5 Revealing Analyst Questions From Helios’s Q3 Earnings Call

3 weeks ago 10

Petr Huřťák

Sun, November 9, 2025 astatine 11:33 PM CST 4 min read

Helios Technologies’ 3rd 4th saw a affirmative year-over-year income increase, yet the marketplace reacted negatively, reflecting capitalist concerns astir aboriginal momentum and borderline sustainability. Management pointed to beardown show successful its Electronics segment, peculiarly Enovation Controls, and improving request crossed its halfway regions. CEO Sean Bagan described the 4th arsenic a “turning point,” attributing the effect to renewed go-to-market strategies and higher lawsuit engagement. However, helium besides acknowledged the interaction of a goodwill write-down related to the i3PD acquisition and ongoing portfolio adjustments arsenic the institution adapts to end-market softness.

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Revenue: $220.3 cardinal vs expert estimates of $212.5 cardinal (13.3% year-on-year growth, 3.7% beat)
Adjusted EPS: $0.72 vs expert estimates of $0.66 (9.8% beat)
Adjusted EBITDA: $45.1 cardinal vs expert estimates of $42.36 cardinal (20.5% margin, 6.5% beat)
Revenue Guidance for Q4 CY2025 is $197 cardinal astatine the midpoint, beneath expert estimates of $201.2 million
Management raised its full-year Adjusted EPS guidance to $2.47 astatine the midpoint, a 2.7% increase
Operating Margin: 0.6%, down from 11.4% successful the aforesaid 4th past year
Organic Revenue roseate 12% twelvemonth connected twelvemonth vs expert estimates of 7.5% maturation (454.1 ground constituent beat)
Market Capitalization: $1.80 billion

While we bask listening to the management's commentary, our favourite portion of net calls are the expert questions. Those are unscripted and tin often item topics that absorption teams would alternatively debar oregon topics wherever the reply is complicated. Here is what has caught our attention.

Christopher Moore (CJS Securities) asked for details connected caller commercialized wins and visibility into 2026. CEO Sean Bagan cited caller contracts successful hydraulics and electronics, highlighting a important AGCO triumph and momentum successful recreational vehicles, portion stating that sustained measurement is cardinal for borderline recovery.
Moore (CJS Securities) followed up connected borderline progression and what it would instrumentality to instrumentality to humanities EBITDA margins. Bagan explained that achieving mid-20% margins requires some higher income volumes and continued outgo discipline, noting that a healthier premix and operational leverage volition beryllium essential.
Jeffrey Hammond (KeyBanc Capital Markets) inquired astir the recreational conveyance marketplace and inventory destocking. Bagan clarified that portion retail request is steady, transmission inventory levels person normalized, which should enactment unchangeable accumulation and gradual recovery.
Joseph Grabowski (Baird) asked astir antithetic items successful the Electronics conception and income pull-forward. Bagan acknowledged that astir $3 cardinal of Q4 income were pulled into Q3, but underlying request remains beardown for some Electronics and Hydraulics.
Jon Braatz (Kansas City Capital) questioned the i3PD goodwill impairment and turnaround prospects. CFO Jeremy Evans responded that engineering resources person been redeployed to halfway projects, and aboriginal bundle volition beryllium embedded successful Helios products alternatively than sold standalone, aligning with updated strategy.