What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-05-05 compared with 2025-11-04 · 161 added, 208 removed, 181 unchanged (67% of the section changed)

2 unchanged sentences

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.

("Hyster-Yale" or the "Company") and its subsidiaries, including its operating companies, Hyster-Yale Materials Handling, Inc.

("HYMH") and Bolzoni S.p.A.

("Bolzoni Group" or "Bolzoni"), 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, parts, fleet management services, technology and energy solutions.

Through HYMH, the Company designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments, parts, fleet management services, technology and energy solutions marketed globally, primarily under the Hyster ® , Yale ® and Nuvera ® brand names, mainly to independent Hyster ® and Yale ® retail dealerships.

The Company's distribution network consisted of approximately 260 independent dealers as of March 31, 2026.

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.

Lift trucks and component parts are manufactured and assembled in the United States ("U.S."), 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.

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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 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.

Bolzoni Group manufactures precision-engineered lift truck attachments, forks, masts and lift tables designed for handling delicate and specialized loads.

These solutions are marketed under the Bolzoni ® , Auramo ® and Meyer ® brand names and the Silver Line product portfolio.

Bolzoni Group also produces components for lift truck manufacturers.

Bolzoni products are manufactured in Italy, the U.S., China, Germany, Finland and Brazil.

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

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.

As a result, the Company revised its operating segments to reflect changes in the way the chief operating decision maker manages and evaluates the business.

These changes did not impact the Company's condensed consolidated financial statements, but did impact its reportable segments.

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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,

2025 2024 % Change 2025 2024 % Change

THREE MONTHS ENDED Favorable / (Unfavorable)

2026 2025 % Change

Americas $ 578.4 $ 698.9 (17.2) %

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Lift truck business 739.7 864.4 (14.4) %

Bolzoni 87.0 97.6 (10.9) % 257.9 296.2 (12.9) %

Bolzoni Group 82.9 80.3 3.2 %

Eliminations (27.4) (34.3) (20.1) %

$ 795.2 $ 910.4 (12.7) %

Gross profit (loss)

Americas $ 93.7 $ 142.5 (34.2) %

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Lift truck business 104.3 158.8 (34.3) %

Bolzoni 21.4 23.3 (8.2) % 61.3 67.5 (9.2) %

Bolzoni Group 20.5 18.5 10.8 %

Eliminations — 0.4 n.m.

$ 124.8 $ 177.7 (29.8) %

$ 155.9 $ 192.9 (19.2) % $ 501.8 $ 687.9 (27.1) %

Selling, general and administrative expenses

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Lift truck business 130.6 138.3 5.6 %

Bolzoni 19.3 17.1 (12.9) % 56.2 54.0 (4.1) %

Bolzoni Group 20.6 17.9 (15.1) %

$ 151.2 $ 156.2 3.2 %

Restructuring and impairment charges (reversals)

Americas $ 1.0 $ 0.2 (400.0) % $ 17.6 $ 0.2 n.m.

Americas $ 1.6 $ 0.7 (128.6) %

EMEA — (1.3) 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.

JAPIC — 0.8 n.m.

Lift truck business 1.6 0.2 (700.0) %

Bolzoni Group — — n.m.

Eliminations — — n.m.

$ 1.0 $ 1.2 n.m.

$ 16.9 $ — n.m.

$ 1.6 $ 0.2 (700.0) %

Operating profit (loss)

Americas $ (1.7) $ 42.5 (104.0) %

EMEA (16.9) (9.6) (76.0) % (46.8) 0.4 n.m.

EMEA (19.1) (14.9) (28.2) %

JAPIC (7.1) (7.3) 2.7 %

Lift truck business (27.9) 20.3 (237.4) %

Bolzoni 2.1 6.2 (66.1) % 5.1 13.5 (62.2) %

Bolzoni Group (0.1) 0.6 (116.7) %

Eliminations — 0.4 n.m.

