HLIO 8-K
Helios Technologies, Inc. (HLIO)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 6, 2025, Helios Technologies (the “Company”), issued the press release attached hereto as Exhibit 99.1 announcing its financial results for the first fiscal quarter of 2025.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 |
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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HELIOS TECHNOLOGIES, INC. |
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Date: |
May 6, 2025 |
By: |
/s/ Sean Bagan |
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Sean Bagan |
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Exhibit 99.1 |
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NEWS RELEASE |
FOR IMMEDIATE RELEASE |
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Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
SARASOTA, FL, May 6, 2025 — Helios Technologies, Inc. (NYSE: HLIO) (“Helios” or the “Company”), a global leader in highly engineered motion control and electronic controls technology, today reported financial results for the first quarter ended March 29, 2025.
“Our first quarter results demonstrated a better-than-expected start to the year and further validates our continued execution of our financial plans to drive operating leverage, improve our cash conversion cycle, reduce debt, and strengthen our earnings power. Thanks to the global Helios team for staying focused on our controllables, our Q1 results exceeded our plan and further strengthened our balance sheet. We achieved a 23% increase in our operating income in the quarter on $16 million in incremental sales over the fourth quarter of last year, which shows the incremental operating leverage from increased volume. Through this volatile macro environment, we are pulling the levers we believe position us well for the long-term. We remain focused on investing in innovation and bringing new products to market. Our 'in the region for the region' manufacturing strategy is paying off as we navigate the tariff landscape and work to maximize what we produce locally. Finally, we have also been examining our product portfolio with a broader look at our assets while streamlining the organization in some areas, and allocating resources where they can be better utilized to grow our go-to-market initiatives this year,” said Sean Bagan, President, Chief Executive Officer and Chief Financial Officer of Helios.
Helios Technologies | 7456 16th St East | Sarasota, FL 34243 | 941-362-1200
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 2 of 17 |
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First Quarter 2025 Consolidated Results
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For the Three Months Ended |
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($ in millions, except per share data) |
March 29, |
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March 30, |
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Change |
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% Change |
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||||
Net sales |
$ |
195.5 |
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|
$ |
212.0 |
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|
$ |
(16.5 |
) |
|
|
(8 |
%) |
Gross profit |
$ |
59.9 |
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|
$ |
67.2 |
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|
$ |
(7.3 |
) |
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(11 |
%) |
Gross margin |
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30.6 |
% |
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31.7 |
% |
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(110 |
) |
bps |
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Operating income |
$ |
17.0 |
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$ |
20.3 |
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|
$ |
(3.3 |
) |
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(16 |
%) |
Operating margin |
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8.7 |
% |
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9.6 |
% |
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(90 |
) |
bps |
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Non-GAAP adjusted operating margin* |
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13.4 |
% |
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14.5 |
% |
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(110 |
) |
bps |
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Net income |
$ |
7.3 |
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|
$ |
9.2 |
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|
$ |
(1.9 |
) |
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(21 |
%) |
Diluted EPS |
$ |
0.22 |
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|
$ |
0.28 |
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|
$ |
(0.06 |
) |
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(21 |
%) |
Non-GAAP net income* |
$ |
14.8 |
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|
$ |
17.6 |
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$ |
(2.8 |
) |
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(16 |
%) |
Diluted Non-GAAP EPS* |
$ |
0.44 |
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$ |
0.53 |
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$ |
(0.09 |
) |
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(17 |
%) |
Adjusted EBITDA* |
$ |
33.8 |
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$ |
38.6 |
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$ |
(4.8 |
) |
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(12 |
%) |
Adjusted EBITDA margin* |
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17.3 |
% |
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18.2 |
% |
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(90 |
) |
bps |
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* Adjusted numbers are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Helios believes that providing these specific Non-GAAP figures are important for investors and other readers of Helios financial statements, as they are used as analytical indicators by Helios management to better understand operating performance. These Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for GAAP. Please carefully review the attached Non-GAAP reconciliations to the most directly comparable GAAP measures and the related additional information provided throughout. Because these metrics are Non-GAAP measures and are thus susceptible to varying calculations, these figures, as presented, may not be directly comparable to other similarly titled measures used by other companies.
