Helios Technologies, Inc. (HLIO): Business Model Canvas [11-2024 Updated]

Discover the innovative world of Helios Technologies, Inc. (HLIO) as we delve into its Business Model Canvas. This strategic framework highlights how Helios leverages key partnerships, engages with diverse customer segments, and drives revenue through its high-quality hydraulic and electronic systems. Join us below to explore the intricacies of their operations, from manufacturing to customer relationships, and see how they maintain a competitive edge in the industry.

Helios Technologies, Inc. (HLIO) - Business Model: Key Partnerships

Collaborations with suppliers for hydraulic and electronic components

Helios Technologies maintains strong relationships with various suppliers to secure hydraulic and electronic components essential for its product offerings. The company’s strategic sourcing focuses on ensuring quality while managing costs effectively. In 2024, Helios reported total net sales of $626.4 million, with cost of sales at $428.1 million, indicating a gross profit of $198.3 million . This highlights the importance of stable supplier relationships in maintaining margins amidst fluctuating material costs.

Strategic alliances with engineering firms for product development

To enhance its product development capabilities, Helios Technologies has established strategic alliances with engineering firms. These collaborations facilitate innovation in hydraulic and electronic systems, enabling the company to stay competitive in the market. The company's investment in research and development for the nine months ended September 28, 2024, was approximately $23.6 million, which underscores the commitment to leveraging external expertise for technological advancements .

Partnerships with distributors for market reach

Helios Technologies partners with various distributors to expand its market reach, particularly in the Americas, EMEA, and APAC regions. For the three months ended September 28, 2024, net sales by region indicated a total of $194.5 million, with the Americas contributing $103.0 million, EMEA at $43.2 million, and APAC at $48.3 million . These partnerships enable Helios to effectively penetrate diverse markets and cater to specific customer needs.

Partnership Type	Key Benefits	Financial Impact (2024)
Supplier Collaborations	Cost management, quality assurance	Gross profit of $198.3 million
Engineering Alliances	Innovation, product development	R&D investment of $23.6 million
Distributor Partnerships	Market reach, customer engagement	Net sales of $626.4 million

Helios Technologies, Inc. (HLIO) - Business Model: Key Activities

Manufacturing hydraulic and electronic products

Helios Technologies, Inc. specializes in manufacturing hydraulic and electronic products, which are pivotal in various industries including agriculture, industrial, and mobile sectors. For the nine months ended September 28, 2024, Helios reported net sales of $626.4 million, down from $642.2 million in the same period of 2023, reflecting a decline of 2.5%. The Hydraulics segment contributed $417.5 million in net sales, while the Electronics segment accounted for $208.9 million.

Segment	Net Sales (in millions)	% Change (YoY)
Hydraulics	$417.5	(3.4%)
Electronics	$208.9	(0.6%)
Total	$626.4	(2.5%)

Research and development for innovative solutions

Investment in research and development (R&D) is crucial for Helios to maintain its competitive edge and foster innovation. For the nine months ended September 28, 2024, Helios allocated $23.6 million towards amortization of intangible assets, which includes R&D costs. The focus on R&D resulted in a gross profit of $198.3 million, representing a gross profit margin of 31.7%, slightly down from 32.2% in the previous year.

Period	R&D Investment (in millions)	Gross Profit (in millions)	Gross Profit Margin (%)
9 Months Ended Sept 28, 2024	$23.6	$198.3	31.7%
9 Months Ended Sept 30, 2023	$24.7	$206.5	32.2%

Quality control and compliance with industry standards

Helios places a strong emphasis on quality control and compliance with industry standards to ensure the reliability of its products. The company reported operating income of $68.5 million for the nine months ended September 28, 2024, with an operating income margin of 10.9%, a slight increase from 10.6% in the previous year. This focus on quality is essential for maintaining customer trust and satisfaction.

Period	Operating Income (in millions)	Operating Income Margin (%)
9 Months Ended Sept 28, 2024	$68.5	10.9%
9 Months Ended Sept 30, 2023	$68.0	10.6%

Helios Technologies, Inc. (HLIO) - Business Model: Key Resources

Advanced manufacturing facilities in the Americas and EMEA

Helios Technologies operates advanced manufacturing facilities strategically located in the Americas and EMEA (Europe, the Middle East, and Africa). As of September 28, 2024, the company reported tangible long-lived assets of $140.4 million in the Americas, $39.7 million in EMEA, and $19.1 million in APAC, totaling $199.2 million. The facilities support the production of hydraulic and electronic components, essential for various industries, including agriculture, industrial, and mobile applications.

