Consolidated Financial Results - Hyster-Yale, Inc. reported Q2 2025 revenues of $956.6 million, a decrease of 18% compared to Q2 2024's $1,168.1 million, but an increase of 5% from Q1 2025's $910.4 million [2][54] - The company experienced an operating loss of $8.5 million in Q2 2025, a significant decline from an operating profit of $95.6 million in Q2 2024 and a decrease from a profit of $21.3 million in Q1 2025 [2][54] - Net income for Q2 2025 was a loss of $13.9 million, down 122% from a profit of $63.3 million in Q2 2024 and a decline from a profit of $8.6 million in Q1 2025 [2][54] Lift Truck Business Performance - Lift Truck revenues were $904.2 million in Q2 2025, down 19% year-over-year from $1,118.0 million in Q2 2024, but up 5% from $864.4 million in Q1 2025 [3][4] - The decline in year-over-year revenues was attributed to lower volumes across all product lines due to economic uncertainty affecting customer order patterns [4][25] - The Americas segment saw a 20% decrease in revenues to $707.5 million compared to Q2 2024, while EMEA revenues fell by 21% to $148.3 million [3][8] Gross and Operating Profit Analysis - Gross profit for Q2 2025 was $146.8 million, down 38% from $236.9 million in Q2 2024, and down 8% from $158.8 million in Q1 2025 [6][54] - The operating loss for the Lift Truck business was $10.9 million in Q2 2025, a decline of 112% from a profit of $91.6 million in Q2 2024 [6][54] - Adjusted operating profit for Q2 2025 was $4.8 million, a decrease of 95% from $91.6 million in Q2 2024 [6][54] Liquidity and Capital Structure - The company renewed a $300 million revolving credit facility in Q2 2025, improving covenant flexibility and extending the maturity date to June 2030 [7][16] - As of June 30, 2025, total debt was $473.2 million, down from $501.9 million a year earlier, with cash holdings of $66.9 million [15][56] - The net debt position improved year-over-year to $406.3 million, reflecting effective cash generation and debt reduction strategies [15][17] Market Outlook and Strategic Initiatives - The company anticipates continued challenges in the lift truck market due to economic uncertainty and tariff impacts, with a focus on maintaining operational efficiency and cost discipline [20][36] - Management is implementing price adjustments to mitigate tariff-related costs, with expectations for product margins to remain above targeted levels despite competitive pressures [31][30] - The company is committed to long-term growth through strategic initiatives in product development and operational optimization, aiming for significant annualized income benefits starting in 2027 [32][44]

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]

Financial Data and Key Metrics Changes - In 2024, the company reported revenues of $4.3 billion, a 5% improvement over the prior year, significantly outpacing global GDP growth [23] - Adjusted operating profit for 2024 was $267 million, an increase of nearly $60 million from the previous year, with an adjusted operating profit margin of 6%, the strongest in the company's history [24] - Fourth quarter revenues reached $1.1 billion, growing by 4% year-over-year and by 5% sequentially, while adjusted operating profits were $54 million, increasing by 10% year-over-year [26] Business Line Data and Key Metrics Changes - The lift truck business saw a 4% increase in sales year-over-year, driven by a favorable sales mix, particularly in the Americas [26] - Adjusted operating profit for the lift truck business in Q4 was $62 million, a 15% increase compared to the prior year and a 55% increase sequentially [27] - Bolzoni reported Q4 revenue of $84 million, which was $4 million lower than the prior year, with an adjusted breakeven operating loss [29] Market Data and Key Metrics Changes - The global lift truck bookings market continued to decline in Q4 compared to the prior year, influenced by lower demand and order cancellations [10] - The company adjusted its production cadence to align better with market demand, resulting in a backlog that reached near normal levels by year-end [11] - Early 2025 bookings showed encouraging signs, particularly in the EMEA and JEPIC regions, indicating potential market improvement [12] Company Strategy and Development Direction - The company is focused on footprint optimization programs to streamline manufacturing and reduce costs, with expected annual savings of $30 million to $40 million starting in 2027 [8][9] - New product introductions, including modular and scalable models, are aimed at enhancing efficiency and meeting customer demand while reducing operational costs [16][18] - The company plans to leverage advancements in electric truck technology to expand its market share in areas traditionally dominated by combustion trucks [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing uncertainty due to potential tariffs and trade wars, which could impact market outlook [13] - Despite a competitive market and expected margin declines in 2025, management remains optimistic about gradual market improvement and increased production rates as demand recovers [12][35] - The company anticipates a significant year-over-year revenue decrease in 2025 due to lower lift truck production levels and increased operating expenses [35] Other Important Information - The company generated $81 million in cash from operations in Q4, contributing to a total of $170 million for the full year [33] - Total inventory decreased by $60 million from prior year levels, reflecting better alignment between production needs and on-hand materials [34] - The effective income tax rate for 2024 was 34%, higher than the previous year's rate of 29%, primarily due to the capitalization of R&D costs [31][32] Q&A Session Summary Question: Market outlook for 2025 - Management expects the first half of 2025 to be lower, with an anticipated increase in the second half as prior orders are consumed [51][52] - There was a noted increase in cancellations towards the end of 2024, but recent months have shown a return to normal cancellation levels [52]