Core Insights - Helios Technologies' operating company, Enovation Controls, has been recognized as one of the 2025 Best Workplaces by Fortune Media and Great Place To Work [1] Company Summary - Enovation Controls, a subsidiary of Helios Technologies, has achieved a notable accolade by being named among the best workplaces for 2025 [1]

Core Viewpoint - The article emphasizes the importance of identifying and maintaining trends in short-term investing, highlighting that sound fundamentals and positive earnings estimates are crucial for sustaining momentum in stock prices [1]. Group 1: Stock Screening and Selection - The "Recent Price Strength" screen is a unique short-term trading strategy that helps identify stocks with strong fundamentals capable of maintaining an uptrend [2]. - Stocks that pass this screen are typically trading in the upper portion of their 52-week high-low range, indicating bullish sentiment [2]. Group 2: Helios Technologies (HLIO) Analysis - Helios Technologies (HLIO) has shown a significant price increase of 67.7% over the past 12 weeks, indicating strong investor interest [3]. - The stock has also increased by 53.1% over the last four weeks, suggesting that the upward trend is still intact [4]. - HLIO is currently trading at 90.6% of its 52-week high-low range, indicating a potential breakout [5]. Group 3: Fundamental Strength Indicators - HLIO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [5]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6]. Group 4: Broader Investment Strategy - In addition to HLIO, there are multiple stocks that meet the criteria of the "Recent Price Strength" screen, suggesting a variety of investment opportunities [7]. - The article encourages investors to explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [7].

Core Viewpoint - Helios Technologies (HLIO) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise their earnings estimates [1][2]. Earnings Estimate Revisions - The upward trend in earnings estimate revisions reflects growing optimism among analysts regarding Helios Technologies' earnings prospects, which is expected to positively impact its stock price [2]. - The current-quarter earnings estimate is projected at $0.64 per share, indicating a year-over-year increase of +8.5%, with a 28% rise in the Zacks Consensus Estimate over the last 30 days [6]. - For the full year, the earnings estimate stands at $2.40 per share, representing a +14.3% change from the previous year, with a 26.32% increase in the consensus estimate during the same period [7][8]. Zacks Rank and Performance - Helios Technologies has achieved a Zacks Rank 1 (Strong Buy) due to strong agreement among analysts in revising earnings estimates upward, which historically correlates with stock price performance [3][9]. - Stocks with a Zacks Rank 1 and 2 (Buy) have shown significant outperformance compared to the S&P 500 [9]. Recent Stock Performance - Helios Technologies shares have increased by 42% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [10].

Technical Analysis - Helios Technologies, Inc (HLIO) has reached a key level of support, with its 50-day simple moving average crossing above the 200-day simple moving average, indicating a "golden cross" [1] - A golden cross is a bullish technical chart pattern that suggests a potential breakout, formed when a stock's short-term moving average surpasses its long-term moving average [1][2] Market Performance - Over the past four weeks, HLIO has gained 38.3%, indicating strong upward momentum [3] - The stock currently holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting it may be poised for further breakout [3] Earnings Expectations - There has been one upward revision in earnings expectations for the current quarter, with no downward revisions in the past 60 days, further supporting the bullish outlook [3] - The Zacks Consensus Estimate for HLIO has also increased, reinforcing investor confidence in the stock's upward trend [3][4] Investment Outlook - The combination of positive earnings estimate revisions and the technical breakout signals suggests that investors should monitor HLIO for potential gains in the near future [4]

Core Insights - Galaxy Digital Inc. has closed a $1.4 billion project financing facility to support the development of its Helios datacenter campus in West Texas, aimed at AI and HPC operations under a long-term agreement with CoreWeave [1][2] - The financing includes a $350 million equity contribution from Galaxy, with the remaining costs covered by the Debt Facility, which is secured at 80% loan to cost and has a 36-month term [2] - CoreWeave has committed to a total of 800 MW of power capacity at the Helios datacenter, with Galaxy expecting to generate over $1 billion in average annual revenue over the 15-year term of the agreements [3][4] Company Strategy - The financing is part of Galaxy's strategy to diversify its business model beyond cryptocurrency into the broader AI infrastructure space [2] - Galaxy aims to build one of the largest AI datacenter campuses globally, with 2.7 GW of additional power capacity under various stages of load study, and a potential full buildout capacity of up to 3.5 GW [5][6] - The company is focused on executing its long-term infrastructure plan with discipline and strategy to transform Helios into a leading AI datacenter campus [6]

