Peter Kalemkerian's questions to Helios Technologies Inc (HLIO) leadership • Q2 2025
Question
Peter Kalemkerian, on behalf of Mig Dobre at Baird, asked for details on second-half margin expectations by segment, the extent of excess capacity in Hydraulics, a potential timeline to return to a 22-23% margin profile, and an update on the commercial food service market.
Answer
CEO Sean Bagan and VP Corporate Controller Jeremy Evans projected margin uplift driven by higher volumes and a favorable product mix in both segments. Evans noted the CFP divestiture would add approximately 50 basis points to the consolidated adjusted EBITDA margin. Bagan confirmed they have sufficient capacity for several years of growth. He also highlighted the commercial food service market as a key incremental growth area, citing a new win with Cleveland (Welbilt) and the rollout of the Cygnus Reach software platform.