# Helios Technologies, Inc

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Helios Technologies, Inc).

## Overview

Helios Technologies, Inc. designs and manufactures engineered motion-control and electronic control solutions used in industrial and mobile equipment. Its business is organized around hydraulics and electronics, supplying components and systems that help customers control power, movement, and automation in demanding applications.

## Products & services

• Hydraulic components, manifolds and integrated package assemblies
• Electronic controls and related systems
• Motion-control solutions for industrial and mobile equipment
• Engineering and manufacturing services, including regional production support

- **Hydraulics** (70%) — Hydraulic products and assemblies used in motion-control and power-transmission applications.
- **Electronics** (30%) — Electronic control products and systems used to manage equipment functions and automation.

- Hydraulic components, manifolds and integrated package assemblies
- Electronic controls and related systems
- Motion-control solutions for industrial and mobile equipment
- Engineering and manufacturing services, including regional production support

## Customers

Helios sells into capital goods end markets, so its customers are equipment makers and distributors that need reliable motion-control components. The company also serves industrial users exposed to economic cycles, which makes demand sensitive to manufacturing activity, customer inventory levels, and end-market capex. Export customers are important as the company ships products from U.S. locations to more than 40 countries.

- **Industrial OEMs** (primary) — Buy hydraulic and electronic control components for equipment platforms and value reliability, integration, and supply continuity.
- **Mobile equipment manufacturers** (primary) — Buy motion-control and hydraulic systems used in mobile machinery where performance and durability matter.
- **Distributors** (secondary) — Purchase products for resale into fragmented industrial and capital goods channels.
- **Export customers** (secondary) — Buy from U.S. production sites in international markets, especially where local sourcing or technical support is needed.

- OEMs buying hydraulic and electronic controls for new equipment
- Industrial customers needing motion-control components and assemblies
- Distributors that resell products into fragmented end markets
- Export customers across more than 40 countries
- Customers seeking localized supply to reduce tariff and logistics risk

## Geography

Helios operates with a meaningful U.S. export footprint, shipping products from U.S. locations to more than 40 countries. The company is also actively optimizing its European manufacturing network, including shifting some production to Roncolo and Rivolta in Italy, which suggests geography is a key lever for cost, capacity, and tariff mitigation.

- **United States exports** (13.9%) — Three months ended June 28, 2025; exports from U.S. locations as a share of total sales.
- **China exports** (1.6%) — Three months ended June 28, 2025; exports from U.S. locations to China as a share of total sales.
- **United States exports** (14.2%) — Six months ended June 28, 2025; exports from U.S. locations as a share of total sales.
- **China exports** (2.5%) — Six months ended June 28, 2025; exports from U.S. locations to China as a share of total sales.

- U.S. locations export to more than 40 countries
- China is a disclosed export destination and tariff exposure point
- European operations are being restructured around Italy facilities
- Roncolo, Italy now handles some manifolds and integrated package assembly
- Rivolta, Italy absorbed some turning and lathing operations

## Strategy

Management is focused on optimizing the manufacturing footprint, especially in Europe, to improve efficiency and capacity allocation. It is also using regional production, local sourcing, and pricing actions to offset tariff pressure while preserving customer relationships and demand.

- **Regional manufacturing optimization** (medium-term) — Improves operating efficiency, capacity utilization, and supply resilience.
- **Tariff mitigation** (short-term) — Protects margins and customer demand in a fluid trade environment.
- **Capital discipline and liquidity management** (short-term) — Supports operations, debt service, and optional share repurchases.

- Optimize European operations through facility and process restructuring
- Shift production to regional sites to improve capacity and cost structure
- Source more components locally to reduce tariff exposure
- Use pricing actions to offset higher import costs
- Maintain liquidity while repaying borrowings and funding operations

## Risks

Helios is exposed to cyclical demand in capital goods, so customer spending can weaken when industrial activity slows. Tariffs, trade restrictions, and foreign exchange movements can affect both costs and demand, while restructuring execution and leverage add operational and financial risk.

- **Tariff and trade-policy exposure** [high] — The company exports from U.S. locations to more than 40 countries and imports components, so tariff changes can hit both cost and demand.
- **Cyclical end-market demand** [high] — Hydraulics and electronics serve capital goods industries that move with industrial production and customer capex.
- **Restructuring execution risk** [medium] — Facility transfers, workforce reductions, and paused restructuring phases can create disruption and one-time costs.
- **Interest rate risk on variable debt** [medium] — Borrowings under revolving credit and term loans reprice with base rates, affecting financing costs.

- Capital goods demand is cyclical and tied to industrial activity
- Tariffs can raise costs and reduce demand if prices increase
- Export exposure creates trade-policy and retaliation risk
- Restructuring may disrupt operations or fail to deliver savings
- Variable-rate debt exposes earnings to higher interest rates

## Accounting

Key accounting judgments center on inventory, goodwill, long-lived assets, accruals, income taxes, and fair value measurements. The company also has restructuring-related charges and accelerated amortization tied to the HCEE workforce intangible, which can create period-to-period volatility in operating results.

- **Inventory and long-lived asset impairment** — Could create non-cash charges when demand weakens or facilities are reconfigured.
- **Goodwill and intangible assets** — Affects operating income and balance sheet carrying values.
- **Restructuring and accelerated amortization** — Creates near-term expense spikes and distorts underlying operating trends.
- **Variable-rate debt and interest expense** — Higher rates increase financing costs and reduce net income.

- Inventory and long-lived asset impairment judgments can affect earnings
- Goodwill and intangible asset reviews may trigger non-cash charges
- Restructuring costs and accelerated amortization affect comparability
- Income tax estimates can move with jurisdiction mix and restructuring
- Fair value measurements matter for acquisition-related assets and liabilities

---

*Last updated: 2026-09-24T11:28:24.491269+00:00*