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in short-term investing, highlighting that while price momentum can be profitable, ensuring its longevity is crucial for success [1][2]. Group 1: Stock Performance - Helios Technologies (HLIO) has shown a significant price increase of 73.2% over the past 12 weeks, indicating strong investor interest [4]. - In the last four weeks, HLIO's stock price has risen by 50.8%, suggesting that the upward trend is still intact [5]. - Currently, HLIO is trading at 87.8% of its 52-week high-low range, indicating a potential breakout opportunity [6]. Group 2: Fundamental Strength - HLIO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - The Zacks Rank system has a strong historical performance, with Rank 1 stocks generating an average annual return of +25% since 1988 [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks with sufficient fundamental strength to maintain their upward momentum [3]. - In addition to HLIO, there are other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8].

Financial Data and Key Metrics Changes - Sales for the second quarter were $212 million, exceeding the outlook of $206 million, with foreign exchange contributing approximately $3 million to this overachievement [11][19] - Adjusted EBITDA margin was 18.6%, above expectations, despite being impacted by unfavorable product mix and tariff effects [11][12] - Cash from operations reached near-record levels of $37 million, marking a 10% improvement over the previous year [11][26] - Net debt decreased by $67 million year-over-year, improving the net debt to adjusted EBITDA leverage ratio to 2.6 times [12][28] Business Line Data and Key Metrics Changes - Hydraulic sales declined by 3% year-over-year, reflecting weakness in industrial and mobile end markets, although agriculture showed signs of stabilization [23] - Electronics segment sales were down 4% year-over-year, with significant declines in the recreational market [24] - Hydraulics gross profit and gross margin grew by 4% and 220 basis points year-over-year, respectively, due to lower material and direct labor costs [23] - Electronics gross profit declined by 18%, with a 530 basis point drop in gross margin primarily due to higher freight and duties costs [24] Market Data and Key Metrics Changes - EMEA region sales grew by 5% year-over-year, while sales in The Americas and APAC declined [20] - APAC electronics segment sales increased by 27% year-over-year, driven by the health and wellness end market [20] - The overall sales comparables remain negative year-over-year, but profitability improved sequentially with increased sales volume [20] Company Strategy and Development Direction - The company is refocusing its go-to-market strategy and prioritizing capital allocation to improve return on invested capital (ROIC) [12][14] - A definitive agreement was signed to sell Custom Fluid Power for approximately $54 million, which is expected to improve margin rates within the Hydraulics segment [12][14] - The company aims to achieve a sub-two times leverage ratio to enhance capital allocation flexibility [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in various markets, including agriculture and health and wellness, with expectations for growth in the second half of the year [31][34] - The company anticipates third-quarter sales in the range of $208 million to $215 million, representing a potential 9% increase year-over-year [35] - Management acknowledged ongoing external challenges, including tariff changes and stagnant interest rates, but remains focused on long-term growth prospects [34][39] Other Important Information - The company has made significant progress in cash management, achieving a trailing twelve months free cash flow conversion rate of 291% [26] - The strategic divestiture of Custom Fluid Power is expected to provide greater flexibility for capital deployment decisions [39] - The company is committed to improving margins across all business lines and evaluating opportunities within its product portfolio [40] Q&A Session Summary Question: Market Inflections and Customer Engagement - Management noted growth in health and wellness and signs of recovery in agriculture, with expectations for all main businesses to grow in the second half of the year [46][48] Question: Non-Core Business Considerations - The divestiture of Custom Fluid Power was strategic, as it did not align with the core business, and no immediate non-core divestitures are planned [50][53] Question: Margin Expectations for the Second Half - Management did not provide specific segment margin guidance but indicated expectations for revenue growth in hydraulics and electronics, with potential margin uplift [62][64] Question: Competitive Positioning in the US - The company highlighted its competitive advantage due to its US manufacturing footprint, which allows for better pricing strategies and differentiation in the market [77][80] Question: Organizational Structure Changes - Management is focused on restructuring to improve efficiency and has made progress in aligning teams with brand and product focus [84][86] Question: Update on Water Guru Partnership - The partnership is expected to ramp up, with initial product launches completed, but significant revenue impact is not anticipated until 2026 [96] Question: Impact of Interest Rate Changes - A reduction in interest rates would be beneficial, particularly for consumer discretionary segments, but the company is prepared to grow without relying on this [98][99]

