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SECOND QUARTER 2025 EARNINGS PRESENTATION AUGUST 4, 2025 SEAN BAGAN, PRESIDENT, CEO & CFO JEREMY EVANS, VP, CORPORATE CONTROLLER TANIA ALMOND, VP OF IR & CORPORATE COMMUNICATION
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SAFE HARBOR This presentation and oral statements made by management in connection herewith that are not historical facts are contains “f orward‐looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward‐looking statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied by such statements. They include statements regarding current expectations, estimates, forecasts, projections, our beliefs, and assumptions made by Helios Technologies, Inc. (“Helios,” the “Company,” "we," "us," or "our"), its directors or its officers about the Company and the industry in which it operates, and assumptions made by management, and include among other items, ( i) the Company’s strategies regarding growth, and improving margins, including its intention to develop new products and undertake acquisitions and divestitures; (ii) the effectiveness of creating the Centers of Excellence; (iii) our financial plans; (iv) trends affecting the Company’s financial condition or results of operations; (v) the Company’s ability to continue to control costs and to meet its liquidity and other financing needs; (vi) the Company’s ability to declare and pay dividends; (vii) the Company’s ability to respond to changes in customer demand domestically and internationally, including as a result of the cyclical nature of our business; and (viii) th e Company's ability to mitigate the impacts of changes in trade policy on our business. In addition, we may make other written or oral statements, which constitute forward-looking statements, from time to time. Words such as “may,” “expects,” “projects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words, and similar expressions are intended to identify such forward-looking statements. Similarly, statements that describe our future plans, objectives or goals also are forward-looking statements. These statements are not guarantees of future performance and are subject to a number of risks and uncertainties. Our actual results may differ materially from what is expressed or forecasted in such forward-looking statements, and undue reliance should not be placed on such statements. All forward -looking statements are made as of the date hereof, and we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Factors that could cause actual results to differ materially from what is expressed or forecasted in such forward‐looking sta tements include, but are not limited to, (i) the Company’s ability to respond to global economic trends and changes in customer demand domestically and internationally, including as a result of standardization and the cyclical nature of our business, which can adversely affect the demand for capital goods; (ii) supply chain disruption and the potential inability to procure goods; (iii) conditions in the capital markets, in cluding the interest rate environment and the continued availability of capital on terms acceptable to us, or at all; (iv) global and regional economic and political conditions, including trade policy, tariffs and other trade barriers, inflation, exchange rates, changes in the cost or availability of energy, transportation, the availability of other necessary supplies and services and recession; (v) changes in the competitive marketplace that could af fect the Company’s revenue and/or cost bases, such as increased competition, lack of qualified engineering, marketing, management or other personnel, and increased labor and raw materials costs; (vi) risks related to health epidemics, pandemics and similar outbreaks, which may among other things, adversely affect our supply chain, material costs, and work force and may have material adverse effects on our business, financial position, results of operations and/or cash flows; (vii) risks related to our international operations, including potential impacts from the ongoing geopolitical