Core Insights - Helios Technologies experienced a year-over-year sales increase in Q3, but the market reacted negatively due to concerns about future momentum and margin sustainability [1] - The Electronics segment, particularly Enovation Controls, showed strong performance, with management attributing results to renewed go-to-market strategies and higher customer engagement [1] - CEO Sean Bagan described the quarter as a "turning point," while acknowledging the impact of a goodwill write-down related to the i3PD acquisition and ongoing portfolio adjustments [1] Financial Performance - Revenue for Q3 was $220.3 million, exceeding analyst estimates of $212.5 million, representing a 13.3% year-on-year growth and a 3.7% beat [6] - Adjusted EPS was $0.72, beating analyst estimates of $0.66 by 9.8% [6] - Adjusted EBITDA was $45.1 million, with a margin of 20.5%, surpassing analyst estimates of $42.36 million by 6.5% [6] - Revenue guidance for Q4 is $197 million at the midpoint, which is below analyst estimates of $201.2 million [6] - Full-year Adjusted EPS guidance was raised to $2.47 at the midpoint, reflecting a 2.7% increase [6] - Operating margin decreased to 0.6% from 11.4% in the same quarter last year [6] - Organic revenue rose 12% year-on-year, exceeding analyst estimates of 7.5% growth by 454.1 basis points [6] - Market capitalization stands at $1.80 billion [6] Analyst Insights - Christopher Moore from CJS Securities inquired about recent commercial wins, with CEO Bagan highlighting new contracts in hydraulics and electronics, including a significant AGCO win [6] - Bagan noted that achieving mid-20% margins requires higher sales volumes and cost discipline, emphasizing the need for a healthier mix and operational leverage [6] - Jeffrey Hammond from KeyBanc Capital Markets asked about the recreational vehicle market, with Bagan stating that retail demand is steady and channel inventory levels have normalized [6] - Joseph Grabowski from Baird raised questions about unusual items in the Electronics segment, to which Bagan acknowledged that approximately $3 million of Q4 sales were pulled into Q3, but underlying demand remains strong [6] - Jon Braatz from Kansas City Capital questioned the i3PD goodwill impairment, with CFO Jeremy Evans explaining that engineering resources have been redeployed to core projects [6]