Hyster-Yale Q3 2026 Earnings Call Transcript

Quartr
Provided by Quartr
November 6, 2026

Key Takeaways

  • Positive Sentiment: Third-quarter results improved sequentially: revenue rose 2% to $827 million, adjusted EBITDA returned to positive at $6 million, and operating and net losses narrowed. Bookings increased 45% year over year to $550 million, while backlog remained approximately $1.6 billion.
  • Positive Sentiment: Management expects fourth-quarter bookings to exceed both the prior-year quarter and Q3, with higher production and shipments driving sequential revenue and gross-margin improvement. Adjusted net income is expected to return to positive territory, excluding implementation costs.
  • Positive Sentiment: Hyster-Yale is targeting at least $100 million in annual cost reductions by 2029, on top of prior restructuring savings. The company expects some benefits to begin in 2027, though savings will build over time.
  • Negative Sentiment: The new initiatives are expected to cost at least $50 million to implement, with some expenses preceding savings. The company is also pausing its electric terminal tractor program, ending U.S. Big Truck production plans in Greenville, and discontinuing hydrogen-related development and production.
  • Neutral Sentiment: Management expects healthy demand and production in 2027, but says operating-profit improvement will lag the recovery because of cost pressures, competitive pricing, and the time required for growth initiatives to mature. It is accelerating investment in lithium-ion batteries and chargers as part of its focus on the core lift-truck business.
AI Generated. May Contain Errors.
Earnings Conference Call
Hyster-Yale Q3 2026
00:00 / 00:00

There are 6 speakers on the call.

Operator

Good day, and welcome to the Hyster-Yale, Inc. third quarter 2026 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad, and to withdraw your question, please press star then two. Please note that today's event is being recorded. I'd now like to turn the conference over to Andrea Sejba, Director of Investor Relations and Treasury. Please go ahead.

Speaker 1

Good morning, and thank you for joining Hyster-Yale's third quarter 2026 earnings call. Joining me today are Al Rankin, Executive Chairman, Rajiv Prasad, President and Chief Executive Officer, and Matt Cornell, our new Chief Financial Officer. We're pleased to welcome Matt to today's call. We will discuss our third quarter 2026 earnings release, which was issued yesterday. The release and a replay of this webcast will be available on the Hyster-Yale website. Today's call contains forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks are described in our earnings release and SEC filings. We will also discuss adjusted results, which we believe are useful supplements to GAAP financial measures. Reconciliations of adjusted results to the most directly comparable GAAP measures are available in our earnings release and investor presentation.

Speaker 1

Before turning the call over to Rajeev, I will briefly cover third quarter highlights. Third quarter 2026 results improved sequentially. Stronger bookings began to translate into higher shipments, and structural cost savings supported operating performance. Revenue increased 2% sequentially to $827 million, as higher shipments volumes more than offset lower part sales. Operating results improved by $10 million, driven by higher shipment volumes and lower employee-related expenses. These improvements more than offset $20 million of lower tariff-related recoveries compared with the second quarter. As a result, both operating loss and net loss narrowed compared to the second quarter of 2026. For the quarter, Adjusted EBITDA returned to positive at $6 million. Operating cash flow increased to $26 million, $10 million above the second quarter, which primarily reflects stronger earnings and improved working capital execution, particularly in accounts payable. Bookings were $550 million, up 45% from prior year.

Speaker 1

This was the fourth consecutive quarter of elevated bookings relative to the cyclical low point in 2025. Backlog remains steady at approximately $1.6 billion. With the overview of third quarter results, I will now turn the call over to Rajeev to discuss the market environment, our fourth quarter and longer-term outlook, as well as the actions we are taking to strengthen the business.

Speaker 2

Thank you, Andrea, and good morning, everyone. Third quarter performance showed further signs of the company's recovery. Most importantly, we are beginning to see stronger bookings convert to production and shipments. At the same time, our pricing, sourcing, and cost actions are helping us manage challenging cost environment. I will first discuss demand and fourth quarter outlook, then I will explain the structural actions we are taking to improve our competitive position, cost structure, and cash generation. Industry conditions have continued to improve from 2025, although demand varies by region and customer application. Deferred fleet replacement needs are converting into new equipment purchases. Customer acceptance of our value and standard product offerings continue to grow. As noted, third quarter bookings remain well above the cyclical low. Backlog held steady as production approximated shipment during the quarter. Together, they give us a solid base of demand as we increase production.

