HYSTER-YALE, INC. 10-Q

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Dollars in Millions, Except Per Share Data) Hyster-Yale, Inc. ("Hyster-Yale" or the "Company") and its subsidiaries, including its operating company, Hyster-Yale Materials Handling, Inc. ("HYMH"), is a globally integrated company offering a full line of high-quality, application-tailored lift trucks and solutions aimed at meeting the specific materials handling needs of its customers. 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. The Company, through HYMH, designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments, aftermarket parts and technology and energy solutions marketed globally, under the Hyster ® , Yale ® and Nuvera® brand names, mainly to independent Hyster ® and Yale ® retail dealerships. The Company's distribution network consisted of approximately 270 independent dealers as of September 30, 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, the Netherlands, Mexico, the Philippines, Brazil, Japan, Italy and Vietnam. The Company owns 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. ("Bolzoni"). Bolzoni is a leading producer and distributor of attachments, forks and lift tables marketed globally under the Bolzoni ® , Auramo ® and Meyer ® brand names. Bolzoni also produces components for lift truck manufacturers. Bolzoni products are manufactured in the United States, Italy, China, Germany and Finland. 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 May 2025, Bolzoni acquired 100% of the equity interest of a manufacturing business in Italy for an aggregate purchase price of $2.6 million, net of cash acquired. In addition, the agreement may require additional consideration to be paid by Bolzoni based upon the acquired business achieving certain revenue and profitability metrics in future years. 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 has not yet finalized its analysis of the fair value of the acquired business, thus the allocation of the purchase price is preliminary and may change in future periods as fair value estimates of the assets acquired and liabilities assumed are refined during the measurement period. The Company will complete the purchase price allocation no later than one year after the date of acquisition. During the second quarter of 2025, the Company announced a strategic business realignment of Nuvera Fuel Cells, LLC ("Nuvera") designed both to increase near-term profits and to create an integrated energy solutions program in the Americas segment, which is part of the HYMH business. Nuvera was merged into HYMH in the second quarter of 2025. As a result, the Company revised its operating segments to reflect changes in the way the chief operating decision maker (“CODM”) manages and evaluates the business. These changes did not impact the Company's condensed consolidated financial statements, but did impact its reportable segments. The historical and current results of the former Nuvera segment are now presented within the Americas operating segment. Refer to Note 4, Business Segments to the unaudited condensed consolidated financial statements for additional information on the Company's reportable segments. Comparative prior period amounts have been recast to reflect the segment change. CRITICAL ACCOUNTING POLICIES AND ESTIMATES Please refer to the discussion of Critical Accounting Policies and Estimates as disclosed on pages 19 through 20 in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Critical Accounting Policies and Estimates have not materially changed since December 31, 2024. 23 Table of Contents FINANCIAL REVIEW The results of operations for the Company were as follows: THREE MONTHS ENDED Favorable / (Unfavorable) NINE MONTHS ENDED Favorable / (Unfavorable) SEPTEMBER 30, SEPTEMBER 30, 2025 2024 % Change 2025 2024 % Change Revenues Americas $ 732.7 $ 771.5 (5.0) % $ 2,139.1 $ 2,422.9 (11.7) % EMEA 150.1 145.0 3.5 % 416.6 532.2 (21.7) % JAPIC 46.5 51.3 (9.4) % 142.2 137.7 3.3 % Lift truck business 929.3 967.8 (4.0) % 2,697.9 3,092.8 (12.8) % Bolzoni 87.0 97.6 (10.9) % 257.9 296.2 (12.9) % Eliminations (37.2) (49.3) (24.5) % (109.7) (148.3) (26.0) % $ 979.1 $ 1,016.1 (3.6) % $ 2,846.1 $ 3,240.7 (12.2) % Gross profit (loss) Americas $ 117.8 $ 144.8 (18.6) % $ 390.2 $ 520.2 (25.0) % EMEA 12.3 19.5 (36.9) % 40.0 85.9 (53.4) % JAPIC 4.2 5.6 (25.0) % 9.7 14.0 (30.7) % Lift truck business 134.3 169.9 (21.0) % 439.9 620.1 (29.1) % Bolzoni 21.4 23.3 (8.2) % 61.3 67.5 (9.2) % Eliminations 0.2 (0.3) n.m. 0.6 0.3 100.0 % $ 155.9 $ 192.9 (19.2) % $ 501.8 $ 687.9 (27.1) % Selling, general and administrative expenses Americas $ 95.7 $ 103.7 7.7 % $ 297.3 $ 306.4 3.0 % EMEA 29.2 29.1 (0.3) % 88.4 85.5 (3.4) % JAPIC 8.4 8.7 3.4 % 27.9 28.3 1.4 % Lift truck business 133.3 141.5 5.8 % 413.6 420.2 1.6 % Bolzoni 19.3 17.1 (12.9) % 56.2 54.0 (4.1) % $ 152.6 $ 158.6 3.8 % $ 469.8 $ 474.2 0.9 % Restructuring and impairment charges (reversals) Americas $ 1.0 $ 0.2 (400.0) % $ 17.6 $ 0.2 n.m. EMEA — — n.m. (1.6) — n.m. JAPIC — 1.0 100.0 % 0.9 1.0 10.0 % Lift truck business 1.0 1.2 16.7 % 16.9 — n.m. Bolzoni — — n.m. — — n.m. Eliminations — — n.m. — — n.m. $ 1.0 $ 1.2 n.m. $ 16.9 $ — n.m. Operating profit (loss) Americas $ 21.1 $ 40.9 (48.4) % $ 75.3 $ 213.6 (64.7) % EMEA (16.9) (9.6) (76.0) % (46.8) 0.4 n.m. JAPIC (4.2) (4.1) (2.4) % (19.1) (15.3) (24.8) % Lift truck business — 27.2 (100.0) % 9.4 198.7 (95.3) % Bolzoni 2.1 6.2 (66.1) % 5.1 13.5 (62.2) % Eliminations 0.2 (0.3) n.m. 0.6 0.3 100.0 % $ 2.3 $ 33.1 (93.1) % $ 15.1 $ 212.5 (92.9) % 24 Table of Contents THREE MONTHS ENDED Favorable / (Unfavorable) NINE MONTHS ENDED Favorable / (Unfavorable) SEPTEMBER 30, SEPTEMBER 30, 2025 2024 % Change 2025 2024 % Change Interest expense $ 8.0 $ 8.4 4.8 % $ 23.6 $ 26.1 9.6 % Other income $ (1.1) $ (3.4) (67.6) % $ (7.5) $ (8.6) (12.8) % Net income (loss) attributable to stockholders $ (2.3) $ 17.2 (113.4) % $ (7.6) $ 132.0 (105.8) % Diluted earnings (loss) per share $ (0.13) $ 0.97 (113.4) % $ (0.43) $ 7.47 (105.8) % Reported income tax rate n.m. 36.7 % n.m. 31.5 % n.m. - not meaningful The following is the detail of the approximate sales value of the Company's lift truck unit bookings dollar value and lift truck backlog dollar value. 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, 2025, 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 2025 2024 2025 2024 Bookings, approximate sales value $ 380 $ 370 $ 1,300 $ 1,270 Backlog, approximate sales value $ 1,350 $ 2,300 $ 1,350 $ 2,300 Third Quarter of 2025 Compared with Third Quarter of 2024 The following table identifies the components of change in revenues for the third quarter of 2025 compared with the third quarter of 2024: Revenues Lift Truck HY Americas EMEA JAPIC 2024 $ 1,016.1 $ 771.5 $ 145.0 $ 51.3 Increase (decrease) in 2025 from: Lift Truck Unit volume and product mix (78.3) (77.4) 2.7 (3.7) Price 7.4 8.8 (1.4) — Parts (0.3) 2.4 (2.4) (0.3) Foreign currency 7.1 0.4 7.0 (0.3) Other 25.6 27.0 (0.8) (0.5) Bolzoni revenues (10.6) — — — Eliminations 12.1 — — — 2025 $ 979.1 $ 732.7 $ 150.1 $ 46.5 Revenues decreased 3.6% to $979.1 million in the third quarter of 2025 from $1,016.1 million in the third quarter of 2024. The decrease in Lift Truck revenues was primarily due to a decline in unit volume, mainly in the Americas. The Company believes the lift truck market continues to reflect a more cautious customer approach amid ongoing economic uncertainty with increased pressure from low-cost foreign competitors. The decline in unit volume was partially offset by higher other revenues, a shift in sales to higher-priced lift trucks and the Company’s pricing actions to help offset higher costs, mainly in the Americas. In addition, favorable currency movements in the third quarter of 2025 partially offset the decline in Lift Truck revenues. Bolzoni's revenues decreased in the third quarter of 2025 compared with the third quarter of 2024, primarily due to lower unit volume. 25 Table of Contents The following table identifies the components of change in operating profit (loss) for the third quarter of 2025 compared with the third quarter of 2024: Operating Profit (Loss) Lift Truck HY Americas EMEA JAPIC 2024 $ 33.1 $ 40.9 $ (9.6) $ (4.1) Increase (decrease) in 2025 from: Lift truck gross profit (35.1) (27.0) (7.2) (1.4) Lift truck selling, general and administrative expenses 8.2 8.0 (0.1) 0.3 Restructuring and impairment charges 0.2 (0.8) — 1.0 Bolzoni operations (4.1) — — — 2025 $ 2.3 $ 21.1 $ (16.9) $ (4.2) The Company recognized an operating profit of $2.3 million in the third quarter of 2025 compared to $33.1 million in the third quarter of 2024. The decrease in Lift Truck operating profit was primarily