Hyster-Yale, Inc. announced a strategic business realignment of its Nuvera fuel cell business, integrating it into the Hyster-Yale Materials Handling (HYMH) segment. This move aims to increase near-term profits and establish an integrated energy solutions program at Nuvera's Billerica facility.
The new energy solutions program will focus on the development, manufacturing, and commercialization of lithium-ion battery modules, chargers, battery management systems, and energy management activities. It will also include a mobile, modular, and scalable hybrid electric charging platform, with a HydroCharge™ variant utilizing Nuvera's fuel cell technology.
The fuel cell program itself will be significantly downsized, concentrating on the final development of its 125kW fuel cell for specific port equipment and larger HydroCharge™ applications. This decision reflects the company's conclusion that the current fuel cell business would not achieve profitability objectives within an acceptable timeframe due to hydrogen supply constraints and a changed political environment.
This realignment is expected to generate direct annualized cost reductions of $15 million to $20 million starting in the second half of 2025. Additionally, $10 million to $15 million of Nuvera's costs will be absorbed by the Lift Truck business to accelerate battery and mobile charging product development. The company anticipates incurring approximately $15 million to $18 million in employee severance and impairment costs in the second quarter of 2025.
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