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]

Core Insights - Hyster-Yale reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.47 per share, but down from $2.93 per share a year ago, indicating a significant decline in profitability [1] - The company posted revenues of $910.4 million for the quarter, missing the Zacks Consensus Estimate by 3.95% and down from $1.06 billion year-over-year [2] - Hyster-Yale shares have underperformed, losing about 21.9% since the beginning of the year compared to the S&P 500's decline of 3.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.63 on revenues of $975.96 million, and for the current fiscal year, it is $2.05 on revenues of $3.91 billion [7] - The estimate revisions trend for Hyster-Yale is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - Hyster-Yale operates within the Manufacturing - Construction and Mining industry, which is currently ranked in the top 8% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Financial Performance - Revenues for Q1 2025 were $910.4 million, a decrease of 13.8% compared to $1,056.5 million in Q1 2024[8] - Gross profit for Q1 2025 was $177.7 million, down 24.6% from $235.7 million in Q1 2024[8] - Net income attributable to stockholders for Q1 2025 was $8.6 million, a significant decline of 83.3% from $51.5 million in Q1 2024[8] - Basic earnings per share decreased to $0.49 in Q1 2025 from $2.97 in Q1 2024[8] - Operating profit for Q1 2025 was $21.3 million, down 74.6% from $83.8 million in Q1 2024[8] - Comprehensive income for Q1 2025 was $42.2 million, compared to $28.1 million in Q1 2024[9] - The net income for the three months ended March 31, 2025, was $8.5 million, compared to $51.7 million for the same period in 2024, indicating a significant decrease of approximately 83.6%[12] - The company reported a comprehensive loss of $28.4 million for the current period, compared to a comprehensive loss of $31.8 million in the previous period, showing an improvement of approximately 10.7%[12] Assets and Liabilities - Total assets increased to $2,055.3 million as of March 31, 2025, compared to $2,029.2 million at the end of 2024[7] - Total liabilities decreased slightly to $1,525.9 million from $1,535.1 million at the end of 2024[7] - As of March 31, 2025, total stockholders' equity was $514.3 million, an increase from $510.0 million at December 31, 2024, reflecting a growth of approximately 0.6%[12] - Cash and cash equivalents decreased to $77.2 million from $96.6 million at the end of 2024[11] Cash Flow and Dividends - The company reported a net cash used for operating activities of $36.4 million in Q1 2025, compared to a net cash provided of $22.4 million in Q1 2024[11] - Cash dividends declared during the first quarter of 2025 amounted to $6.2 million, up from $5.7 million in the first quarter of 2024, representing an increase of about 8.8%[12] - The company paid dividends of $0.3500 per share in Q1 2025, an increase from $0.3250 per share in Q1 2024[8] Segment Performance - Dealer sales for the three months ended March 31, 2025, were $415.6 million, down from $618.9 million in the same period of 2024, representing a decline of 32.8%[28] - The Americas segment reported revenues of $698.9 million for the three months ended March 31, 2025, compared to $769.7 million in 2024, a decrease of 9.2%[34] - The EMEA segment's revenues decreased to $118.2 million in Q1 2025 from $199.4 million in Q1 2024, a decline of 40.7%[34] - Nuvera reported no revenues for the three months ended March 31, 2025, compared to $0.5 million in the same period of 2024[34] Cost and Expenses - Stock-based compensation for the first quarter of 2025 was $3.5 million, compared to $9.2 million in the same quarter of 2024, reflecting a decrease of approximately 62%[12] - The lift truck business's cost of sales for the three months ended March 31, 2025, was $703.6 million, compared to $791.2 million in 2024, a reduction of 11.1%[34] - The reported income tax rate for Q1 2025 was 48.2%, significantly higher than 32.6% in Q1 2024, primarily due to additional valuation allowances[38] Strategic Initiatives - Nuvera Fuel Cells, LLC, a subsidiary focused on hydrogen fuel cell technology, underwent a strategic business realignment in April 2025, indicating a shift in operational focus[15] - The Company recognized restructuring charges of $0.2 