$ (28.0) $ 21.3 (231.5) %

$ 2.3 $ 33.1 (93.1) % $ 15.1 $ 212.5 (92.9) %

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

SEPTEMBER 30, SEPTEMBER 30,

2025 2024 % Change 2025 2024 % Change

- not meaningful

THREE MONTHS ENDED Favorable / (Unfavorable)

2026 2025 % Change

Interest expense $ 7.2 $ 7.7 6.5 %

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Diluted earnings (loss) per share $ (1.71) $ 0.48 (456.3) %

Reported income tax rate n.m.

- not meaningful

Reported income tax rate 5.6 % 48.2 %

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

As of March 31, 2026, substantially all of the Company's backlog is expected to be sold within the next twelve months.

THREE MONTHS ENDED

Bookings, approximate sales value $ 580 $ 590

Backlog, approximate sales value $ 1,410 $ 1,910

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:

First Quarter of 2026 Compared with First Quarter of 2025

The following table identifies the components of change in revenues for the first quarter of 2026 compared with the first quarter of 2025:

HY Americas EMEA JAPIC

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2026 $ 795.2 $ 578.4 $ 126.0 $ 35.3

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.

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:

Revenues decreased 12.7% to $795.2 million in the first quarter of 2026 from $910.4 million in the first quarter of 2025.

The decrease in Lift Truck revenues was primarily due to a shift in the mix of sales to lighter-duty, lower-priced models, primarily in the Americas and EMEA.

This shift reflects the ongoing market demand for lighter-duty, lower-priced trucks which has led to reduced shipment volumes of the traditional, higher-priced models across all Lift Truck segments.

In addition, the Company believes macroeconomic challenges, including ongoing economic uncertainty and cautious customer spending, further reduced potential revenues in the first quarter of 2026.

The decline in Lift Truck revenues was partially offset by favorable currency movements and favorable pricing, mainly in the Americas, in the first quarter of 2026.

Bolzoni Group's revenues increased in the first quarter of 2026 compared with the first quarter of 2025, primarily due to favorable foreign currency movements which more than offset a shift in sales to lower-priced products and lower unit volume.

The following table identifies the components of change in operating profit (loss) for the first quarter of 2026 compared with the first quarter of 2025:

Operating Profit (Loss)

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2026 $ (28.0) $ (1.7) $ (19.1) $ (7.1)

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 Company recognized an operating loss of $28.0 million in the first quarter of 2026 compared to operating profit of $21.3 million in the first quarter of 2025.

The decrease in Lift Truck operating profit was primarily due to the unfavorable impact of tariff costs of approximately $30 million in the Americas, lower parts volume in EMEA, and the shift in sales to lower-duty units, partially offset by the Company’s pricing actions in the Americas and the favorable impact of higher capitalized material costs.

In addition, selling, general and administrative expenses were lower in all of the Lift Truck segments primarily related to reduced employee-related costs from lower headcount and lower incentive compensation estimates.

Bolzoni recognized an operating loss of $0.1 million in the first quarter of 2026 compared with operating profit of $0.6 million in the first quarter of 2025, primarily due to increased employee-related costs included in higher selling, general and administrative expenses.

The Company recognized a net loss attributable to stockholders of $30.5 million in the first quarter of 2026 compared with net income attributable to stockholders of $8.6 million in the first quarter of 2025.

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.

The Company reported an income tax benefit of $1.8 million in the first quarter of 2026.

See Note 5, Income Taxes , to the unaudited condensed consolidated financial statements for further discussion.

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:

HY Americas EMEA JAPIC

2024 $ 3,240.7 $ 2,422.9 $ 532.2 $ 137.7

Increase (decrease) in 2025 from:

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 — — —

$ 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)

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.

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

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:

The following tables detail the changes in cash flow for the three months ended March 31, 2026 compared to the same period in the prior year:

2026 2025 Change

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Accounts payable and other liabilities (12.2) (54.5) 42.3

Net cash provided by operating activities 29.6 90.0 (60.4)

Net cash used for operating activities (32.9) (36.4) 3.5

Investing activities:

1 unchanged sentence

Proceeds from the sale of assets 0.5 0.3 0.2

Business acquisition, net of cash acquired (2.6) (2.2) (0.4)

Net cash used for investing activities (9.3) (10.3) 1.0

Cash flow before financing activities $ (42.2) $ (46.7) $ 4.5

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.

