Hyster-Yale Materials Handling, Inc. (HY): Business Model Canvas [Dec-2025 Updated]

You're looking for the hard facts on Hyster-Yale Materials Handling, Inc.'s strategy right now, especially with the market softness we've seen heading into late 2025. Honestly, digging into their nine-block canvas reveals a company balancing its core, heavy-duty truck sales-which clocked $864.4 million in Q1 2025-with a critical pivot toward high-margin aftermarket parts and advanced energy solutions like Nuvera Fuel Cells. They are clearly navigating significant cost headwinds, evidenced by the $21 million restructuring charge taken in Q4 2025, all while relying on their dual-brand IP and vast dealer network to keep the lights on. Let's break down exactly how this global materials handling giant is positioning itself for the rebound; the details below show where the real value-and the real risk-lies.

Hyster-Yale Materials Handling, Inc. (HY) - Canvas Business Model: Key Partnerships

You're looking at the critical alliances that keep Hyster-Yale Materials Handling, Inc. moving product and meeting complex regulatory demands. These aren't just vendor relationships; they're structural components of the business model, especially as the company navigates energy transitions and domestic sourcing mandates.

Global network of independent dealers for sales and service

The global reach of Hyster-Yale relies heavily on its network of independent dealers. This network is the primary interface for sales and service, keeping the company attuned to local market needs across regions like the Americas, EMEA, and JAPIC. The financial performance of this channel shows the current market pressure. For instance, in the first quarter of 2025, total dealer sales declined 32.8% year-over-year, settling at $415.6 million.

To give you a regional breakdown of that dealer channel performance in Q1 2025:

• Dealer sales for the Americas totaled $288.2 million, a 31.9% drop YoY.
• Bookings in Asia Pacific remained steady while Europe and the Americas saw softer demand.

Strategic domestic suppliers for Build America, Buy America (BABA) compliance

Meeting the requirements of the Build America, Buy America (BABA) Act is a strategic imperative for federally funded infrastructure projects. This means Hyster-Yale is actively working to partner with key domestic suppliers. The general mandate for battery electric equipment requires that 55% of the total component value must be of US origin. Hyster-Yale leverages its American manufacturing footprint across several key locations to support this commitment.

The company's US manufacturing and operational sites include:

• Greenville, North Carolina, and Berea, Kentucky, for Forklift Truck (FLT) Production.
• Billerica, Massachusetts, for Nuvera fuel cell production.
• Sulligent, Alabama, for Bolzoni clamps and other attachments.

The Nuvera fuel cells themselves are manufactured in the US, which helps with compliance for fuel cell machines. The company is strategically expanding sourcing agreements to meet these local material requirements for high-capacity models, including electric options.

Joint venture with Sumitomo NACCO Forklift Co. Ltd. in Japan

Hyster-Yale maintains an unconsolidated joint venture in Japan with Sumitomo NACCO Forklift Co. Ltd. This structure means the company accounts for its share of the net income or loss from this affiliate on a separate line item in its statements. As of June 30, 2025, loans from Wells Fargo to the related HYGFS joint venture totaled $1.4 billion, though Hyster-Yale's contractual guarantee for a portion of that debt was $285.2 million.

Technology partners for vehicle automation and energy solutions

The focus on energy solutions is centralized through the realignment of the Nuvera fuel cell business into an integrated energy solutions program at the Billerica facility. This program incorporates Hyster-Yale's development of lithium-ion battery modules, chargers, and energy management systems. Initial sales of the HydroChargeTM mobile, modular hybrid electric charging platform, which incorporates Nuvera's fuel cell technology, are expected to begin in the second half of 2025.

This strategic realignment is expected to deliver significant cost benefits starting in the second half of 2025:

Also, Hyster-Yale Group has a memorandum of understanding with Capacity Trucks to co-develop electric and hydrogen-powered terminal tractors with automation-ready capabilities, designating VDL Automated Vehicles as the preferred integration partner for automation.