million in Q1 2025, with additional charges expected to range from $8 million to $16 million in 2025 and 2026[68][69] - The Company expects to achieve direct annualized cost reductions of $15 to $20 million and indirect cost reductions of $10 to $15 million starting in the second half of 2025 through a strategic business realignment[71] Inventory and Manufacturing - Total manufactured inventories reached $873.6 million as of March 31, 2025, up from $857.1 million as of December 31, 2024[57] - The company’s total inventory, after accounting for the LIFO reserve, was $772.7 million as of March 31, 2025, compared to $754.3 million at the end of 2024[57] Foreign Currency and Derivatives - The company held forward foreign currency exchange contracts with total notional amounts of $0.8 billion as of March 31, 2025, unchanged from December 31, 2024[47] - The fair value of interest rate swap agreements was a net asset of $7.6 million at March 31, 2025, down from $9.9 million at December 31, 2024[50] - The company reported a pre-tax gain of $10.5 million from derivative instruments for the three months ended March 31, 2025, compared to a loss of $15.2 million for the same period in 2024[52] Pension and Warranty Obligations - The U.S. pension plan's net periodic pension expense was $0.4 million for the three months ended March 31, 2025, unchanged from the same period in 2024[56] - The company initiated a de-risking strategy for the U.K. pension plan, resulting in a shift towards fixed income and highly-liquid securities[54] - The company maintains a standard warranty on lift trucks generally for twelve months or 1,000 to 2,000 operating hours[58]

[Q1 2025 Financial Performance](index=1&type=section&id=Q1%202025%20Financial%20Performance) [Consolidated Highlights](index=1&type=section&id=Consolidated%20Highlights) Hyster-Yale reported a significant decline in Q1 2025 consolidated financial results, despite increased Lift Truck bookings and reduced inventory Q1 2025 Consolidated Financial Results | ($ in millions except per share amounts) | Q1 2025 | Q1 2024 | % Change | Q4 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $910.4 | $1,056.5 | (14)% | $1,067.5 | (15)% | | **Operating Profit** | $21.3 | $83.8 | (75)% | $32.3 | (34)% | | **Net Income** | $8.6 | $51.5 | (83)% | $10.3 | (17)% | | **Diluted Earnings per Share** | $0.48 | $2.93 | (84)% | $0.58 | (17)% | | **Adjusted Operating Profit** | $21.5 | $83.8 | (74)% | $53.7 | (60)% | | **Adjusted Net Income** | $8.7 | $51.5 | (83)% | $26.1 | (67)% | - Key operational achievements in Q1 2025 include a **significant increase in Lift Truck bookings** compared to both Q1 2024 and Q4 2024, and a **$69 million year-over-year decrease in inventory**[6](index=6&type=chunk) [Lift Truck Business Results](index=1&type=section&id=Lift%20Truck%20Business%20Results) The Lift Truck segment's revenue decreased 14% to $864.4 million, with operating profit falling 66% due to lower volumes and increased costs Lift Truck Revenues by Geographic Segment (in millions) | Segment | Q1 2025 | Q1 2024 | % Change | Q4 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $864.4 | $1,006.8 | (14)% | $1,021.6 | (15)% | | Americas | $698.9 | $769.7 | (9)% | $800.2 | (13)% | | EMEA | $118.2 | $199.4 | (41)% | $175.4 | (33)% | | JAPIC | $47.3 | $37.7 | 25% | $46.0 | 3% | Lift Truck Operating Profit by Geographic Segment (in millions) | Segment | Q1 2025 | Q1 2024 | % Change | Q4 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Operating Profit** | $30.2 | $89.3 | (66)% | $45.3 | (33)% | | Americas | $52.4 | $89.6 | (42)% | $71.8 | (27)% | | EMEA | $(14.9) | $5.2 | n.m. | $(11.8) | (26)% | | JAPIC | $(7.3) | $(5.5) | (33)% | $(14.7) | 50% | - The decline in Lift Truck revenue was primarily due to **reduced sales volumes in the Americas and EMEA**, consistent with lower market demand, while the JAPIC region showed **revenue growth** from increased volume and a mix shift towards Big Trucks[7](index=7&type=chunk)[9](index=9&type=chunk) - Operating profit fell significantly due to **reduced volumes**, lower manufacturing overhead absorption, and **headwinds from material and freight cost inflation**, with slight increases in operating costs from IT and customer support investments[10](index=10&type=chunk) [Bolzoni Results](index=3&type=section&id=Bolzoni%20Results) Bolzoni's Q1 2025 