conflicts in Ukraine and the Middle East; (viii) risks relating to our recent and ongoing management transition; (ix) new product introductions, product sales mix and the geographic mix of sales nationally and internationally; and (x) stakeholders, including regulators, views regarding our environmental, social and governance goals and initiatives, and the impact of factors outside of our control on such goals and initiatives. Further information relating to additional factors th at could cause actual results to differ from those anticipated is included but not limited to information under the heading Item 1. “Business” and Item 1A. “Risk Factors” in the Company’s Form 10-K for the year ended December 28, 2024 filed with the Securities and Exchange Commission (SEC) on February 25, 2025 as well as any subsequent filings with the SEC. Helios has presented non-GAAP measures including adjusted operating income, adjusted operating margin, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, net debt-to-adjusted EBITDA, adjusted net income, and adjusted net income per diluted share and sales in constant currency. Helios believes that providing these sp ecific Non-GAAP figures are important for investors and other readers of Helios financial statements, as they are used as analytical indicators by Helios management to better understand operating performance. The determination of the amounts that are excluded from these Non-GAAP measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income recognized in a given period. You should not consider the inclusion of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. Please carefully review the Non -GAAP reconciliations to the most directly comparable GAAP measures and the related additional information provided throughout. Because these metrics are Non-GAAP measures and are thus susceptible to varying calculations, these figures, as presented, may not be directly comparable to other similarly titled measures used by other companies. This presentation also presents forward-looking statements regarding Non-GAAP measures, including adjusted EBITDA, adjusted EBITDA margin and adjusted net income per diluted share. The Company is unable to present a quantitative reconciliation of these forward-looking Non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort or expense. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company’s 2025 financial results. These Non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with quarter -end and year-end adjustments. Any variation between the Company’s actual results and preliminary financial data set forth above may be material. 2
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REFOCUSED ORGANIZATION TO BE CENTERED ON THE CUSTOMER & SHAREHOL DER VALUE CREATION Q2 2025: EXECUTIVE SUMMARY 3 (1) See Supplemental Information for definition of adjusted EBITDA margin, diluted Non-GAAP EPS and reconciliations from GAAP, as well as other disclaimers on Non-GAAP information. Q2 FINANCIAL RESULTS STRONGER THAN EXPECTED REFINED FOCUS IMPROVING OUR EXECUTION MOMENTUM IGNITED WITH CONTINUED DEMAND ACCELERATION Revenue, Adjusted EBITDA1 Margin, Diluted Non-GAAP EPS1, & Cash Flow exceeded Helios guidance/expectations Met or exceeded our quarterly outlook for 7 th consecutive quarter; Reduced Debt for 8th consecutive quarter; Executed on share repurchases Institutionalizing a go-to-market structure centered on the customer; Accelerating innovation, Portfolio optimization; Fortifying Board of Directors
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ACTIVELY MANAGING THE HELIOS PORTFOLIO DIVESTITURE ANNOUNCEMENT 4 Revenue Helios will sell Custom Fluidpower (CFP) to Questas Group Transaction value of ~$83M AUD in cash (~$54M USD equivalent) Originally purchased CFP in 2018 for $35M AUD (~$26 USD) Expect the transaction to close in the next 60 to 90 days Cash proceeds to be used primarily for debt reduction Questas is a leading hydraulics operator headquartered in Sydney Strategically aligned with CFP’s culture and distribution/service model Expected to contribute to margin rate expansion Reached exclusive long-term distribution agreement with Questas assuring Sun Hydraulics’ strategic position in the Australian market CFP 2024 full year Sales of $61 USD & Adj EBITDA of $8M USD SIGNED DEFINITIVE AGREEMENT TO SELL AUSTRALIAN HYDRAULIC SERVICES BUSINESS HIGHLIGHTS OF THE TRANSACTION
