Hyster-Yale, Inc. (NYSE: HY) reported fourth quarter and full year 2025 financial results showing a sharp decline in profitability as tariff costs and weakening lift truck demand eroded revenue and margins across global markets. Full year revenue fell to $3.77 billion compared with $4.31 billion in 2024 while the company recorded an operating loss of $22.1 million and a net loss of $60.1 million. The results reflect a combination of weaker forklift shipments, persistent tariff costs and customer caution toward capital equipment purchases. Management said booking activity improved significantly late in the year, potentially signaling the early stages of a demand recovery heading into 2026.
The Cleveland-based industrial equipment manufacturer is one of the major global producers of lift trucks and warehouse handling equipment, supplying industries ranging from logistics and manufacturing to ports and distribution centers. The company’s results therefore provide an important signal about broader industrial capital spending trends.
The latest results indicate that the global forklift market entered a cyclical slowdown during 2025 while trade policy costs significantly amplified the financial impact.
Why did Hyster-Yale revenue and profitability deteriorate sharply during 2025?
Hyster-Yale reported that full year revenue declined by roughly 13 percent to $3.77 billion as shipments of lift trucks weakened across most global markets. Operating profit swung from a $244.8 million gain in 2024 to a $22.1 million loss during 2025, while net income reversed from a $142.3 million profit to a $60.1 million loss.
The deterioration reflects both macroeconomic and structural pressures. Global industrial activity slowed during the year while customers postponed equipment purchases in response to lower utilization rates and tighter capital budgets.
Tariffs added another layer of pressure. The company reported approximately $100 million in gross tariff costs during 2025, which directly reduced operating profit.
Tariffs on Chinese components, steel and other imported inputs significantly increased the cost structure for forklift manufacturers. Because the industry is highly competitive and price sensitive, companies are not always able to fully pass these cost increases on to customers.
For Hyster-Yale, the combination of reduced shipment volumes and tariff-related cost inflation created a difficult operating environment.
What do fourth quarter results reveal about the state of the global forklift market?
Fourth quarter 2025 results provided a clearer view of the demand slowdown affecting the materials handling equipment industry.
Quarterly revenue declined to $923.2 million from $1.07 billion in the prior-year period. The company recorded an operating loss of $37.2 million compared with operating profit of $32.3 million one year earlier.
Shipment volumes fell across most product categories, particularly higher-value internal combustion and electric counterbalanced trucks that typically generate stronger margins.
Management indicated that many customers postponed replacing older equipment as economic uncertainty increased and financing conditions tightened. Instead of expanding fleets, companies focused on maximizing utilization of existing machines.
At the same time, industry demand shifted toward lighter-duty and lower-priced lift truck models. This trend has been especially pronounced in Europe and South America where lower-cost equipment suppliers have gained share.
The shift toward cheaper models has also compressed margins because these products typically generate lower profit per unit.
How tariffs reshaped Hyster-Yale’s cost structure and profitability outlook
Tariffs emerged as one of the most significant financial headwinds for the company.
During the fourth quarter alone, Hyster-Yale estimated roughly $40 million in gross tariff costs. Over the course of the full year the cumulative impact reached about $100 million. These tariffs primarily affect imported steel, components and materials used in lift truck manufacturing.
The company has attempted to mitigate the impact through several strategies including pricing adjustments, supply chain changes and sourcing modifications. However, management acknowledged that these actions can only partially offset tariff expenses. The broader uncertainty surrounding global trade policy also complicates long-term planning.
Recent legal rulings and ongoing policy debates in the United States regarding tariff authority add further unpredictability to the outlook. Even if certain tariffs are reduced or eliminated, the timing of refunds or policy changes could take years. For industrial manufacturers that rely on global supply chains, this policy uncertainty remains a major operational risk.
Are rising bookings a sign that forklift demand may be stabilizing?
Despite weaker shipments, the fourth quarter produced a notable improvement in booking activity. Dollar-value bookings reached approximately $540 million, representing a 42 percent increase compared with the third quarter and a 35 percent increase from the same quarter in 2024. Most of this improvement came from the Americas region where demand for core counterbalanced trucks strengthened.
Management suggested that the increase in bookings may indicate the early stages of a replacement cycle. Many customers delayed equipment purchases during 2024 and early 2025 as economic conditions weakened. Over time, however, aging fleets and rising maintenance costs eventually force companies to replace equipment.
The recent booking improvement could therefore reflect customers beginning to restart capital spending after an extended period of deferrals. Backlog, however, declined to $1.28 billion as shipments exceeded new orders earlier in the year.
Rebuilding backlog to more typical levels will be an important indicator of sustained recovery in the forklift market.
How Hyster-Yale is restructuring operations to reduce costs and improve resilience
In response to the downturn, Hyster-Yale launched a series of operational restructuring initiatives designed to lower costs and improve long-term competitiveness. One key program involved the strategic realignment of Nuvera, the company’s hydrogen fuel cell subsidiary. This initiative generated approximately $15 million in cost savings during 2025.
The company also initiated a broader restructuring program expected to deliver $40 million to $45 million in annualized cost savings beginning in 2026. Additional manufacturing footprint optimization efforts are underway, with projected annual savings of $30 million to $40 million once fully implemented later in the decade.
Combined, these programs could generate $85 million to $100 million in recurring annual cost reductions by 2028. These initiatives aim to reduce the company’s break-even level, making it better positioned to remain profitable even during industry downturns.
What does Hyster-Yale’s 2026 outlook suggest about the forklift industry cycle?
Management expects the forklift industry cycle to bottom in early 2026 before gradually improving later in the year. The company believes the first quarter of 2026 will represent the trough of the current downturn because it reflects the weaker bookings environment from earlier in 2025.
As bookings strengthen and backlog begins to rebuild, production and shipments are expected to increase through the remainder of the year. Hyster-Yale forecasts a small operating loss during the first half of 2026 followed by stronger revenue and profitability in the second half. Overall, the company expects moderate operating profit for the full year.
The expected recovery will likely depend on several factors including stabilization of global economic activity, improvement in industrial capital spending and continued replacement demand from aging equipment fleets. Tariffs and trade policy remain significant risks that could influence the pace of recovery.
What are the key takeaways for executives, investors and industrial equipment markets?
- Hyster-Yale moved from strong profitability in 2024 to a net loss in 2025 as tariff costs and weaker forklift demand severely affected results.
- Global lift truck shipments declined across most regions as customers postponed equipment purchases amid economic uncertainty.
- Tariffs on imported components and materials created roughly $100 million in additional costs during 2025, significantly affecting profitability.
- The forklift industry experienced a shift toward lower-priced equipment models, putting pressure on margins for traditional manufacturers.
- Fourth quarter bookings improved significantly, suggesting that deferred replacement demand may begin to return.
- Backlog levels remain below historical norms, indicating that a full demand recovery will likely take time.
- Hyster-Yale is implementing cost reduction programs expected to generate up to $100 million in recurring annual savings by 2028.
- Management expects the forklift industry cycle to reach its low point in early 2026 before gradually improving.
- Production volumes and revenue are expected to increase during the second half of 2026 as bookings strengthen.
- Tariff policy and global economic conditions remain the largest external risks influencing the company’s recovery outlook.
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