Latest news with #HeliosTechnologies
Yahoo
5 days ago
- Business
- Yahoo
Helios's (NYSE:HLIO) Q2: Strong Sales, Stock Jumps 13.5%
Motion control and electronic systems manufacturer Helios Technologies (NYSE:HLIO) beat Wall Street's revenue expectations in Q2 CY2025, but sales fell by 3.4% year on year to $212.5 million. On top of that, next quarter's revenue guidance ($211.5 million at the midpoint) was surprisingly good and 7.2% above what analysts were expecting. Its non-GAAP profit of $0.59 per share was 17.4% above analysts' consensus estimates. Is now the time to buy Helios? Find out in our full research report. Helios (HLIO) Q2 CY2025 Highlights: Revenue: $212.5 million vs analyst estimates of $201.5 million (3.4% year-on-year decline, 5.5% beat) Adjusted EPS: $0.59 vs analyst estimates of $0.50 (17.4% beat) Adjusted EBITDA: $39.5 million vs analyst estimates of $36.8 million (18.6% margin, 7.3% beat) Revenue Guidance for the full year is $820 million at the midpoint, above analyst estimates of $783.9 million Adjusted EPS guidance for the full year is $2.40 at the midpoint, beating analyst estimates by 24.2% Operating Margin: 10.3%, down from 11.8% in the same quarter last year Free Cash Flow Margin: 14.9%, up from 11.7% in the same quarter last year Organic Revenue fell 4% year on year, in line with the same quarter last year Market Capitalization: $1.22 billion 'The Helios team continued to execute on our financial priorities to drive sequential operating leverage, improve our cash conversion cycle, reduce debt, and strengthen our earnings power to be better positioned to capitalize on improving demand trends. We generated a near record level of cash which further improved our already strong free cash flow conversion. We used that cash to strengthen our balance sheet as we continued to reduce debt and also return capital to shareholders through our consistent dividend and opportunistic share repurchase of our common stock,' said Sean Bagan, President, Chief Executive Officer and Chief Financial Officer of Helios. Company Overview Founded on the principle of treating others as one wants to be treated, Helios (NYSE:HLIO) designs, manufactures, and sells motion and electronic control components for various sectors. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Helios's 8.8% annualized revenue growth over the last five years was decent. Its growth was slightly above the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Helios's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 3.7% over the last two years. We can better understand the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Helios's organic revenue averaged 5.6% year-on-year declines. Because this number is lower than its two-year revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results. This quarter, Helios's revenue fell by 3.4% year on year to $212.5 million but beat Wall Street's estimates by 5.5%. Company management is currently guiding for a 8.7% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 3.7% over the next 12 months. Although this projection implies its newer products and services will fuel better top-line performance, it is still below the sector average. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating Margin Helios has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 12.7%. This result isn't too surprising as its gross margin gives it a favorable starting point. Analyzing the trend in its profitability, Helios's operating margin decreased by 5.5 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. In Q2, Helios generated an operating margin profit margin of 10.3%, down 1.5 percentage points year on year. Since Helios's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for Helios, its EPS declined by 2.9% annually over the last five years while its revenue grew by 8.8%. This tells us the company became less profitable on a per-share basis as it expanded. We can take a deeper look into Helios's earnings to better understand the drivers of its performance. As we mentioned earlier, Helios's operating margin declined by 5.5 percentage points over the last five years. Its share count also grew by 3.8%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Helios, its two-year annual EPS declines of 22.1% show it's continued to underperform. These results were bad no matter how you slice the data. In Q2, Helios reported adjusted EPS at $0.59, down from $0.64 in the same quarter last year. Despite falling year on year, this print easily cleared analysts' estimates. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. Key Takeaways from Helios's Q2 Results We were impressed by how significantly Helios blew past analysts' organic revenue expectations this quarter. We were also glad its EPS guidance for next quarter trumped Wall Street's estimates. Zooming out, we think this quarter featured some important positives. The stock traded up 13.5% to $41.80 immediately following the results. Helios had an encouraging quarter, but one earnings result doesn't necessarily make the stock a buy. Let's see if this is a good investment. When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
