Return to Growth and Margin Expansion
Helios Technologies reported a 13% sales increase year-over-year, with growth across all regions and business segments. The company achieved a record quarter for Enovation Controls and delivered above 20% adjusted EBITDA margin.
Strong Performance in Electronics
The Electronics segment grew 21% year-over-year, driven by record performance at Enovation Controls. Gross margin expanded by 420 basis points due to higher volumes and favorable mix.
Debt Reduction and Improved Leverage
Helios reduced its net debt-to-adjusted EBITDA leverage ratio to 2.4x after nine consecutive quarters of paying down debt. The company anticipates lowering the leverage ratio to around 2x by year-end.
Strategic Divestitures and Focused Portfolio
The sale of Custom Fluidpower closed with a gain of $21 million. Helios refocused i3PD resources, aligning them with core business projects and strategic goals.