Hyster-Yale (HY) Q4 2025 earnings summary

Executive summary

• Q4 2025 bookings surged 42% sequentially and 35% year-over-year, signaling early demand recovery in North America and the Americas, despite weak EMEA and JAPIC performance.

• Q4 2025 saw a significant decline in revenue and profitability, driven by lower customer demand, order deferrals, and tariff impacts.

• Strong operating cash flow and improved net debt position were achieved through disciplined cost and inventory management.

• Strategic actions included cost structure reductions, operational flexibility, and investments in modular platforms and automation.

• Tariffs remained a significant headwind, reducing both Q4 and full-year revenue and operating profit.

Financial highlights

• Q4 2025 consolidated revenue was $923 million, down 14% year-over-year, with shipment delays and lower volumes.

• Q4 adjusted operating loss was $15.7 million, including $40 million in gross tariff costs.

• Q4 net loss was $52.5 million, with diluted loss per share of $2.96.

• Full-year 2025 revenue was $3.8 billion, with adjusted operating profit of $16 million and adjusted net loss of $37 million.

• Adjusted EBITDA for Q4 2025 was negative $1.7 million, a sharp decline from $64.5 million in Q4 2024.

Outlook and guidance

• Bookings momentum continued into early 2026, with expectations for Q1 2026 to mark the cycle trough and stronger volumes in the second half.

• Full year 2026 guidance anticipates moderate operating profit, a small loss in the first half, and profit improvement in the second half as volumes rise and cost actions take effect.

• Gross margins are expected to normalize to mid-to-high teens by the end of 2026, reflecting a mix shift toward lower-priced products.

• Capital expenditures for 2026 are projected at $55–$75 million, focused on product, IT, and manufacturing optimization.

• Tariffs projected to remain a substantial challenge, with mitigation efforts ongoing.