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    HY
    Earnings call· Jun 2026(Q2 FY26)

    HYSTER-YALE Q2 FY26 earnings call HY

    Aug 5, 2026 Source

    Executive summary

    Hyster-Yale Q2 FY26 — Gradual Recovery with Strong Bookings and Strategic Progress

    Hyster-Yale reported a Q2 FY26 marked by encouraging signs of a gradual market recovery, with strong bookings growth and improved operating cash flow. Strategic initiatives, including expanded value product offerings and modular platforms, are gaining traction, broadening market participation. However, profitability remains challenged by tariff costs and a lag between booking growth and shipment realization, pushing significant performance improvements to the latter half of the year.

    Highlights

    4

    • Bookings for the quarter were $680 million, up 17% sequentially and more than double the level of Q2 FY25, marking the fourth consecutive quarter of growth.

    • Consolidated operating loss improved to $18 million, approximately $10 million better than Q1 FY26.

    • Operating cash flow was a source of $17 million, improving approximately $50 million from Q1 FY26.

    • Bolzoni returned to profitability, driven by favorable product mix, lower freight costs, and disciplined cost management.

    Concerns

    4

    • Consolidated operating loss of $18 million and net loss of $32 million for the quarter.

    • Tariff expenses increased by $10 million, largely offsetting a $35 million tariff refund.

    • Shipments have not increased at the same pace as bookings, with production growth expected to temporarily lag due to customer delivery schedules and tariff mitigation sourcing transitions.

    • Profitability remains under pressure, with volumes below optimal levels.

    Guidance & targets

    4
    CategoryTargetConfidence
    Full-year 2026 operating loss
    moderate operating loss
    high materiality
    Medium
    Operating profit margin
    7% operating profit
    high materiality
    High
    Trailing 12-month EBITDA
    above pre-COVID levels
    high materiality
    Medium
    Manufacturing footprint optimization annualized benefits
    $15 million to $20 million
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Lift Truck Business
    Most of the consolidated operating loss improvement came from the lift truck business, which helped offset ongoing market challenges.
    Higher shipmentsFavorable pricingLower employee-related expenses
    		———improved
    Bolzoni
    Bolzoni also improved sequentially during the second quarter of 2026, returning to profitability as favorable product mix, lower freight costs and disciplined cost management more than offset slightly lower revenue.
    Favorable product mixLower freight costsDisciplined cost management
    		slightly lower——returned to profitability

    Operational metrics

    7
    Bookings
    $680 millionup 17% sequentially; more than double Q2 FY25
    Q2 FY26

    Bookings reached their highest quarterly levels in 3 years, driven primarily by the Americas.

    Revenue
    $813 millionup 2% compared to Q1 FY26
    Q2 FY26

    Stronger bookings began translating into higher shipments.

    Consolidated operating loss
    $18 millionapproximately $10 million better than Q1 FY26
    Q2 FY26

    Most of the improvement came from the lift truck business.

    Net loss
    $32 million
    Q2 FY26

    Includes the establishment of a $3 million noncash valuation allowance related to Brazilian deferred tax assets.

    Tariff refunds
    $35 million
    Q2 FY26

    Benefits largely offset by higher gross tariff expenses.

    Higher gross tariff expenses
    $10 million
    Q2 FY26

    Largely offset tariff refunds.

    2025 restructuring program annualized savings
    $40 million to $45 million
    annualized

    These actions are establishing a lower ongoing cost structure for the business.

    Industry KPIs

    4
    MetricValueDetails
    Capacity expansion$15 million to $20 millionUSD
    Tariff cost impact$10 millionUSD
    Parts aftermarket businessearly
    Order backlog order intake by segment$680 millionUSD

    Orderbook & backlog

    1
    Total Bookings$680 millionQ2 FY26

    up 17% sequentially; more than double Q2 FY25

    Represents the fourth consecutive quarter of bookings growth. Bookings reached their highest quarterly levels in 3 years, driven primarily by the Americas. Expected to continue growing through 2026 and flatten out in 2027.

    Product announcements

    4
    ProductTypeDetails
    Value product offeringsexpansion
    Modular, scalable product platformsupdate
    Bolzoni new attachment introductionslaunch
    Bolzoni camera vision systemsexpansion

    Deals & partnerships

    1
    WalmartIntegration of Walmart's mass business into Bolzoni's operations.

    Bolzoni continues to expand its growth opportunities through the integration of Walmart's mass business.

    Capital programs

    1
    Manufacturing footprint optimization projectson track

    Benefit: $15 million to $20 million of annualized benefits

    Our manufacturing footprint optimization projects remain on track and are expected to provide further benefits to earnings as implementation activities are completed. We currently expect these initiatives to begin contributing meaningfully in the second half of 2027, with approximately $15 million to $20 million of annualized benefits expected as volumes recover.