Speaker 2

Our product investments are a key reason for this momentum. They are broadening the portion of the market we can address. As customer demand shifted, recently introduced lighter intensity, lower-priced products helped offset lower sales of higher values, standard and premium counterbalance trucks. These expanded product offerings are not simply substitute for our previous models. They extend our reach into applications and price points where we historically had less coverage. They also help us win new customers and create opportunities to increase manufacturing scale over time. Looking ahead, we expect our value and standard offerings to continue supporting volume growth, profitability, and market share gains. This includes the 1 to 3.5 ton, the 4 to 9 ton, and the Big Truck product lines. Our objective is to match product capability and total cost of ownership more precisely to each application.

Speaker 2

We are also using modular and scalable product solutions, which reduce complexity across engineering, sourcing, and manufacturing. Building on this momentum, we expect fourth quarter bookings to exceed both the fourth quarter of 2025 and the third quarter of 2026. This is supported by improving industry conditions, anticipated market share gains, and broader customer acceptance of our expanded product portfolio. However, inflation, tariffs, geopolitical uncertainty, and increased competition remain important variables. Strong booking activity is expected to translate into meaningfully higher production and shipment volumes in the fourth quarter. Higher shipments are expected to drive sequential revenue growth. Increased production should also improve manufacturing absorption and operating efficiency. This is the key operating lever in our fourth quarter outlook. More volume moving through our plants is expected to improve the utilization of our people and facilities, and better absorb fixed manufacturing costs. Converting bookings into shipment is our priority.

Speaker 2

That is not automatic. During the third quarter, customer delivery schedules and production transitions slowed expected conversion. These transitions were associated with tariff mitigation and sourcing initiatives. They could continue to affect shipment timing. Our teams are focused on sequencing production, managing component availability, and coordinating deliveries. We are also closely managing delivery dates and product mix. This will help us convert the backlog efficiently, on schedule, and without compromising customer service. Based on these factors, we expect gross profit and gross margin to improve sequentially, primarily due to higher production and shipment volumes, improved manufacturing efficiencies, and the benefits of pricing, sourcing, and cost reduction actions. These benefits are expected to be partially offset by elevated tariff-related costs, inflation, and competitive pricing, particularly in South America and Europe. Operating results for the fourth quarter are expected to include anticipated implementation costs associated with the new programs I will discuss shortly.

Speaker 2

Excluding these costs, the same drivers expected to improve gross profit are expected to support stronger operating performance. As a result, adjusted net income is expected to be above the third quarter and return to positive levels. Alongside the expected fourth quarter earnings improvement, we remain focused on cash generation and working capital discipline. Our inventory and working capital progress provides a strong foundation as production and shipment increase. Priority is to have the right inventory to convert backlog into revenue while managing working capital. Looking to 2027, we expect demand and production levels to remain healthy. This is supported by gradually strengthening market conditions and our growth initiatives. It should drive volume and revenue growth. However, we expect operating profit improvements to be more gradual than the recovery in demand and production.

Speaker 2

The reasons are continued cost pressure, a competitive pricing environment, and the time required for strategic growth initiatives to mature. Our previously announced 2024 U.S. manufacturing footprint optimization projects remain on track to deliver increased operational benefit in 2027. These benefits are expected to help offset ongoing cost increases and support underlying product margins. They are not expected to translate fully into incremental margin expansion. Our 2025 restructuring program is progressing as planned, and we expect to realize the full benefit of $40 million-$45 million of savings by year-end 2026. Together with the completed Nuvera realignment, which delivered $15 million of savings in 2025, these programs have lowered our structural break-even point. This progress gives us a stronger base. It has also allowed us to identify additional opportunities to strengthen our business and improve our operation. These opportunities are driven by the market.

Speaker 2

The types and volumes of lift trucks customers demand have changed significantly. Customers want a broader mix of value, standard, and premium solutions with competitive lead times and strong route-to-market coverage. Regulatory requirements, tariffs, inflation, and shifting regional demand adds to these changes. To compete, we need a cost structure that performs across the cycle with a more selective use of capital and resources. We are continuing to adapt to the market and build a more focused and flexible operating model. In the fourth quarter of 2026, we launched a major set of projects to strengthen our cost structure, capital efficiency, and long-term competitiveness. Our modular and scalable product solutions have created new product opportunities and production efficiencies. Together with our previously announced restructuring plans, they provide the foundation for these projects.

