Financial Results Archives - Material Handling Wholesaler

Hyster-Yale announces a 13% decrease in revenue in 2025

Thu, 05 Mar 2026 16:09:32 +0000

2025 Highlights and 2026 Outlook: Q4 bookings strengthened significantly, up 42% sequentially and 35% year-over-year, potentially signaling the beginning of demand recovery in the Americas Q4 operating cash flow increased to $57 million, driven by improved inventory efficiency Tariffs remained a major headwind, reducing Q4 and full‑year revenue and operating profit Q4 revenues down to $923 million, reflecting weaker shipments Q4 operating loss of $37 million, resulting from lower volumes and approximately $40 million in gross tariff costs Full-year 2025 revenue declined to $3.8 billion with an operating loss of $22 million, including approximately $100 million in gross tariff costs Shipment volumes expected to increase in the second half of 2026 as market conditions improve Moderate full-year 2026 operating profit expected; Strong revenue growth from improved volumes in the second-half of the year is anticipated to result in a profit, as opposed to a small loss in the first-half of 2026. Hyster-Yale, Inc. has reported consolidated results for the fourth quarter and full-year 2025. All comparisons are to the fourth quarter 2024, unless otherwise noted. Twelve Months Ended December 31, $ in millions except per share amounts) 2025 2024 % Change Revenues $3,769.3 $4,308.2 (13) % Operating Profit (Loss) $(22.1) $244.8 (109) % Net Income (Loss) $(60.1) $142.3 (142) % Diluted Earnings (Loss) per Share $(3.40) $8.04 (142) % Adjusted Operating Profit (1) $16.3 $267.4 (94) % Adjusted Net Income (Loss)(1) $(31.7) $159.0 (120) % Adjusted Diluted Earnings (Loss) per Share(1) $(1.79) $8.98 (120) % (1) Reconciliations of reported to adjusted figures are included below. ($ in millions except per share amounts) Three Months Ended Q4 2025 Q4 2024 % Change Q3 2025 % Change Revenues $923.2 $1,067.5 (14) % $979.1 (6) % Operating Profit (Loss) $(37.2) $32.3 (215) % $2.3 n.m. Net Income (Loss) $(52.5) $10.3 (610) % $(2.3) n.m. Diluted Earnings (Loss) per Share $(2.96) $0.58 (610) % $(0.13) n.m. Adjusted Operating Profit (Loss)(1) $(15.7) $53.7 (129) % $3.3 (576) % Adjusted Net Income (Loss)(1) $(36.6) $26.1 (240) % $(1.6) n.m. Adjusted Diluted Earnings (Loss) perShare(1) $(2.06) $1.47 (240) % $(0.09) n.m. (1) Reconciliations of reported to adjusted figures are included below. n.m. – not meaningful Comments for the Q4 period are detailed in the segment results sections below. Lift Truck Business Results Revenues by geographic segment were as follows: ($ in millions) Q4 2025 Q4 2024 % Change Q3 2025 % Change Revenues $871.4 $1,021.9 (15) % $929.3 (6) % Americas(2) $676.8 $800.5 (15) % $732.7 (8) % EMEA(2) $153.3 $175.4 (13) % $150.1 2 % JAPIC(2) $41.3 $46.0 (10) % $46.5 (11) % (2) The Americas segment includes the North America, Latin America, and Brazil markets, EMEA includes operations in the Europe, Middle East, and Africa markets, and JAPIC includes operations in the Asia and Pacific markets, including China. Q4 2025 Lift Truck revenues totaled $871 million, down 15% year-over-year due to lower truck volumes across all product lines. Reduced volumes reflected ongoing economic uncertainty, which dampened customer demand in previous quarters. Lift Truck volumes declined, especially for higher-value core counterbalanced trucksA. The Company believes that customers are postponing purchases in response to lower utilization rates and ongoing efforts toward cash preservation as they navigate persistent economic uncertainty. The ongoing market shift toward lighter-duty, lower-priced trucks has led to reduced shipment volumes for traditional models. This shift is characterized by a trend towards more standard and value configurations within counterbalanced trucks, with the impact most pronounced in the EMEA and South America regions. In response to these evolving market dynamics, and to enhance its competitive position, the Company has introduced a modular product specifically engineered to compete directly with both standard and value truck configurations. Sequentially, Lift Truck revenues decreased, primarily due to lower shipments of higher-value core counterbalanced trucks. A The Company’s higher-priced internal combustion and electric counterbalanced forklift products, consisting of Class 1, Class 4, and Class 5, including Big Trucks. Gross profit, operating profit (loss), and adjusted operating profit (loss) by geographic segment were as follows: ($ in millions) Q4 2025 Q4 2024 % Change Q3 2025 % Change Gross Profit $111.8 $190.0 (41) % $134.3 (17) % Americas $94.8 $165.2 (43) % $117.8 (20) % EMEA $14.1 $22.2 (36) % $12.3 15 % JAPIC $2.9 $2.6 12 % $4.2 (31) % Operating Profit (Loss) $(33.5) $37.0 (191) % $— n.m. Americas $(7.0) $63.5 (111) % $21.1 (133) % EMEA $(19.4) $(11.8) (64) % $(16.9) (15) % JAPIC $(7.1) $(14.7) (52) % $(4.2) (69) % Adjusted Operating Profit (Loss)(1) $(15.2) $54.1 (128) % $1.0 (1620) % Americas(1) $4.2 $70.6 (94) % $22.1 (81) % EMEA(1) $(13.3) $(9.4) (41) % $(16.9) 21 % JAPIC(1) $(6.1) $(7.1) 14 % $(4.2) (45) % (1) Reconciliations of reported to adjusted figures are included below. Q4 2025 Lift Truck operating results were reduced by approximately $40 million in gross tariff costs. The decline in Lift Truck’s year-over-year operating profit (loss) reflects lower truck volumes and higher tariff costs. Q4 2025 operating costs decreased year-over-year, mainly due to lower employee-related expenses, including lower incentive compensation expenses and savings from Nuvera’s strategic realignment. Americas’ operating profit declined primarily due to reduced truck volumes and tariff costs, which were partially offset by lower employee-related expenses. EMEA’s operating loss was primarily driven by lower volumes, reflecting customer order delays and a market shift toward lighter-duty, lower-priced truck models. The Company previously lacked competitive offerings in these segments but is now filling this gap with its new modular products. Sequentially, Lift Truck adjusted operating profit (loss) declined primarily due to lower shipments, partially offset by pricing actions to offset higher costs, mainly in the Americas. Bolzoni Results ($ in millions) Q4 2025 Q4 2024 % Change Q3 2025 % Change Revenues $75.2 $82.9 (9) % $87.0 (14) % Gross Profit $18.1 $17.9 1 % $21.4 (15) % Operating Profit (Loss) $(4.8) $(4.4) (9) % $2.1 (329) % Adjusted Operating Profit (Loss)(1) $(1.6) $(0.1) (1500) % $2.1 (176) % (1) Reconciliations of reported to adjusted figures are included below. Bolzoni’s revenue declined year-over-year primarily due to softer demand in the lift truck industry, particularly in the Americas. Gross profit modestly improved due to a favorable product mix in EMEA, despite reduced volumes and lower absorption of manufacturing overhead. However, operating results declined year-over-year as higher operating expenses, including the appreciation of the Euro versus the U.S. dollar and increased employee-related costs, more

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Alta Equipment Group announces Fourth Quarter and Full Year 2025 Financial results

Thu, 26 Feb 2026 22:51:17 +0000

Fourth Quarter Financial Highlights: (comparisons are year over year) Total revenues increased 2.2% year over year to $509.1 million Construction and Material Handling revenues of $328.6 million and $167.8 million, respectively New and used equipment sales increased 4.8% to $300.9 million, an increase of $90.8 million, or 43.0%, sequentially Product support revenues are stable year over year, with Parts sales increasing to $68.1 million and Service revenues increasing to $59.3 million Net loss available to common stockholders of $(12.5) million compared to $(11.4) million in 2024 Basic and diluted net loss per share of $(0.39) compared to $(0.34) in 2024 Adjusted basic and diluted pre-tax net loss per share* of $(0.27) for 2025 compared to $(0.46) for 2024 Adjusted EBITDA* decreased 0.2% to $40.6 million compared to $40.7 million in 2024 Inventories, net reduced $31.3 million in the fourth quarter Line of Credit, net reduced $20.4 million in the fourth quarter 2025 Full Year Financial Highlights: (comparisons are year over year) Total revenues decreased $40.7 million year over year to $1,835.9 million Construction and Material Handling revenues of $1,116.7 million and $654.3 million, respectively Master Distribution with revenues of $67.3 million, an increase of $8.1 million, or 13.7% over last year New and used equipment sales of $999.3 million Product Support revenues are stable year over year, with Parts sales decreasing to $291.0 million and Service revenues increasing to $256.7 million Net loss available to common stockholders of $(83.3) million compared to $(65.1) million in 2024 Basic and diluted net loss per share of $(2.55) compared to $(1.96) in 2024 Adjusted basic and diluted pre-tax net loss per share* of $(1.20) compared to $(1.24) in 2024 Adjusted EBITDA* decreased 2.3% to $164.4 million compared to $168.3 million in 2024 Alta Equipment Group Inc., a provider of premium material handling, construction, and environmental processing equipment and related services, today announced financial results for the fourth quarter and full year ended December 31, 2025. CEO Comment: Ryan Greenawalt, Chief Executive Officer of Alta, said, “Our fourth quarter equipment sales performance was encouraging as demand for equipment significantly improved due to the tax benefits of the OBBBA, lower interest rates, project permitting ‘green-lights’, and strengthening customer sentiment based on their project backlogs for 2026. The over $300 million of new and used equipment sales this quarter was the highest in the Company’s history, surpassing our previous largest quarter of equipment sales in the fourth quarter of 2023. Given our business model, this quarter’s record equipment sales will generate field population and future product support opportunities for years to come. The gain in equipment sales in the quarter was offset by typical seasonal pullbacks in our product support and rental businesses, which were exacerbated by an early winter in our northern regions. Importantly, after two tumultuous years marked by macroeconomic uncertainty, oversupply of equipment, and tariff-related cost pressures, the backdrop for 2026 presents a more constructive and increasingly opportunistic environment across our business segments.” Mr. Greenawalt added, “Industry volumes in both our Construction Equipment and Material Handling segments are forecast to grow in 2026. Our Construction Equipment segment is expected to continue benefiting from a customer base highly embedded on long-term and fully funded federal and state DOT infrastructure projects. Project activity in our Florida market continues to expand, and per ARTBA, the value of transportation projects in the United States expected to break ground in the next 30 to 60 days was $14.6 billion in December 2025, up 65.5 percent from $8.9 billion a year ago. The outlook for our Material Handling business this year is favorable relative to the tariff-impacted 2025, as we expect higher volumes, weighted to the second half of the year, driven by customer fleet replenishment and more stable conditions in the manufacturing and auto sectors. The underlying fundamentals remain steady in our core market segments, including food and beverage, medical, retail, and wholesale distribution and logistics. We continue to be excited and well-positioned for organic growth as it relates to emerging technologies in the material handling sector, which include autonomous lift trucks, advanced power solutions, and warehouse automation via our Peaklogix subsidiary.” Mr. Greenawalt continued, “In terms of our performance for 2025, total revenues were down 2.2% to $1.8 billion, a result of slight gains in new and used equipment sales and service revenues being offset by declines largely related to our rental business. As a reminder, we continued the strategic reduction of our rent-to-sell fleet as we repositioned the business to focus on its core dealership capabilities and to drive better returns on capital across the segment. To that end, while our Construction Equipment segment’s Adjusted EBITDA was down $3.2 million, or 3.1%, in 2025, the segment reduced its total asset base by $89.3 million, thereby increasing returns on capital by replacing low-return rental revenues with asset-light product support profitability. Our Material Handling segment’s revenues decreased 4.8% to $654.3 million in 2025, primarily due to lower equipment sales and unit deliveries, as customers, especially in our Midwest region, continued to delay fleet replacements amid tariff-driven uncertainty. Despite a challenging environment for both business segments, total product support revenues remained comparatively resilient, with revenues relatively flat at $547.7 million for the year. Lastly, the cost savings and business optimization initiatives we’ve implemented continued to drive lower selling, general and administrative expenses, which decreased $23.8 million, or 5.3%, to $422.7 million for the year. In addition, during the fourth quarter of 2025, we meaningfully reduced total debt compared to the third quarter, driven by disciplined working capital management and continued optimization of our rental fleet. This deleveraging, combined with ample liquidity and no near-term debt maturities, positions us well as industry conditions continue to stabilize entering 2026.” In conclusion, Mr. Greenawalt said, “In closing, the last two years have presented significant, ever-changing challenges for our business, our partners, and our customers. I am extremely proud of the ongoing determination and dedication of our employees, who showed it throughout 2025, as they are the foundational bedrock of our business.

