HYSTER-YALE ANNOUNCES STRATEGIC BUSINESS REALIGNMENT

Rhea-AI Summary

Hyster-Yale announced a strategic realignment of its Nuvera fuel cell business, integrating it into Hyster-Yale Materials Handling (HYMH). The restructuring aims to boost near-term profits and create an integrated energy solutions program at the Billerica facility.

Key changes include:

• Development of lithium-ion batteries, chargers, and energy management systems
• Creation of a mobile hybrid electric charging platform called HydroCharge
• Significant downsizing of the fuel cell program, focusing only on 125KW fuel cells for port equipment

The realignment is expected to deliver $25-35 million in annual cost savings starting in second half 2025, with one-time costs of $15-18 million in Q2 2025. The company projects accelerated battery program sales from 2024 levels, with HydroCharge product launches planned for late 2025.

This move is part of Hyster-Yale's broader strategy to transform its core forklift business while expanding into warehouse equipment, automation, and energy management solutions.

Positive

• Expected annual cost reductions of $25-35M starting H2 2025 ($15-20M direct + $10-15M indirect)
• Battery program sales projected to accelerate substantially from 2024 levels
• New HydroCharge product launch expected in H2 2025
• Strategic integration of battery and fuel cell technologies to create new revenue streams
• Optimization of manufacturing footprint and supplier structure to improve operational efficiency

Negative

• One-time restructuring costs of $15-18M in Q2 2025
• Significant downsizing of fuel cell program due to limited market uptake
• Current fuel cell business failing to meet profitability objectives
• Possible additional charges or expenditures as the restructuring progresses
• Supply chain disruptions and increased costs due to inflation remain as risks

Insights

Financial Analyst

Hyster-Yale's strategic realignment targets $25-35M annual cost savings with one-time $15-18M restructuring charge, reflecting pragmatic resource allocation toward more marketable technologies.

Hyster-Yale's (NYSE: HY) announced business realignment represents a significant financial and strategic repositioning. The company is substantially downsizing its Nuvera fuel cell operations while integrating remaining capabilities into its Hyster-Yale Materials Handling (HYMH) business, specifically targeting $15-20 million in direct annual cost reductions and $10-15 million in indirect savings beginning in H2 2025. This comes with a one-time restructuring charge of $15-18 million in Q2 2025 for employee severance and impairments.

This realignment reflects a data-driven decision acknowledging market realities - the company explicitly states its "current fuel cell business will not reach the Company's profitability objectives in an acceptable period" due to "limited and very focused up take of fuel cells" and "significantly changed political environment." Rather than continuing to fund underperforming operations, management is redirecting resources toward battery technology and modular charging platforms with clearer commercial pathways.

The strategic shift includes consolidating energy expertise at Nuvera's Billerica facility, focusing on lithium-ion battery modules, management systems, and charging solutions while maintaining a limited fuel cell program for specific 125KW applications in port equipment. This allows Hyster-Yale to preserve technological capabilities in fuel cells while concentrating investments in areas showing stronger market demand.

From a capital allocation perspective, management indicates this realignment should support "enhanced operating profitability at all points in the forklift truck market cycle" with "lower capital intensity and higher returns on total capital employed than in the past" - suggesting improved efficiency in resource deployment across market conditions.

Energy Industry Specialist

Hyster-Yale's pivot from broad fuel cell development to targeted battery solutions reflects pragmatic adaptation to clean energy commercialization realities and changing political landscape.

Hyster-Yale's strategic realignment of its Nuvera fuel cell business represents a significant shift in clean energy strategy driven by market adoption realities. The company's decision to dramatically downsize its fuel cell program while maintaining specific high-power applications (125KW for port equipment) reflects a pragmatic assessment of the current commercialization landscape for hydrogen technologies.

The integration of previously separate energy initiatives - lithium-ion battery modules, battery management systems, charging solutions, and the new HydroCharge™ hybrid platform - into a consolidated energy solutions program leverages technical synergies while focusing resources on technologies with clearer near-term market demand. This consolidation capitalizes on overlapping expertise in "controls, packaging, cooling and manufacturing" across different energy technologies.

Particularly noteworthy is the development of a "mobile, modular and scalable hybrid electric charging platform" for off-grid power applications. This adaptable approach addresses immediate market needs while maintaining the option to incorporate fuel cell technology in specific applications where it demonstrates competitive advantages. The hybrid approach allows Hyster-Yale to offer customers flexible solutions based on application requirements without committing exclusively to a single technology pathway.

