Q4 2025 INVESTOR PRESENTATION Safe Harbor Statement and Disclosure This presentation includes forward-looking comments subject to important risks and uncertainties. The statements contained in this news release that are not historical facts are "forward-looking statements." These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking ...

Core Insights - Hyster-Yale reported a decline in full-year 2025 revenue to $3.8 billion, with an operating loss of $22 million, primarily due to approximately $100 million in gross tariff costs [1][2] - The company anticipates moderate operating profit for 2026, driven by strong revenue growth from improved volumes in the second half of the year, contrasting with a small loss in the first half [1][3] - Q4 2025 revenues decreased to $923 million, reflecting weaker shipments and a significant operating loss of $37 million [1][2] Financial Performance - Full-year 2025 revenue was $3,769.3 million, down 13% from $4,308.2 million in 2024 [1] - Q4 2025 operating loss was $37.2 million compared to a profit of $32.3 million in Q4 2024, marking a 215% decline [1] - Adjusted operating profit for 2025 was $16.3 million, a 94% decrease from $267.4 million in 2024 [1] Lift Truck Business Results - Q4 2025 Lift Truck revenues totaled $871 million, down 15% year-over-year due to lower truck volumes across all product lines [1][2] - The Americas segment saw a 15% revenue decline to $676.8 million in Q4 2025 compared to $800.5 million in Q4 2024 [1] - Gross profit for the Lift Truck business in Q4 2025 was $111.8 million, a 41% decrease from $190 million in Q4 2024 [1] Market and Demand Outlook - The total lift truck market contracted in Q4 2025, but North America showed growth over Q3 2025, leading to increased booking activity [3] - Q4 2025 dollar value bookings increased to $540 million, a 35% rise from $400 million in Q4 2024, driven by strong performance in the Americas [3] - The company's backlog at the end of Q4 2025 was $1.28 billion, reflecting a decline due to shipments outpacing new bookings [3] Operational Initiatives and Cost Management - The company has initiated a restructuring program targeting annualized cost reductions of $40–$45 million starting in 2026 [4] - Ongoing inventory optimization efforts have led to a $185 million year-over-year decrease in inventory levels, enhancing cash flow [2][4] - Total recurring annualized savings are projected to reach $85–$100 million starting in 2028, with significant contributions from manufacturing footprint optimization and restructuring programs [4] Tariff Impact and Strategic Response - Tariffs have significantly increased costs and dampened product demand, with ongoing uncertainty around future tariff policies expected to persist through 2026 [2][4] - The company is implementing pricing, sourcing, and product-cost initiatives to mitigate tariff impacts, with benefits expected to increase beginning in Q2 2026 [4][5] - Forecasted tariff costs on Chinese components and steel are expected to remain consistent with Q4 2025 levels, subject to fluctuations based on U.S. tariff policy changes [4][5]

Core Insights - Hyster-Yale, Inc. (NYSE:HY) is recognized as one of the 15 Best 52-Week Low Dividend Stocks to Invest in [1] - Roth Capital has lowered its price target for Hyster-Yale to $40 from $50 while maintaining a Buy rating, citing market uncertainties and tariffs as challenges [2] - The company reported Q3 2025 revenue of $979 million, a 4% increase year-over-year, but Lift Truck revenues fell 4% to $929 million due to lower truck volumes [3] - CEO Rajiv Prasad noted an increase in bookings to $380 million in Q3 from $330 million in Q2, with strong performance in the EMEA and APAC regions [4] - Hyster-Yale is a globally integrated company offering a full range of lift trucks and tailored solutions for materials handling [5]

Financial Data and Key Metrics Changes - Q3 2025 revenues for lift trucks were $929 million, reflecting a 4% decline compared to the prior year, primarily due to lower truck volumes across all product lines [14][15] - Operating profit declined by $27 million year over year, mainly driven by lower truck volumes and higher tariff costs [16] - Q3 operating cash flow improved by nearly 25% from Q2, reaching $37 million, largely driven by improved inventory performance [18] Business Line Data and Key Metrics Changes - Lift truck bookings rose to $380 million in Q3, up from $330 million in Q2, with gains led by the EMEA and JPEC regions [5] - Bolzoni's Q3 revenues dropped 11% year over year to $87 million, primarily due to the planned phase-out of lower-margin legacy components and softer lift truck demand in the US [17] Market Data and Key Metrics Changes - Overall lift truck market demand declined across all regions and most product categories compared to Q2, with many customers postponing capital expenditures [5] - In the Americas, truck volumes fell significantly, particularly in higher-value Class 4 and 5 trucks, due to reduced manufacturing output amid demand uncertainty [15] Company Strategy and Development Direction - The company is implementing targeted initiatives to increase bookings and enhance market participation, including expanding product offerings to modular and scalable lift truck models [6][9] - The competitive landscape is changing rapidly, with increasing pressure from low-cost foreign competitors, particularly in South America and Europe [9] Management's Comments on Operating Environment and Future Outlook - Management noted that ongoing macroeconomic uncertainty, largely due to tariffs and interest rate discussions, is causing delays in customer order conversions [6] - The expectation is for demand to remain soft in the near term, with production rates adjusted to reflect actual booking and cancellation trends [11] Other Important Information - The company's backlog stood at $1.35 billion at the end of Q3, down from $1.65 billion in Q2, driven by fewer trucks shipped [10] - Direct tariff costs totaled $40 million in Q3, significantly impacting demand levels across various end markets [22] Q&A Session Summary Question: How does the current demand uncertainty compare to previous cycles? - Management indicated that while the market remains active with requests for quotes, decision-making is slow due to volatility in the environment, including concerns about tariffs and interest rates [32][33] Question: What actions could be taken if demand further degrades? - The company is reviewing all cost structures and production utilization, preparing for a conservative posture while remaining ready to ramp up if bookings increase [36] Question: What is the status of the modular scalable platform and lithium-ion strategy? - The modular scalable products have received positive feedback in key markets, and the company is launching integrated lithium-ion solutions in North America and Europe [37][38] Question: Are there specific verticals experiencing more headwinds? - Management noted a slowdown in heavy manufacturing, particularly in the auto sector, while light manufacturing and distribution have been stable [42] Question: What is the outlook for the fourth quarter? - The company expects Q4 revenue to decline compared to Q3 due to lower production rates and persistent tariff headwinds, projecting a moderate operating loss [24]

