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(Dollars in Millions, Except Per Share Data) Hyster-Yale, Inc. ("Hyster-Yale" or the "Company") and its subsidiaries, including its operating companies, Hyster-Yale Materials Handling, Inc. ("HYMH") and Bolzoni S.p.A. ("Bolzoni Group" or "Bolzoni"), is a globally integrated company offering a full line of high-quality, application-tailored lift trucks and solutions aimed at meeting the specific materials handling needs of its customers. The Company's solutions include attachments, parts, fleet management services, technology and energy solutions. Through HYMH, the Company designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments, parts, fleet management services, technology and energy solutions marketed globally, primarily under the Hyster®, Yale® and Nuvera® brand names, mainly to independent Hyster® and Yale® retail dealerships. The Company's distribution network consisted of approximately 250 independent dealers as of June 30, 2026. The materials handling business historically has been cyclical because the order rate for lift trucks fluctuates depending on the economic activity level in the various industries and countries its customers serve. Lift trucks and component parts are manufactured and assembled in the United States ("U.S."), Northern Ireland, China, the Netherlands, Mexico, the Philippines, Brazil, Japan, Italy and Vietnam. The Company owns a 90% majority interest in Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd. ("Hyster-Yale Maximal"), a manufacturer of low-intensity and standard lift trucks and specialized material handling equipment. Hyster-Yale Maximal also designs and produces specialized products in the port equipment and rough terrain forklift markets. Bolzoni Group manufactures precision-engineered lift truck attachments, forks, masts and lift tables designed for handling delicate and specialized loads. These solutions are marketed under the Bolzoni®, Auramo® and Meyer® brand names and the Silver Line product portfolio. Bolzoni Group also produces components for lift truck manufacturers. Bolzoni products are manufactured in Italy, the U.S., China, Germany, Finland and Brazil. Through the design, production and distribution of a wide range of attachments, Bolzoni Group has a strong presence in the lift-truck attachments market and the industrial material handling market. CRITICAL ACCOUNTING POLICIES AND ESTIMATES Please refer to the discussion of Critical Accounting Policies and Estimates as disclosed on pages 18 through 19 in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Critical Accounting Policies and Estimates have not materially changed since December 31, 2025. FINANCIAL REVIEW The results of operations for the Company were as follows: THREE MONTHS ENDED Favorable / (Unfavorable) SIX MONTHS ENDED Favorable / (Unfavorable) JUNE 30, JUNE 30, 2026 2025 % Change 2026 2025 % Change Revenues Americas $ 596.2 $ 707.5 (15.7) % $ 1,174.6 $ 1,406.4 (16.5) % EMEA 118.2 148.3 (20.3) % 244.2 266.5 (8.4) % JAPIC 41.1 48.4 (15.1) % 76.4 95.7 (20.2) % Lift truck business 755.5 904.2 (16.4) % 1,495.2 1,768.6 (15.5) % Bolzoni 81.9 90.6 (9.6) % 164.8 170.9 (3.6) % Eliminations (24.5) (38.2) (35.9) % (51.9) (72.5) (28.4) % $ 812.9 $ 956.6 (15.0) % $ 1,608.1 $ 1,867.0 (13.9) % 22 Table of Contents THREE MONTHS ENDED Favorable / (Unfavorable) SIX MONTHS ENDED Favorable / (Unfavorable) JUNE 30, JUNE 30, 2026 2025 % Change 2026 2025 % Change Gross profit Americas $ 91.7 $ 129.9 (29.4) % $ 185.4 $ 272.4 (31.9) % EMEA 10.3 14.8 (30.4) % 18.9 27.7 (31.8) % JAPIC 3.5 2.1 66.7 % 5.5 5.5 — % Lift truck business 105.5 146.8 (28.1) % 209.8 305.6 (31.3) % Bolzoni 22.0 21.4 2.8 % 42.5 39.9 6.5 % Eliminations 0.1 — n.m. 0.1 0.4 (75.0) % $ 127.6 $ 168.2 (24.1) % $ 252.4 $ 345.9 (27.0) % Selling, general and administrative expenses Americas $ 86.4 $ 102.3 15.5 % $ 180.2 $ 201.6 10.6 % EMEA 28.7 30.1 4.7 % 56.4 59.2 4.7 % JAPIC 9.2 9.6 4.2 % 18.3 19.5 6.2 % Lift truck business 124.3 142.0 12.5 % 254.9 280.3 9.1 % Bolzoni 20.0 19.0 (5.3) % 40.6 36.9 (10.0) % Eliminations — 0 n.m. — 0 n.m. $ 144.3 $ 161.0 10.4 % $ 295.5 $ 317.2 6.8 % Restructuring and impairment charges (reversals) Americas $ 1.7 $ 15.9 89.3 % $ 3.3 $ 16.6 80.1 % EMEA — (0.3) n.m. — (1.6) n.m. JAPIC — 0.1 n.m. — 0.9 n.m. Lift truck business 1.7 15.7 89.2 % 3.3 15.9 79.2 % Bolzoni — — n.m. — — n.m. Eliminations — — n.m. — — n.m. $ 1.7 $ 15.7 89.2 % $ 3.3 $ 15.9 79.2 % Operating profit (loss) Americas $ 3.6 $ 11.7 (69.2) % $ 1.9 $ 54.2 (96.5) % EMEA (18.4) (15.0) (22.7) % (37.5) (29.9) (25.4) % JAPIC (5.7) (7.6) 25.0 % (12.8) (14.9) 14.1 % Lift truck business (20.5) (10.9) (88.1) % (48.4) 9.4 (614.9) % Bolzoni 2.0 2.4 (16.7) % 1.9 3.0 (36.7) % Eliminations 0.1 — n.m. 0.1 0.4 (75.0) % $ (18.4) $ (8.5) (116.5) % $ (46.4) $ 12.8 (462.5) % Interest expense $ 7.8 $ 7.9 1.3 % $ 15.0 $ 15.6 3.8 % Other income $ (3.0) $ (3.2) (6.3) % $ (6.1) $ (6.4) (4.7) % Net loss attributable to stockholders $ (31.6) $ (13.9) (127.3) % $ (62.1) $ (5.3) (1,071.7) % Diluted loss per share $ (1.76) $ (0.79) (122.8) % $ (3.48) $ (0.30) (1,060.0) % n.m. - not meaningful The following is the detail of the approximate sales value of the Company's lift truck unit bookings dollar value and lift truck backlog dollar value. The dollar value of bookings and backlog is calculated using the current unit bookings and backlog and the forecasted average sales price per unit. As of June 30, 2026, substantially all of the Company's backlog is expected to be sold within the next twelve months. 23 Table of Contents THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2026 2025 2026 2025 Bookings, approximate sales value $ 680 $ 330 $ 1,260 $ 920 Backlog, approximate sales value $ 1,580 $ 1,650 $ 1,580 $ 1,650 Second Quarter of 2026 Compared with Second Quarter of 2025 The following table identifies the components of change in revenues for the second quarter of 2026 compared with the second quarter of 2025: Revenues Lift Truck HY Americas EMEA JAPIC 2025 $ 956.6 $ 707.5 $ 148.3 $ 48.4 Decrease in 2026 from: Lift Truck Unit volume and product mix (152.4) (112.4) (31.4) (8.6) Price 17.1 19.0 (1.7) (0.2) Parts (10.2) (9.5) (0.9) 0.2 Foreign currency 5.7 0.8 3.7 1.2 Other (8.9) (9.2) 0.2 0.1 Bolzoni revenues (8.7) — — — Eliminations 13.7 — — — 2026 $ 812.9 $ 596.2 $ 118.2 $ 41.1 Revenues decreased 15.0% to $812.9 million in the second quarter of 2026 from $956.6 million in the second quarter of 2025. The decrease in Lift Truck revenues was primarily due to lower unit volume within Class 1 and Class 4 products and a shift in the mix of sales to lower-intensity, lower-priced models, primarily in the Americas and EMEA. This shift reflects continued market demand for lighter-duty, lower-priced trucks which has led to reduced shipment volumes of the traditional, higher-priced models across all Lift Truck segments. Recently introduced low-intensity products continued to gain market acceptance and helped offset lower sales of higher-revenue products. In addition, lower parts volume and other revenues, primarily in the Americas, also contributed to the decline in Lift Truck revenues. The decline was partially offset by improved pricing and favorable currency movements in the second quarter of 2026 compared to the second quarter of 2025. Bolzoni Group's revenues decreased in the second quarter of 2026 compared with the second quarter of 2025, primarily due to lower unit volume, partially offset by a shift in sales to higher-priced products and favorable foreign currency movements. The following table identifies the components of change in operating profit (loss) for the second quarter of 2026 compared with the second quarter of 2025: Operating Profit (Loss) Lift Truck HY Americas EMEA JAPIC 2025 $ (8.5) $ 11.7 $ (15.0) $ (7.6) Increase (decrease) in 2026 from: Lift truck gross profit (41.2) (38.2) (4.5) 1.4 Lift truck selling, general and administrative expenses 17.7 15.9 1.4 0.4 Restructuring and impairment charges 14.0 14.2 (0.3) 0.1 Bolzoni operations (0.4) — — — 2026 $ (18.4) $ 3.6 $ (18.4) $ (5.7) 24 Table of Contents The Company recognized an operating loss of $18.4 million in the second quarter of 2026 compared to $8.5 million in the second quarter of 2025. The decrease was primarily due to lower unit volume, mainly in the Americas and EMEA, a shift in mix of sales to lower-duty units, and approximately $20 million of additional tariff-related costs in the second quarter of 2026 compared with the prior year's second quarter. The unfavorable changes were partially offset by favorable pricing actions in the Americas and approximately $35 million of tariff-related recoveries recognized during the second quarter of 2026 related to amounts previously paid under the International Emergency Economic Powers Act ("IEEPA"). Selling, general and administrative expenses were lower across all Lift Truck segments, primarily related to reduced employee-related costs resulting from lower headcount