Liquidity is under pressure as the company reported a negative $32.9 million in free cash flow for 2026Q1, yet continued to distribute $9.1 million in dividends.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'05 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Cash from Operations | 89.6M | 86.1M | 170.7M | 150.7M | 40.6M | -253.5M | 166.9M | 76.7M | 67.6M | 164.7M | -48.9M | 89.4M | 100M | 152.9M | 128.7M | 54.6M | 47.5M | 115.9M | -27.3M | 34.6M | 11.9M | 80M | 50.1M | 72.1M |
| Operating CF Margin % | - | 2.28% | 3.96% | 3.66% | 1.14% | -8.24% | 5.94% | 2.33% | 2.13% | 5.71% | -1.9% | 3.47% | 3.61% | 5.73% | 5.21% | 2.15% | 2.64% | 7.86% | -0.97% | 1.27% | 0.5% | 3.89% | 2.82% | 4.54% |
| Operating CF Growth % | 1188.55% | -49.56% | 13.27% | 271.18% | 116.02% | -251.89% | 117.6% | 13.46% | -58.96% | 436.81% | -154.7% | -10.6% | -34.6% | 18.8% | 135.71% | 14.95% | -59.02% | 524.54% | -178.9% | 190.76% | -85.13% | 59.68% | -30.51% | - |
| Net Income | -99.2M | -58M | 144.2M | 125.9M | -71.6M | -183.2M | 38.5M | 36.6M | 34.3M | 48.9M | 42.3M | 75.1M | 110.2M | 110.2M | 98.1M | 82.6M | 32.3M | -43.1M | -376M | 39.3M | 18.1M | 10.7M | 16.4M | 12.3M |
| Depreciation & Amortization | 46.4M | 45.8M | 47.6M | 45.1M | 43.4M | 46.2M | 42.9M | 43.3M | 44M | 42.8M | 39.1M | 28.9M | 29.7M | 30.2M | 28M | 31.3M | 33.9M | 36.2M | 0 | 0 | 41.1M | 41.9M | 44.1M | 47.7M |
| Stock-Based Compensation | 8.4M | 7.5M | 23.6M | 29.3M | 6.4M | 4M | 1.3M | 8.2M | 5.7M | 8.8M | 4.9M | 2.9M | 6M | 14.2M | 1.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -2.3M | -1.5M | -8.2M | -1.1M | -100K | 19.8M | -2.5M | -6.8M | -3.2M | 8.1M | -7.4M | -1.4M | 1.8M | -9.6M | -13.6M | 8.6M | -1.1M | 28.5M | 0 | 0 | -8.7M | -2.1M | 6.2M | 3.9M |
| Other Non-Cash Items | 38.3M | 65.1M | 61.2M | 49.9M | 22.9M | 40.5M | 15.8M | 22M | 23M | 300K | -15.2M | 8.5M | -15.6M | 25.9M | -4.9M | -2.2M | -32.2M | 94.3M | 348.7M | 192.6M | -42.1M | 10.3M | -52.1M | -273M |
| Working Capital Changes | 96.6M | 27.2M | -97.7M | -98.4M | 39.6M | -180.8M | 70.9M | -26.6M | -36.2M | 55.8M | -112.6M | -24.6M | -32.1M | -18M | 19.8M | -68M | 8.5M | 0 | 0 | -197.3M | 3.5M | 19.2M | 35.5M | 281.2M |
| Change in Receivables | 53.3M | 25.3M | -14.2M | 26.8M | -89.5M | -54.6M | 68.9M | -9.6M | 58M | -44M | -27.5M | 6.2M | -8.5M | -42M | 27.2M | -59.3M | -91.9M | 0 | 0 | 0 | -39M | -14.1M | -43.1M | -27.5M |
| Change in Inventory | 154.9M | 156.6M | 35.3M | -4.3M | -39.1M | -289.7M | 66.6M | -37.9M | -125.4M | -43.6M | -14.9M | 6.2M | -28.8M | -27.1M | 400K | -37.8M | -83.1M | 0 | 0 | 0 | -31M | -71.5M | -25.7M | 12.5M |
| Change in Payables | -84.4M | -79.9M | -55.9M | -81.4M | 78.7M | 129.5M | 4.3M | 1.9M | 23.3M | 125.1M | -53.8M | -39.3M | 4.7M | 56.2M | -5M | 14.6M | 150.6M | 0 | 0 | 0 | 23M | 91.3M | -44.1M | -10.2M |
| Cash from Investing | -61.7M | -62.7M | -47.6M | -34.5M | -35.4M | -24.5M | -43.7M | -42M | -110.9M | -47.3M | -145.1M | -31.3M | -44.4M | -26.1M | -19.5M | -15.9M | -8.5M | 5.8M | -37.5M | -33.9M | -30.1M | -17.3M | -11.1M | -7.3M |
| Capital Expenditures | -51.9M | 0 | -47.8M | -35.4M | -28.8M | -44.3M | -51.7M | -49.7M | -38.8M | -41M | -42.7M | -46.6M | -48.5M | -36.5M | -19.8M | -16.5M | -12.1M | -5.8M | 0 | 0 | -43M | -33M | -27.6M | -16.1M |
