What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-05-06 compared with 2024-11-05 · 183 added, 205 removed, 174 unchanged (69% of the section changed)

Management's Discussion and Analysis of Financial Condition and Results of Operations

(Tabular Amounts in Millions, Except Per Share and Percentage Data)

(Dollars in Millions, Except Per Share Data)

Hyster-Yale, Inc.

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The Company's solutions include attachments and hydrogen fuel cell power products, telematics, automation and fleet management services, as well as a variety of other power options for its lift trucks.

On May 31, 2024, the Company changed its corporate name to Hyster-Yale, Inc.

and the Company's wholly owned operating subsidiary, Hyster-Yale Group, Inc., changed its corporate name to Hyster-Yale Materials Handling, Inc.

The Company, through HYMH, designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally, primarily under the Hyster ® and Yale ® brand names, mainly to independent Hyster ® and Yale ® retail dealerships.

The Company's distribution network consisted of approximately 350 independent dealers as of September 30, 2024.

The Company's distribution network consisted of approximately 310 independent dealers as of March 31, 2025.

The materials handling business historically has been cyclical because the order rate for lift trucks fluctuates depending on the economic activity level in the various industries and countries its customers serve.

Lift trucks and component parts are manufactured in the United States, Northern Ireland, China, Mexico, the Netherlands, Brazil, the Philippines, Italy, Japan and Vietnam.

As of September 30, 2024, the Company owned a 90% majority interest in Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd.

("Hyster-Yale Maximal").

Lift trucks and component parts are manufactured in the United States, Northern Ireland, China, the Netherlands, Mexico, the Philippines, Brazil, Japan, Italy and Vietnam.

The Company owned a 90% majority interest in Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd.

("Hyster-Yale Maximal"), a manufacturer of low-intensity and standard lift trucks and specialized material handling equipment.

Hyster-Yale Maximal also designs and produces specialized products in the port equipment and rough terrain forklift markets.

The Company operates Bolzoni S.p.A.

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Through the design, production and distribution of a wide range of attachments, Bolzoni has a strong presence in the market niche of lift truck attachments and industrial material handling.

In July 2024, Bolzoni acquired 60% of the equity interest of a machining business in Italy for an aggregate purchase price of $2.2 million.

Bolzoni maintains an option to purchase the remaining 40% of the equity interest of the machining business for a period of five years, subject to certain terms and conditions.

The results of operations of this acquired business have been included in the Bolzoni segment since the date of acquisition and are not material to the Company's results of operations, financial position or cash flows.

The Company operates Nuvera Fuel Cells, LLC ("Nuvera").

As of March 31, 2025, the Company operated Nuvera Fuel Cells, LLC ("Nuvera").

Nuvera is an alternative-power technology company focused on the design, manufacture and sale of hydrogen fuel cell stacks and engines.

In April 2025, the Company announced a strategic business realignment of Nuvera's operations.

See Note 15, Subsequent Events , of the Company's condensed consolidated financial statements for further discussion.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

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The results of operations for the Company were as follows:

THREE MONTHS ENDED Favorable / (Unfavorable) NINE MONTHS ENDED Favorable / (Unfavorable)

SEPTEMBER 30 SEPTEMBER 30

2024 2023 % Change 2024 2023 % Change

THREE MONTHS ENDED Favorable / (Unfavorable)

2025 2024 % Change

Americas $ 698.9 $ 769.7 (9.2) %

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$ 910.4 $ 1,056.5 (13.8) %

THREE MONTHS ENDED Favorable / (Unfavorable) NINE MONTHS ENDED Favorable / (Unfavorable)

SEPTEMBER 30 SEPTEMBER 30

2024 2023 % Change 2024 2023 % Change

THREE MONTHS ENDED Favorable / (Unfavorable)

2025 2024 % Change

Gross profit (loss)

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$ 156.2 $ 151.9 (2.8) %

Restructuring charges (reversal)

Americas $ 0.7 $ — n.m.

EMEA (1.3) — n.m.

JAPIC 0.8 — n.m.

Lift truck business 0.2 — n.m.

Bolzoni — — n.m.

Nuvera — — n.m.

Eliminations — — n.m.

$ 0.2 $ — n.m

Operating profit (loss)

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Interest expense $ 7.7 $ 8.9 13.5 %

Other (income) expense $ (3.4) $ (3.6) (5.6) % $ (8.6) $ (7.5) 14.7 %

Other income $ (3.2) $ (3.1) 3.2 %

Net income attributable to stockholders $ 8.6 $ 51.5 (83.3) %

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The dollar value of bookings and backlog is calculated using the current unit bookings and backlog and the forecasted average sales price per unit.

As of September 30, 2024, substantially all of the Company's backlog is expected to be sold within the next twelve months.

THREE MONTHS ENDED NINE MONTHS ENDED

SEPTEMBER 30 SEPTEMBER 30

2024 2023 2024 2023

As of March 31, 2025, substantially all of the Company's backlog is expected to be sold within the next twelve months.

THREE MONTHS ENDED

Bookings, approximate sales value $ 590 $ 520

Backlog, approximate sales value $ 1,910 $ 3,060

Third Quarter of 2024 Compared with Third Quarter of 2023

The following table identifies the components of change in revenues for the third quarter of 2024 compared with the third quarter of 2023:

First Quarter of 2025 Compared with First Quarter of 2024

The following table identifies the components of change in revenues for the first quarter of 2025 compared with the first quarter of 2024:

HY Americas EMEA JAPIC

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Increase (decrease) in 2025 from:

Price 18.0 20.1 (1.9) (0.2)

Other 6.7 5.6 0.6 0.5

Parts 0.2 0.4 (0.5) 0.3

Unit volume and product mix (162.7) (102.4) (70.0) 9.7

Foreign currency (11.3) (5.0) (5.3) (1.0)

Bolzoni revenues 4.8 — — —

Nuvera revenues (1.2) — — —

Eliminations (4.1) — — —

2024 $ 1,016.1 $ 771.1 $ 145.0 $ 51.3

Revenues increased 1.5% to $1,016.1 million in the third quarter of 2024 from $ 1,001.2 million in the third quarter of 2023.