Bolzoni S.p.A. for attachments, forks, and lift tables

Bolzoni S.p.A. operates as a subsidiary, serving as a leading worldwide producer of attachments, forks, and lift tables under the Bolzoni®, Auramo®, and Meyer® brand names. The performance of this segment is tied to broader industrial demand. For the third quarter of 2025, full-year revenue expectations for Bolzoni were projected to decline year-over-year, reflecting softer demand across its customer base.

Here is a snapshot of key financial and operational metrics relevant to Hyster-Yale's overall scale and partnership context as of late 2025:

Finance: draft 13-week cash view by Friday.

Hyster-Yale Materials Handling, Inc. (HY) - Canvas Business Model: Key Activities

Design, engineer, and manufacture a full line of lift trucks

Hyster-Yale Materials Handling, Inc. manufactures a comprehensive line of lift trucks and attachments under the Hyster®, Yale®, Maximal®, and Bolzoni® brand names. Consolidated revenues for the third quarter of 2025 were \$979.1 million, a 2% sequential growth from the second quarter of 2025 revenue of \$957 million.

The product focus includes both internal combustion engine (ICE) and electric models. For instance, the Hyster® J45-70A electric forklift is offered in the 4,500 to 7,000-pound capacity range. The Hyster J10-18XD series of integrated lithium-ion trucks offers load capacities from 10,000 to 18,000 kilograms (kg).

Research and development in electrification and automation

The strategic focus includes a pivot toward lithium-ion battery development, centralizing this at Nuvera's Billerica facility. This initiative targets faster commercialization of modules, chargers, and energy management systems. The company expects battery sales to soar from 2024 levels as early as 2025. Electric units accounted for 32% of truck sales as of Q2 2025. The restructuring related to this pivot promises \$25-\$35 million in annualized cost savings by 2026, offsetting a \$15-\$18 million one-time charge in Q2 2025. Capital expenditures for 2025 are forecasted to range between \$50 million and \$60 million.

Global supply chain and tariff mitigation management

Tariff uncertainty has impacted bookings, with a reported additional cost of approximately \$10 million in Q2 2025 due to increased tariffs for products entering the U.S. The combined unfavorable impact of foreign currency and tariffs on inventory values was approximately \$40 million as of June 30, 2025. The company is advancing initiatives to align production schedules to manage raw materials efficiently.

Aftermarket parts and service distribution

The business includes servicing a comprehensive line of lift trucks and distributing aftermarket parts. The Q3 2025 operating cash flow of \$37 million improved sequentially, partly due to inventory efficiency, which supports the overall operational base including aftermarket functions.

Working capital optimization, focusing on inventory efficiency

Working capital optimization is a top priority, with particular emphasis on inventory reduction. As of Q3 2025, working capital was 20% of sales, which was \$30 million below the prior quarter due to improved inventory efficiency and increased revenues. In Q3 2025, operating cash flow of \$37 million was generated, primarily as a result of improved inventory efficiency, particularly in manufacturing stock. Inventory levels in Q3 2025 decreased by \$155 million year-over-year, excluding foreign currency and tariff-related impacts of \$40 million.

• Q1 2025 inventory levels decreased by \$69 million compared to Q1 2024.
• Working capital was 22% of sales as of Q1 2025.
• Working capital was 21% of sales as of Q2 2025.
• The company implemented a six-week firm production schedule in January 2025 to improve inventory efficiency.

Hyster-Yale Materials Handling, Inc. (HY) - Canvas Business Model: Key Resources

You're looking at the core assets Hyster-Yale Materials Handling, Inc. uses to run its business as of late 2025. It's a mix of established brand equity, physical assets spread globally, and specialized technology.

Dual-brand intellectual property: Hyster® and Yale®

The foundation of the core business rests on the two primary brands, Hyster® and Yale®. These names represent over 100 years of proven performance in the materials handling space. This IP is marketed globally, primarily through a network of independent retail dealerships.

The reliance on the dealer channel is clear in the recent sales figures. For the third quarter of 2025, total dealer sales dropped 14.1% year-over-year, coming in at $487.9 million. Specifically, dealer sales in the Americas for Q3 2025 totaled $330.1 million, which was a 20% drop from the prior year period. Still, total direct sales showed some strength, increasing 9.2% year-over-year to $171.6 million in Q3 2025.

