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Jun 29, 2024
Helios Q2 2024 Earnings Report
Helios Technologies' financial performance improved with sequential margin and cash flow growth.
Key Takeaways
Helios Technologies reported net sales of $219.9 million, a 4% increase over 1Q24. The company demonstrated sequential margin improvement across both gross and operating margins. Diluted EPS was $0.41 and diluted Non-GAAP EPS was $0.64, up 21% over 1Q24. Cash from operations reached $33.8 million, a 30% increase year-over-year.
Net sales reached $219.9 million, up 4% over 1Q24, with Hydraulics up 2% and Electronics up 7%.
Gross and operating margins improved sequentially over 1Q24 due to increased volume, operational initiatives, and cost management.
Diluted EPS was $0.41 and diluted Non-GAAP EPS was $0.64, a 21% increase over 1Q24.
Cash from operations improved to $33.8 million, a 30% increase year-over-year, through working capital initiatives.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Helios Technologies is moderating its second half and full year 2024 outlook due to softening demand and reduced visibility. The company expects to maintain its original adjusted EBITDA margin range through operational efficiencies and cost management.
Positive Outlook
- Maintaining original adjusted EBITDA margin range.
- Focusing on operational efficiencies.
- Disciplined cost management.
- Penetrating new customer and end market wins.
- Strengthening system solution offerings within the electro-hydraulics industry.
Challenges Ahead
- Softening demand in the near term.
- Order book trends indicate a weaker second half.
- Prolonged period of negative U.S. PMI data.
- Contracting annual fiscal year revenue guidance from largest public company customers.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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