Helios Technologies Inc.

03/02/2026 | Press release | Distributed by Public on 03/02/2026 16:30

Helios Technologies Reports Fourth Quarter 2025 Sales Growth of 17% with Expanded Profitability While Generating Record Cash Flow (Form 8-K)

Helios Technologies Reports Fourth Quarter 2025 Sales Growth of 17% with Expanded Profitability While Generating Record Cash Flow

•
Grew 4Q25 net sales to $211 million, up 17%, from strength in both segments and up 29% on pro forma basis for the divestiture; Full year net sales of $839 million, returned to annual growth of 4%, and up 6% pro forma
•
Expanded 4Q25 gross margin to 33.6% or 350 bps over prior year period driven by volume, mix and productivity enhancements; Full year gross margin of 32.3% up 100 bps compared to prior year
•
Delivered 4Q25 diluted EPS of $0.58 up 314% and adjusted diluted EPS of $0.81, up 145% over prior year period; Full year diluted EPS of $1.45 up 24% and adjusted diluted EPS of $2.56 up 22% over prior year
•
Generated a record $46 million in cash from operations for the quarter and a record $127 million for FY25
•
Reduced net-debt-to-adjusted EBITDA leverage ratio to 1.8x, down from 2.6x in the prior-year period with total debt reduction of $82 million, down 18%; Liquidity has surpassed total debt
•
Maintained over 28 years, or 116 quarters in a row, of consistent cash dividend payments; Repurchased 330,000 shares of the Company's common stock for $13.6 million in FY25
•
Initiating 2026 outlook with full year sales expected to be +4% to +9% over 2025 pro forma (excludes divested business); Remain focused on working capital; Executing on plan to drive growth, improve margins and returns

SARASOTA, FL, March 2, 2026 - 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 fourth quarter and fiscal year 2025 ended January 3, 2026.

"We finished 2025 ahead of recent expectations, with all businesses reporting quarterly sales and earnings growth, leading to full-year sales growth for the first time in three years, while also delivering record free cash flow. Fourth quarter sales were up 17% resulting in 4% growth for the year to $839 million. On a pro forma basis, excluding the Custom Fluidpower ("CFP") divestiture, sales for the fourth quarter were up 29% and for the full year up 6%. Returning the business to profitable sales growth is a testament to our global team's customer focus and relentless execution in overcoming subdued end markets and the disruption created by global tariff escalation. Our margins are strengthening and, importantly, our working capital reduction efforts have yielded measurable results. We generated record cash flow and paid down $82 million in debt this year. Our balance sheet is strong, and our net-debt-to-adjusted EBITDA leverage ratio is comfortably below 2.0x, a level that has not been achieved since 2Q22," said Sean Bagan, President & Chief Executive Officer of Helios.

"As we start 2026, Helios is extremely well positioned with a strong funnel of opportunities generated by our go-to-market initiatives focused on customer centricity and the innovative products we have launched. We now have the right structure and the right leadership team to deliver improved results and return Helios to being a growth engine with strong returns on the capital we continue to deploy. Our team is dedicated, energized, and fully engaged, building our plans from the ground up to deliver on our commitments. Capitalizing on the return to growth we achieved in 2025, I expect 2026 to extend that momentum and lead to an even stronger future for Helios," he concluded.

Helios Technologies Reports Fourth Quarter 2025 Sales Growth of 17% with Expanded Profitability While Generating Record Cash Flow

March 2, 2026

Page 2 of 17

Fourth Quarter 2025 Consolidated Results

For the Three Months Ended

For the Year Ended

($ in millions, except per share data)
(Unaudited)

January 03,
2026

December 28,
2024

Change

% Change

January 03,
2026

December 28,
2024

Change

% Change

Net sales

$

210.7

$

179.5

$

31.2

17

%

$

839.0

$

805.9

$

33.1

4

%

Gross profit

$

70.8

$

54.0

$

16.8

31

%

$

271.2

$

252.3

$

18.9

7

%

Gross margin

33.6

%

30.1

%

350

bps

32.3

%

31.3

%

100

bps

Operating income

$

25.7

$

13.3

$

12.5

94

%

$

66.0

$

81.8

$

(15.8

)

(19

%)

Operating margin

12.2

%

7.4

%

480

bps

7.9

%

10.2

%

(230

)

bps

Non-GAAP adjusted operating margin*

16.4

%

13.3

%

310

bps

15.4

%

15.2

%

20

bps

Net income

$

19.5

$

4.8

$

14.7

306

%

$

48.4

$

39.0

$

9.4

24

%

Diluted EPS

$

0.58

$

0.14

$

0.44

314

%

$

1.45

$

1.17

$

0.28

24

%

Non-GAAP net income*

$

26.9

$

10.9

$

16.0

147

%

$

85.3

$

69.7

$

15.6

22

%

Diluted Non-GAAP EPS*

$

0.81

$

0.33

$

0.48

145

%

$

2.56

$

2.10

$

0.46

22

%

Adjusted EBITDA*

$

42.3

$

31.2

$

11.1

36

%

$

160.7

$

154.5

$

6.2

4

%

Adjusted EBITDA margin*

20.1

%

17.4

%

270

bps

19.2

%

19.2

%

0

bps

* 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

•
Changes in mix: compared with the fourth quarter of the prior-year period, Hydraulics segment sales increased 10% while Electronics segment sales increased 31%.
•
By region: year-over-year sales increased in the Americas 22% and Europe, Middle East and Africa ("EMEA") 33% while Asia Pacific ("APAC") declined 8% and on a pro forma basis APAC increased 46%.
•
Other impacts: foreign currency (FX) translation favorably impacted sales by $3.3 million in the fourth quarter 2025.