5 days ago
- Business
- Yahoo
Helios Technologies Announces Definitive Agreement to Sell its Australian-Based Hydraulic Fluid Power Solutions and Service Provider Business
SARASOTA, Fla., August 04, 2025--(BUSINESS WIRE)--Helios Technologies, Inc. (NYSE: HLIO) ("Helios" or the "Company"), a global leader in highly engineered motion control and electronic controls technology, announced today that it has executed a definitive agreement for the sale of Custom Fluidpower ("CFP") to Questas Group ("Questas"). The all-cash transaction valued at approximately $83 million AUD (~$54 million USD) is subject to final working capital and other customary closing adjustments. The transaction value represents an increase of approximately $48 million AUD above the acquisition price paid for CFP by the Company in August 2018. Questas, is headquartered in Sydney, Australia, and has approximately 850 employees across 37 locations. Helios will also enter into a long-term exclusive distribution agreement with Questas, subject to annual growth targets tied to market conditions, assuring the continuity of Sun Hydraulics' strategic position in the Australian hydraulics market through CFP's extensive engineering, distribution, and service network. "This planned divestiture of CFP demonstrates our commitment to value creation as we refine our operating model, instilling financial discipline and driving improved returns on invested capital," said Sean Bagan, President, Chief Executive Officer, and Chief Financial Officer of Helios. "Since Helios' purchase of the business in 2018, CFP's sales have expanded every year growing to $92 million AUD ($61 million USD) in 2024 and impressively earnings have more than doubled during that same period. As we assess our business models, we recognize that its position as a leading fluid power distributor and service provider aligns more effectively with our value-added distribution customer base. We are excited that CFP will remain an ongoing customer and continue to build upon the long-standing relationship with Sun Hydraulics. I would like to thank the employees of CFP and recognize them for their dedication and successful efforts in growing the business. While the divestiture will reduce Helios' sales and earnings run rates, it will improve margin rates within our Hydraulics segment and at a consolidated level." "We are delighted to welcome CFP into the Questas group of companies. The CFP team brings deep expertise in system design, custom manifolds, cartridge valves, and hydraulic-release brakes—solutions we previously sourced externally. CFP strengthens our value proposition to customers, significantly advancing our ability to serve the full hydraulics lifecycle," said Mark Taylor, Group Chief Executive Officer of Questas Group. "Questas has extensive experience in the Australian hydraulics market and carve-out expertise, which we believe will unlock new potential for the CFP business. This transaction allows us to focus on our core manufacturing capabilities in the APAC region while leveraging CFP as our key distribution partner to service the Australian market. We remain committed to our 'in the region for the region' strategy and believe the structure going forward positions us to better meet customer needs in Australia and across the entire APAC region. We also believe the move will help provide broader growth opportunities for the CFP team and position CFP to deliver enhanced value for its customers with Questas' backing," Mr. Bagan concluded. Helios expects to use the net proceeds from the transaction consistent with its stated capital allocation priorities, including debt repayment, disciplined organic investment into the business, and return of capital to shareholders. Helios will begin reporting CFP as held for sale in the Company's consolidated financial statements for the second quarter of 2025 through the closing date. The Company expects the transaction to close in the next 60 to 90 days, subject to the satisfaction of customary closing conditions. Squire Patton Boggs is serving as legal counsel to the Company in connection with the sale of CFP. About Questas Group Headquartered in Sydney, NSW, Questas Group is a proudly Australian-owned and trusted partner for hydraulic, pump, and engine solutions. With approximately 850 staff across 37 locations Australia-wide, we've been a driving force in the industry for over 30 years, serving the mining, construction, agricultural, oil and gas, and general industrial sectors. For more information please visit: About Helios Technologies Helios Technologies is a global leader in highly engineered motion control and electronic controls technology for diverse end markets, including construction, material handling, agriculture, energy, recreational vehicles, marine and health and wellness. Helios sells its products to customers in over 90 countries around the world. Its strategy for growth is to be the leading provider in niche markets, with premier