    Risks & headwinds

    4
    Profitability pressureQ2 FY26, ongoing market challenges

    Consolidated operating loss of $18 million and net loss of $32 million

    Mitigation: Higher shipments, favorable pricing, and lower employee-related expenses in the lift truck business; favorable product mix, lower freight costs, and disciplined cost management in Bolzoni.

    TariffsQ2 FY26, remain a headwind

    $10 million in higher gross tariff expenses, largely offsetting $35 million in tariff refunds.

    Mitigation: Implementing sourcing and production changes, including relocating activities to the United States and other lower tariff regions; pricing, sourcing, and product cost initiatives expected to deliver increasing benefits in H2 FY26.

    Lag between bookings and shipmentsProduction growth expected to temporarily lag booking growth, improvements weighted more heavily towards the latter part of 2026.

    Shipments have not increased at the same pace as bookings.

    Mitigation: Raising production rates; focused on converting stronger bookings into shipments.

    Competitive pricing pressuresSecond half of the year

    Expected to moderate the pace of recovery.

    Mitigation: Pricing actions; preserving competitive position.

    What to watch in Q3 FY26

    5

    Bookings growth trend

    Q3 FY26
    Currentfourth consecutive quarter of bookings growth, $680 million in Q2 FY26
    Targetcontinued trend (despite Q3 seasonality)

    Why it matters

    Bookings are a leading indicator of future revenue and market recovery.

    Yes, we're seeing the same trend. Obviously, as we have said multiple times before, third quarter is when we have our July and August kind of holidays everywhere around the world. So, that does affect our bookings, but the trend has definitely continued.

    Q&A highlights

    5

    Is the bookings growth trend continuing into Q3, despite typical seasonality?

    Yes, the bookings trend has continued into Q3, although the third quarter typically experiences lower bookings due to July and August holidays.

    “Yes, we're seeing the same trend. Obviously, as we have said multiple times before, third quarter is when we have our July and August kind of holidays everywhere around the world. So, that does affect our bookings, but the trend has definitely continued.”

    asked by Edward Jackson · answered by Rajiv Prasad

    2 min read6 chapters

    Detailed Narrative

    01

    Market Recovery and Demand Environment

    The first half of 2026 is believed to be the financial low point of the current lift truck cycle, with demand improving during Q2. Key operating indicators showed positive movement, including increased bookings, improved revenue, better operating results, and a shift to positive quarterly cash flow. This reflects disciplined working capital management, even as profitability remains under pressure, signaling that the business is moving in the right direction despite being in early recovery stages.

    02

    Strategic Product Offerings

    Hyster-Yale's deliberate strategy of investing in modular, scalable product platforms is gaining momentum, particularly with value product offerings. These products are expanding market participation by enabling the company to compete across a broader range of price points and customer requirements. The modular architecture leverages common platforms and components, allowing for scale efficiency and attractive margin opportunities while serving a wider customer base with the 'right truck at the right price'.

    03

    Tariff Mitigation and Supply Chain

    Tariffs continue to be a significant headwind, influencing both cost and production decisions. To mitigate future exposure, the company is actively implementing sourcing and production changes, including relocating certain activities to the United States and other lower-tariff regions. While these actions cause temporary disruptions to production schedules and shipment timing, they are expected to strengthen the company's cost position and provide greater supply chain flexibility over the long term⏳.

    04

    Cost Structure Improvements

    The 2025 restructuring program is on track, having captured approximately half of its expected $40 million to $45 million in annualized savings during the first half of the year. Additionally, manufacturing footprint optimization projects are progressing as planned, anticipated to contribute $15 million to $20 million in annualized benefits from the second half of 2027. These initiatives collectively aim to establish a lower structural cost base, improve efficiency, and reduce the long-term breakeven point, enhancing profitability as demand recovers.

    05

    Bookings to Shipments Lag

    Despite strengthened bookings, shipments have not increased at the same pace due to a combination of customer-requested delivery schedule modifications and sourcing transitions related to tariff mitigation initiatives. Production growth is expected to temporarily lag booking growth, meaning that the most significant improvements in performance are anticipated to be weighted towards the latter part of 2026 as production rates increase and supply chain adjustments are completed.

    06

    Bolzoni Performance

    Bolzoni demonstrated sequential improvement in Q2 FY26, returning to profitability. This positive shift was driven by a favorable product mix, reduced freight costs, and disciplined cost management, which successfully offset slightly lower revenue. Bolzoni is also actively expanding its growth opportunities through the integration of Walmart's mass business, the introduction of new attachments, and the expansion of its camera vision systems, aiming to broaden its addressable market and enhance product offerings.

    AI-generated summary of the company’s earnings call. Not investment advice.