Profits and margins

•
Gross profit and margin impacts: gross profit increased 31%, or $16.8 million compared with the year ago period. Gross margin expanded 350 bps primarily from the impact of higher volume and lower direct labor costs as a percentage of sales partially offset by net tariff impacts.
•
Selling, engineering and administrative ("SEA") expenses: increased $4.7 million, or 14%, compared with the year ago period while as a percentage of sales, SEA expenses declined 50 bps.
•
Operating income: increased $12.5 million, or 94%, driven by the increase in gross profit partially offset by an increase in SEA expenses.
•
Amortization of intangible assets: $7.6 million down 4% compared with the year ago period. The decrease was primarily driven by the divestiture of the CFP business.

Non-operating items

•
Net interest expense: declined $7.5 million, or 92%, in the quarter compared with the year ago period as a result of lower debt balances, lower rates, combined with refinanced lower spreads. Also, interest expense was lower from the one-time benefit of $5.4 million related to an interest rate swap that was originally due for maturity this quarter from when the Company refinanced its debt in 2024.

Helios Technologies Reports Fourth Quarter 2025 Sales Growth of 17% with Expanded Profitability While Generating Record Cash Flow

March 2, 2026

Page 3 of 17

•
Effective tax rate: fourth quarter and full year of 2025 was 22.7% and 22.5% compared with 37.2% and 22.8% in the corresponding period of 2024, respectively. These effective rates fluctuate relative to the levels of income and different tax rates in effect among the countries in which we sell our products. The 2025 period included impacts due to the goodwill impairment and gain on the sale of CFP. The 2024 period included an overall increase in discrete tax benefits driven by the previous CEO's termination in July 2024.

Net income, diluted earnings per share ("EPS"), adjusted diluted EPS, and adjusted EBITDA margin

•
GAAP net income: increased by $14.7 million compared with the year ago period primarily as a result stronger margins on a higher sales volume. On a per diluted share basis, earnings increased 314%, or $0.44, to $0.58.
•
Adjusted diluted EPS: increased $0.48, or 145%, to $0.81 compared with the year ago period.
•
Adjusted EBITDA margin: expanded 270 bps to 20.1% compared with the year ago period reflecting the impact of the items referenced above.

Hydraulics Segment Review

(Refer to sales by geographic region and segment data in accompanying tables)

Hydraulics

For the Three Months Ended

($ in millions)
(Unaudited)

January 03,
2026

December 28,
2024

Change

% Change

Net Sales

Americas

$

58.4

$

51.7

$

6.7

13

%

EMEA

43.3

32.1

11.2

35

%

APAC

30.4

35.9

(5.5

)

(15

%)

Total Segment Sales

$

132.1

$

119.7

$

12.4

10

%

Gross Profit

$

45.0

$

35.5

$

9.5

27

%

Gross Margin

34.1

%

29.7

%

440

bps

SEA Expenses

$

20.3

$

19.0

$

1.3

7

%

Operating Income

$

24.7

$

16.5

$

8.2

50

%

Operating Margin

18.7

%

13.8

%

490

bps

Fourth Quarter 2025 Hydraulics Segment Review

•
Sales: strong growth in EMEA and the Americas more than offset the decline in APAC, which was entirely driven by the CFP divestiture. On a pro-forma basis, APAC was up 51%. Consolidated sales increased 10% compared with the prior year. Sales growth was driven by growth in mobile, primarily construction, and agriculture markets. FX had a favorable $3.3 million impact on sales compared with the year ago period.
•
Gross profit and margin drivers: gross profit increased $9.5 million, or 27%, and margin expanded 440 bps primarily due to better fixed cost leverage on higher volume, lower direct labor costs as a percentage of sales, and the favorable impact of the CFP divestiture.
•
Operating income and operating margin: operating income increased $8.2 million, or 50%, and operating margin expanded 490 bps, compared with the year ago period due to improved gross profit and margin somewhat offset by modestly increased operating expenses. SEA expenses were $1.3 million higher than the year ago period, as a result of investments in wages and benefits, while SEA declined over 50 bps as a percentage of sales.

