Hyster-Yale, Inc. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This summary covers the unaudited quarterly report (Form 10-Q) for Hyster-Yale, Inc. for the period ended June 30, 2026. The Company designs, manufactures, and sells lift trucks, attachments, and material handling solutions globally under the Hyster, Yale, Nuvera, and Bolzoni brands. Operations are segmented into Americas, EMEA, JAPIC, and Bolzoni.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Revenues | $812.9M | $956.6M | $1,608.1M | $1,867.0M |
| Gross Profit | $127.6M | $168.2M | $252.4M | $345.9M |
| Gross Margin | 15.7% | 17.6% | 15.7% | 18.5% |
| Operating Profit (Loss) | $(18.4)M | $(8.5)M | $(46.4)M | $12.8M |
| Net Loss Attributable to Stockholders | $(31.6)M | $(13.9)M | $(62.1)M | $(5.3)M |
| Diluted Loss Per Share | $(1.76) | $(0.79) | $(3.48) | $(0.30) |
| Cash and Cash Equivalents | $72.6M | $66.9M | $72.6M | $66.9M |
| Total Debt (Short + Long Term) | $401.4M | $394.3M | $401.4M | $394.3M |
| Operating Cash Flow (YTD) | $(16.2)M | $(7.5)M | $(16.2)M | $(7.5)M |
Material Changes vs. Prior Period
- Revenue Decline: Q2 2026 revenues decreased 15.0% year-over-year. The decline was driven by lower unit volumes (particularly Class 1 and Class 4 products) and a shift in product mix toward lower-intensity, lower-priced models in the Americas and EMEA regions.
- Operating Loss Expansion: The operating loss widened to $18.4M in Q2 2026 from $8.5M in Q2 2025. Key drivers included approximately $20M in additional tariff-related costs and lower volumes, partially offset by $35M in tariff-related recoveries (IEEPA refunds) and lower restructuring charges.
- Restructuring Costs: Restructuring and impairment charges dropped significantly to $1.7M in Q2 2026 compared to $15.7M in Q2 2025, reflecting the completion of major severance programs initiated in 2024 and 2025.
- Segment Performance: The Americas segment reported an operating profit of $3.6M (down from $11.7M), while EMEA and JAPIC reported operating losses of $18.4M and $5.7M, respectively. Bolzoni reported a modest operating profit of $2.0M.
Guidance, Outlook, and Risks
- Market Outlook: Management believes the first half of 2026 marked the bottom of the current market cycle. Bookings have increased for four consecutive quarters, with Q2 bookings more than doubling year-over-year.
- Full-Year 2026 Expectation: The Company expects a moderate operating loss for the full year 2026. The strongest improvement in operating results is anticipated in the latter part of the year as shipment volumes increase.
- Tariff Environment: Outlook assumes continued Section 232 and Section 301 tariffs. While pricing and sourcing actions are expected to offset some costs, the Company does not currently expect to fully offset all tariff-related expenses in 2026.
- Cost Reductions: Restructuring and footprint optimization initiatives are expected to generate annualized benefits of $15M-$20M in 2027 and $30M-$40M in 2028. Additional costs of $6M-$10M are expected for the remainder of 2026.
- Risks: Key risks include supply chain disruptions, geopolitical conflicts (Red Sea, Ukraine, Middle East), inflation, and the ability to recover remaining IEEPA tariffs. The Company also faces competitive pricing pressure in South America and Europe.
Investor Verification Checklist
- Tariff Recovery Timing: Verify the timing and certainty of the remaining $35M+ in IEEPA tariff recoveries and the impact of new Section 122 import surcharges.
- Product Mix Shift: Assess the long-term margin impact of the strategic shift toward lower-intensity, lower-priced lift trucks versus traditional high-margin models.
- Working Capital Efficiency: Monitor the Company's ability to maintain inventory discipline and achieve its target of 15% working capital to revenue as production ramps up in H2 2026.
- Restructuring Execution: Track the realization of the projected $40M-$45M annualized cost savings from 2025 restructuring programs and the $15M-$20M benefits from footprint optimization in 2027.
- Liquidity Position: Review the utilization of the $300M revolving credit facility and the $225M term loan, noting $200.1M in availability under the facility as of June 30, 2026.