and lower incentive compensation estimates. In addition, the Company recognized lower restructuring and impairment charges in the second quarter of 2026 compared with the second quarter of 2025. Bolzoni recognized an operating profit of $2.0 million in the second quarter of 2026 compared to $2.4 million in the second quarter of 2025. The decrease was primarily due to increased employee-related costs included in selling, general and administrative expenses. The Company recognized a net loss attributable to stockholders of $31.6 million in the second quarter of 2026 compared with net loss attributable to stockholders of $13.9 million in the second quarter of 2025. The decline was primarily the result of lower operating profit and higher income tax expense. The Company reported an income tax expense of $8.1 million in the second quarter of 2026. See Note 5, Income Taxes, to the unaudited condensed consolidated financial statements for further discussion. First Six Months of 2026 Compared with First Six Months of 2025 The following table identifies the components of change in revenues for the first six months of 2026 compared with the first six months of 2025: Revenues Lift truck HY Americas EMEA JAPIC 2025 $ 1,867.0 $ 1,406.4 $ 266.5 $ 95.7 Decrease in 2026 from: Lift Truck Unit volume and product mix (282.8) (225.7) (34.3) (22.8) Price 31.8 34.6 (2.5) (0.3) Parts (19.0) (16.8) (4.0) 1.8 Foreign currency 21.6 1.8 17.7 2.1 Other (25.0) (25.7) 0.8 (0.1) Bolzoni revenues (6.1) — — — Eliminations 20.6 — — — 2026 $ 1,608.1 $ 1,174.6 $ 244.2 $ 76.4 Revenues decreased 13.9% to $1,608.1 million in the first six months of 2026 from $1,867.0 million in the first six months of 2025. The decrease in Lift Truck revenues was primarily due to a shift in the mix of sales to lower-intensity, lower-priced models, primarily in the Americas and EMEA and lower volume. This shift reflects continued market demand for lighter-duty, lower-priced trucks which has led to reduced shipment volumes of the traditional, higher-priced models. The decline in Lift Truck revenues was partially offset by improved pricing and favorable currency movements in the first six months of 2026 compared to the first six months of 2025. Bolzoni revenues decreased in the first six months of 2026 compared with the first six months of 2025, primarily due to lower unit volume, partially offset by favorable foreign currency movements. 25 Table of Contents The following table identifies the components of change in operating profit for the first six months of 2026 compared with the first six months of 2025: Operating Profit (Loss) Lift truck HY Americas EMEA JAPIC 2025 $ 12.8 $ 54.2 $ (29.9) $ (14.9) Increase (decrease) in 2026 from: Lift truck gross profit (96.1) (87.0) (8.8) — Lift truck selling, general and administrative expenses 25.4 21.4 2.8 1.2 Restructuring and impairment charges 12.6 13.3 (1.6) 0.9 Bolzoni operations (1.1) — — — 2026 $ (46.4) $ 1.9 $ (37.5) $ (12.8) The Company recognized an operating loss of $46.4 million in the first six months of 2026 compared to operating profit of $12.8 million in the first six months of 2025. The decrease in Lift Truck operating results was primarily due to a shift in the mix of sales to lower-duty units, mainly in the Americas, approximately $50 million of additional tariff-related costs during the first six months of 2026 compared to the first six months of 2025 and lower unit volume. These unfavorable impacts were partially offset by pricing actions in the Americas and approximately $35 million of tariff-related recoveries recognized during the second quarter of 2026 related to amounts previously paid under IEEPA. Selling, general and administrative expenses were lower across all Lift Truck segments, primarily related to reduced employee-related costs resulting from lower headcount and lower incentive compensation estimates. In addition, the Company recognized lower restructuring and impairment charges in the first six months of 2026 compared with the first six months of 2025. Bolzoni's operating profit decreased to $1.9 million in the first six months of 2026 compared with $3.0 million in the first six months of 2025. The decrease was primarily due to increased employee-related costs included in higher selling, general and administrative expenses. The Company recognized a net loss attributable to stockholders of $62.1 million in the first six months of 2026 compared with $5.3 million in the first six months of 2025. The decline was