HY earnings analysis
What we found in HY's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Hyster-Yale's Q2 revenue of $812.9 million beat consensus and improved 2.3% sequentially, but was down 15.0% year over year as lower volumes and lower-priced product mix pressured every Lift Truck region. Gross margin declined 1.9 percentage points year over year to 15.7%, operating loss widened to $18.4 million, and GAAP diluted EPS of negative $1.76 missed expectations. Booking momentum, a $1.58 billion backlog and cost actions support a late-2026 recovery narrative, but elevated tariffs, a $500.0 million debt load and negative $16.2 million of six-month operating cash flow keep the overall stance neutral.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue improved sequentially and beat consensus
- Q2 revenue of $812.9 million rose $17.7 million, or 2.3%, from implied Q1 revenue of $795.2 million, and exceeded the $804.62 million consensus estimate by $8.28 million. Management expects higher bookings to begin providing a meaningful production and revenue benefit by the end of 2026.
- Bookings momentum and backlog improved
- Lift-truck bookings were $680 million, up 17% sequentially and more than double the prior-year quarter, marking the fourth consecutive quarter of booking growth. Backlog was approximately $1.58 billion, approaching five months of production.
- Sequential operating performance improved
- The Q2 operating loss narrowed sequentially to $18.4 million from an implied $28.0 million loss in Q1, while management cited positive operating cash flow in Q2. This occurred despite approximately $20 million of incremental tariff-related costs versus Q2 2025.
- Cost-reduction benefits are starting to accrue
- The 2025 restructuring program delivered approximately half of its expected annualized $40 million to $45 million cost reductions during the first six months of 2026. Manufacturing-footprint projects are expected to generate annualized income and cash benefits of $15 million to $20 million in 2027 and $30 million to $40 million in 2028.
- Bolzoni showed relative gross-profit resilience
- Bolzoni gross profit increased 2.8% to $22.0 million despite a 9.6% revenue decline to $81.9 million, reflecting a more favorable product mix. Management expects modest Bolzoni operating-profit improvement in 2026 despite slightly lower revenue.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Volume and mix pressure worsened year over year
- Revenue declined 15.0% year over year to $812.9 million, while gross margin fell to 15.7% from 17.6% and operating margin deteriorated to negative 2.3% from negative 0.9%. Lower Class 1 and Class 4 volumes and a mix shift to lower-priced, lower-intensity trucks drove the decline.
- EPS missed consensus and loss widened
- Q2 diluted loss per share was negative $1.76, versus negative $0.79 a year earlier and below the negative $1.31 consensus estimate. Net loss attributable to stockholders more than doubled to $31.6 million from $13.9 million.
- Tariff exposure remains elevated
- Tariffs remain a significant earnings headwind: management incurred approximately $20 million of additional Q2 tariff-related costs year over year, partly offset by approximately $35 million of IEEPA-related recoveries. Management does not expect pricing, sourcing and product-cost actions to offset all tariff-related expense in 2026.
- Liquidity and leverage weakened
- Cash and cash equivalents fell $50.6 million from year-end to $72.6 million, while total debt increased $5.7 million to $500.0 million and debt-to-total-capitalization rose to 55% from 50%. Six-month operating cash flow was negative $16.2 million and capex was $24.5 million, implying negative $40.7 million of six-month free cash flow before asset-sale proceeds.
- No formal risk-factor update; trade uncertainty persists
- Item 1A states there were no material changes to risk factors previously disclosed in the December 31, 2025 Form 10-K. Nevertheless, the company’s outlook assumes Section 301 exclusions on Chinese-origin goods expire in November 2026, preserving trade-policy uncertainty.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-1.76
- Gross margin
- 15.7%
- Operating margin
- -2.3%
- Segment
- Americas revenue: $596.2 million, down 15.7% year over year
- Segment
- EMEA revenue: $118.2 million, down 20.3% year over year
- Segment
- JAPIC revenue: $41.1 million, down 15.1% year over year
- Segment
- Lift Truck business revenue: $755.5 million, down 16.4% year over year
- Segment
- Bolzoni revenue: $81.9 million, down 9.6% year over year
What they said about what is next.
Management continues to expect a moderate consolidated operating loss for full-year 2026, with the largest operating improvement later in 2026. It expects 2026 capital expenditures of $50 million to $60 million and continues to target working capital of approximately 15% of revenue over time; no quantitative revenue or EPS guidance was provided.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 5, 2026
- Hyster-Yale, Inc. reported Q1 2026 revenues of $795 million, a significant decline of 12.7% year-over-year, with an operating loss of $28 million compared to a profit of $21.3 million in Q1 2025. The company recorded a…
- 10-K · March 3, 2026
- Hyster-Yale Inc. reported a decline in revenue to $3.77 billion in 2025, reflecting a 12.5% decrease from $4.31 billion in 2024, largely due to declining lift truck unit volumes driven by economic uncertainty. The…
- 10-Q · November 4, 2025
- Hyster-Yale reported Q3 2025 results with revenue of $979.1 million, outperforming expectations but recording a loss of $0.09 per share, which missed estimates. The company faces challenges with ongoing tariff impacts…
- 10-Q · August 5, 2025
- Hyster-Yale reported Q2 2025 revenue of $956.6 million, exceeding estimates but reflecting an 18.1% decline year-over-year. The company saw significant drops in both operating profit and gross margins due to lower…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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