HYSTER-YALE, INC. Q4 FY2024 earnings call

• Footprint optimization: $21 million cost in Q4 2024 to streamline manufacturing, with expected $8-16 million in implementation costs in 2025-2026, benefits starting 2027. • Global demand: Lift truck bookings declined in Q4 2024, shipments exceeded bookings, production cadence adjusted. • 2025 focus: Lift Truck launched modular scalable trucks, automation development, electrification; Bolzoni innovating in attachments; Nuvera focusing on fuel cell and mobile power.

In 2024, total revenues were $4.3 billion, a 5% improvement over the prior year. The lift truck business had Q4 2024 sales up 4% year over year, with adjusted operating profit of $62 million, a 15% increase vs prior year. Bolzoni reported Q4 2024 revenue of $84 million, $4 million lower than the prior year, with adjusted breakeven operating loss below prior year but impacted by product mix and lower volumes. Nuvera had Q4 2024 adjusted operating loss improve sequentially due to lower marketing and headcount reduction, but faced industry constraints on hydrogen adoption delaying bookings.

• 2025 outlook: Lift truck revenues expected to decline, gross profit margins to decline toward target; operating expenses to increase. Bolzoni revenues to decline but margins to increase. Nuvera focused on increasing customer product demonstrations and orders. • Cash flow: Working capital improvement expected, CAPEX $40-80 million, disciplined capital allocation to reduce leverage and support growth.

• Market cyclicality: Impact from market downturn, potential tariffs, competitive intensity affecting margins. • Hydrogen adoption: Slow customer adoption due to hydrogen supply constraints and delayed vehicle development.

Q: Ted Jackson asked about the market outlook for 2025 and if the view on the global market had tempered.

A: Rajiv Prasad responded that the guidance is consistent with prior statements, expecting first half lower, second half improvement, noting market drop and higher cancellations than anticipated but expecting moderation moving forward