Helios Technologies (NYSE:HLIO) used its 2026 Investor Day in Sarasota, Florida, to outline a growth and margin expansion plan it calls its CORE 2030 strategy, while also reviewing recent operating progress and a shift toward a more disciplined operating model and capital allocation framework.
Company snapshot and recent turnaround
Vice President of Investor Relations and Corporate Communication Tania Almond said the company recently reported 2025 results of $839 million in revenue, and noted that the company completed a divestiture in 2025. On a pro forma basis excluding that divested business, she said results were $792 million. Almond also said that electronics now represents nearly 40% of total revenue, and that the company’s mix remains diversified by channel and end market.
CORE 2030: doubling sales and lifting profitability
Bagan said Helios is pursuing a plan to “double the size” of sales by 2030, supported by what the company calls the Helios Momentum Model. He emphasized a more structured operating cadence through the Helios Business System, including strategic planning, goal deployment, quarterly and monthly business reviews, and monthly go-to-market reviews where revenue-generating sales teams report out to leadership.
Bagan highlighted several 2025 proof points tied to the company’s commercial and product execution:
- $60 million of new business wins in 2025, described as projected annual run-rate business as programs ramp.
- 11 “meaningful” product launches in 2025, which management characterized as incremental (not cannibalizing existing products).
- Employee metrics including 30 “boomerang” employees returning to the company, average tenure of 9 years, and an employee net promoter score increase of 13 points year over year.
Bagan also said the company exited 2025 with improving growth rates, citing 13% sales growth in the third quarter and 17% in the fourth quarter, and noted that the company’s 2026 outlook included at least 20% growth at the low end of the company’s guidance range. He said Helios’ commitment includes reaching adjusted EBITDA margins exceeding 25% over time.
Segment highlights: electronics and hydraulics
Billy Aldridge, president of the electronics segment, described the business as providing rugged hardware, software, and systems-level solutions. He said electronics is heavily weighted to North America (about 80%) and that the segment is “underserved” in EMEA and APAC, which management views as an expansion opportunity.
Aldridge said Balboa Water Group is a market leader in health and wellness, and he referenced a recent press release involving Jacuzzi to add more content. He also said Balboa is launching more product in the current year than in the last 10 years, and highlighted water care initiatives such as PureZone and a broader move toward more intelligent, sensing-driven solutions.
On the hydraulics side, Rick Martich, president of hydraulics for motion control technologies, emphasized brand trust and described Sun Hydraulics’ cartridge valves and manifold-integrated packages as being used in critical load-holding applications. He also highlighted focus areas including defense and aerospace, citing efforts such as pursuing ITAR and CMMC certifications to support deeper penetration.
Matteo Arduini, president of hydraulics for fluid conveyance technologies, described Faster’s coupling and multi-connection portfolio and said agriculture represents about 60% of Faster’s business, with construction and mobile equipment as the second-largest market. Arduini discussed new and adjacent markets including oil and gas, hydrogen applications, and what he called “real news” for Faster: thermal management for data centers. He said Faster developed and tested its own product for data center liquid cooling systems, built a dedicated supply chain, and is under NDA with “important OEMs and hyperscaler” customers, though he said the opportunity is not yet reflected as current sales.
Financial path to 2030: organic growth, M&A, and shareholder returns
CFO Jeremy Evans presented a framework for reaching the 2030 targets, beginning with the pro forma 2025 base of $792 million and citing a 2026 guidance midpoint of $840 million. Evans said the company expects organic revenue to grow to roughly $1.1 billion by 2030, leaving a roughly $500 million gap to be filled through acquisitions.
Evans said the company reported 19.2% adjusted EBITDA in 2025 and targeted 25%+ by 2030, driven by volume, productivity, footprint optimization, and portfolio actions, including the margin benefit from the divestiture of Custom Fluidpower. He said the company expects free cash conversion of about 100% and capex of 3% to 6% of sales, reflecting equipment replacement, product-related investments, and automation.
Evans also discussed capital allocation, noting the company paid down $153 million of debt across 2024 and 2025 and exited 2025 with net leverage of 1.8x, within a target range of 1.5x to 2.5x. He said the company’s dividend track record spans more than 28 years and that the board approved a more than 30% increase in the dividend for the first quarter of 2026—the first dividend increase in company history. Evans also reviewed the company’s $100 million share repurchase authorization and said the company repurchased about $14 million, or roughly 1% of shares, under that program.
On M&A, leadership emphasized greater discipline and integration planning. Evans said targets must meet strategic criteria around culture, product fit, and market growth potential, and financial guardrails including year-one accretion, targeted synergies, and ROIC discipline. He noted that Helios’ 2025 ROIC was 5.7% excluding an impairment charge and said the company is targeting low-to-mid teens ROIC over time.
In closing remarks, Bagan said the company is focused on “consistent, scalable execution” to meet its 2030 commitments, with momentum supported by product development, commercial execution, operational efficiency efforts, and a balance sheet positioned to re-enter acquisitions under a defined framework.
About Helios Technologies (NYSE:HLIO)
Helios Technologies, Inc develops and manufactures engineered motion control and electronic control products for a wide range of industrial and mobile equipment applications. The company’s Hydraulics segment designs and produces hydraulic cartridge valves, manifold systems, pumps and motors, filtration solutions and off-highway joysticks. Its Electronic Controls segment offers programmable electronic control units, wireless telematics, human-machine interfaces and software to optimize performance, efficiency and safety for equipment OEMs and end users.
Through its global network of manufacturing facilities, service centers and technology centers, Helios Technologies serves markets in agriculture, construction, material handling, mining, municipal and recreational vehicles, as well as industrial automation and infrastructure equipment.