Sales
Profits and margins
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 3 of 17 |
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Non-operating items
Net income, diluted earnings per share (“EPS”), diluted Non-GAAP EPS, and adjusted EBITDA margin
Hydraulics Segment Review
(Refer to sales by geographic region and segment data in accompanying tables)
Hydraulics |
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For the Three Months Ended |
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($ in millions) |
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March 29, 2025 |
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March 30, 2024 |
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Change |
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% Change |
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Net Sales |
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Americas |
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$ |
49.9 |
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$ |
55.8 |
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$ |
(5.9 |
) |
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(11 |
%) |
EMEA |
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37.9 |
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45.5 |
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(7.6 |
) |
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(17 |
%) |
APAC |
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38.6 |
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41.1 |
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(2.5 |
) |
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(6 |
%) |
Total Segment Sales |
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$ |
126.4 |
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$ |
142.4 |
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$ |
(16.0 |
) |
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(11 |
%) |
Gross Profit |
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$ |
37.4 |
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$ |
44.5 |
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$ |
(7.1 |
) |
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(16 |
%) |
Gross Margin |
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29.6 |
% |
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31.3 |
% |
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(170 |
) |
bps |
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SEA Expenses |
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$ |
20.0 |
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$ |
22.7 |
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$ |
(2.7 |
) |
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(12 |
%) |
Operating Income |
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$ |
17.4 |
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$ |
21.8 |
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$ |
(4.4 |
) |
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(20 |
%) |
Operating Margin |
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13.8 |
% |
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15.3 |
% |
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(150 |
) |
bps |
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First Quarter 2025 Hydraulics Segment Review
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 4 of 17 |
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Electronics Segment Review
(Refer to sales by geographic region and segment data in accompanying tables)
Electronics |
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For the Three Months Ended |
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($ in millions) |
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March 29, 2025 |
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March 30, 2024 |
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Change |
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% Change |
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Net Sales |
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Americas |
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$ |
56.7 |
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$ |
58.1 |
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$ |
(1.4 |
) |
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(2 |
%) |
EMEA |
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6.2 |
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6.5 |
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(0.3 |
) |
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(5 |
%) |
APAC |
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6.2 |
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5.0 |
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1.2 |
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24 |
% |
Total Segment Sales |
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$ |
69.1 |
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$ |
69.6 |
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$ |
(0.5 |
) |
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(1 |
%) |
Gross Profit |
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$ |
22.5 |
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$ |
22.7 |
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$ |
(0.2 |
) |
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(1 |
%) |
Gross Margin |
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32.6 |
% |
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32.6 |
% |
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0 |
|
bps |
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SEA Expenses |
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$ |
14.5 |
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$ |
15.6 |
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$ |
(1.1 |
) |
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(7 |
%) |
Operating Income |
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$ |
8.0 |
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|
$ |
7.1 |
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$ |
0.9 |
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|
13 |
% |
Operating Margin |
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|
11.6 |
% |
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|
10.2 |
% |
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|
140 |
|
bps |
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First Quarter 2025 Electronics Segment Review
Strengthening Cash Flow, Balance Sheet and Financial Flexibility
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 5 of 17 |
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Establishing Second Quarter 2025 Outlook1
Mr. Bagan continued, “We knew 2025 would present challenges from the various end market cycles and worked to factor a variety of scenarios into our initial full year outlook. We acknowledge that relative to when we first established our full year outlook, tariffs have created more uncertainty in the second half of 2025. We see a variety of potential outcomes depending upon final tariff rulings. We now have a third of the year already in the books with good visibility through the balance of the second quarter. While markets remain persistently weak, we are starting to see some positive trends forming in the order intake over the last several months. We have been selective with our capital expenditures and continue to be disciplined with cost control measures. These factors provide us a level of confidence in our next quarter projections. Markets could quickly shift and we are staying nimble and very close to our customers as we navigate through this unprecedented tariff environment together.”
For the second quarter of 2025 we expect:
Webcast
The Company will host a conference call and webcast tomorrow, Wednesday, May 7, 2025, at 9:00 a.m. Eastern Time to review its financial and operating results and discuss its outlook. A question-and-answer session will follow. The conference call can be accessed by calling (201) 689-8573. The audio webcast will be available at www.heliostechnologies.com.
A telephonic replay will be available from approximately 1:00 p.m. ET on the day of the call through Wednesday, May 21, 2025. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13752555. The webcast replay will be available in the investor relations section of the Company’s website at www.heliostechnologies.com.
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 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: www.heliostechnologies.com and follow us on LinkedIn.
