Hyster-Yale, Inc (NYSE: HY) announced consolidated financial results for the quarter ended March 31, 2026, reflecting lower revenues, evolving product mix dynamics, and continued cost optimization initiatives, while outlining a gradual recovery path for the remainder of the year. Lift Truck segment revenues for Q1 2026 totaled $740 million, a 14% year-over-year decline. The decrease was primarily driven by a shift toward lighter-duty, lower-priced models and the planned reduction of excess backlog. The company noted that evolving customer demand has accelerated adoption of modular, value-oriented product platforms, resulting in lower shipments of higher-priced traditional trucks.
Management also cited macroeconomic uncertainty and cautious customer spending as additional factors impacting demand during the quarter. Favorable pricing actions in the Americas and currency tailwinds partially offset revenue declines.
Operating performance reflected continued pressure from product mix changes and approximately $30 million in gross tariff-related costs. These headwinds were partially mitigated by pricing initiatives and reduced employee-related expenses, supported by restructuring measures initiated in 2025, including Nuvera’s strategic realignment.
Regionally, the Americas business experienced lower operating profit due to mix shifts and tariff impacts, while EMEA results weakened on lower volumes and reduced parts demand. Sequentially, profitability declined due to lower shipments, though partially offset by higher capitalized material costs.
The Bolzoni Group reported higher year-over-year revenues, supported by favorable foreign exchange movements. However, operating profit declined due to increased employee-related expenses following the Valmar acquisition. On a sequential basis, improved volumes in the Americas supported a reduction in operating losses, aided by better manufacturing absorption.
For Q1 2026, the company recorded an income tax benefit of $1.8 million compared with a tax expense of $8.1 million in the prior year period. The variation was primarily attributed to geographic earnings mix and limitations on recognizing deferred tax assets in the United States.
Hyster-Yale stated that 2026 is expected to be a transitional year, with weaker first-half performance followed by improvement in the second half driven by stronger bookings, backlog recovery, and operational efficiencies. However, updated expectations reflect the impact of additional Section 232 tariffs, Section 301 duties, and geopolitical disruptions, including the Iran conflict, all of which have increased input costs and supply chain volatility.
Tariff-related pressures are expected to remain a significant headwind throughout 2026, with mitigation measures such as pricing adjustments, sourcing changes, and product redesigns expected to only partially offset the impact.
The company continues to advance cost reduction initiatives, including a restructuring program targeting $40–$45 million in annualized savings beginning in 2026. Manufacturing optimization efforts are also underway, with longer-term benefits expected to materialize from 2027 onward and full annualized gains projected by 2028.
In the Lift Truck business, booking activity showed early signs of recovery in Q1 2026, surpassing Q4 2025 levels, with improved momentum in both the Americas and EMEA regions. Backlog began rebuilding after reaching a cyclical low in late 2025, though remains below historical norms.
Management expects Q2 2026 to represent the low point of the cycle, followed by gradual improvement in shipments and backlog rebuilding in the second half of the year. However, margins are not expected to return to post-pandemic peak levels due to continued pricing pressure in lower-cost segments and ongoing competitive intensity. Bolzoni Group is expected to deliver modest profitability improvement in 2026, supported by a shift toward higher-margin attachments and improved utilization, despite minor revenue headwinds from legacy product phase-outs.
On a consolidated basis, Hyster-Yale anticipates a modest full-year operating profit in 2026, with first-half losses offset by stronger second-half performance. Cash flow is expected to improve later in the year, supported by profitability recovery and working capital optimization, although full-year operating cash flow is projected to remain below 2025 levels.