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Equipment Finance Industry Confidence at 11-Month High

Thu, 22 Jan 2026 19:55:11 +0000

The Equipment Leasing & Finance Association (ELFA) has released its January 2026 Monthly Confidence Index for the Equipment Finance Industry (MCI), revealing confidence in the equipment finance market rose to 64.6, up from 58.3 in December, and the highest level since February 2025. The index provides a qualitative assessment from key executives in the $1.3 trillion equipment finance industry. January 2026 Survey Results: Business Conditions – When assessing the next four months, 34.6% of responding executives believe business conditions will improve, up from 12.5% in December. Those who believe business conditions will remain the same declined to 57.7% from 75% the previous month. The percentage of executives who believe business conditions will worsen also declined to 7.7% from 12.5% in December. Capex Demand – For the next four months, 40% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase (up from 20.8% in December). Additionally, 56% expect demand to remain the same (down from 75%), and 4% believe demand will decline, relatively unchanged from December. Access to Capital – Over the next four months, 32% of respondents expect greater access to capital to fund equipment acquisitions, an increase from 25% in December. The majority (68%) anticipate the “same” access to capital to fund business, a decrease from 70.8% the previous month. None expect “less” access to capital, unchanged from December. Employment – Regarding employment over the next four months, 38.5%% of executives expect to hire more employees, a decrease from 50% in December. Also, 57.7% foresee no change in headcount (up from 45.8% last month), and 3.9% expect to hire fewer employees, down slightly from 4.2% in December. U.S. Economy – Of the respondents, 3.9% evaluate the current U.S. economy as “excellent,” up from none in December; 96.2% assess it as “fair,” down from 100% last month; and none evaluate it as “poor,” unchanged from December. Economic Outlook – Over the next six months, 30.8% of respondents believe that U.S. economic conditions will “get better,” a marked increase from 12.5% in December. Another 61.5% expect the U.S. economy to “stay the same,” up from 58.3%; and 7.7% believe economic conditions will worsen, a dramatic decline from 29.2% last month. Business Development Spending – Over the next six months, 34.6% of respondents believe their company will increase spending on business development activities, down from 35.7% in December. Those who believe there will be “no change” in business development spending increased to 65.4% (up from 58.3% in December), and none believe there will be a decrease in spending (down from 4.2% last month). January 2026 MCI-EFI Survey Comments from Industry Executive Leadership: Bank, Small Ticket “2025 was a strong year for our business and much of the industry. I think we will carry that momentum into 2026 and find new opportunities to continue our growth this year.” David Normandin, CLFP, President and Chief Executive Officer, Wintrust Specialty Finance Captive, Small Ticket “We observed an increase in December that has continued into January. We believe the improved interest rate environment has contributed to this momentum. Additionally, we suspect that a “tariff pre-buy” effect is occurring, as customers accelerate purchasing decisions ahead of potential cost increases.” Jim DeFrank, EVP and Chief Operating Officer, Isuzu Finance of America, Inc. Independent, Small Ticket “As interest rates and the economy improve in 2026, the equipment finance industry will likely be facing more competition from banks, the larger independents and new entrants.” James D. Jenks, CEO, Global Finance and Leasing Services, LLC Independent, Middle Ticket “I’m optimistic about AI and automation along with onshoring creating new demand for equipment. However, isolationist policies and lack of workforce are challenges to these positives, so it’s a mixed bag.” Jeffry Elliott, CLFP, CEO of Elevex Capital and Equipment Leasing & Finance Association Treasurer ELFA and the Foundation are unifying their research efforts. Starting in January 2026, all industry data and reports historically produced by the Foundation will move to a streamlined home on the ELFA website. To access more details and read the full survey results, visit the MCI web page.

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Alta Equipment Group announces 1st Quarter 2025 financial results with decreased revenues

Wed, 07 May 2025 21:05:56 +0000

First Quarter Financial Highlights: Total revenues decreased $18.6 million year over year to $423.0 million Construction Equipment and Material Handling revenues of $245.8 million and $157.9 million, respectively Product support revenues increased modestly year over year to $138.1 million for the quarter Service gross profit percentage increased 230 basis points year over year to 60.1% Selling, general, and administrative expenses reduced by $7.9 million year over year Net loss available to common stockholders of $(21.7) million Basic and diluted net loss per share of $(0.65) Adjusted basic and diluted pre-tax net loss per share* of $(0.48) Adjusted EBITDA* of $33.6 million Alta Equipment Group Inc., a provider of premium material handling, construction, and environmental processing equipment and related services, announced financial results for the first quarter, which ended March 31, 2025. CEO Comment: Ryan Greenawalt, Chief Executive Officer of Alta, said, “Our first quarter performance continues to underscore the resiliency of our business model. Despite the ongoing uncertainty regarding the macro economy, operating trends in our Construction Equipment business were stable as we realized the typical seasonal impacts in our Northeast and Midwest markets. Similar to years past, as the weather improved in late March, the rental fleet naturally deployed to customers as they embark on peak construction season. Additionally, the Florida construction market remains healthy as both the Florida DOT and the federal government continue to fund large projects statewide. The stability in our Construction Equipment segment can be attributed to our customers’ focus on infrastructure-related projects rather than on the general non-residential markets, which we expect will drive consistent demand for heavy equipment for the remainder of the year. While our Material Handling new equipment sales were down when compared to the peak delivery levels realized in the first quarter of last year, stronger margins on new and used equipment sales helped offset the impact of reduced volumes. Additionally, we were encouraged by solid bookings in our Material Handling segment during the quarter, which fills our sales pipeline in the second half of 2025. Importantly, our product support business remained solid in the quarter and continued to be a pillar of strength in the face of volatile general economic sentiment. Lastly, while the situation with tariffs remains fluid, based on current information, we believe the current cost increases and surcharges from our major OEMs are manageable and will allow us to remain competitive in the equipment marketplace. This view, along with the resilience of our end markets and our product support business, underpins our reiteration of our guidance on an organic basis.” Mr. Greenawalt continued, “In terms of our financial performance, total revenues for the quarter were $423.0 million, a decrease of 4.2% versus the first quarter of last year. Construction Equipment revenue was $245.8 million, a decrease of 3.8%, primarily a result of our 2024 strategic initiative to reduce our rent-to-sell fleet size, drive fleet utilization, and ultimately increase our return on fleet investment. Material Handling revenues decreased 9.4% to $157.9 million. Our Master Distribution business rebounded from oversupply issues last year, with revenues increasing 35.9% to $17.4 million in the quarter. Notably, the cost and inventory optimization initiatives implemented last year continue to prove beneficial as SG&A was down $7.9 million year over year. As a result, Adjusted EBITDA was $33.6 million compared to $34.1 million a year ago.” Mr. Greenawalt added, “During 2025, we are committed to refining Alta’s focus, which includes the rationalization of non-core assets. To that end, on May 1st, we entered into a definitive agreement and closed on the sale of substantially all of our aerial fleet rental equipment business in the Chicagoland market, a business that was born and grown organically over the past seven years. While we wish the new owners of the business well, ultimately, the competitive environment, lack of product support yields, and commoditized product relative to the rest of our portfolio does not align with our strategic priorities in the Illinois market. The proceeds from the divesture will be allocated towards reducing our outstanding debt.” In conclusion, Mr. Greenawalt said, “In a rebalancing of our capital allocation strategy, our Board of Directors has authorized the indefinite suspension of our quarterly common stock dividend, primarily due to the return opportunity for shareholders given the disparity between the Company’s stock price and our view on the intrinsic value of Alta’s operations. The approximately $8 million in annual dividend payments will be reallocated to an expanded share repurchase program, which the Board authorized to increase by $10 million to $30 million overall, concurrently with the suspension of the dividend. As a key component of this initiative, the Board also approved the immediate allocation of $10 million to a Rule 10b5-1 Plan, where a third-party fiduciary is directed to purchase the Company’s common stock at pre-determined price intervals regardless of reporting blackout periods or privileged information restrictions, thereby enhancing the Company’s opportunity to execute on the repurchase program. In summary, we believe that our shares effectively represent a compelling acquisition target and we look forward to executing on the buyback.” Business Divestiture, Full Year 2025 Financial Guidance and Other Financial Notes: On May 1, 2025, the Company’s Construction Equipment segment entered into a definitive agreement and closed on the divestiture of substantially all of its aerial fleet rental business in the Chicago, Illinois marketplace for $18.0 million in cash at closing, subject to fees and closing costs. The implied enterprise value of the divesture was approximately $20 million and the proforma Adjusted EBITDA associated with the divested business was estimated to be approximately $4 million annually. The Company plans to allocate the proceeds from the divesture to reducing its outstanding senior indebtedness. The Company reaffirms its organic guidance range and now expects to report Adjusted EBITDA between $171.5 million and $186.5 million for the 2025 fiscal year as a result of the aforementioned divestiture. On May 1, 2025, the Company’s Board of Directors (the “Board”) approved an increase to the Company’s common stock repurchase program authorization from $20.0 million to

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KION with strong financial year 2024: significant increase in profitability

