Slide 1: Second Quarter 2025 Earnings Presentation
SECOND QUARTER 2025 EARNINGS PRESENTATION AUGUST 4, 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 contains “forward‐looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward‐looking statements involve risks and uncertainties, an
Slide 3: Q2 2025: Executive Summary
Q2 2025: EXECUTIVE SUMMARY Q2 FINANCIAL RESULTS STRONGER THAN EXPECTED Revenue, Adjusted EBITDA1 Margin, Diluted Non-GAAP EPS1, & Cash Flow exceeded Helios guidance/expectations REFINED FOCUS IMPROVING OUR EXECUTION Met or exceeded our quarterly outlook for 7th consecutive quarter; Reduced Debt for
Slide 4: Divestiture Announcement
DIVESTITURE ANNOUNCEMENT SIGNED DEFINITIVE AGREEMENT TO SELL AUSTRALIAN HYDRAULIC SERVICES BUSINESS HIGHLIGHTS OF THE TRANSACTION Helios will sell Custom Fluidpower (CFP) to Questas Group Revenue Transaction value of ~$83M AUD in cash (~$54M USD equivalent) Originally purchased CFP in 2018 for $35M
Slide 5: Q2 2025: Financial Highlights
Q2 2025: FINANCIAL HIGHLIGHTS TOTAL COMPANY FINANCIAL RESULTS ($ in millions except per share data) $212M 18.6% Revenue $0.59 Net Adjusted EBITDA Diluted Non-GAAP Sales Margin2 EPS2 Down 3% YoY Down 150 bps YoY Down 8% YoY $6M above high end of outlook1 10 bps above high end of outlook1 $0.05 above
Slide 6: Q2 2025: Net Sales by Market, Segment & Region
Q2 2025: NET SALES BY MARKET, SEGMENT & REGION MOBILE AND AGRICULTURE STARTING TO STABILIZE WITH EMEA SHOWING GROWTH ($ in millions) QUARTERLY TRENDS (YoY): SALES BY SEGMENT YoY Direction Market* $220 $212 66% 34% Hydraulics Electronics Industrial Mobile $212 Agriculture Recreational Q2 24 Q2 25 Hea
Slide 7: Q2 2025: Gross Profit & Margin
Q2 2025: GROSS PROFIT & MARGIN SECOND QUARTER IN A ROW OF SEQUENTIAL IMPROVEMENT QUARTER • Q2 25 YoY: gross profit declined 4% while gross margin 32.1% 31.8% contracted 30 bps driven by lower volume, higher 31.1% 30.6% 30.1% material costs and net tariff impacts partially offset by lower labor and o
Slide 8: Q2 2025: Operating Income & Margin
Q2 2025: OPERATING INCOME & MARGIN CONTINUED REBOUND OF OPERATING MARGIN; +160 BASIS POINTS SEQUENTIALLY QUARTER 16.4% 16.6% 15.0% • Q2 25 YoY: operating income decreased 15% and 13.3% 13.4% 4.6% 5.2% 4.7% margin declined 150 bps driven by the reduction in 5.9% 4.7% gross profit on lower volume and
Slide 9: Q2 2025: Net Income | Adjusted EBITDA / Margin
Q2 2025: NET INCOME | ADJUSTED EBITDA / MARGIN ADJUSTED EBITDA MARGIN POSITIONED FOR FURTHER EXPANSION ($ in millions, except per share data) NET INCOME $13.6 $11.4 $11.4 $7.3 $4.8 • YoY: net income down 16% and diluted GAAP EPS down $0.07, or 17% and diluted Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Non-GAAP E
Slide 10: Q2 2025: Hydraulics Segment
Q2 2025: HYDRAULICS SEGMENT OPERATING MARGIN EXPANDED 140 BASIS POINTS YoY ($ in millions) YoY Sales: $140.9 3% Gross Profit: $46.5 4% Operating Income: $25.0 5% Q2 SALES BY REGION Q2 SALES BY CHANNEL 29% APAC 38% ~49% $141 Americas ~51% $141 OEM Distributor or 33% Integrator EMEA Note: YoY = year-o
Slide 11: Q2 2025: Electronics Segment