Global manufacturing footprint across 10+ countries

Hyster-Yale Materials Handling, Inc. maintains a widespread production network designed to assemble lift trucks largely in the market of sale, which helps with cost control and responsiveness. The manufacturing footprint spans five continents. You can find lift truck and component parts manufacturing in at least 10 countries.

Here's a look at where the physical production assets are located:

• United States (Berea, Kentucky; Greenville, North Carolina)
• Northern Ireland (Craigavon)
• Mexico
• Netherlands (Nijmegen)
• Italy (Masate)
• China (Shanghai, Hefei)
• Japan (JV location)
• Brazil (Itu)
• Philippines (JV location, Cavite)
• Vietnam (JV location, Hanoi)

Independent dealer network for market reach

The independent dealer network is the primary conduit for sales and service, keeping Hyster-Yale Materials Handling, Inc. attuned to local market needs. This network supports the installed base of equipment, which drives profitable parts and service revenue.

The financial scale of the dealer channel in Q3 2025 is summarized below:

Nuvera® Fuel Cells technology for alternative power

Nuvera Fuel Cells, LLC, provides the alternative power technology, focusing on fuel-cell stacks and engines. While the company has strategically realigned this business to focus more on battery solutions, a limited fuel cell program continues. This program is focused on finalizing development and testing of its higher-powered 125KW fuel cell for port equipment and larger applications.

The strategic shift in Q2 2025 involved absorbing Nuvera resources to accelerate battery development. This realignment is expected to generate significant savings:

• Direct annualized cost reductions: $15 million to $20 million
• Indirect cost reductions: $10 million to $15 million

The company booked estimated severance and impairment costs of approximately $15 million to $18 million in the second quarter of 2025 related to this restructuring. Initial sales of the HydroChargeTM product, which incorporates Nuvera's fuel cell technology, are expected to start in the second half of 2025.

Liquidity with $275 million unused borrowing capacity (Q3 2025)

Hyster-Yale Materials Handling, Inc. maintained a solid liquidity position as of the end of the third quarter of 2025, despite profitability pressures. Disciplined cash management kept debt levels stable. You need to watch this cash position closely.

Key liquidity and debt figures as of September 30, 2025:

• Unused borrowing capacity: $275 million
• Cash on hand: $71.1 million
• Total Debt: $467.8 million
• Net Debt: $396.7 million

The company generated $37 million in cash from operating activities in Q3 2025, helped by improved inventory efficiency. Finance: draft 13-week cash view by Friday.

Hyster-Yale Materials Handling, Inc. (HY) - Canvas Business Model: Value Propositions

You're looking at the core offerings Hyster-Yale Materials Handling, Inc. puts forward to win business, which is all about the right equipment, the right power, and the right long-term cost structure. It's a comprehensive play across the entire materials handling spectrum.

Comprehensive Product Range

Hyster-Yale Materials Handling, Inc. provides a full line of lift trucks and solutions, covering a massive range of material movement needs globally. The company's vision includes transforming how the world moves material from Port to Home. As of late 2025, the product breadth is substantial, anchored by its estimated installed base of approximately 1,014,000 Hyster-Yale brands lift trucks in operation worldwide (as of December 31, 2024). This large installed base helps drive recurring parts revenue, which represented approximately 14% of Hyster-Yale's annual revenues in 2024.

The product classes define the scope:

• Class 1: Electric counterbalanced rider lift trucks: 1 ton - 8 ton capacity.
• Class 2: Electric narrow aisle lift trucks: 1.5 ton - 6 ton capacity.
• Class 3: Electric hand lift trucks: 1.5 ton - 8 ton capacity.
• Class 4: Internal combustion engine counterbalanced lift trucks, cushion tire: 1.5 ton - 7 ton capacity.
• Class 5: Internal combustion engine counterbalanced lift trucks, pneumatic tire: 1.5 ton - 52 ton capacity.