Skilled workforce with expertise in engineering and production

Helios Technologies boasts a skilled workforce that is crucial for maintaining its competitive edge. The company emphasizes engineering and production expertise, which is reflected in its operational efficiency. For the first nine months of 2024, Helios reported net income of $34.2 million, with operating income as a percentage of sales increasing to 10.9%. This growth can be attributed in part to the capabilities of its workforce in optimizing production processes and reducing costs.

Intellectual property including patents and proprietary technology

Helios Technologies holds a significant portfolio of intellectual property, including patents and proprietary technologies that enhance its product offerings. The company has focused on innovation, as evidenced by its investment in research and development, which totaled approximately $2.6 million in the first three quarters of 2024. This investment supports the development of advanced hydraulic and electronic solutions that meet evolving market demands.

Key Resource	Details	Financial Impact
Manufacturing Facilities	Americas: $140.4M, EMEA: $39.7M, APAC: $19.1M	Total tangible long-lived assets: $199.2M
Skilled Workforce	Expertise in engineering and production	Operating income: $68.5M (10.9% of sales)
Intellectual Property	Investment in R&D: $2.6M	Supports innovation and product development

Helios Technologies, Inc. (HLIO) - Business Model: Value Propositions

High-quality hydraulic and electronic systems tailored to customer needs

Helios Technologies, Inc. specializes in providing high-quality hydraulic and electronic systems that cater to various industries including agriculture, construction, and health and wellness. In the nine months ended September 28, 2024, Helios reported net sales of $626.4 million, with the hydraulics segment contributing $417.5 million and the electronics segment contributing $208.9 million.

Strong focus on innovation and technology integration

Helios emphasizes innovation by integrating advanced technologies into its products. The company invests approximately 3% to 4% of its sales into capital expenditures for improvements in manufacturing technology and capacity expansion. In 2024, Helios experienced a gross profit margin of 31.7%, demonstrating its ability to maintain profitability through effective technology integration.

Reliable supply chain with global distribution capabilities

Helios boasts a reliable supply chain supported by global distribution capabilities, which is essential for meeting customer demands efficiently. As of September 28, 2024, the company had total assets amounting to $1.57 billion, enabling it to maintain a robust operational framework. The geographical distribution of net sales shows that the Americas contributed $334.2 million, EMEA $147.0 million, and APAC $145.2 million, reflecting its extensive reach.

Segment	Net Sales (in millions)	Gross Profit (in millions)	Gross Profit Margin (%)
Hydraulics	$417.5	$130.3	31.2%
Electronics	$208.9	$68.0	32.6%
Total	$626.4	$198.3	31.7%

In summary, Helios Technologies’ value propositions are centered around high-quality, tailored systems, a commitment to innovation, and a reliable supply chain that enables it to serve a diverse customer base effectively. The company’s focus on maintaining strong financial performance is evident from its consistent gross profit margins and diversified revenue streams across regions.

Helios Technologies, Inc. (HLIO) - Business Model: Customer Relationships

Direct engagement with customers for feedback and customization

Helios Technologies, Inc. actively engages with customers to gather feedback and facilitate product customization. In the third quarter of 2024, the company reported net income of $11.4 million, a significant increase of 225.7% from the previous year. This growth can be partly attributed to their focus on customer-centric initiatives.

After-sales support and service for product maintenance

After-sales support is a critical component of Helios's customer relationship strategy. In the nine months ended September 28, 2024, the company achieved a gross profit of $198.3 million, which reflects a gross profit margin of 31.7%. This margin indicates the effectiveness of their after-sales service in maintaining customer satisfaction and loyalty.

Metric	Value (2024)	Previous Year Value (2023)	% Change
Net Income	$34.2 million	$34.1 million	0.3%
Gross Profit	$198.3 million	$206.5 million	(4.0%)
Operating Income	$68.5 million	$68.0 million	0.7%

Building long-term partnerships with key clients

Helios Technologies places a strong emphasis on forming long-term partnerships with key clients. In the nine months ending September 28, 2024, net sales were reported at $626.4 million, a decrease of 2.5% compared to the previous year. However, the company continues to invest in relationships that enhance customer retention and collaboration.

