Forward-Looking Analysis
Wall Street analysts project Hyster-YaleHY-- (HY) will report a significant financial turnaround in 2026, transitioning from deep losses to profitability. For the full year 2026, consensus estimates forecast revenue of $3.65 billion, representing a modest 0.47% decline from prior periods, while net income is expected to reach -$99.2 million. Earnings Per Share (EPS) for the year is estimated at -$2.83, with a narrow range between -$2.74 and -$2.82 across five analysts. This negative EPS reflects the drag from recent restructuring charges and cyclical demand weakness.
Looking further ahead, analysts anticipate a strong recovery in 2027, with revenue forecast to grow 8.56% to $4.0 billion and net income turning positive at $38.2 million. By 2028, revenue is projected to reach $4.5 billion (+21.89% growth), with net income expanding to $79.3 million and EPS hitting $4.43. Despite this long-term growth trajectory, HY’s forecast annual revenue growth rate of 6.57% trails both the US Farm & Heavy Construction Machinery industry average of 7.17% and the broader US market average of 13.77%.
Return metrics present a mixed outlook. Return on Equity (ROE) is forecast to be strong at 20.98% in four years, indicating efficient capital generation. Conversely, Return on Assets (ROA) is expected to remain low at 4.61%, significantly below the industry average of 17.48%. The consensus price target stands at $45.00, implying 34.4% upside from current levels, though the stock currently holds a Zacks Rank #3 (Hold). The sustainability of the stock’s performance will largely depend on management’s ability to execute cost reductions and capitalize on the expected demand recovery in mid-2026.
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Historical Performance Review
Hyster-Yale’s 2026Q1 results demonstrated resilience despite a challenging macro environment. The company reported consolidated revenues of $795.20 million, missing the Zacks Consensus Estimate by 9.44% and falling short of the $910.4 million recorded in the year-ago period. Despite the revenue miss, Hyster-Yale delivered an earnings surprise of +8.89%, posting a loss of $1.64 per share against a consensus estimate of a $1.8 loss. This performance contrasts with Q1 2025, where EPS was $0.49. Gross profit for the quarter was recorded at $124.80 million, while net income stood at -$30.30 million. Although the company missed revenue targets, it topped EPS estimates for the first time in four quarters, signaling potential margin stabilization amidst volume declines.
Additional News
Hyster-Yale announced it will release its Second Quarter 2026 financial results after market close on Tuesday, August 4, 2026, with a conference call scheduled for August 5 at 11:00 AM ET. In May 2026, the Board of Directors increased the quarterly cash dividend from 36 cents to 36.5 cents per share. This follows a strategic restructuring plan announced in November 2025, aimed at optimizing cost structures amid low industry volumes. The plan involves reducing the global workforce by approximately 575 employees, resulting in a one-time pre-tax charge of $21 million in Q4 2025. These actions are expected to generate $40–$45 million in annualized cost savings beginning in Q1 2026, positioning the company for enhanced profitability when industry volumes recover. The company also reported that Q1 2026 bookings strengthened by 7% sequentially, signaling early stabilization following the cyclical low in Q3 2025. Additionally, Hyster-Yale has expanded its lineup of configurable, high-capacity electric forklifts to meet evolving customer needs.
Summary & Outlook
Hyster-Yale’s financial health is currently constrained by cyclical headwinds and recent restructuring costs, evidenced by projected negative earnings for 2026. However, the company is actively improving its cost structure, with anticipated annualized savings of $40–$45 million starting in Q1 2026. Growth catalysts include a projected demand recovery in mid-2026 and strong long-term revenue growth forecasts reaching $4.5 billion by 2028. Risk factors include slower-than-industry revenue growth and low return on assets. Given the transition from losses to profitability and the strategic cost reductions, the outlook is cautiously neutral-to-bullish for the medium term, contingent on successful execution of the restructuring and sustained booking improvements.