primarily the result of the decrease in operating profit (loss). LIQUIDITY AND CAPITAL RESOURCES Cash Flows The following tables detail the changes in cash flow for the six months ended June 30, 2026 compared to the same period in the prior year: 2026 2025 Change Operating activities: Net loss $ (61.6) $ (4.7) $ (56.9) Depreciation and amortization 22.2 22.8 (0.6) Stock-based compensation 5.8 6.2 (0.4) Restructuring and impairment charges 3.3 15.9 (12.6) Dividends from unconsolidated affiliates 9.1 8.0 1.1 Other operating activities (21.9) 10.1 (32.0) Changes in assets and liabilities Accounts receivable 14.5 7.2 7.3 Inventories 7.3 11.6 (4.3) Other current assets (5.6) 1.8 (7.4) Accounts payable and other liabilities 10.7 (86.4) 97.1 Net cash used for operating activities (16.2) (7.5) (8.7) 26 Table of Contents 2026 2025 Change Investing activities: Expenditures for property, plant and equipment (24.5) (24.4) (0.1) Proceeds from the sale of assets 1.0 1.4 (0.4) Business acquisition, net of cash acquired — (2.6) 2.6 Net cash used for investing activities (23.5) (25.6) 2.1 Cash flow before financing activities $ (39.7) $ (33.1) $ (6.6) Net cash used for operating activities increased by $8.7 million in the first six months of 2026 compared with the first six months of 2025. The increase was primarily due to a higher net loss, which includes cash received for tariff refunds, the change in other operating activities and lower restructuring charges, partially offset by favorable changes in working capital. Accounts payable and other liabilities increased operating cash flows compared with the prior year primarily due to the timing of vendor payments and lower employee-related payments, including incentive compensation. The change in net cash used for investing activities during the first six months of 2026 compared with the first six months of 2025 was mainly due to Bolzoni's acquisition of a manufacturing business in Italy in 2025. 2026 2025 Change Financing activities: Net increase of long-term debt and revolving credit agreements $ 5.0 $ 20.1 $ (15.1) Cash dividends paid (14.3) (13.9) (0.4) Purchase of treasury stock (0.7) (4.4) 3.7 Financing fees paid — (2.1) 2.1 Net cash used for financing activities $ (10.0) $ (0.3) $ (9.7) The change in net cash used for financing activities was primarily due to a smaller increase in net borrowings under the Company's revolving credit facilities during the first six months of 2026 compared to the first six months of 2025. Financing Activities The Company has a $300.0 million secured, floating-rate revolving credit facility (the “Facility”) that expires in June 2030. The Facility consists of a domestic revolving credit facility in the initial amount of $210.0 million and a foreign revolving credit facility in the initial amount of $90.0 million. The Facility can be increased to up to $400.0 million over the term of the Facility in minimum increments of $10.0 million, subject to approval by the lenders. The obligations under the Facility are generally secured by a first priority lien on working capital assets of the borrowers and guarantors in the Facility, which includes but is not limited to cash and cash equivalents, accounts receivable and inventory, and a second priority lien on the present and future shares of capital stock, fixtures and general intangibles consisting of intellectual property. The approximate book value of assets held as collateral under the Facility was $1.0 billion as of June 30, 2026. The Facility includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Facility. The Facility limits the payment of dividends and other restricted payments the Company may make unless certain total excess availability and/or fixed charge coverage ratio thresholds, each as set forth in the Facility, are satisfied. The Facility also requires the Company to achieve a minimum fixed charge coverage ratio when total excess availability is less than the greater of 10% of the total borrowing base, as defined in the Facility, and $20.0 million. At June 30, 2026, the Company was in compliance with the covenants in the Facility. Key terms of the Facility as of June 30, 2026 were as follows: FACILITY U.S. borrowing capacity $ 210.0 Non-U.S. borrowing capacity 90.0 Less: outstanding amount 95.7 Less: availability restrictions 4.2 Availability $ 200.1 27 Table of Contents FACILITY Applicable margins, as defined in agreement U.S. base rate loans 0.25% to 0.75% Term SOFR, EURIBOR and non-U.S. base rate loans 