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1. Company Snapshot

1.a. Company Description

Helios Technologies, Inc., together with its subsidiaries, develops, manufactures, and sells solutions for the hydraulics and electronics markets in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.The company operates in two segments, Hydraulics and Electronics.The Hydraulics segment offers cartridge valve technology products to control rates and direction of fluid flow, and to regulate and control pressures for industrial and mobile applications; quick release coupling solutions for the agriculture, construction equipment, and industrial markets; and hydraulic system design that provides engineered solutions for machine users, manufacturers, or designers.


This segment sells its products under the Sun Hydraulics, Faster, and Custom Fluidpower brands.The Electronics segment offers displays, controls, and instrumentation products for off-highway, recreational and commercial marine, power sports and specialty vehicles, agriculture and water pumping, power generation, health and wellness, and engine-driven industrial equipment markets.This segment sells its products under the Enovation Controls, Murphy, and Balboa Water Group brands.


It sells its hydraulic products primarily through value-add distributors, as well as directly to original equipment manufacturers; and electronic products to original equipment manufacturer customers.The company was formerly known as Sun Hydraulics Corporation and changed its name to Helios Technologies, Inc.in June 2019.


Helios Technologies, Inc.was founded in 1970 and is headquartered in Sarasota, Florida.

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1.b. Last Insights on HLIO

Negative drivers behind Helios Technologies' recent stock performance include the company's challenging macro environment, which impacted its Q4 2024 financial results. Despite delivering expanded margins and record cash generation, the company's earnings were likely hurt by macro headwinds. Additionally, the recent appointment of a new CEO, Sean P. Bagan, may have introduced uncertainty, potentially affecting investor sentiment.

1.c. Company Highlights

2. Helios Technologies' Q3 2025 Earnings: Strong Revenue Growth and Margin Expansion

Helios Technologies delivered a robust third-quarter 2025 performance, with revenues increasing 13% to $220 million, driven by growth across all regions and business segments. The Electronics segment grew 21%, while Hydraulics increased 9%. The company's adjusted EBITDA margin was over 20%, and the net debt-to-adjusted EBITDA leverage ratio was 2.4x. The company reported a non-GAAP EPS of $0.72, beating estimates of $0.65. The strong revenue growth and margin expansion were key highlights of the quarter.

Publication Date: Nov -17

📋 Highlights
  • Q3 Sales Growth:: Achieved 13% increase to $220 million, driven by 21% growth in Electronics and 9% in Hydraulics.
  • Adjusted EBITDA Margin:: Maintained over 20%, with leverage ratio at 2.4x net debt-to-adjusted EBITDA.
  • Full-Year Guidance:: Projects 4% sales growth to $825 million and adjusted EBITDA margin of 19.1–19.4%.
  • Free Cash Flow & Liquidity:: Generated $18.5 million in free cash flow and held $55 million in cash and equivalents.
  • CFP Divestiture Impact:: Closed sale of Custom Fluidpower with $21 million gain, boosting 2026 growth from a $780 million base.

Segment Performance

The Electronics segment saw its strongest sales in three years, with Enovation Controls having a record quarter. The Hydraulics segment also performed well, driven by growth in the AG market. The company's Faster business was a key contributor to this growth. The recent win with AGCO, a long-term customer, for commonizing hydraulic attachments across their European brands, is a significant milestone.

Outlook and Guidance

Helios Technologies expects fourth-quarter sales to be $192-202 million, up 10% year-over-year, and adjusted EBITDA margin to be 20-21%. For the full year, sales growth is expected to be 4% over 2024, and adjusted EBITDA margin is expected to be 19.1-19.4%. The company's guidance suggests continued momentum in 2026, driven by its go-to-market strategy and innovation. As Sean Bagan, CEO, noted, "we don't need to see a significant recovery in end markets like agriculture and construction to see revenue growth in 2026."

Valuation and Return Metrics

With a P/E Ratio of 52.8 and EV/EBITDA of 17.75, the company's valuation appears to be pricing in significant growth expectations. The company's return metrics, including ROIC of 2.85% and ROE of 3.78%, suggest room for improvement. However, the Dividend Yield of 0.67% and Free Cash Flow Yield of 5.09% provide a relatively attractive return profile.

