Hyster-Yale Outlook Cut to Negative by Moody's on Leverage Concerns

Moody's Ratings has affirmed Hyster-Yale Materials Handling, Inc.'s (NYSE: HY) Ba3 corporate family rating but revised the company's outlook to negative from stable. The ratings agency cited concerns over the forklift manufacturer's expected leverage and cash flow performance in the coming years.

Outlook Cut on Leverage and Cash Flow Concerns

The revision to a negative outlook reflects Moody's expectation of moderately high debt-to-EBITDA and weak cash flow generation through 2027. The firm anticipates Hyster-Yale's debt/EBITDA ratio will decline to below 4.0x over the next 12-18 months, with further improvement to below 3.0x thereafter, driven by volume growth and cost-reduction efforts.

According to the report, Hyster-Yale's revenue for the twelve months ending June 30, 2026, was $3.5 billion, a decline from a peak of $4.3 billion in 2024. The company's EBITA margin is typically thin, in the low- to mid-single digits.

Rating Affirmation Cites Market Position

The decision to affirm the Ba3 rating acknowledges Hyster-Yale's established position as a top 10 company in the global lift truck market. Moody's highlighted the company's large installed base of over one million lift trucks and its strategic investments in modular product platforms, automation, and energy solutions.

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Despite these strengths, the rating is constrained by significant concentration in a single product class and the cyclical nature of its end markets. The company generates approximately 75% of its lift truck sales in the Americas.

Liquidity Profile

Moody's maintained Hyster-Yale's SGL-3 speculative grade liquidity rating, describing its position as adequate. Key liquidity details as of June 30, 2026, include:

• Cash on hand of approximately $73 million.
• Roughly $200 million available under its $300 million asset-based revolving credit facility, which expires in June 2030.
• An outstanding term loan of $214 million that matures in May 2028.