The following is a summary of the Helios Technologies, Inc. (HLIO) Q1 2024 Earnings Call Transcript:
Financial Performance:
Helios Technologies reported Q1 2024 sales of $212 million, driven by stronger demand at Balboa business.
Gross profit for the quarter was up 22% with a gross margin expansion of 310 basis points compared to Q4 2023 but contracted 160 points YoY to 31.7%.
The company posted an adjusted operating margin of 14.5% and adjusted EBITDA of $38.6 million, down 210 basis points YoY.
Diluted non-GAAP EPS for the quarter stood at $0.53.
For 2024, sales are expected between $840 to $860 million, with an adjusted EBITDA between 19.5% to 21%, and diluted non-GAPP earnings per share forecasted between $2.35 to $2.75.
Business Progress:
Helios Technologies confirmed guidance for 2024, reflecting improvements in all regions and expansions into the commercial food service space.
A partnership with WaterGuru is targeted at enhancing water treatment solutions for various pools markets.
Investments in capabilities and capacity expansion are intended to spur the volume and margin in the future.
Financial forecasting and process improvements across all organizations are underway.
For Q2 2024, sales foresight is between $213 to $218 million, with an adjusted EBITDA margin range of 19.0% to 20.5%.
Volume growth and profitability rate expansion have been seen from operational improvements and disciplined cost management.
Strategic investments in innovation, acquisitions, and regional capacity indicate positive growth signs for future market recovery.
More details: Helios Technologies IR
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