Hyster-Yale Operating Loss Reaches $9.1 Million as Revenue Falls 15%
Key Facts
Hyster-Yale reported on November 5, 2026, an operating loss of $9.1 million in the third quarter, after posting operating income of $2.3 million in the year-earlier period. Revenue fell to $827.4 million from $979.1 million, a rounded 15% year-over-year decline, while its net loss widened to $14.9 million from $2.3 million. Adjusted diluted loss per share was $0.77, compared with $0.09 in the third quarter of 2025. The results highlight an annual decline in activity and profitability, despite improvement in some indicators from the previous quarter. The company said adjusted net income is expected to turn positive in the fourth quarter, while costs to implement new programs remain a factor affecting results.
The year-over-year revenue decline coincided with gross profit falling to $124.1 million from $155.9 million and the gross margin narrowing to 15.0% from 15.9%. Lift truck business revenue was $775.5 million, down 17% from $929.3 million a year earlier. The decline included a 17% drop in Americas revenue to $608.6 million and an 18% fall in Europe, Middle East and Africa revenue to $122.8 million. Sequentially, the company's total revenue rose 2% from $812.9 million in the second quarter to $827.4 million. Lift truck business revenue also increased 3% from the second quarter as shipments rose, despite its annual decline due to an unfavorable product mix and lower shipment volumes.
The company said pricing contributed positively by $11 million in the third quarter, but did not fully offset the impact of lower shipments and product mix. Adjusted earnings before interest, taxes, depreciation and amortization were $6 million, compared with $15.1 million a year earlier, following an adjusted loss of $4.9 million in the second quarter. On demand, lift truck orders totaled $550 million, up 45% year over year, marking a fourth consecutive quarter of elevated orders since the cyclical trough in the second quarter of 2025. The backlog remained at $1.6 billion, unchanged from the second quarter, as production and shipments were broadly balanced during the quarter. The company expected fourth-quarter orders to exceed levels in the third quarter of 2026 and the fourth quarter of 2025, and said higher production and shipments would support revenue and operating performance sequentially.
Operating cash flow improved to $26 million in the third quarter, up $10 million from the second quarter. The company attributed the increase mainly to improved earnings and working capital management, particularly accounts payable. Working capital rose to $662 million on September 30, following a year-over-year improvement of $123 million, while inventory fell $76 million year over year. These developments follow the company's statement in its second-quarter results that the first half of 2026 marked the cyclical trough for the lift truck market and that orders had increased for four consecutive quarters. It said tariffs on steel, components and imported materials would remain elevated. The company expects pricing, sourcing and product cost actions to offset some of these pressures in the fourth quarter of 2026.
As part of its cost-reduction plan, Hyster-Yale is targeting annual savings of at least $100 million when the initiatives are completed, which is expected in 2029. The company estimates program implementation costs of at least $50 million over their duration, meaning their financial impact will accompany efforts to improve operating performance during the rollout. The company was scheduled to hold a call with investors and analysts on Friday, November 6, 2026, at 11:00 a.m. Eastern time to discuss the results. In trading on November 5, HY shares closed at $26.95, after closing at $30.02 in the previous session. The closing data did not attribute the decline to the company's results.