Helios Technologies, Inc. · NYSE:HLIO
Helios Technologies — Q4 2024 Earnings Presentation
30 slides from Helios Technologies's earnings presentation, Feb 25, 2025
Slide 1: Fourth Quarter & Full Year 2024 Earnings Presentation
FOURTH QUARTER & FULL YEAR 2024 EARNINGS PRESENTATION February 24, 2025 SEAN BAGAN, PRESIDENT, CEO & CFO JEREMY EVANS, VP, CORPORATE CONTROLLER TANIA ALMOND, VP OF IR & CORPORATE COMMUNICATION
Slide 2: Safe Harbor
SAFE HARBOR This presentation and oral statements made by management in connection herewith that are not historical facts are “forward‐looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward‐looking statements involve risks and uncertainties, and actual
Slide 3: 2024: Year in Review
2024: YEAR IN REVIEW CONTINUED TO LEAD Hydraulics: Launched 11 new cartridge valves FIRSTS AND Record Cash Flow: Generated $122 million of including a high capacity electro-proportional cash from operations, up 46% over 2023 flow control valve and a commercialized ENERGEN valve Refinanced and De-lev
Slide 4: Q4 & Full Year 2024: Financial Overview
Q4 & FULL YEAR 2024: FINANCIAL OVERVIEW TOTAL COMPANY FINANCIAL RESULTS FOURTH QUARTER HIGHLIGHTS Helios Technologies (NYSE: HLIO) Solid execution delivers stronger earnings profile; Meaningful margin expansion on lower revenue ($ in millions except per share data) YoY YoY Foreign exchange headwinds
Slide 5: Q4 2024: Net Sales by Market and Region
Q4 2024: NET SALES BY MARKET AND REGION HEALTH & WELLNESS AND APAC DEMONSTRATE IMPROVEMENT ($ in millions) QUARTERLY TRENDS: SALES BY SEGMENT YoY Direction Market* 67% 33% $193.4 $179.5 Hydraulics Electronics Industrial Mobile $180 Agriculture Recreational Q4 23 Q4 24 Health & Wellness Other SALES B
Slide 6: Q4 2024: Gross Profit and Margin
Q4 2024: GROSS PROFIT AND MARGIN STRONG EXECUTION ON PRODUCTIVITY AND COST REDUCTIONS DRIVE MARGIN EXPANSION QUARTER $67.2 $70.6 $55.3 $60.5 $54.0 • Q424 YoY: gross profit expanded 150 bps despite the 7% decline in sales. Lower material costs and reductions in overhead more than offset the impact of
Slide 7: Q4 2024: Operating / Adjusted Operating Margin
Q4 2024: OPERATING / ADJUSTED OPERATING MARGIN CONTINUED EFFORTS TO REDUCE OPERATING STRUCTURE COSTS QUARTER • Q424 YoY: operating income grew 12% and margin 16.4% 16.6% 14.5% 13.3% expanded 120 bps driven by to the 7% decrease in SEA 12.6% 4.6% 5.2% 4.9% 5.9% expenses2. As a percentage of revenue S
Slide 8: Q4 2024: Net Income | Adjusted EBITDA & Margin
Q4 2024: NET INCOME | ADJUSTED EBITDA & MARGIN SOFTER SALES FROM WEAK MARKETS OFFSET WITH COST REDUCTIONS ($ in millions, except per share data) NET INCOME $13.6 $11.4 $9.2 $3.3 $4.8 • YoY: net income up 45% and diluted GAAP EPS up $0.04, or 40% Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Diluted GAAP EPS $0.10 $
Slide 9: Q4 2024: Hydraulics Segment
Q4 2024: HYDRAULICS SEGMENT RENEWED ENERGY TO DELIVER A CUSTOMER FOCUSED GO TO MARKET STRATEGY ($ in millions) YoY Sales: $119.7 10% Gross Profit: $35.5 14% Operating $16.5 18% Income: Q4 SALES BY REGION Q4 SALES BY CHANNEL 30% APAC 43% ~51% $120 Americas ~49% $120 OEM Distributor or 27% Integrator
Slide 10: Q4 2024: Electronics Segment
Q4 2024: ELECTRONICS SEGMENT ACCELERATING NEW PRODUCT DEVELOPMENT WITH REFINED NPI ROADMAP ($ in millions) YoY Sales: $59.8 0% Gross Profit: $18.5 31% Operating $5.4 440% Income: Q4 SALES BY REGION Q4 SALES BY CHANNEL 10% 82% ~78% APAC $60 Americas ~22% $60 OEM Distributor or 8% Integrator EMEA Note
Slide 11: 2024: Record Cash Generation for the Year
2024: RECORD CASH GENERATION FOR THE YEAR ($ in millions) Three Months Twelve Months (1) ADJUSTED FREE CASH FLOW Ended Ended 12/28/24 12/30/23 12/28/24 12/30/23 244% 204% Adjusted Net Cash Provided 83% $35.7 $33.7 $122.1 $86.6 $94.0 79% $95.1 by Operating Activities 126% $86.3 Capital Expenditures (