Region	Net Sales (Q3 2024)	Net Sales (Q3 2023)	% Change
Americas	$103.0 million	$115.1 million	(14.3%)
EMEA	$43.2 million	$44.5 million	(2.9%)
APAC	$48.3 million	$41.8 million	15.6%

Helios Technologies, Inc. (HLIO) - Business Model: Channels

Direct sales through company website and sales teams

Helios Technologies, Inc. employs a direct sales strategy via its official website, which allows for streamlined customer interactions and sales transactions. The company reported net sales of $626.4 million for the nine months ended September 28, 2024, with a gross profit of $198.3 million, reflecting a gross profit margin of 31.7%.

The effectiveness of the direct sales approach is illustrated by the operating income, which stood at $68.5 million for the same period, translating to an operating income margin of 10.9%. The sales teams are strategically positioned to cater to various customer segments, enhancing the company's ability to meet customer needs directly.

Distribution via third-party partners and retailers

In addition to direct sales, Helios Technologies leverages a network of third-party partners and retailers to distribute its products. This multi-channel distribution strategy enhances market reach. In the third quarter of 2024, net sales in the Americas decreased by $8.5 million, or 14.3%, compared to the prior year, primarily due to decreased demand in the agriculture sector. However, sales in the APAC region saw a remarkable increase of 79.1%, totaling $7.7 million, showcasing the effectiveness of the distribution strategy in different markets.

The following table summarizes net sales by geographic region for the third quarter of 2024:

Region	Net Sales (in millions)	Change ($)	Change (%)
Americas	$50.9	$(8.5)	(14.3%)
EMEA	$6.5	$0.8	14.0%
APAC	$7.7	$3.4	79.1%
Total	$65.1	$(4.3)	(6.2%)

Online platforms for marketing and customer outreach

Helios Technologies utilizes online platforms for marketing and customer outreach, enhancing its visibility and engagement with potential customers. The company's online strategies have contributed to its ability to generate interest in its products, reflected in the overall sales performance. For the first nine months of 2024, the company reported net sales of $208.9 million in the Electronics segment, with a gross profit of $68.0 million, achieving a gross profit margin of 32.6%.

Moreover, the operating income for the Electronics segment was reported at $24.2 million, equating to an operating income margin of 11.6%. The online outreach efforts are complemented by analytics and feedback mechanisms that allow for continuous improvement in customer engagement.

Helios Technologies, Inc. (HLIO) - Business Model: Customer Segments

Industrial Machinery Manufacturers

Helios Technologies serves a variety of industrial machinery manufacturers, providing hydraulic and electronic solutions tailored to enhance operational efficiency and performance. In the first nine months of 2024, net sales for the Hydraulics segment totaled $417.5 million, reflecting a decline of 3.4% compared to $432.1 million in the same period of 2023.

Within this segment, the company experienced a 6.5% decrease in sales in the Americas, amounting to $167.4 million, driven by reduced demand in agriculture, mobile, and industrial end markets. Despite this decline, Helios continues to innovate and cater to the needs of manufacturers in this space, focusing on enhancing their machinery's performance and reliability.

Aerospace and Automotive Industries

The aerospace and automotive sectors are critical customer segments for Helios Technologies, particularly for their electronics and hydraulic systems. In the Electronics segment, net sales for the first nine months of 2024 reached $208.9 million, slightly down from $210.1 million year-over-year. The company reported a significant increase in sales in the APAC region, which grew by 54.6%, totaling $20.1 million.

Despite overall sales declines in certain markets, Helios has maintained a strong foothold in the automotive sector, especially with the growing demand for advanced electronic systems that enhance vehicle performance and safety features. The company’s commitment to innovation in this field is underscored by its focus on developing state-of-the-art technologies that meet the stringent requirements of aerospace and automotive applications.

Health and Wellness Equipment Producers

In the health and wellness sector, Helios Technologies has seen a notable increase in demand, particularly in its Electronics segment, where sales for the health and wellness end market have grown significantly. This segment's resilience contrasts with declines in other markets, showcasing the company’s ability to adapt to changing consumer needs.

