Executive Summary

Q4 revenue grew 4% year over year to $1.07B and 5% sequentially, while adjusted EPS rose to $1.47 (+3% YoY, +44% QoQ); GAAP EPS declined to $0.58 due to $21.4M of footprint optimization charges in the quarter .
Lift Truck adjusted operating profit increased 15% YoY on favorable mix and pricing; Americas strength offset EMEA/JAPIC weakness. Bolzoni turned to a small adjusted loss on mix and volume; Nuvera loss improved sequentially on cost actions .
2025 outlook: management now expects a significant revenue decline, margin compression toward target levels, higher OpEx run-rate, and operating profit significantly below 2024; capex guided to $40–$80M; cash from operations expected comparable to 2024 as working capital improves .
Bookings stabilized sequentially (+8% vs Q3) but remain down 17% YoY; backlog normalized to $1.93B. Footprint optimization programs (incurring $21M in Q4) are expected to drive $30–$40M annual benefits beginning in 2027, with implementation costs also in 2025–2026 .

What Went Well and What Went Wrong

What Went Well

Americas Lift Truck drove performance: revenues +13% YoY; adjusted operating profit +43% YoY on favorable mix and pricing discipline .
Adjusted results improved despite softer markets: adjusted operating profit $53.7M (+10% YoY, +57% QoQ); adjusted EPS $1.47 (+3% YoY, +44% QoQ) .
Working capital and cash generation strengthened: Q4 operating cash flow $81M; year-end net debt fell 12% QoQ; inventory down $100M sequentially; unused borrowing capacity increased to $290M .

“Program benefits are expected to begin in late 2025… Beginning in 2027, these fully developed programs are currently expected to generate significant income and cash benefits from $30 million to $40 million annually” .

What Went Wrong

GAAP profitability compressed: operating profit fell to $32.3M and GAAP EPS to $0.58, reflecting $21.4M of footprint optimization charges and a 55% tax rate in Q4 (no tax benefit on charges due to valuation allowance) .
EMEA and JAPIC pressured results: EMEA operating swung to a loss on lower volumes/mix; JAPIC loss widened; Bolzoni posted an adjusted operating loss of ~$0.1M on weaker mix/volume and higher costs .
Bookings/backlog reset: bookings down 17% YoY; backlog fell 42% YoY to $1.93B, driving a significantly lower 2025 production outlook and margin normalization risk .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($MM)	$1,027.2	$1,016.1	$1,067.5
Gross Profit ($MM)	$209.7	$192.9	$207.6
Operating Profit ($MM)	$48.7	$33.1	$32.3
Adjusted Operating Profit ($MM)	$48.7	$34.3	$53.7
Net Income ($MM)	$25.2	$17.2	$10.3
Diluted EPS ($)	$1.43	$0.97	$0.58
Adjusted Diluted EPS ($)	$1.43	$1.02	$1.47
Gross Margin % (calc)	20.4% (209.7/1,027.2)	19.0% (192.9/1,016.1)	19.5% (207.6/1,067.5)
Operating Margin % (calc)	4.7% (48.7/1,027.2)	3.3% (33.1/1,016.1)	3.0% (32.3/1,067.5)
Adjusted Op Margin % (calc)	4.7% (48.7/1,027.2)	3.4% (34.3/1,016.1)	5.0% (53.7/1,067.5)

Revenue +4% YoY and +5% QoQ; adjusted operating profit +10% YoY and +57% QoQ; GAAP EPS -59% YoY/-40% QoQ; adjusted EPS +3% YoY/+44% QoQ .

Segment detail – Lift Truck revenue by geography ($MM):

	Q4 2023	Q3 2024	Q4 2024
Americas	$708.4	$771.1	$800.2
EMEA	$221.1	$145.0	$175.4
JAPIC	$52.0	$51.3	$46.0
Lift Truck Total	$981.5	$967.4	$1,021.6

Segment detail – Lift Truck adjusted operating profit (loss) ($MM):

	Q4 2023	Q3 2024	Q4 2024
Americas	$55.0	$52.7	$78.6
EMEA	$6.0	$(9.6)	$(9.4)
JAPIC	$(6.8)	$(3.1)	$(7.1)
Lift Truck Total	$54.2	$40.0	$62.1

Bolzoni and Nuvera ($MM):

	Q4 2023	Q3 2024	Q4 2024
Bolzoni Revenue	$87.3	$97.6	$82.9
Bolzoni Gross Profit	$19.4	$23.3	$17.9
Bolzoni Operating Profit (Adj)	$2.6	$6.2	$(0.1)
Nuvera Revenue	$0.2	$0.3	$0.4
Nuvera Gross Profit (Loss)	$(2.4)	$(3.0)	$(1.8)
Nuvera Operating Loss (Adj)	$(8.0)	$(11.6)	$(8.0)

KPIs and balance sheet:

KPI	Q4 2023	Q3 2024	Q4 2024
Bookings ($ value, $MM)	$480	$370	$400
Backlog ($ value, $MM)	$3,330	$2,300	$1,930
Operating Cash Flow ($MM)	—	$70	$81
Net Debt ($MM)	$415.2 (12/31/23)	$392.9	$344.1
Debt-to-Total Capital	61% (9/30/23)	46%	47%
Unused Borrowing Capacity ($MM)	—	$262	$290
Share Repurchases	—	—	~$5M in Q4

