Helios Technologies (HLIO) Q4 2025 earnings summary

Executive summary

• Achieved a turnaround in 2025 with all businesses reporting quarterly sales and earnings growth, resulting in full-year sales growth for the first time in three years and record free cash flow.

• Fourth quarter 2025 net sales grew 17% to $211 million, with both Hydraulics and Electronics segments contributing; full-year net sales reached $839 million, up 4% year-over-year and 6% pro forma for divestitures.

• Overcame macroeconomic challenges including global tariffs, geopolitical uncertainty, and weak consumer markets, while executing go-to-market initiatives and launching new products.

• Divested Custom Fluidpower (CFP), refocused on core manufacturing, and aligned Australian distribution through an exclusive agreement.

• Strengthened leadership team with new CEO, CFO, and segment president appointments, institutionalizing a performance-driven culture and celebrating the 55th anniversary by ringing the NYSE closing bell.

Financial highlights

• Q4 2025 sales reached $211 million, up 17% year-over-year; full-year sales were $839 million, up 4% year-over-year (6% pro forma, excluding CFP).

• Q4 gross profit was $71 million (up 31% YoY), with gross margin expanding 350 bps to 33.6%; full-year gross margin was 32.3% (up 100 bps).

• Q4 operating income nearly doubled to $25.7 million, with operating margin up 480 bps to 12.2%.

• Adjusted EBITDA margin in Q4 was 20.1% (up 270 bps); full-year adjusted EBITDA was $161 million, up 4%, with margin flat at 19.2%.

• Diluted EPS in Q4 was $0.58 (up 314%); non-GAAP EPS $0.81 (up 145%). Full-year diluted EPS $1.45 (up 24%), non-GAAP EPS $2.56 (up 22%).

• Record cash from operations: $46 million in Q4, $127 million for the year; FY25 adjusted free cash flow was $103.6 million, up 9% YoY.

• FY25 net income was $48.4 million; Q4 net income up 306% YoY.

Outlook and guidance

• FY26 sales projected at $820–$860 million (+4% to +9% vs. FY25 pro forma); adjusted EBITDA margin expected at 19.5%–21.0%.

• FY26 adjusted diluted EPS guidance of $2.60–$2.90 (+2% to +13% YoY); full-year non-GAAP EPS growth expected at 7% midpoint.

• Q1 2026 sales expected at $218–$223 million, up 22% year-over-year at midpoint (pro forma); adjusted EBITDA margin expected at 19.5%–20.5%; non-GAAP EPS $0.65–$0.70, up 53% at midpoint.

• Hydraulics segment sales expected at $510–$530 million (up 5% at midpoint); Electronics at $310–$330 million (up 7% at midpoint).