Hyster-Yale (HY) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, March 4, 2026 astatine 11:25 AM CST 26 min read

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Wednesday, March 4, 2026 astatine 11 a.m. ET

• President and Chief Executive Officer — Rajiv K. Prasad

• Chairman — Alfred Marshall Rankin

• Chief Financial Officer — Andrea Saba

First, I volition commencement with a little overview of our 4th fourth and afloat twelvemonth results earlier turning the telephone implicit to Rajiv to sermon the concern situation and strategical outlook. During the 4th quarter, we saw respective encouraging signs. Bookings successful the 4th fourth strengthened significantly, expanding 42% sequentially and 35% twelvemonth implicit year, which whitethorn awesome the aboriginal stages of a request betterment pursuing an extended play of lawsuit caution. Also, the archetypal 2 months of 2026 continued this trend. Fourth 4th operating currency travel accrued to $57 million, driven by meaningful improvements successful inventory efficiency.

We proceed to marque advancement aligning accumulation with demand, improving finished goods management, and reducing inventory levels, each of which enactment stronger currency generation. That said, marketplace conditions remained challenging during the quarter. Fourth 4th revenues declined to $923 million, reflecting weaker shipment volumes crossed the concern arsenic customers proceed to hold purchases until they person a wide request for caller trucks. Tariffs stay a important headwind, reducing some quarterly and afloat twelvemonth gross and operating profit. In the 4th quarter, the interaction of tariffs combined with little volumes resulted successful an adjusted operating nonaccomplishment of $16 million. This includes $40 cardinal successful gross tariff costs.

Looking astatine afloat twelvemonth 2025, gross declined to $3.8 cardinal and we reported afloat twelvemonth adjusted operating nett of $16 million. This effect includes astir $100 cardinal successful gross tariff costs, underscoring the magnitude of the ongoing outer unit connected our results. While 2025 reflected a hard operating environment, our improved bookings, beardown currency travel performance, and disciplined outgo and inventory absorption presumption america good arsenic request begins to recover. With that instauration successful place, I volition present crook the telephone implicit to Rajiv.

Rajiv K. Prasad: Alright. Thanks, Andrea, and bully morning, everyone. I volition commencement by sharing however we spot the existent economical scenery unfolding, however those dynamics are shaping lawsuit behavior, and however we are positioning the institution successful response. After that, I volition locomotion done our expectations for 2026 earlier turning implicit the telephone to Al for his closing remarks. The planetary assistance motortruck marketplace remained challenged successful the 4th fourth with year-over-year declines crossed each regions and motortruck classes. However, contempt that wide pressure, we began to spot an important divergence look precocious successful the year. North America showed meaningful sequential betterment comparative to 4th three.