NYSE$HLIO

Helios Technologies Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Helios Technologies reported solid results, delivered margin expansion, and reduced debt for the fifth consecutive quarter.

Helios Technologies reported Q3 2024 financial results, demonstrating operational efficiency and strong cash management. The company achieved diluted EPS of $0.34 and diluted Non-GAAP EPS of $0.59, up 209% and 34% respectively year-over-year. Net sales were $194.5 million, and the company generated $34.8 million in cash from operations, a 195% increase over the prior-year period.

  • Generated $34.8 million in cash from operations, up 195% over prior-year period, reflecting disciplined working capital initiatives.
  • Reduced $19.3 million in total debt, the fifth consecutive quarter of debt reduction; Improved net debt leverage ratio again sequentially down to 2.8x from 3.0x ending 2Q24.
  • Delivered net sales of $194.5 million in the quarter, within expected guidance range.
  • Expanded gross margin 150 bps with strong operating margin improvement as expected from improved efficiencies and cost adjustments, despite lower net sales.

Headline financials

Total Revenue

$195M

Previous: $201M-3.4%
EPS

$0.34

Previous: $0.44-22.7%
Operating income margin

11.4%

Previous: 6.9%+65.2%
Adjusted Operating Margin

16.6%

No prior period
Adjusted EBITDA Margin

20.9%

Previous: 17.7%+18.1%
Net Debt to Adjusted EBITDA

2.8

No prior period
Gross margin

31.1%

Previous: 29.6%+5.1%
Capital Expenditures

-$6M

Previous: -$5.8M-3.4%
Free Cash Flow

$5.4M

Previous: -$2.3M+334.8%
Net Income

$11.4M

Previous: $3.5M+225.7%
Operating Income

$22.2M

Previous: $13.8M+60.9%
Gross Profit

$60.5M

Previous: $59.7M+1.3%
Cash & Equivalents

$46.7M

Previous: $35.2M+32.7%
Total Assets

$1.57B

Previous: $1.59B-1.2%
Stock-Based Comp

-$4.2M

Previous: $2.7M-255.6%

Revenue & EPS history

Helios · Revenue · Quarterly

$195M

Q3 2024-3.4%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Helios · $228M total across 2 segments · Q1 2026

  • Hydraulics
    $139M
  • Electronics
    $89.2M

Forward guidance

Helios Technologies updated its full-year 2024 outlook to reflect weaker end market conditions and hurricane impacts. The company remains focused on working capital management, operational efficiencies, cost discipline, and reducing debt.

Tailwinds

  • Diversified customer base
  • Diversified end markets
  • Steady adjusted EBITDA margin
  • Operational efficiencies
  • Disciplined cost control

Headwinds

  • Weaker end market conditions
  • Growing distributor inventory levels
  • Weakening end markets
  • 18 lost manufacturing shifts from three hurricanes
  • Lower full year sales volumes compared with last year

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+1.1%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+0.9%

Avg return

30 days after

59%

37 / 63 earnings

Positive

+20.9%

Q3 2016

Best reaction

-23.8%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%+2.5%+17.3%
Q4 2025-3.8%-12.6%-9.6%
Q3 2025-1.6%-4.0%-4.3%
Q1 2025+6.5%+21.0%+19.2%
Q4 2024+7.1%+1.6%-12.3%
Q3 2024+14.9%+7.8%+7.2%
Q2 2024+5.4%+4.2%-0.8%
Q1 2024+6.8%+5.7%-2.5%
Q4 2023+7.3%-0.4%-2.2%
Q3 2023-13.7%-16.7%-21.9%
Q2 2023-12.4%-7.3%-7.0%
Q1 2023-7.6%-12.2%-2.0%
Q4 2022+2.6%+9.6%-1.9%
Q3 2022-10.8%-5.1%-6.0%
Q2 2022-12.1%+0.5%-19.5%
Q1 2022-4.4%-1.7%+5.6%
Q4 2021-4.4%-4.2%+2.0%
Q3 2021+16.0%+15.2%+8.0%
Q2 2021+4.0%+2.3%+3.5%
Q1 2021-0.2%+3.6%-3.7%
Q3 2020+7.0%+5.8%+17.3%
Q2 2020+4.6%+11.6%+12.8%
Q1 2020+2.2%+2.4%+9.4%
Q4 2019-0.2%-4.9%-15.2%
Q3 2019+11.4%+7.2%+4.4%
Q2 2019+2.2%-3.2%-5.9%
Q1 2019-9.7%-9.9%-10.7%
Q4 2018+20.8%+27.9%+16.7%
Q3 2018-23.8%-17.1%-18.9%
Q2 2018-4.3%-8.0%-2.5%
Q1 2018-0.2%-0.8%+4.5%
Q4 2017-5.1%-6.4%-5.8%
Q3 2017-1.9%-0.3%-1.7%
Q2 2017+13.9%+12.3%+21.6%
Q1 2017+5.9%+5.0%+5.4%
Q4 2016-4.8%-8.8%-7.4%
Q3 2016+20.9%+32.8%+34.4%
Q2 2016+1.6%+0.6%+6.6%
Q1 2016-10.9%
Q4 2015+7.3%
Q3 2015+0.1%
Q2 2015-3.7%
Q1 2015-4.9%
Q4 2014+2.4%
Q3 2014+6.7%
Q2 2014+4.8%
Q1 2014-6.4%
Q4 2013+0.1%
Q3 2013+3.8%
Q2 2013+0.6%
Q1 2013-1.3%
Q4 2011+2.3%
Q4 2012+12.5%
Q3 2012+1.6%
Q2 2012+0.1%
Q1 2012+2.1%
Q4 2010+1.3%
Q3 2011-3.1%
Q2 2011+3.2%
Q1 2011+3.2%
Q3 2010-1.8%
Q2 2010-9.6%
Q1 2010+15.3%

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