Hyster-Yale posts loss due to tariffs, lower shipments
HYGFS dealer subsidies down 22.1% YoY
Hyster-Yale reported a fourth-quarter operating loss and lower full-year revenue as tariffs and reduced lift-truck shipments pressured performance in 2025.
Cleveland-based Hyster-Yale (HY) also disclosed additional details about leasing and financing activity tied to its joint venture with Wells Fargo Financial Leasing, HYG Financial Services (HYGFS), in its annual report for the year ended Dec. 31, 2025, released on March 3.
By the numbers
Results for the year included:
- HYGFS right-of-use assets and lease liabilities: $21.9 million, up 33.4% year over year;
- Recourse exposure: $112.1 million of the company’s $134.5 million total recourse and repurchase obligations tied to HYGFS transactions;
- Lift truck purchases by HYGFS: $628.9 million in 2025, up 3.6% YoY;
- Operating lease obligations: $30.8 million, up 22.7% YoY;
- Dealer subsidies: $9.5 million, down 22.1% YoY;
- Administrative and remarketing service income: $6.5 million, up 6.6% YoY;
- Equity investment in HYGFS: $28.4 million, up 2.5% YoY; and
- Dividends received from HYGFS: $8 million, up 81.8% YoY;
HY’s wider performance also declined, according to the earnings release:
- Full-year HY revenue: $3.8 billion, down 12.5% YoY;
- Fourth-quarter HY revenue: $923.2 million, down 13.5% YoY;
- Q4 HY operating loss: $37.2 million, compared with a $32.3 million operating profit in 2024;
- Q4 tariff impact: About $40 million in costs;
- HY Q4 lift-truck revenue: $871.4 million, down 14.7% YoY;
- Bookings: $540 million in Q4, up 42.1% sequentially and 35% YoY;
- Backlog: $1.3 billion, down 33.7% YoY;
Hyster-Yale expects Q1 2026 to mark the trough of the current cycle, with shipment volume and revenue improving through the year, according to the release. Management forecasts a small loss in the first half of 2026, followed by stronger revenue and operating profit in the second half as demand and production recover.
MARKET REACTION: Shares of Hyster-Yale [NYSE: HY] were down 1.8% or 68 cents from market open to $37.72 as of market close today. It has a market capitalization of $681 million.
The fourth annual Equipment Finance Connect at the C. Baldwin in Houston May 18-19 is the only event that brings together the equipment industry to share insights, attend discussions on crucial industry topics and network with peers. Learn more about the event and register here.
