Hyster-Yale targets $100 million in annual cost cuts as it exits hydrogen businesses
Key Facts
On November 5, 2026, Hyster-Yale announced restructuring programs targeting annual cost savings of at least $100 million when they are completed, as expected in 2029. The plan includes exiting the hydrogen fuel cell and HydroCharge businesses and canceling plans to manufacture large trucks in the United States. The company said the programs began in the fourth quarter and that the targeted savings would be realized as they mature. The measures include consolidating plants, facilities and support activities, reducing manufacturing complexity and simplifying the organizational structure. The company also intends to reduce capital intensity as part of efforts to improve its cost structure, capital efficiency and long-term competitiveness.
The company estimated that the programs would cost at least $50 million to implement over their duration, including severance, impairment charges, contract termination and other exit costs. The new initiatives follow an earlier cost reduction and restructuring program launched in the fourth quarter of 2025. Hyster-Yale said about 75% of the estimated benefits of that program, totaling between $40 million and $45 million, had been realized by the end of the third quarter of 2026. The new program sets a larger annual target, but achieving it depends on completion of implementation, expected in 2029. Until then, the company will incur the announced implementation costs as it carries out its operational changes.
The announcement coincided with quarterly results showing revenue fell to $827.4 million in the third quarter, down 15% from $979.1 million in the same period of 2025. Revenue was up 2% from $812.9 million in the second quarter. The company posted an operating loss of $9.1 million, compared with operating profit of $2.3 million a year earlier. Net loss was $14.9 million, versus $2.3 million in the third quarter of 2025. Diluted loss per share widened to $0.83 from $0.13 a year earlier, while the company’s statement did not compare results with analysts’ expectations.
The lift truck segment was the main driver of the revenue decline, with sales of $775.5 million, down 17% year over year. The company attributed the decrease mainly to an unfavorable product mix and lower shipments. Positive pricing contributed $11 million, offsetting some of the pressure. By contrast, bookings totaled $550 million, up 45% from the year-earlier quarter. The backlog was steady at $1.6 billion compared with the second quarter, up 19% from $1.35 billion in the third quarter of 2025.
Cash flow improved during the quarter, with operating cash flow at $26 million, up $10 million from the second quarter. The company attributed the increase mainly to stronger earnings and improved working capital management, particularly accounts payable. At the same time, it expects capital expenditures of between $50 million and $60 million in 2026 and plans to limit them to between $40 million and $50 million in 2027. It said controlling spending next year is intended to preserve cash during a slower-than-expected recovery. These investment plans set out a phased path to reducing capital intensity alongside the business restructuring.
For the fourth quarter of 2026, Hyster-Yale expects significantly stronger operating performance than in the third quarter, with adjusted net income returning to profitability. It also expects bookings to exceed levels in the fourth quarter of 2025 and the third quarter of 2026. The company scheduled a call to discuss the results for November 6, 2026, at 11:00 a.m. Eastern time. The call will provide an opportunity to discuss performance and the plan in detail, according to the schedule announced by the company. The annual cost reduction target remains tied to the programs reaching maturity as expected in 2029.