During the third quarter of 2024, Helios reported a gross profit of $19.6 million from the Electronics segment, reflecting a 5.4% increase from the previous year. The company’s focus on health and wellness aligns with broader market trends emphasizing the importance of advanced equipment for improving patient outcomes and operational efficiency in healthcare settings.

Customer Segment	Net Sales (2024)	Change (%)	Key Markets
Industrial Machinery Manufacturers	$417.5 million	-3.4%	Americas, EMEA, APAC
Aerospace and Automotive Industries	$208.9 million	-0.6%	Americas, EMEA, APAC
Health and Wellness Equipment Producers	Growth noted in the Electronics segment	N/A	Americas, EMEA, APAC

Helios Technologies, Inc. (HLIO) - Business Model: Cost Structure

Manufacturing and operational costs

The manufacturing and operational costs of Helios Technologies, Inc. include expenses associated with production, labor, and overhead. For the nine months ended September 28, 2024, the cost of sales amounted to $428.1 million, compared to $435.7 million for the same period in 2023, indicating a decrease of $7.6 million or 1.7% year-over-year.

Cost Item	Amount (in millions)	Change from 2023
Cost of Sales	$428.1	Decrease of $7.6 (1.7%)
Gross Profit	$198.3	Decrease of $8.2 (4.0%)
Gross Profit %	31.7%	Decrease of 0.5%

Research and development expenditures

Research and development (R&D) expenditures are crucial for product innovation and maintaining competitive advantage. For the nine months ended September 28, 2024, R&D expenses were included within the selling, engineering, and administrative expenses, which totaled $106.2 million, down from $113.8 million in the same period in 2023. This represents a decrease of $7.6 million or 6.7%.

Expense Category	Amount (in millions)	Change from 2023
Selling, Engineering, and Administrative Expenses	$106.2	Decrease of $7.6 (6.7%)

Sales and marketing expenses

Sales and marketing expenses are essential for driving revenue growth. In the third quarter of 2024, Helios Technologies reported sales and marketing expenses that contributed to a total operating income of $22.2 million, compared to $13.8 million in the same quarter of 2023, a significant increase of $8.4 million or 60.9%. The effective management of these expenses is critical as the company seeks to enhance its market position.

Expense Category	Amount (in millions)	Change from 2023
Operating Income	$22.2	Increase of $8.4 (60.9%)
Net Income	$11.4	Increase of $7.9 (225.7%)

Helios Technologies, Inc. (HLIO) - Business Model: Revenue Streams

Sales of hydraulic and electronic products

In 2024, Helios Technologies reported net sales of $626.4 million, a decrease of 2.5% from $642.2 million in 2023. The sales from the hydraulics segment accounted for $417.5 million, while the electronics segment contributed $208.9 million.

The following table summarizes the net sales by segment for the three and nine months ended September 28, 2024, compared to the same periods in 2023:

Segment	Three Months Ended	Nine Months Ended
Hydraulics	$129.4 million	$417.5 million
Electronics	$65.1 million	$208.9 million
Total	$194.5 million	$626.4 million

Service contracts for maintenance and support

Helios Technologies also generates revenue through service contracts, which include maintenance and support for their hydraulic and electronic products. While specific revenue figures for service contracts are not disclosed separately, the company emphasizes the importance of these contracts in sustaining customer relationships and generating recurring revenue. The overall gross profit margin for the year-to-date period is reported at 31.7%, reflecting the profitability of both product sales and service contracts.

Revenue from strategic partnerships and acquisitions

Helios Technologies has pursued strategic partnerships and acquisitions to enhance its revenue streams. For instance, during the first nine months of 2024, the company experienced organic sales declines of 3.2%, which were partially offset by acquisition-related sales totaling $5 million. The following table outlines the impact of acquisitions on sales growth:

Period	Organic Sales Change	Acquisition Sales Contribution
Nine Months Ended September 28, 2024	$(20.8) million	$5 million

Overall, Helios Technologies continues to leverage partnerships and acquisitions to drive sales and expand its market presence, contributing to its diverse revenue streams.

Updated on 16 Nov 2024

Resources:

1. Helios Technologies, Inc. (HLIO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Helios Technologies, Inc. (HLIO)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Helios Technologies, Inc. (HLIO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.