SARASOTA, Fla. - Helios Technologies, Inc. (NYSE: NYSE:HLIO), known for its specialized motion control and electronic controls technology, is currently evaluating the damage to its operations caused by Hurricane Milton. The storm, which directly struck Sarasota, the location of Helios's global headquarters and its Sun Hydraulics subsidiary, has necessitated a thorough assessment to determine the extent of the impact on the company's manufacturing capabilities.
Sean Bagan, the Interim President, CEO, and CFO, expressed primary concern for the safety and welfare of employees and the broader community affected by the hurricane. The company is in the process of determining the physical damage to its facilities and is coordinating with insurance partners to address financial losses resulting from the storm.
Helios Technologies plans to provide detailed updates and projections on the hurricane's effects on its financial results and operations once the evaluation is complete. As of now, the objective is to resume normal operations at the affected sites as promptly as possible.
Helios Technologies operates in various markets, including construction, material handling, agriculture, energy, and more, serving customers in over 90 countries. The company has a history of consistent shareholder dividends every quarter since going public in 1997.
This report is based on a press release statement from Helios Technologies, Inc. Additional information will be shared by the company once the full impact of Hurricane Milton is assessed.
In other recent news, Helios Technologies reported mixed Q2 2024 financial results, with sales surpassing expectations at $220 million, largely due to the strong performance of the Balboa Water Group. However, the company adjusted its sales guidance for the second half of the year, citing reduced demand in specific markets, while maintaining its EBITDA margin guidance. Despite a 7% year-over-year sales drop, Helios reported improved cash flow and liquidity and anticipates margin enhancement over the previous year.
Recent developments also include a strategic alliance with WaterGuru and a focus on new markets such as food equipment. However, the company has adjusted its sales guidance due to lower demand in agriculture and recreational markets. Despite this, Helios maintains its EBITDA margin guidance of 19.5% to 21.0%. The company also expects a 3% sales decline in Q3, but anticipates a 6% growth in Q4, marking the first top-line growth in several quarters.
Helios Technologies is undergoing a CEO transition aimed at bolstering returns and reducing debt further in the second half of the year. The company is also expanding into new markets and with current customers to utilize additional capacity. These recent developments provide insights into Helios Technologies' strategic moves to navigate current market conditions and position itself for future growth.
InvestingPro Insights
As Helios Technologies (NYSE: HLIO) grapples with the aftermath of Hurricane Milton, investors may find value in examining the company's financial health and market position. According to InvestingPro data, Helios Technologies has a market capitalization of $1.57 billion, reflecting its significant presence in the specialized motion control and electronic controls technology sector.
Despite the current challenges, InvestingPro Tips highlight some positive aspects of the company's financial standing. Notably, Helios Technologies has maintained dividend payments for 28 consecutive years, underscoring its commitment to shareholder returns even in turbulent times. This track record aligns with the company's statement about consistent quarterly dividends since going public in 1997.
Another InvestingPro Tip indicates that the company's liquid assets exceed short-term obligations, which could provide a financial buffer as it navigates the impact of the hurricane and works towards resuming normal operations. This liquidity position may be crucial in funding any necessary repairs or operational adjustments in the wake of the storm.
It's worth noting that Helios Technologies has shown a strong return over the last month, with a 17.99% price total return. This recent performance, coupled with analysts' predictions that the company will remain profitable this year, suggests a degree of resilience that may support its recovery efforts.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could be valuable in assessing Helios Technologies' outlook as it addresses the challenges posed by Hurricane Milton.
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