In This Article:
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Revenue: $195 million, exceeding the top end of guidance range ($190 million).
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Adjusted EBITDA Margin: 17.3%.
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Cash from Operations: $19 million, a 7% increase over last year's first quarter.
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Inventory Reduction: 11% compared to the prior year.
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Debt Reduction: Paid down $4 million in debt, a 15% reduction over last year.
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Liquidity: Nearly $400 million available.
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Gross Margin: Contracted 110 basis points year over year.
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Operating Margin: 8.7%, down 90 basis points.
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Adjusted Operating Margin: 13.4%, down 110 basis points.
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Effective Tax Rate: 23.5%.
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Diluted EPS: $0.22, down 21% over last year.
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Diluted Non-GAAP EPS: $0.44, down 17% over last year, but up 33% over the fourth quarter.
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Hydraulic Sales Decline: 11% over the prior year period.
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Electronics Segment Sales: Up 24% year over year in Asia Pacific.
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Free Cash Flow Conversion Rate: 258% trailing 12 months.
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Capital Expenditures: $6.1 million, or 3% of sales.
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Net Debt to Adjusted EBITDA Leverage Ratio: 2.7 times, down from 3.1 times a year ago.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Helios Technologies Inc (NYSE:HLIO) exceeded its first quarter sales estimates with $195 million, surpassing the top end of its guidance range.
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The company achieved a 7% increase in cash from operations compared to the previous year, despite a sales contraction.
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Helios Technologies Inc (NYSE:HLIO) reduced its inventory by 11% year-over-year, improving working capital efficiency.
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The company paid down $4 million in debt during the first quarter, marking the seventh consecutive quarter of debt reduction.
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Helios Technologies Inc (NYSE:HLIO) is seeing positive signs in order intake, with orders exceeding sales for five consecutive months.
Negative Points
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Sales declined in all regions compared to the previous year, with foreign exchange negatively impacting sales by $2.3 million.
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Gross margin contracted by 110 basis points year-over-year due to lower volume and higher material costs.
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Operating income decreased by $3.3 million, with a 90 basis point decline in operating margin.
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Diluted EPS fell by 21% compared to the previous year, primarily due to lost leverage from an 8% decline in sales.
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The company faces potential $15 million tariff-related cost impacts in the second half of 2025, creating uncertainty in the macro environment.
Q & A Highlights
Q: Sean, can you elaborate on the specific actions you're taking following your listening tour with the company? A: Sean Bagan, Chief Financial Officer, explained that after being appointed CEO, he conducted a listening tour to gather internal and external feedback. Key actions include focusing on customer-centric go-to-market strategies, fortifying the executive team, and assessing the company's portfolio for strategic fit and financial performance.