Hyster-Yale (HY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew year-over-year to $1,016.1 million, led by Americas Lift Truck and Bolzoni, but operating profit and net income declined sharply due to supply chain constraints, higher costs, and product introduction issues.

• Net income attributable to stockholders fell 52% to $17.2 million, while diluted EPS was $0.97; operating profit dropped 44% to $33.1 million.

• For the first nine months of 2024, revenues increased 4.8% to $3,240.7 million, and net income grew 31% to $132.0 million.

• Strategic initiatives in modular and scalable products and advanced technologies are supporting market share gains, especially in warehouse applications.

• Backlog of $2.3 billion is expected to support 2025 shipment levels similar to 2024, with higher production anticipated in 2026.

Financial highlights

• Q3 2024 consolidated revenue reached $1,016.1 million, up year-over-year; operating profit was $33.1 million, down 44%; net income was $17.2 million, down 52% from Q3 2023.

• Gross profit for Q3 2024 declined 7% to $172.9 million; gross margin was 17.0%, down from 18.6% in Q3 2023.

• Debt-to-total capital improved to 46%, down from 51% in Q2 2024 and 55% at year-end 2023.

• Working capital rose to 21% of sales in Q3 due to elevated inventory and lower sales.

• EBITDA for Q3 2024 was $47.7 million, down from $110.4 million in Q2 2024.

Outlook and guidance

• Q4 2024 revenues and net income expected to be comparable to prior year; full-year 2024 results to improve year-over-year, driven by a strong first half.

• 2025 is expected to see a moderate decrease in lift truck revenue and a significant drop in operating profit and net income due to lower backlog, cost inflation, and higher expenses.

• Bolzoni Q4 revenues and profit expected to decrease year-over-year, but 2025 profit should improve despite lower sales volumes.

• Nuvera expects improved revenues in 2025, with benefits from cost reductions and new product launches.

• Production levels to outpace bookings through mid-2025, with bookings expected to accelerate in the second half of 2025, supporting higher 2026 production.