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RESULTS STRONGER THAN EXPECTED ON IMPROVING DEMAND TRENDS & POSITIVE FOR EIGN EXCHANGE Q2 2025: FINANCIAL HIGHLIGHTS 5 Revenue (1) Q2 2025 Outlook issued on May 6, 2025. (2) See Supplemental Information for definition of adjusted EBITDA margin, diluted Non-GAAP EPS and reconciliations from GAAP, as well as other disclaimers on Non-GAAP information. Note: YoY = year-over-year. TOTAL COMPANY FINANCIAL RESULTS ($ in millions except per share data) $212M Net Sales Down 3% YoY 18.6% Adjusted EBITDA Margin2 Down 150 bps YoY $0.59 Diluted Non-GAAP EPS2 Down 8% YoY $6M above high end of outlook1 10 bps above high end of outlook1 $0.05 above high end of outlook1
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MORE END MARKETS STARTING TO LEVEL OUT FROM THEIR DOWN CYCLES Q2 2025: NET SALES BY MARKET , SEGMENT & REGION MOBILE AND AGRICULTURE STARTING TO STABILIZE WITH EMEA SHOWING GROWTH 6 QUARTERLY TRENDS (YoY): Direction Market* Industrial Mobile Agriculture Recreational Health & Wellness Other Direction Region Americas EMEA APAC ($ in millions) 51% Americas 26% EMEA 23% APAC 66% Hydraulics 34% Electronics SALES BY SEGMENT SALES BY REGION $212 $212 $220 $212 Q2 24 Q2 25 YoY $806 $782 2024 TTM Q2 2025 ANNUAL * End market classifications based on estimates Note: YoY = year-over-year TTM = trailing twelve months
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GROSS MARGIN RATE FOLLOWING SALES VOLUME TRENDS WITH SEQUENTIAL STEP-UP Q2 2025: GROSS PROFIT & MARGIN SECOND QUARTER IN A ROW OF SEQUENTIAL IMPROVEMENT 7 • Q2 25 YoY: gross profit declined 4% while gross margin contracted 30 bps driven by lower volume, higher material costs and net tariff impacts partially offset by lower labor and overhead costs. • TTM: Compared with FY24, gross profit declined 4% while gross margin declined 40 bps as production efficiencies partially offset the impact of lower volume along with increased tariffs. Gross Profit $70.6 $60.5 $54.0 $59.9 $67.5 Gross Profit $261.7 $252.3 $241.9 ($ in millions) ($ in millions) 32.1% 31.1% 30.1% 30.6% 31.8% Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 QUARTER 31.3% 31.3% 30.9% 2023 2024 TTM Q2 2025 ANNUAL Note: YoY = year-over-year TTM = trailing twelve months
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VOLUME DRIVEN Y oY WEAKNESS, WHILE SEQUENTIAL QUARTERLY STEP-UP TIED TO INCREASED VOLUME Q2 2025: OPERATING INCOME & MARGIN CONTINUED REBOUND OF OPERATING MARGIN; +160 BASIS POINTS SEQUENTIALLY 8 11.8% 11.4% 7.4% 8.7% 10.3% 4.6% 5.2% 5.9% 4.7% 4.7% 16.4% 16.6% 13.3% 13.4% 15.0% Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 QUARTER 9.6% 10.2% 9.5% 6.0% 5.0% 5.1% 15.6% 15.2% 14.6% 2023 2024 TTM Q2 2025 ANNUAL Non-GAAP operating margin adjustments1 GAAP operating margin • Q2 25 YoY: operating income decreased 15% and margin declined 150 bps driven by the reduction in gross profit on lower volume and higher operating expenses. As a percentage of sales, SEA expenses were 17.6% compared with 16.7% in the prior-year period due to cost associated with the Electronics leadership change and HCEE restructuring. Non-GAAP adjusted operating margin contracted 140 bps. • TTM: Compared with FY24, operating income decreased 9% with margin decreasing 70 bps. Non- GAAP adjusted operating income declined 7% with margin contracting 60 bps. (1) See Supplemental Information for definition of Non-GAAP adjusted operating income, Non-GAAP adjusted operating margin and reconciliation from GAAP, as well as other disclaimers regarding Non-GAAP information. Note: YoY = year-over-year TTM = trailing twelve months Operating Income $26.0 $22.2 $13.3 $17.0 $21.9 Adj. Operating Income1 $36.0 $32.2 $23.8 $26.2 $31.8 Operating Income $79.9 $81.8 $74.4 Adj. Operating Income1 $130.7 $122.8 $114.1 ($ in millions) ($ in millions)