Speaker 2

The projects should improve operations and better align our business with evolving market and regulatory requirements, including changes in the types and volumes of lift truck customers' demand. The projects are focused on five key areas. First, we are reshaping the product portfolio and route-to-market. Second, we are reducing manufacturing complexity and cost, including plant consolidation. Third, we are consolidating supporting facilities and activities. Fourth, we are simplifying the organizational structure. And fifth, we are reducing capital intensity. These five areas work together. A more focused portfolio reduces complexity across engineering, sourcing, and manufacturing. A simpler organization and footprint improves execution. Lower capital intensity helps convert more of our earnings improvements into cash. We are targeting at least $100 million of annual cost reduction at maturity, which is anticipated in 2029.

Speaker 2

These savings come from direct cost reduction and from mitigating future expense associated with higher volumes and inflation. This is important because it allows us to grow volumes while keeping our cost structure under control. The target is measured against 2026 results and is in addition to the benefits from our earlier program. These savings will build over time rather than arrive all at once. We expect some benefits to start in 2027 and the full run rate to be reached in 2029. The pace will depend on the timing of implementation, so we are sequencing the projects to capture benefits as quickly and as responsibly as we can. Achieving these savings requires investment upfront. Implementation costs are currently estimated at no less than $50 million over the duration of the programs. These costs may include severance, impairment charges, contract terminations, and other exit-related costs.

Speaker 2

Some costs will come ahead of savings, while others will be recognized as incurred. We continue to pursue opportunities to mitigate these costs. The first set of action to sharpen our focus on strengthening our core lift truck business, improving execution, and directing resources to the areas where we see the greatest opportunity to create long-term strategic and some financial value are the following difficult but necessary decisions. We are pausing the electric terminal tractor program globally and discontinuing our effort to establish Big Truck production in Greenville, North Carolina, in the U.S. We will continue to serve the U.S. market through our existing Big Truck manufacturing operations. Effective immediately, we are also discontinuing the development and production of hydrogen-related solutions, including the HydroCharge platform and associated fuel cell technology and engines.

Speaker 2

At the same time, we will continue to invest in and accelerate our lithium-ion battery and charger solutions, where we believe we can deliver greater value to our customers, dealers, and business. We will implement the remaining projects in stages through 2029. Some are underway. Others remain subject to final planning, legal, and regulatory requirements, consultation obligations, and customary approvals. As a result, the scope, timing, and financial effect of individual actions may change. We will update you as material plans, savings, and implementation costs are finalized. Beyond cost saving and cost mitigations, these programs are designed to strengthen cash generation. To preserve cash amid a slower-than-anticipated recovery, we expect 2026 capital expenditures of $50 million-$60 million. We plan to limit 2027 capital expenditure to $40 million-$50 million. Over time, a simpler portfolio, less manufacturing complexity, and lower capital intensity should also reduce working capital requirements.

Speaker 2

This supports our continued target of working capital at approximately 15% of revenue. Importantly, the cost programs are just one part of our broader company strategy. Our focus is on strengthening the core business, serving customers more effectively, and expanding our market reach. We are concentrating resources on product platforms, market segments, and commercial capabilities with the strongest strategic and financial potential. This includes modular and scalable lift truck solutions for lighter intensity and standard applications, together with broader sales coverage across the addressable market. The cost programs support that strategy by reducing complexity and creating a more efficient operating model. Alongside disciplined capital allocation and working capital management, these actions should support strong financial performance and business growth. Our objective is not simply to operate at a lower cost. It is to emerge as a stronger, more focused company, better positioned to pursue the opportunities with the greatest long-term impact.

Speaker 2

Our long-term priorities remain consistent. We are focused on converting bookings momentum into shipments so that stronger demand translates into revenue growth. As production increases, improved manufacturing efficiency should help us earn more from that growth. Our modular product platforms and broader market coverage expand the opportunities we can serve, while simpler operations and our cost reduction initiatives should strengthen profitability. We will support this progress by managing tariff exposure and maintaining discipline in working capital and capital allocation. That discipline is important to improve cash generation while preserving flexibility to support future growth. Together, these efforts support our objectives of 7% operating profit over the business cycle. With that, I'll pass the call over to Al for closing remarks before we open the lines for questions.

