Helios Technologies (HLIO) Q4 2024 earnings summary

Executive summary

• Achieved record $122M cash from operations in 2024, up 46% year-over-year, with strong margin expansion and operational efficiencies despite lower sales volume and challenging end markets, especially in agriculture and mobile.

• Leadership transition completed, with CFO promoted to President & CEO in January 2025 and ongoing CFO search, focusing on strengthening the finance team.

• Continued investment in new products in Hydraulics and Electronics, and entry into the commercial food service market through a key partnership.

Financial highlights

• FY2024 net sales were $805.9M, down 4% year-over-year; Q4 net sales $179.5M, down 7% year-over-year but above guidance.

• Q4 gross margin expanded 150 bps to 30.1% despite lower sales; full-year gross margin held steady at 31.3%.

• Q4 operating income grew 12% and operating margin expanded 120 bps to 7.4%; adjusted operating margin for FY2024 was 15.2%.

• Q4 diluted EPS was $0.14 (up 40% year-over-year) due to a one-time insurance gain; full-year diluted EPS was $1.17 (up 3%).

• Free cash flow conversion rate reached 244% in Q4; adjusted free cash flow for FY2024 was $95.1M, up 82% year-over-year.

Outlook and guidance

• 2025 net sales guidance: $775M–$825M; adjusted EBITDA: $140M–$165M (18.0%–20.0% margin); diluted non-GAAP EPS: $2.00–$2.40.

• Q1 2025 sales expected at $185M–$190M, down year-over-year but up sequentially; adjusted EBITDA margin 16–17%.

• Back half of 2025 expected to be stronger, driven by improving order trends and market indicators.

• Capital expenditures for 2025 targeted at 3.25%–3.75% of sales ($33M–$34M).