Thu, 27 Feb 2025 15:48:50 +0000

The KION Group finished the financial year 2024 with consistent operating performance and strong financial results: With slightly improved revenue of € 11.503 billion (2023: € 11.434 billion), adjusted EBIT significantly increased to € 917.2 million (2023: € 790.5 million). The adjusted EBIT margin rose to 8.0 percent (2023: 6.9 percent). Free cash flow was € 702.0 million (2023: € 715.2 million), driven by strong results and a substantial decrease in net working capital. Net income increased year on year to € 369.2 million (2023: € 314.4 million). “We have made very good progress in both operating segments and on KION level since the difficult year 2022, which was impacted by high inflation and severe supply chain disruptions. Our operational and commercial agility measures and our strategic focus on innovation, digitalization, and artificial intelligence have proven to be successful, and 2024 was a strong year for us,” said Rob Smith, CEO of KION GROUP AG. “We were able to return the adjusted EBIT margin of the Industrial Trucks & Services segment to double-digits during the past two years while the margin of the Supply Chain Solutions segment has been continuously improving. With our recently launched efficiency program and the consistent implementation of our strategy we are well on track to bring KION and both operating segments to more than 10 percent adjusted EBIT margin by the end of our current strategic planning period in 2027.” The Industrial Trucks & Services segment increased revenue by 1.5 percent to € 8.609 billion (2023: € 8.480 billion), mainly driven by the service business. Revenue in the Supply Chain Solutions segment declined by 1.8 percent to € 2.943 billion (2023: € 2.997 billion) due to subdued order intake in the project business (Business Solutions) during recent quarters while the service business (Customer Services) continued to grow. The adjusted EBIT margin of Industrial Trucks & Services was 10.7 percent (2023: 10.0 percent), following an adjusted EBIT of € 917.5 million (2023: € 848.5 million). Supply Chain Solutions more than doubled the adjusted EBIT margin to 3.8 percent (2023: 1.5 percent) based on an adjusted EBIT of € 112.9 million (2023: € 44.3 million). KION shareholders will benefit from the strong financial year 2024: The Executive Board and Supervisory Board of KION GROUP AG will propose a dividend of € 0.82 (2023: € 0.70) per share for the 2024 financial year at the Annual General Meeting on May 27, 2025. This corresponds to a total dividend payout of € 107.5 million. The payout ratio amounts to around 30 percent on earnings per share of € 2.75 for the 2024 financial year and remains within the targeted payout corridor of 25 percent to 40 percent. Outlook Against the backdrop of the current volatile geopolitical and macroeconomic environment, the Executive Board expects the core key performance indicators of the KION Group and its operating segments to be within the following ranges in 2025: Outlook 2025 KION Group Industrial Trucks & Services Supply Chain Solutions in million € 2024 Outlook 2025 2024 Outlook 2025 2024 Outlook 2025 Revenue1 11,503.2 10,900 – 11,700 8,608.8 8,100 – 8,600 2,943.2 2,800 – 3,100 Adjusted EBIT1 917.2 720 – 870 917.5 680 – 780 112.9 140 – 200 Free Cash Flow 702.0 400 – 550 – – – – ROCE 8.7% 7.0% – 8.4% – – – – 1 Disclosures for the Industrial Trucks & Services and Supply Chain Solutions segments also include intra-group cross-segment revenue and effects on EBIT. The Group outlook for revenue and adjusted EBIT reflects a “look-through” year for ITS and continued profitability improvements in SCS. The outlook for free cash flow includes the expected one-time cash-out in 2025 for the recently launched efficiency program. The revenue and adjusted EBIT development in the ITS segment will be impacted by a now normalized order book resulting in lower new truck business. This will likely not be fully compensated by the expected continued growth in the service business. The anticipated continued shift toward entry-level warehouse trucks as well as intensifying competition is also expected to impact the development in 2025 while the recently launched efficiency program in EMEA will be fully effective in 2026. The revenue outlook for the SCS segment reflects anticipated growth in services whereas project business is expected to decrease slightly due to the lower order book at year-end 2024. The outlook for adjusted EBIT for the SCS segment benefits from reduced impact from legacy project backlog, improved project execution, savings resulting from capacity adjustments already made as well as continued growth in services. KION Group Figures for the Financial Year 2024 and the Fourth Quarter ending December 31, 2024 in million € 2024 2023 Diff. Q4 2024 Q4 2023 Diff. Revenue Industrial Trucks & Services Supply Chain Solutions 11,503 8,609 2,943 11,434 8,480 2,997 0.6% 1.5% -1.8% 3,068 2,304 782 3,086 2,320 781 -0.6% -0.7% 0.2% Adjusted EBIT [1] Industrial Trucks & Services Supply Chain Solutions 917 918 113 791 849 44 16.0% 8.1% >100% 250 245 42 219 235 14 14.6% 4.1% >100% Adjusted EBIT margin [1] Industrial Trucks & Services Supply Chain Solutions 8.0% 10.7% 3.8% 6.9% 10.0% 1.5% 8.2% 10.6% 5.4% 7.1% 10.1% 1.7% Net income 369 314 17.5% 114 86 32.1% ROCE 8.7% 7.7% Basic earnings per share [2] (in €) 2.75 2.33 17.8% 0.85 0.63 34.3% Free cash flow [3] 702 715 -1.8% 271 386 -29.9% Employees [4] 42,719 42,325 [1] Adjusted for effects of purchase price allocations as well as non-recurring items. [2] Net income attributable to shareholders of KION GROUP AG: € 360 million (2023: € 306 million). [3] Free cash flow is defined as cash flow from operating activities plus cash from investing activities. [4] Number of full-time equivalents incl. apprentices and trainees as at balance sheet date Dec. 31.

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Equipment Finance Industry Confidence in December reaches new Three-Year high

Mon, 23 Dec 2024 17:27:24 +0000

The Equipment Leasing & Finance Foundation (the Foundation) releases today’s December 2024 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). Overall, confidence in the equipment finance market is 68.8, surpassing the November index of 67.5, the previous three-year high. The index reports a qualitative assessment of the prevailing business conditions and expectations for the future, as key executives from the $1.3 trillion equipment finance sector reported. When asked about the outlook for the future, MCI-EFI survey respondent David Normandin, CLFP, President and Chief Executive Officer, Wintrust Specialty Finance, said, “Over the last year, the equipment finance industry has witnessed changes in liquidity, volatile swap rates, higher delinquency, and credit charges returning to a more normalized state. Through this, we have adapted and created better solutions to meet our customers’ needs. Now that the election is over and the Fed has begun cutting rates, I think there is more surety for businesses to invest in their business confidently. This will create good opportunities for the equipment finance industry in 2025.” December 2024 Survey Results: The overall MCI-EFI is 68.8, up from the November index of 67.5. Business conditions – When asked to assess their business conditions over the next four months, 57.1% of the executives responding said they believe business conditions will improve over the next four months, an increase from 43.3% in November. 32.1% believe business conditions will remain the same over the next four months, down from 50% the previous month. 10.7% believe business conditions will worsen, up from 6.7% in November. Capex demand – 53.6% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 48.3% in November. 42.9% believe demand will “remain the same” during the same four-month time period, down from 44.8% the previous month. 3.6% believe demand will decline, a decrease from 6.9% in November. Access to capital – 28.6% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, down from 37.9% in November. 71.4% of executives indicate they expect the “same” access to capital to fund business, up from 62.1% last month. None expect “less” access to capital, unchanged from the previous month. Employment – When asked, 46.4% of the executives report they expect to hire more employees over the next four months, an increase from 44.8% in November. 42.9% expect no change in headcount over the next four months, down from 48.3% last month. 10.7% expect to hire fewer employees, up from 6.9% in November. U.S. economy – 7.1% of the leadership evaluate the current U.S. economy as “excellent,” up from none the previous month. 89.3% evaluate the economy as “fair,” down from 96.7% in November. 3.6% evaluate it as “poor,” relatively unchanged from 3.3% last month. Economic outlook – 53.6% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, down from 60% in November. 35.7% indicate they believe the U.S. economy will “stay the same” over the next six months, down from 36.7% last month. 10.7% believe economic conditions in the U.S. will worsen over the next six months, an increase from 3.3% the previous month. Business development spending – In December, 46.4% of respondents indicate they believe their company will increase spending on business development activities during the next six months, up from 36.7% the previous month. 50% believe there will be “no change” in business development spending, a decrease from 56.7% in November. 3.6% believe there will be a decrease in spending, down from 6.7% last month. December 2024 MCI-EFI Survey Comments from Industry Executive Leadership: Bank, Small Ticket “Political changes at the federal level are encouraging to small business. Changes to green energy policy and federal oversight [Section 1071] could lead to a more robust environment.” Charles Jones, Senior Vice President, 1st Equipment Finance, Inc. Captive, Small Ticket “Economic resilience and growth, the continued adoption of technology and digitization, and government infrastructure initiatives are increasing demand. The new administration may slow the shift toward sustainability and the equipment requirements needed.” Jim DeFrank, EVP and Chief Operating Officer, Isuzu Finance of America, Inc. Independent, Small Ticket “The president-elect is expected to make a number of changes that will positively impact the U.S. economy.” James D. Jenks, CEO, Global Finance and Leasing Services, LLC How may I access the MCI-EFI? Survey results are posted on the Foundation website: https://www.leasefoundation.org/industry-resources/monthly-confidence-index/. Details about the MCI, including who participates, its design, and the survey respondent demographics, are also available at the link above.

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Alta Equipment Group announced Third Quarter 2024 Financial Results

Wed, 13 Nov 2024 16:32:42 +0000

Third Quarter Financial Highlights: Total revenues decreased $17.4 million year over year to $448.8 million Construction Equipment and Material Handling revenues of $262.3 million and $168.9 million, respectively Product support revenues increased 7.8% year over year with Parts sales increasing to $75.6 million and Service revenues increasing to $64.6 million New and used equipment sales decreased 13.3% year over year to $219.8 million Net loss available to common stockholders of $(28.4) million Basic and diluted net loss per share of $(0.86) Adjusted basic and diluted net loss per share* of $(0.72) Adjusted EBITDA* of $43.2 million Third quarter 2024 net loss was impacted by a $14.0 million discrete tax expense from increasing the valuation allowance on our deferred tax assets, specifically related to 163(j) interest limitations Additionally, on October 30, 2024, the Company’s Board of Directors approved an increase to the share buyback authorization from $12.5 million to $20.0 million Alta Equipment Group Inc. has announced financial results for the third quarter ended September 30, 2024. CEO Comment: Ryan Greenawalt, Chief Executive Officer of Alta, said “Our third quarter results continued to be impacted by the ongoing uncertainty in our end-user markets as it relates to customers committing to capital investment and purchasing new equipment. This dynamic has been most impactful in our Construction Equipment segment, where new and used equipment revenues decreased by $44.5 million, or 29.5%, from a year ago on an organic basis. Some customers put capital investments on hold in the third quarter while they waited for the election outcome and more clarity on interest rates. In the immediate aftermath post-election, it appears that sentiment has already improved, and we believe our customers will deploy capital more broadly in 2025.” Mr. Greenawalt continued, “While the equipment sales market has been disappointing in 2024, our dealership model with diverse revenue streams has protected our overall business from equipment market cyclicality. As evidence, our steady and high-margin product support business continues to perform well with revenues increasing 7.8% to $140.2 million versus a year ago. Additionally, given our rent-to-sell approach to the equipment rental market we are able to react quickly to perceived softness by selling off lightly used fleet and right-sizing our balance sheet in an efficient manner, and we are proud of the progress we made with the balance sheet as reductions in rental fleet and working capital allowed us to reduce net debt by $38.7 million in the quarter. Additionally, demand in our Material Handling segment remained steady, with revenues increasing slightly to $168.9 million as we continue to work through a sizeable backlog. During the third quarter, we also began to see positive impacts from our business optimization initiatives, as we were able to reduce general and administrative expenses when compared to the first two quarters of the year.” Mr. Greenawalt added, “Overall, while we and the overall equipment markets have underperformed initial projections for 2024, our expectations for 2025 are positive. In terms of our Construction Equipment segment, we expect the oversupply of new equipment to normalize in the first half of 2025 and construction equipment spending to be positively impacted by easing interest rates and more favorable lending conditions. Infrastructure related project pipelines continue to be significant and still in the early stages and state DOT budgets are forecast to remain elevated in 2025. The opportunities in our Material Handling business remain favorable as we believe our strong relationship with Hyster-Yale, unmatched product support capabilities and resilient and diversified end markets will result in continued gains in market share in 2025. Lastly, we expect our electric vehicles business to gain further traction in 2025 as customers begin the transformational shift to electrify commercial vehicle fleets. Given this perspective on our future prospects, our Board of Directors has expanded our share buyback program to $20 million which we will deploy to support shareholders should opportunistic dislocations between the Company’s long-term intrinsic value and our share price present themselves.” In conclusion, Mr. Greenawalt said, “Despite a challenging market in 2024, our 3,000 employees have demonstrated unprecedented dedication to our business and our customers. I am extremely proud of their commitment to our guiding principles which are predicated on teamwork and fostering customers for life.” Full Year 2024 Financial Guidance and Other Financial Notes: The Company updates our guidance range and now expects to report Adjusted EBITDA between $170.0 million and $175.0 million for the 2024 fiscal year. Reduced rental fleet original equipment cost from $617.2 million as of June 30 to $599.0 as of September 30. Reduced Adjusted total net debt and floor plan payables from $858.1 million as of June 30 to $819.4 million as of September 30 (see Reconciliation of non-GAAP financial measures below). CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) (amounts in millions unless otherwise noted) Three Months Ended September 30, Increase (Decrease) Nine Months Ended September 30, Increase (Decrease) 2024 2023 2024 versus 2023 2024 2023 2024 versus 2023 Revenues: New and used equipment sales $ 219.8 $ 253.6 $ (33.8 ) (13.3 )% $ 699.9 $ 727.8 $ (27.9 ) (3.8 )% Parts sales 75.6 69.5 6.1 8.8 % 226.5 209.2 17.3 8.3 % Service revenues 64.6 60.6 4.0 6.6 % 194.8 180.5 14.3 7.9 % Rental revenues 53.7 54.0 (0.3 ) (0.6 )% 155.9 147.1 8.8 6.0 % Rental equipment sales 35.1 28.5 6.6 23.2 % 101.4 90.7 10.7 11.8 % Total revenues 448.8 466.2 (17.4 ) (3.7 )% 1,378.5 1,355.3 23.2 1.7 % Cost of revenues: New and used equipment sales 184.4 212.0 (27.6 ) (13.0 )% 588.7 601.3 (12.6 ) (2.1 )% Parts sales 50.0 45.3 4.7 10.4 % 149.2 138.2 11.0 8.0 % Service revenues 26.3 26.5 (0.2 ) (0.8 )% 80.2 77.0 3.2 4.2 % Rental revenues 5.6 5.7 (0.1 ) (1.8 )% 18.5 18.0 0.5 2.8 % Rental depreciation 30.6 29.6 1.0 3.4 % 88.5 80.1 8.4 10.5 % Rental equipment sales 27.3 21.0 6.3 30.0 % 76.2 66.5 9.7 14.6 % Total cost of revenues 324.2 340.1 (15.9 ) (4.7 )% 1,001.3 981.1 20.2