Q2 2025: ELECTRONICS SEGMENT IMPACTS FROM MATERIAL COSTS, MIX, AND TARIFFS; MOST END MARKETS STILL DOWN ($ in millions) YoY Sales: $71.6 4% Gross Profit: $21.0 18% Operating Income: $5.9 43% Q2 SALES BY REGION Q2 SALES BY CHANNEL 13% 75% ~74% APAC Americas OEM $72 ~26% $72 Distributor or 12% Integra
Slide 12: Q2 2025: Cash Flow
Q2 2025: CASH FLOW CONTINUED CASH GENERATION ON DISCIPLINED WORKING CAPITAL MANAGEMENT ($ in millions) (1) ADJUSTED FREE CASH FLOW Three Months Ended 6/28/25 6/29/24 204% 291% 244% Net Cash Provided by Operating Activities $37.0 $33.8 83% $101.6 126% Revenue 79% $95.1 $94.0 Capital Expenditures (Cap
Slide 13: Q2 2025: Debt, Liquidity & Capital Allocation
Q2 2025: DEBT, LIQUIDITY & CAPITAL ALLOCATION IMPROVED FINANCIAL FLEXIBILITY ($ in millions) DEBT & LIQUIDITY PROFILE CAPITAL ALLOCATION PRIORITIES 1. 2. 3. 4. Pay Down Organic Returns to $436 Acquisitions $412 Debt Investments Shareholders Total Debt Liquidity $144 revolver / other Additional Detai
Slide 14: Current Tariff Impact Assessment for 2H 2025
CURRENT TARIFF IMPACT ASSESSMENT FOR 2H 2025 BASED ON TARIFFS IN EFFECT AS OF AUGUST 1, 2025 ESTIMATED DIRECT COST IMPACTS ~$8M ESTIMATED DIRECT COST, BY SEGMENT 55% Tariff on U.S. Imports ~$3.0M $’s in millions China 10% Retaliatory Tariffs on China Imports ~$0.5M Electronics $3 40% Mexico 25% Tari
Slide 15: Tariff Risk Mitigation
TARIFF RISK MITIGATION 1 2 3 4 5 Price Increases Alternate Sourcing Bonded Warehouse Local Manufacturing Play Offense Leverage an in-bond Advantaged capital Find alternative Transfer manufacturing Implement surcharges warehouse for position allows us to suppliers for and assembly on impacted goods s
Slide 16: 2025 Company Issued Guidance
2025 COMPANY ISSUED GUIDANCE 2025 FULL YEAR OUTLOOK Q3 2025 QUARTERLY OUTLOOK AS ORIGINALLY ISSUED ON 2/24/2025 ISSUED ON 8/4/2025 ISSUED ON AUGUST 4, 2025 TOTAL NET SALES TOTAL NET SALES TOTAL NET SALES $208M to $215M -4% to +2% +1% to +3% Relative to Q3 2024 at $194.5M +7% to +10% $775M to $825M $
Slide 17: Q3 2025: Segment Outlook
Q3 2025: SEGMENT OUTLOOK HYDRAULICS ELECTRONICS Regional Outlook AMER EMEA APAC AMER EMEA APAC Positive Catalysts Commercial Food Service, Recreational Health & Wellness Stable / Moderate Lift Industrial, Agriculture, Mobile Recurring Revenue, Mobile Flat / No Signs Yet of Bounce Marine, Industrial
Slide 18: Innovations Introduced in 2025
INNOVATIONS INTRODUCED IN 2025 ACROSS BOTH SEGMENTS MULTI-SLIDE ELECTRO-PROPORTIONAL/RELIEF VALVES ATLAS CONNECT GATEWAY NO ROADS S35 & CAN KEYPAD HIGH CURRENT POWER DISTRIBUTION MODULE PUREZONE ACCELERATING CYCLE TIME TO BRING NEW INNOVATIONS TO MARKET 18
Slide 19: 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 20: 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 21: Early Pioneers of Company Leadership
EARLY PIONEERS OF COMPANY LEADERSHIP SUN HYDRAULICS, THEN & NOW Pictured: Co-Founder & Former CEO: Bob Koski & Former CEO: Clyde Nixon Pictured: Former CEO: Al Carlson CHEERS TO 55 YEARS 21
Slide 22: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 23: 2025 Full Year Outlook