The explicit mention of "significantly changed political environment" influencing this decision highlights how shifting regulatory and policy landscapes directly impact clean technology commercialization strategies. Rather than pursuing broad fuel cell applications, Hyster-Yale is taking a targeted approach focused on specific use cases while accelerating battery technology commercialization where market signals are stronger.

CLEVELAND, April 30, 2025 /PRNewswire/ -- Hyster-Yale, Inc. (NYSE: HY) (the "Company") today announced a strategic business realignment of its Nuvera fuel cell business designed both to increase near term profits and to create an integrated energy solutions program at Nuvera's Billerica facility which will be part of its Hyster-Yale Materials Handling (HYMH) business. That program will include HYMH's:

• Development, manufacturing, and commercialization of its lithium-ion battery modules, battery chargers, battery management systems, and energy management activities. All of these activities are critical to HYMH's success with the next generation of batteries expected to be used broadly in electric forklift trucks. These activities will be carried out in the Billerica facility and as needed, in HYMH's other facilities around the world.
  
  
• Development, manufacturing and commercialization of a mobile, modular and scalable hybrid electric charging platform to provide off grid power solutions. This platform will use both HYMH's battery solutions and also have a variant called HydroCharge^TM which incorporates Nuvera's patented fuel cell technology.
  
  
• A very significantly downsized and limited fuel cell program focused on completing final development and testing of its higher powered 125KW fuel cell for use in HYMH's port equipment and in larger HydroCharge^TM applications. This modest fuel cell program reflects the Company's conclusion, based on recent limited and very focused up take of fuel cells as an energy solution, as well as on a significantly changed political environment in the U.S. and around the world, that its current fuel cell business will not reach the Company's profitability objectives in an acceptable period.  

This strategic alignment is expected to achieve, beginning in the second half of 2025, direct annualized cost reductions of $15 to $20 million and indirect cost reductions of $10 to $15 million by absorbing Nuvera resources into open positions focused on accelerating development of its battery products and services and mobile charging platform as well as other HYMH immediate needs. The Company expects to incur employee severance and impairment costs in the second quarter of 2025 of approximately $15 to $18 million. Additional charges or expenditures are possible as the program progresses. 

Further, this program, which will take advantage of Nuvera's current technical skill base in each of the initiatives in Billerica, lays the groundwork for more rapid maturity, growth and profitability of its battery and charger programs; development, manufacturing and commercialization of its charging platforms for off grid power solutions; and its port equipment electric power solutions. The overall energy management program has significant technical and product synergies between fuel cells, lithium-ion batteries, chargers and the mobile charge platform in areas such as controls, packaging, cooling and manufacturing. Battery program sales are expected to accelerate substantially from 2024 levels in 2025 and in following years. Initial sales of its HydroCharge^TM product are expected to begin in the second half of 2025, and battery and fuel cell electric port equipment trucks are already in testing in customer applications. These three product activities are expected to meet not only HYMH's end user and dealer electric product distribution needs but also provide additional service revenue opportunities over time.

This strategic realignment is part of Hyster-Yale's broader strategic change program designed (in a manner consistent with the Company's vision of Transforming the Way Material Moves from Port to Home) to transform Hyster-Yale's strong historical core counterbalanced forklift truck business while building new business opportunities in the warehouse forklift truck market, automation, energy management, and attachment activities through its HYMH and Bolzoni businesses. The Company believes the programs underway to create modular, scalable products, an optimized manufacturing footprint, consolidate its supplier structure, and target a broader customer base with optimized customer solutions which are transforming its core counterbalanced forklift truck business, together with its warehousing, automation, energy management solutions, and attachment growth programs are expected to support revenue growth for the Company as well as enhanced operating profitability at all points in the forklift truck market cycle, and are expected to do that with lower capital intensity and higher returns on total capital employed than in the past.

