HY · Hyster-Yale Materials Handling, Inc.

Hyster-Yale reported Q1 2026 results showing revenues of $795 million, a 13% decline from $910 million in Q1 2025, primarily driven by a customer shift to lighter-duty, lower-priced truck configurations and reduced shipments of higher-priced core counterbalanced trucks. Pricing actions and foreign exchange partially offset the decline. The company posted an adjusted operating loss of $26 million, compared to a $22 million profit last year, with approximately $30 million in gross tariff costs contributing significantly, alongside margin compression from the product mix shift. Partial offsets included Americas pricing actions, higher capitalized material costs, and lower employee-related costs from 2025 restructuring. Net loss was $31 million GAAP and $29 million adjusted. Management highlighted seasonally higher Q1 cash usage of $33 million, in line with patterns, with working capital improving $99 million year-over-year due to $126 million inventory reduction excluding FX and tariffs. Liquidity remains solid with $82 million cash on hand and $247 million unused borrowing capacity, though net debt rose to $424 million. Bookings improved to $580 million unit volume, up 7% from Q4 2025, with $1.4 billion unit value backlog increasing sequentially but below optimal levels. For full year 2026, the company expects sequential improvement, first-half losses, and second-half profitability driven by bookings, backlog recovery, and cost actions including pricing, sourcing, and product-cost reductions. Tariffs, including additional Section 232 duties, remain a headwind with costs expected to peak in Q2 before mitigations strengthen. Operating cash flow is projected moderately below 2025 levels, with modest full-year operating profit anticipated amid stabilizing demand in Americas and sequential EMEA improvement.