due to the unfavorable impact of tariff costs of approximately $40 million and lower volume, partially offset by the Company’s pricing actions. The decreases were partially offset by lower selling, general and administrative expenses primarily related to decreased incentive compensation costs. Operating profit in the Americas decreased to $21.1 million in the third quarter of 2025 compared with $40.9 million in the third quarter of 2024. The decrease was due to lower gross profit primarily from lower volume, lower overhead absorption rates tied to lower production volume and the unfavorable impact of tariff costs of approximately $40 million, partially offset by the Company’s pricing actions. The decreases were partially offset by lower selling, general and administrative expenses primarily related to decreased incentive compensation costs. EMEA recognized an operating loss of $16.9 million in the third quarter of 2025 compared to $9.6 million in the third quarter of 2024. The increase in operating loss was primarily due to unfavorable pricing, lower parts volume and an increase in material and freight costs. The operating loss in JAPIC was $4.2 million in the third quarter of 2025 compared with $4.1 million in the third quarter of 2024 as lower gross profit was offset by lower restructuring and impairment charges. Bolzoni's operating profit decreased to $2.1 million in the third quarter of 2025 compared with $6.2 million in the third quarter of 2024, primarily due to lower unit volumes and lower overhead absorption rates tied to lower production levels as well as higher employee-related costs included in selling, general and administrative expenses. The Company recognized a net loss attributable to stockholders of $2.3 million in the third quarter of 2025 compared with net income attributable to stockholders of $17.2 million in the third quarter of 2024. The decline was primarily the result of lower operating profit. The Company reported an income tax benefit of $2.9 million in the third quarter of 2025, which includes the impact of U.S. tax legislation enacted on July 4, 2025. See Note 5, Income Taxes , to the unaudited condensed consolidated financial statements for further discussion. 26 Table of Contents First Nine Months of 2025 Compared with First Nine Months of 2024 The following table identifies the components of change in revenues for the first nine months of 2025 compared with the first nine months of 2024: Revenues Lift truck HY Americas EMEA JAPIC 2024 $ 3,240.7 $ 2,422.9 $ 532.2 $ 137.7 Increase (decrease) in 2025 from: Lift Truck Unit volume and product mix (449.1) (350.9) (104.5) 6.3 Price 0.4 9.6 (9.3) 0.1 Parts (3.4) 0.4 (4.3) 0.5 Foreign currency (2.2) (6.5) 6.0 (1.7) Other 59.4 63.6 (3.5) (0.7) Bolzoni revenues (38.3) — — — Eliminations 38.6 — — — 2025 $ 2,846.1 $ 2,139.1 $ 416.6 $ 142.2 Revenues decreased 12.2% to $2,846.1 million in the first nine months of 2025 from $3,240.7 million in the first nine months of 2024. The decrease was primarily due to a decline in unit volume, mainly in the Americas and EMEA. The Company believes the lift truck market continues to reflect a more cautious customer approach amid ongoing economic uncertainty with increased pressure from low-cost foreign competitors. The decrease was partially offset by higher other revenues, including improved fleet services revenue. Bolzoni revenues decreased in the first nine months of 2025 compared with the first nine months of 2024, primarily due to lower unit volume. The following table identifies the components of change in operating profit for the first nine months of 2025 compared with the first nine months of 2024: Operating Profit (Loss) Lift truck HY Americas EMEA JAPIC 2024 $ 212.5 $ 213.6 $ 0.4 $ (15.3) Increase (decrease) in 2025 from: Lift truck gross profit (179.9) (130.0) (45.9) (4.3) Lift truck selling, general and administrative expenses 6.6 9.1 (2.9) 0.4 Restructuring and impairment charges (15.7) (17.4) 1.6 0.1 Bolzoni operations (8.4) — — — 2025 $ 15.1 $ 75.3 $ (46.8) $ (19.1) The Company's operating profit decreased from $212.5 million in the first nine months of 2024 to $15.1 million in the first nine months of 2025. The decrease in operating profit was primarily due to lower gross profit, mainly from lower volume, the unfavorable impact of approximately $60 million of tariff costs, as