Slide 1: First Quarter 2025 Earnings Presentation
FIRST QUARTER 2025 EARNINGS PRESENTATION May 7, 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: Q1 2025: Executive Summary
Q1 2025: EXECUTIVE SUMMARY TOTAL COMPANY FINANCIAL RESULTS ($ in millions except per share data) BETTER-THAN-EXPECTED Q1 FINANCIAL RESULTS Revenue, Adjusted EBITDA1 Margin, Diluted Non-GAAP EPS1, and Cash Flow exceededRevenue expectations IMPROVING OUR EXECUTION & ESTABLISHING TRACK RECORD Met or ex
Slide 4: Q1 2025: Financial Highlights
Q1 2025: FINANCIAL HIGHLIGHTS TOTAL COMPANY FINANCIAL RESULTS ($ in millions except per share data) $195M 17.3% Revenue $0.44 Net Adjusted EBITDA Diluted Non-GAAP Sales Margin3 EPS3 Down 8% YoY Down 90 bps YoY Down 17% YoY $5M above high end of outlook1 30 bps above high end of outlook1 $0.08 above
Slide 5: Q1 2025: Net Sales by Market and Region
Q1 2025: NET SALES BY MARKET AND REGION HEALTH & WELLNESS AND RECREATIONAL DEMONSTRATE IMPROVEMENT ($ in millions) QUARTERLY TRENDS (YoY): SALES BY SEGMENT YoY Direction Market* $212 65% 35% $195 Hydraulics Electronics Industrial Mobile $195 Agriculture Recreational Q1 24 Q1 25 Health & Wellness Oth
Slide 6: Q1 2025: Gross Profit & Margin
Q1 2025: GROSS PROFIT & MARGIN SEQUENTIAL MARGIN EXPANSION HIGHLIGHTS LEVERAGE GAINS AS SALES VOLUME INCREASES QUARTER • Q1 25 YoY: gross profit declined 11% while gross 31.7% 32.1% margin contracted 110 bps as declines in labor and 31.1% 30.6% 30.1% overhead costs partially offset lower volume and
Slide 7: Q1 2025: Operating Income & Margin
Q1 2025: OPERATING INCOME & MARGIN STAYING FOCUSED ON CONTROLLING OPERATING STRUCTURE COSTS QUARTER 14.5% 16.4% 16.6% • Q1 25 YoY: operating income decreased 16% and 13.3% 13.4% 4.6% 5.2% margin declined 90 bps driven by the reduction in gross 4.9% 4.7% 5.9% profit on lower volume partially offset b
Slide 8: Q1 2025: Net Income | Adjusted EBITDA Margin
Q1 2025: NET INCOME | ADJUSTED EBITDA MARGIN COST REDUCTIONS PARTIALLY OFFSETTING LOWER VOLUME FROM WEAK END MARKETS ($ in millions, except per share data) NET INCOME $13.6 $11.4 $9.2 $7.3 $4.8 • YoY: net income down 21% and diluted GAAP EPS down $0.06, or 21%. Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Diluted
Slide 9: Q1 2025: Hydraulics Segment
Q1 2025: HYDRAULICS SEGMENT HOLDING OPERATING MARGIN STEADY SEQUENTIALLY THROUGH TOUGH MACRO ($ in millions) YoY Sales: $126.4 11% Gross Profit: $37.4 16% Operating Income: $17.4 20% Q1 SALES BY REGION Q1 SALES BY CHANNEL 31% APAC 39% ~46% $126 Americas ~54% $126 OEM Distributor or 30% Integrator EM
Slide 10: Q1 2025: Electronics Segment
Q1 2025: ELECTRONICS SEGMENT STRONG YoY GROWTH IN OPERATING INCOME/MARGIN WITH SEA EXPENSE REDUCTION ($ in millions) YoY Sales: $69.1 1% Gross Profit: $22.5 1% Operating Income: $8.0 13% Q1 SALES BY REGION Q1 SALES BY CHANNEL 9% 82% ~76% APAC $69 Americas ~24% $69 OEM Distributor or 9% Integrator EM
Slide 11: Q1 2025: Cash Flow
Q1 2025: CASH FLOW CONTINUED CASH GENERATION ON DISCIPLINED WORKING CAPITAL MANAGEMENT ($ in millions) (1) ADJUSTED FREE CASH FLOW Three Months Ended 3/29/25 3/30/24 204% 244% 258% Net Cash Provided by Operating Activities $19.0 $17.8 83% 126% Revenue 79% $95.9 $96.5 $94.0 Capital Expenditures (CapE
Slide 12: Debt, Liquidity & Capital Allocation
Q1 2025: DEBT, LIQUIDITY & CAPITAL ALLOCATION IMPROVED FINANCIAL FLEXIBILITY ($ in millions) DEBT & LIQUIDITY PROFILE CAPITAL ALLOCATION PRIORITIES 1. 2. 3. 4. Pay Down Organic Returns to $445 Debt Investments Shareholders Acquisitions Total Debt $399 $150 Liquidity revolver / other Additional Detai
Slide 13: Current Tariff Impact Assessment for 2H 2025
CURRENT TARIFF IMPACT ASSESSMENT FOR 2H 2025 Based on tariffs in effect as of May 5, 2025 ESTIMATED DIRECT COST IMPACTS ~$15M ESTIMATED DIRECT COST, BY SEGMENT $’s in millions 145% Tariff on U.S. Imports ~$9M 125% Retaliatory Tariffs on Chinese Imports ~$4M Electronics $6 40% 25% Tariff on U.S. Impo
