Helios Technologies Plunges to Net Loss Amid Revenue Decline
Ticker: HLIO · Form: 10-Q · Filed: Aug 5, 2025 · CIK: 1024795
| Field | Detail |
|---|---|
| Company | Helios Technologies, INC. (HLIO) |
| Form Type | 10-Q |
| Filed Date | Aug 5, 2025 |
| Risk Level | high |
| Sentiment | bearish |
Sentiment: bearish
Topics: Industrial Manufacturing, Hydraulics, Electronics, Revenue Decline, Net Loss, Share Repurchase, Debt Management
TL;DR
Helios Technologies is bleeding cash with a net loss, so sell before it gets worse.
AI Summary
HELIOS TECHNOLOGIES, INC. reported a net loss of $1.5 million for the three months ended June 28, 2025, a significant decline from a net income of $18.9 million in the prior-year period. Revenue for the three months ended June 28, 2025, decreased by 15.3% to $180.2 million compared to $212.7 million for the three months ended June 29, 2024. The Hydraulics segment saw a revenue decrease of 17.5% to $110.5 million, while the Electronics segment experienced a 12.0% revenue decrease to $69.7 million. The company repurchased 100,000 shares of its common stock for $6.0 million during the three months ended June 28, 2025, under its $50.0 million share repurchase plan authorized on February 20, 2025. Goodwill for the Hydraulics segment was $280.0 million as of June 28, 2025, and $280.0 million as of December 28, 2024. The company's strategic outlook includes managing its debt, with a term loan facility of $300.0 million due June 30, 2026, and a revolving credit facility of $250.0 million. The decrease in net income and revenue reflects challenging market conditions across both segments.
Why It Matters
This filing reveals a significant downturn for Helios Technologies, with a net loss of $1.5 million and a 15.3% revenue drop. This performance could signal broader weakness in the industrial and electronics sectors, impacting investor confidence in related companies. Employees might face job insecurity if the trend continues, while customers could see potential shifts in product development or support. Competitively, this decline could allow rivals to gain market share, especially if Helios struggles to innovate or maintain its operational efficiency in a challenging economic environment.
Risk Assessment
Risk Level: high — The company reported a net loss of $1.5 million for the three months ended June 28, 2025, a substantial decrease from a net income of $18.9 million in the prior-year period. This, coupled with a 15.3% revenue decline to $180.2 million, indicates significant operational and financial challenges. The company also has a substantial term loan facility of $300.0 million due June 30, 2026, which could pose refinancing risks given the current performance.
Analyst Insight
Investors should consider divesting from HLIO given the sharp decline in profitability and revenue across both key segments. Monitor upcoming earnings reports closely for any signs of stabilization or further deterioration, as the current trend suggests significant headwinds.
Financial Highlights
- revenue
- $180.2M
- net Income
- -$1.5M
- revenue Growth
- -15.3%
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Hydraulics | $110.5M | -17.5% |
| Electronics | $69.7M | -12.0% |
Key Numbers
- $1.5M — Net Loss (For the three months ended June 28, 2025, a significant drop from $18.9M net income in the prior year.)
- $180.2M — Revenue (For the three months ended June 28, 2025, a 15.3% decrease from $212.7M in the prior year.)
- -15.3% — Revenue Decrease (Overall revenue decline for the three months ended June 28, 2025, compared to the prior year.)
- -17.5% — Hydraulics Segment Revenue Decrease (Revenue decline for the Hydraulics segment to $110.5M for the three months ended June 28, 2025.)
- -12.0% — Electronics Segment Revenue Decrease (Revenue decline for the Electronics segment to $69.7M for the three months ended June 28, 2025.)
- 100,000 — Shares Repurchased (Number of common shares repurchased for $6.0M during the three months ended June 28, 2025.)
- $300.0M — Term Loan Facility (Principal amount due June 30, 2026, representing a significant debt obligation.)
- $250.0M — Revolving Credit Facility (Available credit, indicating liquidity but also potential for increased debt.)
Key Players & Entities
- HELIOS TECHNOLOGIES, INC. (company) — filer of the 10-Q
- PNC Bank National Association (company) — administrative agent and lender for the revolving credit facility
- Citibank (company) — lender for the Sydney Branch Term Loan Facility
- $1.5 million (dollar_amount) — net loss for the three months ended June 28, 2025
- $18.9 million (dollar_amount) — net income for the three months ended June 29, 2024
- $180.2 million (dollar_amount) — revenue for the three months ended June 28, 2025
- $212.7 million (dollar_amount) — revenue for the three months ended June 29, 2024
- $6.0 million (dollar_amount) — cost of common stock repurchased during the three months ended June 28, 2025
- $50.0 million (dollar_amount) — authorized amount for the share repurchase plan
- $300.0 million (dollar_amount) — principal amount of the term loan facility due June 30, 2026
FAQ
What was Helios Technologies' net income for the quarter ended June 28, 2025?
Helios Technologies reported a net loss of $1.5 million for the three months ended June 28, 2025, a significant decrease from a net income of $18.9 million in the prior-year period.
How much revenue did Helios Technologies generate in Q2 2025?
Helios Technologies generated $180.2 million in revenue for the three months ended June 28, 2025, which represents a 15.3% decrease compared to $212.7 million in the prior-year period.
What were the revenue changes in Helios Technologies' Hydraulics and Electronics segments?
