Hyster-Yale NYSE: HY said second-quarter results showed further signs of a gradual recovery in the lift truck market, with sequential gains in bookings, revenue, operating performance and cash flow. Management said, however, that customer delivery timing and production changes tied to tariff mitigation are expected to shift a larger portion of the recovery into the latter part of 2026.
Bookings totaled $680 million in the second quarter, up 17% from the first quarter and more than double the level reported in the second quarter of 2025. The company said this marked its fourth consecutive quarter of booking growth and its highest quarterly booking level in three years, driven primarily by the Americas.
Revenue was $813 million, a 2% sequential increase, as stronger order activity began to translate into higher shipments. Consolidated operating loss narrowed to $18 million, an improvement of about $10 million from the first quarter. Net loss was $32 million, including a $3 million non-cash valuation allowance related to Brazilian deferred tax assets.
Tariffs and timing weigh on recovery
Andrea Sejba, Hyster-Yale’s director of investor relations and treasury, said the lift truck business benefited from higher shipments, favorable pricing and lower employee-related expenses during the quarter. The results also included $35 million in tariff refunds, although that benefit was largely offset by unfavorable capitalized material costs and $10 million in higher gross tariff expense.
Rajiv Prasad, Hyster-Yale’s president and chief executive officer, said the company believes the first half of 2026 marked the financial low point of the current lift truck cycle. He said demand improved in the second quarter, but the company remains in the early stages of a recovery.
“While we are far from full recovery, the business is beginning to move in the right direction,” Prasad said.
The company is raising production rates to meet higher demand, but management said shipment growth will temporarily lag booking growth. Orders include both near-term demand and deliveries scheduled more than six months out, while production increases require time to move through the supply chain.
Prasad also cited changes to manufacturing plans resulting from tariffs. He told analysts that Hyster-Yale had initially intended to build certain trucks for North America in Europe, but shifted those production plans to North America after changes in April to Section 232 tariffs. He said the tariffs initially amounted to 25% of the cost of imported trucks and were subsequently reduced to 15% for imports from Europe.
Those changes have affected delivery timing, and Prasad said the company expects some revenue previously anticipated in the third quarter to shift into the fourth quarter. He added that some customers have requested later delivery dates as they assess truck placement and utilization in their own operations.
Cost actions and product portfolio initiatives
Management said pricing, sourcing and product-cost initiatives are expected to provide increasing benefits in the second half, though they are not expected to fully offset tariff-related costs. Hyster-Yale is relocating certain sourcing and production activities to the United States and other lower-tariff regions in an effort to reduce future exposure and create a more flexible supply chain.
The company also said its 2025 restructuring program captured about half of its anticipated annualized savings during the first half of 2026. Hyster-Yale continues to expect the program to generate approximately $40 million to $45 million in annualized savings.
Prasad said the company’s manufacturing footprint optimization projects remain on schedule and are expected to begin contributing meaningfully in the second half of 2026. As volumes recover, management expects the projects to provide approximately $15 million to $20 million of annualized benefits.
The company also highlighted demand for its value, standard and premium product offerings. Prasad said Hyster-Yale’s modular product platforms allow it to serve a wider range of applications and price points while using common platforms, components and manufacturing processes.
During the question-and-answer session, Prasad said booking growth has been relatively even across product lines, although demand has shown “a little bit more bend” toward standard and value trucks. He cited retail applications as an example where customers may not require premium equipment designed for heavier annual utilization.
Hyster-Yale said it has sufficient plant capacity for the current ramp-up, but expansion will require hiring and training workers as well as providing suppliers with adequate lead time. Prasad said the company is applying lessons from the COVID-era supply-chain disruption to keep the production ramp disciplined.
Bolzoni returns to profitability; cash flow improves
Bolzoni, Hyster-Yale’s attachment business, returned to profitability in the second quarter despite slightly lower revenue. Sejba said favorable product mix, lower freight costs and cost management more than offset the revenue decline.
Management said Bolzoni is pursuing growth through the integration of Valmar’s mast business, new attachment introductions and expanded camera vision systems. The company said these efforts are intended to expand Bolzoni’s addressable market and support long-term profitable growth.
Operating cash flow was positive $17 million in the second quarter, improving about $50 million from the first quarter despite continued losses. Sejba said the improvement reflected lower inventory and favorable changes in accrued liabilities after first-quarter annual incentive compensation payments.
Outlook calls for full-year operating loss
Hyster-Yale maintained its expectation for a moderate operating loss for full-year 2026. Management expects the most significant improvement to occur in the second half as production levels and shipments rise, supported by higher volume, pricing actions, manufacturing efficiency improvements and cost reductions.
Tariff-related costs and competitive pricing pressure are expected to moderate the pace of recovery. The company said it remains focused on converting orders into shipments, controlling working capital and generating cash.
Looking beyond 2026, Hyster-Yale said it expects trailing 12-month EBITDA to exceed pre-COVID levels in the second half of 2027, based on its current outlook. Management attributed that expectation to both a demand recovery and structural initiatives including portfolio expansion, restructuring, modular product platforms and manufacturing footprint optimization.
About Hyster-Yale (NYSE:HY)
Hyster-Yale Materials Handling, Inc is a global manufacturer and distributor of a wide range of industrial lift trucks, container handlers and aftermarket parts and services. Operating under the Hyster and Yale brand names, the company designs, engineers and assembles counterbalanced lift trucks, narrow-aisle trucks and specialty vehicles for clients in distribution, manufacturing, retail and warehousing.
The company's product portfolio includes electric, diesel and LPG-powered forklifts, as well as reach stackers, empty container handlers and terminal tractors.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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