Overview

* Helios Q2 net sales of $212.5 mln beat analyst expectations, per LSEG data

* Adjusted EPS for Q2 beats consensus, reaching $0.59, per LSEG data

* Co announces share repurchase program and Custom Fluidpower divestiture for $83 mln AUD

Outlook

* Helios raises FY25 sales outlook to $810-$830 mln

* Helios expects Q3 2025 sales of $208-$215 mln

* Company sees FY25 adj EBITDA margin at up 18.5%- up 19.5%

* Helios anticipates Q3 2025 adj EBITDA margin of up 19.5%- up 20.5%

* Simplifying the business by focusing on our core brands and enhancing the product portfolio

Result Drivers

* HYDRAULICS DEMAND - Sequential sales growth driven by better than expected demand in the Hydraulics segment, despite a year-over-year decline

* COST DISCIPLINE - Gross margin expanded 120 bps sequentially due to strong cost discipline and improved operating leverage

* PORTFOLIO MANAGEMENT - Actively managing portfolio with the sale of Custom Fluidpower and focusing on core brands to enhance operational efficiency

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $212.50 $202.90

mln mln (5

Analysts

)

Q2 Beat $0.59 $0.51 (5

Adjusted Analysts

EPS )

Q2 Net $11.40

Income mln

Q2 Beat $39.50 $36.90

Adjusted mln mln (5

EBITDA Analysts

)

Q2 Gross 31.8%

Margin

Q2 $21.90

Operatin mln

g income

Analyst Coverage

* The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

* Wall Street's median 12-month price target for Helios Technologies Inc ( HLIO ) is $44.50, about 20.4% above its August 1 closing price of $35.43

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)