Helios Technologies 2025 Q2 Earnings Net Income Drops 16.2% Amid Revenue Decline

Helios Technologies reported its fiscal 2025 Q2 earnings on August 5, 2025. The results reflect a challenging quarter as both revenue and net income declined year-over-year. The company, however, raised its full-year outlook and provided new 3Q25 guidance, indicating a path to growth.

Helios Technologies reported total revenue of $212.50 million in 2025 Q2, a 3.4% decline from $219.90 million in the same period a year ago. The Hydraulics segment accounted for the largest portion of revenue at $140.90 million, followed by the Electronics segment at $71.60 million. Unallocated expenses remained at $0, with no additional revenue streams reported in the quarter.

Net income for the quarter fell to $11.40 million, representing a 16.2% decrease from $13.60 million in 2024 Q2. Earnings per share (EPS) also declined by 17.1% to $0.34, reflecting the challenging market conditions and operational pressures.

Following the earnings release, the stock price of Helios Technologies surged, with an 8.65% increase in the latest trading day, 27.88% for the week, and 33.56% month-to-date. However, the post-earnings price action review revealed a problematic strategy. A buy-and-hold approach initiated after an earnings beat resulted in a -67.30% return over 30 days, significantly underperforming the benchmark. The strategy had a Sharpe ratio of -0.67 and a maximum drawdown of 0.00%, indicating high risk and poor returns.

CEO Sean Bagan emphasized the company's progress on key financial priorities, including operating leverage, cash flow improvement, and debt reduction. Despite market conditions not being fully recovered, Helios is focused on strategic changes, including the divestiture of its Australian-based hydraulic fluid business, organizational simplification, and resource reallocation, to enhance innovation and customer value.

Helios Technologies raised its full-year 2025 outlook and established 3Q25 guidance, signaling a strengthening path to growth. Management expects to leverage improved operating leverage and demand trends to drive profitability, aligning guidance with current performance and strategic actions.

Additional News
Helios Technologies announced a definitive agreement to sell its Australian-based Hydraulic Fluid Power Solutions and Service Provider business, marking a key strategic shift. The company also appointed Ian Walsh to its Board of Directors, bringing new leadership and insight. On June 5, Helios Technologies declared its 114th consecutive quarterly dividend, continuing its long-standing commitment to shareholder returns.