Hyster-Yale (HY) Q4 2025 earnings summary

Executive summary

• Q4 2025 bookings surged 42% sequentially and 35% year-over-year, signaling early demand recovery in the Americas, while EMEA and JAPIC remained weak.

• Q4 2025 saw a significant decline in revenue and profitability, driven by lower customer demand, order deferrals, and tariff impacts.

• Despite challenging market conditions, strong operating cash flow and improved net debt position were achieved through disciplined cost and inventory management.

• Strategic restructuring and cost-saving initiatives are underway, targeting $85–$100 million in annualized savings by 2028, with $40–$45 million starting in 2026.

• Bookings rebound in Q4 sets a foundation for expected revenue growth and moderate profit in 2026.

Financial highlights

• Q4 2025 revenue declined to $923 million, down 14% year-over-year, due to weaker shipment volumes and customer purchase delays.

• Adjusted Q4 operating loss was $15.7 million, including $40 million in gross tariff costs; adjusted net loss was $36.6 million.

• Full-year 2025 revenue was $3.77–$3.8 billion, with adjusted operating profit of $16–$16.3 million and adjusted net loss of $37 million.

• Q4 operating cash flow improved to $57 million, driven by inventory efficiency.

• Adjusted EBITDA for Q4 2025 was negative $1.7 million, a sharp decline from $64.5 million in Q4 2024.

Outlook and guidance

• Bookings momentum continued into early 2026, with expectations for Q1 2026 to mark the cycle trough and stronger volumes in the second half.

• Full-year 2026 guidance anticipates moderate operating profit, a small loss in the first half, and profit improvement in the second half as volumes and cost actions take effect.

• Capital expenditures for 2026 are projected at $55–$75 million, focused on product, IT, and manufacturing optimization.

• Tariffs projected to remain a substantial challenge, with mitigation efforts ongoing.

• Cost-reduction programs targeting $40–$45 million in annualized savings starting in 2026.