Net cash used for operating activities decreased $3.5 million in the first three months of 2026 compared with the first three months of 2025, primarily due to the lower use of cash in other liabilities primarily due to reduced employee-related payments, including incentive compensation, in the first three months of 2026.

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.

These amounts were partially offset by the change in net income (loss) and other operating activities.

The change in net cash used for investing activities during the first three months of 2026 compared with the first three months of 2025 was mainly due to lower capital expenditures.

2026 2025 Change

Financing activities:

Net increase (decrease) of long-term debt and revolving credit agreements $ 8.4 $ (33.9) $ 42.3

Net increase of long-term debt and revolving credit agreements $ 8.4 $ 36.6 $ (28.2)

Cash dividends paid (6.4) (6.2) (0.2)

Purchase of treasury stock (0.7) (4.5) 3.8

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.

Net cash provided by financing activities $ 1.3 $ 25.9 $ (24.6)

The change in net cash provided by financing activities was primarily due to a smaller increase in net borrowings under the Company's revolving credit facilities during the first three months of 2026 compared to the first three months of 2025.

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 Company has a $300.0 million secured, floating-rate revolving credit facility (the “Facility”) that expires in June 2030.

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 approximate book value of assets held as collateral under the Facility was $1.0 billion as of March 31, 2026.

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, 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:

At March 31, 2026, the Company was in compliance with the covenants in the Facility.

Key terms of the Facility as of March 31, 2026 were as follows:

borrowing capacity $ 210.0

20 unchanged sentences

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.

The approximate book value of assets held as collateral under the Term Loan was $0.7 billion as of March 31, 2026.

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:

At March 31, 2026, the Company was in compliance with the covenants in the Term Loan.

Key terms of the Term Loan as of March 31, 2026 were as follows:

Outstanding $ 215.0

6 unchanged sentences

Applicable interest rate, for amounts outstanding 7.28%

The Company had other debt outstanding, excluding finance leases, of approximately $162.7 million at September 30, 2025.

The Company had other debt outstanding, excluding finance leases, of approximately $172.8 million at March 31, 2026.

In addition to the excess availability under the Facility of $196.6 million, the Company had remaining availability of $50.5 million related to other non-U.S.

revolving credit agreements at September 30, 2025.

revolving credit agreements at March 31, 2026.

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.

3 unchanged sentences

The following table summarizes actual and planned capital expenditures:

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Planned for Remainder of 2026

8 unchanged sentences

The Company's capital structure is presented below:

SEPTEMBER 30, 2025

MARCH 31, 2026

DECEMBER 31, 2025

7 unchanged sentences

Debt to total capitalization 53 % 50 % 3 %

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:

tariffs in effect as of September 5, 2025, including Chinese tariffs at 79%, used as the baseline,

inclusion of Section 232 tariff for steel and steel derivatives,

current Section 301 tariff exemption for lift truck parts not extended beyond November 29, 2025,

no additional tariffs will be added globally,

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

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.

The Company expects 2026 to represent a year of sequential improvement, with the first half having lower shipment volumes, additional Section 232 tariffs, and broader macroeconomic pressures, followed by improvement in the second half driven by stronger bookings, adequate backlogs, and ongoing cost actions.

The Company’s 2026 outlook has been updated to reflect the introduction of additional Section 232 tariffs and the ongoing Iran conflict, which has contributed to higher material prices, supply chain disruptions, and increased uncertainty, affecting margins, product availability, and demand.

As a result, expectations originally communicated for 2026 have been reduced.