Helios Technologies Reports Fourth Quarter 2025 Sales Growth of 17% with Expanded Profitability While Generating Record Cash Flow

March 2, 2026

Page 4 of 17

Electronics Segment Review

(Refer to sales by geographic region and segment data in accompanying tables)

Electronics

For the Three Months Ended

($ in millions)
(Unaudited)

January 03,
2026

December 28,
2024

Change

% Change

Net Sales

Americas

$

65.0

$

49.1

$

15.9

32

%

EMEA

5.7

4.7

1.0

21

%

APAC

7.9

6.0

1.9

32

%

Total Segment Sales

$

78.60

$

59.8

$

18.8

31

%

Gross Profit

$

25.9

$

18.5

$

7.4

40

%

Gross Margin

33.0

%

30.9

%

210

bps

SEA Expenses

$

16.4

$

13.1

$

3.3

25

%

Operating Income

$

9.5

$

5.4

$

4.1

76

%

Operating Margin

12.0

%

9.0

%

300

bps

Fourth Quarter 2025 Electronics Segment Review

•
Sales: grew 31% with all regions growing over 20% reflecting significant strength in the recreational end market driven by strong demand from OEM customers as well as improvements in health and wellness, mobile and industrial end markets.
•
Gross profit and margin drivers: gross profit increased $7.4 million, or 40%, and margin expanded 210 bps primarily due to higher volumes and more favorable sales mix within the segment.
•
Operating income and operating margin: growth in operating income of $4.1 million, or 76%, and operating margin expanding 300 bps was the result of higher sales volume and the resulting increase in gross profit and increased leverage on SEA expenses.

Cash Flow, Balance Sheet and Financial Flexibility

•
Net cash provided by operations: generated $46 million in the fourth quarter 2025, up 29% compared with the year ago period driven primarily by stronger cash earnings and working capital improvements.
•
Continued debt reduction: total debt at January 3, 2026, was $367.1 million down 18% from $446.5 million at December 28, 2024.
•
Cash and cash equivalents: as of January 3, 2026, were $73.0 million up from $44.1 million in the year ago period.
•
Cash conversion cycle: decreased from the prior-year period reflecting improved inventory management and extending supplier payment terms.
•
Net debt-to-adjusted EBITDA leverage ratio: improved to 1.8x compared with 2.6x at the end of the comparable year ago period. At the end of the fourth quarter 2025, the Company had $393.6 million available on its revolving lines of credit.
•
Capital expenditures: were $5.5 million in the fourth quarter 2025, or 2.6% of sales. This compares with $7.4 million, or 4.1% of sales in the year ago period.
•
Share repurchases: during 2025, the Company repurchased a total of 330,000 shares for $13.6 million.

Helios Technologies Reports Fourth Quarter 2025 Sales Growth of 17% with Expanded Profitability While Generating Record Cash Flow

March 2, 2026

Page 5 of 17

•
Dividends: paid 116th consecutive quarterly cash dividend of $0.09 per share on January 21, 2026, a history of over 28 consecutive years of dividends.

Initiates Full Year 2026 Guidance and First Quarter 2026 Outlook1

Jeremy Evans, Executive Vice President, Chief Financial Officer, commented, "We made solid progress across the board on our 2025 financial priorities. We have established new financial priorities as we enter 2026, grounded in our second year of deep strategic planning, that include (i) executing on our growth plan (ii) expanding gross margins (iii) maintaining earnings momentum and (iv) optimizing capital allocation. Our focus remains disciplined and forward-looking. We are aligning investments to our highest-return opportunities, driving operational efficiency across the organization, and building upon our strong foundation that will enable sustainable, long-term value creation. I am confident that the clarity of our strategy, combined with the strength of our team, will enable us to deliver another year of meaningful financial advancement in 2026."

The following provides the Company's expectations for 2026 as of March 2, 2026. This assumes constant currency, using 2025 year end foreign exchange rates.

FY25 Actual

FY26 Outlook

1Q26 Outlook

Sales

$839 million

$792 million pro forma2

$820 to $860 million

$218 to $223 million

Adjusted EBITDA margin

19.2%

19.5% to 21.0%

19.5% to 20.5%

Adjusted Diluted EPS

$2.56

$2.60 to $2.90

$0.65 to $0.70

1 Reference "Fourth Quarter 2025 Earnings Presentation" slides for details and assumptions

2 Pro forma reflects CFP divestiture: FY25 & 1Q25 contained $47M & $14M, respectively, of sales now divested.

Forward-looking adjusted EBITDA margin and adjusted diluted EPS represent Non-GAAP financial measures. The Company has presented the comparable GAAP figures in the table above. See comments on reconciliation of forward-looking non-GAAP financial measures in the Forward-Looking Information included in this release describing the safe harbor provided within the meaning of Section 21E of the Securities Exchange Act of 1934.

Webcast

The Company will host a conference call and webcast tomorrow, Tuesday, March 3, 2026, 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 Tuesday, March 17, 2026. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13757874. 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

Helios Technologies Reports Fourth Quarter 2025 Sales Growth of 17% with Expanded Profitability While Generating Record Cash Flow

March 2, 2026

Page 6 of 17

becoming a public company in 1997. For more information please visit: www.heliostechnologies.com and follow us on LinkedIn.

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