Helios Technologies (HLIO) investor relations material

Executive summary

• Achieved 13% year-over-year sales growth in Q3 2025 to $220.3 million, with both Hydraulics (+9%) and Electronics (+21%) segments contributing; all regions posted gains and Enovation Controls set a record quarter.

• Gross margin expanded by 200 bps to 33.1%, with gross profit up 21% to $73 million; margin gains driven by strong demand in recreational, mobile, and industrial markets.

• Diluted Non-GAAP EPS rose 22% to $0.72, while net income declined 10% due to a $25.9 million goodwill impairment in Electronics; Non-GAAP net income was $24 million.

• Portfolio streamlined through the divestiture of Custom Fluidpower (CFP), with a $21 million gain, and a refocus of i3 Product Development (i3PD) on core projects.

• Debt reduced for the ninth consecutive quarter, leverage ratio improved to 2.4x, and share repurchases and dividends continued.

Financial highlights

• Q3 net sales reached $220.3 million, up 13% year-over-year and above guidance; Electronics up 21%, Hydraulics up 9%.

• Gross profit rose 21% to $73 million; gross margin expanded 200 bps to 33.1%.

• Adjusted EBITDA margin was 20.5%, down 40 bps year-over-year; adjusted operating margin was 16.6%.

• Diluted EPS was $0.31 (down 9%); Non-GAAP EPS was $0.72 (up 22%).

• Free cash flow for the quarter was $18.5 million; trailing 12-month free cash flow conversion rate at 223%.

Outlook and guidance

• FY25 net sales outlook raised to $820–$830 million; adjusted EBITDA margin 19.1%–19.4%; Non-GAAP EPS $2.43–$2.50.

• Q4 2025 outlook: net sales $192–$202 million, adjusted EBITDA margin 20.0%–21.0%, Non-GAAP EPS $0.67–$0.74.

• Electronics segment growth expected to outpace Hydraulics, driven by recreational market tailwinds.

• Entering 2026 with strong momentum, easier comps in H1, and optimism for continued growth.

• Management expects challenging macroeconomic conditions to persist, with ongoing inflation, geopolitical risks, and tariff uncertainties.