Overview

* Helios Q3 sales grow 13% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 beats consensus, reflecting improved operational performance

* Company reduced debt by $64 mln, improving net debt-to-EBITDA leverage ratio

Outlook

* Helios anticipates FY25 adjusted EBITDA margin of 19.1%-19.4%

Result Drivers

* SALES GROWTH - Hydraulics segment sales increased 9% driven by mobile and agriculture markets

* ELECTRONICS DEMAND - Electronics segment sales rose 21% due to growth in recreational, mobile, and industrial markets

* GROSS MARGIN EXPANSION - Gross margin expanded 200 bps due to higher volume and lower direct labor costs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $220.3 $211.30

mln mln (5

Analysts

)

Q3 Beat $0.72 $0.66 (5

Adjusted Analysts

EPS )

Q3 Net $10.3

Income mln

Q3 Beat $45.10 $42.60

Adjusted mln mln (5

EBITDA Analysts

)

Q3 Gross 33.10%

Margin

Q3 $1.30

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 $58.00, about 4.6% above its October 31 closing price of $55.36

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

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(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.)