What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-04 compared with 2026-05-05 · 168 added, 152 removed, 190 unchanged (63% of the section changed)

7 unchanged sentences

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 Company's distribution network consisted of approximately 250 independent dealers as of June 30, 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.

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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 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.

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 the industrial material handling market.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

3 unchanged sentences

The results of operations for the Company were as follows:

THREE MONTHS ENDED Favorable / (Unfavorable)

2026 2025 % Change

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

JUNE 30, JUNE 30,

2026 2025 % Change 2026 2025 % Change

Americas $ 596.2 $ 707.5 (15.7) % $ 1,174.6 $ 1,406.4 (16.5) %

2 unchanged sentences

Lift truck business 755.5 904.2 (16.4) % 1,495.2 1,768.6 (15.5) %

Bolzoni Group 82.9 80.3 3.2 %

Bolzoni 81.9 90.6 (9.6) % 164.8 170.9 (3.6) %

Eliminations (24.5) (38.2) (35.9) % (51.9) (72.5) (28.4) %

$ 812.9 $ 956.6 (15.0) % $ 1,608.1 $ 1,867.0 (13.9) %

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

JUNE 30, JUNE 30,

2026 2025 % Change 2026 2025 % Change

Americas $ 91.7 $ 129.9 (29.4) % $ 185.4 $ 272.4 (31.9) %

2 unchanged sentences

Lift truck business 105.5 146.8 (28.1) % 209.8 305.6 (31.3) %

Bolzoni Group 20.5 18.5 10.8 %

Bolzoni 22.0 21.4 2.8 % 42.5 39.9 6.5 %

Eliminations 0.1 — n.m.

0.1 0.4 (75.0) %

$ 127.6 $ 168.2 (24.1) % $ 252.4 $ 345.9 (27.0) %

Selling, general and administrative expenses

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Lift truck business 124.3 142.0 12.5 % 254.9 280.3 9.1 %

Bolzoni Group 20.6 17.9 (15.1) %

Bolzoni 20.0 19.0 (5.3) % 40.6 36.9 (10.0) %

Eliminations — 0 n.m.

$ 144.3 $ 161.0 10.4 % $ 295.5 $ 317.2 6.8 %

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Lift truck business 1.7 15.7 89.2 % 3.3 15.9 79.2 %

Bolzoni Group — — n.m.

Bolzoni — — n.m.

Eliminations — — n.m.

5 unchanged sentences

Lift truck business (20.5) (10.9) (88.1) % (48.4) 9.4 (614.9) %

Bolzoni Group (0.1) 0.6 (116.7) %

Bolzoni 2.0 2.4 (16.7) % 1.9 3.0 (36.7) %

Eliminations 0.1 — n.m.

0.1 0.4 (75.0) %

- not meaningful

THREE MONTHS ENDED Favorable / (Unfavorable)

2026 2025 % Change

$ (18.4) $ (8.5) (116.5) % $ (46.4) $ 12.8 (462.5) %

Interest expense $ 7.8 $ 7.9 1.3 % $ 15.0 $ 15.6 3.8 %

Other income $ (3.0) $ (3.2) (6.3) % $ (6.1) $ (6.4) (4.7) %

Net income (loss) attributable to stockholders $ (30.5) $ 8.6 (454.7) %

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

Reported income tax rate 5.6 % 48.2 %

Net loss attributable to stockholders $ (31.6) $ (13.9) (127.3) % $ (62.1) $ (5.3) (1,071.7) %

Diluted loss per share $ (1.76) $ (0.79) (122.8) % $ (3.48) $ (0.30) (1,060.0) %

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

THREE MONTHS ENDED

As of June 30, 2026, substantially all of the Company's backlog is expected to be sold within the next twelve months.

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

2026 2025 2026 2025

Bookings, approximate sales value $ 680 $ 330 $ 1,260 $ 920

Backlog, approximate sales value $ 1,580 $ 1,650 $ 1,580 $ 1,650

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:

Second Quarter of 2026 Compared with Second Quarter of 2025

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

HY Americas EMEA JAPIC

2025 $ 956.6 $ 707.5 $ 148.3 $ 48.4

Increase (decrease) in 2026 from:

Decrease in 2026 from:

Unit volume and product mix (152.4) (112.4) (31.4) (8.6)

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2026 $ 812.9 $ 596.2 $ 118.2 $ 41.1

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:

Revenues decreased 15.0% to $812.9 million in the second quarter of 2026 from $956.6 million in the second quarter of 2025.

The decrease in Lift Truck revenues was primarily due to lower unit volume within Class 1 and Class 4 products and a shift in the mix of sales to lower-intensity, lower-priced models, primarily in the Americas and EMEA.

This shift reflects continued 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.

Recently introduced low-intensity products continued to gain market acceptance and helped offset lower sales of higher-revenue products.