The increase in Lift Truck revenues was primarily due to improved pricing, higher fleet services and other revenues and a favorable sales mix shift in 2024 compared to 2023.

These increases were partially offset by a decline in unit volume, mainly in EMEA, which more than offset unit volume increases in the Americas.

Bolzoni's revenues increased in the third quarter of 2024 compared with the third quarter of 2023, primarily due to higher sales volumes.

The following table identifies the components of change in operating profit (loss) for the third quarter of 2024 compared with the third quarter of 2023:

Operating Profit (Loss)

HY Americas EMEA JAPIC

2023 $ 58.6 $ 65.4 $ 2.4 $ ( 2.7 )

Increase (decrease) in 2024 from:

Lift truck gross profit (13.4) (1.4) (9.9) (1.8)

Lift truck selling, general and administrative expenses (13.0) (11.3) (2.1) 0.4

Nuvera operations (2.4) — — —

Bolzoni operations 3.3 — — —

2024 $ 33.1 $ 52.7 $ (9.6) $ (4.1)

The Company recognized operating profit of $33.1 million in the third quarter of 2024 compared with $58.6 million in the third quarter of 2023.

The decrease in Lift Truck operating profit was primarily due to lower gross profit mainly from higher freight costs, lower sales margins and other cost inflation-related variances.

These decreases were partially offset by higher pricing of $18.0 million, mainly in the Americas.

Additionally, selling, general and administrative expenses were higher, primarily related to higher sales, marketing and information technology costs, as well as increased employee-related costs, including incentive compensation.

Operating profit in the Americas decreased to $52.7 million in the third quarter of 2024 compared with $65.4 million in the third quarter of 2023, mainly as a result of higher selling, general and administrative expenses, primarily due to increased employee-related costs, including incentive compensation and higher sales, marketing and information technology costs.

The Americas's gross profit decreased modestly, primarily due to higher freight costs and cost inflation-related variances.

These decreases were partially offset by higher pricing of $20.1 million, higher unit volumes and a shift in sales to higher-margin lift

trucks, mainly as a result of increased sales of higher capacity models within Class 1 and 4 lift trucks and higher-priced Class 5 internal combustion lift trucks.

EMEA recognized an operating loss of $9.6 million in the third quarter of 2024 compared with operating profit of $2.4 million in the third quarter of 2023.

The decrease was primarily from lower gross profit from lower unit volume and pricing along with a shift in sales to lower-margin lift trucks, combined with higher selling, general and administrative expenses.

The operating loss in JAPIC increased to $4.1 million in the third quarter of 2024 from $2.7 million in the third quarter of 2023, mainly due to lower unit volumes.

Bolzoni's operating profit increased to $6.2 million in the third quarter of 2024 compared with $2.9 million in the third quarter of 2023, primarily due to favorable unit volumes, sales of higher-margin units and manufacturing efficiencies.

The operating loss at Nuvera increased in the third quarter of 2024 compared with the third quarter of 2023, mainly due to lower revenues and an increase in selling, general and administrative expenses, primarily related to higher utility and lease expenses.

In addition, Nuvera recognized a $0.2 million severance charge in the third quarter of 2024.

The Company recognized net income attributable to stockholders of $ 17.2 million in the third quarter of 2024 compared with $ 35.8 million in the third quarter of 2023.

The decline was primarily the result of lower operating profit in addition to a higher effective income tax rate in the third quarter of 2024 compared with the third quarter of 2023.

See Note 5 of the Company's condensed consolidated financial statements for further discussion of the Company's income tax provision.

First Nine Months of 2024 Compared with First Nine Months of 2023

The following table identifies the components of change in revenues for the first nine months of 2024 compared with the first nine months of 2023:

HY Americas EMEA JAPIC

2023 $ 3,091.1 $ 2,190.9 $ 599.4 $ 149.1

Increase (decrease) in 2024 from:

Price 125.3 114.6 10.9 (0.2)

Other 22.7 26.3 (3.6) —

Foreign currency 5.1 (1.9) 7.8 (0.8)

Parts 5.3 3.9 0.5 0.9

Unit volume and product mix (9.0) 80.9 (81.9) (8.0)

Price 3.6 6.4 (2.8) —

Bolzoni revenues (15.9) — — —

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2025 $ 910.4 $ 698.9 $ 118.2 $ 47.3

Revenues increased 4.8% to $3,240.7 million in the first nine months of 2024 from $ 3,091.1 in the first nine months of 2023.

The increase was primarily due to improved pricing, higher fleet services and other revenue from lower customer and dealer incentive programs in 2024 compared to 2023.

These increases were partially offset by lower parts volumes and a decline in unit volume in EMEA, which more than offset favorable unit volume in the Americas.

Bolzoni revenues increased in the first nine months of 2024 compared with the first nine months of 2023, mainly from higher sales volumes and improved pricing.

The following table identifies the components of change in operating profit for the first nine months of 2024 compared with the first nine months of 2023:

Revenues decreased 13.8% to $910.4 million in the first quarter of 2025 from $ 1,056.5 million in the first quarter of 2024.

The decrease in Lift Truck revenues was primarily due to a decline in unit volume, mainly in the Americas and EMEA.

The decrease was partially offset by higher other revenues, including improved fleet services revenue.

Bolzoni's revenues decreased in the first quarter of 2025 compared with the first quarter of 2024, primarily due to lower unit volume.

Nuvera's revenues decreased in the first quarter of 2025 compared with the first quarter of 2024, mainly as a result of lower intercompany sales to the lift truck business.

The following table identifies the components of change in operating profit (loss) for the first quarter of 2025 compared with the first quarter of 2024:

Operating Profit (Loss)

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Lift truck selling, general and administrative expenses (4.1) (2.9) (0.4) (0.8)

Restructuring (0.2) (0.7) 1.3 (0.8)

Bolzoni operations (2.7) — — —

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2025 $ 21.3 $ 52.4 $ (14.9) $ (7.3)

The Company recognized an operating profit of $212.5 million in the first nine months of 2024 compared with $160.0 million in the first nine months of 2023.