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KION Group achieves strong results and increases profitability in the first nine months of FY 2024

Wed, 30 Oct 2024 18:12:02 +0000

KION Group achieves strong results and increases profitability in the first nine months of FY 2024 Revenue up 1.1 percent to € 8.435 billion (2023: € 8.347 billion) Adj. EBIT improves 16.6 percent to € 666.7 million (2023: € 571.9 million) Adj. EBIT margin increases to 7.9 percent (2023: 6.9 percent) Free cash flow rises to € 431.3 million (2023: € 329.3 million) Outlook for 2024 confirmed with further narrowed bandwidths The KION Group significantly improved its profitability in the first nine months of the financial year. The company achieved an adjusted EBIT of € 666.7 million (2023: € 571.9 million) on the back of € 8.435 billion (2023: € 8.347 billion) in revenues. Consequently, the adjusted EBIT margin increased 1.0 percentage point year-on-year to 7.9 percent. “Macroeconomic and political uncertainties continue to affect the business climate in the major economies of Europe, Asia, and the Americas throughout 2024. Against the backdrop of this challenging environment, we are well on track to achieve our targets for the financial year,” said Rob Smith, Chief Executive Officer of KION GROUP AG. ”With the confidence of a strong performance in the first nine months, we are narrowing the target bandwidths further and confirm our outlook for the year.” Total revenue in the Industrial Trucks & Services segment increased by 2.4 percent to € 6.305 billion (2023: € 6.160 billion), mainly driven by higher unit sales and improved prices. The service business grew revenues by 2.2 percent and accounted for 48.0 percent of external segment revenue – which was in line with the previous year (48.1 percent). In the Supply Chain Solutions segment, revenues came in at € 2.161 billion (2023: € 2.216 billion). The project business revenue declined by 12.1 percent, and the higher-margin service business grew significantly by 15.8 percent. The service share of external segment revenue grew to 41.5 percent (2023: 34.9 percent). The adjusted EBIT of the Industrial Trucks & Services segment rose significantly to € 672.9 million (2023: € 613.6 million). Revenue growth and stable material costs led to a significantly increased gross margin and an adjusted EBIT margin of 10.7 percent (2023: 10.0 percent). Adjusted EBIT also improved significantly in the Supply Chain Solutions segment, doubling year-on-year to € 70.5 million (2023: € 30.7 million). Higher earnings contribution from the service business, efficiency measures in project implementation and the progress in completing lower-margin legacy orders were the key drivers of adjusted EBIT improvement. The adjusted EBIT margin improved to 3.3 percent (2023: 1.4 percent). At € 255.6 million, net income was higher year-on-year (€ 228.3 million). This corresponds to undiluted earnings per share of € 1.90 (2023: € 1.70). At € 431.3 million, free cash flow was significantly higher than in the previous year (€ 329.3 million). Outlook confirmed with further narrowed bandwidths In the quarterly statement for the period ended September 30, the Executive Board of KION GROUP AG confirms the outlook. It has further narrowed the ranges for the Group and the two operating segments: A new member of the Supervisory Board appointed Dr. Sun Shaojun has been appointed to the Supervisory Board for the period until the end of the Annual General Meeting in May 2025. He succeeds Tan Xuguang, who retired from the Supervisory Board on September 16, 2024. Dr. Sun is an experienced leader with deep expertise in mechanical engineering and in the intralogistics industry. Since 2007, he is a member of the Board of Directors of Weichai Holding Group Co., Ltd. in Weifang, People’s Republic of China. “I would like to express our sincere thanks to Tan Xuguang. He has contributed his considerable expertise, strategic vision, and industrial foresight to our Supervisory Board during his tenure,” said Hans Peter Ring, Chairman of the Supervisory Board of KION GROUP AG. “At the same time, we are glad that Sun Shaojun and I have found a successor who is familiar with the business and KION’s markets in EMEA thanks to his many years of professional experience in Germany.” Since 2013, Dr. Sun has been a member of the Management Board of Hydraulics Drive Technology Beteiligungs GmbH in Aschaffenburg, Germany. He started his career in 1998 at Weifang Diesel Engine Works in Weifang, People’s Republic of China. Dr. Sun holds a PhD in Engineering from Tianjin University in Tianjin, People’s Republic of China. Continuity in the Executive Board – Ching Pong Quek appointed until 2030 The Supervisory Board of KION GROUP AG has extended the appointment of the incumbent CTO & President, KION ITS Asia Pacific, Ching Pong Quek, by a further five years until June 30, 2030. Quek began his career at the KION Group in 2006 as CEO of Linde (China) Forklift Truck Corp. based in Xiamen. Since 2008, he has been responsible for the Asian business of the Industrial Trucks & Services segment, and from 2021 until the end of 2023, he has been acting as President of ITS Americas as well. In 2024, he took on the role of Chief Technology Officer of the KION Group in addition to the Asian business. Quek has been a member of the Executive Board of KION GROUP AG since 2013. “Ching Pong Quek is the longest-serving member of the KION Group Executive Board and has been shaping the company for 19 years with his in-depth expertise in the material handling industry,” said Hans Peter Ring, Chairman of the Supervisory Board of KION GROUP AG. “CP will continue to play a key role in driving forward both ITS’s Asian business and the further development of the CTO organization.” Key performance indicators for the KION Group and its two operating segments for the first nine months of 2024 and for the third quarter ending September 30, 2024 in € million Q3/2024 Q3/2023 Diff. Q1-Q3/2024 Q1-Q3/2023 Diff. Revenue Industrial Trucks & Services Supply Chain Solutions 2,699 1,999 710 2,730 2,025 719 -1.1% -1.3% -1.3% 8,435 6,305 2,161 8,347 6,160 2,216 1.1% 2.4% -2.5% Adjusted EBIT [1] Industrial Trucks & Services Supply Chain Solutions 219.6 202.3 28.4 223.6 234.7 15.8 -1.8% -13.8% 79.6% 666.7 672.9 70.5 571.9 613.6 30.7 16.6%

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H&E Rentals reports third quarter 2024 results with revenue off by 4%

Tue, 29 Oct 2024 15:11:28 +0000

Today, H&E Equipment Services, Inc. reported financial results for the third quarter, which ended on September 30, 2024. The report includes the Company’s branch expansion achievements, with the addition of eight new locations in the third quarter, expanding the Company’s branch network to 157 locations across 32 states. THIRD QUARTER 2024 SUMMARY WITH A COMPARISON TO THIRD QUARTER 2023 Revenues declined 4.0% to $384.9 million compared to $400.7 million. Net income was $31.1 million compared to $48.9 million. The effective income tax rate was 28.3% compared to 26.1%. Adjusted EBITDA totaled $175.3 million, a decrease of 8.4% compared to $191.4 million. Adjusted EBITDA margins were 45.6% of revenues compared to 47.8%. Total equipment rental revenues were $326.2 million, an increase of $10.4 million, or 3.3%, compared to $315.8 million. Rental revenues were $288.1 million, an increase of $7.8 million, or 2.8%, compared to $280.3 million. Rental equipment sales decreased 47.3% to $27.8 million compared to $52.7 million. Gross margin declined to 44.5% compared to 47.0%. Total equipment rental gross margins were 45.3% compared to 47.4%, and rental gross margins were 51.2% compared to 53.3%. Average time utilization (based on original equipment cost) was 67.6% compared to 70.0%. Based on original equipment cost, the Company’s rental fleet closed the third quarter of 2024 at slightly below $3.0 billion, an increase of $220.1 million, or 8.1%. Average rental rates declined 0.1% compared to the third quarter of 2023 and fell 0.6% compared to the second quarter of 2024. Dollar utilization was 39.4% compared to 41.5% in the third quarter of 2023 and 38.6% in the second quarter of 2024. The average rental fleet age on September 30, 2024, was 40.8 months, compared to an industry average of 47.9 months. Paid regular quarterly cash dividend of $0.275 per share of common stock. “Industry fundamentals in the third quarter continued to trail year-ago measures,” said Brad Barber, chief executive officer of H&E Rentals. “Physical fleet utilization averaged 67.6%, or 240 basis points below the third quarter of 2023, evidence of the lower customer demand and a lingering modest oversupply of equipment. On a sequential quarterly basis, utilization improved 120 basis points. In addition, rental rates declined 0.1% compared to the prior-year quarter and were down 0.6% from the second quarter of 2024. Despite weakness in these key metrics, rental revenues grew 2.8% compared to the year-ago quarter due largely to the steady expansion of our branch count since the close of the third quarter of 2023. Finally, gross fleet expenditures in the quarter were $131.3 million, resulting in gross expenditures through the first nine months of 2024 of $327.8 million. We concluded the third quarter with a fleet original equipment cost of slightly below $3.0 billion.” Mr. Barber acknowledged the Company’s impressive expansion achievements, noting, “A record number of eight branches were added in the third quarter, while a ninth branch was opened in the month of October. The strong outcome reflected the outstanding execution of our accelerated new location program, which has achieved a record 16 additional locations in 2024, exceeding our stated expansion expectation. Through September 30, 2024, our U.S. geographic coverage improved to 157 locations across 32 states. When accounting for both new locations and branches added through acquisition, our branch count is up more than 14% in 2024 and approximately 54% since the close of 2021. Both measures are dominant accomplishments in our industry.” With the final quarter of 2024 underway, Mr. Barber provided updated expectations for the rental equipment industry, stating, “Construction spending in the U.S. continues to demonstrate the slowing rate of growth observed over the first half of 2024. We believe a trend of moderating activity will persist through the remainder of the year, with physical fleet utilization and rental rates below year-ago measures. Beyond the fourth quarter, the developing outlook for our industry is more encouraging into 2025. The Dodge Momentum Index (DMI), a leading indicator of construction spending, has exhibited gains for five of the last six months, while construction employment remains on a steady upward trajectory. Also, a cycle of easing interest rates is expected to have positive implications for local construction activity as projects are reevaluated under more favorable lending conditions. Finally, the strong expansion of mega-projects remains a significant growth driver for our industry, both today and in the future. Our branch expansion has led to greater and more diverse exposure to mega projects, including a growing presence on data centers, solar and wind farms, and LNG export facilities.” FINANCIAL DISCUSSION FOR THIRD QUARTER 2024 Revenue Total revenues were $384.9 million in the third quarter, a decline of 4.0% compared to $400.7 million in the third quarter of 2023. Total equipment rental revenues of $326.2 million improved 3.3% compared to $315.8 million in the third quarter of 2023. Rental revenues of $288.1 million increased 2.8% compared to $280.3 million in the third quarter of 2023. Rental equipment sales totaled $27.8 million, a decrease of 47.3% compared to $52.7 million in the third quarter of 2023. New equipment sales of $14.1 million increased 11.2% compared to $12.6 million in the same quarter of 2023. Gross Profit Gross profit totaled $171.5 million in the third quarter of 2024, a decrease of 9.0% compared to $188.4 million in the third quarter of 2023. Gross margin declined to 44.5% for the third quarter of 2024 compared to 47.0% for the same quarter in 2023. On a segment basis, the gross margin on total equipment rentals was 45.3% in the third quarter of 2024 compared to 47.4% in the third quarter of 2023. Rental margins were 51.2% compared to 53.3% over the same comparison period. Rental rates in the third quarter of 2024 declined 0.1% compared to the third quarter of 2023. Time utilization (based on original equipment cost) was 67.6% in the third quarter of 2024 compared to 70.0% in the third quarter of 2023. Gross margins on rental equipment sales improved to 60.2% in the third quarter of 2024 compared to 58.5% in the third quarter of 2023. Gross margins on new equipment sales were 19.8% in the third quarter of 2024 compared to