For example, the Hyster A Series Internal Combustion Engine (ICE) forklifts are offered in capacities ranging from 4,000 to 7,000 pounds. For heavy-duty needs, the Hyster electric big trucks, like the J230-400XD series, offer load capacities from 23,000 to 40,000 pounds.

Solutions Focused on Lowest Total Cost of Ownership

A key promise from Hyster-Yale Materials Handling, Inc. is delivering optimal solutions that improve productivity at the lowest cost of ownership. This focus is part of their long-term financial objectives, which target achieving over 20% return on total capital employed (ROTCE). The company is actively managing costs, as evidenced by the November 2025 announcement of a restructuring plan expected to generate roughly $40 to $45 million in annualized cost savings beginning in Q1 2026, following a challenging Q2 2025 where consolidated revenue was $957 million and the operating loss was $8.5 million.

Technology supports this value proposition:

• Wireless Monitoring Telemetry on models like the Hyster A Series helps reduce damage, downtime, and costs.
• The Hyster J230-400XD lithium-ion trucks are explicitly marketed as providing a competitive total cost of ownership.
• The company's working capital management remains a focus, reporting 21% of sales as working capital as of Q2 2025.

Specialized Attachments via the Bolzoni® Subsidiary

Hyster-Yale Materials Handling, Inc. bolsters its offering through its subsidiary, Bolzoni S.p.A., which is a leading worldwide producer of attachments, forks, and lift tables marketed under the Bolzoni®, Auramo® and Meyer® brand names. Bolzoni products are manufactured across the United States, Italy, China, Germany and Finland, with the company operating six Bolzoni manufacturing facilities worldwide.

The financial contribution from this segment in mid-2025 shows its role:

Advanced Energy Solutions, Including Lithium-ion and Fuel Cells

The energy portfolio is undergoing a significant transition. Nuvera Fuel Cells, LLC, a subsidiary, focuses on fuel cell stacks and engines. However, following a strategic realignment announced in April 2025 due to sluggish market adoption of hydrogen fuel cells, the company is pivoting toward lithium-ion batteries. This realignment involved a $15-$18 million one-time charge in Q2 2025, but promises $25-$35 million in annualized cost savings by 2026.

The focus on batteries is clear:

• Hyster-Yale expects lithium-ion battery sales to soar from 2024 levels as early as 2025.
• The Hyster J45-70A electric forklift offers a choice of lead-acid, thin plate pure lead, or lithium-ion battery power.
• The high-capacity Hyster J230-400XD lithium-ion series is configurable up to 280kW battery size.
• Forecasts suggest that in 2025, China and key European markets will reach the 50% critical turning point for Li-ion Class 1-3 forklift sales penetration.

Commitment to BABA-Compliant Electric and High-Capacity Equipment

Hyster-Yale Materials Handling, Inc. has a stated plan to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for key product lines, particularly for equipment used in federally funded infrastructure projects. This commitment involves expanding existing American manufacturing.

Key details on the BABA commitment include:

• The plan covers forklifts over 19,000 lbs capacity and container handling equipment.
• This includes lithium-ion and hydrogen fuel cell-powered equipment.
• The general BABA requirement mandates that 55% of the total value of all components must be of US origin.
• Hyster currently produces forklift trucks up to 19,000 lbs in capacity at its US plants, which include four locations, one dedicated to Nuvera fuel cell production.

Hyster-Yale Materials Handling, Inc. (HY) - Canvas Business Model: Customer Relationships

You're looking at how Hyster-Yale Materials Handling, Inc. maintains its connections with customers as of late 2025, a period marked by tariff impacts and economic caution.

Dedicated dealer-centric support for product lifecycle care

The dealer network remains central to Hyster-Yale Materials Handling, Inc.'s sales and service model, though it faced headwinds in Q3 2025. Total dealer sales dropped 14.1% year-over-year to $487.9 million in the third quarter of 2025. Specifically, dealer sales in the Americas totaled $330.1 million, marking a 20% year-over-year decline. The company's stated vision includes providing exceptional customer care to create increasing value from initial engagement through the product lifecycle.

