Hyster-Yale 2025 Q2 Earnings Sharp Net Income Drop of 121.8%

Hyster-Yale (HY) reported its fiscal 2025 Q2 earnings on August 5, 2025, with the company swinging to a loss of $0.79 per share from a profit of $3.62 per share in the prior year quarter, representing a dramatic 121.8% negative change. The results fell short of expectations and signaled ongoing challenges in the business environment.

Revenue

Hyster-Yale’s total revenue for the second quarter of 2025 dropped by 18.1% to $956.60 million, compared to $1.17 billion in the same period the previous year. The decline was driven by lower shipments and pricing pressures, with the core lift truck business contributing $904.20 million. The Bolzoni segment added $90.60 million, while eliminations reduced the total by $38.20 million.

Earnings/Net Income

The company reported a net loss of $13.40 million in Q2 2025, representing a 121.0% deterioration from the $63.90 million net income in Q2 2024. The earnings per share shifted from a profit of $3.62 to a loss of $0.79, reflecting a severe contraction in profitability due to increased product costs and operational challenges.

Price Action

Hyster-Yale’s stock edged up slightly by 0.96% on the latest trading day, but it declined by 0.33% over the previous full week and 0.80% month-to-date, illustrating mixed near-term investor sentiment.

Post-Earnings Price Action Review

A strategy of buying Hyster-Yale shares following a quarterly revenue increase and holding for 30 days generated a compound annual growth rate (CAGR) of 11.71%, underperforming the benchmark by 3.87 percentage points. While the approach had a maximum drawdown of 0.00% and a Sharpe ratio of 0.26, indicating a low-risk profile, the stock’s 44.29% volatility underscores its high beta nature and sensitivity to broader market swings.

CEO Commentary

CEO of Hyster-Yale emphasized the significant challenges in Q2 2025, including rising product costs, reduced shipments, and pricing pressures. These factors contributed to a sequential decline in operating profit. The CEO expressed cautious optimism, stating that the company is focused on disciplined cost control, proactive pricing actions, and strategic realignment to navigate the cyclical downturn and mitigate the impact of tariff uncertainties and global demand volatility.

Guidance

The company expects modest sequential revenue growth in Q3 2025 but anticipates a moderate decline in operating profit compared to Q1 2025, primarily due to the lag in addressing tariff-related costs. For the full year 2025, Hyster-Yale forecasts lower revenues, production levels, and profits compared to the robust performance in 2024, with potential further deterioration from ongoing tariff uncertainties and weaker demand, particularly in the second half of the year.

Additional News

In the three weeks preceding the earnings report, Hyster-Yale announced a strategic realignment of its Nuvera fuel cell business, aiming to boost short-term profits and establish a long-term foundation for growth. Additionally, the company increased its quarterly dividend by one cent to 36 cents per share, reflecting a small but meaningful step in returning value to shareholders. In April 2025, Hyster-Yale also authorized a $50 million stock repurchase program, signaling management’s confidence in the company’s long-term prospects despite the current challenging operating environment.