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Herc Holdings reports Nine Months 2024 results and updates 2024 Full Year Guidance

Tue, 22 Oct 2024 19:50:42 +0000

Record equipment rental revenue of $866 million, an increase of 13% Record total revenues of $965 million, an increase of 6% Rental pricing increased 2.3% year-over-year M&A and greenfield openings offset the impact of decelerating local-market revenue growth Net income increased 8% to $122 million, or $4.28 per diluted share Adjusted EBITDA of $446 million increased 9%; adjusted EBITDA margin of 46.2% Free cash flow of $218 million for the nine months ended September 30, 2024 Herc Holdings Inc. has reported financial results for the September 30, 2024 quarter. “In the third quarter, we significantly outpaced overall industry growth on both a total rental revenue basis and from an organic revenue perspective,” said Larry Silber, president and chief executive officer. “By capitalizing on our broad end-market coverage, diversified product and services offering, and expanding share in resilient urban markets, we continue to deliver strong volume and a solid price/mix performance. “We increased third quarter rental revenue by 13% to a new quarterly record, primarily reflecting the continued robust growth from mega projects and contributions from our increased branch network and recent acquisitions. This growth was achieved despite a tough year-over-year comparison and a challenging interest rate environment for local project starts,” said Silber. “As we manage the complexities of disparate levels of demand across geographies, end markets, and project types, our team is agile and remains focused on aligning costs and balancing fleet while continuing to support the growth of our business and deliver outstanding customer service.” 2024 Third Quarter Financial Results Total revenues increased 6% to $965 million compared to $908 million in the prior-year period. The year-over-year increase of $57 million was primarily related to an increase in equipment rental revenue of $101 million, reflecting positive pricing of 2.3% and increased volume of 10.7%. Sales of rental equipment decreased by $43 million during the period. Fleet rotation in the prior-year period was accelerated due to the easing of supply chain disruptions in certain categories of equipment. Dollar utilization increased to 42.2% in the third quarter compared to 42.1% in the prior-year period. Direct operating expenses were $334 million, or 38.6% of equipment rental revenue, compared to $288 million, or 37.6% in the prior-year period. The increase related primarily to the business’s growth, with personnel and facilities costs associated with greenfields and acquisitions. Rental equipment depreciation increased by 4% to $174 million due to a higher year-over-year average fleet size. Non-rental depreciation and amortization increased 14% to $33 million, primarily due to the amortization of acquisition intangible assets. Selling, general, and administrative expenses were $123 million, or 14.2% of equipment rental revenue, compared to $115 million, or 15.0%, in the prior-year period due to the continued focus on improving operating leverage while expanding revenues. Interest expense increased to $69 million compared with $60 million in the prior-year period due to increased borrowings primarily to fund acquisition growth and investment in rental equipment. Net income was $122 million compared to $113 million in the prior-year period. Adjusted net income increased 9% to $124 million, or $4.35 per diluted share, compared to $114 million, or $4.00 per diluted share, in the prior-year period. The effective tax rate was 24% compared to 23% in the prior-year period. Adjusted EBITDA increased 9% to $446 million compared to $410 million in the prior-year period, and adjusted EBITDA margin was 46.2% compared to 45.2% in the prior-year period. 2024 Nine Months Financial Results Total revenues increased 7% to $2,617 million compared to $2,450 million in the prior-year period. The year-over-year increase of $167 million was primarily related to an increase in equipment rental revenue of $229 million, reflecting positive pricing of 3.5% and increased volume of 8.4%, partially offset by an unfavorable mix driven primarily by inflation. Sales of rental equipment decreased by $63 million during the period. Fleet rotation in the prior year period was accelerated due to the easing of supply chain disruptions in certain categories of equipment. Dollar utilization increased to 41.0% compared to 40.8% in the prior-year period. Direct operating expenses were $967 million, or 41.1% of equipment rental revenue, compared to $851 million, or 40.1% in the prior-year period. The increase is primarily related to the business’s growth and personnel and facilities costs associated with greenfields and acquisitions. Additionally, delivery expenses were higher due to internal equipment transfers to branches in higher-growth regions to drive fleet efficiency. Finally, insurance expenses increased, primarily related to increased self-insurance reserves due to claims development attributable to unsettled cases. Rental equipment depreciation increased by 4% to $499 million due to a higher year-over-year average fleet size. Non-rental depreciation and amortization increased by 11% to $92 million, primarily due to the amortization of acquisition intangible assets. Selling, general, and administrative expenses were $358 million, or 15.2% of equipment rental revenue, compared to $332 million, or 15.7%, in the prior year due to the continued focus on improving operating leverage while expanding revenues. Interest expense increased to $193 million compared with $162 million in the prior-year period due to increased borrowings primarily to fund acquisition growth and investment in rental equipment. Net income was $257 million compared to $256 million in the prior-year period. Adjusted net income increased 2% to $265 million, or $9.30 per diluted share, compared to $260 million, or $9.03 per diluted share, in the prior-year period. The effective tax rate was 23% compared to 21% in the prior-year period. Adjusted EBITDA increased 7% to $1,145 million compared to $1,070 million in the prior-year period, and adjusted EBITDA margin was 43.8% compared to 43.7% in the prior-year period. Rental Fleet Net rental equipment capital expenditures were as follows (in millions): Nine Months Ended September 30, 2024 2023 Rental equipment expenditures $ 753 $ 1,100 Proceeds from disposal of rental equipment (198 ) (231 ) Net rental equipment capital expenditures $ 555 $ 869 As of September 30, 2024, the Company’s total fleet was approximately $7.1 billion at OEC. The average fleet at OEC in the third quarter increased by 12% compared to the prior-year period. The average

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Nucor reports results for the Third Quarter of 2024

Mon, 21 Oct 2024 20:54:34 +0000

Consolidated net earnings attributable to Nucor stockholders of $249.9 million, or $1.05 per diluted share Adjusted net earnings attributable to Nucor stockholders of $353.0 million, or $1.49 per diluted share Net sales of $7.44 billion Net earnings before noncontrolling interests of $302.8 million; EBITDA of $869.0 million Nucor Corporation announced consolidated net earnings attributable to Nucor stockholders of $249.9 million, or $1.05 per diluted share, for the third quarter of 2024. Excluding non-cash impairment charges taken during the quarter, Nucor’s third quarter of 2024 adjusted net earnings attributable to Nucor stockholders were $353.0 million, or $1.49 per diluted share. By comparison, Nucor reported consolidated net earnings attributable to Nucor stockholders of $645.2 million, or $2.68 per diluted share, for the second quarter of 2024 and $1.14 billion, or $4.57 per diluted share, for the third quarter of 2023. Reflected in the third quarter of 2024, losses and impairments of assets are non-cash charges of $83.0 million, or $0.27 per diluted share, and $40.0 million, or $0.17 per diluted share, related to the impairment of certain noncurrent assets in the raw materials and steel products segments, respectively. In the first nine months of 2024, Nucor reported consolidated net earnings attributable to Nucor stockholders of $1.74 billion, or $7.22 per diluted share, compared with consolidated net earnings attributable to Nucor stockholders of $3.74 billion, or $14.83 per diluted share, in the first nine months of 2023. “Thank you to our Nucor teammates for continuing to set new records for safety performance while generating over $1.30 billion of cash from operations for the quarter,” said Leon Topalian, Nucor’s Chair, president, and Chief Executive Officer. “Nucor’s market leadership, product diversity, and strong balance sheet enable us to provide meaningful returns to shareholders and execute our growth strategy even in the face of market uncertainty.” Selected Segment Data Earnings (loss) before income taxes and noncontrolling interests by segment for the third quarter and first nine months of 2024 and 2023 were as follows (in thousands): Three Months (13 Weeks) Ended Nine Months (39 Weeks) Ended September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023 Steel mills $ 309,123 $ 882,614 $ 2,056,689 $ 3,124,549 Steel products 313,972 806,731 1,266,922 2,788,322 Raw materials (66,332) 71,367 (17,355) 267,918 Corporate/eliminations (168,490) (212,630) (794,479) (986,141) $ 388,273 $ 1,548,082 $ 2,511,777 $ 5,194,648 Financial Review Nucor’s consolidated net sales decreased 8% to $7.44 billion in the third quarter of 2024 compared with $8.08 billion in the second quarter of 2024 and decreased 15% compared with $8.78 billion in the third quarter of 2023. Average sales price per ton in the third quarter of 2024 decreased 6% compared with the second quarter of 2024 and decreased 15% compared with the third quarter of 2023. Approximately 6,196,000 tons were shipped to outside customers in the third quarter of 2024, a 1% decrease compared with the second quarter of 2024 and the third quarter of 2023. Total steel mill shipments in the third quarter of 2024 decreased 3% compared with the second quarter of 2024 and were comparable to the third quarter of 2023. Steel mill shipments to internal customers represented 19% of total steel mill shipments in the third quarter of 2024, compared with 21% in the second quarter of 2024 and 20% in the third quarter of 2023. Downstream steel product shipments to outside customers in the third quarter of 2024 decreased 6% compared with the second quarter of 2024 and decreased 11% compared with the third quarter of 2023. In the first nine months of 2024, Nucor’s consolidated net sales of $23.66 billion decreased 12% compared with consolidated net sales of $27.01 billion in the first nine months of 2023. Total tons shipped to outside customers in the first nine months of 2024 were approximately 18,709,000 tons, a decrease of 3% compared with the first nine months of 2023, and the average sales price per ton in the first nine months of 2024 decreased 10% compared with the first nine months of 2023. The average scrap and scrap substitute cost per gross ton used in the third quarter of 2024 was $378, a 5% decrease compared to $396 in the second quarter of 2024 and a 9% decrease compared to $415 in the third quarter of 2023. The average scrap and scrap substitute cost per gross ton used in the first nine months of 2024 was $399, a 7% decrease compared to $429 in the first nine months of 2023. Pre-operating and start-up costs related to the Company’s growth projects were approximately $168 million, or $0.54 per diluted share, in the third quarter of 2024, compared with approximately $137 million, or $0.43 per diluted share, in the second quarter of 2024 and approximately $101 million, or $0.31 per diluted share, in the third quarter of 2023. In the first nine months of 2024, pre-operating and start-up costs related to the Company’s growth projects were approximately $430 million, or $1.36 per diluted share, compared with approximately $273 million, or $0.83 per diluted share, in the first nine months of 2023. Overall, operating rates at the Company’s steel mills were 75% in the third quarter and second quarter of 2024 and 77% in the third quarter of 2023. Operating rates in the first nine months of 2024 decreased to 77%, compared to 80% in the first nine months of 2023. Financial Strength At the end of the third quarter of 2024, we had $4.86 billion in cash and cash equivalents and short-term investments on hand. The Company’s $1.75 billion revolving credit facility remains undrawn and does not expire until November 2026. Nucor continues to have the strongest credit ratings in the North American steel sector (A-/A-/Baa1), with stable outlooks at Standard & Poor’s and Fitch Ratings and a positive outlook at Moody’s. Commitment to Returning Capital to Stockholders Nucor repurchased approximately 2.5 million shares of its common stock during the third quarter of 2024 at an average price of $156.07 per share (approximately 11.0 million shares year-to-date

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August 2024 U.S. cutting tool orders total $209.3 million

Mon, 21 Oct 2024 15:55:14 +0000

Shipments of cutting tools, measured by the Cutting Tool Market Report compiled in a collaboration between AMT and USCTI, totaled $209.3 million in August 2024. Orders increased 9.1% from July 2024 but were down 4.5% from August 2023. Shipments of cutting tools, measured by the Cutting Tool Market Report compiled in a collaboration between AMT – The Association For Manufacturing Technology and the U.S. Cutting Tool Institute (USCTI), totaled $209.3 million in August 2024. Orders increased 9.1% from July 2024 but were down 4.5% from August 2023. Year-to-date shipments totaled $1.67 billion, up 1.5% from shipments made in the first eight months of 2023. The year-to-date growth rate has declined every month since April 2024. “U.S. cutting tool orders have hit significant headwinds as we move into the fourth quarter of 2024,” said Steve Boyer, president of USCTI. “We saw drop-offs in orders for two of the last three months of the third quarter of this year compared to last year. Challenges continue with work stoppages in the aerospace sector. Instability in world events is also significantly impairing market confidence as we finish out 2024. Defense spending continues to be strong, while other markets have shown some stagnation. Early expectations for continued growth in 2025 originally showed promise, but a lackluster 2025 is probably more realistic with so many factors in flux.” Bret Tayne, president of Everede Tool Company, said: “Sales of industrial metal cutting tools seems to have plateaued. We can look past some of the ‘noise’ by focusing on the 12-month moving average, and that is flat. This conclusion seems to be consistent with what we read about the broader economy. We are at an inflection point. Some macro data points to a recession and other data indicates we may avoid it. From the perspective of our industry, it will be interesting to see if we achieve any sustainable momentum from IMTS, which took place in September.” IMTS – The International Manufacturing Technology Show was held Sept. 9-14 in Chicago. A biennial event produced by AMT, IMTS is the largest manufacturing trade show in the Western Hemisphere and regularly provides a boost to manufacturing technology and machine tool orders across all sectors. The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production, and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers’ consumption of the primary consumable in the manufacturing process, the cutting tool. Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels.