1 Reference "First Quarter 2025 Earnings Presentation" Slides for details and assumptions
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 6 of 17 |
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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 involve risks and uncertainties, and actual results may differ materially from those expressed or implied by such statements. They include statements regarding current expectations, estimates, forecasts, projections, our beliefs, and assumptions made by Helios Technologies, Inc. (“Helios,” the “Company,” "we," "us," or "our"), its directors or its officers about the Company and the industry in which it operates, and assumptions made by management, and include among other items, (i) the Company’s strategies regarding growth, including its intention to develop new products and undertake acquisitions; (ii) the effectiveness of creating the Centers of Excellence; (iii) our financial plans; (iv) trends affecting the Company’s financial condition or results of operations; (v) the Company’s ability to continue to control costs and to meet its liquidity and other financing needs; (vi) the Company’s ability to declare and pay dividends; and (vii) the Company’s ability to respond to changes in customer demand domestically and internationally, including as a result of the cyclical nature of our business. In addition, we may make other written or oral statements, which constitute forward-looking statements, from time to time. Words such as “may,” “expects,” “projects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words, and similar expressions are intended to identify such forward-looking statements. Similarly, statements that describe our future plans, objectives or goals also are forward-looking statements. These statements are not guarantees of future performance and are subject to a number of risks and uncertainties. Our actual results may differ materially from what is expressed or forecasted in such forward-looking statements, and undue reliance should not be placed on such statements. All forward-looking statements are made as of the date hereof, and we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Factors that could cause actual results to differ materially from what is expressed or forecasted in such forward‐looking statements include, but are not limited to, (i) the Company’s ability to respond to global economic trends and changes in customer demand domestically and internationally, including as a result of standardization and the cyclical nature of our business, which can adversely affect the demand for capital goods; (ii) supply chain disruption and the potential inability to procure goods; (iii) conditions in the capital markets, including the interest rate environment and the continued availability of capital on terms acceptable to us, or at all; (iv) global and regional economic and political conditions, including the recently announced and potentially contemplated tariffs by the new U.S. presidential administration, inflation, exchange rates, changes in the cost or availability of energy, transportation, the availability of other necessary supplies and services and recession; (v) changes in the competitive marketplace that could affect the Company’s revenue and/or cost bases, such as increased competition, lack of qualified engineering, marketing, management or other personnel, and increased labor and raw materials costs; (vi) risks related to health epidemics, pandemics and similar outbreaks, which may among other things, adversely affect our supply chain, material costs, and work force and may have material adverse effects on our business, financial position, results of operations and/or cash flows; (vii) risks related to our international operations, including potential impacts from the ongoing geopolitical conflicts in Ukraine and the Middle East; (viii) risks relating to our recent and ongoing management transition; (ix) new product introductions, product sales mix and the geographic mix of sales nationally and internationally; and (x) stakeholders, including regulators, views regarding our environmental, social and governance goals and initiatives, and the impact of factors outside of our control on such goals and initiatives. Further information relating to additional factors that could cause actual results to differ from those anticipated is included but not limited to information under the heading Item 1. “Business” and Item 1A. “Risk Factors” in the Company’s Form 10-K for the year ended December 28, 2024 filed with the Securities and Exchange Commission (SEC) on February 25, 2025 as well as any subsequent filings with the SEC.