1.25% to 1.75% Applicable margins, for amounts outstanding U.S. base rate loans 0.50% Term SOFR loans 1.50 % Non-U.S. base rate loans 1.50% Applicable interest rate, for amounts outstanding U.S. base rate 7.25% Term SOFR 5.12% Facility fee, per annum on unused commitment 0.25% The Company also has a $225.0 million term loan (the "Term Loan"), which matures in May 2028. The Term Loan requires quarterly principal payments on the last day of each March, June, September and December, which commenced September 30, 2021, in an amount equal to approximately $0.6 million and the final principal repayment is due in May 2028. The Company may also be required to make mandatory prepayments, in certain circumstances, as provided in the Term Loan. The obligations under the Term Loan are generally secured by a first priority lien on the present and future shares of capital stock, material real property, fixtures and general intangibles consisting of intellectual property and a second priority lien on U.S. working capital assets of the borrowers and guarantors of the Facility, which includes, but is not limited to, cash and cash equivalents, accounts receivable and inventory. The approximate book value of assets held as collateral under the Term Loan was $0.7 billion as of June 30, 2026. In addition, the Term Loan includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Term Loan. The Term Loan limits the payment of dividends and other restricted payments the Company may make in any fiscal year, unless the consolidated total net leverage ratio, as defined in the Term Loan, does not exceed 2.50 to 1.00 at the time of the payment. At June 30, 2026, the Company was in compliance with the covenants in the Term Loan. Key terms of the Term Loan as of June 30, 2026 were as follows: TERM LOAN Outstanding $ 213.8 Less: discounts and unamortized deferred financing fees (1.4) Net amount outstanding $ 215.2 Applicable margins, as defined in agreement U.S. base rate loans 2.50% SOFR 3.50% SOFR adjustment, as defined in agreement 0.11% SOFR floor 0.50% Applicable interest rate, for amounts outstanding 7.28% The Company had other debt outstanding, excluding finance leases, of approximately $169.4 million at June 30, 2026. In addition to the excess availability under the Facility of $200.1 million, the Company had remaining availability of $23.3 million related to other non-U.S. revolving credit agreements at June 30, 2026. The Company believes funds available from cash on hand, the Facility, other available lines of credit and operating cash flows will provide sufficient liquidity to meet its operating needs and commitments during the next twelve months and the foreseeable future thereafter. 28 Table of Contents Contractual Obligations, Contingent Liabilities and Commitments Since December 31, 2025, there have been no significant changes in the total amount of the Company's contractual obligations or commercial commitments, or the timing of cash flows in accordance with those obligations, as reported on page 25 in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Capital Expenditures The following table summarizes actual and planned capital expenditures: Six Months Ended June 30, 2026 Planned for Remainder of 2026 Planned 2026 Total Actual 2025 Lift truck business $ 21.0 $ 22-29 $ 43-50 $ 54.3 Bolzoni 3.5 4-7 7-10 8.2 $ 24.5 $ 26-36 $ 50-60 $ 62.5 Planned expenditures for the remainder of 2026 are primarily for improvements at manufacturing locations and manufacturing equipment, product development and improvements to information technology infrastructure. Management will closely monitor market conditions and may adjust investments levels and timing as market visibility improves. The primary sources of financing for these capital expenditures are expected to be internally generated funds and bank financing. Capital Structure The Company's capital structure is presented below: JUNE 30, 2026 DECEMBER 31, 2025 Change Cash and cash equivalents $ 72.6 $ 123.2 $ (50.6) Other net tangible assets 751.6 775.5 (23.9) Intangible assets 30.3 32.3 (2.0) Goodwill 55.5 55.7 (0.2) Net assets 910.0 986.7 (76.7) Total debt (500.0) (494.3) (5.7) Total temporary and permanent equity $ 410.0 $ 492.4 $ (82.4) Debt to total capitalization 55 % 50 % 5 % OUTLOOK The Company continues to believe the first half of 2026 marked the bottom of the current lift truck market cycle. Lower shipment volumes, higher tariff costs and an unfavorable product mix negatively impacted first-half