The Hydraulics segment's revenue decreased by 17.5% to $110.5 million, and the Electronics segment's revenue decreased by 12.0% to $69.7 million for the three months ended June 28, 2025.
Did Helios Technologies repurchase any shares during the quarter?
Yes, Helios Technologies repurchased 100,000 shares of its common stock for $6.0 million during the three months ended June 28, 2025, under its $50.0 million share repurchase plan.
What is the status of Helios Technologies' term loan facility?
Helios Technologies has a term loan facility of $300.0 million with Citibank, Sydney Branch, which is due on June 30, 2026.
What is the primary reason for Helios Technologies' net loss?
The primary reason for Helios Technologies' net loss is a significant decline in revenue across both its Hydraulics and Electronics segments, coupled with other operational costs.
What are the key risks highlighted in Helios Technologies' Q2 2025 filing?
Key risks include the substantial decline in revenue and net income, indicating operational challenges, and the upcoming maturity of the $300.0 million term loan facility by June 30, 2026.
How does Helios Technologies' current performance compare to the previous year?
Helios Technologies' current performance shows a significant deterioration, moving from a net income of $18.9 million in the prior-year period to a net loss of $1.5 million, and a 15.3% revenue decrease.
Who are the key lenders for Helios Technologies' credit facilities?
PNC Bank National Association is the administrative agent and lender for the revolving credit facility, and Citibank, Sydney Branch, is a lender for the term loan facility.
What is the impact of the Q2 2025 results on Helios Technologies' strategic outlook?
The Q2 2025 results suggest a challenging strategic outlook, requiring the company to focus on managing its debt obligations and addressing the declining revenue trends in its core segments to regain profitability.
Risk Factors
- Challenging Market Conditions [high — market]: The company experienced a significant revenue decline of 15.3% in the three months ended June 28, 2025, compared to the prior year. Both the Hydraulics segment (-17.5%) and the Electronics segment (-12.0%) were negatively impacted, indicating broad-based market headwinds affecting demand for Helios' products.
- Debt Obligations [high — financial]: Helios Technologies has a substantial term loan facility of $300.0 million due on June 30, 2026. Managing this debt, especially in light of declining revenues and a recent net loss, presents a significant financial risk.
- Profitability Decline [high — financial]: The company reported a net loss of $1.5 million for the three months ended June 28, 2025, a stark contrast to the $18.9 million net income in the prior-year period. This sharp decline in profitability raises concerns about operational efficiency and market competitiveness.
- Share Repurchase Program [medium — financial]: During the three months ended June 28, 2025, the company repurchased 100,000 shares for $6.0 million under its $50.0 million share repurchase plan. While intended to return value to shareholders, significant cash outflows for buybacks could strain liquidity during challenging periods.
Industry Context
Helios Technologies operates in the industrial manufacturing sector, specifically in hydraulics and electronics. This sector is often cyclical and sensitive to broader economic conditions, capital expenditure cycles of its customers, and global supply chain dynamics. Recent performance suggests a slowdown in demand across key end markets.
Regulatory Implications
As a publicly traded company, Helios Technologies is subject to SEC regulations and reporting requirements, including timely filing of 10-Q reports. Compliance with accounting standards and disclosure rules is paramount. No specific new regulatory risks were highlighted in the provided context.
What Investors Should Do
- Monitor Debt Repayment Strategy
- Analyze Segment Performance Drivers
- Evaluate Cash Flow and Liquidity
Key Dates
- 2025-06-28: End of Second Quarter 2025 — Reporting period for the 10-Q, showing a net loss of $1.5M and revenue of $180.2M.
- 2025-06-30: Term Loan Facility Maturity — The $300.0 million term loan facility is due for repayment, posing a significant refinancing or repayment challenge.
- 2025-02-20: Share Repurchase Plan Authorized — Authorized a $50.0 million plan, under which $6.0 million was spent in Q2 2025.
- 2024-06-29: Prior Year Comparison Period — Reported $18.9M net income and $212.7M revenue for the comparable prior-year period, highlighting the current downturn.
Glossary
- Goodwill
- An intangible asset that arises when one company acquires another for a price greater than the fair market value of its net assets. (Goodwill of $280.0 million for the Hydraulics segment remained unchanged, suggesting no impairment charges were recognized in the period.)
- Term Loan Facility
- A type of loan, typically provided by banks, that has a specified repayment schedule and maturity date. (Helios has a $300.0 million term loan due June 30, 2026, representing a significant debt obligation.)
- Revolving Credit Facility
- A credit line that allows a company to borrow, repay, and re-borrow funds up to a certain limit over a specified period. (Helios has a $250.0 million revolving credit facility, indicating available liquidity but also potential for increased leverage.)
- Share Repurchase Plan
- A program authorized by a company's board of directors to buy back its own shares from the open market. (The company is actively repurchasing shares, having spent $6.0 million in the current quarter.)
Year-Over-Year Comparison
Compared to the prior-year period, Helios Technologies has seen a dramatic downturn. Revenue for the three months ended June 28, 2025, fell 15.3% to $180.2 million from $212.7 million. More critically, the company swung from a net income of $18.9 million to a net loss of $1.5 million, indicating significant pressure on profitability and operational performance.
Filing Details
This Form 10-Q (Form 10-Q) was filed with the SEC on August 5, 2025 regarding HELIOS TECHNOLOGIES, INC. (HLIO).