Helios has presented non-GAAP measures including adjusted operating income, adjusted operating margin, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, net debt-to-adjusted EBITDA, adjusted net income, and
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 7 of 17 |
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adjusted net income per diluted share and sales in constant currency. Helios believes that providing these specific Non-GAAP figures are important for investors and other readers of Helios financial statements, as they are used as analytical indicators by Helios management to better understand operating performance. The determination of the amounts that are excluded from these Non-GAAP measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income recognized in a given period. You should not consider the inclusion of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. Please carefully review the Non-GAAP reconciliations to the most directly comparable GAAP measures and the related additional information provided throughout. Because these metrics are Non-GAAP measures and are thus susceptible to varying calculations, these figures, as presented, may not be directly comparable to other similarly titled measures used by other companies.
This news release also presents forward-looking statements regarding Non-GAAP measures, including adjusted EBITDA, adjusted EBITDA margin and adjusted net income per diluted share. The Company is unable to present a quantitative reconciliation of these forward-looking Non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort or expense. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company’s 2025 financial results. These Non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with quarter-end and year-end adjustments. Any variation between the Company’s actual results and preliminary financial data set forth above may be material.
For more information, contact:
Tania Almond
Vice President, Investor Relations and Corporate Communication
(941) 362-1333
Deborah Pawlowski
Alliance Advisors IR
(716) 843-3908
Financial Tables Follow:
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 8 of 17 |
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HELIOS TECHNOLOGIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
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For the Three Months Ended |
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March 29, |
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March 30, |
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2025 |
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2024 |
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% Change |
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Net sales |
$ |
195.5 |
|
|
$ |
212.0 |
|
|
|
(8 |
)% |
Cost of sales |
|
135.6 |
|
|
|
144.8 |
|
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|
(6 |
)% |
Gross profit |
|
59.9 |
|
|
|
67.2 |
|
|
|
(11 |
)% |
Gross margin |
|
30.6 |
% |
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|
31.7 |
% |
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Selling, engineering and administrative expenses |
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34.6 |
|
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39.0 |
|
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|
(11 |
)% |
Amortization of intangible assets |
|
8.3 |
|
|
|
7.9 |
|
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|
5 |
% |
Operating income |
|
17.0 |
|
|
|
20.3 |
|
|
|
(16 |
)% |
Operating margin |
|
8.7 |
% |
|
|
9.6 |
% |
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Interest expense, net |
|
7.4 |
|
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|
8.2 |
|
|
|
(10 |
)% |
Foreign currency transaction loss, net |
|
0.1 |
|
|
|
0.3 |
|
|
|
(67 |
)% |
Other non-operating (income) expense, net |
|
- |
|
|
|
(0.2 |
) |
|
|
(100 |
)% |
Income before income taxes |
|
9.5 |
|
|
|
12.0 |
|
|
|
(21 |
)% |
Income tax provision |
|
2.2 |
|
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|
2.8 |
|
|
|
(21 |
)% |
Net income |
$ |
7.3 |
|
|
$ |
9.2 |
|
|
|
(21 |
)% |
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|
|
|
|
|
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|||
Net income per share: |
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|
|
|
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|||
Basic |
$ |
0.22 |
|
|
$ |
0.28 |
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(21 |
)% |
Diluted |
$ |
0.22 |
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|
$ |
0.28 |
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(21 |
)% |
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|
|||
Weighted average shares outstanding: |
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|
|
|
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|
|||
Basic |
|
33.3 |
|
|
|
33.1 |
