Hyster-Yale (HY) investor relations material

Executive summary

• Q1 2026 revenue declined 13% year-over-year to $795 million, driven by a shift to lighter-duty, lower-priced trucks and $30 million in gross tariff costs.

• Operating loss was $28 million, with adjusted operating loss at $26 million, reflecting margin pressure from tariffs and product mix.

• Bookings rose 7% sequentially from Q4 2025, and backlog value increased to $1.4 billion, indicating early stabilization after a cyclical low.

• Inventory efficiency improved, with inventory down $126 million year-over-year and working capital improved by $99 million.

• Transformation and cost-reduction initiatives, including restructuring and new product launches, began yielding savings and early customer traction.

Financial highlights

• Net income loss was $31 million, with adjusted net loss at $29 million; net loss per diluted share was $(1.71).

• Gross profit fell 30% year-over-year to $124.8 million, with gross margin pressured by tariffs and product mix.

• Cash used for operating activities was $32.9 million, a $4 million improvement over Q1 2025.

• Net debt increased to $424 million, with net debt/adjusted EBITDA at 19.1x.

• Inventory levels and days inventory outstanding improved year-over-year.

Outlook and guidance

• Sequential improvement is expected in 2026, with first-half losses and anticipated profitability in the second half, driven by bookings, backlog, and cost actions.

• Full-year 2026 guidance anticipates a modest consolidated operating profit, with Q2 as the low point.

• Tariff costs are expected to rise in Q2 before mitigation actions take effect in the second half.

• Bookings and backlog are expected to continue rising into the second half, supported by pent-up demand and fleet replacement needs.

• Capital expenditures for 2026 are projected at $55–$70 million.