revenue decreased 17% to $80.3 million due to planned product phase-outs, with operating profit falling 82% despite improved gross margins Bolzoni Q1 2025 Financial Results (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | Q4 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $80.3 | $96.2 | (17)% | $82.9 | (3)% | | **Gross Profit** | $18.5 | $21.8 | (15)% | $17.9 | 3% | | **Operating Profit** | $0.6 | $3.3 | (82)% | $(4.4) | n.m. | - The revenue decline was a planned result of **phasing out lower-margin legacy products**; gross profit margins improved year-over-year due to better pricing and lower material costs, despite reduced volumes negatively impacting overall gross profit[12](index=12&type=chunk) [Nuvera Results](index=3&type=section&id=Nuvera%20Results) Nuvera reported no revenue in Q1 2025, with its operating loss widening to $9.9 million due to increased R&D expenses and reduced government funding Nuvera Q1 2025 Financial Results (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | Q4 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $— | $0.5 | (100)% | $0.4 | (100)% | | **Operating Loss** | $(9.9) | $(9.4) | (5)% | $(8.3) | (19)% | - Nuvera did not generate revenue in Q1 2025, focusing on developing its **HydroCharge mobile charging product** and a **125 kW fuel cell**, with the operating loss increasing due to higher R&D expenses and reduced U.S. Department of Defense funding[15](index=15&type=chunk) [Financial Position and Outlook](index=3&type=section&id=Financial%20Position%20and%20Outlook) [Income Tax, Liquidity and Capital Allocation](index=3&type=section&id=Income%20Tax%2C%20Liquidity%20and%20Capital%20Allocation) Q1 2025 income tax expense decreased to $8.1 million, while net debt increased to $406.8 million, and the company experienced a $36 million operating cash outflow - Income tax expense decreased to **$8.1 million** from $25.1 million in Q1 2024, primarily due to lower pre-tax earnings, with a higher effective tax rate than the prior year[16](index=16&type=chunk) Debt and Liquidity (in millions) | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Debt | $484.0 | $474.8 | | Cash | $77.2 | $62.2 | | **Net Debt** | **$406.8** | **$412.6** | | LTM Adjusted EBITDA | $258.8 | $300.5 | | **Net Debt / Adjusted EBITDA** | **1.6** | **1.4** | - The company experienced an **operating cash outflow of $36 million** in Q1 2025, a shift from a $22.4 million inflow in Q1 2024, primarily due to reduced net income and unfavorable working capital changes[19](index=19&type=chunk)[63](index=63&type=chunk) - Inventory levels decreased by **$69 million** compared to Q1 2024, reflecting better production alignment with material availability and a six-week firm production schedule[21](index=21&type=chunk) [Consolidated Strategic Perspective and Outlook](index=4&type=section&id=Consolidated%20Strategic%20Perspective%20and%20Outlook) The company announced a strategic realignment of its Nuvera fuel cell business, focusing on a 125KW fuel cell and integrating other activities into the Lift Truck business for energy solutions, expecting $15-$20 million in annualized cost reductions - A strategic realignment of the Nuvera fuel cell business was announced on April 30, 2025, creating an **integrated energy solutions program** within the Lift Truck business[21](index=21&type=chunk) - The new energy solutions program will focus on **lithium-ion batteries**, a **mobile, hybrid electric charging platform** (including HydroCharge), and a **downsized 125KW fuel cell program** for port equipment[22](index=22&type=chunk)[23](index=23&type=chunk) - The realignment is expected to generate **$15-$20 million in direct annualized cost reductions** starting in H2 2025, with **$15-$18 million in employee severance and impairment costs** anticipated in Q2 2025[23](index=23&type=chunk) - The full-year 2025 outlook assumes **no reinstatement of paused tariffs**, non-extension of Section 301 tariff exemptions beyond May 31, 2025, and **no significant economic recession**[26](index=26&type=chunk)[27](index=27&type=chunk) [Segment Outlook](index=6&type=section&id=Segment%20Outlook) Lift Truck bookings surged 48% sequentially to $590 million, though 2025 operating profit is expected to be below 2024, while Bolzoni's full-year revenue and profit are also projected to decline Lift Truck Bookings and Backlog (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | Q4 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Unit Bookings ($ Value)** | $590 | $520 | 13% | $400 | 48% | | **Unit Backlog ($ Value)** | $1,910 | $3,060 | (38)% | $1,930 | (1)% | - **Lift Truck Outlook:** Q1 2025 bookings increased substantially, driven by demand for higher-priced Class 4 and 5 products[30](index=30&type=chunk) - Full-year 2025 revenues are projected to slightly exceed annualized Q1 levels[32](index=32&type=chunk) - Q2 operating profit is expected to decline moderately from Q1 due to tariff impacts and pricing lag[37](index=37&type=chunk) - Full-year 2025 operating profit is expected to be below 2024's results[37](index=37&type=chunk) - **Bolzoni Outlook:** Q2 revenues are projected to modestly improve from Q1[38](index=38&type=chunk) - Full-year 2025 revenues and operating profit are anticipated to fall below 2024 levels due to weaker demand projections[39](index=39&type=chunk) - Manufacturing optimization projects are expected to incur **$8-$16 million in costs** in both 2025 and 2026, with **significant annual benefits of $30-$40 million** expected to begin in 2027[34](index=34&type=chunk) [Consolidated Outlook and Long-Term Objectives](index=7&type=section&id=Consolidated%20Outlook%20and%20Long-Term%20Objectives) Consolidated full-year 2025 revenues and profits are expected to be below 2024, with Q2 operating profit projected to decline, as the company targets a 7% operating profit margin and aims to transform material movement - Full-year 2025 consolidated revenues, production, and profits are expected to be **below 2024 results**, with Q2 2025 operating profit expected to decline moderately compared to Q1 2025[40](index=40&type=chunk) - The company targets a **7% operating profit margin** across the business cycle, aiming to exceed it during strong periods and remain profitable during downturns[41](index=41&type=chunk) - 2025 capital expenditures are forecasted to be between **$40 million and $65 million**, a reduction from initial expectations reflecting spending discipline amid global economic uncertainty[43](index=43&type=chunk) - The long-term vision is to transform how materials are moved from 'Port to Home' by executing strategic initiatives to grow the core business and expand into **warehouse solutions, automation, energy, and attachments**[45](index=45&type=chunk) [Financial Statements and Reconciliations](index=8&type=section&id=Financial%20Statements%20and%20Reconciliations) [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures like Adjusted Operating Profit, Net Income, and Diluted EPS, along with Adjusted EBITDA and Net Debt, to provide a clearer view of underlying business performance - The company uses non-GAAP measures like **Adjusted Operating Profit, Adjusted Net Income, and Adjusted Diluted EPS**, which exclude restructuring and impairment charges, to help assess period-over-period results[47](index=47&type=chunk)[48](index=48&type=chunk) - **Adjusted EBITDA** is defined as income before income taxes and noncontrolling interests, plus restructuring charges, net interest expense, and depreciation/amortization[49](index=49&type=chunk) - **Net Debt** is defined as debt less cash[50](index=50&type=chunk) [Financial Highlights - Consolidated Statements of Operations](index=11&type=section&id=Financial%20Highlights%20-%20Consolidated%20Statements%20of%20Operations) The consolidated statement of operations for Q1 2025 shows revenues of $910.4 million, operating profit of $21.3 million, and net income of $8.6 million, with diluted EPS of $0.48 Consolidated Statements of Operations (Three Months Ended March 31, in millions) | | 2025 | 2024 | | :--- | :--- | :--- | | **Revenues** | $910.4 | $1,056.5 | | Gross Profit | $177.7 | $235.7 | | **Operating Profit** | **$21.3** | **$83.8** | | Income before Income Taxes | $16.8 | $76.9 | | **Net Income Attributable to Stockholders** | **$8.6** | **$51.5** | | **Diluted Earnings per Share** | **$0.48** | **$2.93** | [Financial Highlights - Segment Information](index=12&type=section&id=Financial%20Highlights%20-%20Segment%20Information) Q1 2025 segment results show Lift Truck revenues of $864.4 million and $30.2 million operating profit, Bolzoni revenues of $80.3 million and $0.6 million operating profit, and Nuvera with no revenue and a $9.9 million