The relationship with dealers is financially supported through joint ventures. HYGFS, a joint venture in which Hyster-Yale holds a 20% stake, provides lift truck financing for dealers and customers in the United States. Hyster-Yale's dividends received from HYGFS jumped 79.5% year-over-year to $7.9 million in Q3 2025.

The reliance on the dealer channel versus direct sales is quantified by the Q3 2025 figures:

Direct sales and service for major global accounts

Hyster-Yale Materials Handling, Inc. supports major global accounts through a dedicated Major Accounts Team, which offers a professional and personal approach, aiming to reduce the cost of operation for customers with lift trucks in many locations globally. This channel saw growth in Q3 2025, with total direct sales increasing 9.2% year-over-year to $171.6 million. Direct sales specifically in the Americas rose 9% year-over-year to $169.7 million. The Major Accounts Team works closely with the independent dealer network to ensure local, fast response and smooth contract management.

Long-term contracts for parts and service (recurring revenue)

The company recognizes revenue for service contracts as the services are provided. The introduction of new electric products, such as initial HydroCharge™ product sales expected in the second half of 2025, and battery/fuel cell electric port equipment testing, are specifically noted to provide 'additional service revenue opportunities over time'. The overall consolidated revenue for the trailing twelve months ending in 2025 was $3.91 Billion USD.

The focus on aftermarket parts and service is a key component of the overall offering, alongside lift trucks, attachments, and technology solutions.

Exploring customer-specific financing to counter economic uncertainty

Hyster-Yale Materials Handling, Inc. offers tailored flexible financing solutions through its partnership with a panel of financial service providers, which the Yale Major Accounts Team can utilize for its clients. The company's financial services arm, HYGFS, is a key part of this, providing lift truck financing for dealers and customers in the United States. As of Q3 2025, Hyster-Yale's incremental obligations to Wells Fargo, which removes receivables guaranteed from HYGFS' loans, rose 6.3% year-over-year to $262.6 million. The Chief Executive noted that volatile interest rates and economic uncertainty are influencing long-term investment decisions, causing many customers to postpone capital expenditures.

Key financing support elements include:

• Tailored flexible financing solutions available.
• HYGFS provides financing for US dealers and customers.
• Incremental obligations related to HYGFS loans stood at $262.6 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

Hyster-Yale Materials Handling, Inc. (HY) - Canvas Business Model: Channels

You're looking at how Hyster-Yale Materials Handling, Inc. gets its products-lift trucks, attachments, and parts-into the hands of customers globally as of late 2025. The channel strategy relies heavily on a mix of independent partners and direct engagement, especially when market conditions, like tariffs, shift the balance.

The backbone of the distribution remains the global network of independent, authorized dealers. While specific unit counts for the dealer network aren't current for Q3 2025, the installed base that supports aftermarket parts sales was approximately $1,014\text{K}$ units as of December 31, 2024. This network is crucial for local service and parts fulfillment. However, in Q3 2025, total dealer sales dropped by $14.1\%$ year-over-year, indicating customers were pausing capital expenditures.

The direct sales force plays an increasingly important role, particularly for large fleet and national accounts. This channel showed resilience in the Americas during Q3 2025, with direct sales there rising $9\%$ year-over-year, contrasting with the dealer sales decline. Overall, total direct sales increased by $9.2\%$ year-over-year in the latest reported quarter. This suggests strategic focus or necessity in securing larger, more stable contracts directly.

Regional marketing divisions manage the global footprint, which encompasses manufacturing facilities, service, and product development centers on five continents. Specific product development centers for lift trucks are located in the U.S., China, Italy, the Netherlands, the U.K., India, the Philippines, and Japan. The regional performance in Q3 2025 showed bookings improving across both the EMEA and JAPIC regions, while the Americas remained stable at relatively low levels. The Americas segment generated consolidated revenues of $\$732.7$ million in Q3 2025, a $5\%$ year-over-year decline.

For the crucial aftermarket business, the company relies on its large installed base to drive parts sales. While specific revenue from online portals for aftermarket parts and technical support isn't broken out in the Q3 2025 summary, the overall strategy is supported by the large installed base. Furthermore, the company utilizes a joint venture, HYGFS, for dealer and customer financing in the U.S., which received $\$1.4$ billion in loans from Wells Fargo at the end of Q3 2025. Dividends from this financing channel jumped $79.5\%$ year-over-year to $\$7.9$ million in that quarter.

