Helios Technologies, Inc. (HLIO) shares rallied 11.4% in the last trading session to close at $28.74. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 30.5% loss over the past four weeks.Helios Technologies’ shares got a boost from the news that the Trump administration announced a temporary halt on reciprocal tariffs for dozens of countries. This policy shift was aimed at counteracting the sharp sell-off in t ...

Despite the compelling and volatile public market momentum, Helios Towers plc ( OTCPK:HTWSF ) emerged as a positive outlier (Fig 1). As a reminder, the company is a leading telecom infrastructure player in Africa and the Middle East, with strongBuy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to __________ Commission file number 001-40935 HELIOS TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organization) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal y ...

FOURTH QUARTER & FULL YEAR 2024 EARNINGS PRESENTATION Hydraulics: Launched 11 new cartridge valves including a high capacity electro-proportional flow control valve and a commercialized ENERGEN valve Factors that could cause the actual results to differ materially from what is expressed or forecasted in such forward‐looking statements include, but are not limited to, (i) risks related to the Company's previous investigation of its former CEO and the related management transition that is in process (ii) the ...

Financial Performance - Generated fourth quarter 2024 cash from operations of $35.7 million, up 6% year-over-year; full year 2024 cash from operations reached a record $122.1 million, up 46% compared to the prior year[6] - Delivered fourth quarter net sales of $179.5 million, down 7% year-over-year; full year net sales totaled $805.9 million, down 4% compared to last year[6] - Achieved fourth quarter diluted EPS of $0.14, up 40% year-over-year; full year diluted EPS of $1.17, up 3% compared to the prior year[6] - Total net sales for 2024 were $805.9 million, with an outlook for 2025 between $775 million and $825 million[26] - Net income for the year ended December 28, 2024, was $39.0 million, a 4% increase from $37.5 million in 2023, with diluted earnings per share of $1.17[37] - Total consolidated net sales were $2.9 billion for the year ended 2024, down from $3.1 billion in 2023, representing a 7% decrease[56] Debt and Cash Management - Reduced total debt by $33.9 million in the fourth quarter, marking the sixth consecutive quarter of debt reduction; full year 2024 total debt decreased by $75.3 million compared to last year[6] - Total debt decreased by 14% to $449.5 million from $524.8 million at the end of 2023[22] - The net debt as of December 28, 2024, was $405.4 million, with a net debt-to-adjusted EBITDA ratio of 2.6[57] - Cash and cash equivalents increased by 36% to $44.1 million compared to the previous year[22] Margins and Profitability - Expanded fourth quarter gross margin by 150 basis points to 30.1%, with operating margin improvement of 120 basis points despite lower net sales; full year operating margin improved by 60 basis points[6] - Adjusted EBITDA margin expanded by 70 basis points compared to the prior year, reflecting operational improvements[16] - Gross profit increased by 31% to $18.5 million, with gross margin expanding by 730 basis points to 30.9%[22] - Operating income grew by 440% to $5.4 million, resulting in an operating margin of 9.0%[22] - GAAP operating income for Q4 2024 was $13.3 million, with a margin of 7.4%, compared to $11.9 million and 6.2% in Q4 2023[49] Sales Performance by Segment - Hydraulics segment sales decreased by 10% primarily due to weakness in agriculture, mobile, and industrial markets; sales in APAC grew by 1% while the Americas and EMEA saw declines of 14% and 16%, respectively[13] - The Hydraulics segment reported net sales of $119.7 million for the three months ended December 28, 2024, down from $133.7 million in the same period of 2023[43] - Electronics segment sales in Q4 2024 were $49.1 million, showing a 1% increase compared to the previous year[47] - Organic net sales for the Hydraulics segment were $518.8 million, while the Electronics segment reported $264.0 million for the year 2024[45] Cost Management and Operational Efficiency - Selling, engineering, and administrative expenses declined by 7% year-over-year, reflecting cost containment measures[16] - The overall gross margin improved, reflecting effective cost management strategies implemented during the year[48] - The company generated record cash flow from operating activities of $122.1 million for the year ended December 28, 2024, compared to $83.9 million in 2023[41] Future Outlook - Initiating 2025 outlook with full year sales expected to decline by 4% to grow by 2%[6] - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming fiscal year[48] Tax and Regulatory - The effective tax rate for the fourth quarter and full year of 2024 was 37.2% and 22.8%, respectively, compared to 23.3% and 23.8% in the corresponding periods of 2023[16]

Core Insights - Helios Towers is identified as a leading independent telecommunications infrastructure player headquartered in London, with a significant portfolio of telecom towers [1]. Company Overview - The company operates in the telecommunications sector, focusing on infrastructure, which is crucial for the growing demand for mobile and internet connectivity [1]. Investment Perspective - The article suggests that Helios Towers presents a potential investment opportunity for buy-side hedge professionals conducting long-term analysis in developed markets [1].

