Helios Technologies(US:HLIO)2025-02-24 21:24Financial 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]