Helios Technologies Reports 7.8% Decline in Net Sales for Q1 2025

Helios Technologies, Inc. reported a decline in financial performance for the first quarter of 2025, with net sales of $195.5 million, down 7.8% from $212.0 million in the same period last year. The company's gross profit also decreased to $59.9 million, a 10.9% drop compared to $67.2 million in the prior year. Operating income fell to $17.0 million from $20.3 million, reflecting a decrease in operating income margin from 9.6% to 8.7%. Net income for the quarter was $7.3 million, or $0.22 per diluted share, down from $9.2 million, or $0.28 per diluted share, in the previous year.

The decline in sales was primarily attributed to reduced demand in the Hydraulics segment, particularly in the agriculture, mobile, and industrial markets. The Electronics segment experienced relatively flat sales, with slight growth in health and wellness and recreational markets offsetting declines in other areas. Foreign currency exchange rates negatively impacted sales by approximately $2.3 million, or 1.1%. The company noted that all geographic regions experienced a decrease in sales compared to the prior year.

In terms of operational developments, Helios Technologies has been restructuring its operations, including the closure of its San Antonio office and the reassignment of resources to other facilities. The company has also completed the initial phases of restructuring within its Hydraulics segment, establishing two new Regional Operational Centers of Excellence. These changes are expected to optimize operations and improve efficiency. Additionally, the company has been focusing on enhancing its capabilities in Tijuana, Mexico, to support its Electronics segment.

As of March 29, 2025, Helios Technologies had cash and cash equivalents of $45.9 million and available credit of $352.6 million under its revolving credit facilities. The company generated $19.0 million in cash from operating activities during the first quarter, an increase from $17.8 million in the prior year. However, net cash used in financing activities rose to $11.3 million from $5.4 million, primarily due to increased repayments on borrowings. Looking ahead, Helios Technologies remains focused on managing liquidity and navigating the challenging macroeconomic environment, which includes inflationary pressures and geopolitical uncertainties. The company is committed to maintaining operational efficiency and exploring strategic growth opportunities through acquisitions and product development.