In addition, lower parts volume and other revenues, primarily in the Americas, also contributed to the decline in Lift Truck revenues.

The decline was partially offset by improved pricing and favorable currency movements in the second quarter of 2026 compared to the second quarter of 2025.

Bolzoni Group's revenues decreased in the second quarter of 2026 compared with the second quarter of 2025, primarily due to lower unit volume, partially offset by a shift in sales to higher-priced products and favorable foreign currency movements.

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

Operating Profit (Loss)

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2026 $ (18.4) $ 3.6 $ (18.4) $ (5.7)

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 $1.8 million in the first quarter of 2026.

The Company recognized an operating loss of $18.4 million in the second quarter of 2026 compared to $8.5 million in the second quarter of 2025.

The decrease was primarily due to lower unit volume, mainly in the Americas and EMEA, a shift in mix of sales to lower-duty units, and approximately $20 million of additional tariff-related costs in the second quarter of 2026 compared with the prior year's second quarter.

The unfavorable changes were partially offset by favorable pricing actions in the Americas and approximately $35 million of tariff-related recoveries recognized during the second quarter of 2026 related to amounts previously paid under the International Emergency Economic Powers Act ("IEEPA").

Selling, general and administrative expenses were lower across all Lift Truck segments, primarily related to reduced employee-related costs resulting from lower headcount and lower incentive compensation estimates.

In addition, the Company recognized lower restructuring and impairment charges in the second quarter of 2026 compared with the second quarter of 2025.

Bolzoni recognized an operating profit of $2.0 million in the second quarter of 2026 compared to $2.4 million in the second quarter of 2025.

The decrease was primarily due to increased employee-related costs included in selling, general and administrative expenses.

The Company recognized a net loss attributable to stockholders of $31.6 million in the second quarter of 2026 compared with net loss attributable to stockholders of $13.9 million in the second quarter of 2025.

The decline was primarily the result of lower operating profit and higher income tax expense.

The Company reported an income tax expense of $8.1 million in the second quarter of 2026.

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

First Six Months of 2026 Compared with First Six Months of 2025

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

HY Americas EMEA JAPIC

2025 $ 1,867.0 $ 1,406.4 $ 266.5 $ 95.7

Decrease in 2026 from:

Unit volume and product mix (282.8) (225.7) (34.3) (22.8)

Price 31.8 34.6 (2.5) (0.3)

Parts (19.0) (16.8) (4.0) 1.8

Foreign currency 21.6 1.8 17.7 2.1

Other (25.0) (25.7) 0.8 (0.1)

Bolzoni revenues (6.1) — — —

Eliminations 20.6 — — —

$ 1,608.1 $ 1,174.6 $ 244.2 $ 76.4

Revenues decreased 13.9% to $1,608.1 million in the first six months of 2026 from $1,867.0 million in the first six months of 2025.

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

This shift reflects continued market demand for lighter-duty, lower-priced trucks which has led to reduced shipment volumes of the traditional, higher-priced models.

The decline in Lift Truck revenues was partially offset by improved pricing and favorable currency movements in the first six months of 2026 compared to the first six months of 2025.

Bolzoni revenues decreased in the first six months of 2026 compared with the first six months of 2025, primarily due to lower unit volume, partially offset by favorable foreign currency movements.

The following table identifies the components of change in operating profit for the first six months of 2026 compared with the first six months of 2025:

Operating Profit (Loss)

HY Americas EMEA JAPIC

2025 $ 12.8 $ 54.2 $ (29.9) $ (14.9)

Increase (decrease) in 2026 from:

Lift truck gross profit (96.1) (87.0) (8.8) —

Lift truck selling, general and administrative expenses 25.4 21.4 2.8 1.2

Restructuring and impairment charges 12.6 13.3 (1.6) 0.9

Bolzoni operations (1.1) — — —

2026 $ (46.4) $ 1.9 $ (37.5) $ (12.8)

The Company recognized an operating loss of $46.4 million in the first six months of 2026 compared to operating profit of $12.8 million in the first six months of 2025.

The decrease in Lift Truck operating results was primarily due to a shift in the mix of sales to lower-duty units, mainly in the Americas, approximately $50 million of additional tariff-related costs during the first six months of 2026 compared to the first six months of 2025 and lower unit volume.

These unfavorable impacts were partially offset by pricing actions in the Americas and approximately $35 million of tariff-related recoveries recognized during the second quarter of 2026 related to amounts previously paid under IEEPA.

In addition, the Company recognized lower restructuring and impairment charges in the first six months of 2026 compared with the first six months of 2025.

Bolzoni's operating profit decreased to $1.9 million in the first six months of 2026 compared with $3.0 million in the first six months of 2025.

The decrease was 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 $62.1 million in the first six months of 2026 compared with $5.3 million in the first six months of 2025.

