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1. Company Snapshot

1.a. Company Description

Hyster-Yale Materials Handling, Inc., through its subsidiaries, designs, engineers, manufactures, sells, and services a line of lift trucks, attachments, and aftermarket parts worldwide.It manufactures components, such as frames, masts, and transmissions; and assembles lift trucks.The company markets its products primarily under the Hyster and Yale brand names to independent Hyster and Yale retail dealerships.


It also sells aftermarket parts under the Hyster and Yale, as well as UNISOURCE and PREMIER brands to Hyster and Yale dealers for the service of competitor lift trucks.In addition, the company produces and distributes attachments, forks, and lift tables under the Bolzoni, Auramo, and Meyer brand names; and designs and produces products in the port equipment and rough terrain forklift markets.Further, it designs, manufactures, and sells hydrogen fuel-cell stacks and engines.


The company serves light and heavy manufacturers, trucking and automotive companies, rental companies, building materials and paper suppliers, lumber, metal products, warehouses, retailers, food distributors, container handling companies, and U.S. and non-U.S. governmental agencies.Hyster-Yale Materials Handling, Inc.was incorporated in 1991 and is headquartered in Cleveland, Ohio.

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1.b. Last Insights on HY

The recent performance of Hyster-Yale Materials Handling, Inc. was negatively impacted by a decline in revenues, with a 14% year-over-year decrease in Q1 2025. The company's operating profit also declined significantly, down 75% from Q1 2024, and net income plummeted 83% to $8.6 million. Additionally, the company's adjusted operating profit and adjusted net income also declined, down 74% and 83% respectively. The decline in revenues and profitability was attributed to a decrease in market demand, which is expected to recover in the second half of 2025.

1.c. Company Highlights

2. Hyster-Yale's Earnings Report: A Mixed Bag

The company's Lift Truck revenues came in at $929 million, a 4% decline compared to the prior year, primarily due to lower truck volumes across all product lines. The operating profit declined by $27 million year-over-year, mainly driven by lower truck volumes, although some negative impacts were offset by strategic pricing actions and a favorable sales mix shift. The actual EPS came out at -$0.09, relative to estimates at $0.03, a significant miss.

Publication Date: Nov -30

📋 Highlights
  • Economic Environment Impact:: Tariffs and macroeconomic uncertainty dampened demand and costs, with bookings rising $380M in Q3 despite broader market contraction.
  • Revenue Decline:: Lift Truck revenue fell 4% YoY to $929M, driven by lower volumes across all product lines due to economic slowdown and tariff pressures.
  • Operating Profit Drop:: Operating profit declined $27M YoY, offset partially by pricing actions and a shift toward higher-value 4-9-ton trucks in the Americas.
  • Debt Position:: Unused borrowing capacity increased 6% to $275M, while net debt remained at $397M with a net debt/EBITDA ratio of 2.9x.
  • Automation Growth:: 600-700 automated trucks are in operation, with hybrid/fully automated models expected to boost margins and revenue via higher pricing.

Bookings and Backlog

Despite the broader market contracting, Hyster-Yale's booking activity ticked higher compared to both the prior year and the previous quarter, with a dollar value booking increase of $380 million in Q3. Gains were led by the EMEA and APAC regions, while the Americas remained stable. Bookings improved across all product classes, with Class 1 trucks showing solid growth, improving the company's positioning in the warehouse segment.

Tariff Impact and Pricing

Rajiv Prasad noted that the company is not at an advantage or disadvantage compared to competitors regarding tariffs, but there are exceptions due to differences in sourcing and import duties. The $40 million tariff impact in 3Q was net of price increases and other actions, with less than half of that cost mitigated. The company's backlog is expected to be mostly untariffed by early 2024, with new bookings now incorporating tariffs as surcharges or price increases.

Outlook and Valuation

Looking ahead, the company expects Q4 revenue to decline compared to Q3 due to lower production rates caused by reduced bookings over the past few quarters. They are projecting a moderate operating loss mainly due to lower production rates and persistent tariff headwinds. Analysts estimate next year's revenue growth at -0.8%. With a P/S Ratio of 0.13 and an EV/EBITDA of 9.54, the market seems to be pricing in a significant recovery, which may be challenging given the current headwinds.

Financial Position

The company's unused borrowing capacity of $275 million increased by 6% from Q2, and their net debt of $397 million remains in a solid position, improving modestly from the prior year and prior quarter. The company's financial leverage, as measured by net debt to adjusted EBITDA, increased to 2.9x due to lower earnings, but they remain committed to managing their debt and leverage ratios.