results. However, bookings have increased for four consecutive quarters and second-quarter revenue, operating results and cash flow improved sequentially. These trends are expected to support improving performance through the remainder of 2026. The Company's updated outlook reflects current assumptions regarding tariffs, geopolitical developments and market conditions. Key tariff-related assumptions include: •U.S. and international tariff policies and rates in effect as of July 2026 serve as the baseline; •continued application of Section 232 tariffs on steel, aluminum, copper, and certain derivative products, including the April 2026 expansion that applies tariffs to the full customs value of covered products rather than only the underlying metal content; •continued application of Section 301 tariffs on Chinese‑origin goods, including lift truck components, with current product‑specific exclusions scheduled to expire in November 2026; •the temporary global import surcharge imposed under Section 122 of the Trade Act of 1974, which replaced tariffs previously imposed under the International Emergency Economic Powers Act (“IEEPA”), is assumed to remain in effect through its statutory expiration; given uncertainty regarding any successor trade measures, no benefit or incremental cost from potential replacement actions has been assumed; •demand forecasts based on available market data and booking trends; and •the successful execution of the Company’s tariff mitigation initiatives, including pricing actions, sourcing adjustments, product-cost reductions, and other cost-management programs. 29 Table of Contents Operational Initiatives and Cost‑Reduction Programs Cost-reduction initiatives launched in 2025 continue to progress as planned. The Company's 2025 restructuring program began generating benefits with approximately half of the expected annualized $40 million to $45 million cost reductions recognized in the first six months of 2026. Manufacturing footprint optimization projects also remain on track. The Company expects future costs and benefits for the projects as shown below: (In millions) Planned for Remainder of 2026 Planned for 2027 Planned for 2028 Expected costs $6-10 $3-6 - Expected annualized income and cash benefits - $15-20 $30-40 Expected savings in 2027 have been revised to reflect lower anticipated production volumes. Once fully implemented and production volumes increase, these actions are expected to generate annualized benefits beginning in 2028. Together, these actions are expected to lower the Company’s cost structure, improve operating leverage, and strengthen financial resilience across the business cycle. Lift Truck Business Industry conditions in the lift truck market generally improved during Q2 2026, although demand varied by region and customer application. The Company gained market share primarily through its expanded product portfolio and increasing customer acceptance of its value and standard product offerings. •Bookings increased 17% from the first quarter and more than doubled from the prior year, marking the fourth consecutive quarter of growth and the strongest booking quarter in three years. Growth was driven primarily by the Americas. •Backlog increased to approximately $1.6 billion and approached five months of production as bookings exceeded shipments during the quarter. The Company expects bookings in 2026 to exceed 2025, supported by healthier industry conditions, market share gains, and broader customer acceptance of its expanded product portfolio. Investments made over the past several years to broaden the product lineup have positioned the Company to address increasing demand for lower-intensity applications and compete across a larger portion of the lift truck market. The Company's standard and value offerings in the 1-3.5 ton, 4-9 ton and Big Truck product lines continue to support volume growth, profitability, and market share gains. However, inflation, tariffs, geopolitical uncertainty, and increased competition continue to affect customer purchasing patterns across regions and end markets. The improvement in bookings has begun to benefit shipments, with a meaningful impact on production and revenue expected to occur by the end 2026. Customer delivery schedules have shifted, resulting in a greater portion of expected shipment growth occurring later in the year. The Company is implementing sourcing and production changes in response to new Section 232 tariffs, including shifting certain sourcing