Slide 14: 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 15: Q2 2025: Establishing Outlook
Q2 2025: ESTABLISHING OUTLOOK Q2 2025E OUTLOOK ASSUMPTIONS TOTAL NET SALES $198M to $206M • Electronics segment sales expected to continue Relative to Q2 2024 at $219.9M outpacing Hydraulics segment driven by Balboa’s -10% to -6% core business recovery and identified growth opportunities Relative to
Slide 16: Q2 2025: Segment Outlook
Q2 2025: SEGMENT OUTLOOK HYDRAULICS ELECTRONICS Regional Outlook AMER EMEA APAC AMER EMEA APAC Positive Catalysts Health & Wellness Commercial Food Service Stable / Moderate Lift Recurring Revenue Flat / No Signs Yet of Bounce Recreational Mobile, Agriculture, Industrial Marine, Industrial, Mobile S
Slide 17: 2025: Financial Priorities
2025: FINANCIAL PRIORITIES 1 2 3 4 5 Drive Operating Shorten Cash Leverage Strong Return to Growth Reduce Debt Leverage Conversion Cycle Foundation With higher volumes Through improved Executing on profitable and disciplined Utilizing free cash flow To scale and elevate to working capital sales grow
Slide 18: 2025: Key Focus Areas
2025: KEY FOCUS AREAS GO TO MARKET Institutionalize the engine to track and drive sales funnel, cross-sell, and pipeline management STRUCTURE ORGANIC GROWTH Protect and grow base business through capturing more wallet share of existing customers PROFIT IMPROVEMENT Implement ongoing cost and operatio
Slide 19: Supplemental Information
MMO Ca cir s SUPPLEMENTAL INFORMATION
Slide 20: Segment Data
SEGMENT DATA (Unaudited) ($ in millions) F or the Three Months Ended Ma rch 29, Ma rch 30, 2025 2024 Net Sales: Hydraulics $ 126.4 $ 142.4 Electronics 69.1 69.6 Consolidated $ 195.5 $ 212.0 Gross profit and margin: Hydraulics $ 37.4 $ 44.5 29.6% 31.3% Electronics 22.5 22.7 32.6% 32.6% Consolidated $
Slide 21: Net Sales by Geographic Region & Segment
NET SALES BY GEOGRAPHIC REGION & SEGMENT (Unaudited) ($ in millions) 2024 2025 % Change % Change % Change % Change % Change % Change Q1 y/y Q2 y/y Q3 y/y Q4 y/y 2024 y/y Q1 y/y Americas: Hydraulics $ 55.8 (4%) $ 59.5 (2%) $ 52.1 (6%) $ 51.7 (14%) $ 219.1 (7%) $ 49.9 (11%) Electronics 58.1 5% 57.8 (9
Slide 22: Non-GAAP Adjusted Operating Income & Margin Reconciliation
NON-GAAP ADJUSTED OPERATING INCOME & (Unaudited) NON-GAAP ADJUSTED OPERATING MARGIN ($ in millions) RECONCILIATION For the Three Months Ended For the Twelve Months Ended March 29, March 30, March 29, 2025 Margin 2024 Margin 2025 Margin GAAP operating income $ 17.0 8.7% $ 20.3 9.6% $ 78.5 9.9% Acquis
Slide 23: 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 cFor the e m be r 3 0 ,Three P e r DMonths ilut e d Ended D e c e m be r
Slide 24: Non-GAAP Adjusted EBITDA & Margin Reconciliation
NON-GAAP ADJUSTED EBITDA & (Unaudited) NON-GAAP ADJUSTED EBITDA MARGIN RECONCILIATION ($ in millions) For the Three Months Ended For the Twelve Months Ended March 29, March 30, 2025 Margin 2024 Margin March 29, 2025 Margin Net income $ 7.3 3.7% $ 9.2 4.3% $ 37.1 4.7% Interest expense, net 7.4 3.8% 8
Slide 25: 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, March 29, 2017 2018 2019 2021 2022 2022 2023 2024 2025 Net cash provided by operating activities $ 49
Slide 26: Non-GAAP Net Sales Growth Reconciliation
NON-GAAP NET SALES GROWTH RECONCILIATION (Unaudited) ($ in millions) F or the Three Months Ended Hydra ul i cs El ectroni cs Cons ol i da ted Q 1 2 0 2 5 Net Sales $ 1 2 6 .4 $ 6 9 .1 $ 1 9 5 .5 Impact of foreign currency translation ( E) 2.2 0.1 2.3 Net Sales in c onstant c urrenc y 1 2 8 .6 6 9 .2
Slide 27: Net Debt to Non-GAAP Adjusted EBITDA Reconciliation
NET DEBT TO NON-GAAP ADJUSTED EBITDA (Unaudited) ($ in millions) RECONCILIATION As of March 29, 2025 Current portion of long-term non-revolving debt, net 16.1 Revolving lines of credit 150.3 Long-term non-revolving debt, net 279.2 Total debt 445.6 Less: Cash and cash equivalents 45.9 Net debt 399.7
Slide 28: heliostechnologies.com
HELIOSTECHNOLOGIES.COM 7456 16th Street East Sarasota, FL 34243 941.362.1200