|
|
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Diluted |
|
33.4 |
|
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|
33.3 |
|
|
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|||
Dividends declared per share |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
|
|
|
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 9 of 17 |
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HELIOS TECHNOLOGIES
CONSOLIDATED BALANCE SHEETS
(In millions, except per share data)
|
March 29, 2025 |
|
|
December 28, 2024 |
|
||
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(Unaudited) |
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|
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Assets |
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|
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Current assets: |
|
|
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||
Cash and cash equivalents |
$ |
45.9 |
|
|
$ |
44.1 |
|
Accounts receivable, net of allowance for |
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||
credit losses of $2.3 and $2.4 |
|
121.1 |
|
|
|
104.6 |
|
Inventories, net |
|
189.7 |
|
|
|
190.1 |
|
Income taxes receivable |
|
15.1 |
|
|
|
15.1 |
|
Other current assets |
|
24.2 |
|
|
|
30.3 |
|
Total current assets |
|
396.0 |
|
|
|
384.2 |
|
Property, plant and equipment, net |
|
216.8 |
|
|
|
216.4 |
|
Deferred income taxes |
|
2.1 |
|
|
|
2.1 |
|
Goodwill |
|
508.4 |
|
|
|
498.9 |
|
Other intangible assets, net |
|
382.0 |
|
|
|
384.0 |
|
Other assets |
|
21.0 |
|
|
|
19.8 |
|
Total assets |
$ |
1,526.3 |
|
|
$ |
1,505.4 |
|
Liabilities and shareholders’ equity |
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
||
Accounts payable |
$ |
62.0 |
|
|
$ |
56.7 |
|
Accrued compensation and benefits |
|
18.5 |
|
|
|
24.6 |
|
Other accrued expenses and current liabilities |
|
28.1 |
|
|
|
25.8 |
|
Current portion of long-term non-revolving debt, net |
|
16.1 |
|
|
|
16.0 |
|
Dividends payable |
|
3.0 |
|
|
|
3.0 |
|
Income taxes payable |
|
15.0 |
|
|
|
12.5 |
|
Total current liabilities |
|
142.7 |
|
|
|
138.6 |
|
Revolving lines of credit |
|
147.5 |
|
|
|
147.3 |
|
Long-term non-revolving debt, net |
|
279.2 |
|
|
|
283.2 |
|
Deferred income taxes |
|
45.7 |
|
|
|
41.1 |
|
Other noncurrent liabilities |
|
30.0 |
|
|
|
30.8 |
|
Total liabilities |
|
645.1 |
|
|
|
641.0 |
|
Commitments and contingencies |
|
|
|
|
|
||
Shareholders’ equity: |
|
|
|
|
|
||
Preferred stock, par value $0.001, 2.0 shares authorized, |
|
|
|
|
|
||
no shares issued or outstanding |
|
- |
|
|
|
- |
|
Common stock, par value $0.001, 100.0 shares authorized, |
|
|
|
|
|
||
33.3 and 33.3 shares issued and outstanding |
|
- |
|
|
|
- |
|
Capital in excess of par value |
|
438.8 |
|
|
|
437.4 |
|
Retained earnings |
|
506.9 |
|
|
|
502.6 |
|
Accumulated other comprehensive loss |
|
(64.5 |
) |
|
|
(75.6 |
) |
Total shareholders’ equity |
|
881.2 |
|
|
|
864.4 |
|
Total liabilities and shareholders’ equity |
$ |
1,526.3 |
|
|
$ |
1,505.4 |
|
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 10 of 17 |
|
HELIOS TECHNOLOGIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
|
For the Three Months Ended |
|
|||||
|
March 29, 2025 |
|
|
March 30, 2024 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
||
Net income |
$ |
7.3 |
|
|
$ |
9.2 |
|
Adjustments to reconcile net income to |
|
|
|
|
|
||
net cash provided by operating activities: |
|
|
|
|
|
||
Depreciation and amortization |
|
16.0 |
|
|
|
15.7 |
|
Stock-based compensation expense |
|
1.5 |
|
|
|
4.2 |
|
Amortization of debt issuance costs |
|
0.2 |
|
|
|
0.1 |
|
Benefit for deferred income taxes |
|
(0.7 |
) |
|
|
(0.9 |
) |
Other, net |
|
1.3 |
|
|
|
0.3 |
|
(Increase) decrease in, net of acquisitions: |
|
|
|
|
|
||
Accounts receivable |
|
(15.3 |
) |
|
|
(13.1 |
) |
Inventories |
|
1.1 |
|
|
|
(0.7 |
) |
Income taxes receivable |
|
0.3 |
|
|
|
1.6 |
|
Other current assets |
|
6.3 |
|
|
|
0.6 |
|
Other assets |
|
(0.1 |
) |
|
|
1.1 |
|
Increase (decrease) in, net of acquisitions: |
|
|
|
|
|
||
Accounts payable |
|
4.8 |
|
|
|
(1.8 |
) |
Accrued expenses and other liabilities |
|
(5.2 |
) |
|
|
(1.1 |
) |
Income taxes payable |
|
2.2 |
|
|
|
3.3 |
|
Other noncurrent liabilities |
|
(0.7 |
) |
|
|
(0.7 |
) |
Net cash provided by operating activities |
|
19.0 |
|
|
|
17.8 |
|
Cash flows from investing activities: |
|
|
|
|
|
||
Capital expenditures |
|
(6.1 |
) |
|
|
(5.5 |
) |
Software development costs |
|
(0.7 |
) |
|
|
(0.8 |
) |
Net cash used in investing activities |
|
(6.8 |
) |
|
|
(6.3 |
) |
Cash flows from financing activities: |
|
|
|
|
|
||
Borrowings on revolving credit facilities |
|
14.3 |
|
|
|
21.8 |
|
Repayment of borrowings on revolving credit facilities |
|
(18.1 |
) |
|
|
(17.3 |
) |
