US-based materials handling equipment maker Hyster-Yale reports a Q1 revenue fall of 13% year-on-year (y-o-y) and 14% quarter-on-quarter (q-o-q) to USD795.2 million, which it says is “primarily driven by a shift toward lighter-duty, lower-priced trucks and depletion of excess backlog”.

Hyster-Yale is now anticipating "a significant loss position" the first half of the year, stating it expects the half to be its "financial low point".

In Q1, Hyster-Yale also recorded an operating loss of USD28 million, with some USD30 million in “gross tariff costs”.

Q1 revenues for the Lift Truck business were USD740 million, a drop of 14%, attributed in part to lower shipments of higher-value core counterbalance forklifts.

Q1 gross profit for the Lift Truck business was USD104.3 million, down 34% y-o-y and 7% q-o-q.

Gross profit for the Americas was USD93.7 million, a fall of 34% y-o-y and 1% q-o-q.

“The company has introduced new models designed to address growing demand for standard and value configurations in the core counterbalanced truck market, leveraging its modular and scalable platform,” Hyster-Yale states in its financial report. 

“This proactive response reflects market preferences that continue to shift toward lighter-duty and lower-priced trucks. While these new offerings will strengthen our competitive positioning, the transition reduced shipments for higher-priced traditional models and contributed to a year-over-year decrease in revenue.

“Additionally, the company believes macroeconomic challenges, including ongoing economic uncertainty and cautious customer spending, further reduced potential revenues in Q1 2026.”

Hyster-Yale business, attachment maker Bolzoni Group, by comparison, increased its Q1 revenue by 3% y-o-y and 10% q-o-q to USD82.9 million.

“This growth was primarily driven by favourable foreign currency movements, which more than compensated for a shift in sales toward lower-priced products and a decrease in unit volume in the Americas,” Hyster-Yale states. 

Operating profit, however, fell sharply in Q1 to USD100,000, down 117% y-o-y and 98% q-o-q, which it says is “mainly due to elevated employee expenses following the Valmar acquisition completed in 2025”.

Hyster-Yale is now forecasting a “modest full-year operating profit for 2026”.

“While the first half of the year is anticipated to be a significant loss position, driven by lower shipment volumes resulting from reduced bookings and backlog in 2025,” Hyster-Yale states. “As well as the impact of additional Section 232 tariffs, the Iran conflict, other macroeconomic pressures, and a low quarter tax rate, the company believes that Q2 2026 will represent its financial low point.

“As the company moves into the second half of 2026, strengthened booking activity, a recovering backlog and pricing adjustments are expected to fuel revenue growth. In addition, higher-margin growth initiatives, ongoing cost-reduction efforts, and operational efficiency improvements are expected to drive a meaningful rebound in operating profit. 

“Management expects positive developments in the second-half of the year to more than offset first half losses, resulting in a modest full-year operating profit and a higher full-year tax rate with improved full-year financial performance compared to 2025.”