Helios Technologies Returns to Growth with 13% Year-Over-Year Sales Increase in Q3 2025 Amid Strengthening Market Demand
Helios Technologies, Inc. a global leader in highly engineered motion control and electronic control technologies, announced its financial results for the third quarter ended September 27, 2025. The company marked a significant return to top-line growth after nearly three years of sales decline, reporting a 13% year-over-year increase in sales as demand continued to strengthen across its core markets.
Sean Bagan, President and Chief Executive Officer of Helios Technologies, expressed optimism regarding the company’s performance, attributing the turnaround to disciplined execution, portfolio optimization, and operational improvements. “Our improved results in the third quarter are a testament to the Helios team’s successful execution of our strategy to create a higher-performing business,” Bagan stated. “We had stronger-than-expected sales, continued to improve our margins, and demonstrated financial discipline by strengthening our balance sheet and reducing our cash conversion cycle. We will also have a more meaningful reduction in our debt to end 2025, having monetized our CFP asset.”
Bagan emphasized that the company’s renewed growth underscores the resilience of its business model and its ability to adapt to changing market conditions. “We have returned to growth after nearly three years of sales declines,” he noted. “This upturn demonstrates the strength of our market positions and the effectiveness of our customer-centric strategy. Our funnel of opportunities continues to build as our refined go-to-market approach gains greater traction, and importantly, we are seeing new customer wins today as a result of innovation and efforts initiated about two years ago.”
Operational and Strategic Highlights
Helios Technologies operates through two primary business segments—Hydraulics and Electronics—both of which have undergone organizational restructuring to enhance efficiency and focus. Over the past several quarters, the company has executed a deliberate strategy aimed at improving operational alignment, integrating innovation-driven product development, and increasing the value derived from its global platform.
During the third quarter, Helios continued to refine its portfolio and assess long-term growth opportunities. This included a reorganization of its Hydraulics and Electronics segments to better align resources with customer needs and market demand. The company also redirected its i3 Product Development (i3PD) group to focus more closely on its core business areas, ensuring innovation efforts directly support the motion and control technologies that define Helios’s competitive advantage.
Additionally, Helios made meaningful progress in strengthening its software capabilities. The company fortified its software sales team and began redefining how it sells software embedded in its products—a key strategic initiative designed to enhance recurring revenue streams and expand the integration of smart, connected technologies across its product lines.
These steps are part of Helios’s ongoing effort to transform into a more agile and technology-driven enterprise. By emphasizing embedded software, intelligent controls, and integrated solutions, the company is positioning itself to capture greater value in industrial automation, off-highway, marine, and other performance-critical markets.
Financial Discipline and Balance Sheet Strength
A central focus of Helios’s third-quarter performance was financial discipline. The company strengthened its balance sheet by improving cash conversion and taking decisive steps to reduce debt levels. Monetization of its CFP asset provided additional financial flexibility, supporting Helios’s plan to lower its leverage ratio by the end of 2025.
In parallel, Helios implemented efficiency improvements across operations, leading to enhanced margins despite inflationary pressures and mixed demand conditions in certain regions. The company’s ongoing emphasis on working capital optimization—particularly through better inventory management and shorter cash cycles—has improved liquidity and positioned it well for sustained growth.
“We are demonstrating that the disciplined execution of our strategy delivers tangible results,” Bagan commented. “Our focus on operational efficiency, cost control, and customer-driven innovation is producing measurable benefits, and we are well on track to finish the year stronger, with a healthier balance sheet and an improved competitive position.”
Innovation and Customer-Centric Growth
Helios’s resurgence in 2025 is closely tied to its commitment to innovation and customer engagement. The company has invested heavily in product development, leveraging cross-segment collaboration to bring advanced solutions to market. Its customer-centric strategy—centered on listening to customer challenges, co-developing customized systems, and providing integrated hardware and software offerings—is paying dividends in the form of stronger partnerships and new business wins.
The company’s refined go-to-market approach emphasizes speed, collaboration, and value creation. By streamlining its sales processes and enhancing alignment between its regional sales and engineering teams, Helios has built a more responsive and effective customer interface.
Bagan highlighted that these improvements are translating into tangible results: “Our funnel of opportunities continues to build as our refined go-to-market approach gains greater traction. We are seeing new customer wins today that stem directly from innovation and investments made about two years ago. These wins validate our long-term focus on developing technologies that solve real-world challenges and improve productivity for our customers.”
Helios’s innovation engine, driven through its i3PD group and other research units, remains central to its growth ambitions. The company continues to explore opportunities in electrification, digital hydraulics, and smart system integration—areas that align with global trends toward sustainability and automation.
Segment Performance and Market Dynamics
The Hydraulics segment benefited from improving demand across construction, agriculture, and industrial applications. Increased investments in infrastructure and equipment replacement cycles contributed to order growth, while operational streamlining and component standardization improved cost efficiencies.
The Electronics segment saw stronger demand in off-highway vehicles, marine, and specialized industrial markets, supported by ongoing recovery in customer spending. The segment’s focus on integrating motion control with intelligent electronic systems has created differentiation in key markets. By embedding software intelligence and connectivity into its control systems, Helios has expanded its value proposition and improved customer retention.
Although certain end markets remain uneven, particularly in Europe, the company reported positive momentum across North America and parts of Asia. Early signs of recovery in the agricultural and industrial sectors are expected to continue into 2026, providing a favorable backdrop for sustained growth.
Looking ahead, Helios Technologies anticipates continued improvement in demand and profitability through the remainder of 2025. The company plans to maintain its focus on operational discipline while investing strategically in innovation and market expansion.
Bagan stated that Helios is well-positioned for long-term success: “We are encouraged by the combination of the internal progress we are making as an organization and the subtle tailwinds we are starting to see in certain markets. As these tailwinds strengthen, we expect to accelerate our growth trajectory while maintaining our commitment to profitability and shareholder value.”
The company remains focused on advancing its portfolio transformation—shifting toward higher-margin, technology-enabled solutions that deliver differentiated performance. Ongoing efforts to integrate software, electronics, and hydraulics are expected to further enhance product capabilities and unlock new revenue opportunities.
Helios Technologies’ third-quarter results mark a pivotal point in its transformation journey. With a 13% year-over-year increase in sales, improved margins, and renewed customer confidence, the company has demonstrated its ability to execute effectively in a dynamic environment. Its strategic realignment, innovation focus, and disciplined financial management have collectively laid the groundwork for sustainable growth.
As Helios continues refining its portfolio, strengthening its technological capabilities, and deepening customer relationships, it stands poised to capture new opportunities across industrial, mobile, and electronic control markets. The third quarter of 2025 not only signifies a return to growth but also reflects a broader transformation—one that positions Helios Technologies as a more agile, customer-driven, and future-ready enterprise.