well as lower overhead absorption rates tied to lower production volume. Additionally, the company recognized $16.9 million in restructuring and impairment charges in connection with the strategic realignment of Nuvera and programs initiated in 2024 to streamline the Company's manufacturing footprint and optimize its operations. See Note 15, Restructuring and Impairment Charges , to the Company's unaudited condensed consolidated financial statements for further discussion. Operating profit in the Americas decreased in the first nine months of 2025 compared with the first nine months of 2024, primarily due to decreased gross profit, mainly from lower volume, the unfavorable impact of approximately $60 million of tariff costs, as well as lower overhead absorption rates tied to lower production volume. In addition, $17.6 million in restructuring and impairment charges were recognized in the Americas during the first nine months of 2025. 27 Table of Contents EMEA had an operating loss of $46.8 million in the first nine months of 2025 compared with an operating profit of $0.4 million the first nine months of 2024. The change was mainly due to lower gross profit from lower unit volume, lower pricing and a shift in sales to lower-margin products. Higher material and freight costs as well as lower overhead absorption rates tied to lower production volume also contributed to the decline. Selling general and administrative expenses were higher, primarily as a result of increased marketing and sales costs. JAPIC's operating loss increased to $19.1 million in the first nine months of 2025 from $15.3 million in the first nine months of 2024, primarily due to lower gross profit from unfavorable foreign currency, higher material and freight costs and lower unit volume, partially offset by lower selling, general and administrative expenses. Bolzoni's operating profit decreased to $5.1 million in the first nine months of 2025 compared with $13.5 million in the first nine months of 2024, primarily due to lower unit volumes as well as lower overhead absorption rates tied to lower production volume. Additionally, selling general and administrative expenses were higher as a result of increased employee-related costs. The Company recognized a net loss attributable to stockholders of $7.6 million in the first nine months of 2025 compared with net income attributable to stockholders $132.0 million in the first nine months of 2024. The decline was primarily the result of lower operating profit. LIQUIDITY AND CAPITAL RESOURCES Cash Flows The following tables detail the changes in cash flow for the nine months ended September 30, 2025 compared to the same period in the prior year: 2025 2024 Change Operating activities: Net Income (Loss) $ (6.4) $ 133.5 $ (139.9) Depreciation and amortization 34.1 35.8 (1.7) Stock-based compensation 8.3 21.9 (13.6) Restructuring and impairment charges 16.9 1.2 15.7 Dividends from unconsolidated affiliates 7.9 4.4 3.5 Other operating activities 7.2 23.0 (15.8) Changes in assets and liabilities Accounts receivable (9.9) (38.2) 28.3 Inventories 49.8 (41.5) 91.3 Other current assets 3.0 0.1 2.9 Accounts payable and other liabilities (81.3) (50.2) (31.1) Net cash provided by operating activities 29.6 90.0 (60.4) Investing activities: Expenditures for property, plant and equipment (38.9) (29.9) (9.0) Proceeds from the sale of assets 1.7 1.4 0.3 Business acquisition, net of cash acquired (2.6) (2.2) (0.4) Net cash used for investing activities (39.8) (30.7) (9.1) Cash flow before financing activities $ (10.2) $ 59.3 $ (69.5) Net cash provided by operating activities decreased $60.4 million in the first nine months of 2025 compared with the first nine months of 2024, primarily due to the change in net income (loss) and a higher use of cash in other liabilities primarily due to increased employee-related payments, including incentive compensation, in the first nine months of 2025. This was partially offset by reduced inventory levels mainly from lower revenues, which more than offset the unfavorable impact of currency and tariffs during the first nine months of 2025 compared with the first nine months of 2024. In addition, accounts receivable decreased primarily from lower revenue volume. The change in net cash used for investing activities during the first nine months of 2025 compared with the first nine months of 2024 was mainly due to higher capital expenditures. 