Financial Performance - Q3 2025 - Hyster-Yale's Q3 2025 revenue was $979 million, a decrease of 4% compared to the prior year[11, 14, 16] - The adjusted operating profit for Q3 2025 was $3 million, significantly lower than the prior year's strong results[11, 14, 16] - The adjusted net loss was $1.6 million for Q3 2025[11] - Lift Truck revenue was $929 million, 4% lower year-over-year[16, 19] - Bolzoni revenue was $87 million, 11% lower year-over-year[16, 19] Liquidity and Debt - The company has $275 million in unused borrowing capacity, improved by $10 million compared to Q2 2025[14] - Working capital as a percentage of sales decreased by 130 basis points to 20% compared to Q2 2025 due to improved inventory efficiency[14] - The company's debt composition includes $70 million in ABL Term Loan, $214 million in Working Capital Facilities, $100 million in Wholesale Financing, $56 million in Leases, and $23 million in Other debt, totaling $468 million[21] Outlook and Strategy - The company expects a profit decline in Q4 2025 on lower revenues, reflecting tariff-related cost and demand impacts[34] - Capex of $50-$60 million is forecasted[34] - The company's long-term financial objectives include achieving revenue growth at GDP++, operating profit margins of 7% of sales, working capital at 15% of sales, and a return on total capital employed (ROTCE) of over 20%[104]

Q2 2025 Financial Performance - Hyster-Yale's Q2 2025 consolidated revenue reached $957 million, an 18% decrease compared to the prior year[14, 17] - The company reported an adjusted operating profit of $7 million, down from Q2 2024's strong results[14, 17] - Hyster-Yale's adjusted net loss was $2 million in Q2 2025[14, 20] - Lift Truck revenue was $904 million, a 19% year-over-year decrease[20, 23] - Bolzoni's revenue was $91 million, a 12% decrease compared to the prior year[20, 23] Liquidity and Outlook - Hyster-Yale extended its credit facility to 2030, maintaining liquidity of $300 million[17, 27] - The company's working capital as a percentage of sales decreased by 100 basis points to 21% compared to Q1 2025[17, 28] - The unit bookings value declined to $330 million, a 44% decrease compared to Q1 2025[17] - The unit value backlog is $17 billion, representing approximately 4-5 months of production[17] - Full year 2025 is projected to be below the robust results of 2024, with higher tariffs creating cost and market demand uncertainty[18, 35] Strategic Initiatives and Long-Term Objectives - Hyster-Yale aims for long-term financial objectives including revenue growth at GDP++, operating profit margins of 7% of sales, working capital at 15% of sales, and a Return on Total Capital Employed (ROTCE) greater than 20%[105] - The company is focused on modular, scalable product platforms and optimized manufacturing footprint to improve capital efficiency[75, 94]

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]

Financial Data and Key Metrics Changes - In Q1 2025, lift truck revenues declined by 14% year over year, primarily due to lower sales volumes in The Americas and EMEA [19] - Operating cash outflows totaled $36 million, compared to inflows of $22 million in the prior year, driven by lower net income and unfavorable working capital changes [27] - The company's leverage, measured by net debt to EBITDA, was 1.6 times at the end of Q1 [26] Business Line Data and Key Metrics Changes - Lift Truck adjusted operating profit declined significantly compared to the prior year due to lower volumes and loss of manufacturing absorption [20] - JPIC revenues increased year over year due to increased volumes and a favorable product mix shift toward big trucks [19] - Bolzoni's revenues declined primarily due to the planned phase-out of lower-margin legacy products, but gross profit margins improved due to better pricing and lower material costs [22] Market Data and Key Metrics Changes - The lift truck booking market showed encouraging signs of recovery in The Americas and particularly in EMEA, with bookings of $590 million reflecting year-over-year growth and a nearly 50% sequential increase [12][30] - The company's backlog remains solid at $1.9 billion, with production rates expected to increase in Q2 [13][31] Company Strategy and Development Direction - The company is focusing on producing and selling products in the same region to avoid excess shipping costs and enhance delivery time [9] - A strategic business realignment related to Nuvera aims to enhance near-term profitability and create an integrated energy solutions program [14] - The long-term strategic focus is on driving profitable growth through innovation and operating efficiency [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant uncertainty created by shifting tariff levels and their effects on market demand and cost structures [7] - The company remains cautiously optimistic about its 2025 outlook, despite anticipating that operating profit will be below 2024's exceptionally strong results [18][35] - Management emphasized the importance of financial discipline and proactive pricing strategies to counter inflation and tariff-related costs [32][36] Other Important Information - The company expects to incur $15 million to $18 million in severance and impairment costs during Q2 due to the business realignment [16] - The effective tax rate increased due to the ongoing capitalization of research and development costs for U.S. tax purposes [25] Q&A Session Summary Question: No questions were raised during the Q&A session - The operator indicated that there were no questions from participants [43]

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]