Repayment of borrowings on long-term non-revolving debt |
|
(4.0 |
) |
|
|
(5.2 |
) |
Proceeds from stock issued |
|
0.5 |
|
|
|
0.5 |
|
Dividends to shareholders |
|
(3.0 |
) |
|
|
(3.0 |
) |
Payment of employee tax withholding on equity award vestings |
|
(0.5 |
) |
|
|
(1.8 |
) |
Other financing activities |
|
(0.5 |
) |
|
|
(0.4 |
) |
Net cash used in financing activities |
|
(11.3 |
) |
|
|
(5.4 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
0.9 |
|
|
|
(1.2 |
) |
Net increase in cash and cash equivalents |
|
1.8 |
|
|
|
4.9 |
|
Cash and cash equivalents, beginning of period |
|
44.1 |
|
|
|
32.4 |
|
Cash and cash equivalents, end of period |
$ |
45.9 |
|
|
$ |
37.3 |
|
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 11 of 17 |
|
HELIOS TECHNOLOGIES
SEGMENT DATA
(In millions)
(Unaudited)
|
For the Three Months Ended |
|
|||||
|
March 29, |
|
|
March 30, |
|
||
Net Sales: |
|
|
|
|
|
||
Hydraulics |
$ |
126.4 |
|
|
$ |
142.4 |
|
Electronics |
|
69.1 |
|
|
|
69.6 |
|
Consolidated |
$ |
195.5 |
|
|
$ |
212.0 |
|
|
|
|
|
|
|
||
Gross profit and margin: |
|
|
|
|
|
||
Hydraulics |
$ |
37.4 |
|
|
$ |
44.5 |
|
|
|
29.6 |
% |
|
|
31.3 |
% |
Electronics |
|
22.5 |
|
|
|
22.7 |
|
|
|
32.6 |
% |
|
|
32.6 |
% |
Consolidated |
$ |
59.9 |
|
|
$ |
67.2 |
|
|
|
30.6 |
% |
|
|
31.7 |
% |
|
|
|
|
|
|
||
Operating income (loss) and margin: |
|
|
|
|
|
||
Hydraulics |
$ |
17.4 |
|
|
$ |
21.8 |
|
|
|
13.8 |
% |
|
|
15.3 |
% |
Electronics |
|
8.0 |
|
|
|
7.1 |
|
|
|
11.6 |
% |
|
|
10.2 |
% |
Corporate and other |
|
(8.4 |
) |
|
|
(8.6 |
) |
Consolidated |
$ |
17.0 |
|
|
$ |
20.3 |
|
|
|
8.7 |
% |
|
|
9.6 |
% |
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 12 of 17 |
|
HELIOS TECHNOLOGIES
Net Sales by Geographic Region and Segment
(In millions)
(Unaudited)
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Q1 |
|
% Change y/y |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Americas: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Hydraulics |
$ |
49.9 |
|
(11%) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electronics |
|
56.7 |
|
(2%) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consol. Americas |
|
106.6 |
|
(6%) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
% of total |
|
55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
EMEA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Hydraulics |
$ |
37.9 |
|
(17%) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electronics |
|
6.2 |
|
(5%) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consol. EMEA |
|
44.1 |
|
(15%) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
% of total |
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
APAC: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Hydraulics |
$ |
38.6 |
|
(6%) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electronics |
|
6.2 |
|
24% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consol. APAC |
|
44.8 |
|
(3%) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
% of total |
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total |
$ |
195.5 |
|
(8%) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
2024 |
|||||||||||||||||||
|
Q1 |
|
% Change y/y |
Q2 |
|
% Change y/y |
Q3 |
|
% Change y/y |
Q4 |
|
% Change y/y |
2024 |
|
% Change y/y |
|||||
Americas: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Hydraulics |
$ |
55.8 |
|
(4%) |
$ |
59.5 |
|
(2%) |
$ |
52.1 |
|
(6%) |
$ |
51.7 |
|
(14%) |
$ |
219.1 |
|
(7%) |
Electronics |
|
58.1 |
|
5% |
|
57.8 |
|
(9%) |
|
50.9 |
|
(14%) |
|
49.1 |
|
1% |
$ |
215.9 |
|
(5%) |
Consol. Americas |
|
113.9 |
|
1% |
|
117.3 |
|
(5%) |
|
103.0 |
|
(11%) |
|
100.8 |
|
(8%) |
|
435.0 |
|
(6%) |
% of total |
|
54 |
% |
|
|
53 |
% |
|
|
53 |
% |
|
|
56 |
% |
|
|
54 |
% |
|
EMEA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Hydraulics |
$ |
45.5 |
|
(8%) |
$ |
42.8 |
|
(17%) |
$ |
36.7 |
|
(5%) |
$ |
32.1 |
|
(16%) |
$ |
157.1 |
|
(12%) |
Electronics |
|
6.5 |
|
(3%) |
|
9.0 |
|
29% |
|
6.5 |
|
14% |
|
4.7 |
|
(19%) |
$ |
26.7 |
|
6% |
Consol. EMEA |
|
52.0 |
|
(7%) |
|
51.8 |
|
(11%) |
|
43.2 |
|
(3%) |
|
36.8 |
|
(16%) |
|
183.8 |
|
(9%) |
% of total |
|
25 |
% |
|
|
24 |
% |
|
|
22 |
% |
|
|
21 |
% |
|
|
23 |
% |
|
APAC: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Hydraulics |
$ |
41.1 |
|
2% |
$ |
43.4 |
|
7% |
$ |
40.6 |
|
8% |
$ |
35.9 |
|
1% |
$ |
161.0 |
|
5% |
Electronics |
|
5.0 |
|
35% |
|
7.4 |
|
48% |
|
7.7 |
|
79% |
|
6.0 |
|
18% |
$ |
26.1 |
|
44% |
Consol. APAC |
|
46.1 |
|
5% |
|
50.8 |
|
12% |
|
48.3 |
|
16% |
|
41.9 |
|
3% |
|
187.1 |
|
9% |
% of total |
|
22 |
% |
|
|
23 |
% |
|
|
25 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
Total |
$ |
212.0 |
|
(1%) |
$ |
219.9 |
|
(3%) |
$ |
194.5 |
|
(3%) |
$ |
179.5 |
|
(7%) |
$ |
805.9 |
|
(4%) |
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 13 of 17 |