Speaker 3

Thank you, Rajeev. Having covered Hyster-Yale's earnings release details, I will step back and put the quarter in context. The third quarter showed meaningful sequential progress. We entered the fourth quarter with elevated bookings and a healthy backlog, and customers are responding well to our broader product portfolio. The recovery is advancing. At the same time, the pace of improvement remains affected by shipment timing, product mix, tariffs, and a competitive pricing environment. We are managing those factors carefully with a clear focus on turning market momentum into results. A cyclical recovery is not sufficient. The market has changed, and our operating model is changing with it. Customers are asking for different products at different price points with different availability and flexibility. The actions we announce today respond directly to those shifts. They have clear focus on the products, markets, and capabilities with the greatest potential.

Speaker 3

They are also designed to build a simpler, more efficient, and more resilient business, one that can perform more effectively at all points in the cycle. We recognize that some of these decisions are hard to make since they affect our employees and other stakeholders. We will carry them out with discipline while meeting our obligations to our employees, customers, and suppliers. Our objective is to strengthen Hyster-Yale for the long term in order to serve our customers well and create lasting value for our shareholders. Implementation costs, which we are working to minimize, will affect reported results as the work progresses. We will provide additional information as material plans are finalized. Our long-term vision of transforming the way the world moves materials from port to home remains. We intend to do that through our two promises to our customers. The first is to provide optimal customer solutions.

Speaker 3

The second is to provide exceptional customer care. The actions we are taking should strengthen our ability to keep both promises consistently. For our shareholders, the objective is clear. We expect Hyster-Yale to emerge from these actions stronger, more cost-efficient, and more focused on our core business. Booking momentum and broader market coverage should reinforce this. Overall, we expect stronger profitable growth. Manufacturing and organizational improvements should help us earn more from that growth. Disciplined cash management and focused capital allocation should help turn those earnings into greater returns on capital employed. Together, we believe these drivers will support improved financial results in 2027 and 2028, and over time, our objective of 7% operating profit over the business cycle, as well as sustainable long-term shareholder value. That concludes our prepared remarks. We'll now open the line for questions.

Operator

Thank you. We'll now begin the question-and-answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, we ask that you please pick up your handset before pressing the keys. To withdraw your question, please press star then two. Today's first question comes from Chip Moore at Roth Capital Partners. Please go ahead. Hello, Mr. Moore, your line is open.

Speaker 4

Sorry, can you hear me now?

Operator

We can hear you now. Yes, sir.

Speaker 4

Awesome. On mute. Sorry about that. Thanks, everybody. Thanks for taking the question. I wanted to ask on the demand environment, particularly around some of these deferrals on fleet replacement. Can you expand on sort of the pent-up demand you're seeing out there and some of the implications on trajectory next year?

Speaker 2

Yeah, Chip, this is Rajeev. As I think we discussed last time, we see continued growth with certain customers of their fleet age, as they've retained trucks longer than you would normally expect them to retain, mainly because I think our customers were unsure of the utilization and also kind of trying to manage their internal budgets. We're coming to the end of that. We've had good bookings in the third quarter. As you know, our third quarter is normally weaker in bookings because of July and August when there's a slowdown in the industries that we serve. But it came back pretty well in September, and then October's been also good. I think we still feel good about the market and the market potential going into the rest of this year and looking ahead into next year. Our pipelines look pretty strong.

Speaker 4

Thanks, Rajeev. You also talked a little bit about just sort of managing the timing of deliveries and some of the puts and takes there. Maybe talk about that a little bit more, about what you're watching closely.

Speaker 2

Yeah, I think there's been a little bit more dynamics on that customers have asked for us, especially through that third quarter, to delay some deliveries, as they have kind of made some changes to their own kind of infrastructure. We've had that. We continue to see some of that. That's been one factor. The other factor's been, as we said in our discussion, that we are sourcing trucks from different locations, and we're transitioning production. What the modular and scalable product allows us to do is build this product in multiple locations. Based on some tariff changes, we've changed the location of where they're built, and therefore, some of the product require increased logistics, particularly across the ocean.

Speaker 2

Again, timing of that's been a little difficult, especially when there's quite a bit of, again, I'll call it dynamics in the ocean freight market, in availability particularly. You can imagine the Middle East has been very difficult, and we still have a lot of deliveries to make to the Middle East to our dealers and customers. But also, for instance, from kind of some of the China to North America routes are still very busy. We're coming to the end of that because it's really driven by the Christmas season, and so we should see that ease off. But we've seen more difficult kind of availability on some of these lines.

Speaker 4

Gotcha. Great. Very helpful.

Speaker 2

Yeah.