The increase in Lift Truck operating profit was primarily due to improved gross profit from higher pricing of $125.3 million, mainly in the Americas, partially offset by unfavorable manufacturing variances as result of lower unit volumes and higher freight costs.

The increase in gross profit was partially offset by higher selling, general and administrative expenses related to increased employee-related costs, including incentive compensation, as well as higher marketing and product development costs.

Operating profit in the Americas increased in the first nine months of 2024 compared with the first nine months of 2023, primarily due to improved gross profit from higher pricing of $114.6 million, favorable material costs and improved margin from lower dealer and customer incentives in the Americas compared with the first nine months of 2023.

These improvements were partially offset by manufacturing inefficiencies tied to lower production volumes, lower parts sales and higher freight costs.

In addition, operating profit was unfavorably impacted by higher selling, general and administrative expenses related to increased employee-related costs, including incentive compensation, as well as higher marketing and product development costs.

EMEA's operating profit was $0.4 million in the first nine months of 2024 compared with $6.1 million the first nine months of 2023.

The decrease was mainly due to an increase in selling, general and administrative expenses relating to higher employee-related costs, including incentive compensation, as well as higher marketing costs.

JAPIC's operating loss increased to $15.3 million in the first nine months of 2024 from $8.8 million in the first nine months of 2023, primarily due to lower gross profit from material cost inflation, and lower unit volume, partially offset by favorable foreign currency movements and lower selling, general and administrative expenses.

Bolzoni's operating profit increased to $13.5 million in the first nine months of 2024 compared with $12.7 million in the first nine months of 2023, primarily due to sales of higher-margin units, favorable unit volumes and manufacturing efficiencies, partially offset by higher selling, general and administrative costs, primarily related to higher employee-related costs.

Nuvera's operating loss increased to $32.7 million in the first nine months of 2024 compared with $28.4 million in the first nine months of 2023, primarily from lower revenue and an increase in selling, general and administrative expenses, primarily related to higher utility and lease expenses.

The Company recognized net income attributable to stockholders of $ 132.0 million in the first nine months of 2024 compared with $ 100.7 million in the first nine months of 2023.

The improvement was primarily the result of the factors affecting operating profit, partially offset by higher income taxes.

This higher income tax rate was due to the continued capitalization of research and development expenditures for U.S.

tax purposes combined with the Company's inability to record deferred tax assets on its balance sheet given its U.S.

valuation allowance position.

See Note 5 of the Company's condensed consolidated financial statements for further discussion of the Company's income tax provision.

The Company recognized operating profit of $21.3 million in the first quarter of 2025 compared with $83.8 million in the first quarter of 2024.

The decrease in Lift Truck operating profit was primarily due to lower gross profit, mainly from lower volume and higher material and freight costs, as well as lower overhead absorption rates.

Additionally, selling, general and administrative expenses were higher, primarily related to increased marketing, product development and information technology costs.

Operating profit in the Americas decreased to $52.4 million in the first quarter of 2025 compared with $ 89.6 million in the first quarter of 2024.

The decrease was due to lower gross profit primarily from lower overhead absorption rates tied to lower production volume and higher warranty and freight costs.

These decreases were partially offset by improved pricing.

EMEA recognized an operating loss of $14.9 million in the first quarter of 2025 compared with operating profit of $ 5.2 million in the first quarter of 2024.

The decrease was primarily due to lower gross profit from lower unit volume as well as lower overhead absorption rates tied to lower production volume.

The operating loss in JAPIC was $7.3 million in the first quarter of 2025 compared with $ 5.5 million in the first quarter of 2024, mainly due to higher marketing costs and an $0.8 million restructuring charge.

Bolzoni's operating profit decreased to $0.6 million in the first quarter of 2025 compared with $3.3 million in the first quarter of 2024, primarily due to lower unit volumes and unfavorable foreign currency movements.

The operating loss at Nuvera increased in the first quarter of 2025 compared with the first quarter of 2024, mainly due to lower product development funding from third-parties.

This was partially offset by savings realized through head count reduction initiatives implemented in 2024.

The Company recognized net income attributable to stockholders of $ 8.6 million in the first quarter of 2025 compared with $ 51.5 million in the first quarter of 2024.

The decline was primarily the result of lower operating profit in addition to a higher effective income tax rate in the first quarter of 2025 compared with the first quarter of 2024.

See Note 5, Income Taxes , of the Company's condensed consolidated financial statements for further discussion of the Company's income tax provision.

LIQUIDITY AND CAPITAL RESOURCES

The following tables detail the changes in cash flow for the nine months ended September 30:

The following tables detail the changes in cash flow for the three months ended March 31, 2025 compared to the same period in the prior year:

2025 2024 Change

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Inventories (6.8) (37.6) 30.8

Accounts payable and other liabilities (50.2) (44.1) (6.1)

Other current assets (4.2) (7.7) 3.5

Net cash provided by operating activities 90.0 105.1 (15.1)

Accounts payable and other liabilities (54.5) 14.8 (69.3)

Net cash provided by (used for) operating activities (36.4) 22.4 (58.8)

Investing activities:

Expenditures for property, plant and equipment (10.6) (7.5) (3.1)

Proceeds from the sale of assets and business 1.4 2.3 (0.9)

Business acquisition, net of cash acquired (2.2) — (2.2)

Purchase of noncontrolling interest — (3.2) 3.2

Proceeds from the sale of assets 0.3 0.5 (0.2)

Net cash used for investing activities (10.3) (7.0) (3.3)

Business acquisition, net of cash acquired

Cash flow before financing activities $ (46.7) $ 15.4 $ (62.1)

Net cash provided by operating activities decreased $15.1 million in the first nine months of 2024 compared with the first nine months of 2023, primarily as a result of changes in assets and liabilities partially offset by higher net income.

The unfavorable net changes in assets and liabilities were mainly due to a large increase in accounts receivable and inventories during the first nine months of 2024 compared with the first nine months of 2023.

The increase in accounts receivable is mainly due to higher sales with longer payment terms during the first nine months of 2024 compared with the first nine months of 2023.

In addition, inventory increased in the first nine months of 2024 compared to the first nine months of 2023 due mainly to changes in the timing of shipments to customers.