Note: Dashes indicate not disclosed in the cited period.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Revenue	FY 2025	May be lower than 2024	Significant YoY decrease	Lowered
Operating Profit	FY 2025	Significantly lower than 2024	Significantly lower than 2024	Maintained
Lift Truck Product Margins	FY 2025	Maintain bookings at/above target margins	Margins to decline vs 2024 but remain above target	Clarified (down from ’24, above target)
Operating Expenses	FY 2025	Run-rate similar to 2H’24	Increase YoY; run-rate similar to Q4’24 each quarter	Raised detail
Cash from Operations	FY 2025	Strong/high but below 2024	Strong and comparable to 2024	Raised
Capital Expenditure	FY 2025	—	$40–$80M	New
Effective Tax Rate	FY 2025	—	Elevated but below 2024; possible change if U.S. R&D capitalization reversed	New
Production Cadence	2025	2025 shipments generally in line with 2024, may moderate without market/share gains	Initial 2025 production well below 2024; lower 1H, increase 2H	Lowered
Bolzoni Operating Profit	FY 2025	Improve vs 2024 despite lower sales	Comparable to 2024 adjusted OP	Lowered
Nuvera Results	FY 2025	Improve vs 2024	Modest improvement; HydroCharge focus	Maintained
Dividend	Q1 2025	—	$0.35/sh payable Mar 14, 2025 (record Feb 28)	New
Share Repurchase	Program	$50M authorization (Nov 18, 2024)	Repurchased ~$5M in Q4	Executing

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2, Q3 2024)	Current Period (Q4 2024)	Trend
Supply chain & freight	Freight/material inflation to temper H2’24; port/Red Sea disruptions; proactive re-routing; elevated freight costs	Freight still elevated; port strikes/geopolitics limited ability to capture lower rates	Mixed (improving slowly)
Pricing & margins	Price discipline; product margins above target; Americas led margin expansion	2025 product margins expected to decline but remain above target	Down from peak but above target
Bookings & backlog	Sharp bookings decline; backlog ~$2.6B (6–7 months)	Q4 bookings +8% QoQ/-17% YoY; backlog normalized to $1.93B; early 2025 bookings encouraging (EMEA/JAPIC)	Stabilizing from lower base
Footprint optimization	Programs announced upcoming in Americas; details to come in Q4	$21M charges in Q4; $8–$16M additional costs in 2025–26; $30–$40M annual benefits from 2027	Executing
Automation/technology	OAS and advanced on-truck tech; driving unit value	Launching automated platforms (Yale Relay/Hyster Atlas); simplifying setup; dealer training underway	Building
Tariffs/macro	Monitoring weaker U.S. market; inflation risks	Pricing agility to respond to potential U.S./global tariff changes	Risk elevated
Tax/R&D capitalization	Higher effective tax rate due to U.S. R&D capitalization	2025 ETR elevated but below 2024; could change if law reversed	Potential relief

Management Commentary

“We began execution on the footprint optimization programs… designed to streamline our manufacturing network… lower our costs and reduce our inventory and product lead times” .
“Savings are expected to accelerate generating $30 million to $40 million in annual income and cash benefits starting in 2027” .
“The Lift Truck business delivered an adjusted operating profit of $62 million… well ahead of our targeted levels. Partly offsetting these gains were increased costs for freight and warranty” .
“Early 2025 bookings provide encouraging signs, particularly in our EMEA and JAPIC regions… we expect the bookings market will improve across 2025” .
“Operating expenses are expected to increase year-over-year in 2025… run rate similar to Q4 2024 levels in each 2025 quarter” .
“2025 capital expenditures are expected to range between $40 million and $80 million” .

Q&A Highlights

Market outlook and cancellations: Management reiterated a weaker 1H and improving 2H 2025, noting higher-than-expected cancellations late in 2024 drove production cuts; cancellations normalized in recent months, supporting a gradual recovery view into 2026 .
Production/backlog: Operating factories at a “purposeful pace” to reduce inventories and keep backlog aligned with demand; production to increase with bookings/share gains in 2H 2025, else moderate .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable via the S&P Global API at retrieval time; as a result, we cannot present vs-consensus comparisons for this quarter. We will refresh and update when available.

Key Takeaways for Investors

Mix and pricing supported another solid adjusted quarter despite cyclical headwinds; Americas robustness continues to offset EMEA/JAPIC softness .
The 2025 reset is deeper: significantly lower revenues and operating profit, higher OpEx run-rate, and margin normalization toward targets—key driver for near-term multiple and revisions .
Footprint optimization is the medium-term bull case: execution costs in 2025–26, with $30–$40M annual benefits from 2027 improving structural earnings power through cycles .
Bookings stabilization (+8% QoQ) and encouraging early 2025 activity (EMEA/JAPIC) are green shoots, but the base is lower; backlog normalization implies H1 volume pressure .
Cash generation remains a support: 2025 operating cash flow targeted comparable to 2024 despite lower earnings, aided by inventory/working capital improvements; capex flexible at $40–$80M .
Capital returns are active: $50M buyback authorization and ~$5M Q4 repurchases; dividend maintained at $0.35 per share for March 2025 .
Watch tariff headlines, freight normalization, and warranty cost trajectory on new modular platforms—key variables for margins and sentiment in 2025 .

HYSTER-YALE, INC. (HY)·Q4 2024 Earnings Summary