Will revenue expected in Q3 shift to Q4 due to tariff-related production changes?

Yes, revenue recognition is expected to shift. An example given was changing plans to produce trucks for North America in Europe to producing them in North America due to new 232 tariffs, causing delivery timing changes. Customer-requested delivery shifts are a minor factor. “Yes. I think that would be the case. Maybe I can give you some solid example of what's happening. So, our original plan was to build some of the trucks, for instance, for North America in Europe. And with the change in April to the 232 tariffs, which was quite dramatic for us, we changed those plans. And those trucks have now been rescheduled to produce in North America with -- of course, our customer are aware of this with some changes in delivery timing.”

Given that production rates are lagging bookings, should investors expect continued backlog growth through 2026 and into 2027?

Backlog is expected to continue growing through 2026 as production ramps up, and then flatten out in 2027. The company anticipates reaching a good production rate by Q1 2027. “I mean I think we'll see it flatten out in '27. But you're right about this ramp-up. As you know, Ted, this has been a significant ramp-up and still in progress. We're in the early stages and -- but that will continue throughout this year. And I would say it will -- based on our expectation for the 2027 market, I think we'll be at a good rate by the first quarter of '27.”

How does unit bookings growth compare to dollar bookings, especially with the success of the modular product offering?

The ramp-up in volume is even across product lines. There is a trend towards simpler, standard, and value trucks within product lines, as customers increasingly choose trucks better suited for their specific applications, such as value trucks for low-hour retail usage. “The way I would characterize it is that the ramp-up in volume is pretty even across our product lines. Now within the product lines, the way we define the product lines, there is a trend towards the simpler trucks. And we think that's the right thing.”

Hyster-Yale (HY) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 5, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Full-year 2026 operating loss	moderate operating loss high materiality	FY26	Medium
Operating profit margin	7% operating profit high materiality	over the business cycle	High
Trailing 12-month EBITDA	above pre-COVID levels high materiality	second half of 2027 · FY27	Medium
Manufacturing footprint optimization annualized benefits	$15 million to $20 million medium materiality	annualized	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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

Orderbook & backlog

Total Bookings $680 million Q2 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

Product	Type	Timeline
Value product offerings	expansion	—
Modular, scalable product platforms	update	—
Bolzoni new attachment introductions	launch	—
Bolzoni camera vision systems	expansion	—

Deals & partnerships

Walmart Integration 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

Manufacturing footprint optimization projects on 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

Profitability pressure Q2 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.

Tariffs Q2 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 shipments Production 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 pressures Second half of the year

Expected to moderate the pace of recovery.

Mitigation:Pricing actions; preserving competitive position.

What to watch in Q3 FY26

Bookings growth trend

Q3 FY26

Current fourth consecutive quarter of bookings growth, $680 million in Q2 FY26

Target continued 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.

Find out whether HY delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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'.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.