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Apr 01, 2023
Helios Q1 2023 Earnings Report
Helios Technologies reported strong revenue growth in Q1 2023 while investing in augmented strategy for future growth.
Key Takeaways
Helios Technologies reported strong top-line results and delivered on gross margins in Q1 2023. The company is investing in optimizing its long-term cost structure and preparing for global growth, including opening new Centers of Excellence and reorganizing the Hydraulics segment. They also announced an agreement to acquire i3 Product Development.
Strong sequential top line growth over 4Q22 in both segments including a 36% increase in the health and wellness end market and sequential consolidated margin growth
Investing in operating expenses (SEA) to integrate flywheel acquisitions, open previously announced Centers of Excellence, and accelerate strategic growth opportunities
Protecting full year margin and earnings through execution of manufacturing and operating strategy
Achieved diluted EPS of $0.42; Diluted Non-GAAP Cash EPS of $0.72 reflecting in-period investments, higher interest expense ($0.06), and FX impact ($0.04) compared with prior year
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company reiterates its outlook for 2023 revenue to be $910 to $940 million and is on path to achieve a strategic milestone of $1 billion in revenue on a run rate basis by year-end 2023. On a run-rate basis ending 2023, the Company expects to reach approximately $1 billion in revenue and approximately 25% Adjusted EBITDA margins.
Positive Outlook
- Reiterating outlook for 2023 revenue expected to be $910 to $940 million
- On path to achieve strategic milestone of $1 billion in revenue on a run rate basis by year-end 2023
- Expecting to reach approximately $1 billion in revenue on a run-rate basis ending 2023
- Expecting approximately 25% Adjusted EBITDA margins on a run-rate basis ending 2023
- Combined with our organic growth and other recent acquisitions, we expect to be able to reach our $1 billion revenue milestone with top-tier margins on a run-rate basis ending 2023
Challenges Ahead
- Foreign currency translation adjustment on sales was $3.5 million unfavorable
- Supply chain constraints delayed an estimated $12.4 million in sales in the quarter
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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