3. NewsRoom

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Hyster-Yale (NYSE:HY) Shares Acquired Rep. Tim Moore

Dec -04

Source: defenseworld.net

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Rep. Tim Moore Purchases Shares of Genprex (NASDAQ:GNPX)

Dec -04

Source: defenseworld.net

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Rep. Tim Moore Sells Off Shares of Harley-Davidson, Inc. (NYSE:HOG)

Dec -04

Source: defenseworld.net

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Harley-Davidson (NYSE:HOG) Shares Acquired Rep. Tim Moore

Dec -04

Source: defenseworld.net

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LGI Homes (NASDAQ:LGIH) Shares Unloaded Rep. Tim Moore

Dec -04

Source: defenseworld.net

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Rep. Tim Moore Sells Off Shares of Verizon Communications Inc. (NYSE:VZ)

Dec -04

Source: defenseworld.net

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Rep. Tim Moore Sells Off Shares of Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)

Dec -04

Source: defenseworld.net

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Rep. Tim Moore Purchases Shares of Hyster-Yale, Inc. (NYSE:HY)

Dec -04

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Lift Truck

Expected Growth: 3.0%

The 3.0% growth of Lift Truck from Hyster-Yale Materials Handling, Inc. is driven by increasing demand for warehouse automation, e-commerce growth, and rising adoption of electric forklifts. Additionally, the company's focus on product innovation, expansion in emerging markets, and strategic acquisitions contribute to its growth momentum.

Bolzoni

Expected Growth: 3.0%

Bolzoni's 3.0% growth is driven by increasing demand for warehouse automation, e-commerce growth, and rising adoption of lithium-ion batteries in forklifts. Additionally, the company's focus on innovative products, such as its lithium-ion powered pallet trucks, and strategic acquisitions are expected to contribute to its growth.

Eliminations

Expected Growth: 3.0%

Hyster-Yale Materials Handling, Inc.'s 3.0% growth driven by increased demand for warehouse automation, e-commerce growth, and rising adoption of lithium-ion batteries in forklifts, offsetting declines in traditional internal combustion engine products.

Nuvera

Expected Growth: 3.0%

Nuvera's 3.0 growth is driven by increasing adoption of alternative energy solutions, rising demand for eco-friendly forklifts, and expanding presence in the material handling industry. Additionally, Hyster-Yale's strategic investments in technology and manufacturing capabilities, as well as growing partnerships with major logistics and e-commerce companies, contribute to Nuvera's growth momentum.

7. Detailed Products

Lift Trucks

Hyster-Yale Materials Handling, Inc. offers a range of lift trucks, including electric, internal combustion, and warehouse products, designed to meet the needs of various industries and applications.

Container Handling Equipment

The company provides container handling equipment, such as reachstackers and empty container handlers, designed for efficient and safe container handling in ports and terminals.

Warehouse Equipment

Hyster-Yale offers a range of warehouse equipment, including pallet trucks, stackers, and order pickers, designed to optimize warehouse operations.

Automated Guided Vehicles (AGVs)

The company provides AGVs, which are designed to automate material handling tasks, such as transporting goods and materials in warehouses and manufacturing facilities.

Telemetry and Fleet Management Solutions

Hyster-Yale offers telemetry and fleet management solutions, which provide real-time data and insights to optimize fleet operations and reduce costs.

8. Hyster-Yale Materials Handling, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Hyster-Yale Materials Handling, Inc. is medium due to the presence of alternative material handling solutions, but the company's strong brand reputation and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is high due to the large number of customers and the availability of alternative suppliers, giving customers the power to negotiate prices and terms.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large scale of operations and its ability to negotiate favorable terms with suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including the need for significant capital investment and the complexity of the material handling industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors in the material handling industry, leading to a competitive market environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 56.00%
Debt Cost 10.77%
Equity Weight 44.00%
Equity Cost 11.39%
WACC 11.04%
Leverage 127.29%

11. Quality Control: Hyster-Yale Materials Handling, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Lindsay

A-Score: 6.0/10

Value: 5.3

Growth: 6.4

Quality: 6.7

Yield: 2.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Alamo Group

A-Score: 5.8/10

Value: 5.2

Growth: 7.1

Quality: 6.6

Yield: 1.0

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
REV Group

A-Score: 5.8/10

Value: 4.1

Growth: 6.2

Quality: 6.3

Yield: 4.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Wabash

A-Score: 4.9/10

Value: 9.6

Growth: 3.3

Quality: 6.5

Yield: 6.0

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Hyster-Yale

A-Score: 4.9/10

Value: 7.0

Growth: 6.4

Quality: 3.6

Yield: 7.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Gencor

A-Score: 3.9/10

Value: 5.3

Growth: 7.4

Quality: 6.0

Yield: 0.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.82$

Current Price

33.82$

Potential

-0.00%

Expected Cash-Flows