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Cyngn reports Second Quarter 2024 financial results

Wed, 07 Aug 2024 21:32:52 +0000

Recent Operating Highlights: Joined John Deere supply base Rolled out a partnership with RobotLAB, adding the autonomous DriveMod Tugger vehicles to its portfolio of 200+ robots Received a notice of allowance for a 20th U.S. patent and 21st U.S. patent for its AI-powered autonomous vehicle solutions Highlighted its proprietary computer vision advancements with NVIDIA accelerated computing Expanded the Cyngn Dealer Network to include Alta Equipment Group, with more than $1 billion in annual sales Cyngn, developer of industrial autonomous vehicles, today announced financial results for its second quarter, which ended Jun 30, 2024. “During the second quarter, we continued the momentum we made in Q1, marked by rapid strides toward broad commercialization,” said Cyngn CEO Lior Tal. “In addition to the progress we made with John Deere, another key priority has been to expand our sales channels to access more opportunities via established dealers and partners. We are well on our way toward bringing Cyngn’s autonomous industrial vehicle products to even more facilities by partnering with experienced material handling and automation leaders like Motrec, Alta, and RobotLAB. “Our expanding dealer network yields channels that consistently deliver commercial opportunities. On the advertising side, we doubled the number of marketing-sourced leads and decreased the acquisition cost of these opportunities by 67%. “Overall, our pipeline is very healthy. We continue to make progress with automotive manufacturers and their tier-1 suppliers, defense contractors, and heavy equipment manufacturers. We are largely engaging with known brands in the Fortune 500, and we will continue to work closely with our customers to share these exciting logos with the public when we can.” “Autonomous vehicle deployments have a long sales cycle,” said Ben Landen, VP of Business Development. Vehicles need to be put through their paces at customer facilities to ensure they will operate as reliably and safely as a well-trained human driver. Cyngn passes this test easily, but it takes time. These big organizations with well-established workflows need to see for themselves that Cyngn vehicles are the best employees they’ve ever had. “By all accounts, this process is working. Our pipeline is growing, we keep adding industry veterans with extensive experience to our sales team, and we have the resolve and partners to stay the course in our pursuit of the significant industrial automation market in front of us. “We look forward to providing additional updates and continuing to increase momentum.” “Regaining compliance with Nasdaq’s minimum bid price was a significant priority,” added Don Alvarez, Cyngn’s CFO. “Our balance sheet remains clean with no debt, and these factors underscore our financial health and position us favorably as we move forward. Our solid foundation and strategic direction are positioning us for a successful future.” When reviewing the financial information below, note that all share and per share information, Common stock, and Additional paid-in capital have been restated to reflect the 1-for-100 reverse stock split effected on July 3, 2024. Q2 2024 Three-Month Financial Review: The second quarter’s revenue was $8.7 thousand compared to $550.9 thousand in the second quarter of 2023. In the second quarter of 2024, revenue consisted of EAS software subscriptions from DriveMod Stockchaser vehicle deployments, whereas prior year revenue resulted from NRE contracts. Total costs and expenses in the second quarter were $5.8 million, down from $7.0 million in the second quarter of 2023. This decrease was primarily due to a $447.7 thousand decrease in cost of revenue, a $239.1 thousand reduction in G&A expenses, and a decrease in R&D expenses of $538.7 thousand. The decrease in the cost of revenue is driven by the lower costs associated with EAS revenue compared to the NRE contracts in 2023. The decrease in G&A expenses is due to a decrease in personnel costs, reduced premiums for Director and Office Liability Insurance, and spending improvements on general office expenses. The decrease in R&D expense was primarily driven by capitalizing costs for specific customers and capitalizing costs related to the development of software. The headcount at the end of the second quarter of 2024 was 85 versus 75 at the end of the second quarter of 2023. Net loss for the second quarter was $(5.8) million, compared to $(6.4) million in the corresponding quarter of 2023. The second quarter of 2024 net loss per share was $(4.11), based on basic and diluted weighted average shares outstanding of approximately 1,416.8 thousand. This compares to a net loss per share of $(12.97) in the second quarter of 2023, based on approximately 489.9 thousand basic and diluted weighted average shares outstanding. Q2 2024 Six-Month Financial Review: Year-to-date second-quarter revenue was $14.2 thousand, compared to $1.4 million in the second quarter of 2023. Second-quarter 2024 revenue consisted of EAS software subscriptions from DriveMod Stock chaser vehicle deployments, whereas prior-year revenue was the result of NRE contracts. Total costs and expenses in the second quarter were $11.8 million, down from $13.8 million in the second quarter of 2023. This decrease was primarily due to a $950.6 thousand decrease in cost of revenue, a $606.6 thousand reduction in G&A expenses, and a decrease in R&D expenses of $414.1 thousand. The decrease in the cost of revenue is driven by the lower costs associated with EAS revenue compared to the NRE contracts in 2023. The decrease in G&A expenses is due to a decrease in personnel costs, reduced premiums for Director and Office Liability Insurance, and spending improvements on general office expenses. The decrease in R&D expense was primarily driven by capitalizing costs for specific customers and capitalizing costs related to the development of software. Net loss for the second quarter was $(11.8) million, compared to $(12.0) million in the corresponding quarter of 2023. The second quarter of 2024 net loss per share was $(12.15), based on basic and diluted weighted average shares outstanding of approximately 970.3 thousand. This compares to a net loss per share of $(24.48) for the first six months of 2023, based on approximately 489.4 thousand basic and diluted weighted average shares outstanding during the period. Balance Sheet Highlights*: Cyngn’s cash and short-term investments at June 30, 2024, total

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The Manitowoc Company reports Second-Quarter 2024 financial results with net sales down 6.8% year-over-year

Wed, 07 Aug 2024 21:20:58 +0000

Today, the Manitowoc Company, Inc. reported a second-quarter net income of $1.6 million, or $0.04 per diluted share. Second-quarter adjusted net income (1) was $8.8 million, or $0.25 per diluted share. Net sales in the second quarter decreased 6.8% year-over-year to $562.1 million and were unfavorably impacted by $2.7 million from changes in foreign currency exchange rates. In the second quarter, adjusted EBITDA (1) was $36.0 million, a decrease of $24.4 million or 40.4% from the prior year. Orders in the second quarter were $428.4 million, a 22.2% decrease from the prior year. This resulted in a backlog of $836.3 million at the end of the second quarter. Orders were unfavorably impacted by $2.0 million from changes in foreign currency exchange rates. “During the second quarter, we faced a variety of operational issues which led to lower-than-anticipated results. In addition, the Tower Crane business in Europe remained a headwind to our results. Order intake was sluggish for mobile cranes in Europe and North America. Mobile customers have been slow to commit to new cranes in the face of the uncertainties associated with the upcoming U.S. election and the continued higher interest rate environment. Looking at the balance of the year, we expect weaker demand to continue. As a result, and with a focus on inventory reductions to generate free cash flow, we took actions to adjust our build schedules in the second half. We have updated our full year guidance accordingly,” commented Aaron H. Ravenscroft, President and Chief Executive Officer of The Manitowoc Company, Inc. “CRANES+50 is the driving force in our transformation as a stand-alone crane company. Since its launch, our non-new machine sales have grown 34%, expanding our higher margin, recurring revenue streams. We remain focused on continuous improvement through The Manitowoc Way and growing our aftermarket through CRANES+50 to drive long-term shareholder value,” added Ravenscroft. Updated Full-Year 2024 Guidance Manitowoc is updating its full-year 2024 guidance as follows: Net sales – $2.175 billion to $2.225 billion (previously $2.275 billion to $2.375 billion) Adjusted EBITDA – $125 million to $140 million (previously $150 million to $180 million) Depreciation and amortization – $60 million to $63 million (previously $63 million to $67 million) Interest expense – $36 million to $38 million (previously $32 million to $34 million) Provision for income taxes – $9 million to $13 million (previously $18 million to $22 million) Adjusted diluted earnings per share – $0.45 to $0.90 (previously $0.95 to $1.55) Capital expenditures – $60 million, of which approximately $25 million is for the rental fleet Free cash flows – $30 million to $50 million (previously $30 million to $60 million) (1) Other non-recurring items – net for the three months ended June 30, 2024, relate to $5.3 million of costs associated with a legal matter with the U.S. EPA and $0.1 million of one-time costs. Other non-recurring items – net for the six months ended June 30, 2024, relate to $5.3 million of costs associated with a legal matter with the U.S. EPA and $0.2 million of one-time costs. Other non-recurring items – net for the three and six months ended June 30, 2023, relate to $10.8 million of costs associated with a legal matter with the U.S. EPA. Other non-recurring items – net for the trailing twelve months relate to $15.7 million of costs associated with a legal matter with the U.S. EPA and $0.8 million of one-time costs. (2) Other (income) expense – net includes net foreign currency gains (losses), other components of net periodic pension costs, and other items in the three and trailing twelve months ended June 30, 2024, and the three months ended June 30, 2023. Other expenses – net for the three and six months ended June 30, 2023, include a $9.3 million write-off of non-cash foreign currency translation adjustments from the curtailment of operations in Russia.