Slide 12: Q4 2024: Capital Structure
Q4 2024: CAPITAL STRUCTURE IMPROVED FINANCIAL FLEXIBILITY ($ in millions) DEBT PROFILE CAPITAL ALLOCATION PRIORITIES 1. 2. 3. 4. Pay Down Organic Returns to $450 Debt Investments Shareholders Acquisitions Total Debt $396 $150 Liquidity revolver / other Additional Details $352 undrawn • Net debt/adju
Slide 13: 2025: Initiating Full Year Outlook
2025: INITIATING FULL YEAR OUTLOOK TOTAL NET SALES OUTLOOK ASSUMPTIONS OTHER KEY 2024 2025 METRICS ACTUAL OUTLOOK -4% to +2% • More challenging first half versus second half $775M to $825M • Electronics segment to outpace Hydraulics Net Income $39.0 $46 - $53 Relative to 2024 at $805.9M segment driv
Slide 14: 2025: Segment Outlook
2025: SEGMENT OUTLOOK HYDRAULICS ELECTRONICS Regional Trends AMER EMEA APAC AMER EMEA APAC Positive Catalysts Health & Wellness Commercial Food Service Stable / Moderate Lift Centers of Excellence Recurring Revenue Flat / No Signs Yet of Bounce Mobile, Recreational Recreational, Marine Agriculture,
Slide 15: 2025: Financial Priorities
2025: FINANCIAL PRIORITIES 1 2 3 4 5 Drive Operating Shorten Cash Leverage Strong Return to Growth Reduce Debt Leverage Conversion Cycle Foundation With higher volumes Through improved Executing on profitable and disciplined Utilizing free cash flow To scale and elevate to working capital sales grow
Slide 16: 2025: Key Focus Areas
2025: KEY FOCUS AREAS GO TO MARKET Institutionalize the engine to track and drive sales funnel, cross-sell, and pipeline management STRUCTURE ORGANIC GROWTH Protect and grow base business through capturing more wallet share of existing customers PROFIT IMPROVEMENT Implement ongoing cost and operatio
Slide 17: Supplemental Information
MMO Ca cir s SUPPLEMENTAL INFORMATION
Slide 18: Market Indicators: Purchasing Managers Indices
MARKET INDICATORS PURCHASING MANAGERS INDICES (PMI) Manufacturing PMI 52 51 50 49 48 47 46 45 44 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2025 Source & Note 1: https://www.ismworld.org/supply-management-news-and-reports/reports/ism- Sourc
Slide 19: Market Indicators: National Fluid Power Association
MARKET INDICATORS NATIONAL FLUID POWER ASSOCIATION (NFPA) Source & Note: https://www.powermotiontech.com/hydraulics/news/55267480/national-fluid-power-association-nfpa-fluid- power-shipments-stay-down-to-close-out-2024 “The National Fluid Power Association (NFPA) has published its latest data for fl
Slide 20: Market Indicators: Agriculture Market
MARKET INDICATORS AGRICULTURE MARKET Source: https://ag.purdue.edu/commercialag/ageconomybarometer/u-s-farmers-retain-optmistic- Source and Note: https://ag.purdue.edu/commercialag/ageconomybarometer/u-s-farmers- outlook-for-2025-despite-ag-trade-uncertainty/ retain-optmistic-outlook-for-2025-despit
Slide 21: Segment Data
SEGMENT DATA (Unaudited) ($ in millions) For the Three Months Ended For the Year Ended Dec ember 2 8 , Dec ember 3 0 , Dec ember 2 8 , Dec ember 3 0 , 2024 2023 2024 2023 Net Sales: Hydraulics $ 119.7 $ 133.7 $ 537.2 $ 565.8 Electronics 59.8 59.7 268.7 269.8 Consolidated $ 179.5 $ 193.4 $ 805.9 $ 83
Slide 22: Organic and Acquired Net Sales
ORGANIC AND ACQUIRED NET SALES1 (Unaudited) ($ in millions) F o r t he Y e a r F o r t he Y e a r F o r t he T hre e M o nt hs E nde d E nde d F o r t he T hre e M o nt hs E nde d E nde d A pril 1, J uly 1, S e pt e m be r 3 0 , D e c e m be r 3 0 , D e c e m be r 3 0 , M a rc h 3 0 , J une 2 9 , S
Slide 23: Net Sales by Geographic Region & Segment
NET SALES BY GEOGRAPHIC REGION & SEGMENT (Unaudited) 2024 ($ in millions) Q1 % Ch an ge Q2 % Ch an ge Q3 % Ch an ge Q4 % Ch an ge Fu ll Year % Ch an ge Am er ic a s: Hydraulics $ 55.8 (4%) $ 59.5 (2%) $ 52.1 (6%) $ 51.7 (14%) $ 219.1 (7%) Electronics 58.1 5% $ 57.8 (9%) $ 50.9 (14%) $ 49.1 1% $ 215.
