NYSE:HY
HYSTER-YALE, INC.
A global provider of industrial trucks and storage solutions leveraging a robust aftermarket network to drive consistent cash flow growth.
Key Metrics
Investment Thesis
Bull Case
Investors may favor HYSTER-YALE due to its diversified revenue model that combines cyclical new equipment sales with stable aftermarket service income, providing a smoother earnings profile. The strategic shift toward electric propulsion aligns with long-term regulatory trends and offers potential for margin expansion as the company captures value in emerging battery technologies. Strong free cash flow generation relative to capital expenditures supports consistent dividend payments and provides flexibility for targeted M&A or share buybacks.
Bear Case
The stock faces headwinds from elevated interest rates which increase borrowing costs, evidenced by $33.8M in interest expense and significant debt repayments reducing net income potential. A global economic recession could disproportionately impact the industrial sector, leading to delayed capital expenditure by customers and reduced orders for new machinery. High levels of inventory at $754.3M pose a risk if demand softens, potentially forcing write-downs or requiring costly storage solutions while cash reserves remain relatively tight at $96.6M.
About HYSTER-YALE, INC.
HYSTER-YALE, INC. (NYSE: HY) is a leading manufacturer of material handling equipment, providing industrial trucks, lifts, and storage systems to global markets across logistics, manufacturing, and retail sectors. The company specializes in designing durable machinery that optimizes supply chain efficiency for diverse industries ranging from heavy industry to e-commerce fulfillment centers. With a strong presence in the aftermarket service market, HYSTER-YALE generates significant recurring revenue through parts sales and maintenance contracts for its extensive installed base of equipment.
Analysis
Management Discussion
The company delivered strong operational performance with revenue reaching $4.31B in 2024, up from $3.55B in 2022, reflecting resilient demand for industrial mobility solutions. Net income improved significantly to $144.2M in 2024 after a loss in 2022, driven by improved cost management and favorable mix shifts toward higher-margin electric units. Cash flow from operations of $170.7M demonstrates healthy liquidity generation, though significant cash outflows for debt repayment ($198.5M) and acquisitions indicate active capital allocation to balance sheet optimization.
Industry Overview
The material handling equipment industry is experiencing a structural shift toward electrification and automation as logistics companies seek to reduce carbon footprints and increase warehouse efficiency. Consolidation in the sector continues as smaller players struggle with rising input costs, creating opportunities for established manufacturers with strong balance sheets like HYSTER-YALE. Competition remains fierce globally, particularly from Asian competitors offering lower-priced alternatives, forcing incumbents to compete on service quality and technology innovation.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $3.55B | $4.12B | $4.31B |
| Cost of Revenue | $3.11B | $3.33B | $3.41B |
| Gross Profit | $433.9M | $785.6M | $895.5M |
| Operating Expenses | $473.0M | $576.9M | $650.7M |
| Operating Income | $-39.1M | $208.7M | $244.8M |
| R&D | $100.7M | $119.7M | $135.9M |
| G&A | $473.0M | $576.9M | $628.1M |
| Stock-Based Comp | $6.4M | $29.3M | $23.6M |
| D&A | $43.4M | $45.1M | $47.6M |
| Depreciation | $38.9M | $40.8M | $43.3M |
| Amortization | $4.5M | $4.3M | $4.3M |
| Other OpEx | $-100.7M | $-119.7M | $-113.3M |
| Non-Operating Income | $-23.3M | $-27.7M | $-25.8M |
| Interest Expense | $28.4M | $37.3M | $33.8M |