Financial Performance - Q2 2025 revenue was $212 million, a decrease of 3% year-over-year[14] - Adjusted EBITDA margin for Q2 2025 was 18.6%, down 150 bps year-over-year[14] - Diluted Non-GAAP EPS for Q2 2025 was $0.59, down 8% year-over-year[14] - The company is actively managing the Helios portfolio[12] Divestiture and Acquisition - Helios signed a definitive agreement to sell its Australian Hydraulic Services business (Custom Fluidpower) to Questas Group for approximately $54 million USD[11] - Custom Fluidpower had full-year 2024 sales of $61 million USD and adjusted EBITDA of $8 million USD[11] - Cash proceeds from the divestiture will be primarily used for debt reduction[11] Tariff Impact - Estimated total direct tariff cost impacts for the second half of 2025 are approximately $8 million USD[57] - China and the European Union tariffs represent the greatest impact to Helios[61] Outlook - The company issued full-year 2025 net sales guidance of $810 million to $830 million, representing a +1% to +3% change relative to 2024[66] - The company issued full-year 2025 adjusted EBITDA margin guidance of 18.5% to 19.5%, representing a -70 bps to +30 bps change relative to 2024[66] - The company issued full-year 2025 diluted Non-GAAP EPS guidance of $2.30 to $2.50, representing a +10% to +19% change relative to 2024[66]

Core Insights - Helios Technologies reported Q2 2025 earnings with GAAP sales of $212.5 million, exceeding Wall Street's estimate of $202.99 million, while non-GAAP EPS reached $0.59, surpassing the consensus of $0.51 [1][2] - Despite the revenue beat, both GAAP revenue and net income declined year-over-year, indicating ongoing pressures in certain business units and regions [1][5] - Management described the quarter as a sequential rebound but acknowledged structural challenges and macro risks, particularly in the Electronics segment and global tariff uncertainties [1][12] Financial Performance - Q2 2025 Non-GAAP EPS was $0.59, down 8% from $0.64 in Q2 2024 [2] - GAAP revenue was $212.5 million, a 3% decline from $219.9 million in Q2 2024 [2] - GAAP diluted EPS fell 17% to $0.34 compared to $0.41 in Q2 2024 [2] - Adjusted EBITDA margin decreased to 18.6%, down from 20.1% year-over-year [2][8] Segment Performance - The Hydraulics segment generated GAAP net sales of $140.9 million, with EMEA region sales increasing by 8%, while the Americas and APAC regions saw declines of 9% and 6%, respectively [6] - The Electronics segment reported GAAP revenues of $71.6 million, down 4% year-over-year, despite a 27% increase in APAC [7] - Electronics gross margin fell from 34.6% in Q2 2024 to 29.3%, with operating margin dropping to 8.2% [7] Strategic Initiatives - The company is focusing on a disciplined acquisition strategy, product innovation, and diversification into new markets such as defense and food service [4] - Recent tactical actions include the divestiture of the Custom Fluidpower business for approximately $83 million AUD and ongoing product advancements [10] - Management has emphasized a proactive go-to-market approach and targeting growth opportunities from shifting global trade dynamics [4] Management Outlook - Full-year FY2025 guidance has been upgraded to a sales outlook of $810–830 million, adjusted EBITDA margin of 18.5–19.5%, and Non-GAAP EPS of $2.30–$2.50 [12] - Q3 2025 expectations include net sales between $208 million and $215 million, with an adjusted EBITDA margin of 19.5–20.5% and Non-GAAP EPS between $0.60–$0.68 [12] Operational Highlights - Cash from operations reached $37.0 million, the highest since late 2019, and debt declined by $67 million compared to the prior year [8][9] - The company has maintained a quarterly dividend of $0.09 per share for 114 consecutive quarters [11][15]

Core Viewpoint - Helios Technologies reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.49 per share, although down from $0.64 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +20.41%, with the company previously expected to earn $0.36 per share but actually earning $0.44, resulting in a surprise of +22.22% [2] - Revenues for the quarter were $212.5 million, surpassing the Zacks Consensus Estimate by 6.09%, compared to $219.9 million in the same quarter last year [3] - Over the last four quarters, Helios Technologies has consistently surpassed consensus EPS estimates four times and revenue estimates three times [2][3] Market Performance - Helios Technologies shares have declined approximately 20.6% since the beginning of the year, contrasting with a 6.1% gain in the S&P 500 [4] - The company's current Zacks Rank is 1 (Strong Buy), indicating expectations for the stock to outperform the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $198.9 million, and for the current fiscal year, it is $1.90 on revenues of $789.4 million [8] - The outlook for the industry, specifically the Manufacturing - General Industrial sector, is favorable, ranking in the top 16% of over 250 Zacks industries [9]