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SARASOTA, Fla. - Helios Technologies, Inc. (NYSE:HLIO), a $1.17 billion market cap company known for its motion control and electronic controls technology, has declared a quarterly cash dividend of $0.09 per common share, continuing its 29-year history of consecutive payouts. The company’s commitment to shareholder returns is underscored by its record operational cash generation in 2024, exceeding $122 million, complemented by robust free cash flow of $95.1 million.
This long-standing dividend tradition places Helios among the less than 8% of U.S. listed companies that have achieved such a consistent record. Currently trading near its 52-week low at $35.05, with a healthy current ratio of 2.77, InvestingPro analysis suggests the stock is currently undervalued. Sean Bagan, President, CEO, and CFO, attributed this performance to the company’s strong cash generation and disciplined capital management.
The upcoming dividend is scheduled for payment on April 22, 2025, to shareholders on record as of April 4, 2025. With around 33.3 million shares of common stock outstanding, Helios’s consistent dividends reflect its financial robustness and strategic focus on growth in niche markets.
Helios Technologies operates globally, serving various sectors, including construction and agriculture, and has been a public entity distributing quarterly dividends since 1997. This announcement is based on a press release statement from Helios Technologies.
In other recent news, Helios Technologies reported mixed financial results for the fourth quarter of 2024. The company surpassed revenue expectations by reporting $179.5 million, exceeding the market consensus of $176.21 million. However, earnings per share (EPS) fell short at $0.33, compared to the anticipated $0.41. Despite this, Helios Technologies has projected a positive outlook for 2025, with revenue estimates between $775 million and $825 million and an adjusted EBITDA margin expected to range from 18.0% to 20.0%.
Additionally, Helios Technologies announced a $100 million share repurchase program, a strategic initiative that reflects confidence in its cash flow and future performance. Stifel analysts have maintained a Buy rating for the company, setting a price target of $60.00, acknowledging the company’s solid performance and optimistic guidance amid challenging market conditions. The firm noted that Helios Technologies’ outlook, which aligns with consensus expectations, is a positive indicator. Moreover, Helios Technologies achieved a record free cash flow conversion rate of 244% in 2024, despite a 4% decline in full-year sales to $806 million.
Looking ahead, the company expects a stronger performance in the latter half of 2025, driven by market improvements and new product developments. Helios Technologies’ strategic initiatives and operational efficiency have helped mitigate some negative impacts from weak markets, particularly in agriculture, mobile, and industrial sectors. The company’s focus on innovation and customer-centric strategies suggests a commitment to enhancing shareholder value and sustaining growth.
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