Executive Summary

HY posted Q3 2025 revenue of $979.1M, up 2% q/q but down 4% y/y; adjusted diluted EPS was $(0.09). Results were pressured by ~$40M of tariff costs and lower truck volumes, partly offset by pricing/mix; operating cash flow improved to $37.1M on inventory efficiency .
Versus consensus (S&P Global), HY delivered a modest top-line and EPS beat: revenue $979.1M vs $955.7M*, and adjusted EPS $(0.09) vs $(0.14); EBITDA missed on an S&P definition basis (company adjusted EBITDA $15.1M vs EBITDA consensus $22.1M) . Values marked * retrieved from S&P Global.
Outlook turned more cautious: management expects Q4 revenue to decline vs Q3 and a moderate operating loss given reduced production rates and persistent tariff headwinds; tariff policy changes could reduce Q4 impact by $2–$3M .
Subsequent events: HY declared a $0.36 dividend payable Dec 16, 2025, and announced a restructuring to reduce ~575 roles (Q4 pre-tax charge ~$21M; annualized savings ~$40–$45M from Q1’26), lowering break-even amid low industrial volumes .

What Went Well and What Went Wrong

What Went Well
- Sequential revenue growth (+2% q/q) and improved operating cash flow ($37.1M) driven by inventory optimization; working capital fell by ~$30M sequentially and stood at 20% of sales .
- Bookings improved to $380M (from $330M in Q2) with gains in EMEA/JAPIC; management noted strong October booking pace in Americas Class 5, hinting at stabilization .
- Strategic progress: rollout of modular/scalable platforms across NA/Europe with positive feedback; ~600–700 automated trucks in field with continued product cadence, positioning HY for higher-margin technology revenue streams .
What Went Wrong
- Tariffs materially impacted profitability (~$40M in Q3 direct costs) and HY could offset less than half through pricing due to backlog commitments and competitive dynamics; operating profit fell to $2.3M vs $33.1M y/y .
- Backlog deteriorated to $1.35B (from $1.65B in Q2) as shipments outpaced bookings, particularly in the Americas; management expects further near-term backlog degradation and moderated production .
- EMEA faced intensified competition from low-cost imports and inflationary input costs; segment operating loss widened to $(16.9)M with margin pressure likely to persist near term .

Financial Results

Company-level P&L and cash flow (oldest → newest)

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($M)	$1,016.1	$956.6	$979.1
Operating Profit ($M)	$33.1	$(8.5)	$2.3
Net Income ($M)	$17.2	$(13.9)	$(2.3)
Diluted EPS ($)	$0.97	$(0.79)	$(0.13)
Adjusted Operating Profit ($M)	$34.3	$7.2	$3.3
Adjusted Diluted EPS ($)	$1.00	$(0.14)	$(0.09)
Adjusted EBITDA ($M)	n/a	$21.4	$15.1
Cash from Operations ($M)	$70.1	$28.9	$37.1

Segment and regional performance (revenues; oldest → newest)

Segment/Region Revenue ($M)	Q3 2024	Q2 2025	Q3 2025
Lift Truck – Total	$967.8	$904.2	$929.3
• Americas	$771.5	$707.5	$732.7
• EMEA	$145.0	$148.3	$150.1
• JAPIC	$51.3	$48.4	$46.5
Bolzoni	$97.6	$90.6	$87.0

Lift Truck profit bridge by region (operating profit; oldest → newest)

Lift Truck Op Profit ($M)	Q3 2024	Q2 2025	Q3 2025
Americas	$40.9	$11.7	$21.1
EMEA	$(9.6)	$(15.0)	$(16.9)
JAPIC	$(4.1)	$(7.6)	$(4.2)
Lift Truck – Total	$27.2	$(10.9)	$0.0

KPIs and balance sheet (chronological; oldest → newest)

KPI	Q1 2025	Q2 2025	Q3 2025
Bookings ($M)	$590	$330	$380
Backlog ($B)	$1.91	$1.65	$1.35
Working Capital % of Sales	22%	21%	20%
Net Debt ($M)	$406.8	$406.3	$396.7
Net Debt / Adj. EBITDA (x)	1.6x	2.4x	2.9x

Notes:

Tax: Q3 included a $2.9M tax benefit due to immediate expensing of R&D under U.S. tax reform .
Tariffs: ~$40M in direct costs in Q3, including new steel tariffs; sequential pressure on product margins .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated revenue/production	2H 2025, Q3 2025	2H revenue and production to outpace 1H; modest sequential growth in Q3 revenue/OP vs Q2	Q4 revenue to decline vs Q3 due to lower production rates from reduced bookings	Lowered near-term trajectory
Operating profit	Q3 2025 → Q4 2025	Q3 OP to improve sequentially vs Q2	Q4 2025 moderate operating loss expected; tariffs persist	Lowered
Tariff assumptions	Q3/Q4 2025	Baseline tariffs as of Jul 9, 2025; Section 301 exemption not extended beyond Aug 31	Baseline tariffs as of Sep 5, 2025; Chinese tariffs 79%; include Section 232 steel; assume Section 301 parts exemption not extended beyond Nov 29; potential $2–$3M favorability in Q4 if exemptions extended to Nov 2026	Updated baseline and potential relief
Capex	FY 2025	$50–$60M (Q2 update) ; prior $40–$65M (Q1)	$50–$60M reaffirmed	Maintained vs Q2; narrowed vs Q1
Bolzoni outlook	Q4 2025	Q3 modest improvement vs Q2	Q4 revenue slightly below Q3; OP slightly above Q3 on mix	Slightly weaker revenue, better mix
Cost actions	From Q4 2025	Footprint optimization ongoing; $2.4M spent YTD, $3M planned Q4	New restructuring: ~575 roles; ~$21M Q4 charge; $40–$45M annualized savings from Q1’26	New program added
Dividend	Q4 2025	Regular quarterly dividend cadence	$0.36/share declared, payable Dec 16, 2025	Maintained distributions