and production activities into the U.S. These actions are expected to reduce tariff costs over time but are delaying a portion of shipment growth while implementation is completed. As a result, production growth is expected to temporarily lag booking growth in the near term despite strong demand. Tariff-related costs on steel, components, and other imported materials remain elevated. Pricing, sourcing, and product-cost actions are expected to provide increasing benefit in the second half of 2026, although the Company does not currently expect to offset all tariff-related expenses. Gross margins are expected to improve gradually from Q2 2026 levels as production volumes increase and pricing and sourcing actions offset a portion of recent tariff costs. The Company's newly introduced low-intensity trucks are expected to contribute favorably to margins while expanding the addressable market and increasing manufacturing scale. However, competitive pricing, particularly in South America and Europe, where competitors continue to compete aggressively with lower-priced value and standard products, is expected to limit the pace of margin improvement. As a result, the Company is maintaining a disciplined approach to balance market share growth and profitability. Lift truck operating results are expected to improve in the second half of 2026 as shipment volumes increase and production levels rise. Improved manufacturing efficiency, pricing actions, and cost reduction initiatives are expected to support earnings 30 Table of Contents growth. Customer delivery timing, production transitions related to tariff mitigation actions, and competitive pricing are expected to moderate the pace of recovery. The largest improvement is expected as shipment volumes increase later in the year. Bolzoni Group Bolzoni is expected to achieve a modest improvement in operating profit in 2026 despite slightly lower revenue. Revenue is expected to decline modestly due to the planned phase-out of certain legacy component sales to the Lift Truck business. However, a continued shift toward higher-margin attachment products and improved plant utilization are expected to support margin expansion and improved profitability. Management remains focused on optimizing product mix and maintaining operational discipline across its global operations. Consolidated The Company expects to have a moderate operating loss for full-year 2026. While improved demand and higher bookings are expected to support increased shipments and revenue, customer delivery schedules and sourcing transitions have delayed the timing of the recovery. The strongest improvement in operating results is expected in the latter part of 2026. The financial discipline established over the past several years continues to strengthen the Company’s ability to navigate changing market conditions while progressing toward its long-term objective of achieving approximately 7% operating profit over the business cycle. Management believes higher production volumes, improved manufacturing efficiency, modular product platforms, and portfolio expansion into value and standard segments remain key drivers supporting achievement of this objective. The Company remains focused on working capital efficiency and cash generation. Working capital initiatives contributed to positive operating cash flow in the second quarter, and management intends to maintain the inventory discipline established during the downturn as production increases. The Company continues to target working capital of approximately 15% of revenue over time. The Company remains committed to strategic investments that support long-term growth and transformation, including modular product development, manufacturing capabilities, and information technology. Capital expenditures for 2026 are expected to range from $50 million to $60 million, with spending dependent on production requirements and the timing of approved projects. Management believes its continued focus on financial discipline, working capital efficiency, and prudent capital allocation positions the Company to improve financial performance while maintaining the flexibility to support future growth. Long-Term Objectives The Company's vision is to transform the way the world moves materials from Port to Home. It strives to do this through its two customer promises: first, to provide optimal customer solutions, and second, to provide exceptional customer care. The Company is focused on executing established