The change in net cash used for investing activities during the first nine months of 2024 compared with the first nine months of 2023 was mainly due to higher capital expenditures in 2024.

Net cash provided by (used for) operating activities decreased $58.8 million in the first three months of 2025 compared with the first three months of 2024, primarily as a result of lower net income and a use of cash in other liabilities primarily due to employee-related payments, including incentive compensation, in the first quarter of 2025.

This was offset by changes in accounts payable, accounts receivable and inventory mainly as a result of lower inventory purchases due to lower production and sales volumes during the first three months of 2025 compared with the first three months of 2024.

The change in net cash used for investing activities during the first three months of 2025 compared with the first three months of 2024 was mainly due to higher capital expenditures in 2025.

2025 2024 Change

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Purchase of treasury stock (4.5) (9.1) 4.6

Other — (2.1) 2.1

Net cash used for financing activities $ (62.2) $ (69.1) $ 6.9

The change in net cash used for financing activities was primarily due to lower net payments during the first nine months of 2024 compared with the first nine months of 2023.

Additionally, the Company purchased treasury stock in the first nine months of 2024 related to employee-related incentive stock compensation plans.

Net cash provided by (used for) financing activities $ 25.9 $ (30.5) $ 56.4

The change in net cash provided by (used for) financing activities was primarily due to net borrowings under the Company's revolving credit facilities during the first three months of 2025 compared to net payments in the first three months of 2024.

Additionally, the Company purchased less treasury stock in the first three months of 2025 related to employee-related incentive stock compensation plans compared with the first three months of 2024.

Financing Activities

The Company has a $300.0 million secured, floating-rate revolving credit facility (the "Facility") that expires in June 2026 and a $225.0 million term loan (the "Term Loan"), which matures in May 2028.

The Facility previously included a $25.0 million tranche, which terminated on May 1, 2024.

The Facility can be increased up to $400.0 million over the term of the Facility in minimum increments of $10.0 million, subject to approval by the lenders.

The obligations under the Facility are generally secured by a first priority lien on working capital assets of the borrowers and guarantors in the Facility, which includes but is not limited to cash and cash equivalents, accounts receivable and inventory, and a second priority lien on the present and future shares of capital stock, fixtures and general intangibles consisting of intellectual property.

The approximate book value of assets held as collateral under the Facility was $1.3 billion as of September 30, 2024.

The approximate book value of assets held as collateral under the Facility was $1.3 billion as of March 31, 2025.

The Facility includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Facility.

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The Facility also requires the Company to achieve a minimum fixed charge coverage ratio when total excess availability is less than the greater of 10% of the total borrowing base, as defined in the Facility, and $20.0 million.

At September 30, 2024, the Company was in compliance with the covenants in the Facility.

Key terms of the Facility as of September 30, 2024 were as follows:

At March 31, 2025, the Company was in compliance with the covenants in the Facility.

Key terms of the Facility as of March 31, 2025 were as follows:

borrowing capacity $ 210.0

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base rate 8.00%

EURIBOR 5.09%

Facility fee, per annum on unused commitment 0.25%

The Term Loan requires quarterly principal payments on the last day of each March, June, September and December, which commenced September 30, 2021, in an amount equal to $562,500 and the final principal repayment is due in May 2028.

The Term Loan requires quarterly principal payments on the last day of each March, June, September and December, which commenced September 30, 2021, in an amount equal to approximately $0.6 million and the final principal repayment is due in May 2028.

The Company may also be required to make mandatory prepayments, in certain circumstances, as provided in the Term Loan.

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working capital assets of the borrowers and guarantors of the Facility, which includes, but is not limited to, cash and cash equivalents, accounts receivable and inventory.

The approximate book value of assets held as collateral under the Term Loan was $1.0 billion as of September 30, 2024.

The approximate book value of assets held as collateral under the Term Loan was $894.5 billion as of March 31, 2025.

In addition, the Term Loan includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Term Loan.

The Term Loan limits the payment of

dividends and other restricted payments the Company may make in any fiscal year, unless the consolidated total net leverage ratio, as defined in the Term Loan, does not exceed 2.50 to 1.00 at the time of the payment.

At September 30, 2024, the Company was in compliance with the covenants in the Term Loan.

Key terms of the Term Loan as of September 30, 2024 were as follows:

The Term Loan limits the payment of dividends and other restricted payments the Company may make in any fiscal year, unless the consolidated total net leverage ratio, as defined in the Term Loan, does not exceed 2.50 to 1.00 at the time of the payment.

At March 31, 2025, the Company was in compliance with the covenants in the Term Loan.

Key terms of the Term Loan as of March 31, 2025 were as follows:

Outstanding $ 216.6

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Applicable interest rate, for amounts outstanding 7.94%

The Company had other debt outstanding, excluding finance leases, of approximately $152.7 million at September 30, 2024.

The Company had other debt outstanding, excluding finance leases, of approximately $149.3 million at March 31, 2025.

In addition to the excess availability under the Facility of $197.1 million, the Company had remaining availability of $54.4 million related to other non-U.S.

revolving credit agreements at September 30, 2024.

revolving credit agreements at March 31, 2025.

The Company believes funds available from cash on hand, the Facility, other available lines of credit and operating cash flows will provide sufficient liquidity to meet its operating needs and commitments during the next twelve months and until the expiration of the Facility in June 2026.

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The following table summarizes actual and planned capital expenditures:

Nine Months Ended September 30, 2024 Planned for Remainder of 2024 Planned 2024 Total Actual 2023

Three Months Ended March 31, 2025

Planned for Remainder of 2025

Planned 2025 Total

Lift truck business $ 8.2 $ 27-47 $ 35-55 $ 37.5

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$ 10.6 $ 30-55 $ 40-65 $ 47.8

Planned expenditures for the remainder of 2024 are primarily for product development, improvements at manufacturing locations, manufacturing equipment improvements to information technology infrastructure.

The principal sources of financing for these capital expenditures are expected to be internally generated funds and bank financing.

Planned expenditures for the remainder of 2025 are primarily for improvements at manufacturing locations and manufacturing equipment, product development and improvements to information technology infrastructure.