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PROTECTING MARGINS WHILE INVESTING IN INNOVATION & OPTIMIZING ST RUCTURE Q2 2025: NET INCOME | ADJUSTED EBITDA / MARGIN ADJUSTED EBITDA MARGIN POSITIONED FOR FURTHER EXPANSION 9 • YoY: net income down 16% and diluted GAAP EPS down $0.07, or 17% and diluted Non-GAAP EPS down $0.05, or 8%. • YoY: down 11% while margin contracted 150 bps; starting to show sequential leverage on higher volume. 20.1% 20.9% 17.4% 19.2% 17.3% 18.6% Q2 24 Q3 24 Q4 24 FY 24 Q1 25 Q2 25 $13.6 $11.4 $4.8 $7.3 $11.4 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Diluted GAAP EPS $0.41 $0.34 $0.14 $0.22 $0.34 Diluted Non-GAAP EPS1 $0.64 $0.59 $0.33 $0.44 $0.59 ($ in millions, except per share data) NET INCOME ADJUSTED EBITDA / MARGIN1 (1) See Supplemental Information for definition of adjusted EBITDA margin, diluted Non-GAAP EPS and reconciliations from GAAP, as well as other disclaimers on Non-GAAP information. Note: YoY = year-over-year. Adjusted EBITDA1 $44.2 $40.6 $31.2 $154.5 $33.8 $39.5
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INDUSTRIAL END MARKET STILL WEAK; AG & MOBILE SHOWING EARLY SIGNS OF STABILIZATION Q2 2025: HYDRAULICS SEGMENT OPERATING MARGIN EXPANDED 140 BASIS POINTS YoY 10 ~49% OEM Q2 SALES BY CHANNEL ~51% Distributor or Integrator $141 38% Americas Q2 SALES BY REGION $141 33% EMEA 29% APAC Note: YoY = year-over-year Sales: $140.9 3% Gross Profit: $46.5 4% Operating Income: $25.0 5% ($ in millions) YoY
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75% Americas Q2 SALES BY REGION 12% EMEA 13% APAC $72 MOBILE MARKET SHOWING THE MOST SEQUENTIAL IMPROVEMENT; RECREATIO NAL THE WEAKEST Q2 2025: ELECTRONICS SEGMENT IMPACTS FROM MATERIAL COSTS, MIX, AND TARIFFS; MOST END MARKETS STILL DOWN 11 Sales: $71.6 4% Gross Profit: $21.0 18% Operating Income: $5.9 43% ~74% OEM Q2 SALES BY CHANNEL $72~26% Distributor or Integrator ($ in millions) Note: YoY = year-over-year YoY
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GENERATED NEAR RECORD CASH FLOW FROM OPERATIONS IN THE QUARTER; HIGHEST SINCE 4Q19 Q2 2025: CASH FLOW 12 Revenue $27.2 $49.1 $76.2 $94.0 $86.3 $78.0 $52.3 $95.1 $101.6 2017 2018 2019 2020 2021 2022 2023 2024 TTM Q2 2025 86% 105% 126% 204% Adjusted Free Cash Flow Conversion (1) (2) ADJUSTED FREE CASH FLOW (1) 83% 79% 139% 244% • More efficient accounts payable management drives working capital improvement and efficiently managing inventory • CapEx of $5.4M, or 2.5% of sales in 2Q25; will accelerate in 2H • TTM 2Q25 adjusted FCF conversion(2) was 291% (1) Free cash flow, adjusted free cash flow, and free cash flow conversion are Non-GAAP financial measures; see Supplemental Information for a reconciliation to the most comparable GAAP measure. (2) Free cash flow conversion is a Non-GAAP financial measure and defined as free cash flow divided by net income.` Note: TTM – trailing twelve months. ($ in millions) Three Months Ended 6/28/25 6/29/24 Net Cash Provided by Operating Activities $37.0 $33.8 Capital Expenditures (CapEx) (5.4) (8.1) Free Cash Flow (FCF) (1) $31.6 $25.7 291% CONTINUED CASH GENERATION ON DISCIPLINED WORKING CAPITAL MANAGEMENT
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PRIORITIZE DEBT REPAYMENT TO PROVIDE FUTURE OPTIONALITY ON CAPIT AL DEPLOYMENT Q2 2025: DEBT, LIQUIDITY & CAPITAL ALLOCATION IMPROVED FINANCIAL FLEXIBILITY 13 4. Acquisitions 3. Returns to Shareholders 2. Organic Investments 1. Pay Down Debt Additional Details • Net debt / TTM adjusted EBITDA of 2.6x ending 2Q25 compared with 3.0x in year ago period • Credit facility debt maturity June 2029, with quarterly amortization payments on term loan • Near-term objective: continue to use cash to pay down debt • Paid dividends for 114 consecutive quarters, or >28 years • Supplementing returns to shareholders with share repurchase program; bought back 200,000 shares in 2Q25 Total Debt Liquidity DEBT & LIQUIDITY PROFILE CAPITAL ALLOCATION PRIORITIES $144 revolver / other $292 term loans $436 Total Debt $359 undrawn revolver $53 Cash $412 Liquidity ($ in millions) Note: TTM – trailing twelve months.