| Pre-Tax Income | $-62.4M | $181.0M | $219.0M |
| Income Tax | $9.2M | $52.9M | $74.8M |
| Continuing Ops | $-71.6M | $128.1M | $144.2M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-71.6M | $128.1M | $144.2M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-71.6M | $128.1M | $144.2M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $1.46B | $1.49B | $1.43B |
| Accounts Receivable | $523.6M | $497.5M | $488.4M |
| Inventory | $799.5M | $815.7M | $754.3M |
| Prepaid Expenses | $76.6M | $98.1M | $94.0M |
| Other Current Assets | $59.0M | $78.8M | $96.6M |
| Long-Term Assets | $567.5M | $589.0M | $595.9M |
| PP&E (Net) | $310.0M | $313.9M | $306.7M |
| Intangibles | $42.7M | $39.3M | $33.1M |
| Goodwill | $51.3M | $53.3M | $54.6M |
| Operating Leases | $57.2M | $75.1M | $96.0M |
| Other LT Assets | $46.9M | $50.6M | $50.0M |
| Total Assets | $2.03B | $2.08B | $2.03B |
| Current Liabilities | $1.34B | $1.22B | $1.06B |
| Accounts Payable | $585.8M | $523.5M | $447.8M |
| Current Leases | $14.4M | $15.9M | $15.9M |
| Other Current Liab | $742.7M | $679.2M | $594.2M |
| Long-Term Liabilities | $458.2M | $453.7M | $477.2M |
| LT Operating Leases | $45.9M | $62.0M | $85.2M |
| Other LT Liab | $275.2M | $308.4M | $337.8M |
| Total Liabilities | $1.80B | $1.67B | $1.54B |
| Shareholders' Equity | $225.1M | $406.8M | $494.1M |
| Retained Earnings | $152.7M | $256.3M | $374.6M |
| AOCI | $-246.2M | $-194.3M | $-237.0M |
| Treasury Stock | $0 | — | $13.6M |
| Total L&E | $2.03B | $2.08B | $2.03B |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-71.6M | $128.1M | $144.2M |
| Non-Cash Adjustments | $-175.3M | $134.1M | $158.2M |
| Working Capital Changes | $287.5M | $-111.5M | $-131.7M |
| Cash from Operations | $40.6M | $150.7M | $170.7M |
| Capital Expenditures | $28.8M | $35.4M | $47.8M |
| Cash from Investing | $-35.4M | $-34.5M | $-47.6M |
| Debt Issuances | $135.0M | $138.8M | $168.9M |
| Debt Repayments | $97.6M | $161.1M | $198.5M |
| Share Buybacks | — | — | $-14.0M |
| Dividends Paid | $21.8M | $22.3M | $24.0M |
| Cash from Financing | $-10.9M | $-100.5M | $-100.1M |
| FX Effect | $-800.0K | $4.1M | $-5.2M |
| Net Change in Cash | $-6.5M | $19.8M | $17.8M |
| Beginning Cash | $65.5M | $59.0M | $78.8M |
| Ending Cash | $59.0M | $78.8M | $96.6M |
Frequently Asked Questions
How does HYSTER-YALE, INC. make money?
The company operates primarily through three core segments: Material Handling Equipment manufacturing, which includes electric and internal combustion trucks; Lift Trucks and Storage Systems focusing on specialized lifting solutions; and the Aftermarket Services segment that generates substantial revenue from parts distribution, maintenance services, and recycling of used equipment.
What are the main risks for HY?
Fluctuations in raw material costs such as steel and lithium could compress gross margins given the capital-intensive nature of manufacturing heavy equipment. Economic slowdowns in key markets like Europe or North America could reduce demand for new industrial machinery and impact aftermarket parts sales cycles. Intense price competition from low-cost manufacturers, particularly from Asia, poses a threat to market share in lower-end equipment categories.
What is HY's competitive advantage?
HYSTER-YALE benefits from a high-density installed base of equipment worldwide, creating a powerful aftermarket revenue stream with lower capital intensity than new unit sales. The company possesses deep technical expertise in battery technology and electric propulsion systems, positioning it as a leader in the transition to sustainable material handling solutions. Its global distribution network allows for rapid response times and superior customer support compared to competitors with less decentralized operations.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.