The top end of the spending range reflects spending discipline and project prioritization as a result of increased global economic uncertainty.

The Company will closely monitor market conditions and may adjust investments levels and timing as market visibility improves.

The primary sources of financing for these capital expenditures are expected to be internally generated funds and bank financing.

Capital Structure

The Company's capital structure is presented below:

MARCH 31, 2025

DECEMBER 31, 2024

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Debt to total capitalization 48 % 47 % 1 %

OUTLOOK AND LONG-TERM OBJECTIVES

Consolidated Strategic Perspective

The Company believes its strong 2023 and 2024 year-to-date financial performance benefited significantly from actions taken over the past few years to deliver on the Company's two promises:

first, to provide optimal solutions for our customers and second, to provide exceptional customer care.

These actions include implementation of key strategies, projects and significant process improvements, all of which better position the Company for substantial longer-term profitable growth.

As part of this, the Company’s product development and process improvement efforts are leading to significant advantages, including:

• more efficient lift truck production, which supports higher volumes on existing production lines;

• leveraging modular and scalable product designs to produce similar high-volume trucks globally, enabling the Company to better meet customer demand while minimizing operational costs;

• maximizing operational efficiency and factory utilization by enabling the Company’s plants to build internal combustion and electric trucks on the same production lines;

• phasing out Bolzoni’s lower-margin legacy component manufacturing, which creates manufacturing space for further profitable attachment growth.

These improvements are leading to a more efficient and flexible organization which is now positioned to further optimize the Company’s operations and costs.

As a result, in October 2024, the Company concluded that new programs should be undertaken in the Americas to lower costs, optimize its Americas’ manufacturing footprint, reduce lead times and better position the Company for increased margins and further growth.

The Company expects to incur restructuring charges in the future as it fully executes these manufacturing improvement programs over the next 12 to 36 months.

Since the details of these programs are still being finalized, an in depth estimate of charges and expected benefits has not yet been fully determined.

The Company will provide more details with its Q4 2024 earnings results along with a more comprehensive 2025 market and business outlook.

On April 30, 2025, the Company announced a strategic realignment of its Nuvera fuel cell business designed both to increase near term profits and to create an integrated energy solutions program at its Billerica, Massachusetts facility, which will be part of the Lift Truck business.

The energy solutions program will include:

• Development, manufacturing, and commercialization of its lithium-ion battery modules, battery chargers, battery management systems, and energy management services.

These activities are critical to the Lift Truck's success as the business expects next generation batteries to be broadly used in electric forklift trucks.

• Development, manufacturing and commercialization of a mobile, modular and scalable hybrid electric charging platform to provide off-grid power solutions.

This platform will be configured to use the Lift Truck’s battery solutions as well as a variant called HydroCharge TM that incorporates Nuvera's patented fuel cell technology.

• A significantly downsized and more limited fuel cell development program focused on the final development and testing of a higher powered 125KW fuel cell for use in the Lift Truck’s port equipment and larger HydroCharge TM applications.

This more modest fuel cell program reflects the Company’s conclusion that its current fuel cell business

will not reach its profitability objectives in an acceptable period.

The underlying analysis is based on recent fuel cells uptake rates as an energy solution, and on a significantly changed political environment in the U.S.

and globally.

This strategic realignment is expected to achieve direct annualized cost reductions of $15 to $20 million starting in the second half of 2025.

The Company also expects an additional $10 to $15 million of Nuvera's costs to be absorbed by the Lift Truck business, largely to staff open positions, with the goal of accelerating development of batteries and related services and mobile charging products.

As result of these actions, approximately $15 to $18 million of employee severance and impairment costs are expected in Q2 2025.

Additional charges or expenditures are possible as the program progresses.

This program takes advantage of Nuvera's technical skill base in each of the above initiatives.

It lays the groundwork for:

• more rapid maturity, growth and profitability of its battery and charger programs;

• development, manufacturing and commercialization of its charging platforms for off grid power solutions;

• completion of its port equipment electric power solutions.

The energy solutions program has significant technical and product synergies between fuel cells, lithium-ion batteries, chargers and mobile charge equipment in areas such as controls, packaging, cooling and manufacturing.

Battery program sales in 2025 are expected to accelerate from 2024 levels and continue growing in the following years.

Initial HydroCharge TM product sales are expected to begin in the second half of 2025, while battery and fuel cell electric port equipment trucks are currently testing in customer applications.

These three product activities are expected to meet Lift Truck’s end user and dealer electric product distribution needs while providing additional service revenue opportunities over time.

This strategic realignment is part of the Company’s broader change program aimed at transforming the way the world moves materials from Port to Home.

It focuses on transforming the Company’s core lift truck business while building new growth opportunities in the warehouse forklift truck market, automation, energy solutions, and attachment activities through its Lift Truck and Bolzoni businesses.

The Company's ongoing programs to develop modular, scalable products, optimize its manufacturing footprint, streamline its supplier structure, and expand its customer base with optimized customer solutions are key to the transformation of the core forklift truck business.

With the new growth opportunities, these programs are expected to lead to significant revenue increases and enhanced operating profitability across the forklift truck market cycle while lowering capital intensity and improving historical returns on total capital employed.

The Company’s full-year 2025 outlook includes anticipated negative tariff impacts along with the Company’s proactive initiatives—including pricing programs, global product resourcing, supply chain adjustments, and cost optimization programs.

This forecast has several key assumptions, including:

tariffs in effect on April 9, 2025, as the baseline;

no reinstatement of April 9, 2025 tariffs that were paused for 90 days;

current Section 301 tariff exemption related to lift truck parts not extended beyond May 31, 2025;

no additional tariffs will be added globally;

company demand forecasts based on bookings trends, backlog levels and market data;

no significant demand decline stemming from a U.S.

or global economic recession or tariffs;

the successful implementation of the Company’s proactive initiatives outlined above.

Despite the current challenging economic environment, the Company remains steadfast in its commitment to delivering optimal solutions and exceptional customer care and positioning the Company for substantial long-term profitable growth.