Key tariff‑related assumptions underlying the outlook include:

tariff policies in effect as of April 2026 serve as the baseline;

• continued application of Section 232 tariffs on steel, aluminum, copper, and certain derivative products, now including recent changes that expand tariff coverage and apply duties to the full customs value of covered products;

• continued application of Section 301 tariffs on Chinese‑origin goods, including lift truck components, with current product‑specific exclusions scheduled to expire in November 2026;

• the temporary global import surcharge imposed under Section 122 of the Trade Act of 1974, which replaced tariffs previously imposed under the International Emergency Economic Powers Act (“IEEPA”), is assumed to remain in effect through its statutory expiration in July 2026;

• no assumed benefit from potential tariff‑related recoveries due to uncertainty around timing and amount;

• no additional new tariffs or material escalation of existing tariff rates beyond current statutory authorities;

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

• the successful execution of the Company’s tariff mitigation and cost management initiatives.

Tariffs are expected to remain a material headwind throughout 2026.

While mitigation actions, including pricing initiatives, sourcing adjustments, and product‑cost reductions, are expected to partially offset higher tariff‑related costs, the Company does not expect to fully recover these impacts.

Tariff expenses are expected to increase in Q2 2026 before mitigation benefits, which are expected to become more meaningful in the second half of the year.

Operational Initiatives and Cost‑Reduction Programs

During the first quarter, the Company maintained a strong focus on operational efficiency, continuing to align its production footprint and organizational structure with market demand.

Efforts to improve competitiveness and profitability remain central, supported by Nuvera's strategic realignment, restructuring initiatives, and long-term manufacturing optimization projects.

Nuvera’s strategic realignment, completed in 2025, delivered $15 million in cost savings for 2025 and enabled the redeployment of resources toward higher-growth areas.

In Q4 2025, the Company launched a restructuring program targeting annualized cost reductions of $40–$45 million beginning in 2026.

By the end of Q1 2026, the Company began to see cost savings from this initiative, as reflected in the quarterly results.

These actions are expected to help address ongoing market pressures and position the Company for future growth as a leaner, more agile organization.

Manufacturing footprint optimization projects, initiated in late 2024, are progressing as expected.

The Company expects additional costs of $10–$12 million in 2026 and $3–$6 million in 2027.

While initial benefits in 2026 are projected to be minimal due to lower production volumes during the transition, the Company anticipates significant improvements beginning in 2027, with annualized income and cash benefits of $30–$40 million expected in 2028 once these programs are fully implemented.

Overall, the Company’s comprehensive cost-reduction strategy balances immediate actions with longer-term initiatives, driving operational efficiency and organizational agility while maintaining investments in key strategic programs.

As a result, the Company is positioned to achieve substantial savings, support sustainable growth, and enhance financial resilience.

Projected cost savings are stated prior to expected increases in operating expenses, which are anticipated to be in line with inflation.

• Restructuring program:

Targeting $40–$45 million in annualized cost reductions expected in 2026.

The Company has begun to see these cost reductions in its Q1 2026 results.

• Manufacturing footprint optimization:

Expected savings of $20–$30 million in 2027, fully implemented by 2028 with expected annualized benefits of $30–$40 million.

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.

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

impacts, the Company continues to pursue global sourcing adjustments, supply chain improvements, and cost optimization actions.

Bolzoni's Q4 2025 revenues are projected to slightly decrease compared to third quarter levels reflecting weaker demand in Bolzoni’s U.S.

Q4 2025 operating profit is projected to be slightly above Q3 2025 as attachment product mix improvements are expected to compensate for lower sales.

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.

Since Q1 2025, the global lift truck industry has expanded across all major geographic regions, with the most notable growth occurring in the JAPIC market.

Despite this industry-wide expansion, the Company’s performance has been lower than the overall market, in both dealer and retail sales.

However, the Company has seen encouraging momentum in North America, particularly with increased bookings of Class 5 trucks.

The Company expects bookings to strengthen significantly in the second half of 2026 compared to the first half of 2026;

with a significant impact coming from the full availability and market understanding of the Company's new value and standard product offerings.

The introduction of additional Section 232 tariffs and the ongoing Iran conflict have prompted the Company to revise its projections.

Tariffs and the Iran conflict have contributed to increased material prices, supply chain disruptions, and heightened uncertainty, all of which have affected margin, product availability, and overall demand.