Speaker 4

Yeah. No, thanks, Rajiv. Maybe if I could sneak one more in. Simplifying the portfolio makes a lot of sense and never easy actions, but those savings are substantial. Maybe flipping the other way, I think you talked about, you called out investing or accelerating on the lithium and charging side. Just talk about that opportunity a little bit. Thank you.

Speaker 2

Yeah. I mean, we continue to see growth of electric trucks pretty much globally as a share of the market, especially, I would say, the counterbalance trucks, and we're starting to see also the Big Trucks electrify. In the early stages of these, we didn't have our own battery and charger solutions, and what we've seen is customers struggle with the integration of these systems. So when you have a truck which has quite a lot of software these days, then you have the battery with the battery management system, which also has a lot of controls, and then you have the chargers, smart chargers these days, which also has a lot of software. You've got to keep these systems synchronized, and when you have two or three different suppliers providing these things, we've certainly seen customers struggle to keep them fully integrated and synchronized.

Speaker 2

When they're not, then you get truck downtimes, because the truck's on charge. We've seen an increasing case of that, and towards the end of last year, we decided that we needed to solve these issues for our customers, and the best way for us to do that is bring it to a central point. So we're doing, of course, we do all the electronics and software on our trucks. Now we're developing batteries systems, and especially all the control systems around it ourselves. And again, we have partners for the charging system. So the plan is to be able to offer integrated solutions moving forward with a single point of service and management of the infrastructure. And we think customers are very happy about that. Our dealers are feeling good about that, as they've struggled to maintain these type of systems in the field.

Speaker 2

We think it's a very positive move, and we expect this to be a good growth part of the business over the next few years.

Speaker 4

Thanks very much.

Operator

Thank you. As a reminder, to ask a question, please press star then one. Our next question comes from Ted Jackson at Northland Securities. Please go ahead.

Speaker 5

Okay. Thanks very much. Morning, everybody, or afternoon.

Speaker 2

Good afternoon, Ted.

Speaker 5

Morning.

Speaker 2

Morning

Speaker 5

I got a whole bunch of questions. I would like to jump back in on the production shifts. The revenue number for the quarter, obviously progress was shown, but it was a little light relative to expectations, and a lot of it coming from North America. You have commented that you had some headwinds with regards to delivery schedules from your customers, and then some headwinds with regards to shifting some production to different locations to bring tariffs down. Can you kind of talk about maybe size, the impact of each of those? And then on the latter, with regards to the shifting, if you would, of production at different sites and those kind of issues, do you see that headwind continuing into the fourth quarter and kind of limiting your ability to grow, or do you feel like you have got that under control at this point?

Speaker 5

That is my first, kind of multiple part question.

Speaker 2

Yeah. Ted, maybe if I could take the first one and kind of look at. The revenue was a little under our expectations, and it was mostly in North America, and there are three factors there. The first factor is shipped-in trucks, and as I said, there were issues about getting freight passage for some trucks. We found it difficult to time that perfectly, and those trucks basically are arriving now, early in the fourth quarter. As I said, the Christmas kind of peak is easing off, so we are able to get but easier now in November, and particularly in November. We feel good that that issue is mostly resolved. I would say that was about a third of the issues.

Speaker 2

The other third was, maybe a little bit more than a third, was customers asking for deliveries to be really kind of delayed from the third quarter into the fourth quarter. Those trucks are ready, and they'll be installed as soon as. They're already installed. Some of those are already being installed. The last, just under a third, would be some production that's held up because of some component availability. One particular area we had concerns in the quarter was around our electronic suppliers. There was a shortage of certain chips and boards. We're working to get through that. We feel that we've eliminated most of those issues, at least for the fourth quarter. There's still work going on moving forward, but the situation's improving. That's the way I would kind of quantify it.

Speaker 5

Okay. That was great. My next thing would be just going over to Bolzoni, and I know it's not the biggest topic for these types of calls, but can you give a little more color in terms of the revenue there, like was kind of where Bolzoni seems to always sort of roll in, but the margin was just way off. Just kind of what was it that pushed the margins in Bolzoni down, and is that kind of just a blip with regards to the third quarter, or is that something that we should take into account as we think going forward?