Core Insights - The volatility in financial markets is impacting interest rate dependent companies, leading to increased share price fluctuations for these firms [1] Company Overview - Helios Towers is highlighted as a key player in the investment landscape, particularly within the small-cap sector in Europe [1] - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities, emphasizing capital gains and dividend income [1] Investment Strategy - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1] - An active chat room is available for discussions on the latest developments regarding portfolio holdings [1]

Financial Data and Key Metrics Changes - Sales for Q3 2024 were $195 million, down 3% year-over-year, but within the guidance range [14] - Cash generated from operations increased nearly threefold, reaching approximately $35 million [8] - Net debt to adjusted EBITDA leverage ratio improved to 2.8x, with total debt down 8% or $41 million from the end of fiscal year 2023 [34] Business Line Data and Key Metrics Changes - Hydraulics sales declined 2% year-over-year, with gross profit dollars remaining flat [22] - Electronics sales decreased by 6%, although health and wellness segments showed strength [27] - Operating margin improved to 11.4%, up 450 basis points from last year, while non-GAAP adjusted operating margin reached 16.6%, up 290 basis points [20] Market Data and Key Metrics Changes - Sales in the APAC region were a bright spot, contrasting with declines in EMEA and the Americas [16] - Total fluid power shipments declined by 14.9% in August 2024 and 13.9% in September 2024 [23] - The U.S. agriculture market continues to decline, impacting hydraulic sales [24] Company Strategy and Development Direction - The company is focused on cost control, operational efficiencies, and product innovation to navigate current market challenges [9][18] - There is a commitment to maintaining investments in new products, with several launches planned before year-end [25] - The company aims to capitalize on growth opportunities as market conditions improve, with a cautious optimism for 2025 [42][44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of hurricanes on operations, estimating a revenue loss of approximately $10 million due to 18 lost manufacturing shifts [36] - The full-year sales guidance was adjusted to $800 million to $805 million, reflecting a 4% decline at the midpoint compared to 2023 [37] - Management expressed confidence in the ability to return to growth as market conditions stabilize, particularly in the second half of 2025 [42][44] Other Important Information - The company has maintained a strong balance sheet with cash and cash equivalents of $47 million and $325 million available on its revolver [34] - Free cash flow conversion rate was an impressive 244%, with inventory reduced by 7% since the end of the previous year [32] Q&A Session Summary Question: Can you separate out unique benefits in SG&A for Hydraulics? - Management noted a significant stock-based compensation accrual reversal in Q3, which contributed to the decline in SG&A [48][49] Question: How do you plan to address slow starts in 2025? - Management indicated a focus on discretionary expenses and cautious planning to avoid overcutting while preparing for potential market recovery [63] Question: What is the outlook for fluid power shipments? - Management does not expect a drastic recovery but is optimistic about gaining market share and improving delivery commitments [67][68] Question: How is APAC performing and what is the importance of local manufacturing? - APAC is not back to pre-pandemic levels, but local manufacturing strategies are proving beneficial, particularly in China [69][70] Question: What are the implications of recent election results on tariffs? - Management believes the localized supply chain mitigates tariff impacts, and potential corporate tax rate reductions could be beneficial [75] Question: What is the status of system win progress? - Management is excited about recent subsystem wins and the strategy to deepen customer relationships [89][90] Question: Will there be a catch-up period for revenue lost due to hurricanes? - Management expects volume recovery but acknowledges that it will depend on overall market improvements [94] Question: Which end markets are stabilizing? - Management highlighted the marine and powersports OEMs as potential early returners to growth, contingent on interest rate cuts [96]

Execute. Elevate. HELIOS TECHNOLOGIES (NYSE: HLIO) THIRD QUARTER 2024 EARNINGS SEAN BAGAN, INTERIM PRESIDENT, CEO & CFO | TANIA ALMOND, VP OF IR & CORPORATE COMMUNICATION November 6, 2024 SAFE HARBOR STATEMENT This presentation and oral statements made by management in connection herewith that are not historical facts are "forward‐looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward‐looking statements involve risks and uncertainties, and actual results may di ...

Core Insights - Helios Technologies reported revenue of $194.5 million for the quarter ended September 2024, reflecting a year-over-year decline of 3.4% [1] - The earnings per share (EPS) for the same period was $0.59, an increase from $0.44 a year ago, resulting in an EPS surprise of +5.36% compared to the consensus estimate of $0.56 [1] Revenue Performance - Net Sales in Hydraulics amounted to $129.40 million, which is a -2% change year over year and below the average estimate of $136.60 million [3] - Net Sales in Electronics were reported at $65.10 million, representing a -6.2% change year over year and also falling short of the average estimate of $71.50 million [3] Operating Income - Operating income for Hydraulics was $24.20 million, slightly below the average estimate of $24.30 million [3] - Operating income for Electronics was reported at $6.80 million, significantly lower than the average estimate of $10.80 million [3] Stock Performance - Over the past month, shares of Helios Technologies have returned +1.7%, outperforming the Zacks S&P 500 composite, which changed by -0.5% [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]