Growth Prospects

The company's growth prospects appear promising, driven by its innovation pipeline, including new products like the multi-Faster. The i3 acquisition is expected to benefit the broader Helios portfolio, rather than being a standalone business. The company's focus on stopping destocking and producing more machines, even if end demand isn't growing, is expected to drive growth in 2026. Analysts estimate next year's revenue growth at 1.0%, but the company's guidance suggests potential for upside.

3. NewsRoom

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Helios Technologies, Inc. $HLIO Shares Bought by Geode Capital Management LLC

Nov -29

Source: defenseworld.net

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Is Helios Technologies (HLIO) Stock Outpacing Its Industrial Products Peers This Year?

Nov -25

Source: zacks.com

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Helios Technologies Promotes Jeremy Evans to Chief Financial Officer

Nov -17

Source: businesswire.com

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Envestnet Asset Management Inc. Has $3.29 Million Stake in Helios Technologies, Inc. $HLIO

Nov -16

Source: defenseworld.net

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Sun Hydraulics, a Helios Technologies Operating Company, Receives 2025 LEAP Award in the Motion Control Category for ENERGEN™

Nov -13

Source: businesswire.com

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Helios Tower: No Sign Of Slowdown, Buy Confirmed

Nov -13

Source: seekingalpha.com

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Wall Street Analysts Think Helios Technologies (HLIO) Could Surge 26.75%: Read This Before Placing a Bet

Nov -12

Source: zacks.com

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Faster, a Helios Technologies Operating Company, Launches Next-Generation Casting Solution; It's Ingenious, Indeed GenYus

Nov -10

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.82%)

6. Segments

Hydraulics

Expected Growth: 5.5%

Helios Technologies' Hydraulics segment growth of 5.5% is driven by increasing demand for precision agriculture, construction, and industrial equipment. Additionally, the company's focus on innovation, operational efficiency, and strategic acquisitions contribute to its growth momentum.

Electronics

Expected Growth: 6.5%

Helios Technologies' Electronics segment growth of 6.5% is driven by increasing demand for advanced irrigation systems, rising adoption of precision agriculture, and growing need for efficient water management solutions. Additionally, the company's strategic acquisitions and investments in research and development have expanded its product offerings and enhanced its competitive position.

7. Detailed Products

Sunnex

Sunnex is a line of hydraulic cartridge valves, manifold systems, and electro-hydraulic controllers designed for industrial and mobile applications.

Fulton

Fulton is a brand of proportional valves, directional control valves, and hydraulic manifold systems for industrial and mobile applications.

Nordborg

Nordborg is a brand of hydraulic pumps, motors, and power units for industrial and mobile applications.

Custom Hydraulics

Custom Hydraulics is a brand of custom-designed hydraulic systems and components for industrial and mobile applications.

Electro-Hydraulic Controllers

Electro-Hydraulic Controllers are electronic control systems for hydraulic systems, providing precise control and monitoring of hydraulic functions.

8. Helios Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Helios Technologies, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the increasing demand for sustainable and eco-friendly products.

Bargaining Power Of Customers

Helios Technologies, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are highly specialized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Helios Technologies, Inc. relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's strong relationships with suppliers and its ability to negotiate prices mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including significant capital requirements and the need for specialized expertise.

Intensity Of Rivalry

The industry in which Helios Technologies, Inc. operates is highly competitive, with several established players competing for market share. The company must continually innovate and improve its products to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.07%
Debt Cost 8.60%
Equity Weight 61.93%
Equity Cost 8.60%
WACC 8.60%
Leverage 61.47%

11. Quality Control: Helios Technologies, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Omega Flex

A-Score: 4.7/10

Value: 4.4

Growth: 3.2

Quality: 8.2

Yield: 6.0

Momentum: 0.5

Volatility: 5.7

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Xometry

A-Score: 4.6/10

Value: 6.6

Growth: 6.3

Quality: 2.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

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American Superconductor

A-Score: 4.1/10

Value: 0.2

Growth: 7.2

Quality: 6.1

Yield: 0.0

Momentum: 9.5

Volatility: 1.3

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Broadwind

A-Score: 3.9/10

Value: 8.2

Growth: 5.0

Quality: 3.6

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

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Helios Technologies

A-Score: 3.8/10

Value: 3.0

Growth: 4.0

Quality: 5.8

Yield: 1.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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TPI Composites

A-Score: 3.0/10

Value: 10.0

Growth: 3.2

Quality: 4.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

54.38$

Current Price

54.38$

Potential

-0.00%

Expected Cash-Flows