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CHINA & EUROPEAN UNION TARIFFS REPRESENT THE GREATEST IMPACT TO HELIOS CURRENT TARIFF IMPACT ASSESSMENT FOR 2H 2025 Estimated Total Direct Tariff Cost Impacts ~$8M 25% Tariff on U.S. Imports ~$0.5M (95% qualifies under USMCA) 55% Tariff on U.S. Imports ~$3.0M 10% Retaliatory Tariffs on China Imports ~$0.5M ESTIMATED DIRECT COST IMPACTS 15% Tariff on U.S. Imports ~$2.0M 10% - 35% Tariff on U.S. Imports ~$2M STEEL & ALUMINUM 50% Tariff on U.S. Imports ~$0.5M Hydraulics $5 Electronics $3 ~$8M ESTIMATED DIRECT COST, BY SEGMENT Potential for additional indirect impact from U.S. based suppliers passing along tariff charges CONSIDERATIONS OF TARIFF IMPACT ON SALES ~$7M in 2H25 export sales from U.S. to China subject to retaliatory tariffs; reduced from ~$20M by moving fulfillment to the APAC region Unknown downstream effects on our customer demand from: Global economic impact on GDP, PMI, etc. Supply chain disruption Consumer confidence and spending Inflationary cost pressures Interest rate movements Currency/commodity rate fluctuations 40% 60% $’s in millions BASED ON TARIFFS IN EFFECT AS OF AUGUST 1, 2025 14 European Union Mexico China Rest of World
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ACTIVELY EXPLORING & IMPLEMENTING VARIETY OF COUNTERMEASURES TO MITIGATE TARIFF EXPOSURE TARIFF RISK MITIGATION Local Manufacturing 4 Transfer manufacturing and assembly operations Advantaged capital position allows us to opportunistically play offense Play OffenseBonded Warehouse Leverage an in-bond warehouse for shipments destined outside the U.S. Find alternative suppliers for components Alternate Sourcing 2 3 5 Implement surcharges on impacted goods Price Increases 1 15
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FIRST -HALF STRONGER THAN ESTIMATED; MARKETS STABILIZING 2025 COMPANY ISSUED GUIDANCE 16 TOTAL NET SALES -4% to +2% $775M to $825M Relative to 2024 at $805.9M ADJUSTED EBITDA MARGIN (1) -120 bps to +80 bps 18.0% to 20.0% Relative to 2024 at 19.2% DILUTED NON-GAAP EPS (1) -5% to +15% $2.00 to $2.40 Relative to 2024 at $2.10 TOTAL NET SALES $208M to $215M Relative to Q3 2024 at $194.5M +7% to +10% Relative to Q2 2025 at $212.5M -2% to +1% ADJUSTED EBITDA MARGIN (1) 19.5% to 20.5% Relative to Q3 2024 at 20.9% -140 bps to -40 bps Relative to Q2 2025 at 18.6% +90 bps to +190 bps DILUTED NON-GAAP EPS (1) $0.60 to $0.68 Relative to Q3 2024 at $0.59 +2% to +15% Relative to Q2 2025 at $0.59 +2% to +15% 2025 FULL YEAR OUTLOOK Q3 2025 QUARTERLY OUTLOOK TOTAL NET SALES +1% to +3% $810M to $830M Relative to 2024 at $805.9M ADJUSTED EBITDA MARGIN (1) -70 bps to +30 bps 18.5% to 19.5% Relative to 2024 at 19.2% DILUTED NON-GAAP EPS (1) +10% to +19% $2.30 to $2.50 Relative to 2024 at $2.10 AS ORIGINALLY ISSUED ON 2/24/2025 ISSUED ON 8/4/2025 ISSUED ON AUGUST 4, 2025 (1) See Supplemental Information for definition of adjusted EBITDA margin, diluted Non-GAAP EPS and reconciliations from GAAP, as well as other disclaimers on Non-GAAP information
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MOVING BACK INTO Y oY GROWTH ACROSS BOTH SEGMENTS Q3 2025: SEGMENT OUTLOOK 17 HYDRAULICS ELECTRONICS Regional Outlook AMER EMEA APAC AMER EMEA APAC Positive Catalysts Commercial Food Service, Recreational Stable / Moderate Lift Industrial, Agriculture, Mobile Health & Wellness Recurring Revenue, Mobile Flat / No Signs Yet of Bounce Marine, Industrial Starting / In a Down Cycle Q2 2025 Sales Outlook $134 - $139M +3% to +8% vs. Q3 2024 $74 - $76M +14% to +16% vs. Q3 2024
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ACCELERATING CYCLE TIME TO BRING NEW INNOVATIONS TO MARKET INNOVATIONS INTRODUCED IN 2025 MULTI-SLIDE NO ROADSELECTRO-PROPORTIONAL/RELIEF VALVES 18 S35 & CAN KEYPAD HIGH CURRENT POWER DISTRIBUTION MODULE ACROSS BOTH SEGMENTS ATLAS CONNECT GATEWAY PUREZONE