Lift Truck Business

Lift Truck estimates that the Q3 2024 global lift truck market declined moderately from prior year levels.

The rate of the year-over-year market bookings decrease accelerated compared to Q2 2024 as more regions experienced deterioration, including a reversal of positive trends previously seen in EMEA.

The Q4 2024 global lift truck market is expected to decline further year-over-year, with the Americas and EMEA markets decreasing at an accelerating pace and JAPIC generally stabilizing.

Importantly, these below-trend market booking levels are expected to accelerate the offset of the significantly above-trend market booking rates experienced between 2021 and 2023.

These counterbalancing forces should return the market to more normalized long-term growth rates over the next several quarters.

In 2025, the Lift Truck anticipates the global lift truck market will decrease modestly from 2024 levels, with a first-half decline mostly offset by a second-half increase.

Regionally, the Americas and JAPIC markets are expected to lead to comparable year-over-year orders in 2025.

In EMEA, second-half 2025 improvements are not expected to fully offset a first-half deterioration.

Consistent with the market declines, the Company's factory bookings dollar-value decreased 3% to $370 million in Q3 2024 from $380 million in Q2 2024, broadly suggesting stabilization for Lift Truck at a lower rate.

While Lift Truck's Q3 2024 overall bookings dollar-value declined compared with Q2 2024, Americas Q3 2024 bookings dollar-value improved 8% compared with the second quarter, primarily due to increased volumes of higher-priced, 4- to 6-ton

Class 1 and the Company's new modular, scalable 1- to 3-ton Class 5 lift trucks.

EMEA and JAPIC bookings dollar-value declined 19% from Q2 2024.

As a result of Lift Truck's warehouse penetration strategy, including advanced on-truck technologies, Lift Truck anticipates Q3 2024 Americas and EMEA bookings will reflect warehouse market share gains.

These gains are expected to continue in Q4 2024 and 2025.

Overall market share improvements are also expected in all regions as production rates ramp up on the new 1- to 3.5-ton modular, scalable products.

Additional new modular, scalable products are expected to launch in the first half of 2025, as well as electric models of the 1- to 3.5-ton trucks later in the year, which should accelerate the pace of share gains over time.

These Q3 and Q4 2024 and early 2025 bookings are expected to reflect continued extension of Lift Truck's roughly seven-month backlog.

The new bookings should fill open 2025 production slots, largely in the second half of the year, where some lines are already in a solid backlog position.

Rising market share and new bookings, along with Lift Truck’s $2.3 billion backlog, should provide a solid production foundation for the business with improving market levels in the second half of 2025, and set the stage for higher production in 2026.

The current backlog should support 2025 shipment levels generally in line with 2024.

The Company's global production levels may moderate in 2025 without expected market or share improvements.

For much of the past two years, Lift Truck has benefited from strong pricing tailwinds and a significant order backlog.

This led to product margins well above Lift Truck's targeted levels.

Looking ahead, Lift Truck is focused on maintaining bookings of competitively priced products at or above targeted margin levels.

Lift Truck expects to continue to achieve its targeted booking margins through a combination of new model introductions and ongoing cost and pricing discipline.

In this context, Q4 2024 consolidated Lift Truck revenues and operating profit are expected to be roughly comparable year-over-year.

Anticipated continued strong product margins, from the shipment of higher-priced, higher-margin backlog units, are expected to be offset by increased freight and material costs and higher operating expenses.

Looking forward, Lift Truck's backlog is expected to remain healthy, while continuing to decline toward normalized levels.

Despite a profitable backlog foundation and ongoing pricing discipline, the lower backlog and market levels could result in a 2025 year-over-year revenue decrease.

Given a potential revenue decline, in combination with anticipated cost inflation and an operating expense run rate similar to the second half of 2024, Lift Truck expects an operating profit in 2025 significantly lower than the exceptionally strong 2024 full year.

In Q4 2024, Bolzoni product margins are expected to modestly improve year-over-year, despite lower revenues, as increased production of higher-margin attachments more than offsets the planned phase out of lower-margin legacy component sales to the Lift Truck business.

Higher material and freight costs, along with increased employee-related expenses, are expected to offset the improved product margins, leading to a substantial decrease in operating profit compared with Q4 2023.

As Bolzoni continues phasing out legacy components, 2025's operating profit is expected to improve over 2024 despite anticipated lower sales volumes.

During Q4 2024 and in 2025, Nuvera will remain focused on increasing customer product demonstrations and orders, specifically for its new portable hydrogen fuel cell-powered generator.

This product was introduced in May 2024 and began customer and dealer demonstrations in September 2024.

Q4 2024 revenues are expected to increase year-over-year and be comparable quarter-over-quarter.

The benefits from revenue growth are expected to be offset by higher product development costs, resulting in a modest increase in the Q4 2024 operating loss compared with Q4 2023.

In 2025, Nuvera expects full-year revenues to increase due to higher fuel cell sales.

The revenue benefits are likely to be partly offset by a modest increase in product development costs year-over-year to support further development on Nuvera’s more powerful 125Kw fuel cell engine.

In total, 2025's operating results are expected to improve compared to 2024, in part due to benefits realized from the 2024 reduction in force action.

Consolidated Q4 2024 revenues and net income anticipated to be roughly comparable to robust prior year levels.

The Company continues to make progress toward its goal of generating 7% operating profit margins across each business cycle in the Lift Truck and Bolzoni businesses.

In periods of robust demand, like those experienced in recent quarters, the Company

exceeded its target margin levels.

During the current environment of soft demand, the Company’s extended backlog of higher-margin trucks is providing a shock absorber for financial results.

The Company expects production levels to continue to outpace bookings for the next several quarters, bringing the backlog to more normalized levels by mid-2025.

Bookings are expected to accelerate in the second half of 2025 and the Company expects improved production levels in 2026.

In the meantime, strategic actions to reduce costs, improve productivity and deliver high-quality, highly customizable products made consistently around the globe should enable the Company to be more profitable in all phases of the business cycle.

These actions are ongoing and will gain momentum in the coming quarters.

As a result of the aforementioned factors, the Company believes 2025 revenues may be lower than 2024 and operating profit and net income will decline significantly compared to 2024.