28 Table of Contents 2025 2024 Change Financing activities: Net increase (decrease) of long-term debt and revolving credit agreements $ 8.4 $ (33.9) $ 42.3 Cash dividends paid (20.2) (19.2) (1.0) Purchase of treasury stock (4.5) (9.1) 4.6 Financing fees paid (2.1) — (2.1) Net cash used for financing activities $ (18.4) $ (62.2) $ 43.8 The change in net cash used for financing activities was primarily due to net borrowings under the Company's revolving credit facilities during the first nine months of 2025 compared to net repayments in the first nine months of 2024. Financing Activities During the second quarter of 2025, the Company entered into an amended and restated agreement for a $300.0 million secured, floating-rate revolving credit facility (the “Facility”). The Facility consists of a domestic revolving credit facility in the initial amount of $210.0 million and a foreign revolving credit facility in the initial amount of $90.0 million. The Facility matures on June 24, 2030. The Facility replaced the Company’s previous revolving credit facility, which was set to mature in June 2026. The Facility can be increased to 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 $1.1 billion as of September 30, 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. The Facility limits the payment of dividends and other restricted payments the Company may make unless certain total excess availability and/or fixed charge coverage ratio thresholds, each as set forth in the Facility, are satisfied. 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, 2025, the Company was in compliance with the covenants in the Facility. Key terms of the Facility as of September 30, 2025 were as follows: FACILITY U.S. borrowing capacity $ 210.0 Non-U.S. borrowing capacity 90.0 Less: outstanding amount 69.5 Less: availability restrictions 5.4 Availability $ 225.1 Applicable margins, as defined in agreement U.S. base rate loans 0.25% to 0.75% Term SOFR, EURIBOR and non-U.S. base rate loans 1.25% to 1.75% Applicable margins, for amounts outstanding U.S. base rate loans 0.50% Term SOFR loans 1.50 % Non-U.S. base rate loans 1.50% Applicable interest rate, for amounts outstanding U.S. base rate 7.75% Term SOFR 5.70% Facility fee, per annum on unused commitment 0.25% 29 Table of Contents The Company also has a $225.0 million term loan (the "Term Loan"), which matures 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. The obligations under the Term Loan are generally secured by a first priority lien on the present and future shares of capital stock, material real property, fixtures and general intangibles consisting of intellectual property and a second priority lien on U.S. 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 $0.9 billion as of September 30, 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, 2025, the Company was in compliance with the covenants in the Term Loan. Key terms of the Term Loan as of September 30, 2025 were as follows: TERM LOAN Outstanding $ 215.0 Less: discounts and unamortized deferred financing fees 2.3 Net amount outstanding $ 212.7 Applicable margins, as defined in agreement U.S. base rate loans 2.50% SOFR 3.50% SOFR adjustment, as defined in agreement 0.11% SOFR floor 0.50% Applicable interest rate, for amounts outstanding 7.78% The Company had other debt outstanding, excluding finance leases, of approximately $162.7 million at September 30, 2025. In addition to the excess availability under the Facility of $225.1 million, the Company had remaining availability of $49.6 million related to other non-U.S. revolving credit agreements at September 30, 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 the foreseeable future thereafter. Contractual Obligations, Contingent Liabilities and Commitments Since December 31, 2024, there have been no significant changes in the total amount of the Company's contractual obligations or commercial commitments, or the timing of cash flows in accordance with those obligations, as reported on page 26 in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Capital Expenditures The following table summarizes actual and planned capital expenditures: Nine Months Ended September 30, 2025 Planned for Remainder of 2025 Planned 2025 Total Actual 2024 Lift truck business $ 34.2 $ 11-16 $ 45-50 $ 40.9 Bolzoni 4.7 0-5 5-10 6.9 $ 38.9 $ 11-21 $ 50-60 $ 47.8 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. Management will closely monitor market conditions and may adjust investments levels and timing as market visibility improves. 