Slide 24: Non-GAAP Adjusted Operating Income & Margin Reconciliation
NON-GAAP ADJUSTED OPERATING INCOME & (Unaudited) NON-GAAP ADJUSTED OPERATING MARGIN ($ in millions) RECONCILIATION F o r t he T hre e M o nt hs E nde d F o r t he Y e a r E nde d D e c e m be r 2 8 , D e c e m be r 3 0 , D e c e m be r 2 8 , D e c e m be r 3 0 , 2024 M a rgin 2023 M a rgin 2024 M a
Slide 25: Non-GAAP Adjusted Net Income & Per Diluted Share Reconciliation
NON-GAAP ADJUSTED NET INCOME & (Unaudited) NON-GAAP ADJUSTED NET INCOME PER DILUTED SHARE ($ in millions) RECONCILIATION F o r t he T hre e M o nt hs E nde d F o r t he Y e a r E nde d D e c e m be r 2 8 , P e r D ilut e d D e c e m be r 3 0 , P e r D ilut e d D e c e m be r 2 8 , P e r D ilut e d D
Slide 26: Non-GAAP Adjusted EBITDA & Margin Reconciliation
NON-GAAP ADJUSTED EBITDA & (Unaudited) NON-GAAP ADJUSTED EBITDA MARGIN RECONCILIATION ($ in millions) D e c e m be r 2 8 , D e c e m be r 3 0 , D e c e m be r 2 8 , D e c e m be r 3 0 , 2024 M a rgin 2023 M a rgin 2024 M a rgin 2023 M a rgin N e t inc o m e $ 4 .8 2 .7 % $ 3 .3 1.7 % $ 3 9 .0 4 .8 %
Slide 27: Non-GAAP Adjusted Free Cash Flow Reconciliation
NON-GAAP ADJUSTED FREE CASH FLOW RECONCILIATION (Unaudited) For the Year Ended ($ in millions) Dec ember 3 0 , Dec ember 2 9 , Dec ember 2 8 , January 2 , January 1 , Dec ember 3 1 , Dec ember 3 0 , Dec ember 2 8 , 2017 2018 2019 2021 2022 2022 2023 2024 Net c ash provided by operating ac tivities $
Slide 28: Non-GAAP Net Sales Growth Reconciliation
NON-GAAP NET SALES GROWTH RECONCILIATION (Unaudited) ($ in millions) Fo r t h e Th r ee Mo n t h s En d ed Fo r t h e Year En d ed H y d r au lic s Elec t r o n ic s Co n so lid at ed H y d r au lic s Elec t r o n ic s Co n so lid at ed Q4 2 0 2 4 Net Sales $ 119.7 $ 59.8 $ 179.5 $ 537.2 $ 268.7 $ 8
Slide 29: Net Debt to Non-GAAP Adjusted EBITDA Reconciliation
NET DEBT TO NON-GAAP ADJUSTED EBITDA (Unaudited) ($ in millions) RECONCILIATION As of Dec ember 2 8 , 2 0 2 4 Current portion of long-term non-revolving debt, net 16.0 Revolving lines of credit 150.3 Long-term non-revolving debt, net 283.2 Total debt 4 4 9 .5 Less: Cash and cash equivalents 44.1 Net
Slide 30: heliostechnologies.com
HELIOSTECHNOLOGIES.COM 7456 16th Street East Sarasota, FL 34243 941.362.1200