2025 FULL YEAR OUTLOOK AS ORIGINALLY ISSUED ON ISSUED ON 2/24/2025 8/4/2025 2025 2025 UPDATED OUTLOOK ASSUMPTIONS KEY FINANCIAL 2024 • First half stronger than originally estimated, ORIGINAL UPDATED METRICS ACTUAL driving updated Outlook upside OUTLOOK OUTLOOK • Second half softer comparables paired
Slide 24: Segment Data
SEGMENT DATA (Unaudited) ($ in millions) For the Three Months Ended TTM For the Year Ended June 2 8 , June 2 9 , June 2 8 , 2025 2024 2025 Dec ember 2 8 ,2 0 2 4 Net Sales: Hydraulics $ 140.9 $ 145.7 $ 516.4 $ 537.2 Electronics 71.6 74.2 $ 265.6 268.7 Consolidated $ 212.5 $ 219.9 $ 782.0 $ 805.9 Gro
Slide 25: Net Sales by Geographic Region & Segment
NET SALES BY GEOGRAPHIC REGION & SEGMENT (Unaudited) ($ in millions) 2025 2024 % Change % Change % Change % Change % Change % Change % Change % Change Q1 y/y Q2 y/y YTD 2 0 2 5 y/y Q1 y/y Q2 y/y Q3 y/y Q4 y/y 2024 y/y America s: Hydraulics $ 49.9 (11%) $ 54.2 (9%) $ 104.1 (10%) $ 55.8 (4%) $ 59.5 (2
Slide 26: Non-GAAP Adjusted Operating Income & Margin Reconciliation
NON-GAAP ADJUSTED OPERATING INCOME & (Unaudited) NON-GAAP ADJUSTED OPERATING MARGIN RECONCILIATION ($ in millions) For the Three Months Ended June 2 8 , Marc h 2 9 , Dec ember 2 8 , September 2 8 , June 2 9 , 2025 Margin 2025 Margin 2024 Margin 2024 Margin 2024 Margin GAAP operating inc ome $ 2 1 .9
Slide 27: Non-GAAP Adjusted Net Income Reconciliation
NON-GAAP ADJUSTED NET INCOME & NON-GAAP ADJUSTED (Unaudited) NET INCOME PER DILUTED SHARE RECONCILIATION ($ in millions) For the Three Months Ended June 2 8 , P er Diluted Marc h 2 9 , P er Diluted Dec ember 2 8 , P er Diluted September 2 8 , P er Diluted June 2 9 , P er Diluted 2025 Share 2025 Shar
Slide 28: Non-GAAP Adjusted EBITDA Reconciliation
NON-GAAP ADJUSTED EBITDA & (Unaudited) NON-GAAP ADJUSTED EBITDA MARGIN RECONCILIATION ($ in millions) For the Three Months Ended TTM Twelve Months Ended June 2 8 , Marc h 2 9 , Dec ember 2 8 , September 2 8 , June 2 9 , June 2 8 , Dec ember 2 8 , 2025 Margin 2025 Margin 2024 Margin 2024 Margin 2024
Slide 29: Non-GAAP Adjusted Free Cash Flow Reconciliation
NON-GAAP ADJUSTED FREE CASH FLOW RECONCILIATION (Unaudited) ($ in millions) For the Year Ended TTM December 30, December 29, December 28, January 2, January 1, December 31, December 30, December 28, June 28, 2017 2018 2019 2021 2022 2022 2023 2024 2025 Net cash provided by operating activities $ 49.
Slide 30: Non-GAAP Net Sales Growth Reconciliation
NON-GAAP NET SALES GROWTH RECONCILIATION (Unaudited) ($ in millions) For the Three Months Ended Hydraulic s Elec tronic s Consolidated Q 2 2 0 2 5 Net Sales $ 1 4 0 .9 $ 7 1 .6 $ 2 1 2 .5 Impact of foreign currency translation ( E) (1.5) - (1.5) O rganic sales in c onstant c urrenc y $ 1 3 9 .4 $ 7
Slide 31: Net Debt to Non-GAAP Adjusted EBITDA Reconciliation
NET DEBT TO NON-GAAP ADJUSTED EBITDA RECONCILIATION (Unaudited) ($ in millions) As of June 2 8 , 2 0 2 5 Current portion of long-term non-revolving debt, net 24.5 Revolving lines of credit 144.3 Long-term non-revolving debt, net 267.4 Total debt 4 3 6 .2 Less: Cash and cash equivalents 53.0 Net debt
Slide 32: Heliostechnologies.com
HELIOSTECHNOLOGIES.COM 7456 16th Street East Sarasota, FL 34243 941.362.1200