The decline was primarily the result of the decrease in operating profit (loss).

LIQUIDITY AND CAPITAL RESOURCES

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:

The following tables detail the changes in cash flow for the six months ended June 30, 2026 compared to the same period in the prior year:

2026 2025 Change

Operating activities:

Net Income (loss) $ (30.3) $ 8.7 $ (39.0)

Net loss $ (61.6) $ (4.7) $ (56.9)

Depreciation and amortization 22.2 22.8 (0.6)

9 unchanged sentences

Net cash used for operating activities (16.2) (7.5) (8.7)

2026 2025 Change

Investing activities:

1 unchanged sentence

Proceeds from the sale of assets 1.0 1.4 (0.4)

Business acquisition, net of cash acquired — (2.6) 2.6

Net cash used for investing activities (23.5) (25.6) 2.1

Cash flow before financing activities $ (39.7) $ (33.1) $ (6.6)

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.

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.

Net cash used for operating activities increased by $8.7 million in the first six months of 2026 compared with the first six months of 2025.

The increase was primarily due to a higher net loss, which includes cash received for tariff refunds, the change in other operating activities and lower restructuring charges, partially offset by favorable changes in working capital.

Accounts payable and other liabilities increased operating cash flows compared with the prior year primarily due to the timing of vendor payments and lower employee-related payments, including incentive compensation.

The change in net cash used for investing activities during the first six months of 2026 compared with the first six months of 2025 was mainly due to Bolzoni's acquisition of a manufacturing business in Italy in 2025.

2026 2025 Change

3 unchanged sentences

Purchase of treasury stock (0.7) (4.4) 3.7

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 fees paid — (2.1) 2.1

Net cash used for financing activities $ (10.0) $ (0.3) $ (9.7)

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

Financing Activities

3 unchanged sentences

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 $1.0 billion as of March 31, 2026.

The approximate book value of assets held as collateral under the Facility was $1.0 billion as of June 30, 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.

1 unchanged sentence

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 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:

At June 30, 2026, the Company was in compliance with the covenants in the Facility.

Key terms of the Facility as of June 30, 2026 were as follows:

borrowing capacity $ 210.0

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

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

The approximate book value of assets held as collateral under the Term Loan was $0.7 billion as of June 30, 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 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:

At June 30, 2026, the Company was in compliance with the covenants in the Term Loan.

Key terms of the Term Loan as of June 30, 2026 were as follows:

Outstanding $ 213.8

6 unchanged sentences

Applicable interest rate, for amounts outstanding 7.28%

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

The Company had other debt outstanding, excluding finance leases, of approximately $169.4 million at June 30, 2026.

In addition to the excess availability under the Facility of $200.1 million, the Company had remaining availability of $23.3 million related to other non-U.S.

revolving credit agreements at March 31, 2026.

revolving credit agreements at June 30, 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.

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The following table summarizes actual and planned capital expenditures:

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

Planned for Remainder of 2026

8 unchanged sentences

The Company's capital structure is presented below:

MARCH 31, 2026

JUNE 30, 2026

DECEMBER 31, 2025

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Debt to total capitalization 55 % 50 % 5 %

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;

The Company continues to believe the first half of 2026 marked the bottom of the current lift truck market cycle.

Lower shipment volumes, higher tariff costs and an unfavorable product mix negatively impacted first-half results.

However, bookings have increased for four consecutive quarters and second-quarter revenue, operating results and cash flow improved sequentially.

These trends are expected to support improving performance through the remainder of 2026.

The Company's updated outlook reflects current assumptions regarding tariffs, geopolitical developments and market conditions.

Key tariff-related assumptions include:

and international tariff policies and rates in effect as of July 2026 serve as the baseline;

• continued application of Section 232 tariffs on steel, aluminum, copper, and certain derivative products, including the April 2026 expansion that applies tariffs to the full customs value of covered products rather than only the underlying metal content;

• 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.

given uncertainty regarding any successor trade measures, no benefit or incremental cost from potential replacement actions has been assumed;

• demand forecasts based on available market data and booking trends;

• the successful execution of the Company’s tariff mitigation initiatives, including pricing actions, sourcing adjustments, product-cost reductions, and other cost-management programs.

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.

Cost-reduction initiatives launched in 2025 continue to progress as planned.

The Company's 2025 restructuring program began generating benefits with approximately half of the expected annualized $40 million to $45 million cost reductions recognized in the first six months of 2026.

Manufacturing footprint optimization projects also remain on track.

The Company expects future costs and benefits for the projects as shown below:

(In millions) Planned for Remainder of 2026

Planned for 2027 Planned for 2028

Expected costs $6-10 $3-6 -

Expected annualized income and cash benefits - $15-20 $30-40

Expected savings in 2027 have been revised to reflect lower anticipated production volumes.

