Lift truck and material handling solutions manufacturer Hyster-Yale Materials Handling (NYSE: HY) reported revenue ahead of Wall Streets expectations in Q3 CY2025, but sales fell by 3.6% year on year to $979.1 million. Its non-GAAP loss of $0.09 per share was 35.7% above analysts’ consensus estimates.

Is now the time to buy Hyster-Yale Materials Handling? Find out by accessing our full research report, it’s free for active Edge members.

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.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Hyster-Yale Materials Handling grew its sales at a tepid 6% compounded annual growth rate. This fell short of our benchmark for the industrials sector and is a poor baseline for our analysis.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Hyster-Yale Materials Handling’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 2% annually.

This quarter, Hyster-Yale Materials Handling’s revenue fell by 3.6% year on year to $979.1 million but beat Wall Street’s estimates by 2.5%.

Looking ahead, sell-side analysts expect revenue to decline by 3.3% over the next 12 months, similar to its two-year rate. This projection is underwhelming and suggests its products and services will face some demand challenges.

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Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development.

Hyster-Yale Materials Handling was profitable over the last five years but held back by its large cost base. Its average operating margin of 1.9% was weak for an industrials business. This result isn’t too surprising given its low gross margin as a starting point.

On the plus side, Hyster-Yale Materials Handling’s operating margin rose by 3.3 percentage points over the last five years, as its sales growth gave it operating leverage.

In Q3, Hyster-Yale Materials Handling’s breakeven margin was down 3 percentage points year on year. The contraction shows it was less efficient because its expenses increased relative to its revenue.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Sadly for Hyster-Yale Materials Handling, its EPS declined by 2.6% annually over the last five years while its revenue grew by 6%. However, its operating margin actually improved during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings.

Diving into the nuances of Hyster-Yale Materials Handling’s earnings can give us a better understanding of its performance. A five-year view shows Hyster-Yale Materials Handling has diluted its shareholders, growing its share count by 5.4%. This dilution overshadowed its increased operational efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don’t tell us as much about a company’s fundamentals.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For Hyster-Yale Materials Handling, its two-year annual EPS declines of 58.7% show it’s continued to underperform. These results were bad no matter how you slice the data.

In Q3, Hyster-Yale Materials Handling reported adjusted EPS of negative $0.09, down from $0.97 in the same quarter last year. Despite falling year on year, this print easily cleared analysts’ estimates. We also like to analyze expected EPS growth based on Wall Street analysts’ consensus projections, but there is insufficient data.

Key Takeaways from Hyster-Yale Materials Handling’s Q3 Results

It was good to see Hyster-Yale Materials Handling beat analysts’ EPS expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its EBITDA missed. Overall, this print had some key positives. Investors were likely hoping for more, and shares traded down 1.4% to $34.15 immediately after reporting.

So do we think Hyster-Yale Materials Handling is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.