Hyster-Yale Reports 18.1% Revenue Decline in Q2 2025, Operating Losses of $8.5 Million

Hyster-Yale, Inc. reported a significant decline in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. The company recorded revenues of $956.6 million for the second quarter, down 18.1% from $1.168 billion in the same period last year. For the first six months, revenues decreased by 16.1% to $1.867 billion compared to $2.225 billion in 2024. The decline was attributed primarily to reduced unit volumes and a shift towards lower-priced lift trucks, particularly in the Americas and EMEA regions, amid ongoing economic uncertainty.

The company's gross profit also suffered, falling to $168.2 million in the second quarter from $259.3 million a year earlier, representing a 35.1% decrease. For the first half of 2025, gross profit was $345.9 million, down 30.1% from $495 million in the prior year. Operating losses were reported at $8.5 million for the second quarter, a stark contrast to the $95.6 million profit recorded in the same quarter of 2024. The company attributed these losses to lower gross profit margins, increased material and freight costs, and $15.7 million in restructuring and impairment charges related to the strategic realignment of its Nuvera Fuel Cells business.

In terms of strategic developments, Hyster-Yale completed the acquisition of a manufacturing business in Italy for $2.6 million in May 2025, which is expected to enhance its Bolzoni segment. Additionally, the company merged Nuvera into its Hyster-Yale Materials Handling (HYMH) segment to streamline operations and improve profitability. This restructuring is anticipated to yield annualized cost reductions of $15 to $20 million starting in the second half of 2025.

Operationally, Hyster-Yale's distribution network consisted of approximately 270 independent dealers as of June 30, 2025. The company reported a backlog of $1.7 billion, down from $1.9 billion at the end of the first quarter, indicating that shipments exceeded bookings during this period. The company’s total assets increased to $2.075 billion from $2.029 billion at the end of 2024, while total liabilities decreased slightly to $1.512 billion.

Looking ahead, Hyster-Yale anticipates continued challenges due to tariff impacts and reduced demand in the second half of 2025. The company is implementing proactive initiatives, including price adjustments and cost optimization programs, to mitigate these effects. Despite the current economic uncertainties, management remains focused on maintaining operational efficiency and preparing for potential market recovery, with expectations of modest sequential growth in revenue and operating profit in the third quarter of 2025.