Impact of Tariffs on Business Strategy and Operations
Hyster-Yale is actively managing tariff impacts through monthly price adjustments based on actual product costs, reflecting a flexible pricing strategy to offset tariff-related cost increases.
The company has built in a 10-15% tariff impact into its outlook, with ongoing negotiations and adjustments, especially in China and India where tariffs remain high.
Tariffs have caused a $10 million negative impact on product margins in Q2, prompting proactive measures such as global sourcing and cost management to mitigate effects.
Management expects tariffs to negatively affect financial results in the second half of 2025 despite mitigation efforts, with some uncertainty about the timing and magnitude of tariff stabilization.
Adjusted EBITDA margin was 18.6%, above expectations despite unfavorable product mix and tariff impacts.
Cash from operations was near-record at $37 million, with debt reduced by $67 million year-over-year, lowering net debt to adjusted EBITDA leverage to 2.6x.
Diluted EPS was $0.34, down 17% year-over-year, while non-GAAP diluted EPS was $0.59, down 8% but up 34% sequentially from Q1.
Electronics segment sales declined 4%, with gross profit and margin down significantly due to higher freight, duties, and product mix.
Helios Technologies reported Q2 2025 sales of $212 million, exceeding the outlook of $206 million, driven by stronger Hydraulics segment sales and favorable foreign exchange.
Hydraulics segment sales declined 3% year-over-year but gross profit and margin improved due to cost reductions and favorable foreign exchange.
Operating income declined by $4.1 million year-over-year due to lower volume and increased SEA expenses.
Depreciation per unit (DPU) was $251, well below the sub-$300 North Star target, exceeding it by 16%, driven by fleet rotation and strong residual values.
Direct operating expenses per transaction day declined 3% year-over-year to about $36, reflecting disciplined cost control and operational efficiency.
Hertz reported $2.2 billion in revenue for Q2 2025, with adjusted corporate EBITDA turning positive at $1 million, a $460 million improvement year-over-year.
Liquidity stood at $1.4 billion at the end of June, supported by delayed Wells Fargo litigation resolution and efficient balance sheet management.
Vehicle utilization improved to 83%, a 300 basis point increase year-over-year, despite a 6% reduction in fleet size.
Dafinchi