Forward-looking Statements Disclaimer

The statements contained in this news release that are not historical facts are "forward-looking statements." These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation: (1) delays in delivery and other supply chain disruptions, or increases in costs as a result of inflation or otherwise, including materials, critical components and transportation costs and shortages, the imposition of tariffs on raw materials or sourced products, and labor, or changes in or unavailability of quality suppliers or transporters, including the impacts of the foregoing risks on the Company's liquidity, (2) impacts resulting from increased trade barriers and restrictions on international trade, including as a result of previously announced, and potentially new, changes to U.S. trade policy and tariffs as well as retaliatory tariffs imposed by other countries where the Company does business, (3) delays in manufacturing and delivery schedules, (4) reduction in demand for lift trucks, attachments and related aftermarket parts and service on a global basis, including any cyclical reduction in demand in the lift truck industry, (5) customer acceptance of pricing, (6) customer acceptance of, changes in the costs of, or delays in the development of new products, (7) the ability of the Company and its dealers, suppliers and end-users to access credit, or obtain financing at reasonable rates, or at all, as a result of interest rate volatility and current economic and market conditions, including inflation, (8) unfavorable effects of geopolitical and legislative developments on global operations, including without limitation the entry into new trade agreements and the imposition of tariffs and/or economic sanctions, including the Uyghur Forced Labor Prevention Act (the "UFLPA") which could impact the Company's imports from China, as well as armed conflicts, including the Russia/Ukraine conflict, the Israel and Gaza conflict and/or the conflict in the Red Sea, and their regional effects, (9) exchange rate fluctuations, interest rate volatility and monetary policies and other changes in the regulatory climate in the countries in which the Company operates and/or sells products, (10) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives and restructuring programs, (11) the successful commercialization of products and technology related to the energy solutions program, (12) political and economic uncertainties in the countries where the Company does business, as well as the effects of any withdrawals from such countries, (13) bankruptcy of or loss of major dealers, retail customers or suppliers, (14) introduction of new products by, more favorable product pricing offered by or shorter lead times available through competitors, (15) product liability or other litigation, warranty claims or returns of products, (16) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation, (17) the ability to attract, retain, and replace workforce and administrative employees, (18) disruptions resulting from natural disasters, public health crises, political crises or other catastrophic events, and (19) the ability to protect the Company's information technology infrastructure against service interruptions, data corruption, cyber-based attacks or network breaches.

About Hyster-Yale, Inc.

Hyster-Yale, Inc., headquartered in Cleveland, Ohio, is a globally integrated company offering a full line of lift trucks and solutions, including attachments and hydrogen fuel cell power products aimed at meeting the specific materials handling needs of its customers. Hyster-Yale's vision is to transform the way the world moves materials from Port to Home and deliver on its customer promises of: (1) thoroughly understanding customer applications and offering optimal solutions that will improve productivity at the lowest cost of ownership, and (2) providing exceptional customer care to create increasing value from initial engagement through the product lifecycle.

The Company's wholly owned operating subsidiary, Hyster-Yale Materials Handling, Inc., designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally primarily under the Hyster^® and Yale^® brand names. Subsidiaries of Hyster-Yale include Bolzoni S.p.A., a leading worldwide producer of attachments, forks and lift tables marketed under the Bolzoni^®, Auramo^® and Meyer^® brand names and Nuvera Fuel Cells, LLC, an alternative-power technology company focused on fuel cell stacks and engines. Hyster-Yale also has an unconsolidated joint venture in Japan (Sumitomo NACCO). For more information about Hyster-Yale and its subsidiaries, visit the Company's website at www.hyster-yale.com.

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SOURCE Hyster-Yale, Inc.

FAQ

What cost savings will Hyster-Yale (HY) achieve from its 2025 business realignment?

Hyster-Yale expects direct annualized cost reductions of $15-20 million and indirect cost reductions of $10-15 million starting in the second half of 2025. However, the company will incur $15-18 million in employee severance and impairment costs in Q2 2025.

How is Hyster-Yale (HY) restructuring its Nuvera fuel cell business in 2025?

Hyster-Yale is significantly downsizing its Nuvera fuel cell program, focusing only on completing development of 125KW fuel cells for port equipment. The company is integrating Nuvera's operations into HYMH's energy solutions program at the Billerica facility, shifting focus to battery solutions and mobile charging platforms.

When will Hyster-Yale (HY) launch its HydroCharge product?

Hyster-Yale plans to begin initial sales of its HydroCharge product, a hybrid electric charging platform incorporating Nuvera's fuel cell technology, in the second half of 2025.

What are the key products in Hyster-Yale's (HY) new energy solutions program?

The program includes lithium-ion battery modules, battery chargers, battery management systems, the HydroCharge mobile charging platform, and a limited 125KW fuel cell program for port equipment applications.

Why did Hyster-Yale (HY) reduce its fuel cell business operations?

Hyster-Yale downsized its fuel cell operations due to limited market uptake of fuel cells as an energy solution and changed political environment globally, concluding the business wouldn't meet profitability objectives in an acceptable timeframe.