| CapEx % of Revenue | 1.42% | 1.66% | 1.11% | 0.86% | 0.81% | 1.44% | 1.84% | 1.51% | 1.22% | 1.42% | 1.66% | 1.81% | 1.75% | 1.37% | 0.8% | 0.65% | 0.67% | 0.39% | - | - | 1.79% | 1.6% | 1.55% | 1.01% |
| Acquisitions | -1.5M | -2.6M | -1.6M | -2.1M | -8.4M | 4.1M | 0 | 0 | -78M | -2M | -116.1M | 900K | -3.9M | 0 | 0 | 0 | 3M | 0 | 0 | 0 | 4M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -8.3M | -60.1M | 1.8M | 1.9M | 1.3M | 4.1M | 8M | 7.7M | 5.9M | 1.3M | 13.7M | 14.4M | 8M | 10.4M | 300K | 600K | 600K | 11.6M | -37.5M | -33.9M | 8.9M | 15.7M | 16.5M | 8.8M |
| Cash from Financing | -25.4M | -800K | -100.1M | -100.5M | -10.9M | 193.6M | -40.6M | -51.6M | -87.6M | 53.1M | 77.9M | -7.1M | -110.5M | -104.4M | -144.4M | -19.5M | -24.4M | -18.3M | 48M | -34.1M | 43.1M | -26.3M | -34.1M | -73.8M |
| Debt Issued (Net) | 15.1M | 30.4M | -60.8M | -76M | 11.1M | 223M | -18.9M | -29.8M | -72.2M | 78M | 99M | 11.4M | -44.3M | -84.7M | -91.1M | -9.3M | -19.4M | -18.3M | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | -4.5M | -14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K | -48.2M | -3M | -2.2M | 0 | 0 | 35M | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -28.3M | -25.4M | -24M | -22.3M | -21.8M | -21.6M | -21.3M | -21M | -20.4M | -19.8M | -19.2M | -18.4M | -17.8M | -16.7M | -42.8M | -10M | -5M | 0 | 0 | 0 | -5M | -5M | -15M | 0 |
| Share Repurchases | 0 | -4.5M | -14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K | -48.2M | -3M | -2.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -12.2M | -1.3M | -1.3M | -2.2M | -200K | -7.8M | -400K | -800K | 5M | -5.1M | -1.9M | 0 | -200K | 0 | -8.3M | -200K | 0 | -35M | 48M | -34.1M | 48.1M | -21.3M | -19.1M | -73.8M |
| Net Change in Cash | 46M | 26.6M | 17.8M | 19.8M | -6.5M | -85.9M | 86.8M | -19.1M | -136.4M | 176.9M | -111.9M | 43.7M | -64.3M | 24.4M | -33.6M | 15.4M | 6.3M | 105.2M | -16.8M | 0 | 23.8M | 36.1M | 6.4M | -4.7M |
| Free Cash Flow | 37.7M | 23.6M | 122.9M | 115.3M | 11.8M | -297.8M | 115.2M | 27M | 28.8M | 123.7M | -91.6M | 42.8M | 51.5M | 116.4M | 108.9M | 38.1M | 35.4M | 110.1M | -27.3M | 34.6M | -31.1M | 47M | 22.5M | 56M |
| FCF Margin % | 1.03% | 0.63% | 2.85% | 2.8% | 0.33% | -9.68% | 4.1% | 0.82% | 0.91% | 4.29% | -3.56% | 1.66% | 1.86% | 4.37% | 4.41% | 1.5% | 1.96% | 7.46% | -0.97% | 1.27% | -1.3% | 2.28% | 1.26% | 3.53% |
| FCF Growth % | -38.2% | -80.8% | 6.59% | 877.12% | 103.96% | -358.51% | 326.67% | -6.25% | -76.72% | 235.04% | -314.02% | -16.89% | -55.76% | 6.89% | 185.83% | 7.63% | -67.85% | 503.3% | -178.9% | 211.25% | -166.17% | 108.89% | -59.82% | - |
| FCF per Share | 2.12 | 1.33 | 6.94 | 6.63 | 0.70 | -17.71 | 6.86 | 1.61 | 1.73 | 7.49 | -5.58 | 2.62 | 3.09 | 6.93 | 6.48 | 2.26 | 2.11 | 6.63 | -1.63 | 2.06 | -1.85 | 2.79 | 1.34 | 3.33 |
| FCF Conversion (FCF/Net Income) | -0.38x | -1.43x | 1.20x | 1.20x | -0.55x | 1.47x | 4.50x | 2.14x | 1.95x | 3.39x | -1.14x | 1.20x | 0.91x | 1.39x | 1.31x | 0.66x | 1.47x | -2.69x | 0.07x | 0.88x | 0.66x | 7.48x | 3.05x | 5.86x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Fixed cost absorption failure
