Hyster-Yale (HY) investor relations material

Executive summary

• Q2 2026 marked the fourth consecutive quarter of bookings growth, with bookings up 17% sequentially to $680 million and more than double the prior year, signaling early recovery in the market cycle.

• Revenue increased 2% sequentially to $813 million, but declined 15% year-over-year due to lower shipment volumes and a shift to lower-priced models.

• Operating loss narrowed to $18.4 million from Q1 2026, but was higher than Q2 2025, with most gains from the lift truck business.

• Net loss was $32 million, including a $3 million non-cash valuation allowance for Brazilian deferred tax assets.

• Operating cash flow turned positive at $17 million, a $50 million improvement from Q1 2026, driven by working capital actions.

Financial highlights

• Bookings reached their highest quarterly level in three years, driven by the Americas.

• Gross profit fell 24% year-over-year to $127.6 million, with margin pressured by lower sales of higher-value products and higher tariff costs.

• Adjusted operating loss was $16.7 million, a $10 million sequential improvement.

• Tariff refund of $35 million was offset by higher capitalized material costs and $10 million in additional tariff costs.

• Bolzoni returned to profitability due to favorable mix, lower freight, and cost management.

Outlook and guidance

• Full-year 2026 is expected to show a moderate operating loss, with the strongest improvement anticipated in late 2026 as production and shipments rise.

• Bookings in 2026 are expected to exceed 2025, with backlog at approximately five months of production and shipment growth weighted toward the latter part of the year.

• Manufacturing footprint optimization and restructuring are expected to deliver $15–$20 million and $40–$45 million in annualized savings, respectively.

• Capital expenditures for 2026 are projected at $50–$60 million, focused on manufacturing, product development, and IT.

• Recovery in demand and production volumes anticipated to drive profitability and cash generation.