Hyster-Yale(HY) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for Hyster-Yale, Inc Item 1. Financial Statements 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 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] - 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] - Total stockholders' equity increased by $69.6 million, largely due to a significant reduction in accumulated other comprehensive loss[8] Unaudited Condensed Consolidated Statements of Operations 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] - 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] - 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] Unaudited Condensed Consolidated Statements of Comprehensive Income 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] Unaudited Condensed Consolidated Statements of Cash Flows 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][109] - 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][110] - 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][111] Unaudited Condensed Consolidated Statements of Changes in Temporary and Permanent Equity 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] - 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] Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed notes explaining the basis of presentation, accounting policies, and other financial disclosures Note 1—Basis of Presentation 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] - In May 2025, Bolzoni acquired 100% of an Italian manufacturing business for $2.6 million, with results included in the Bolzoni segment[18] - Nuvera Fuel Cells, LLC was merged into HYMH's Americas segment in Q2 2025, leading to revised operating segments[19] Note 2—Recently Issued Accounting Standards 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] - ASU 2023-09 (Income Tax Disclosures) will be applied for annual periods after December 15, 2024[24] - ASU 2024-03 (Disaggregation of Income Statement Expenses) is being evaluated for its effect on disclosures for annual periods after December 15, 2026[24] Note 3—Revenue 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][26] - Variable consideration, including discounts and volume rebates, is estimated and reduces recognized revenue[27] 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][35] Note 4—Business Segments 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] - Nuvera was merged into the Americas operating segment in Q2 2025, and prior period amounts have been recast[39] 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 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] - 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] - 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][45] Note 6—Reclassifications from OCI 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] Note 7—Current and Long-Term Financing 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] - The facility can be increased to $400.0 million and is secured by working capital assets and capital stock[48][49] - 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] Note 8—Financial Instruments and Derivative Financial Instruments 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] - 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][60] - 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][62] - 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][62] Note 9—Retirement Benefit Plans 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] - 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] 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 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] - 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] - Impairment charges of $4.6 million related to inventory were recorded in Q2 2025 due to the Nuvera business realignment[70] Note 11—Product Warranties 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][72] 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] Note 12—Contingencies 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] - Management believes the likelihood of incurring costs materially in excess of recognized accruals for these claims is remote[75] Note 13—Guarantees 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] - Approximately $134.0 million of these obligations at June 30, 2025, related to transactions with HYGFS, a 20%-owned joint venture[78] - 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] Note 14—Equity and Debt Investments 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] 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] - 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] Note 15—Restructuring and Impairment Charges 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] - 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] - An additional $0.5 million (Q2) and $0.7 million (six months) were recognized for 2024 programs to streamline manufacturing and optimize operations[85] - The accrual for cash severance charges was $9.4 million at June 30, 2025[86] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial performance, liquidity, and capital resources for Q2 and H1 2025, including segment results and outlook CRITICAL ACCOUNTING POLICIES AND ESTIMATES 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] FINANCIAL REVIEW 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 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] 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] - 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] First Six Months of 2025 Compared with First Six Months of 2024 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] 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] - 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] LIQUIDITY AND CAPITAL RESOURCES This section analyzes the company's liquidity, cash flow, financing activities, and capital structure Cash Flows 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] - 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] Financing Activities 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] - 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][115] - The Company also has a $225.0 million Term Loan maturing in May 2028, with $216.0 million outstanding at June 30, 2025[116][119] - The Company was in compliance with all covenants for both the Facility and Term Loan at June 30, 2025[114][118] Contractual Obligations, Contingent Liabilities and Commitments 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] Capital Expenditures 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][145] Capital Structure 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] OUTLOOK This section provides the company's forward-looking perspective on strategic initiatives, market conditions, and financial projections Consolidated Strategic Perspective 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][126] - Tariffs are expected to negatively affect financial results in H2 2025, despite proactive initiatives like price increases and cost optimization[125] Lift Truck Business 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][130] - 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] - 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] - 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][135] - 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] - 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] 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] - 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] 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] - 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] - 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][144] - Capital expenditures for 2025 are now forecasted to range between $50 million and $60 million[145] Long-Term Objectives 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] - 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] EFFECTS OF FOREIGN CURRENCY 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] FORWARD-LOOKING STATEMENTS 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] Item 3. Quantitative and Qualitative Disclosures About Market Risk 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] Item 4. Controls and Procedures 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] - No material changes in internal control over financial reporting occurred during Q2 2025[152] PART II. OTHER INFORMATION This section provides additional information, including legal proceedings, risk factors, equity sales, and exhibits Item 1. Legal Proceedings This section confirms no legal proceedings to report - No legal proceedings to report[154] Item 1A. Risk Factors 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] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 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] - 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] Item 3. Defaults Upon Senior Securities This section confirms no defaults upon senior securities - No defaults upon senior securities[156] Item 4. Mine Safety Disclosures This section states that mine safety disclosures are not applicable to the company - Mine Safety Disclosures are not applicable[156] Item 5. Other Information 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] Item 6. Exhibits 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] 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]