The Company continues to focus on its cash generation and capital allocation priorities.

The Company has made progress on working capital efficiency in 2024 to date, but the pace of improvement has been below management's objectives.

Intense efforts to accelerate results in this area are underway and are expected to generate further improvements in Q4 2024 and 2025.

Capital expenditures, including transformational product enhancements and manufacturing efficiency, are expected to be $49 million in 2024.

This is below the initial estimate of $87 million which helps to ensure a strong liquidity position as working capital improvement efforts mature.

Overall, the Company expects Q4 and full-year 2024 cash flows from operations to increase significantly year-over-year.

2025 cash flow from operations is expected to remain strong and at a high level, but decrease from 2024 levels.

As the Company continues to generate cash, it will follow its disciplined capital allocation framework to reduce leverage, make strategic investments to support profitable business growth and generate strong returns for its shareholders.

The Company estimates that the global lift truck bookings market slightly improved in Q1 2025 compared to the prior year.

The Lift Truck business experienced a substantial increase in Q1 2025 bookings, predominately in Americas and EMEA.

Bookings of $590 million increased 48% sequentially and 13% year-over-year.

This improvement was driven by heightened demand for higher-priced, Class 4 and 5 products including the Company's new modular, scalable lift trucks.

These results highlight early signs of lift truck booking market recovery, especially in EMEA.

The Lift Truck business remains well-positioned to capture additional market share across its product portfolio, reinforcing its long-term strategic goals.

The market is expected to stabilize and improve across 2025, absent the potential effects from tariffs, which we believe caused order hesitation in April.

The Lift Truck business began 2025 with a backlog of $1.9 billion, which remained stable in the first quarter.

Full-year production forecasts project an increasing rate compared to Q1 levels, with full-year revenues projected to slightly exceed annualized first quarter levels.

While maintaining a consistent backlog, the Lift Truck business continues to balance production levels with demand for its products.

Production rates are anticipated to increase in Q2 2025, followed by continued lift truck market booking growth in the second half of 2025.

This is expected to position the Lift Truck business for accelerated growth in 2026.

However, if the bookings market or Lift Truck's expected market share improvements fail to meet expectations, its global production levels will likely moderate in the latter half of 2025.

The Lift Truck business continues to focus on maintaining bookings with product margins at or above targeted levels through a combination of new product introductions, including modular and scalable models, and ongoing cost and pricing discipline in existing products.

Product margins are expected to decline in 2025 compared to the prior year due to increased competitive market dynamics but remain above target levels.

Price increases were implemented during Q1 2025 to counter inflationary costs as well as initial tariffs implemented before March 31, 2025.

Lift Truck’s prices are expected to be adjusted quickly to limit the tariff impact on its cost structure.

Despite these challenging conditions, market share growth opportunities are expected to further strengthen Lift Truck’s competitive positioning across its product portfolio.

Projects initiated in 2024 to streamline Lift Truck's manufacturing footprint and optimize its operations are progressing as planned.

As part of the project implementation, Lift Truck anticipates incurring additional costs estimated between $8 million to $16 million in both 2025 and 2026.

Initial benefits from these programs are expected in late 2025 but are expected to be offset by operational inefficiencies related to lower 2025 full-year production relative to 2024.

In 2026, benefits are projected to remain modest as the programs are fully integrated.

Starting in 2027, these fully developed programs should generate significant income and cash benefits ranging between $30 million to $40 million annually.

These savings will significantly reduce the business’ negative impact from market cyclicality for the businesses.

Savings estimates are based on current expected volume and cost assumptions.

Operating expense is expected to increase year-over-year in 2025 to support strategic long-term profitable growth initiatives.

The Lift Truck business plans to expand its sales capacity and capabilities while upgrading its core information technology systems.

A portion of these increased expenses are likely to be offset by leveraging lower-cost shared service capabilities and implementing more efficient processes and tools.

Operating profit is expected to moderately decline in the second quarter compared to the first quarter, despite anticipated production increases driven by strong bookings in Q1 2025.

Second quarter profitability will be adversely affected by the impact of tariffs and a temporary lag in the implementation of price increases.

As a result of the above factors and consistent with our prior view, 2025 operating profit is expected to be below 2024’s exceptionally strong results.

Bolzoni's second-quarter revenues are projected to modestly improve compared to the first quarter.

Improved attachment sales are expected to offset reduced legacy component sales to the Lift Truck business.

Second quarter operating profit is anticipated to moderately increase due to a favorable product mix.

Full year 2025 revenues are expected to decline year-over-year, reflecting weaker demand projections across its customer base.

While improved product mix and ongoing cost discipline expected to provide some benefit, it is not expected to fully offset the revenue decline.

As result, Bolzoni's full-year 2025 operating profit is anticipated to fall below 2024's adjusted operating profit.

Consistent with our prior outlook, the Company's full year 2025 revenues, production levels and profits are expected to be below robust 2024 results.

Looking ahead, the Company anticipates modest sequential revenue growth in Q2 2025.

However, consolidated operating profit for Q2 2025 is expected to decline moderately compared to Q1 2025, largely due to the timing of tariff-related cost increases and the actions taken to mitigate their impact.

Current global trade policies and geopolitical uncertainty, among other factors, may cause the Company’s results to deviate from its current outlook.

The financial discipline established over the past several years has been designed to deliver stronger and more consistent financial results.

The Company targets a 7% operating profit margin across the business cycle.

During periods of strong backlog-driven production, such as those experienced in early 2024, the Company should exceed this target.

However, during cyclically lower lift truck market demand phases, the Company expects to remain profitable, likely generating operating profit margins below the 7% target.

Profit stability across periods of revenue cyclicality improves the Company’s financial resiliency and marks a significant improvement from prior performance.

The Company continues to focus on generating strong operating cash flow and accretive capital deployment.

To support these goals, the Company is actively implementing initiatives to drive working capital efficiency.

With the expected 2025 lift truck production decrease, there is an intense focus on realigning production and working capital processes.

Key actions, including targeted inventory reductions, are underway and are expected to yield significant progress in 2025.

