Hyster-Yale Q2 Earnings Call Highlights

Hyster-Yale’s recovery continued in Q2: Bookings rose 17% sequentially to $680 million, while revenue increased 2% to $813 million and the operating loss narrowed to $18 million. Operating cash flow improved by approximately $50 million sequentially to positive $17 million.

Tariffs and delivery timing are delaying the rebound: Production shifts and customer requests are expected to move some revenue from the third quarter into the fourth quarter, pushing more of the recovery into late 2026. The company still expects a moderate operating loss for full-year 2026.

Cost initiatives support the longer-term outlook: Restructuring, sourcing changes and manufacturing-footprint optimization are expected to deliver significant savings, while Bolzoni returned to profitability. Management projects trailing 12-month EBITDA to exceed pre-COVID levels in the second half of 2027.

Hyster-Yale NYSE: HY said second-quarter results showed further signs of a gradual recovery in the lift truck market, with sequential gains in bookings, revenue, operating performance and cash flow. Management said, however, that customer delivery timing and production changes tied to tariff mitigation are expected to shift a larger portion of the recovery into the latter part of 2026.

Bookings totaled $680 million in the second quarter, up 17% from the first quarter and more than double the level reported in the second quarter of 2025. The company said this marked its fourth consecutive quarter of booking growth and its highest quarterly booking level in three years, driven primarily by the Americas.

Revenue was $813 million, a 2% sequential increase, as stronger order activity began to translate into higher shipments. Consolidated operating loss narrowed to $18 million, an improvement of about $10 million from the first quarter. Net loss was $32 million, including a $3 million non-cash valuation allowance related to Brazilian deferred tax assets.

Tariffs and timing weigh on recovery Andrea Sejba, Hyster-Yale’s director of investor relations and treasury, said the lift truck business benefited from higher shipments, favorable pricing and lower employee-related expenses during the quarter. The results also included $35 million in tariff refunds, although that benefit was largely offset by unfavorable capitalized material costs and $10 million in higher gross tariff expense.

Rajiv Prasad, Hyster-Yale’s president and chief executive officer, said the company believes the first half of 2026 marked the financial low point of the current lift truck cycle. He said demand improved in the second quarter, but the company remains in the early stages of a recovery. “While we are far from full recovery, the business is beginning to move in the right direction,” Prasad said.

The company is raising production rates to meet higher demand, but management said shipment growth will temporarily lag booking growth. Orders include both near-term demand and deliveries scheduled more than six months out, while production increases require time to move through the supply chain. Prasad also cited changes to manufacturing plans resulting from tariffs. He told analysts that Hyster-Yale had initially intended to build certain trucks for North America in Europe, but shifted those production plans to North America after changes in April to Section 232 tariffs. He said the tariffs initially amounted to 25% of the cost of imported trucks and were subsequently reduced to 15% for imports from Europe. Those changes have affected delivery timing, and Prasad said the company expects some revenue previously anticipated in the third quarter to shift into the fourth quarter. He added that some customers have requested lat...