Hyster-Yale Materials Handling (HY) investor relations material

Executive summary

• Q2 2025 revenues declined 18–19% year-over-year to $956.6–$957M, mainly due to lower volumes, pricing pressures, and tariff-related uncertainty, but rose 5% sequentially.

• Adjusted operating profit fell to $5–$7.2M, with net loss at $13.9–$14M, impacted by lower gross profit and $15M+ in restructuring and impairment charges.

• Both Lift Truck and Bolzoni segments saw lower sales and profits due to weak industry booking rates, lower volumes, and unfavorable mix.

• Bookings and backlog declined to $1.7B from $1.9B, as shipments outpaced new orders amid tariff and demand uncertainty.

• Management is prioritizing customer engagement, pricing discipline, operational flexibility, and strategic initiatives such as manufacturing optimization and product innovation.

Financial highlights

• Q2 2025 revenues: $956.6–$957M (down 18–19% year-over-year, up 5% sequentially); gross profit: $168.2M (down 35%).

• Adjusted operating profit: $5–$7.2M; net loss: $13.9–$14M; adjusted net loss: $2–$2.3M.

• Diluted EPS: $(0.79); adjusted diluted EPS: $(0.14).

• Working capital was 21% of sales, improved from prior quarter.

• Net debt/Adjusted EBITDA at 2.4x, up from 1.3x a year ago due to lower earnings.

Outlook and guidance

• Full-year 2025 revenues, production, and profits expected below 2024 due to tariffs, weaker demand, and competitive pressures.

• Q3 2025 operating profit projected to improve sequentially on higher volumes and efficiency.

• Tariffs expected to negatively impact H2 2025 results despite mitigation efforts; volatility makes precise impact estimates difficult.

• Full-year 2025 operating profit expected to decline significantly versus prior year and be below previous guidance.

• Capital expenditures for 2025 forecasted at $50–$60M, with flexibility to adjust as market visibility improves.