Helios Technologies 2025 Q3 Earnings Revenue Beats Estimates Despite EPS Decline

Helios Technologies (HLIO) reported fiscal 2025 Q3 earnings on Nov 5, 2025, with revenue rising 13.3% year-over-year to $220.3 million, surpassing analyst estimates. While net income and EPS declined, the company raised full-year adjusted EPS guidance to $2.43–$2.50 but issued Q4 revenue projections below expectations.

Revenue

Helios Technologies’ total revenue for Q3 2025 grew 13.3% year-over-year to $220.3 million, driven by strong performance across segments. The Hydraulics division contributed $141.3 million, reflecting sustained demand in mobile and agricultural markets, while the Electronics segment saw robust 21% growth to $79 million, fueled by recreational and industrial sectors.

Earnings/Net Income

The company’s earnings per share (EPS) declined 8.8% to $0.31 in Q3 2025, compared to $0.34 in the prior-year period. Net income fell to $10.3 million, a 9.6% drop from $11.4 million in Q3 2024. Despite revenue growth, margin pressures and a $25.9 million goodwill impairment charge contributed to the earnings decline.

Post-Earnings Price Action Review

The strategy of buying HLIO on revenue beats and holding for 30 days cannot be definitively backtested with the provided data. Helios Technologies has historically beaten revenue estimates in 8 of 10 quarters, with Q3 2025 exceeding expectations by $9.05 million. However, insufficient daily stock price data around earnings releases limits analysis of 30-day returns. Recent operational improvements—such as debt reduction to 2.4x EBITDA and a $21 million gain from the CFP asset sale—signal short-term upside, though valuation risks persist. Analysts project margin expansion from 4.2% to 10.8% over three years, but execution risks remain.

CEO Commentary

Sean Bagan, President and CEO, highlighted the company’s return to growth after 12 quarters of declines, driven by strategic execution and margin improvements. He emphasized progress in debt reduction and portfolio rationalization, including the CFP asset sale, as catalysts for long-term resilience.

Guidance

Helios Technologies raised full-year 2025 adjusted EPS guidance to $2.43–$2.50, up from the prior $2.30–$2.50 range. However, Q4 revenue guidance of $192–$202 million fell short of analyst estimates of $201.2 million. The company expects adjusted EBITDA margins of 20.0–21.0% for Q4, reflecting continued operational discipline.

Additional News

1. Goodwill Impairment: A $25.9 million non-cash goodwill impairment charge related to the i3 Product Development business impacted operating income.

2. CFP Asset Sale: The company realized a $21 million gain from the sale of its Custom Fluidpower (CFP) business, supporting debt reduction efforts.

3. Debt Reduction: Total debt decreased by 13% to $419.1 million, with net debt to EBITDA now at 2.4x, down from 3.0x in prior periods.

Note: This report is based on publicly disclosed data and excludes proprietary or forward-looking assumptions not explicitly stated in the referenced materials.