Hyster-Yale dealer sales for Americas sink 20%

Materials handling equipment manufacturer Hyster-Yale saw its dealer sales slump continue in the third quarter amid tariff challenges, partially offset by higher direct sales and strategic pricing shifts. 

HYG Financial Services (HYGFS), a joint venture owned 20% by Hyster-Yale and 80% by Wells Fargo Financial Leasing, received $1.4 billion in loans from Wells Fargo at the end of Q3, unchanged year over year, according to the company’s Nov. 4 10-Q filing with the SEC.  

Hyster-Yale’s dividends from HYGFS, which provides lift truck financing for Hyster-Yale dealers and customers in the United States, jumped 79.5% YoY to $7.9 million. Hyster-Yale’s incremental obligations to Wells Fargo, which removes receivables guaranteed from HYGFS’ loans, rose 6.3% YoY to $262.6 million. 

BY THE NUMBERS: Cleveland-based Hyster-Yale continues to feel the strain of volatile interest rates, tariff pressures and geopolitical shifts, “all of which are influencing long-term investment decisions,” Chief Executive Rajiv Prasad said during today’s earnings call. 

“Many customers are postponing capital expenditures and taking a more conservative approach to balance sheet management, spiking uncertainty about the trajectory of the interest rates, inflation and broader economic stability,” he said.  

Hyster-Yale reported in Q3: 

• Dealer sales for the Americas totaled $330.1 million, down 20% YoY; 
• Direct sales for the Americas rose 9% YoY to $169.7 million; 
• Total revenue for the Americas fell 5% YoY to $732.7 million; 
• Total dealer sales dropped 14.1% YoY to $487.9 million; 
• Total direct sales increased 9.2% YoY to $171.6 million; 
• Total revenue declined 3.6% YoY to $979.1 million; and 
• A net loss of $2.3 million, down from a $17.2 million profit in Q3 2024. 

Despite decreased dealer sales, the approximate value of unit bookings rose 2.7% YoY to $380 million, “partly due to higher prices on our trucks driven by higher tariff-related material costs,” Prasad said.  

New equipment innovations driven by autonomous technology and electrification are also contributing to elevated prices for some products, Prasad said. However, low-cost foreign competitors, primarily in Europe and South America, are compressing margins in those markets, he said. 

BIGGER PICTURE: Hyster-Yale is taking measures to navigate economic challenges while preparing for a potential rebound in demand next year.  

For one, the company is expanding its modular lift-truck models that “support customer applications from basic to complex,” Prasad said. 

“This allows customers to select configurations that best fit their operational requirements and budget constraints. The flexibility of our solution helps customers increase productivity at the lowest cost of ownership.” 

— Rajiv Prasad, CEO, Hyster-Yale

Hyster-Yale is also developing “advanced warehouse truck technologies” to enhance safety, efficiency and automation options. Materials handling innovations enable customers to optimize warehouse operations while reducing operational costs, Prasad said. 

Moreover, the OEM is working to strengthen relationships with dealers and end customers by offering “comprehensive support throughout the buying cycle,” Prasad said. This includes analyzing fleet performance, identifying opportunities for upgrades and providing responsive aftermarket support to minimize downtime. 

And while some customers may continue to defer purchasing, the expenses and operational inefficiencies associated with aging equipment “make new fleet acquisitions inevitable,” Prasad said. 

“As maintenance expenses and downtime increase, the financial and productivity advantages from new truck investments become more apparent,” he said.  

MARKET REACTION: Shares of Hyster-Yale [NYSE: HY] were down 1.4% from market open to $34.08 as of market close today. It has a market capitalization of $603.9 million.  

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