These efforts support strong full-year cash flow from operations projections, moderately below those achieved in 2024, despite the projected lower 2025 net income.

The effective utilization of these strong cash flows is critical to the Company’s ongoing transformation.

This involves substantial capital investments in advanced products, manufacturing efficiencies and information technology upgrades.

For 2025, capital expenditures are now forecasted to range between $40 million and $65 million.

The top end of the range is below initial expectations, reflecting spending discipline and project prioritization as a result of increased global economic uncertainty.

Management will closely monitor market conditions and may adjust investments levels and timing as market visibility improves.

As the Company continues to generate cash, it remains committed to its disciplined capital allocation framework.

This includes reducing leverage, executing strategic investments to support profitable growth, and delivering sustainable value and strong returns to shareholders.

Long-Term Objectives

The Company's vision is to transform the way the world moves materials from Port to Home.

The Company strives to do this through its two customer promises.

Ongoing execution of established strategic initiatives and key projects, as well as the restructuring measures previously mentioned, are expected to help the Company fulfill these promises and achieve long-term revenue and operating profit growth rates above the material handling market's expected growth rates.

The Company believes these actions will contribute to an increased and sustainable lift truck and attachment competitive advantage over time.

In addition, the Company believes that Nuvera's revenues will increase significantly over future years, bringing additional value to the Company's shareholders.

Further information regarding the Company's strategic initiatives can be found in the Company's Q3 2024 Investor Deck.

This presentation, currently available on the Hyster-Yale website, elaborates on the strategies that are critical for the Company's long-term prospects.

The Company encourages investors to review this material to ensure a clear understanding of the Company's future direction.

It strives to do this through its two customer promises:

first, to provide optimal solutions for our customers, and second, to provide exceptional customer care.

The Company is focused on execution of established strategic initiatives and key projects to transform the Company’s core lift truck business while building new business opportunities in the warehouse lift truck, vehicle automation, energy management and attachment business activities.

These complementary growth and profit improvement projects should help the Company fulfill these two promises as well as achieve long-term revenue and operating profit growth rates above the material handling market's expected growth rates.

The Company believes key projects will contribute to an increased and sustainable lift truck and attachment competitive advantage over time.

EFFECTS OF FOREIGN CURRENCY

9 unchanged sentences

Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation:

(1) delays in delivery and other supply chain disruptions, or increases in costs as a result of inflation or otherwise, including materials, critical components and transportation costs and shortages, the imposition of tariffs on raw materials or sourced products, and labor, or changes in or unavailability of quality suppliers or transporters, including the impacts of the foregoing risks on the Company's liquidity, (2) delays in manufacturing and delivery schedules, (3) reduction in demand for lift trucks, attachments and related aftermarket parts and service on a global basis, including any cyclical reduction in demand in the lift truck industry, (4) customer acceptance of pricing, (5) customer acceptance of, changes in the costs of, or delays in the development of new products, (6) the ability of the Company and its dealers, suppliers and end-users to access credit, or obtain financing at reasonable rates, or at all, as a result of interest rate volatility and current economic and market conditions, including inflation, (7) unfavorable effects of geopolitical and legislative

developments on global operations, including without limitation the entry into new trade agreements and the imposition of tariffs and/or economic sanctions, including the Uyghur Forced Labor Prevention Act (the “UFLPA”) which could impact the Company's imports from China, as well as armed conflicts, including the Russia/Ukraine conflict, the Israel and Gaza conflict and/or the conflict in the Red Sea, and their regional effects, (8) exchange rate fluctuations, interest rate volatility and monetary policies and other changes in the regulatory climate in the countries in which the Company operates and/or sells products, (9) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives and restructuring programs, (10) the successful commercialization of Nuvera's technology, (11) political and economic uncertainties in the countries where the Company does business, as well as the effects of any withdrawals from such countries, (12) bankruptcy of or loss of major dealers, retail customers or suppliers, (13) introduction of new products by, more favorable product pricing offered by or shorter lead times available through competitors, (14) product liability or other litigation, warranty claims or returns of products, (15) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation, (16) the ability to attract, retain, and replace workforce and administrative employees, (17) disruptions resulting from natural disasters, public health crises, political crises or other catastrophic events, and (18) the ability to protect the Company’s information technology infrastructure against service interruptions, data corruption, cyber-based attacks or network breaches.

trade policy and tariffs as well as retaliatory tariffs imposed by other countries where the Company does business, (3) delays in manufacturing and delivery schedules, (4) reduction in demand for lift trucks, attachments and related aftermarket parts and service on a global basis, including any cyclical reduction in demand in the lift truck industry, (5) customer acceptance of pricing, (6) customer acceptance of, changes in the costs of, or delays in the development of new products, (7) the ability of the Company and its dealers, suppliers and end-users to access credit, or obtain financing at reasonable rates, or at all, as a result of interest rate volatility and current economic and market conditions, including inflation, (8) unfavorable effects of geopolitical and legislative developments on global operations, including without limitation the entry into new trade agreements and the imposition of tariffs and/or economic sanctions, including the Uyghur Forced Labor Prevention Act (the “UFLPA”) which could impact the Company's imports from China, as well as armed conflicts, including the Russia/Ukraine conflict, the Israel and Gaza conflict and/or the conflict in the Red Sea, and their regional effects, (9) exchange rate fluctuations, interest rate volatility and monetary policies and other changes in the regulatory climate in the countries in which the Company operates

and/or sells products, (10) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives and restructuring programs, (11) the successful commercialization of products and technology related to the energy solutions program, (12) political and economic uncertainties in the countries where the Company does business, as well as the effects of any withdrawals from such countries, (13) bankruptcy of or loss of major dealers, retail customers or suppliers, (14) introduction of new products by, more favorable product pricing offered by or shorter lead times available through competitors, (15) product liability or other litigation, warranty claims or returns of products, (16) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation, (17) the ability to attract, retain, and replace workforce and administrative employees, (18) disruptions resulting from natural disasters, public health crises, political crises or other catastrophic events, and (19) the ability to protect the Company’s information technology infrastructure against service interruptions, data corruption, cyber-based attacks or network breaches.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis