• Revenue: 2024 revenues of $4.3 billion, a 5% improvement over the prior year.
• Adjusted Operating Profit: $267 million, improved by nearly $60 million versus prior year.
• Adjusted Operating Profit Margin: 6%, the strongest full-year performance in the company's history.
• Adjusted Net Income: $159 million, increasing 26% from the prior year period.
• Q4 Revenue: $1.1 billion, grew by 4% versus prior year and by 5% sequentially.
• Q4 Adjusted Operating Profit: $54 million, increasing by 10% year-over-year and nearly 60% sequentially.
• Q4 Adjusted Earnings Per Share: $1.47.
• Lift Truck Business Revenue Growth: 5% increase, with adjusted operating profits improving by 28%.
• Cash from Operations: $81 million in Q4, increasing full-year generation to $170 million.
• Debt Reduction: Debt dropped by more than 5% compared to Q3 levels.
• Inventory Reduction: Total inventory decreased by $60 million from prior year levels and by $100 million sequentially.
• Working Capital: Represented 18% of sales in Q4, down from 21% in Q3.
• Unused Borrowing Capacity: $290 million at year-end 2024, improving by nearly $30 million compared to the end of Q3.

• Warning! GuruFocus has detected 2 Warning Signs with USNA.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Hyster Yale Inc (NYSE:HY) reported a 5% increase in 2024 revenues, reaching $4.3 billion, outpacing global GDP growth.
• The company's adjusted operating profit improved by nearly $60 million, achieving a 6% margin, the strongest in its history.
• The Americas Lift Truck business led the strong performance, with a 28% improvement in adjusted operating profits.
• Hyster Yale Inc (NYSE:HY) made significant progress on strategic initiatives, including footprint optimization programs aimed at reducing costs and improving efficiency.
• The company is expanding its lineup of modular and scalable products, enhancing manufacturing synergies and profitability.

Negative Points

• The global Lift Truck booking market continued to decline in 2024, with lower demand and order cancellations impacting performance.
• Hyster Yale Inc (NYSE:HY) expects a significant year-over-year revenue decrease in 2025 due to anticipated lower lift truck production levels.
• The company faces increased market competitiveness, which is expected to lead to a decline in product margins in 2025.
• Economic uncertainty, including potential tariffs and trade wars, remains a key area of concern for Hyster Yale Inc (NYSE:HY).
• The hydrogen fuel cell industry, where Nuvera operates, faces slow customer adoption rates due to hydrogen supply constraints and delayed customer vehicle development programs.

Q & A Highlights

Q: Al, based on last quarter's market outlook for 2025, it seemed like the bookings market for lift trucks globally would be flat. However, your recent commentary suggests a potential decline. Is that correct? A: Rajiv Prasad, President and CEO: Our guidance remains consistent. We expect a weaker first half of 2025 but anticipate an increase in the second half, leading into a strong 2026. The downturn was due to overbooking in 2022 and 2023, which moderated in 2024. We also saw an unexpected increase in cancellations towards the end of the year, prompting us to adjust production rates. However, recent months have shown a return to normal cancellation levels, and we expect market improvement in the second half of 2025.

Q: Can you elaborate on the impact of cancellations and how they influenced your production adjustments? A: Rajiv Prasad, President and CEO: The increase in cancellations was unexpected and led us to lower production rates more than anticipated. This adjustment was necessary due to the market dropping more than expected and higher cancellations. However, recent trends show cancellations have returned to normal levels, allowing us to stabilize production.

Q: What are your expectations for the Lift Truck business in 2025, given the current market conditions? A: Scott Minder, CFO: We anticipate a significant year-over-year revenue decrease due to lower production levels. Gross profit margins are expected to decline due to reduced volumes and increased market competitiveness. Operating expenses will increase to support long-term growth initiatives, but we aim to offset some costs through efficiency improvements.

Q: How is Bolzoni expected to perform in 2025, and what are the key factors influencing its outlook? A: Scott Minder, CFO: Bolzoni's revenues are expected to decline due to phasing out lower-margin legacy components. However, operating margins should increase, and operating profit is expected to be comparable to 2024.

Q: What is the outlook for Nuvera in 2025, particularly regarding its new products? A: Scott Minder, CFO: Nuvera plans to increase customer demonstrations and orders for its new HydroCharge product, which provides off-grid charging for electric vehicles. We expect full-year revenues to increase, supported by the new product and a modest rise in development costs for a more powerful fuel cell engine. Overall, Nuvera's operating results should improve modestly compared to 2024.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.