strategic initiatives and key projects to transform the Company’s core lift truck business while building new business opportunities in the warehouse lift truck, vehicle automation, energy management and attachment business activities. These complementary growth and profit improvement projects should help the Company fulfill these two promises while achieving long-term revenue and operating profit growth. The Company believes key projects will contribute to an increased and sustainable lift truck and attachment competitive advantage over time. EFFECTS OF FOREIGN CURRENCY The Company operates internationally and enters into transactions denominated in foreign currencies. As a result, the Company is subject to the variability that arises from exchange rate movements. The effects of foreign currency fluctuations on revenues, operating profit and net income (loss) are addressed in the previous discussions of operating results. See also Item 3, "Quantitative and Qualitative Disclosures About Market Risk,” in Part I of this Quarterly Report on Form 10-Q. FORWARD-LOOKING STATEMENTS The statements contained in this Form 10-Q that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or 31 Table of Contents circumstances that arise after the date hereof. Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation: (1) delays in delivery and other supply chain disruptions, or increases in costs as a result of inflation or otherwise, including materials, critical components and transportation costs and shortages, the effects of tariffs on raw materials or sourced products, and labor, or changes in or unavailability of quality suppliers or transporters, including the impacts of the foregoing risks on the Company's liquidity, (2) impacts resulting from sustained or increased trade barriers and restrictions on international trade, including as a result of previously announced, and potentially new, changes to U.S. trade policy and tariffs as well as retaliatory or other tariffs imposed by other countries where the Company does business, (3) the Company's ability to recover previously paid IEEPA tariffs, (4) delays in manufacturing and delivery schedules, (5) reduction in demand for lift trucks, attachments and related parts and service on a global basis, including any cyclical reduction in demand in the lift truck industry, (6) customer acceptance of pricing, (7) customer acceptance of, changes in the costs of, or delays in the development of new products, (8) the ability of the Company and its dealers, suppliers and end-users to access credit, or obtain financing at reasonable rates, or at all, as a result of interest rate volatility and current economic and market conditions, including inflation, (9) unfavorable effects of geopolitical and legislative developments on global operations, including without limitation the entry into new trade agreements and the imposition of tariffs and/or economic sanctions, including the Uyghur Forced Labor Prevention Act (the “UFLPA”) which could impact the Company's imports from China, as well as armed conflicts, including the Iran conflict, the Russia/Ukraine conflict, the Israel and Gaza conflict and/or the conflict in the Red Sea, and their regional effects, (10) exchange rate fluctuations, interest rate volatility and monetary policies and other changes in the regulatory climate in the countries in which the Company operates and/or sells products, (11) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives and restructuring programs, (12) the successful commercialization of products and technology related to the energy solutions program, (13) political and economic uncertainties in the countries where the Company does business, as well as the effects of any withdrawals from such countries, (14) bankruptcy of or loss of major dealers, retail customers or suppliers, (15) introduction of new products by, more favorable product pricing offered by or shorter lead times available through competitors, (16) product liability or other litigation, warranty claims or returns of products, (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation, (18) the ability to attract, retain, and replace workforce and administrative employees, (19) disruptions resulting from natural disasters, public health crises, political crises or other catastrophic events, and (20) the ability to protect the Company’s information technology infrastructure against service interruptions, data corruption, cyber-based attacks or network breaches.