Speaker 2

No, I think that was a blip. I think it was just a mix of. If you look at Bolzoni has two types of businesses. They have what you would call the OEM business. These are, and of course, Hyster-Yale is an OEM for Bolzoni, where we buy things like cylinders, transmissions, and axles from Bolzoni, and more straightforward systems that go on the mast, like carriages and forks. Those are lower margin business. Then you have the attachment business. These are the attachments that allow you to handle paper rolls or kind of beverage pallets or kind of appliances. Those are much more higher margin, and just the margin mix was more towards the OEM type business in the third quarter, and we will see that ease in the fourth and then become more normal in 2027. It's just been very lumpy.

Speaker 2

The OEM, especially in Europe, some of our competitors have been taking a lot of downtime, especially our German competitors and a Japanese competitor who produces in Europe as well. That has created a little bit of lumpiness in the OEM shipments.

Speaker 5

Okay. Then my last one, kind of with regards to just kind of model and financials, and I do have one more just to kind of that is a little more fun. But on the SG&A decline, which was also somewhat substantial. I believe you guys mentioned that a lot of it was compensation. Is that just like a stock comp issue, or is that part of your efficiency efforts and restructurings that we could see that kind of as a lower expense structure on a go-forward basis?

Speaker 2

Yeah. So Ted, we took quite a decent size action towards the end of 2026 to reduce our SG&A headcount. It was in the tune of just over 500 people. We stated that we would see a $40 million-$45 million cost reduction through the year. I think that has matured as we expected. We will take some additional, as we have said, because of the suspension of the fuel cell development, our electric terminal tractor, and our plan to move Big Truck manufacturing into North America, and there will be some more action related to those, which we have also announced. Those are the ones that we have taken so far, and there will be others in the future.

Speaker 5

A lot of that reduction was actually structural?

Speaker 2

Yeah.

Speaker 5

Great. One that's probably a little more fun for you guys, just kind of thinking about the lift truck business and the mix between the light and the heavy, because the new modular trucks and the area it's getting it into, and the markets it's getting you into, and the growth that it's driving, maybe you could talk and give us some kind of sense in terms of the mix between light and heavy at a unit level, and how that's changed, some way to give us some color on the growth you're seeing with those modular smaller trucks. I mean, you've spent many, many years positioning the company for this, and now it's coming through.

Speaker 2

Yeah

Speaker 5

Just a discussion on the success you're having there, maybe with some numbers behind it, how you see it trending out in the go-forward. Thanks.

Speaker 2

Yeah. Ted, we think, if we concentrate on applications, what the application actually requires, we feel the center of the market is around our, what we call our standard configuration. We're starting to see, as we've analyzed the market more, that the quantity of low-intensity application is very high. The premium applications are very specialized. I'll give you some examples of each. If you think about any of the big box store, let's say Lowe's, Home Depot, Sam's Club, they really need the low-intensity product because the average hours our trucks do in a Lowe's store is around 700 hours a year. We know that because we have telemetry on all those trucks. A medium application is, I would say, light manufacturing.

Speaker 2

If you think about one of the automotive tier 1 suppliers, someone like Lear or Magna, they run a couple of shift operation, but the actual material handling intensity isn't as high as, let's say, the automotive guys. They need a more standard type of product. Those guys typically do about 1,400, 1,500 hours a year with the lift trucks. Then you've got high intensity, and a good example of that is paper manufacturing with, let's say, International Paper. Those guys could be doing 3,000 to 4,000 hours a year with those trucks. Those trucks only shut down to refuel because those guys are running at three-shift operations in a hot and humid environment with particles in the air, and their needs are very different to a Lowe's store. Hopefully that kind of provides a little bit of color.

Speaker 2

In revenue terms, we still think that the standard part of the market is the biggest. Then, certainly in North America, we think the premium is next in revenue, and then the kind of the low intensity. Elsewhere in the world, if I take Southeast Asia, that is a very low-intensity market because the productivity needs are very different, apart from very specialized customers. Standard would be next, and premium is a very small part of the market. So, hopefully that gives you a sense of, both by geography and application, how these are really targeted. In terms of our own growth, we are seeing high growth in both the low intensity and the standard product line, while maintaining our customers for the premium truck.

Speaker 5

Okay. All right. Thanks, Rajeev.

Operator

Thank you. That does conclude our question and answer session. I would like to turn the conference back over to the management team for any final remarks.

Speaker 1

Well, thank you for your questions today. We will now conclude our session. A replay of today's call will be available on the Hyster-Yale website, and the transcript will be posted as well. If you have any follow-up questions, please contact me directly. My contact information is included in the earnings release. Thank you, and have a great day.

Operator

Thank you, ma'am. This does conclude our conference call for today. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

Powered by Quartr