According to quarterly financial data, the relationship between net income and operating cash flow has become increasingly erratic, with the OCF/NI ratio reaching 1.08 in 2026Q1, signaling that reported earnings are failing to provide a reliable proxy for the company's actual cash-generating capacity during this downturn.
The significant volatility in the OCF/NI ratio suggests that accruals and non-cash adjustments are masking the underlying cash burn of the core business. Investors should monitor whether this divergence is a temporary result of inventory management or a structural issue where earnings are consistently decoupled from cash reality.
As reported in recent financial statements, Hyster-Yale's free cash flow trajectory has been highly inconsistent, swinging from a negative 5.2% margin in 2025Q1 to a positive 5.9% in 2024Q4, which underscores the company's extreme sensitivity to cyclical demand shifts and working capital fluctuations.
The inability to maintain positive free cash flow margins suggests that the company's current operating model lacks the resilience required to navigate periods of revenue contraction. This inconsistency warrants further investigation into whether the business can achieve sustainable cash generation without a significant recovery in industrial equipment demand.
Based on the provided cash flow tables, working capital changes have been a primary driver of liquidity swings, most notably the $73.5 million cash outflow in 2025Q1, which highlights the company's vulnerability to inventory build-ups and the timing of receivables collection in a cooling market environment.
The reliance on working capital shifts to manage cash flow suggests that the company may be struggling to align its production schedules with actual end-market demand. This dynamic appears to be a significant risk factor, as it forces the company to absorb cash outflows during periods when operational performance is already under pressure.
Financial records indicate that Hyster-Yale has continued to prioritize dividend payments, totaling $9.1 million in 2026Q1, despite generating negative operating cash flow, which suggests a potential misalignment between capital return policies and the company's current ability to self-fund its ongoing operational and R&D requirements.
Maintaining dividend payouts while the business is in a net loss position appears to be an aggressive capital allocation strategy that may limit the company's financial flexibility. Investors should monitor whether this commitment to shareholders will necessitate future external financing if the current cash burn persists.
Quick answers to the most common questions about buying HY stock.
Hyster-Yale Materials Handling, Inc. (HY) generated $86.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hyster-Yale Materials Handling, Inc. (HY) generated $23.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Hyster-Yale Materials Handling, Inc. (HY) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Hyster-Yale Materials Handling, Inc. (HY) returned $25.4M to shareholders via cash dividends and spent $4.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.