Hyster-Yale 2025 Q1 Earnings Misses Targets with Net Income Plunging 83%

Hyster-Yale (HY) reported its fiscal 2025 Q1 earnings on May 6th, 2025. The company experienced a significant downturn in its financial performance, with net income plummeting by 83% to $8.70 million compared to $51.80 million in the same quarter of the previous year. Revenue also dropped by 13.8% to $910.40 million, down from $1.06 billion in Q1 2024. The earnings per share (EPS) declined sharply from $2.97 to $0.49. The company’s guidance points to modest sequential revenue growth in Q2 2025, but overall 2025 performance is expected to remain below 2024 levels. Hyster-Yale anticipates cost-saving initiatives and market stabilization to play crucial roles in its recovery.

Revenue

Hyster-Yale's total revenue declined by 13.8%, reaching $910.40 million in Q1 2025, compared to $1.06 billion in Q1 2024. The lift truck business was the largest contributor with $864.40 million, while Bolzoni generated $80.30 million. Nuvera did not contribute any revenue. After accounting for eliminations of $34.30 million, the consolidated revenue stood at $910.40 million.

Earnings/Net Income

Hyster-Yale's EPS experienced a significant decline of 83.5%, dropping to $0.49 in 2025 Q1 from $2.97 in 2024 Q1. The net income also fell sharply, decreasing by 83.2% to $8.70 million from $51.80 million in the previous year. The substantial drop in EPS reflects the challenging market conditions.

Price Action

The stock price of Hyster-Yale increased by 1.58% during the latest trading day, rose by 3.47% over the past week, and climbed 9.42% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Hyster-Yale shares following a revenue increase and holding for 30 days yielded a 4.21% return, substantially underperforming the benchmark's 83.12% return. This approach is characterized by moderate risk and volatility, as evidenced by a Sharpe ratio of 0.06 and a maximum drawdown of -18.10%. The strategy's underperformance highlights the challenges faced in achieving a favorable risk-return profile, with the modest gains failing to compensate for the inherent risks. Investors considering this strategy should weigh the potential returns against the observed volatility and risk factors.

CEO Commentary

Hyster-Yale's CEO attributed the revenue and profit declines to decreased demand and bookings in the lift truck market during the latter half of 2024. Despite these challenges, the CEO highlighted strategic initiatives aimed at improving profitability, such as the realignment of the Nuvera fuel cell business and the integration of energy solutions. The CEO expressed cautious optimism about an anticipated recovery in market demand later in 2025 and emphasized the company's focus on operational efficiencies and customer care.

Guidance

Hyster-Yale anticipates modest sequential revenue growth in Q2 2025, though consolidated operating profit is expected to decline moderately from Q1 2025 levels. For the full year, revenues, production, and profits are projected to fall short of 2024's strong results. Capital expenditures are forecasted between $40 million and $65 million. Success in achieving these goals hinges on proactive initiatives and market stabilization.

Additional News

Hyster-Yale has announced a strategic business realignment, focusing on its Nuvera fuel cell operations. The realignment aims to boost near-term profits and develop integrated energy solutions at the Billerica facility, enhancing battery and charger programs. This initiative is expected to achieve direct annualized cost reductions of $15 to $20 million starting in the second half of 2025, with further indirect savings by absorbing Nuvera resources. These changes align with Hyster-Yale's broader strategic vision of transforming its core lift truck business while exploring new growth opportunities in energy management and automation through its HYMH and Bolzoni subsidiaries.