What Happened?
Shares of lift truck and material handling solutions manufacturer Hyster-Yale Materials Handling (NYSE:HY) fell 13.4% in the afternoon session after the company reported a significant net loss for its second quarter and provided a weak outlook for the rest of the year. The materials handling equipment maker swung to a net loss of $13.9 million, or $0.79 per share, from a net income of $63.3 million in the same period last year. Revenue fell 18% to $956.6 million due to lower shipments and reduced prices. Management cited several headwinds, including rising product costs and weaker demand linked to tariff uncertainty. The company’s outlook for the remainder of 2025 also deteriorated, with officials expecting full-year revenues and profits to fall below the strong results of 2024.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Hyster-Yale Materials Handling? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Hyster-Yale Materials Handling’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for Hyster-Yale Materials Handling and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock dropped 20.6% on the news that the company reported weak third quarter earnings. Its revenue missed and its EBITDA fell short of Wall Street's estimates. The quarter revealed weakness in some geographies, such as the EMEA (Europe, Middle East, and Africa) region, as sales decreased by 21%, primarily due to supply chain challenges and lower production rates. The company also called out weaknesses in the lift truck market. Overall, this quarter could have been better.
Hyster-Yale Materials Handling is down 26.7% since the beginning of the year, and at $36.81 per share, it is trading 47.4% below its 52-week high of $70.02 from August 2024. Investors who bought $1,000 worth of Hyster-Yale Materials Handling’s shares 5 years ago would now be looking at an investment worth $903.41.
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