|
HELIOS TECHNOLOGIES
Non-GAAP Adjusted Operating Income & Non-GAAP Adjusted Operating Margin RECONCILIATION
(In millions)
(Unaudited)
|
For the Three Months Ended |
|
|
For the Twelve Months Ended |
|
|||||||||||||||
|
March 29, 2025 |
|
Margin |
|
|
March 30, 2024 |
|
Margin |
|
|
March 29, 2025 |
|
Margin |
|
||||||
GAAP operating income |
$ |
17.0 |
|
|
8.7 |
% |
|
$ |
20.3 |
|
|
9.6 |
% |
|
$ |
78.5 |
|
|
9.9 |
% |
Acquisition-related amortization of intangible assets |
|
8.3 |
|
|
4.2 |
% |
|
|
7.9 |
|
|
3.7 |
% |
|
|
32.0 |
|
|
4.1 |
% |
Acquisition and financing-related expenses(A) |
|
- |
|
|
0.0 |
% |
|
|
0.5 |
|
|
0.2 |
% |
|
|
0.2 |
|
|
0.0 |
% |
Restructuring charges(B) |
|
0.3 |
|
|
0.2 |
% |
|
|
1.4 |
|
|
0.7 |
% |
|
|
4.1 |
|
|
0.5 |
% |
Officer transition costs |
|
- |
|
|
0.0 |
% |
|
|
0.3 |
|
|
0.1 |
% |
|
|
1.6 |
|
|
0.2 |
% |
Acquisition integration costs (C) |
|
- |
|
|
0.0 |
% |
|
|
0.3 |
|
|
0.1 |
% |
|
|
- |
|
|
0.0 |
% |
Other |
|
0.6 |
|
|
0.3 |
% |
|
|
- |
|
|
0.0 |
% |
|
|
1.8 |
|
|
0.2 |
% |
Non-GAAP adjusted operating income |
$ |
26.2 |
|
|
13.4 |
% |
|
$ |
30.7 |
|
|
14.5 |
% |
|
$ |
118.2 |
|
|
15.0 |
% |
GAAP operating margin |
|
8.7 |
% |
|
|
|
|
9.6 |
% |
|
|
|
|
9.9 |
% |
|
|
|||
Non-GAAP adjusted operating margin |
|
13.4 |
% |
|
|
|
|
14.5 |
% |
|
|
|
|
15.0 |
% |
|
|
|||
Net sales |
$ |
195.5 |
|
|
|
|
$ |
212.0 |
|
|
|
|
$ |
789.4 |
|
|
|
|||
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 14 of 17 |
|
Non-GAAP Adjusted EBITDA & Non-GAAP Adjusted EBITDA Margin RECONCILIATION
(In millions)
(Unaudited)
|
For the Three Months Ended |
|
|
For the Twelve Months Ended |
|
|||||||||||||||
|
March 29, 2025 |
|
Margin |
|
|
March 30, 2024 |
|
Margin |
|
|
March 29, 2025 |
|
Margin |
|
||||||
Net income |
$ |
7.3 |
|
|
3.7 |
% |
|
$ |
9.2 |
|
|
4.3 |
% |
|
$ |
37.1 |
|
|
4.7 |
% |
Interest expense, net |
|
7.4 |
|
|
3.8 |
% |
|
|
8.2 |
|
|
3.9 |
% |
|
|
33.0 |
|
|
4.2 |
% |
Income tax provision |
|
2.2 |
|
|
1.1 |
% |
|
|
2.8 |
|
|
1.3 |
% |
|
|
10.9 |
|
|
1.4 |
% |
Depreciation and amortization |
|
16.0 |
|
|
8.2 |
% |
|
|
15.7 |
|
|
7.4 |
% |
|
|
64.1 |
|
|
8.1 |
% |
EBITDA |
|
32.9 |
|
|
16.8 |
% |
|
|
35.9 |
|
|
16.9 |
% |
|
|
145.1 |
|
|
18.4 |
% |
Acquisition and financing-related expenses(A) |
|
- |
|
|
0.0 |
% |
|
|
0.5 |
|
|
0.2 |
% |
|
|
0.2 |
|
|
0.0 |
% |
Restructuring charges(B) |
|
0.3 |
|
|
0.2 |
% |
|
|
1.4 |
|
|
0.7 |
% |
|
|
4.1 |
|
|
0.5 |
% |
Officer transition costs |
|
- |
|
|
0.0 |
% |
|
|
0.3 |
|
|
0.1 |
% |
|
|
1.6 |
|
|
0.2 |
% |
Acquisition integration costs (C) |
|
- |
|
|
0.0 |
% |
|
|
0.3 |
|
|
0.1 |
% |
|
|
- |
|
|
0.0 |
% |
Change in fair value of contingent consideration |
|
- |
|
|
0.0 |
% |
|
|
- |
|
|
0.0 |
% |
|
|
0.4 |
|
|
0.1 |
% |
Other |
|
0.6 |
|
|
0.3 |
% |
|
|
0.2 |
|
|
0.1 |
% |
|
|
(1.7 |
) |
|
-0.2 |
% |
Adjusted EBITDA |
$ |
33.8 |
|
|
17.3 |
% |
|
$ |
38.6 |
|
|
18.2 |
% |
|
$ |
149.7 |
|
|
19.0 |
% |
GAAP net income margin |
|
3.7 |
% |
|
|
|
|
4.3 |
% |
|
|
|
|
4.7 |
% |
|
|
|||
EBITDA margin |
|
16.8 |
% |
|
|
|
|
16.9 |
% |
|
|
|
|
18.4 |
% |
|
|
|||
Adjusted EBITDA margin |
|
17.3 |
% |
|
|
|
|
18.2 |
% |
|
|
|
|
19.0 |
% |
|
|
|||
Net sales |
$ |
195.5 |
|
|
|
|
$ |
212.0 |
|
|
|
|
$ |
789.4 |
|
|
|
|||
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 15 of 17 |
|
HELIOS TECHNOLOGIES
Non-GAAP Adjusted Net Income & Non-GAAP Adjusted Net Income Per Diluted Share RECONCILIATION
(In millions)
(Unaudited)
|
For the Three Months Ended |
|
|||||||||||
|
March 29, 2025 |
|
Per Diluted Share |
|
|
March 30, 2024 |
|
Per Diluted Share |
|
||||
GAAP net income |
$ |
7.3 |
|
$ |
0.22 |
|
|
$ |
9.2 |
|
$ |
0.28 |
|
Amortization of intangible assets(D) |
|
8.7 |
|
|
0.26 |
|
|
|
8.1 |
|
|
0.24 |
|
Acquisition and financing-related expenses(A) |
|
- |
|
|
- |
|
|
|
0.5 |
|
|
0.02 |
|
Restructuring charges(B) |
|
0.3 |
|
|
0.01 |
|
|
|
1.4 |
|
|
0.04 |
|
Officer transition costs |
|
- |
|
|
- |
|
|
|
0.3 |
|
|
0.01 |
|
Acquisition integration costs (C) |
|
- |
|
|
- |
|
|
|
0.3 |
|
|
0.01 |
|
Other |
|
0.6 |
|
|
0.02 |
|
|
|
0.2 |
|
|
0.01 |
|
Tax effect of above |
|
(2.1 |
) |
|
(0.06 |
) |
|
|
(2.4 |
) |
|
(0.07 |
) |
Non-GAAP Adjusted net income |
$ |
14.8 |
|
$ |
0.44 |
|
|
$ |
17.6 |
|
$ |
0.53 |
|
GAAP net income per diluted share |
$ |
0.22 |
|
|
|
|
$ |
0.28 |
|
|
|
||
Non-GAAP Adjusted net income per diluted share |
$ |
0.44 |
|
|
|
|
$ |
0.53 |
|
|
|
||
(A) Acquisition and financing-related expenses include costs associated with our M&A activities. We believe these costs are not representative of the Company's operational performance and it is therefore more meaningful to analyze results with the costs excluded. For the three months ended March 29, 2025, there were minimal other miscellaneous M&A costs.