products and solutions through innovative product development and acquisition. The Company has paid a cash dividend to its shareholders every quarter since becoming a public company in 1997. For more information please visit: and follow us on LinkedIn. FORWARD-LOOKING INFORMATION This news release contains "forward‐looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this release, including statements about the transaction and our strategic plans as well as the financial impact to the Company resulting therefrom, and our ability to close the transaction and the timing of the closing, are subject to risks that could cause actual results to differ materially from those suggested by the statements. These risks include, but are not limited to, the ability to successfully complete the divestiture of CFP on a timely basis, including receipt of required approvals and satisfaction of other conditions, the risk that the gain on sale of the assets could ultimately be less than we currently expect, and the ability of the Company to use the proceeds of the transaction consistent with its stated capital allocation priorities. Further information concerning these and other risks is included in Helios' filings with the SEC, including its Form 10-K for the year ended December 28, 2024, and subsequent Form 10-Q filings. Helios disclaims any obligation to update any forward-looking statements except as required by law. View source version on Contacts Investor and Media contacts: Tania AlmondVice President, Investor Relations and Corporate Communication(941) Deborah PawlowskiAlliance Advisors LLC(716) 843-3908dpawlowski@ Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
Helios (HLIO) Reports Earnings Tomorrow: What To Expect
Motion control and electronic systems manufacturer Helios Technologies (NYSE:HLIO) will be reporting results this Monday after the bell. Here's what to look for. Helios beat analysts' revenue expectations by 3.8% last quarter, reporting revenues of $195.5 million, down 7.8% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts' organic revenue estimates and an impressive beat of analysts' EBITDA estimates. Is Helios a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Helios's revenue to decline 8.4% year on year to $201.5 million, a further deceleration from the 3.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Helios has missed Wall Street's revenue estimates twice over the last two years. Looking at Helios's peers in the gas and liquid handling segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Gorman-Rupp delivered year-on-year revenue growth of 5.6%, beating analysts' expectations by 2.5%, and Standex reported revenues up 23.2%, topping estimates by 3.5%. Gorman-Rupp traded up 9.9% following the results while Standex was also up 9.8%. Read our full analysis of Gorman-Rupp's results here and Standex's results here. Investors in the gas and liquid handling segment have had steady hands going into earnings, with share prices flat over the last month. Helios's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $45.20 (compared to the current share price of $35.43). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
Business Wire
28-07-2025
- Automotive
- Business Wire
Helios Technologies Launches Atlas Connect Gateway, a Rugged and Smart Connectivity Solution for Intelligent Equipment
SARASOTA, Fla.--(BUSINESS WIRE)-- Helios Technologies, Inc. (NYSE: HLIO) ('Helios' or the 'Company'), a global leader in highly engineered motion control and electronic controls technology, is excited to announce the launch of the Atlas Connect Gateway, an advanced connectivity solution developed by Enovation Controls, part of Helios' Electronics segment. Engineered to meet the rigorous demands of modern applications across a wide range of industries, this new offering delivers the next generation of secure connectivity, remote diagnostics, and real-time system intelligence. With seamless integration into Helios' broader ecosystem, Atlas Connect Gateway is purpose-built to support original equipment manufacturers (OEM) that require both performance and serviceability, allowing them to connect different devices and systems which ordinarily may not be compatible. 'The launch of the Atlas Connect Gateway marks a major step forward in Helios Technologies' vision for intelligent machine connectivity,' commented Sean Bagan, President, Chief Executive Officer and Chief Financial Officer of Helios. 'We're proud to deliver this rugged, future-ready solution to customers around the world, helping them stay connected, informed, and in control. This is another strong demonstration of our teams' ability to introduce innovative products that deliver significant value to customers in diverse end markets.' The Atlas Connect Gateway gives equipment manufacturers and operators greater insight and control by allowing them to monitor critical data, send remote commands, and update software on equipment in the field without needing to be on site. Its powerful processing capabilities enable fast, reliable performance even in the field, making it easier to keep machines running smoothly and efficiently. 