operating loss Segment Results (Three Months Ended March 31, 2025, in millions) | Segment | Revenues | Gross Profit (Loss) | Operating Profit (Loss) | | :--- | :--- | :--- | :--- | | Americas | $698.9 | $144.5 | $52.4 | | EMEA | $118.2 | $12.9 | $(14.9) | | JAPIC | $47.3 | $3.4 | $(7.3) | | **Lift Truck Business** | **$864.4** | **$160.8** | **$30.2** | | **Bolzoni** | **$80.3** | **$18.5** | **$0.6** | | **Nuvera** | **$—** | **$(2.0)** | **$(9.9)** | [Cash Flow, Capital Structure and Working Capital](index=13&type=section&id=Cash%20Flow%2C%20Capital%20Structure%20and%20Working%20Capital) Q1 2025 saw a $36.4 million operating cash outflow, a reversal from Q1 2024, with net debt at $406.8 million and working capital at $804.7 million as of March 31, 2025 Cash Flow Summary (Three Months Ended March 31, in millions) | | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used for) operating activities | $(36.4) | $22.4 | | Net cash used for investing activities | $(10.3) | $(7.0) | | **Cash Flow Before Financing Activities** | **$(46.7)** | **$15.4** | Capital Structure and Working Capital (in millions) | As of March 31, 2025 | Amount | | :--- | :--- | | Debt | $484.0 | | Cash | $77.2 | | **Net Debt** | **$406.8** | | **Working Capital** | **$804.7** | [Reconciliation of Adjusted Results](index=14&type=section&id=Reconciliation%20of%20Adjusted%20Results) This section reconciles GAAP to non-GAAP measures for Q1 2025, showing Adjusted Operating Profit of $21.5 million, Adjusted Net Income of $8.7 million, and Adjusted Diluted EPS of $0.49 after restructuring charge adjustments Reconciliation of GAAP to Adjusted Results (Q1 2025, in millions) | Metric | As Reported (GAAP) | Adjustments | Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | **Operating Profit** | $21.3 | $0.2 | $21.5 | | **Net Income** | $8.6 | $0.1 | $8.7 | | **Diluted EPS** | $0.48 | $0.01 | $0.49 | Reconciliation of Adjusted Operating Profit by Segment (Q1 2025, in millions) | Segment | Operating Profit (Loss) | Adjustments | Adjusted Operating Profit (Loss) | | :--- | :--- | :--- | :--- | | Lift Truck | $30.2 | $0.2 | $30.4 | | Bolzoni | $0.6 | $— | $0.6 | | Nuvera | $(9.9) | $— | $(9.9) | | **Total** | **$21.3** | **$0.2** | **$21.5** |

Consolidated Financial Results - Hyster-Yale, Inc. reported consolidated revenues of $910.4 million for Q1 2025, a decrease of 14% compared to $1,056.5 million in Q1 2024 and a 15% decline from $1,067.5 million in Q4 2024 [3][7] - Operating profit fell to $21.3 million, down 75% from $83.8 million in Q1 2024 and down 34% from $32.3 million in Q4 2024 [3][7] - Net income decreased by 83% to $8.6 million compared to $51.5 million in Q1 2024 and down 17% from $10.3 million in Q4 2024 [3][7] - Diluted earnings per share dropped to $0.48, an 84% decline from $2.93 in Q1 2024 and a 17% decrease from $0.58 in Q4 2024 [3][7] Lift Truck Business Performance - Lift Truck revenues were $864.4 million, down 14% year-over-year from $1,006.8 million and down 15% sequentially from $1,021.6 million [4][5] - The Americas segment saw revenues of $698.9 million, a 9% decline from $769.7 million in Q1 2024, while EMEA revenues fell 41% to $118.2 million [4][5] - JAPIC revenues increased by 25% to $47.3 million compared to $37.7 million in Q1 2024 [4] Market Demand and Bookings - Q1 2025 Lift Truck bookings increased by 13% year-over-year to $590 million and 48% sequentially, driven by demand for higher-priced Class 4 and 5 products [30][31] - The backlog remained stable at $1.9 billion, with production rates expected to increase in Q2 2025 [32][31] - Market demand is anticipated to grow in the second half of 2025, contingent on tariff impacts [7][31] Strategic Initiatives and Outlook - The company announced a strategic realignment of its Nuvera fuel cell business to enhance profitability and integrate energy solutions with the Lift Truck business [21][23] - Cost reductions of $15 to $20 million are expected from this realignment starting in the second half of 2025 [23] - The company aims to maintain a strong net debt-to-adjusted EBITDA ratio while focusing on working capital efficiency and inventory management [18][20] Financial Position and Cash Flow - As of March 31, 2025, total debt was $484 million, with cash holdings of $77.2 million, resulting in net debt of $406.8 million [17][19] - The company experienced operating cash outflows of $36 million due to reduced net income and unfavorable working capital changes [19][42] - Working capital represented 22% of sales, reflecting a slight increase from year-end 2024 [21]