30 Table of Contents 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: SEPTEMBER 30, 2025 DECEMBER 31, 2024 Change Cash and cash equivalents $ 71.1 $ 96.6 $ (25.5) Other net tangible assets 863.6 750.5 113.1 Intangible assets 33.0 33.1 (0.1) Goodwill 55.5 54.6 0.9 Net assets 1,023.2 934.8 88.4 Total debt (467.8) (440.7) (27.1) Total temporary and permanent equity $ 555.4 $ 494.1 $ 61.3 Debt to total capitalization 46 % 47 % (1) % OUTLOOK The Company’s Q4 2025 outlook is based on a set of assumptions, including the anticipated impact of tariffs and related mitigation efforts to help improve financial results. Proactive measures such as price increases, cost reductions through adjustments in global product sourcing, supply chain enhancements, and cost optimization programs are expected to partially offset increased tariff-related expenses. Key assumptions for the outlook include: 1. U.S. tariffs in effect as of September 5, 2025, including Chinese tariffs at 79%, used as the baseline, 2. inclusion of Section 232 tariff for steel and steel derivatives, 3. current Section 301 tariff exemption for lift truck parts not extended beyond November 29, 2025, 4. no additional tariffs will be added globally, 5. company demand forecasts are based on bookings trends, backlog levels and market data, and 6. the successful implementation of the Company’s proactive initiatives outlined above. Recent informal announcements suggest that Chinese tariff levels will be reduced, including an extension of Section 301 tariff exemptions to November 2026, which would have a favorable financial impact of $2 million to $3 million in Q4 2025, compared to the above assumptions. The Company’s financial outlook continues to be shaped by the considerable and evolving impact of tariffs on its costs, product demand and overall operating results. While the Company is deploying significant mitigation strategies, tariffs remain a substantial financial challenge. Persistent uncertainty around future tariff policies makes it challenging to estimate the final impact, which is expected to remain negative through the foreseeable future. Nevertheless, the Company is committed to disciplined cost controls, pricing and cost alignment, and pursuing other broad initiatives to help moderate these pressures. Management remains focused on navigating the current environment and positioning the Company for long-term profitable growth. Lift Truck Business During Q3 2025, the total lift truck market contracted in all geographic regions and classes compared to Q2 2025, reflecting a more cautious customer approach amid ongoing economic uncertainty. The Company believes many customers are deferring capital expenditure, resulting in delayed purchasing decisions and a temporary softening in lift truck order activity. Despite the broader lift truck market contraction, the Company experienced an uptick in booking activity, with improvements over both the prior year and previous quarter. A portion of this dollar increase is attributable to the increased pricing on the Company’s trucks due to tariff-related material cost increases. Dollar value bookings improved to $380 million, up from $330 million in the prior quarter, driven by gains in both the EMEA and JAPIC regions, while bookings in the Americas remained stable at relatively low levels. Bookings improved across all product classes. 31 Table of Contents Compared to Q3 2024, dollar value bookings increased modestly, primarily in the Americas, in part due to lift truck market growth led by the warehouse segment. The Company's Class 1 bookings grew, positioning it for further expansion in the warehouse segment. The Company initially expected a factory booking demand recovery to start in Q3 2025, but it has been slow to materialize. Mixed market demand indicators are contributing to cautious expectations for future production and revenue growth over the next few quarters. If customers continue to require shipments at current levels, the Company expects factory bookings to increase in the near future. The Company’s key customers’ purchasing decisions