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Alta Equipment Group announces Second Quarter 2024 Financial Results

Wed, 07 Aug 2024 21:11:29 +0000

Total revenues increased $19.7 million year over year to $488.1 million Construction Equipment and Material Handling revenues of $294.9 million and $175.6 million, respectively Product support revenues increased 10.1% year over year, with Parts sales increasing to $78.0 million and Service revenues increasing to $66.2 million New and used equipment sales decreased 1.2% year over year to $251.5 million Net loss available to common stockholders of $(12.6) million Basic and diluted net loss per share of $(0.38) Adjusted basic and diluted net income per share* of $0.01 Adjusted EBITDA* of $50.3 million Alta Equipment Group Inc., a provider of premium material handling, construction, and environmental processing equipment and related services, today announced financial results for the second quarter that ended June 30, 2024. Ryan Greenawalt, Chief Executive Officer of Alta, said, “Our business rebounded well this quarter from the seasonally-challenged first quarter and in the face of a moderating market environment for new equipment sales. Notably, our product support business performed well in this moderating environment as we continued to achieve organic growth on an increased field population, with revenues increasing to a record of $144.2 million, an increase of $13.2 million from a year ago. Additionally, our Material Handling segment continued its steady path of profitable growth as we progressively executed a solid sales backlog and gained market share in strategic regions and product categories throughout our footprint. We also saw a rebound in our Master Distribution segment, as revenue in the quarter was $16.7 million versus $12.8 million in the first quarter. While we benefited from a return to normal seasonality and a strong quarter from our Material Handling segment and our product support business lines, market unit volumes in our Construction Equipment segment remain under pressure due to uncertainty regarding interest rates and the election outcome, especially affecting small to mid-size contractors. Additionally, our construction equipment sales margins continued to be impacted by the oversupply of competitive new equipment on the market in the quarter.” Mr. Greenawalt continued, “In the second quarter, we gained further traction in our eMobility segment, which expands the Alta dealership model into the over-the-road commercial vehicle industry with a focus on commercial electric vehicles and fueling and charging infrastructure. To that end, we are excited about our new partnership with Harbinger Motors, a new manufacturer of best-in-class commercial electric vehicles in the medium-duty truck space. With the inclusion of Harbinger to our portfolio and the traction gained with new customers in the quarter, we now have approximately $25 million of sales backlog in the eMobility business that we expect the majority to convert to revenues in the second half of 2024.” In conclusion, Mr. Greenawalt commented, “As we head into the second half of 2024 and into 2025, cost and fleet optimization and other initiatives to streamline our business will be high priorities as we calibrate to the transitioning environment. Despite what we believe to be potentially transitory headwinds for new equipment sales, our long-term outlook for our Construction Equipment segment remains positive. Infrastructure-related project pipelines are significant. We expect state DOT budgets to remain elevated in 2025 and spending on federal infrastructure programs is still in the early innings. In the Material Handling segment, we’re proud to be a world-class partner of Hyster-Yale Materials Handling and believe that their product portfolio and commitment to advanced technologies combined with our diversified end-markets will allow us to gain market share in key regions in the years to come, regardless of the volatility in the macro environment. I sincerely want to thank all of our 3,000 dedicated employees for their hard work and commitment to our business and to one another through the first half of the year.” Full Year 2024 Financial Guidance and Other Financial Notes: The Company updates our guidance range and now expects to report Adjusted EBITDA between $190.0 million and $200.0 million for the 2024 fiscal year. On June 5, 2024, the Company sold $500.0 million of Senior Secured Second Lien Notes at the rate of 9.000% per annum, which are due on June 1, 2029 (“2029 Notes”). With the proceeds, the Company extinguished our $315.0 million of Senior Secured Second Lien Notes due April 2026. The Company recorded a loss on debt extinguishment of $6.7 million. Concurrently with the 2029 Notes, the Company amended our ABL First Lien Credit Agreement to extend the maturity date to 2029 and increase the facility size to $520.0 million. Concurrently with the 2029 Notes, the Company amended our ABL First Lien Credit Agreement to increase the floor plan facility to $90.0 million. During the second quarter, the Company repurchased 231,334 shares for $2.0 million. We have a remaining repurchase authorization of $10.5 million.

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Plastics Industry Association (PLASTICS) launches new plastics demand estimate report

Mon, 05 Aug 2024 17:54:26 +0000

The Plastics Industry Association (PLASTICS) has released the inaugural Plastics Demand Estimate Report. The report estimates the plastic demand estimate for May 2024 in the U.S. The monthly estimate for the demand for plastics products serves as a valuable indicator for plastics processors and the entire plastics industry supply chain. The report will now be released monthly by PLASTICS, which is the only trade association providing this type of report and analysis. “The Plastics Demand Estimate is a great new set of data that provides helpful market intelligence to our members and the industry at large. This is the only plastics demand estimate available monthly and I’m proud of our Chief Economist Perc Pineda’s work on putting this together,” said Matt Seaholm, President and CEO of PLASTICS. “While demand will continue to vary monthly, the year-over-year change in plastics demand at current prices and real demand, adjusted for inflation, has been more aligned in recent periods compared to 2021 and 2022,” said Perc Pineda, PhD, PLASTICS’ Chief Economist. The Plastics Demand Estimate Report is available to PLASTICS’ members and non-members here.

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KION significantly increases profitability in the first half of 2024 driven by improvements in both operating segments

Wed, 31 Jul 2024 15:54:14 +0000

Revenue up by 2 percent to € 5.736 billion (H1 2023: € 5.617 billion) Adj. EBIT improves 28 percent to € 447 million (H1 2023: € 348 million) Adj. EBIT margin of 7.8 percent (H1 2023: 6.2 percent) Free cash flow of € 202 million (H1 2023: € 229 million) Outlook for 2024 confirmed with narrowed bandwidths The KION Group continued to deliver strong earnings and margins in the first half of 2024. With revenues of € 5.736 billion (H1 2023: € 5.617 billion) and a 28 percent higher adjusted EBIT of € 447.0 million (H1 2023: € 348.3 million), the adjusted EBIT margin went up by 160 basis points to 7.8 percent (H1 2023: 6.2 percent). “Significant year-on-year profitability improvements in both operating segments led to a 28 percent increase of our adjusted EBIT in the first half of the year,” says Rob Smith, Chief Executive Officer of KION GROUP AG. “Despite a slower market recovery in the current financial year, we are well on track to achieve our outlook. Our clear strategy, our broad range of products and solutions for customers and our presence in all key markets position KION very well for the future.” The Industrial Trucks & Services segment increased total revenues by 4.1 percent to € 4.306 billion (H1 2023: € 4.135 billion), supported by a higher number of products delivered and previous price increases. The revenue in the service business grew by 2.3 percent across all key categories. Despite a slight increase in the second quarter, total revenue in the Supply Chain Solutions segment declined to € 1.451 billion (H1 2023: € 1.497 billion) in the first half of 2024 – mainly due to lower order intake in the project business in previous quarters. The service business revenue increased by 11.9 percent compared to the first half of 2023. Adjusted EBIT for the Industrial Trucks & Services segment improved substantially to € 470.7 million (H1 2023: € 378.9 million). Revenue growth combined with stable material purchase prices led to a significantly higher gross margin. The adjusted EBIT margin increased to 10.9 percent (H1 2023: 9.2 percent). At € 42.1 million, adjusted EBIT in the Supply Chain Solutions segment almost tripled compared to the previous year (€ 14.8 million). Improved project implementation, efficiency measures and, in particular, the growth in the service business contributed to the improvement in earnings and margins. The adjusted EBIT margin rose to 2.9 percent (H1 2023: 1.0 percent). KION Group net income improved to € 181.7 million in the first half of 2024 (H1 2023: € 146.3 million). This corresponds to undiluted earnings per share of € 1.35 (H1 2023: € 1.09). Free cash flow was € 202.2 million (H1 2023: € 228.8 million) in the first six months of 2024 reflecting the high operating result. Outlook confirmed and narrowed The KION Group expects the global industrial trucks market (in units) to remain on the prior year level in 2024 compared to earlier expectations of slight growth. In the market for supply chain solutions, the KION Group now expects the global market volume in 2024 (measured in terms of revenue) to decline slightly compared with the previous expectation of a slight growth. Based on the business performance in the first half of the year and the updated market expectations, the Executive Board of KION GROUP AG has confirmed its outlook and narrowed its guidance ranges for the 2024 financial year as follows: Outlook 2024 KION Group Industrial Trucks & Services Supply Chain Solutions in € million Outlook 2024 Outlook 2024 adjusted Outlook 2024 Outlook 2024 adjusted Outlook 2024 Outlook 2024 adjusted Revenue1 11,200 – 12,000 11,300 – 11,700 8,500 – 9,000 8,500 – 8,700 2,700 – 3,000 2,800 – 3,000 Adjusted EBIT1 790 – 940 830 – 920 850 – 950 870 – 930 60 – 120 80 – 120 Free cash flow 550 – 670 550 – 670 – – – – ROCE 7.4% – 8.8% 7.7% – 8.7% – – – – 1 Disclosures for the Industrial Trucks & Services and Supply Chain Solutions segments also include intra-group cross-segment revenue and effects on EBIT. Key performance indicators for the KION Group and its two operating segments for the first half-year of 2024 and for the second quarter ending June 30, 2024 in € million Q2/2024 Q2/2023 Diff. H1/2024 H1/2023 Diff. Revenue Industrial Trucks & Services Supply Chain Solutions 2,877 2,153 732 2,836 2,130 714 1.4% 1.1% 2.5% 5,736 4,306 1,451 5,617 4,135 1,497 2.1% 4.1% -3.1% Adjusted EBIT [1] Industrial Trucks & Services Supply Chain Solutions 220.3 231.0 23.7 192.3 202.3 7.7 14.5% 14.2% > 100% 447.0 470.7 42.1 348.3 378.9 14.8 28.3% 24.2% > 100% Adjusted EBIT margin [1] Industrial Trucks & Services Supply Chain Solutions 7.7% 10.7% 3.2% 6.8% 9.5% 1.1% – – – 7.8% 10.9% 2.9% 6.2% 9.2% 1.0% – – – Net income 70.7 72.8 -2.9% 181.7 146.3 24.1% Basic earnings per share (in €) (undiluted) [2] 0.52 0.54 -4.1% 1.35 1.09 23.6% Free cash flow [3] 136.5 123.9 12.7 202.2 228.8 -26.5 Order intake [4] Industrial Trucks & Services Supply Chain Solutions 2,640 1,966 677 2,872 2,001 881 -232 -35 -204 5,079 3,770 1,318 5,273 3,957 1,335 –194 -188 -17 Order book [4], [5] Industrial Trucks & Services Supply Chain Solutions 5,272 2,602 2,732 6,045 3,197 2,921 -773 -595 -189 Employees [6] 42,303 42,325 -22 [1] Adjusted for effects of purchase price allocations as well as non-recurring items. [2] Net income attributable to shareholders of KION GROUP AG: € 177.0 million (H1/2023: € 143.3 million). EPS calculation is based on average number of shares of 131.1 million. [3] Free cash flow is defined as cash flow from ongoing business plus cash flow from investment activity. [4] Prior-year figures for order intake and order book have been definition-related adjusted in the SCS segment. [5] Figures as of June 30, 2024, compared to balance sheet date Dec. 31, 2023. [6] Number of full-time equivalents incl. apprentices and

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H&E Equipment Services, Inc. reports second quarter 2024 results

Tue, 30 Jul 2024 17:18:19 +0000

H&E Equipment Services, Inc. reported financial results for the second quarter that ended June 30, 2024, including further expansion of its branch network which now extends to 31 states. SECOND QUARTER 2024 SUMMARY WITH A COMPARISON TO SECOND QUARTER 2023 Revenues increased 4.5% to $376.3 million compared to $360.2 million. Net income was $33.3 million compared to $41.2 million. The effective income tax rate was 27.8% compared to 26.3%. Adjusted EBITDA totaled $173.2 million, an increase of 2.8% compared to $168.6 million. Adjusted EBITDA margins were 46.0% of revenues compared to 46.8%. Total equipment rental revenues were $312.4 million, an increase of $20.9 million, or 7.2%, compared to $291.5 million. Rental revenues were $275.5 million, an increase of $16.8 million, or 6.5%, compared to $258.7 million. Sales of rental equipment decreased 11.9% to $34.9 million compared to $39.7 million. Gross margin declined to 45.5% compared to 46.7%. Total equipment rental gross margins were 45.5% compared to 46.8%. Rental gross margins were 51.0% compared to 51.8%. Average time utilization (based on original equipment cost) was 66.4% compared to 69.3%. The Company’s rental fleet, based on original acquisition cost, closed the second quarter of 2024 at $2.9 billion, an increase of $279.0 million, or 10.7%. Average rental rates increased 1.9% compared to the second quarter of 2023, and declined 0.1% compared to the first quarter of 2024. Dollar utilization of 38.6% compared to 40.6% in the second quarter of 2023 and 37.0% in the first quarter of 2024. Average rental fleet age on June 30, 2024, was 40.0 months compared to an industry average age of 48.1 months. Paid regular quarterly cash dividend of $0.275 per share of common stock. Reviewing the Company’s second quarter performance, Brad Barber, chief executive officer of H&E noted, “Rental revenues increased 6.5% compared to the year-ago quarter, with the increase led primarily by the ongoing expansion of our branch network. A total of 23 new locations, including acquisitions, were opened over the last twelve months ending June 30, 2024, providing important access to new markets with expanding opportunities. Also, we received support from rental rates, which improved 1.9% compared to the year-ago level. On a sequential quarterly basis, rental rates in the second quarter declined 0.1%. The improvement in revenues was partially offset by lower average physical utilization, which closed the quarter at 66.4%, or a decline of 290 basis points compared to the year-ago result. Average physical utilization in the second quarter recorded a sequential quarterly improvement of 280 basis points. Finally, we closed the quarter with an original equipment cost (OEC) of $2.9 billion, a 10.7% increase from the year-ago quarter, including a gross fleet investment of $122.1 million in the second quarter and $196.5 million through the first six months of 2024. Our 2024 expected gross fleet expenditures remain in a range of $350 million to $400 million.” Mr. Barber described the Company’s sustained focus on expansion into key U.S. markets, stating, “We opened six new branch locations during the second quarter that enhance our presence in the Southeast, Gulf Coast and Mid-Atlantic regions of the U.S., representing attractive geographies with increasing construction activity and excellent long-term potential. Also, the completion of our latest acquisition in May 2024 resulted in the addition of four branches in northern and central Montana, increasing our presence in that state to six locations while maximizing our exposure to a diverse set of project opportunities. This long-term strategic commitment to expanding our market presence provides greater scale and advantageously positions the Company for future opportunities and improved financial performance. We concluded the second quarter of 2024 with 149 branches across 31 states, representing growth of approximately 45% over the last 36 months ending June 30, 2024.” Commenting on the outlook for the equipment rental industry, Mr. Barber said, “We reiterate our view of a more moderate level of spending and project starts as the construction industry continues to transition to a lower level of activity compared to levels in 2022 and 2023. Higher project financing costs and more stringent lending standards have led to curtailed spending, especially among smaller contractors. Conversely, we are encouraged by the continued growth in mega projects and increased infrastructure project funding. H&E’s participation in these projects continues to rise as the Company fully leverages its increased scale in the U.S. Mega projects are a meaningful growth opportunity for H&E and our industry, and given their size and long duration, they provide a more stable base of demand in support of key industry fundamentals.” FINANCIAL DISCUSSION FOR SECOND QUARTER 2024 Revenue Total revenues improved to $376.3 million, or 4.5%, in the second quarter of 2024 from $360.2 million in the second quarter of 2023. Total equipment rental revenues of $312.4 million improved 7.2% compared to $291.5 million in the second quarter of 2023. Rental revenues of $275.5 million increased 6.5% compared to $258.7 million in the second quarter of 2023. Sales of rental equipment totaled $34.9 million, a decrease of 11.9% compared to $39.7 million in the second quarter of 2023. Sales of new equipment of $10.7 million increased 20.5% compared to $8.9 million in the same quarter of 2023. Gross Profit Gross profit totaled $171.3 million in the second quarter of 2024, increasing 1.7% compared to $168.4 million in the second quarter of 2023. Gross margin declined to 45.5% for the second quarter of 2024 compared to 46.7% for the same quarter in 2023. On a segment basis, gross margin on total equipment rentals was 45.5% in the second quarter of 2024 compared to 46.8% in the second quarter of 2023. Rental margins were 51.0% compared to 51.8% over the same period of comparison. Rental rates in the second quarter of 2024 were 1.9% better than rates in the second quarter of 2023. Time utilization (based on original equipment cost) was 66.4% in the second quarter of 2024 compared to 69.3% in the second quarter of 2023. Gross margins on sales of rental equipment improved to 62.4% in the second quarter of 2024 compared to 59.1% in second quarter of 2023. Gross margins on sales of new equipment were 16.9% in the second quarter of 2024 compared to 14.9% over the same period of comparison. Rental Fleet The original equipment cost of the Company’s rental fleet as of June 30, 2024, was approximately $2.9 billion, representing an increase of $279.0 million, or 10.7%, from the end of the second quarter of 2023. Dollar utilization in

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Nucor reports 11% consolidated net sales decrease for the first six months compared to prior year

Mon, 22 Jul 2024 20:56:03 +0000

Nucor Corporation announced consolidated net earnings attributable to Nucor stockholders of $645.2 million, or $2.68 per diluted share, for the second quarter of 2024. By comparison, Nucor reported consolidated net earnings attributable to Nucor stockholders of $844.8 million, or $3.46 per diluted share, for the first quarter of 2024 and $1.46 billion, or $5.81 per diluted share, for the second quarter of 2023. In the first six months of 2024, Nucor reported consolidated net earnings attributable to Nucor stockholders of $1.49 billion, or $6.14 per diluted share, compared with consolidated net earnings attributable to Nucor stockholders of $2.60 billion, or $10.26 per diluted share, in the first six months of 2023. “While market conditions have softened compared to recent record-setting years, Nucor remains focused on its long-term growth strategy and has returned more than $1.7 billion to investors through June,” said Leon Topalian, Nucor’s Chair, President and Chief Executive Officer. “Nucor’s strategy to grow our core steelmaking operations and expand into steel-adjacent downstream markets positions the company to create attractive shareholder value and improve the company’s through-cycle earnings profile. I am incredibly proud of the 32,000 men and women of Nucor who are executing this growth plan while achieving the safest start to any year in Nucor’s history.” Financial Review Nucor’s consolidated net sales decreased 1% to $8.08 billion in the second quarter of 2024 compared with $8.14 billion in the first quarter of 2024 and decreased 15% compared with $9.52 billion in the second quarter of 2023. Average sales price per ton in the second quarter of 2024 decreased 2% compared with the first quarter of 2024 and decreased 11% compared with the second quarter of 2023. Approximately 6,289,000 tons were shipped to outside customers in the second quarter of 2024, a 1% increase compared with the first quarter of 2024 and a 5% decrease compared with the second quarter of 2023. Total steel mill shipments in the second quarter of 2024 were comparable to the first quarter of 2024 and decreased 2% compared to the second quarter of 2023. Steel mill shipments to internal customers represented 21% of total steel mill shipments in the second quarter of 2024, compared with 21% in the first quarter of 2024 and 20% in the second quarter of 2023. Downstream steel product shipments to outside customers in the second quarter of 2024 increased by 11% compared with the first quarter of 2024 and decreased by 10% compared with the second quarter of 2023. In the first six months of 2024, Nucor’s consolidated net sales of $16.21 billion decreased 11% compared with consolidated net sales of $18.23 billion reported in the first six months of 2023. Total tons shipped to outside customers in the first six months of 2024 were approximately 12,513,000 tons, a decrease of 4% compared with the first six months of 2023, and the average sales price per ton in the first six months of 2024 decreased 7% compared with the first six months of 2023. The average scrap and scrap substitute cost per gross ton used in the second quarter of 2024 was $396, a 6% decrease compared to $421 in the first quarter of 2024 and a 13% decrease compared to $455 in the second quarter of 2023. The average scrap and scrap substitute cost per gross ton used in the first six months of 2024 was $409, a 6% decrease compared to $435 in the first six months of 2023. Pre-operating and start-up costs related to the Company’s growth projects were approximately $137 million, or $0.43 per diluted share, in the second quarter of 2024, compared with approximately $125 million, or $0.39 per diluted share, in the first quarter of 2024 and approximately $90 million, or $0.27 per diluted share, in the second quarter of 2023. In the first six months of 2024, pre-operating and start-up costs related to the Company’s growth projects were approximately $262 million, or $0.82 per diluted share, compared with approximately $172 million, or $0.52 per diluted share, in the first six months of 2023. Overall, operating rates at the Company’s steel mills decreased to 75% in the second quarter of 2024, compared to 82% in the first quarter of 2024 and 84% in the second quarter of 2023. Operating rates in the first six months of 2024 decreased to 79%, compared to 82% in the first six months of 2023. Financial Strength At the end of the second quarter of 2024, we had $5.43 billion in cash and cash equivalents and short-term investments on hand. The Company’s $1.75 billion revolving credit facility remains undrawn and does not expire until November 2026. Nucor continues to have the strongest credit ratings in the North American steel sector (A-/A-/Baa1), with stable outlooks at Standard & Poor’s and Fitch Ratings and a positive outlook at Moody’s. Commitment to Returning Capital to Stockholders During the second quarter of 2024, Nucor repurchased approximately 2.9 million shares of its common stock at an average price of $170.70 per share (approximately 8.5 million shares during the first six months of 2024 at an average price of $177.30 per share). As of June 29, 2024, Nucor had approximately $1.82 billion remaining authorized and available for repurchases under its share repurchase program. This share repurchase authorization is discretionary and has no scheduled expiration date. On June 6, 2024, Nucor’s Board of Directors declared a cash dividend of $0.54 per share. This cash dividend is payable on August 9, 2024, to stockholders of record as of June 28, 2024, and is Nucor’s 205th consecutive quarterly cash dividend. Second Quarter of 2024 Analysis The largest driver of the decrease in earnings in the second quarter of 2024 as compared to the first quarter of 2024 was the decreased earnings of the steel mills segment, primarily due to lower average selling prices and, to a lesser extent, decreased volumes. The steel products segment had decreased earnings in the second quarter of 2024 as compared to the first quarter of 2024 due to lower average

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US Cutting Tool Orders totaled $214.7 Million in April 2024, Raising Year-to-Date total nearly 5% over 2023

Wed, 12 Jun 2024 14:56:17 +0000

Shipments of cutting tools, measured by the Cutting Tool Market Report compiled in a collaboration between AMT – The Association For Manufacturing Technology and the U.S. Cutting Tool Institute (USCTI), reached $214.7 million in April 2024. Orders increased by 1.1% over March 2024 and grew by 13% over April 2023. Year-to-date shipments totaled $846.1 million, nearly 5% above shipments made in the first four months of 2023. “While April 2024 shipping numbers do show an increase from those of 2023, caution continues due to many uncertainties ahead for the remainder of 2024,” said Steve Boyer, president of USCTI. “Uneven growth and turbulence have continued to impact cutting tool orders through the first quarter of 2024, and there have been some downgrades in expected needs from the aerospace sector, leading to stagnation in new orders.” Costikyan Jarvis, president of Jarvis Cutting Tools, expanded on Boyer’s analysis, saying, “The industrial sector of the economy continues to move sideways. While the value of cutting tool shipments is up about 5% over last year, the flatter growth rate in units shows that inflationary pressures are still present.” Looking forward, Jarvis said: “There are two big ‘ifs’ that could result in improved demand during the second half of the year. The first is that the overall production remains consistent. The second is if Boeing can start ramping up production of the 737 to the FAA limit of 38 per month. If those two things can happen, the cutting tool industry might be positioned for growth in both revenue and volumes.” The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production, and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers’ consumption of the primary consumable in manufacturing – the cutting tool. Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels. Historical data for the Cutting Tool Market Report is available dating back to January 2012. This collaboration of AMT and USCTI is the first step in the two associations working together to promote and support U.S.-based manufacturers of cutting tool technology. The graph below includes the 12-month moving average for the durable goods shipments and cutting tool orders. These values are calculated by taking the average of the most recent 12 months and plotting them over time. AMT – The Association For Manufacturing Technology represents and promotes U.S.-based manufacturing technology and its members – those who design, build, sell, and service the continuously evolving technology that lies at the heart of manufacturing. Founded in 1902 and based in Virginia, the association specializes in providing targeted business assistance, extensive global support, and business intelligence systems and analysis. AMT is the voice that communicates the importance of policies and programs that encourage research and innovation, and the development of educational initiatives to create tomorrow’s Smartforce. AMT owns and manages IMTS – The International Manufacturing Technology Show, which is the premier manufacturing technology event in North America. The United States Cutting Tool Institute (USCTI) was formed in 1988 and resulted from a merger of the two national associations representing the cutting tool manufacturing industry. USCTI works to represent, promote, and expand the U.S. cutting tool industry and to promote the benefits of buying American-made cutting tools manufactured by its members. The Institute recently expanded its by-laws to include any North American manufacturer and/or remanufacturer of cutting tools, as well as post-fabrication tool surface treatment providers. Members, which number over 80, belong to seven product divisions: Carbide Tooling, Drill & Reamer, Milling Cutter, PCD & PCBN, Tap & Die, Tool Holder and All Other Tooling. A wide range of activities includes a comprehensive statistics program, human resources surveys and forums, development of product specifications and standards, and semi-annual meetings to share ideas and receive information on key industry trends.

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