HYSTER-YALE, INC. Q4 FY2025 earnings call

• Fourth quarter bookings strengthened, with 42% sequential and 35% year-over-year increase. Operating cash flow in the fourth quarter was $57 million due to improved inventory efficiency.
• Market conditions were challenging in the fourth quarter with revenues down and tariffs as a headwind.
• In 2026, early bookings persisted, North America showed demand recovery. The market shifted to lighter-duty products.
• Company actions: Product strategy with modular and scalable platforms, operational efficiency through tight inventory management, manufacturing flexibility with modular platforms, customer engagement by co-developing solutions, product innovation with new launches and technologies, market readiness by watching leading indicators, and global optimization of manufacturing and supply chain. Cost savings initiatives like New Era strategic realignment, restructuring program, and manufacturing footprint optimization were also mentioned.

In the fourth quarter, bookings strengthened significantly, increasing 42% sequentially and 35% year-over-year. However, fourth quarter revenues declined to $923 million due to weaker shipment volumes and tariffs. Tariffs reduced quarterly and full-year revenue and operating profits. Full year 2025 revenue was $3.8 billion, and adjusted operating profit was $16 million, with approximately $100 million in gross tariff costs. Bookings in the fourth quarter were driven by the Americas, particularly strong in core counterbalance class five trucks. In 2026, early bookings were strong across regions, but the market continued to shift towards lighter-duty, lower-priced models, affecting shipment in higher-margin categories.

• Expect quarter one 2026 to be the trough of the cycle. Volume recovery expected in the second half of 2026.
• Full year 2026 expected to have moderate operating profit, with a small loss in the first half and stronger returns later as cost actions take hold.
• Capital expenditure focused on product, IT infrastructure, and manufacturing optimization. Emphasis on working capital management and long-term value creation.

• Tariffs remain a significant external factor. The Supreme Court's ruling on IEPA tariffs was limited, and broader trade policy uncertainties exist with potential challenges to tariff applications and cost recoveries.

Q: Chip Moore asked about pent-up demand, fleet replacement, mix and profitable lifts.

A: Customers transitioning from conserving to ensuring needs, bookings heavy on counterbalance trucks, new product launches including modular platforms and automation pilot with orders starting.

Q: Ted Jackson asked about bookings, margins, CapEx, and warehouse market penetration.

A: Bookings strengthening, margins normalizing to mid-teens to high-teens, CapEx in product, IT, manufacturing optimization, progress in warehouse market with new trucks and safety systems.

Q: Kurt Lutke asked about end market orders, impact of automation and lithium-ion on margins, percentage of autonomous sales in Americas, and tariffs.

A: Recovery in industrials, automation and lithium-ion increase revenue and margins, autonomous sales in pilot phase, constant juggle of tariff-related sourcing decisions.