Hyster-Yale(US:HY)2025-11-04 21:52Revenue Performance - Revenues for the third quarter of 2025 decreased by 3.6% to $979.1 million compared to $1,016.1 million in the third quarter of 2024, primarily due to a decline in unit volume in the Americas [99]. - The Americas segment reported revenues of $732.7 million, down 5.0% from $771.5 million in the same period last year [96]. - The EMEA segment saw a revenue increase of 3.5% to $150.1 million, compared to $145.0 million in the third quarter of 2024 [96]. - Bolzoni's revenues decreased by 10.9% to $87.0 million in the third quarter of 2025, compared to $97.6 million in the same period last year [96]. - Bolzoni's revenues decreased by 12.2% to $2,846.1 million in the first nine months of 2025 from $3,240.7 million in the same period of 2024, primarily due to a decline in unit volume [106]. Profitability and Income - Net income attributable to stockholders for the third quarter of 2025 was a loss of $2.3 million, a significant decline from a profit of $17.2 million in the same quarter of 2024 [97]. - The diluted earnings per share for the third quarter of 2025 was a loss of $0.13, compared to earnings of $0.97 in the third quarter of 2024 [97]. - The company reported an operating profit of $2.3 million in Q3 2025, down from $33.1 million in Q3 2024, largely due to tariff costs of approximately $40 million and lower unit volumes [101]. - Operating profit in the Americas decreased to $21.1 million in Q3 2025 from $40.9 million in Q3 2024, attributed to lower gross profit and overhead absorption rates [102]. - EMEA experienced an operating loss of $16.9 million in Q3 2025, compared to a loss of $9.6 million in Q3 2024, driven by unfavorable pricing and increased material costs [103]. - The net loss attributable to stockholders was $2.3 million in Q3 2025, a significant decline from net income of $17.2 million in Q3 2024 [105]. - For the first nine months of 2025, the operating profit decreased from $212.5 million in 2024 to $15.1 million, primarily due to lower gross profit and approximately $60 million in tariff costs [107]. - JAPIC's operating loss increased to $19.1 million in the first nine months of 2025 from $15.3 million in the same period of 2024, mainly due to lower gross profit and higher material costs [110]. Cash Flow and Financing - Net cash provided by operating activities decreased by $60.4 million in the first nine months of 2025 compared to the same period in 2024, primarily due to changes in net income and increased employee-related payments [113]. - The company entered into a $300.0 million secured revolving credit facility in Q2 2025, which can be increased to $400.0 million, maturing on June 24, 2030 [116]. - As of September 30, 2025, the book value of assets held as collateral under the revolving credit facility was approximately $1.1 billion [117]. - The Company has a U.S. borrowing capacity of $210.0 million and a non-U.S. borrowing capacity of $90.0 million, with total availability of $225.1 million as of September 30, 2025 [119]. - The Term Loan outstanding amount is $215.0 million, with a net amount outstanding of $212.7 million after discounts and fees, and an applicable interest rate of 7.78% [123]. Backlog and Bookings - The backlog of lift truck orders as of September 30, 2025, was approximately $1.35 billion, down from $2.3 billion in the previous year [98]. - The Company’s backlog at the end of Q3 2025 was $1.35 billion, down from $1.65 billion at the end of Q2 2025, indicating a reduction in new bookings [138]. - Dollar value bookings improved to $380 million in Q3 2025, up from $330 million in the prior quarter, driven by gains in the EMEA and JAPIC regions [133]. Strategic Initiatives and Future Outlook - The company completed a strategic realignment of Nuvera Fuel Cells, merging it into HYMH to enhance integrated energy solutions in the Americas segment [94]. - Planned capital expenditures for 2025 are expected to range between $50 million and $60 million, with $38.9 million spent in the first nine months of 2025 [126][150]. - The Company anticipates a moderate operating loss in Q4 2025, primarily due to moderated production rates and consistent tariff costs with Q3 2025 levels [145]. - Operational improvement projects initiated in 2024 are expected to generate annualized income and cash benefits ranging between $30 million to $40 million by 2027 [143]. - The Company is committed to disciplined capital allocation, including continued debt reduction and strategic investments for long-term growth [151]. Risks and Challenges - The Company operates internationally and is subject to variability from foreign currency exchange rate movements, impacting revenues, operating profit, and net income [153]. - The Company faces risks from supply chain disruptions, including delays in delivery and increased costs due to inflation, affecting liquidity [155]. - There is a potential reduction in global demand for lift trucks and related aftermarket parts, which may impact overall sales [155]. - The Company is exposed to geopolitical risks, including changes in U.S. trade policy and tariffs, which could affect operations and costs [155]. - The effectiveness of global cost reduction programs and successful implementation of procurement initiatives are critical for maintaining profitability [155]. - The Company is focused on the successful commercialization of products related to the energy solutions program, which is a key growth area [155]. - Political and economic uncertainties in operating countries may impact business operations and strategic decisions [155]. - The Company must navigate challenges related to workforce management, including attracting and retaining employees [155]. - Exchange rate fluctuations and interest rate volatility are ongoing concerns that could affect financial performance [155]. - The Company is committed to protecting its information technology infrastructure against potential cyber threats and service interruptions [155].