Hyster-Yale(US:HY)2025-11-04 21:51Financial Performance - Q3 2025 consolidated revenues were $979.1 million, a 4% decline year-over-year but a 2% increase sequentially [4]. - Operating profit decreased to $2.3 million, down 93% year-over-year, while net loss was $2.3 million compared to a net income of $17.2 million in Q3 2024 [4]. - Revenues for Q3 2025 were $979.1 million, a decrease of 3.9% from $1,016.1 million in Q3 2024 [57]. - Gross profit for Q3 2025 was $155.9 million, down 19.2% from $192.9 million in Q3 2024 [57]. - Net income attributable to stockholders for Q3 2025 was a loss of $2.3 million, compared to a profit of $17.2 million in Q3 2024 [57]. - Basic earnings per share for Q3 2025 were $(0.13), compared to $0.98 in Q3 2024 [57]. - Total revenues for the nine months ended September 30, 2025, were $2,846.1 million, down 12.2% from $3,240.7 million in the same period of 2024 [57]. - Cash flow before financing activities for Q3 2025 was $22.9 million, a decrease from $58.1 million in Q3 2024 [62]. - Net cash provided by operating activities for Q3 2025 was $37.1 million, down from $70.1 million in Q3 2024 [62]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $136.0 million, compared to $64.5 million in the same period of 2024 [62]. Revenue and Backlog - Lift Truck revenues were $929.3 million, reflecting a 4% decline year-over-year due to lower truck volumes across all product lines [5]. - The backlog at the end of Q3 2025 was $1.35 billion, down from $1.65 billion at the end of Q2 2025, as shipments outpaced new bookings [29]. - The company anticipates further backlog degradation in the near term due to ongoing weaker demand and reduced truck bookings [30]. - Q3 2025 unit bookings increased to $380 million, a 3% rise from Q3 2024 and a 15% increase from Q2 2025 [32]. - Unit backlog value decreased to $1.35 billion, down 41% from Q3 2024 and down 18% from Q2 2025 [32]. Operating Expenses and Profitability - Operating cash flow improved to $37 million, attributed to increased inventory efficiency [6]. - Tariff costs amounted to approximately $40 million in Q3 2025, impacting overall profitability [11]. - Operating expenses in Q4 2025 are projected to remain consistent with year-to-date levels, resulting in a modest year-over-year decrease [36]. - Q4 2025 is expected to result in a moderate operating loss due to moderated production rates, with tariff costs projected to remain consistent with Q3 2025 [37]. - The company aims to maintain a 7% operating profit margin over the business cycle, although near-term results are expected to fall below this target due to ongoing market uncertainty [39]. - The company is focusing on generating strong operating cash flow despite projected lower net income in 2025 [41]. Strategic Initiatives - The company expects a favorable financial impact of $2 million to $3 million in Q4 2025 from potential reductions in Chinese tariff levels [21]. - The company remains focused on liquidity management and optimizing working capital levels amid ongoing economic uncertainty [19]. - The company is committed to disciplined capital allocation, including continued debt reduction and strategic investments for long-term growth [43]. - The company is expanding modular and scalable models to support customer applications and enhance competitive positioning across product ranges [33]. - The company expects operational improvement projects to incur an additional $3 million in Q4 2025 and between $12 million to $25 million in 2026, with anticipated annualized income benefits of $30 million to $40 million by 2027 [35]. Regional Performance - Q3 2025 adjusted operating profit for the Americas was $22.1 million, down from $41.1 million in Q3 2024, reflecting a decrease of 46.3% [65]. - EMEA region reported an adjusted operating loss of $16.9 million in Q3 2025, worsening from a loss of $9.6 million in Q3 2024 [65]. - JAPIC adjusted operating loss was $4.2 million in Q3 2025, compared to a loss of $3.1 million in Q3 2024 [65]. - Lift Truck segment showed an adjusted operating profit of $1.0 million in Q3 2025, significantly down from $28.4 million in Q3 2024 [65]. - Bolzoni's adjusted operating profit remained stable at $2.1 million in Q3 2025, unchanged from Q3 2024 [65]. - Total adjusted operating profit for the company was $3.3 million in Q3 2025, a decline from $34.3 million in Q3 2024, representing a decrease of 90.4% [65]. Restructuring and Operational Efficiency - The company reported restructuring and impairment charges of $1.0 million for Q3 2025, compared to $1.2 million in Q3 2024 [64]. - Restructuring and impairment charges included $1.0 million in Q3 2025, compared to $1.2 million in Q2 2025 [65]. - The company is undergoing a strategic realignment, impacting its manufacturing footprint and operational efficiency [65]. - The company continues to focus on improving its operational performance amid challenging market conditions [65].