are largely tied to macroeconomic factors, including expectation for lower interest rates and favorable tariff negotiations with countries that most impact industrial supply chains. Customer quoting activity coupled with current shipment rates suggests underlying demand, but that demand is not likely to translate into higher booking rates until macroeconomic uncertainty is reduced. During this period of lower market activity, the Company is taking proactive steps to safeguard its competitive position, implementing targeted actions to increase bookings and truck sales. The Company is executing focused initiatives to improve quote closure rate, guided by our two missions, delivering optimal solutions and excellent customer care. At the end of Q3 2025, the Company’s backlog was $1.35 billion, down from $1.65 billion at the end of Q2 2025, as shipments outpaced new bookings, particularly in the Americas. These bookings and backlog reductions were driven by a reduced quantity of trucks partially offset by increased truck values related to higher costs. Unfavorable currency effects have further diminished the real value of backlog, intensifying the effect of lower truck volume. Given production scheduling requirements and the lower truck bookings, the Company anticipates further backlog degradation in the near term. If shipments continue to outpace new bookings by a significant margin due to ongoing weaker demand, the Company will consider the need for additional actions to better align its cost structure with the evolving market environment. Sustaining a backlog that supports the current multi-month production schedule is increasingly difficult and the Company must now work to align its supply chain and production levels with the lower market demand environment. As a result, the Company is moderating near-term production expectations to help preserve manufacturing efficiency, optimize inventory levels, and maintain an appropriate backlog level. The competitive landscape is also evolving, with increased pressure from low-cost foreign competitors in regions like South America and Europe particularly for smaller, standard and value configuration Class 5 products. These dynamics are likely to compress product margins in affected markets. In response, the Company has expanded our modular and scalable models to support the full range of customer applications, which support margin preservation while allowing for better competitive positioning across the product range. Introducing new products including warehouse products and truck technologies are also expected to provide further competitive differentiation across all global markets. As customer confidence returns and capital spending resumes over the next several quarters, the Company remains committed to maintaining a high level of customer engagement, prioritizing innovation and delivering differentiated solutions that foster long-term market share growth. Operational improvement projects initiated in 2024 to streamline the Company's manufacturing footprint and optimize its operations are progressing, although at a slower pace, with $2.4 million spent in the first nine months of 2025. The Company expects to incur an additional $3 million in the fourth quarter of 2025, and between $12 million to $25 million in 2026. Total project expenditure estimates are in line with prior guidance, with some expected shifts from 2025 to 2026. Initial benefits from these programs are expected to begin in 2026 but will likely be offset by operational inefficiencies from lower production volumes. By 2027, these fully implemented programs are expected to generate significant annualized income and cash benefits ranging between $30 million to $40 million. These savings are expected to significantly offset the negative impact from future market cyclicality. Savings estimates are based on current volume and cost assumptions. Operating expenses in Q4 2025 are expected to remain consistent with the year-to-date run rate, resulting in a modest year-over-year decrease. This is primarily due to lower incentive compensation and cost savings from Nuvera’s strategic realignment. These savings are partially offset by higher employee-related costs. Q4 2025 is anticipated to result in a moderate operating loss, compared to Q3 2025's operating profit, primarily due to moderated production