Workflow
Hyster-Yale(HY) - 2025 Q1 - Quarterly Results
Hyster-YaleHyster-Yale(US:HY)2025-05-06 20:52

Q1 2025 Financial Performance Consolidated Highlights 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 inventory6 Lift Truck Business Results 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 Trucks79 - 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 investments10 Bolzoni Results 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 profit12 Nuvera Results 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 funding15 Financial Position and Outlook Income Tax, Liquidity and Capital Allocation 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 year16 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 changes1963 - Inventory levels decreased by $69 million compared to Q1 2024, reflecting better production alignment with material availability and a six-week firm production schedule21 Consolidated Strategic Perspective and Outlook 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 business21 - 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 equipment2223 - 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 202523 - 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 recession2627 Segment Outlook 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 products30 - Full-year 2025 revenues are projected to slightly exceed annualized Q1 levels32 - Q2 operating profit is expected to decline moderately from Q1 due to tariff impacts and pricing lag37 - Full-year 2025 operating profit is expected to be below 2024's results37 - Bolzoni Outlook: Q2 revenues are projected to modestly improve from Q138 - Full-year 2025 revenues and operating profit are anticipated to fall below 2024 levels due to weaker demand projections39 - 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 202734 Consolidated Outlook and Long-Term Objectives 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 202540 - The company targets a 7% operating profit margin across the business cycle, aiming to exceed it during strong periods and remain profitable during downturns41 - 2025 capital expenditures are forecasted to be between $40 million and $65 million, a reduction from initial expectations reflecting spending discipline amid global economic uncertainty43 - 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 attachments45 Financial Statements and Reconciliations Non-GAAP Financial Measures 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 results4748 - Adjusted EBITDA is defined as income before income taxes and noncontrolling interests, plus restructuring charges, net interest expense, and depreciation/amortization49 - Net Debt is defined as debt less cash50 Financial Highlights - Consolidated Statements of Operations 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 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 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 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 |