Once fully implemented and production volumes increase, these actions are expected to generate annualized benefits beginning in 2028.

Together, these actions are expected to lower the Company’s cost structure, improve operating leverage, and strengthen financial resilience across the business cycle.

Lift Truck Business

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.

Industry conditions in the lift truck market generally improved during Q2 2026, although demand varied by region and customer application.

The Company gained market share primarily through its expanded product portfolio and increasing customer acceptance of its value and standard product offerings.

• Bookings increased 17% from the first quarter and more than doubled from the prior year, marking the fourth consecutive quarter of growth and the strongest booking quarter in three years.

Growth was driven primarily by the Americas.

• Backlog increased to approximately $1.6 billion and approached five months of production as bookings exceeded shipments during the quarter.

The Company expects bookings in 2026 to exceed 2025, supported by healthier industry conditions, market share gains, and broader customer acceptance of its expanded product portfolio.

Investments made over the past several years to broaden the product lineup have positioned the Company to address increasing demand for lower-intensity applications and compete across a larger portion of the lift truck market.

The Company's standard and value offerings in the 1-3.5 ton, 4-9 ton and Big Truck product lines continue to support volume growth, profitability, and market share gains.

However, inflation, tariffs, geopolitical uncertainty, and increased competition continue to affect customer purchasing patterns across regions and end markets.

The improvement in bookings has begun to benefit shipments, with a meaningful impact on production and revenue expected to occur by the end 2026.

Customer delivery schedules have shifted, resulting in a greater portion of expected shipment growth occurring later in the year.

The Company is implementing sourcing and production changes in response to new Section 232 tariffs, including shifting certain sourcing and production activities into the U.S.

These actions are expected to reduce tariff costs over time but are delaying a portion of shipment growth while implementation is completed.

As a result, production growth is expected to temporarily lag booking growth in the near term despite strong demand.

Tariff-related costs on steel, components, and other imported materials remain elevated.

Pricing, sourcing, and product-cost actions are expected to provide increasing benefit in the second half of 2026, although the Company does not currently expect to offset all tariff-related expenses.

Gross margins are expected to improve gradually from Q2 2026 levels as production volumes increase and pricing and sourcing actions offset a portion of recent tariff costs.

The Company's newly introduced low-intensity trucks are expected to contribute favorably to margins while expanding the addressable market and increasing manufacturing scale.

However, competitive pricing, particularly in South America and Europe, where competitors continue to compete aggressively with lower-priced value and standard products, is expected to limit the pace of margin improvement.

As a result, the Company is maintaining a disciplined approach to balance market share growth and profitability.

Lift truck operating results are expected to improve in the second half of 2026 as shipment volumes increase and production levels rise.

Improved manufacturing efficiency, pricing actions, and cost reduction initiatives are expected to support earnings

Customer delivery timing, production transitions related to tariff mitigation actions, and competitive pricing are expected to moderate the pace of recovery.

The largest improvement is expected as shipment volumes increase later in the year.

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.

Bolzoni is expected to achieve a modest improvement in operating profit in 2026 despite slightly lower revenue.

Revenue is expected to decline modestly due to the planned phase-out of certain legacy component sales to the Lift Truck business.

However, a continued shift toward higher-margin attachment products and improved plant utilization are expected to support margin expansion and improved profitability.

Management remains focused on optimizing product mix and maintaining operational discipline across its global operations.

The Company expects to have a moderate operating loss for full-year 2026.

While improved demand and higher bookings are expected to support increased shipments and revenue, customer delivery schedules and sourcing transitions have delayed the timing of the recovery.

The strongest improvement in operating results is expected in the latter part of 2026.

The financial discipline established over the past several years continues to strengthen the Company’s ability to navigate changing market conditions while progressing toward its long-term objective of achieving approximately 7% operating profit over the business cycle.

Management believes higher production volumes, improved manufacturing efficiency, modular product platforms, and portfolio expansion into value and standard segments remain key drivers supporting achievement of this objective.

The Company remains focused on working capital efficiency and cash generation.

Working capital initiatives contributed to positive operating cash flow in the second quarter, and management intends to maintain the inventory discipline established during the downturn as production increases.

The Company continues to target working capital of approximately 15% of revenue over time.

The Company remains committed to strategic investments that support long-term growth and transformation, including modular product development, manufacturing capabilities, and information technology.

Capital expenditures for 2026 are expected to range from $50 million to $60 million, with spending dependent on production requirements and the timing of approved projects.

Management believes its continued focus on financial discipline, working capital efficiency, and prudent capital allocation positions the Company to improve financial performance while maintaining the flexibility to support future growth.

Long-Term Objectives

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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.

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 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.

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.

(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 sustained or 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 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, (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 the Company'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.

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