Here's a look at the channel performance comparison for the Americas segment in Q3 2025:

And here are the total reported sales figures by channel for the entire business in Q3 2025:

The company's ability to design globally and deliver locally is cited as a source of cost savings and competitive advantage for its dealers. You should track the direct sales growth against the dealer sales contraction; that trend is key to understanding near-term channel risk.

Finance: draft 13-week cash view by Friday.

Hyster-Yale Materials Handling, Inc. (HY) - Canvas Business Model: Customer Segments

You're looking at Hyster-Yale Materials Handling, Inc. (HY) customer base as of late 2025, which is navigating a choppy macroeconomic environment, evidenced by the Q3 2025 consolidated revenue of $979.1 million, down 4% year-over-year. Still, the backlog stood at $1.35 billion at the end of Q3 2025, showing a significant book of committed future work.

The customer base is diverse, spanning global commerce from the warehouse floor to the port. The Americas remains the largest geographic revenue contributor, though it saw a 5% YoY total revenue fall in Q3 2025, with dealer sales dropping 20% YoY to $330.1 million, while direct sales grew 9% YoY to $169.7 million in that quarter.

Here's a breakdown of the key customer segments based on the latest available product mix and end-market data:

The focus on electrification is clear from the product mix. Class 1 Electric units made up 26% of 2024 unit revenue, with Class 2 Electric at 9% and Class 3 Electric at 5%. Honestly, the shift to electric is a major theme across the industry, with the global lift truck market predicted to grow in the 4% to 5% range through 2034.

For the specialized, heavy-duty end, the JAPIC geographic segment showed resilience in Q1 2025, posting a 25% revenue increase year-over-year, which the company attributed to a product mix shift towards Big Trucks. This suggests ports and large industrial users in that region were active buyers.

The distribution sector, which includes retail and logistics, forms a substantial portion of the core business:

• Logistics accounted for 27% of 2024 Retail Lift Truck Unit Revenue.
• Retail and Durable Goods was 28% of 2024 Retail Lift Truck Unit Revenue.
• The large installed base of lift trucks, around 1,014K units as of 12/31/24, drives aftermarket parts and service revenue, which is a critical, less cyclical segment for Hyster-Yale Materials Handling, Inc.

For government and infrastructure, while direct data is sparse, the growth in Americas direct sales by 9% YoY in Q3 2025 suggests success in securing larger, potentially compliance-driven contracts, even as dealer sales softened. Finance: draft 13-week cash view by Friday.

Hyster-Yale Materials Handling, Inc. (HY) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Hyster-Yale Materials Handling, Inc.'s expenses right now, late in 2025. It's a cost structure under pressure from external factors and internal adjustments.

High cost of goods sold, driven by raw materials and tariffs

The Cost of Sales for the fiscal quarter ending in June of 2025 hit $788.4M. You see the impact of tariffs clearly in the quarterly reports; for instance, direct tariff costs in Q3 2025 were reported at $40 million. In Q2 2025, the company incurred approximately $10 million of additional costs due to increased tariffs for products entering the U.S. compared to the prior year. To manage this, inventory optimization efforts in Q3 2025, excluding foreign currency and tariff-related impacts of $40 million, still resulted in inventory levels decreasing by $155 million year-over-year.

Manufacturing labor and overhead expenses

Operational discipline is key when volumes drop. In Q2 2025, the Lift Truck operating results reflected reduced volumes and lower manufacturing overhead absorption. Still, the company is finding savings; Q3 2025 operating costs decreased year-over-year, largely due to lower employee-related expenses, including reduced incentive compensation.

Research and development (R&D) investments

Expenses for developing new products and changes to existing ones are charged as incurred. The latest reported full-year R&D figure was $135.9 million for 2024, up from $119.7 million in 2023 and $100.7 million in 2022. The company continues to invest in new products, including modular and scalable lift truck models.

