Helios Technologies concluded 2025 with a strong fourth quarter, demonstrating a return to profitable sales growth driven by both its Hydraulics and Electronics segments. The company achieved record cash flow, reduced debt significantly, and expanded margins, positioning it for continued momentum in 2026.
Fourth quarter net sales increased 17% to $210.7 million, with full-year net sales growing 4% to $839 million, marking a return to annual growth.
positiveGross margin expanded 350 bps in Q4 to 33.6% and 100 bps for the full year to 32.3%, driven by volume, mix, and productivity enhancements.
positiveDiluted EPS surged 314% to $0.58 in Q4, and adjusted diluted EPS grew 145% to $0.81, with full-year adjusted diluted EPS up 22% to $2.56.
positiveGenerated record cash from operations of $46 million in Q4 and $127 million for FY25.
positiveReduced net-debt-to-adjusted EBITDA leverage ratio to 1.8x, down from 2.6x, and paid down $82 million in debt.
positiveElectronics segment sales grew 31% in Q4, driven by strength in recreational, health and wellness, mobile, and industrial end markets.
positiveAPAC region sales declined 15% in Q4, although pro forma sales increased 51% after accounting for the CFP divestiture.
attentionOperating income for the full year decreased 19% to $66.0 million, compared to $81.8 million in the prior year.
negativeOperating margin compressed 230 bps for the full year to 7.9%, down from 10.2% in the prior year.
negativeSEA expenses increased 14% for the quarter and 6% for the full year, impacting operating income.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Hydraulics | N/A | — | — | — | +8.0% |
Electronics | N/A | — | — | — | +11.0% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Finished 2025 ahead of recent expectations with all businesses reporting quarterly sales and earnings growth.
Returned to profitable sales growth, a testament to the global team's customer focus and execution.
Margins are strengthening, and working capital reduction efforts have yielded measurable results, leading to record cash flow and debt paydown.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.