Hyster-Yale Materials Handling’s first quarter results were met with a negative market reaction, as the company reported declines in both revenue and non-GAAP profitability compared to Wall Street expectations. Management attributed the underperformance primarily to softer demand for lift trucks in the Americas and EMEA regions, as well as ongoing global tariff pressures that increased costs and introduced operational uncertainty. President and CEO Rajiv Prasad acknowledged these challenges, emphasizing that “significant uncertainty created by shifting tariff levels” has led to customer hesitation and necessitated swift operational adjustments.
Is now the time to buy HY? Find out in our full research report (it’s free).
Hyster-Yale Materials Handling (HY) Q1 CY2025 Highlights:
- Revenue: $910.4 million vs analyst estimates of $947.8 million (13.8% year-on-year decline, 3.9% miss)
- Adjusted EPS: $0.48 vs analyst expectations of $0.49 (2% miss)
- Adjusted EBITDA: $35 million vs analyst estimates of $37.2 million (3.8% margin, 5.9% miss)
- Operating Margin: 2.3%, down from 7.9% in the same quarter last year
- Market Capitalization: $710.4 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Hyster-Yale Materials Handling’s Q1 Earnings Call
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Can you elaborate on how the recent tariff changes are expected to impact both your input costs and customer demand for the rest of 2025?
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What is the expected timeline for realizing cost savings from the Nuvera business realignment, and how will these savings be reinvested?
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How confident are you in maintaining a strong order backlog amid ongoing market volatility and customer hesitation?
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What are the main risks to the successful rollout of your new lithium-ion battery and off-grid charging platforms?
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Can you provide more detail on your strategies to manage working capital and inventory in the face of declining revenues?
Catalysts in Upcoming Quarters
In the coming quarters, our team will be tracking (1) how quickly Hyster-Yale’s energy solutions realignment—particularly the rollout of lithium-ion battery and hybrid charging offerings—drives revenue, (2) whether inventory reduction and production efficiency measures translate into improved cash flow, and (3) any developments in global tariff policy that could alter demand or cost structures. Progress on these fronts will be critical to judging management’s ability to stabilize performance.
Hyster-Yale Materials Handling currently trades at $40.12, down from $40.53 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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