rates. Tariff costs are projected to be consistent with Q3 2025 levels. To help mitigate these tariff-related 32 Table of Contents impacts, the Company continues to pursue global sourcing adjustments, supply chain improvements, and cost optimization actions. Bolzoni Bolzoni's Q4 2025 revenues are projected to slightly decrease compared to third quarter levels reflecting weaker demand in Bolzoni’s U.S. operations. Q4 2025 operating profit is projected to be slightly above Q3 2025 as attachment product mix improvements are expected to compensate for lower sales. Consolidated The financial discipline established over the past several years has positioned the Company to navigate challenging market conditions and deliver more stable financial results. The Company continues to target a 7% operating profit margin over the business cycle. However, ongoing market uncertainty has impacted bookings and revenue while tariffs have raised costs sharply. As a result, near-term results are expected to fall well below this target. As lift truck market demand remains low, the Company is taking steps to mitigate the near-term financial impact with prudent cost management and operational discipline. Over the longer-term, the Company aims to improve its financial results during economic downturns, focusing on fixed cost reductions, increased revenue resiliency, and innovative new products that enable profitable share gains over time. The Company continues to focus on generating strong operating cash flow and accretive capital deployment across the business cycle. To support these goals, the Company is actively implementing initiatives to drive working capital efficiency, including an intense focus on the timely realignment of production and working capital processes as production volumes decrease. The Company expects to make further progress in Q4 2025. Working capital optimization and cost-saving efforts should support a solid cash flow from operations, well below 2024 levels, despite the projected lower 2025 net income. Effective investments are critical to the Company’s ongoing transformation. This involves capital expenditures for advanced new products, manufacturing efficiencies and information technology upgrades. For 2025, capital expenditures are forecasted to range between $50 million and $60 million. As the Company continues to generate cash, it remains committed to its disciplined capital allocation framework. This includes continued debt reduction, executing strategic investments to support profitable long-term growth, and delivering sustainable value and strong returns to shareholders. Long-Term Objectives Hyster-Yale's vision is to transform the way the world moves materials from Port to Home. It strives to do this through its two customer promises: first, to provide optimal customer solutions, and second, to provide exceptional customer care. The Company is focused on executing 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 while achieving long-term revenue and operating profit growth. The Company believes key projects will contribute to an increased and sustainable lift truck and attachment competitive advantage over time. EFFECTS OF FOREIGN CURRENCY The Company operates internationally and enters into transactions denominated in foreign currencies. As a result, the Company is subject to the variability that arises from exchange rate movements. The effects of foreign currency fluctuations on revenues, operating profit and net income (loss) are addressed in the previous discussions of operating results. See also Item 3, "Quantitative and Qualitative Disclosures About Market Risk,” in Part I of this Quarterly Report on Form 10-Q. FORWARD-LOOKING STATEMENTS The statements contained in this Form 10-Q that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. 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 33 Table of Contents as a result of inflation or otherwise, including materials, critical components and transportation costs and shortages, the effects 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) impacts resulting from increased trade barriers and restrictions on international trade, including as a result of previously announced, and potentially new, changes to U.S. trade policy and tariffs as well as retaliatory or other 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.