HELIOS TECHNOLOGIES, INC. SEC 10-Q Report

Helios Technologies, Inc., a global leader in highly engineered motion control and electronic controls technology, has released its Form 10-Q report for the second quarter. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting the challenges and strategic initiatives undertaken during the period.

Financial Highlights

• Net sales: $212.5 million, a decrease of 3.4% compared to the prior year second quarter, impacted by reduced demand in recreational, industrial, and mobile end markets.
• Gross profit: $67.5 million, a decrease of 4.4% from the prior year second quarter, with gross margin slightly down to 31.8% due to lower volume and higher material costs.
• Operating income: $21.9 million, a decrease of 15.8% from the prior year second quarter, with operating income margin down to 10.3% due to higher operating expenses.
• Net income: $11.4 million, a decrease of 16.2% from the prior year second quarter, reflecting lower sales and higher costs.
• Diluted net income per share: $0.34, a decrease of 17.1% from the prior year second quarter, reflecting the overall decline in net income.

Business Highlights

Revenue Segments

• Hydraulics: The Hydraulics segment experienced a decrease in net sales by 3.3% in the second quarter, primarily due to reduced demand in industrial and mobile end markets. However, sales to the agriculture market remained flat compared to the prior year.
• Electronics: The Electronics segment saw a 3.5% decline in net sales in the second quarter, with decreases in the recreational and agriculture end markets, while sales in the industrial end market increased slightly.

Geographical Performance

• Americas: In the Hydraulics segment, sales in the Americas declined by 8.9% in the second quarter, driven by generally softer demand across the region.
• EMEA: The EMEA region saw a 7.7% increase in Hydraulics sales, driven by stronger demand for quick release coupling products, despite a generally challenging market environment.
• APAC: The APAC region experienced a 6.5% decline in Hydraulics sales, with decreased demand in China, Australia, India, and Korea. In the Electronics segment, sales in the APAC region increased by 27.0% in the second quarter, driven by strong performance in the health and wellness end market.

Restructuring Activities

• The company completed restructuring activities within the Hydraulics segment, establishing two new Regional Operational Centers of Excellence in Indiana and Florida, and expanded capabilities in Tijuana, Mexico for the Electronics segment.

Future Outlook

• Economic Conditions: The company anticipates continued challenging macroeconomic conditions, including inflationary pressures and geopolitical uncertainties, and is focusing on liquidity management, pricing discipline, and cost-saving initiatives to mitigate risks.
• Tariffs: The company is monitoring the dynamic tariff environment, particularly tariffs on imports from China, and plans to leverage regional production capabilities and local sourcing to mitigate potential impacts.

SEC Filing: HELIOS TECHNOLOGIES, INC. [ HLIO ] - 10-Q - Aug. 05, 2025