(B) Our previously announced restructuring activities within our Hydraulics segment related to the creation of our two new Regional Operational Centers of Excellence ("CoE") are complete. We also continue to add capabilities and activities to our recently expanded Tijuana, Mexico facility to support our Electronics segment. Initial efforts have focused on circuit board assembly and wire harness production. While activities are currently paused, we continue to evaluate plans to move additional production activities to Tijuana in 2025. The initial phase of the restructuring activities to better optimize our European regional operations are complete. Additional phases of this project are currently paused, we continue to evaluate plans for restructuring activities to optimizing operations in the European Region. In January 2025, the Company began the early phases of restructuring the Helios Center of Engineering Excellence (“HCEE”). As the next phases of the restructuring plan begin, management plans to close the San Antonio office in June 2025, reassign resources to the operations at our other major facilities across the business, and eliminate certain positions. All substantial activities are planned to be moved out of San Antonio during the second quarter of 2025. For the three months ended March 29, 2025, the charges include non-recurring labor costs of $0.1 million, $0.1 million of severance, and manufacturing relocation and other costs of $0.1 million.
(C) Acquisition integration activities include costs associated with integrating our recently acquired businesses, which can occur up to 18 months after acquisition date. We believe these costs are not representative of the Company's operational performance and it is therefore more meaningful to analyze results with the costs excluded. For the three months ended March 29, 2025, there were no acquisition integration costs.
(D) Amortization of intangible assets presented here includes $0.4 million for capitalized software development costs included within cost of sales in the income statement for the three ended March 29, 2025, respectively.
*General note: items may not sum or recalculate due to rounding
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 16 of 17 |
|
HELIOS TECHNOLOGIES
Non-GAAP Net Sales Growth RECONCILIATION
(In millions)
(Unaudited)
|
For the Three Months Ended |
|
|||||||||
|
Hydraulics |
|
|
Electronics |
|
|
Consolidated |
|
|||
Q1 2025 Net Sales |
$ |
126.4 |
|
|
$ |
69.1 |
|
|
$ |
195.5 |
|
Impact of foreign currency translation(E) |
|
2.2 |
|
|
|
0.1 |
|
|
|
2.3 |
|
Net Sales in constant currency |
|
128.6 |
|
|
|
69.2 |
|
|
|
197.8 |
|
|
|
|
|
|
|
|
|
|
|||
Q1 2024 Net Sales |
$ |
142.4 |
|
|
$ |
69.6 |
|
|
$ |
212.0 |
|
|
|
|
|
|
|
|
|
|
|||
Net sales decline |
|
-11 |
% |
|
|
-1 |
% |
|
|
-8 |
% |
Net sales decline in constant currency |
|
-10 |
% |
|
|
-1 |
% |
|
|
-7 |
% |
(E) The impact from foreign currency translation is calculated by translating current period activity at average prior period exchange rates.
Helios Technologies Reports First Quarter Financial Results; Exceeds its Quarterly Estimates on Stronger Demand Trends; Continued Balance Sheet Improvement
May 6, 2025 Page 17 of 17 |
|
Net Debt-to-Adjusted EBITDA RECONCILIATION
(In millions)
(Unaudited)
|
|
As of |
|
|
|
|
March 29, 2025 |
|
|
Current portion of long-term non-revolving debt, net |
|
|
16.1 |
|
Revolving lines of credit |
|
|
150.3 |
|
Long-term non-revolving debt, net |
|
|
279.2 |
|
Total debt |
|
|
445.6 |
|
Less: Cash and cash equivalents |
|
|
45.9 |
|
Net debt |
|
|
399.7 |
|
|
|
|
|
|
TTM adjusted EBITDA |
|
|
149.7 |
|
Ratio of net debt to TTM adjusted EBITDA |
|
|
2.7 |
|
Non-GAAP Financial Measures and Non-GAAP Forward-looking Financial Measures:
Adjusted operating income, adjusted operating margin, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, net debt-to-adjusted EBITDA, adjusted net income, adjusted net income per diluted share and sales in constant currency are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Helios believes that providing these specific Non-GAAP figures are important for investors and other readers of Helios financial statements, as they are used as analytical indicators by Helios management to better understand operating performance. These Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for GAAP. Please carefully review the attached Non-GAAP reconciliations to the most directly comparable GAAP measures and the related additional information provided throughout. Because these metrics are Non-GAAP measures and are thus susceptible to varying calculations, these figures, as presented, may not be directly comparable to other similarly titled measures used by other companies. The Company does not provide a reconciliation of forward-looking Non-GAAP financial measures, such as adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted share disclosed above in our 2025 Outlook, to their comparable GAAP financial measures because it could not do so without unreasonable effort due to the unavailability of the information needed to calculate reconciling items and due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the Non-GAAP financial measures in future periods.