Helios Technologies announces $100 million stock buyback

Published 24/02/2025, 22:22
Helios Technologies announces $100 million stock buyback

SARASOTA, Fla. - Helios Technologies, Inc. (NYSE: NYSE:HLIO), known for its highly engineered motion control and electronic controls technology, has launched a share repurchase program with a budget of up to $100 million. Sean Bagan, President, CEO, and CFO, expressed confidence in the company’s financial health and its capacity to invest in growth while also enhancing shareholder returns. According to InvestingPro data, the company maintains a strong current ratio of 3.03, with liquid assets well exceeding short-term obligations. The buyback announcement comes as the stock trades near its 52-week low of $38.52, while the company has maintained dividend payments for 29 consecutive years.

The repurchase program will be at the discretion of the management and may occur in the open market or through privately negotiated transactions. These could be structured via investment banking institutions or other methods compliant with securities laws, including Rule 10b5-1 trading plans. Factors influencing the repurchases include market conditions, stock price, regulatory requirements, and capital availability. The program will be financed through existing cash reserves and operational cash flow. InvestingPro analysis indicates the company generated $91.7 million in levered free cash flow over the last twelve months, suggesting sufficient capacity for the buyback program. For detailed financial analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, covering over 1,400 US stocks.

Helios Technologies operates globally, serving various industries such as construction, material handling, agriculture, energy, and more, with customers in over 90 countries. The company focuses on niche market leadership through premier products and solutions, driven by continuous product development and strategic acquisitions. With annual revenue of $819.8 million and a market capitalization of $1.29 billion, Helios has maintained a track record of quarterly cash dividends since going public in 1997. InvestingPro identifies several additional bullish indicators for the company, with 6 more exclusive ProTips available to subscribers.

The announcement is based on a press release statement from Helios Technologies.

In other recent news, Helios Technologies has announced the promotion of Sean P. Bagan to the position of President and Chief Executive Officer. Bagan, who has been serving as the Interim President, CEO, and CFO, will continue his role as CFO until a successor is appointed. This leadership change follows a comprehensive search conducted by an external firm, and Bagan’s election to the Board of Directors is scheduled for the June 2025 Annual Meeting. Additionally, Helios Technologies has partnered with Alto-Shaam to enhance the ChefLinc™ remote oven management system through i3 Product Development’s Cygnus Reach software platform. This collaboration has resulted in improved scalability and security, offering real-time insights into oven performance and increasing operational efficiency. The integration allows service teams to diagnose issues remotely, significantly reducing costs associated with service calls and warranty expenses. These developments underscore Helios Technologies’ commitment to innovation and customer-centric solutions across various industries.

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