Hyster-Yale (HY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 7.1% year-over-year to $1,168.1 million, with net income up 65.3% to $63.3 million and operating profit up 63% to $95.6 million, driven by improved pricing and lower incentives despite lower EMEA unit volume.

• Operating profit margin rose to 8.2% from 5.4% in Q2 2023, exceeding expectations and achieving the 7% margin goal for Lift Truck and Bolzoni.

• Name changed to Hyster-Yale, Inc.; main operating subsidiary is Hyster-Yale Materials Handling, Inc.

• Strong pricing, favorable product mix, and backlog utilization supported results despite market softness.

Financial highlights

• Q2 2024 gross profit increased 31% to $259.3 million; operating profit margin improved to 8.2%.

• Diluted EPS for Q2 2024 was $3.58, up 62% year-over-year.

• Net cash provided by operating activities for the first six months of 2024 was $19.9 million, down from $44.8 million in the prior year, mainly due to working capital changes.

• Debt to total capitalization decreased to 51% from 55% at year-end 2023; net debt improved 9% year-over-year to $435.4 million.

• Gross margin for Q2 2024 was 22.2% (Q2 2023: 18.1%).

Outlook and guidance

• Full-year 2024 results expected to improve over prior projections, with continued revenue growth and strong product margins in H2, supported by a $2.6 billion backlog.

• Q3 revenues and operating profit to decrease sequentially due to seasonality and freight costs, but Q4 expected to improve.

• Net income for H2 2024 anticipated to be comparable to prior year, aided by lower interest and tax expenses.

• 2024 capital expenditures forecast at $60 million, down from $84 million.

• Long-term goals include above-market revenue and profit growth, and sustainable competitive advantage.