HY · Hyster-Yale Materials Handling, Inc.

Hyster-Yale's first quarter 2026 results reflect significant headwinds from tariffs and a shift in product mix toward lighter-duty trucks. Consolidated revenues of $795 million declined 13% year-over-year and 14% sequentially, driven by a 14% drop in Lift Truck revenues to $740 million. The operating loss of $28 million included approximately $30 million in gross tariff costs, partially offset by pricing actions in the Americas and lower employee-related expenses from restructuring. The Bolzoni Group posted a 3% revenue increase but a small operating loss due to higher employee costs from the Valmar acquisition. Management highlighted that bookings strengthened 7% sequentially, signaling early stabilization after a cyclical low in Q3 2025. The company's outlook for 2026 anticipates sequential improvement, with H2 benefiting from stronger bookings, adequate backlogs, and cost actions, though tariffs remain a material headwind. A restructuring program targeting $40-45 million in annualized cost reductions is underway, with initial savings visible in Q1. Manufacturing footprint optimization projects are expected to yield $30-40 million in annualized benefits by 2028. The company ended the quarter with $505 million in debt and $82 million in cash, resulting in net debt of $424 million. The effective tax rate was a benefit of $1.8 million due to geographic mix and valuation allowance limitations. Overall, the results underscore near-term pressure from tariffs and mix, but the company is positioning for recovery through cost actions and new product offerings.