Financial Data and Key Metrics Changes - In Q2 2025, Lift Truck revenues declined by 19% year over year, primarily due to lower volumes across all product lines and weaker industry booking rates since early 2024 [19][20] - Adjusted Q2 operating profit was $5 million, significantly down from the prior year, impacted by lower volumes and increased material and freight costs due to tariffs [21][22] - The company reported a net debt position improvement year over year, with a steady liquidity position and increased unused borrowing capacity by 3% to nearly $260 million at the end of Q2 [27][28] Business Line Data and Key Metrics Changes - Lift Truck bookings in Q2 decreased to $330 million from $590 million in Q1 2025, with a notable decline in Europe and The Americas, while Asia Pacific bookings remained steady [13][14] - Bolzoni's revenue declined year over year due to the phase-out of lower-margin legacy products, but Q2 revenue grew sequentially due to higher volumes in attachments and forks sales in The Americas [23][24] Market Data and Key Metrics Changes - The global lift truck bookings market contracted in Q2, reflecting broader capital goods sector trends, with customers deferring capital expenditures due to economic uncertainty [11][12] - The order backlog at the end of Q2 was $1.7 billion, down from $1.9 billion in the previous quarter, primarily due to shipments outpacing new bookings [14][15] Company Strategy and Development Direction - The company is focusing on manufacturing and selling products within the same region to lower shipping costs and speed delivery, while also seeking new cost-effective supply partners [8][9] - Strategic initiatives include optimizing the manufacturing footprint and realigning the Nuvera business to adapt to changing economic conditions [10] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty and fluctuating tariff levels continue to impact business, but they are taking proactive measures to protect financial health and maintain dealer relationships [5][6] - The company expects to increase production rates in the second half of 2025, contingent on demand stabilization, while remaining cautious due to ongoing economic uncertainty [17][18] Other Important Information - The company plans to invest between $50 million and $60 million in capital expenditures for 2025, focusing on advanced products and manufacturing efficiency initiatives [44] - Recent tax legislation is expected to lower tax expenses and cash outflows, positively impacting financial results in the second half of 2025 [43] Q&A Session Summary Question: Expectations for seasonal trends in North America and EMEA - Management expects more stable decision-making in the Americas as tariff rules stabilize, while EMEA is anticipated to follow typical seasonal trends with a weaker third quarter [51][57] Question: Changes in views on tariffs and their impact - Management has adjusted to the tariff environment, expecting a mix of pre- and post-tariff pricing in the backlog, with ongoing adjustments based on tariff changes [58][62] Question: Competitive landscape following Toyota's privatization - Management does not expect immediate market dynamics to change but acknowledges the potential for increased flexibility among competitors [66] Question: Concerns about investing in technology amidst profitability challenges - Management remains committed to investing in technology and efficiency, with capital expenditures exceeding depreciation and amortization [70] Question: Mix and profitability within the backlog - Management maintains pricing discipline and expects to improve the margin profile of the backlog, despite challenges from tariffs [75][78] Question: Impact of sourcing components from China and India - Management is working to transition sourcing to mitigate tariff impacts, particularly for highly engineered components [80][82] Question: Bolzoni's legacy products and market share outlook - Management anticipates the phase-out of legacy products by 2027 and has made progress in gaining market share despite a smaller market size [88][93] Question: Competitive behavior in the current market - Management notes that while some pricing actions are observed, traditional competitors are generally maintaining discipline in production and pricing [95][97]