Helios Technologies posted second quarter results that were received positively by the market, with revenue and non-GAAP profitability both surpassing Wall Street’s expectations despite a modest year-over-year sales decline. Management attributed the performance to stronger-than-expected demand in its Hydraulics segment and operational discipline across the business. CEO Sean Bagan highlighted progress on portfolio optimization and cost management, noting, “We continued to reduce debt which is lower by $67 million from the year ago period, improving our net debt to adjusted EBITDA leverage ratio to 2.6x.” The company also benefited from foreign exchange tailwinds and incremental growth in targeted end markets.
Is now the time to buy HLIO? Find out in our full research report (it’s free).
Helios (HLIO) Q2 CY2025 Highlights:
- Revenue: $212.5 million vs analyst estimates of $201.5 million (3.4% year-on-year decline, 5.5% beat)
- Adjusted EPS: $0.59 vs analyst estimates of $0.50 (17.4% beat)
- Adjusted EBITDA: $39.5 million vs analyst estimates of $36.8 million (18.6% margin, 7.3% beat)
- Revenue Guidance for the full year is $820 million at the midpoint, above analyst estimates of $784.6 million
- Adjusted EPS guidance for the full year is $2.40 at the midpoint, beating analyst estimates by 24.2%
- Operating Margin: 10.3%, down from 11.8% in the same quarter last year
- Organic Revenue fell 4% year on year vs analyst estimates of 9.3% declines (525.7 basis point beat)
- Market Capitalization: $1.68 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Helios’s Q2 Earnings Call
- Jeffrey David Hammond (KeyBanc Capital Markets) asked which markets are showing the most favorable inflection. CEO Sean Bagan cited health and wellness and agriculture as recovering, and said all major businesses are expected to grow in the second half.
- Peter Alexander Kalemkerian (R.W. Baird) sought color on segment margin expectations for the second half. Bagan and Corporate Controller Jeremy Evans explained that margin uplift is expected, especially in Hydraulics, due to improved product mix and operational leverage.
- Peter Alexander Kalemkerian (R.W. Baird) also asked about longer-term margin goals and excess capacity in Hydraulics. Evans responded that no new capacity expansions are needed for several years, and that margin gains will come as volumes recover and the portfolio is refined.
- Nathan Hardie Jones (Stifel) inquired about competitive advantages from U.S. manufacturing and how Helios plans to leverage these. Bagan described recent customer wins and the ability to price competitively or expand share, especially in Hydraulics.
- Unidentified Analyst (CJS Securities) questioned the integration and revenue potential of the WaterGuru partnership. Evans detailed the recent launch and described how recurring revenues are expected to grow as more units are integrated by OEMs in coming years.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be watching (1) whether market recoveries in agriculture, health and wellness, and recreational segments translate into sustained sales growth, (2) the impact of portfolio changes—including the Custom Fluidpower divestiture—on consolidated margin improvement, and (3) evidence that Helios’ accelerated new product introductions are generating incremental revenue. Execution on cost discipline and further commercial organization refinements will also be important markers of success.
Helios currently trades at $50.53, up from $36.83 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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