As a result, second half financial results appear lower than the Company expected in Q4 2025.

Booking trends at the start of 2026 have been encouraging.

Q1 2026 bookings surpassed Q4 2025, with Americas showing steady improvement and EMEA delivering strong gains, supported by increased quoting and higher conversion rates from quotes to orders.

Looking ahead, the Company expects demand for bookings to gradually increase as customer confidence returns and replacement-driven activity increases due to aging fleets and greater maintenance needs.

Backlog began to build in Q1 2026, due to an improvement in bookings after the Q3 2025 cycle low.

Although shipments and bookings in Q1 2026 did not reach initial targets and backlog remains at or below the typical three- to four-month range, this recovery is helping position the Company for increased production rates starting in Q3 2026.

While bookings and backlog have not yet returned to anticipated levels, the positive momentum in Q1 2026 strengthens the Company's confidence in the ongoing recovery.

The Company will continue to monitor market dynamics and adjust its outlook as customer sentiment and broader economic conditions require.

Order activity typically has an impact on revenue with a lag due to the timing between bookings, production, and shipments.

In the first quarter, bookings exceeded orders, allowing backlog to grow.

Management anticipates Q2 2026 shipments will be the low point of the current cycle, with improved bookings leading to a gradual rebuild of backlog to target levels.

Q3 2026 is expected to bring the first significant improvement in shipments compared to 2025, and higher volumes are anticipated in the second half of the year.

The Company believes this should support a more normalized operating cadence and greater manufacturing efficiency.

Margins are expected to improve compared to Q1 2026 as market conditions stabilize and the product mix begins to shift and prices begin to recover unanticipated tariff costs to some degree.

However, margins are not anticipated to return to the elevated levels experienced during the post-COVID pandemic high backlog period in 2023 and 2024.

The ongoing demand for lighter-duty, lower-priced models, often aggressively priced by foreign competitors, especially in South America and Europe, continues to have an impact on overall product mix and margin performance.

The Company has expanded its offerings to better serve these segments, and we are beginning to see market acceptance, with early introductions of newer models proving successful.

This initial traction positions the Company well for continued gains as broader market adoption increases.

Over time, the Company’s modular and scalable product portfolio is expected to continue to strengthen competitiveness and support margin recovery as volumes normalize, though not to the peak levels seen in the post-COVID period.

Tariff costs on steel, Chinese‑origin components, and other imports are expected to increase compared to Q1 2026 levels with the additional Section 232 tariffs.

The Company is actively evaluating additional mitigation actions, however tariffs are expected to continue to affect both the Company’s cost structure and customer purchasing behavior.

The Company expects a significant increase in tariff expenses in Q2 2026 for which mitigation actions, including pricing, sourcing initiatives, and product‑cost reductions implemented by the Company, will not yet be in place.

However, the second half of the year is expected to improve significantly, although the Company does not expect to fully offset all tariff‑related costs.

Ongoing operational and cost‑reduction initiatives are expected to generate year‑over‑year improvements in fixed manufacturing and operating expenses.

Combined with gradually improving shipment volumes, these actions are expected to support improved manufacturing effectiveness and a meaningful improvement in second half operating profit in 2026, despite a lower‑margin product mix.

The Company remains focused on disciplined execution, proactive cost management, and aligning its product portfolio with evolving market demand to strengthen its competitive position.

Bolzoni Group

Bolzoni Group is projected to achieve modest improvements in profitability in 2026.

Although revenues may decline slightly due to the planned phase-out of certain legacy components previously supplied to the Lift Truck business, the Company’s ongoing shift toward higher-margin attachment products and improved plant utilization are expected to drive margin expansion.

Management remains focused on optimizing the product mix and reinforcing operational discipline throughout its global facilities.

In Q2 2026, Bolzoni Group anticipates a slight uptick in revenue and a more pronounced increase in operating profit compared to Q1 2026.

This improvement is primarily attributed to the strong performance of higher-margin attachment products, as certain product introductions and advanced technology attachments gain traction in the market.

