Helios Technologies Executing Augmented Strategy; Opens Two North American Hydraulics Centers of Excellence and Advances Innovations

Rhea-AI Summary

Helios Technologies, Inc. (HLIO) announces the full operational status of its Regional Operational Centers of Excellence for its Hydraulics segment in North America. The facility expansion in Mishawaka, Indiana serves as the hub for manifold machining and integrated package assembly operations, supporting approximately $100 million in run-rate annual revenues. Additionally, Faster’s North American quick release coupling order fulfillment has been relocated from Maumee, Ohio to Sarasota, Florida. Helios aims to be the global leader of electro/hydraulic solutions, leveraging its expertise in hydraulics and electronics to push beyond conventional motion control approaches. The company's dedication to innovation and excellence has been recognized with hundreds of active patents and trademarks, showcasing a commitment to delivering groundbreaking solutions.

Insights

Market Research Analyst

The expansion of Helios Technologies' facilities and the consolidation of its hydraulic segment operations in North America signify an important strategic move. The increase in footprint from 72,000 to 122,000 square feet and the subsequent tripling of run-rate annual revenues from $30 million to $100 million, indicate a robust scaling of operations. This expansion not only enhances Helios' manufacturing capabilities but also demonstrates the company's commitment to centralizing its expertise in hydraulic manifold solutions.

From a market perspective, the consolidation effort may streamline operations and reduce costs over time, potentially improving profit margins. Investors may view this as a positive development, anticipating that the 'in the region, for the region' strategy could lead to increased market penetration and customer satisfaction due to a more localized and responsive supply chain.

Financial Analyst

The operational milestones achieved by Helios Technologies, particularly the strong throughput levels supporting significantly increased run-rate annual revenues, are indicative of successful growth initiatives. This financial growth, if sustained, could positively influence the company's stock performance as it reflects increased operational efficiency and market demand. Additionally, the relocation of Faster's order fulfillment operations to Florida may result in cost savings and operational synergies.

Investors should monitor how these developments affect the company's financials in upcoming quarters, especially looking at metrics such as earnings per share (EPS), return on investment (ROI) and overall market share growth within the hydraulics industry. A key point of interest will be the company's ability to leverage its expanded capacity to capture additional market share and how this translates into long-term shareholder value.

Intellectual Property Strategist

The announcement of Helios Technologies' hundreds of active and recently filed patents and trademarks is a significant indicator of the company's dedication to innovation and maintaining a competitive edge in the market. Intellectual property (IP) is critical in the technology sector as it protects innovation and can provide a company with a unique market position. Helios' extensive IP portfolio could serve as a barrier to entry for competitors and allow the company to command premium pricing for its proprietary solutions.

For stakeholders, the emphasis on innovation and IP protection is a sign of a forward-thinking company that is invested in sustaining its market leadership. The impact of this IP on Helios' valuation could become more pronounced as the company leverages its patents to develop new products and enter new markets, which may result in increased revenue streams and market differentiation.

SARASOTA, Fla.--(BUSINESS WIRE)-- Helios Technologies, Inc. (NYSE: HLIO) (“Helios” or the “Company”) a global leader in highly engineered motion control and electronic controls technology for diverse end markets, is pleased to announce that both Regional Operational Centers of Excellence (“CoE”) for its Hydraulics segment in North America have been fully operational since the fourth quarter of 2023.

Aerial View of the Expanded Hydraulics Manifold Solutions Center of Excellence, Indiana (Photo: Business Wire)

The facility expansion in Mishawaka, Indiana is now the Hydraulic Manifold Solutions CoE. Helios added 50,000 square feet to the existing 72,000 square foot facility. It serves as the hub for manifold machining and integrated package assembly operations, consolidating operations from Sun Hydraulics, Faster Inc., and Daman Products into a North American center for integrated hydraulics solutions. Schultes Precision Manufacturing provides enhanced support for diversified machining and aided with the machining of manifolds during the transition. The Hydraulic Manifold Solutions CoE has reached strong throughput levels supporting approximately $100 million in run-rate annual revenues, up from approximately $30 million from one year ago and allows for future growth.

Additionally, Faster’s North American quick release coupling order fulfillment has been relocated from Maumee, Ohio to one of the Sun Hydraulics facilities in Sarasota, Florida. This facility is now the Hydraulic Valve and Coupling Solutions CoE. This transfer streamlines operations, provides space for future coupling manufacturing, and facilitates technological advancements through our Robert E. Koski Center of Engineering Innovation, enabling the creation of cutting-edge hydraulic solutions for our valued customers.

“By completing this major integration and consolidation, combined with the strength of innovation within our hydraulics operations in Italy, we have created the platform to be the global leader of electro/hydraulic solutions,” said Josef Matosevic, President and Chief Executive Officer of Helios. “Leveraging our expertise in hydraulics and electronics, we aim to push beyond the boundaries of conventional motion control approaches, solidifying our unique position within the industry. Helios continues to redefine the possibilities of hydraulic solutions, delivering unprecedented value and performance to our customers. This execution enhances our ‘in the region, for the region’ strategy, promotes enhanced R&D collaboration, and enables expanded capacity to support our future growth.”

Helios’ dedication to innovation and excellence has been recognized with hundreds of active, and recently filed patents and trademarks. These patents showcase a commitment to pushing the boundaries and introducing new and groundbreaking solutions. The Company’s collection of intellectual property rights, trade secrets, and manufacturing know-how built from decades of operation is a testament to its commitment to deliver technology solutions to customers that ensure safety, reliability, connectivity, and control.

About Helios Technologies
Helios Technologies is a global leader in highly engineered motion control and electronic controls technology for diverse end markets, including construction, material handling, agriculture, energy, recreational vehicles, marine and health and wellness. Helios sells its products to customers in over 90 countries around the world. Its strategy for growth is to be the leading provider in niche markets, with premier products and solutions through innovative product development and acquisition. The Company has paid a cash dividend to its shareholders every quarter since becoming a public company in 1997. For more information please visit: www.heliostechnologies.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240208672536/en/

Investor and Media:

Tania Almond

Vice President of Investor Relations and Corporate Communication

(941) 362-1333

tania.almond@HLIO.com

Deborah Pawlowski

Kei Advisors LLC

(716) 843-3908

dpawlowski@keiadvisors.com

Source: Helios Technologies, Inc.

FAQ

What is the status of Helios Technologies, Inc.'s Regional Operational Centers of Excellence for its Hydraulics segment in North America?

The Regional Operational Centers of Excellence for the Hydraulics segment in North America have been fully operational since the fourth quarter of 2023.

What is the facility expansion in Mishawaka, Indiana for?

The facility expansion in Mishawaka, Indiana serves as the hub for manifold machining and integrated package assembly operations.

How much run-rate annual revenues does the Hydraulic Manifold Solutions CoE support?

The Hydraulic Manifold Solutions CoE supports approximately $100 million in run-rate annual revenues.

Where has Faster’s North American quick release coupling order fulfillment been relocated to?

Faster’s North American quick release coupling order fulfillment has been relocated from Maumee, Ohio to Sarasota, Florida.

What is Helios Technologies, Inc.'s goal regarding electro/hydraulic solutions?

Helios aims to be the global leader of electro/hydraulic solutions, pushing beyond conventional motion control approaches.

How has Helios Technologies, Inc.'s dedication to innovation and excellence been recognized?

Helios' dedication to innovation and excellence has been recognized with hundreds of active patents and trademarks.