Helios Technologies Inc (NYSE:HLIO)
$ 79.83 +0.050 (+0.06%) Market Cap: 2.64 Bil Enterprise Value: 2.92 Bil PE Ratio: 43.86 PB Ratio: 2.82 GF Score: 76/100

Q2 2025 Helios Technologies Inc Earnings Call Transcript

Aug 05, 2025 / 01:00PM GMT
Release Date Price: $48.12 (+31.08%)

Key Points

Positve
  • Helios Technologies Inc (HLIO) delivered second-quarter results that surpassed internal expectations, demonstrating resilience and disciplined execution.
  • The company generated near-record cash from operations of $37 million, which was used to further strengthen the balance sheet by reducing debt.
  • Helios Technologies Inc (HLIO) initiated a share repurchase program, buying back 200,000 shares at an average price of $32 per share.
  • The company announced a definitive agreement to sell Custom Fluid Power, which is expected to improve margin rates within the hydraulic segment.
  • Helios Technologies Inc (HLIO) is seeing signs of stabilization and growth in key markets such as agriculture, mobile, European construction, and health and wellness.
Negative
  • Sales and earnings declined in the quarter compared to the prior year, reflecting challenges in the market.
  • The adjusted EBITDA margin was dampened by unfavorable product mix and tariff impacts.
  • Operating income in the second quarter was down $4.1 million, reflecting a decrease in gross profit and increased expenses.
  • The electronics segment experienced a 4% decline in sales, with significant declines in the recreational market.
  • The company continues to face persistent weakness in broader industrial and recreational markets.
Operator

Ladies and gentlemen, greetings and welcome to the Helios Technologies. 2nd quarter, 2025 financial results conference call.

At this time, all participants are in the listen-only mode. A brief question and answer session will follow the formal presentation.

If anyone should require operator assistance during the conference, please press star and 0 on your telephone keypad.

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Tanya A, Vice President of Investor Relations and corporate communications. Please go ahead.

Tania Almond Helios Technologies Inc;Investor Relations

Thank you, operator, and good day everyone. Welcome to the Helios Technologies 2nd quarter 2025 Financial results conference call. We issued a press release announcing our results yesterday afternoon. If you do not have that release, it is available on our website at hliliio.com. You will also find the slides that will accompany our conversation today, as well as our prepared remarks.

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