Hyster-Yale Materials Handling (NYSE:HY) Reports Sales Below Analyst Estimates In Q1 Earnings
Lift truck and material handling solutions manufacturer Hyster-Yale Materials Handling (NYSE:HY) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 13.8% year on year to $910.4 million. Its non-GAAP profit of $0.49 per share was in line with analysts' consensus estimates.
Is now the time to buy Hyster-Yale Materials Handling? Find out in our full research report.
Hyster-Yale Materials Handling (HY) Q1 CY2025 Highlights:
Revenue: $910.4 million vs analyst estimates of $947.8 million (13.8% year-on-year decline, 3.9% miss)
Adjusted EPS: $0.49 vs analyst estimates of $0.49 (in line)
Adjusted EBITDA: $35 million vs analyst estimates of $37.2 million (3.8% margin, 5.9% miss)
Operating Margin: 2.3%, down from 7.9% in the same quarter last year
Market Capitalization: $703.8 million
Company Overview
Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE:HY) designs, manufactures, and sells materials handling equipment to various sectors.
Sales Growth
Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, Hyster-Yale Materials Handling's 5.1% annualized revenue growth over the last five years was tepid. This fell short of our benchmark for the industrials sector and is a rough starting point for our analysis.
Hyster-Yale Materials Handling Quarterly Revenue
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Hyster-Yale Materials Handling's annualized revenue growth of 5.8% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak.
Hyster-Yale Materials Handling Year-On-Year Revenue Growth
This quarter, Hyster-Yale Materials Handling missed Wall Street's estimates and reported a rather uninspiring 13.8% year-on-year revenue decline, generating $910.4 million of revenue.
Looking ahead, sell-side analysts expect revenue to decline by 5.1% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds.
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Operating Margin
Hyster-Yale Materials Handling was profitable over the last five years but held back by its large cost base. Its average operating margin of 2% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point.
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