Capital expenditures forecasted at $50 million to $60 million for 2025

Hyster-Yale Materials Handling, Inc. is maintaining a disciplined approach to investments this year. The forecast for capital expenditures for the full year 2025 is set to range between $50 million and $60 million. These funds are earmarked for strategic investments supporting profitable long-term growth, including advanced products, manufacturing efficiencies, and information technology upgrades.

Restructuring costs, including a Q4 2025 charge of approximately $21 million

To better align operations with low industry volumes, Hyster-Yale approved a restructuring plan. This involves reducing the global workforce by approximately 575 employees. The company expects to record a one-time pre-tax charge of about $21 million in the fourth quarter of 2025, primarily related to severance and associated employee benefits, with all costs paid in cash.

Here's a quick look at some of the key financial figures impacting the cost side of the ledger:

The restructuring is expected to generate annualized cost savings of $40 million to $45 million, starting in the first quarter of 2026. These savings are additive to previously announced restructuring initiatives.

• Annualized Cost Savings from Q4 2025 Restructuring: $40 million to $45 million
• Workforce Reduction: Approximately 575 employees
• Cash paid for Restructuring Charge: 100% of the $21 million charge

Hyster-Yale Materials Handling, Inc. (HY) - Canvas Business Model: Revenue Streams

You're looking at the streams of cash Hyster-Yale Materials Handling, Inc. pulls in, which is essential for understanding its financial health, especially in a volatile market like late 2025. Honestly, the business is built on big-ticket equipment sales, but the recurring revenue from parts and service is what keeps the lights on smoothly.

The core of the business remains the sale of new equipment, but the latest figures show the strain from tariffs and market uncertainty. For the first quarter of 2025, the Lift Truck revenue, which is the main engine, landed at $864.4 million. This segment is where the high-margin aftermarket parts and service sales are bundled, though a specific standalone number for that recurring revenue isn't explicitly broken out in the primary segment reporting for Q1 2025.

The Bolzoni segment, focused on attachments, forks, and lift tables, provides a distinct revenue source. In Q1 2025, Bolzoni segment revenue was reported at $80.3 million. This revenue stream saw a 17% year-over-year decline in Q1 2025, partly due to phasing out lower-margin legacy products.

Technology and energy solutions, primarily through the Nuvera fuel cell business, is a strategic investment area, but it hasn't yet translated into significant sales revenue. For Q1 2025, Nuvera revenue was $0, though the segment incurred an operating loss of $(10) million. Management is realigning Nuvera to achieve annualized cost savings of $15 to $20 million starting in the second half of 2025, betting on lithium-ion battery modules and modular hybrid platforms to drive future sales.

Rental and used equipment sales are typically captured within the overall Lift Truck segment results, often alongside aftermarket revenue. To give you a clearer picture of the latest reported revenue structure, here's a look at the Q1 2025 segment breakdown versus the consolidated total:

The sum of the reported segments ($864.4M + $80.3M + $0M = $944.7M) does not equal the consolidated revenue ($910.4M), which is noted in filings as segment reporting not directly summing to the GAAP total. Still, the bulk of the revenue is clearly tied to the equipment sales.

Looking at the most recent quarter, Q3 2025, the revenue picture was slightly different, showing a sequential improvement:

• Consolidated Revenues (Q3 2025): $979.1 million.
• Lift Truck Revenues (Q3 2025): $929 million, a 4% year-over-year decline.
• Electric units accounted for 32% of truck sales as of Q2 2025.
• The Americas remains the largest geographic market, representing 75.3% of sales as of Q2 2025.
• Financing activities also contribute; dividends from the HYGFS joint venture jumped 79.5% year-over-year to $7.9 million in Q3 2025.

The Aftermarket parts and service sales are generally considered high-margin and recurring, which is a key strategic focus to stabilize earnings when new truck volumes are down. The rental and used equipment sales provide a secondary channel for monetization of the existing fleet. The company's focus on increasing service volume through its distribution network is a direct action to bolster these recurring revenue streams.

Finance: draft 13-week cash view by Friday.