Core Viewpoint - Hyster-Yale, Inc. is implementing a strategic realignment of its Nuvera fuel cell business to enhance profitability and integrate energy solutions, expecting annualized cost reductions of $15 to $20 million starting in the second half of 2025 [1][2][3] Group 1: Strategic Business Realignment - The realignment aims to absorb Nuvera resources into open positions to accelerate the development of battery products and services, along with a mobile charging platform [1][2] - The company anticipates incurring employee severance and impairment costs of approximately $15 to $18 million in Q2 2025 due to this realignment [1] Group 2: Product Development and Synergies - The program will leverage Nuvera's technical skills to enhance the growth and profitability of battery and charger programs, including off-grid power solutions and electric power solutions for port equipment [2][3] - Significant technical and product synergies are expected between fuel cells, lithium-ion batteries, chargers, and the mobile charge platform, particularly in controls, packaging, cooling, and manufacturing [2] Group 3: Broader Strategic Change Program - This realignment is part of a larger strategic change program aimed at transforming Hyster-Yale's core forklift truck business while expanding into warehouse forklift trucks, automation, and energy management [3] - The company is focusing on creating modular, scalable products and optimizing its manufacturing footprint to support revenue growth and enhance operating profitability [3] Group 4: Future Product Launches - Initial sales of the HydroChargeTM product are expected to commence in the second half of 2025, with battery and fuel cell electric port equipment trucks already in customer testing [2] - The company is also developing a mobile, modular hybrid electric charging platform that will utilize both battery solutions and Nuvera's fuel cell technology [4]

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 First Quarter 2025 financial results after the market closes on May 6, 2025 [1] - A webcast will be hosted on May 7, 2025, at 11:00 a.m. ET to discuss the financial results, with access available on the company's website [1][2] Subsidiaries and Operations - 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., which produces attachments and lift tables, and Nuvera Fuel Cells, LLC, focused on fuel cell technology [4]

Company Performance - Hyster-Yale's stock closed at $37.69, reflecting a +0.69% change from the previous day, which underperformed compared to the S&P 500's gain of 1.81% [1] - Over the past month, Hyster-Yale shares have decreased by 13.97%, which is worse than the Industrial Products sector's decline of 11.25% and the S&P 500's decline of 6.14% [1] Upcoming Financial Results - The company is expected to report an EPS of $0.47, indicating an 83.96% decline compared to the same quarter last year [2] - Revenue is forecasted to be $947.8 million, representing a 10.29% decline from the corresponding quarter of the previous year [2] Full Year Projections - For the full year, earnings are projected at $2.05 per share, showing a decrease of 77.17% from the previous year [3] - Revenue for the full year is estimated at $3.91 billion, reflecting a decline of 9.19% compared to the prior year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for Hyster-Yale are important as they indicate changing business trends [4] - Upward revisions in estimates suggest analysts' positive outlook on the company's operations and profit generation capabilities [4] Zacks Rank and Valuation - Hyster-Yale currently holds a Zacks Rank of 5 (Strong Sell), with no changes in the Zacks Consensus EPS estimate over the past month [6] - The company is trading at a Forward P/E ratio of 18.3, which is a premium compared to the industry average Forward P/E of 14.69 [7] Industry Context - Hyster-Yale is part of the Manufacturing - Construction and Mining industry, which is ranked 32 in the Zacks Industry Rank, placing it in the top 13% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, indicating that higher-ranked industries tend to outperform lower-ranked ones [8]