Helios Technologies (HLIO) Q4 2025 earnings summary

Executive summary

• Achieved a turnaround in 2025 with all businesses reporting quarterly sales and earnings growth, leading to full-year sales growth for the first time in three years and record free cash flow.

• Both Hydraulics and Electronics segments contributed to strong sales and profitability expansion, with FY25 sales up 4% year-over-year (6% pro forma, excluding CFP divestiture).

• Divested Custom Fluidpower (CFP), refocused on core manufacturing, and aligned Australian distribution via an exclusive agreement.

• Strengthened leadership team with new CEO, CFO, and Electronics segment president, institutionalizing a performance-driven culture.

• Celebrated 55th anniversary by ringing the NYSE closing bell and executed a strategic reset, including portfolio optimization.

Financial highlights

• Q4 2025 sales rose 17% to $211M; full-year sales up 4% to $839M.

• Q4 adjusted EBITDA margin at 20.1% (up 270 bps YoY); full-year adjusted EBITDA $161M, up 4%.

• Q4 adjusted diluted EPS $0.81 (up 145% YoY); full-year adjusted diluted EPS $2.56 (up 22% YoY).

• Gross margin expanded for four consecutive quarters; Q4 gross margin up 350 bps to 33.6%, full-year gross margin 32.3% (up 100 bps).

• Record cash from operations: $46M in Q4, $127M for the year; net debt to adjusted EBITDA leverage ratio reduced to 1.8x.

Outlook and guidance

• FY26 sales projected at $820M–$860M (up 4–9% vs. FY25 pro forma); adjusted EBITDA margin expected at 19.5%–21.0%; adjusted diluted EPS $2.60–$2.90.

• Q1 2026 sales expected at $218M–$223M, up 22% YoY at midpoint (pro forma); adjusted EBITDA margin 19.5%–20.5%; adjusted diluted EPS $0.65–$0.70.

• Both Hydraulics and Electronics segments forecasted to grow, with stronger growth rates expected in 1H 2026 due to end market recovery and order visibility.