$HY earnings report

Hyster-Yale reported sequential improvement in Q2 2026 as bookings began converting into shipments. Revenue was $813M, compared with $795M in Q1 2026, and the presentation characterized this as a 2% improvement. Unit bookings volume was $680M, up 17% versus Q1’26 and twice Q2’25, while unit value backlog reached $1.6B and represented ~5 months of production. Management described Q2 as the fourth consecutive quarter of booking growth and expects bookings in 2026 to exceed 2025.

Profitability improved but remained negative. GAAP operating loss was ($18), compared with ($28) in Q1 2026, and GAAP net loss was ($32), compared with ($31). Adjusted operating loss was ($17), compared with ($26), while adjusted EBITDA improved to ($5) from ($13). The company cited higher volumes and favorable pricing, as well as lower employee-related expenses including incentive compensation. Gross profit was above Q1 2026, although the presentation attributed part of the improvement to a $35M tariff refund that offset unfavorable capitalized material costs and $10M higher gross tariff costs.

Cash generation and working capital showed sequential and year-over-year progress. Cash provided by operations was $17M, a $50M improvement versus Q1’26. Working capital was $689M and improved $125M YoY, supported by inventory down $149M and a YoY eight-day reduction in days inventory outstanding. Cash on hand was $73M, debt was $500M and decreased $5M versus Q1‘26, and unused borrowing capacity was $223M. The company paid $13M of dividends year to date in Q2 2026, compared with $12M in Q2 2025.

The outlook calls for a second-half recovery but does not remove the near-term earnings pressure. Management expects improved demand and higher bookings to support increased shipments and revenue, with the strongest improvement expected in the latter part of 2026. It expects pricing, sourcing and product-cost actions to provide increasing benefit in the second-half of 2026, but states tariff costs will not be fully offset. Customer delivery schedules and sourcing transitions have delayed recovery timing. The company expects a moderate full-year operating loss and expects the 2025 restructuring program to provide an annualized benefit of $40 - $45M, with approximately half expected in the remainder of 2026.

Hyster-Yale reported a weak Q2 2026. Consolidated revenues were $812.9 million, down -15.0 % year over year from $956.6 million. Revenue was higher than the immediately preceding quarter's $795.2 million, but the filing did not report a quarter-over-quarter percentage change. The Lift Truck Business reported revenues of $755.5 million, down -16.4 % year over year.

The regional Lift Truck revenue data show declines across all reported regions. Americas revenues were $596.2 million, down -15.7 % year over year. EMEA revenues were $118.2 million, down -20.3 % year over year, while JAPIC revenues were $41.1 million, down -15.1 % year over year. The filing text did not provide narrative explanations for these segment revenue movements.

Profitability remained under pressure. Gross Profit was $127.6 million and Gross Profit % was 15.7 %, compared with $168.2 million and 17.6 % in the second quarter of 2025. Operating Expenses were $146.0 million, or 18.0 % of revenue. The company recorded an Operating Profit (Loss) of $(18.4) million and a Net Income (Loss) Attributable to Stockholders of $(31.6) million. Second-quarter restructuring charges were $1.7 million in the Americas.

Cash generation was positive but lower year over year. Net Cash Provided By Operating Activities was $16.7 million, compared with $28.9 million in the second quarter of 2025, and Cash Flow Before Financing Activities was $2.5 million. Capital expenditures were $14.7 million. Net working capital was $688.9 million, or 21.2 % of revenue.

The balance sheet metrics warrant attention. Total Debt was $500.0 million, compared with $473.2 million in the second quarter of 2025, while Debt to Total Capitalization was 54.9 %, compared with 46.5 %. Total Equity was $410.0 million. The company paid $6.6 million of dividends to stockholders. No forward guidance was included in the supplied filing text.

Hyster-Yale's Q2 2026 results showed a sequential stabilization but a materially weaker year-over-year earnings profile. Consolidated revenue was $812.9, up 2% from Q1 2026 but down (15)% from Q2 2025. The operating loss narrowed to $(18.4) from $(28.0) in Q1 2026, while net loss was $(31.6). Adjusted operating loss improved sequentially to $(16.7), but remained below the $7.2 of adjusted operating profit reported in Q2 2025.

Lift Truck remained the principal source of the year-over-year pressure. Revenue was $755.5, down (16)% from Q2 2025, as lower shipment volumes and an unfavorable mix more than offset positive pricing of $17 million. The Company identified lower sales of higher-value standard and premium counterbalanced lift trucks, particularly Class 1 and Class 4 products, as a key mix headwind. At the same time, recently introduced low-intensity products gained market acceptance, supported market-share gains and helped offset lower sales of higher-revenue products.

Profitability improved from Q1 2026 but remained constrained. Lift Truck operating loss improved to $(20.5) from $(27.9), aided by higher shipment volumes, favorable pricing and lower employee-related expenses. Gross margin benefited from $35 million of tariff refunds, although unfavorable capitalized material costs and $10 million of higher gross tariff costs versus Q1 2026 offset much of that benefit. Compared with Q2 2025, Lift Truck gross profit declined (28)% and operating results absorbed $20 million of incremental gross tariff-related costs. Bolzoni Group provided a positive sequential contribution as operating profit improved to $2.0 from $(0.1), supported by lower freight costs, favorable product mix and lower operating expenses.

Demand indicators strengthened. Lift Truck bookings reached $680, up 17% sequentially and 106% from Q2 2025, marking the fourth consecutive quarter of growth. Backlog was $1,580, up 12% from Q1 2026, and the Company stated that bookings exceeded shipments during the quarter. Management continues to view the first half of 2026 as the bottom of the current lift truck market cycle and expects bookings in 2026 to exceed 2025, supported by industry conditions, market-share gains and broader acceptance of its product portfolio.

Liquidity improved sequentially through working-capital execution. Operating cash flow shifted to a source of $17 million from a use of $33 million in Q1 2026, and the Company reduced debt during the quarter despite higher capital expenditures. Debt was $500.0 and net debt was $427.4 at June 30, 2026. The outlook remains conditional on tariff assumptions, market conditions and successful tariff-mitigation execution. Cost actions are progressing, with approximately half of the expected annualized $40 million to $45 million cost reductions recognized in the first six months of 2026, while the Company now expects $15-20 of annualized income and cash benefits in 2027 and $30-40 in 2028.