'By pairing the Atlas Connect Gateway with Cygnus Reach, Helios' patented remote troubleshooting platform—we're delivering a powerful new advantage to OEMs by enabling remote support capabilities,' said Billy Aldridge, Senior Vice President, Managing Director – Electronics Segment. 'For organizations operating customer support centers or field service teams, this integrated solution streamlines diagnostics, reduces downtime, and elevates the overall service experience. It's a major step forward in connecting people, machines, and data in smarter, more efficient ways.' Atlas Connect Gateway can be wired into any CAN enabled system in a matter of minutes. Using Cygnus Reach you can monitor the CAN bus, take CAN recordings, and effortlessly share data, all using your cellular mobile device. Built to thrive in demanding field conditions, the Atlas Connect Gateway is IP67-rated and engineered for durability in extreme environments. It operates reliably in temperatures ranging from -4°F to 158°F (-20°C to 70°C) and can be safely stored between -13°F and 167°F (-25°C to 75°C). Its wide operating voltage of 6–36 VDC makes it suitable for use across many types of equipment. This innovative solution will be available in August 2025, with feature demonstrations scheduled in the Enovation Controls' booth at both The Utility Expo and IBEX later this year. These premier industry events will give attendees an opportunity to experience its capabilities up close and explore how it enables smarter equipment in even the toughest environments. About Enovation Controls Enovation Controls is a fast-growing and innovative manufacturer of electronic controls and displays for diverse markets. As an international leader in fully tailored solutions, Enovation Controls offers a broad range of displays, controls, and instrumentation products for various applications. With an internationally diverse team, we serve customers around the world through our global sales, manufacturing, and engineering operations. Enovation Controls partners directly with OEMs and supports a worldwide network of authorized distributors and system integrators. Visit us at and follow us on LinkedIn. About Helios Technologies Helios Technologies is a global leader in highly engineered motion control and electronic controls technology for diverse end markets, including construction, material handling, agriculture, energy, recreational vehicles, marine and health and wellness. Helios sells its products to customers in over 90 countries around the world. Its strategy for growth is to be the leading provider in niche markets, with premier products and solutions through innovative product development and acquisition. The Company has paid a cash dividend to its shareholders every quarter since becoming a public company in 1997. For more information, please visit: and follow us on LinkedIn.
Yahoo
21-07-2025
- Business
- Yahoo
Helios Technologies Schedules Second Quarter 2025 Financial Results Release and Conference Call
SARASOTA, Fla., July 21, 2025--(BUSINESS WIRE)--Helios Technologies (NYSE: HLIO) ("Helios" or the "Company"), a global leader in highly engineered motion control and electronic control technologies, announced today that it will release its second quarter 2025 financial results after the market closes on Monday, August 4, 2025. Sean Bagan, President, Chief Executive Officer and Chief Financial Officer, will host a conference call and webcast the next morning to review the Company's financial and operating results and discuss its outlook. Second Quarter 2025 Financial Results Conference Call: Tuesday, August 5, 20259:00 a.m. Eastern TimePhone: (201) 689-8573Internet webcast and accompanying slide presentation: A telephonic replay will be available from approximately 1:00 p.m. ET on the day of the call through Tuesday, August 19, 2025. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13754274. The webcast replay will be available in the investor relations section of the Company's website at where a transcript will also be posted once available. About Helios TechnologiesHelios Technologies is a global leader in highly engineered motion control and electronic controls technology for diverse end markets, including construction, material handling, agriculture, energy, recreational vehicles, marine and health and wellness. Helios sells its products to customers in over 90 countries around the world. Its strategy for growth is to be the leading provider in niche markets, with premier products and solutions through innovative product development and acquisitions. The Company has paid a cash dividend to its shareholders every quarter since becoming a public company in 1997. For more information please visit: and follow us on LinkedIn. View source version on Contacts For more information, contact: Tania AlmondVice President, Investor Relations and Corporate Communication(941) Deborah PawlowskiAlliance Advisors LLC(716) 843-3908dpawlowski@ Sign in to access your portfolio