Earnings Call Themes & Trends

Topic	Q1 2025 (May)	Q2 2025 (Aug)	Q3 2025 (Nov)	Trend
Tariffs/macro	Price adjustments to offset inflation/tariffs; baseline Apr 9; anticipate negative impacts	Monthly price adjustments; tariffs hurting volumes/margins; outlook deteriorated	~$40M tariff cost; <50% offset; Q4 loss risk; possible policy relief $2–$3M	Worsened costs; demand uncertainty persists
Bookings/backlog	Bookings $590M; backlog $1.9B stable; plan to increase production	Bookings fell to $330M; backlog $1.65B; moderated production	Bookings $380M; backlog fell to $1.35B; further degradation near term	Bookings stabilizing; backlog declining
Modular/scalable products	Strategy emphasized; enablers for regional build	Continued rollout; pricing discipline	Full-scale launch in NA/Europe; positive dealer/customer feedback	Execution progressing
Automation/technology	Energy solutions realignment; HydroCharge, batteries focus	Continued tech investment; capex > D&A	600–700 automated trucks in field; cadence every 6–9 months	Building installed base
Regional trends	EMEA bookings improved; JAPIC big trucks	EMEA weak on tariffs; Americas seasonal	EMEA pressure from low-cost imports; Americas Class 5 bookings strong in Oct	Mixed; EMEA competitive pressure elevated
Supply chain/inputs	Inventory scheduling tightened	Material/freight/tariff costs up	Steel tariffs cited; U.S. sourcing shifts	Mitigation ongoing

Management Commentary

“Q3 2025 operating results were below expectations primarily due to higher tariff costs, including new tariffs on steel imports. Tariff costs were approximately $40 million in the quarter.”
“We anticipate further backlog degradation in the near term… we’re moderating near-term production expectations to preserve manufacturing efficiency, optimize inventory, and maintain appropriate backlog levels.”
“Average selling prices booked in the quarter were up nearly 10% year over year,” reflecting pricing discipline amid lower volumes and manufacturing efficiency challenges .
“We have about 600 or 700 [automated trucks] running… every six to nine months, we’ll be releasing another automated product.”
On pricing offsets to tariffs: “the $40 million was the gross tariff cost, and we were able to offset less than half of that with price in the quarter” .

Q&A Highlights

Demand deferrals and timing: Customers are postponing purchases amid tariff/interest-rate volatility; mgmt expects gradual decision resumption over “next two to three months,” with dealers restocking as inventories normalize .
Cost actions if macro worsens: HY is reviewing plant utilization and cost structure; plans to take a conservative posture near term while remaining ready to ramp with bookings .
Backlog profitability: Uncovered (pre-tariff) backlog should largely roll off by early Q1’26, enabling backlog to reflect tariff-inclusive pricing thereafter .
Competitive/pricing dynamics: Pricing pressure is broad-based; modular scalable offerings aim to tailor configurations to preserve margins rather than resort to discounting .
Technology/automation adoption: Strong interest but slower implementations due to process redesign; viewed as positive long-term margin opportunity .

Estimates Context

How results compared to S&P Global consensus; next two quarters context

Metric	Q3 2025 Consensus	Q3 2025 Actual	Q4 2025 Consensus	Q1 2026 Consensus
Revenue ($M)	955.7*	979.1	916.4*	881.9*
Primary EPS ($)	(0.14)*	(0.09)	(1.23)*	(1.16)*
EBITDA ($M)	22.1*	13.6* (company Adj. EBITDA $15.1)	2.9*	3.0*
Target Price ($)	36.5*	36.5*	36.5*	36.5*
# Estimates (Rev / EPS)	2 / 2*	—	2 / 2*	2 / 1*

Values marked * retrieved from S&P Global.

Implications:

Modest beats on revenue and adjusted EPS vs consensus; EBITDA under-shot S&P EBITDA metric (definition differences vs company-adjusted) . Values marked * retrieved from S&P Global.
Consensus embeds continued top-line pressure into early 2026; likely estimate cuts to EBITDA and margin trajectories if tariff relief does not materialize (or modest upward revisions if exemptions extend as indicated by mgmt) .

Key Takeaways for Investors

Near-term: Prepare for a softer Q4 with a guided moderate operating loss as production rates are reduced; stock likely sensitive to tariff headlines and any confirmation of Section 301 exemption extensions ($2–$3M Q4 benefit) .
Tariff overhang: ~$40M Q3 headwind underscores earnings sensitivity; pricing offsets lag legacy backlog—monitor cadence of converting orders to tariff-inclusive pricing and any competitive pricing response .
Demand signals: Bookings ticked up in Q3 with encouraging October Class 5 activity in Americas, but backlog is shrinking; watch order intake and cancellation trends as interest-rate path clarifies .
Cost reset: New restructuring (~575 roles; ~$21M Q4 charge; $40–$45M annualized savings from Q1’26) accelerates break-even reduction into the expected mid-2026 recovery, improving operating leverage on rebound .
Strategic mix: Modular/scalable platforms and automation build differentiation and margin potential; growing installed base of 600–700 automated units supports medium-term mix and aftermarket .
Liquidity/cash: Operating cash flow improved; working capital down to 20% of sales and net debt eased; leverage (Net Debt/Adj. EBITDA) rose to 2.9x on lower EBITDA—continue to track inventory actions and capex discipline ($50–$60M FY25) .
Dividend maintained: $0.36/share declared suggests confidence in liquidity despite near-term earnings pressure .

HYSTER-YALE, INC. (HY)·Q3 2025 Earnings Summary