, including attachments and hydrogen fuel cell power products [3][4] - The company's vision is to transform the way materials are moved from Port to Home, focusing on understanding customer applications and providing optimal solutions to improve productivity at the lowest cost of ownership [3] Financial Results Announcement - Hyster-Yale, Inc. will release its Fourth Quarter and Full Year 2024 financial results after the market closes on February 25, 2025 [1] - A webcast will be hosted on February 26, 2025, at 11:00 a.m. ET to discuss the financial results, with access available on the company's website [1][2] Subsidiaries and Product Offerings - The company's wholly owned subsidiary, Hyster-Yale Materials Handling, Inc., designs, engineers, manufactures, sells, and services a comprehensive line of lift trucks, attachments, and aftermarket parts, primarily under the Hyster® and Yale® brand names [4] - Hyster-Yale also includes subsidiaries such as Bolzoni S.p.A., a producer of attachments, and Nuvera Fuel Cells, LLC, which focuses on alternative-power technology [4]

Company Performance - Hyster-Yale's stock closed at $52.60, reflecting a +0.9% increase, outperforming the S&P 500's gain of 0.67% [1] - Over the past month, Hyster-Yale shares have appreciated by 4.66%, surpassing the Industrial Products sector's gain of 1.46% and the S&P 500's gain of 2.07% [1] Upcoming Earnings - Hyster-Yale is projected to report earnings of $1.38 per share, indicating a year-over-year decline of 3.5% [2] - The consensus estimate anticipates revenue of $1.02 billion, representing a 0.48% decrease from the same quarter last year [2] Analyst Estimates - Recent changes to analyst estimates for Hyster-Yale suggest a shifting landscape in near-term business trends, with positive revisions indicating analysts' confidence in the company's performance [3] - The Zacks Rank system, which incorporates estimate changes, provides actionable ratings based on these revisions [4] Valuation Metrics - Hyster-Yale's Forward P/E ratio is 9.67, indicating a discount compared to its industry's Forward P/E of 11.5 [6] - The Manufacturing - Construction and Mining industry, part of the Industrial Products sector, has a Zacks Industry Rank of 224, placing it in the bottom 11% of over 250 industries [6] Zacks Rank System - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with 1 stocks historically returning an average of +25% annually since 1988 [5] - Currently, Hyster-Yale holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate remaining stagnant over the past month [5]

Hyster-Yale Materials Handling, Inc (HY) Analysis Core View - The analyst is turning more constructive on Hyster-Yale Materials Handling, Inc (HY) due to the current risk/reward calculus, with the stock trading at approximately 5x pre-tax earnings [1] - The stock has been negatively impacted by a difficult comparison period in 2024 [1] Valuation and Market Position - The stock is currently trading at a low valuation of ~5x pre-tax earnings, indicating potential undervaluation [1] - The company has faced challenges in 2024, leading to a decline in stock performance [1] Analyst Position - The analyst holds a beneficial long position in HY through stock ownership, options, or other derivatives [2] - The analysis reflects the analyst's personal opinion and is not influenced by external compensation or business relationships [2]

The latest trading session saw Hyster-Yale (HY) ending at $50.22, denoting a +0.1% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.06%.Shares of the maker of lift trucks and aftermarket parts witnessed a loss of 9.11% over the previous month, trailing the performance of the Industrial Products sector with its loss of 8.56% and the S&P 500's loss of 2.8%.Investors w ...

Maker of Hyster and Yale industrial trucks plans to satisfy American manufacturing criteria for equipment used in federally funded infrastructure projectsGREENVILLE, N.C., Dec. 18, 2024 (GLOBE NEWSWIRE) -- Hyster-Yale Materials Handling, Inc. announces its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for key portions of its product lineup. The maker of Hyster® and Yale® brand forklift trucks and container handling equipment plans to expand its existin ...