As Bolzoni Group advances its transition to a more profitable product mix, management expects Q2 2026 to mark a meaningful step forward in both revenue quality and overall profitability.

On a consolidated basis, the Company expects to deliver a modest full-year operating profit for 2026.

While the first half of the year is anticipated to be a significant loss position, driven by lower shipment volumes resulting from reduced bookings and backlog in 2025, as well as the impact of additional Section 232 tariffs, the Iran conflict, other macroeconomic pressures, and a low quarter tax rate the Company believes that Q2 2026 will represent its financial low point.

As the Company moves into the second half of 2026, strengthened booking activity, a recovering backlog and pricing adjustments are expected to fuel revenue growth.

In addition, higher-margin growth initiatives, ongoing cost-reduction efforts, and operational efficiency improvements are expected to drive a meaningful rebound in operating profit.

Management expects positive developments in the second‑half of the year to more than offset first half losses, resulting in a modest full-year operating profit and a higher full-year tax rate with improved full‑year financial performance compared to 2025.

The Company remains focused on liquidity management by optimizing working capital and maintaining strict control over capital and operating expenses.

In the first half of 2026, cash flow is expected to reflect increased usage due to higher tariffs and expenses tied to ramping up production;

however, these impacts are expected to partially offset by improved cash generation from inventory optimization in 2026.

Working capital efficiency is expected to improve due to closer alignment of production and inventory with current market conditions as the Company moves to higher production.

The Company anticipates meaningful operating cash flow in the second half of 2026, largely driven by a return to profitability and continued cost optimization.

Net income is expected to support positive cash flow in the latter half of the year.

Overall, cash flow from operations for full-year 2026 is projected to be moderately below 2025 levels.

While investment in modular development and critical capital equipment, including information technology, remains central to the Company’s ongoing transformation, the Company is prepared to adjust or defer certain projects if necessary.

This disciplined approach is expected to help the Company maintain liquidity to support a strong recovery in the second half of the year.

Capital expenditures for 2026 are projected to range from $55–$70 million, with spending carefully monitored and adjusted in line with production levels and market conditions.

As the Company generates cash in the future, the Company expects to apply our capital allocation framework by reducing leverage, pursuing strategic investments that support profitable growth, and delivering strong long-term returns to shareholders.

Long-Term Objectives

Hyster-Yale's vision is to transform the way the world moves materials from Port to Home.

The Company'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:

14 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 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.

(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 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) the Company's ability to recover previously paid IEEPA tariffs, (4) delays in manufacturing and delivery schedules, (5) reduction in demand for lift trucks, attachments and related parts and service on a global basis, including any cyclical reduction in demand in the lift truck industry, (6) customer acceptance of pricing, (7) customer acceptance of, changes in the costs of, or delays in the development of new products, (8) the ability of Hyster-Yale 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, (9) 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 Hyster-Yale's imports from China, as well as armed conflicts, including the Iran conflict, the Russia/Ukraine conflict, the Israel and Gaza conflict and/or the conflict in the Red Sea, and their regional effects, (10) 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, (11) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives and restructuring programs, (12) the successful commercialization of products and technology related to the energy solutions program, (13) political and economic uncertainties in the countries where the Company does business, as well as the effects of any withdrawals from such countries, (14) bankruptcy of or loss of major dealers, retail customers or suppliers, (15) introduction of new products by, more favorable product pricing offered by or shorter lead times available through competitors, (16) product liability or other litigation, warranty claims or returns of products, (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation, (18) the ability to attract, retain, and replace workforce and administrative employees, (19) disruptions resulting from natural disasters, public health crises, political crises or other catastrophic events, and (20) the ability to protect the Company’s information technology infrastructure against service interruptions, data corruption, cyber-based attacks or network breaches.

Quantitative and Qualitative Disclosures About Market Risk

See pages 30 and 31 and F-25 through F-28 of the Company's Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of the Company's derivative hedging policies and use of financial instruments.

There have been no material changes in the Company's market risk exposures since December 31, 2025.

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