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DELIVER PROFITABLE SALES GROWTH WHILE IMPROVING THE OVERALL FINA NCIAL PROFILE OF HELIOS 2025: FINANCIAL PRIORITIES Reduce Debt 4 Utilizing free cash flow conversion proceeds To scale and elevate to new heights! Leverage Strong Foundation Shorten Cash Conversion Cycle Through improved working capital management With higher volumes and disciplined investment and cost management Drive Operating Leverage 2 3 5 Executing on profitable sales growth plan Return to Growth 1 19
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BUILDING FROM A STRONG FOUNDATION TO BETTER LEVERAGE CAPACITY AN D CAPABILITIES 2025: KEY FOCUS AREAS 20 GO TO MARKET STRUCTURE Institutionalize the engine to track and drive sales funnel, cross-sell, and pipeline management ORGANIC GROWTH Protect and grow base business through capturing more wallet share of existing customers PROFIT IMPROVEMENT Implement ongoing cost and operational efficiencies through continuous improvement efforts PRODUCT LAUNCHES Maintain investment in innovation and accelerate launching of new, industry leading products TALENT DEVELOPMENT Ensure team members are in the right seats and fill key skill gaps for future career growth CAPITAL ALLOCATION Fold in new share repurchase program to existing allocation strategy maximizing ROIC
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CHEERS TO 55 YEARS EARLY PIONEERS OF COMPANY LEADERSHIP 21 Pictured: Co-Founder & Former CEO: Bob Koski & Former CEO: Clyde Nixon Pictured: Former CEO: Al Carlson SUN HYDRAULICS, THEN & NOW
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SUPPLEMENTAL INFORMATION
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FIRST-HALF STRONGER THAN ESTIMATED; MARKETS STABILIZING 2025 FULL YEAR OUTLOOK 23 Note: See Supplemental Information for full 2025 outlook line-item details. (1) Reflects a Non-GAAP financial measure; see supplemental slide for reconciliation and other important information regarding Helios’ use of Non-GAAP financial measures. (2) See Supplemental Information for definition of adjusted EBITDA margin and diluted Non-GAAP EPS, and reconciliation from GAAP and other disclaimers regarding Non-GAAP information. UPDATED OUTLOOK ASSUMPTIONS • First half stronger than originally estimated, driving updated Outlook upside • Second half softer comparables paired with improving order book expected to produce year- over-year growth • Electronics segment to outpace Hydraulics segment driven by Balboa’s core business recovery and recreational stabilization and growth • Manufacturing footprint cost efficiencies • Effective tax rate impacted by CFP divestiture and One Big Beautiful Bill Act (“OBBBA”) • Foreign exchange rates assumed at constant currency levels from ending 2Q25 levels • Current tariffs that are publicly stated to be in effect as of August 1, 2025 • Assumes CFP divestiture closes in 60-90 days KEY FINANCIAL METRICS 2024 ACTUAL 2025 ORIGINAL OUTLOOK 2025 UPDATED OUTLOOK Net Income $39.0 $46 - $53 $48 - $53 Adjusted EBITDA $154.5 $140 - $165 $150 - $162 Interest Expense $33.8 $27 - $29 $22 - $23 Effective Tax Rate 23% 22% - 24% 22% - 23% Depreciation $30.7 $32 - $33 $30 - $31 Amortization $33.1 $33 - $34 $34 - $35 CapEx % Net Sales 3.4% 3.25%-3.75% 3.25%-3.50% Diluted EPS $1.17 $1.19 - $1.59 $1.40 - $1.60 AS ORIGINALLY ISSUED ON 2/24/2025 ISSUED ON 8/4/2025
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SEGMENT DATA (Unaudited) ($ in millions) 24 June 28, 2025 June 29, 2024 June 28, 2025 Dec ember 28,2024 Net Sales: Hydraulics 140.9$ 145.7$ 516.4$ 537.2$ Electronics 71.6 74.2 265.6$ 268.7 Consolidated 212.5$ 219.9$ 782.0$ 805.9$ Gross profit and margin: Hydraulics 46.5$ 44.9$ 160.3$ 165.8$ 33.0% 30.8% 31.0% 30.9% Electronics 21.0 25.7 81.6$ 86.5 29.3% 34.6% 30.7% 32.2% Consolidated 67.5$ 70.6$ 241.9$ 252.3$ 31.8% 32.1% 30.9% 31.3% Operating income (loss) and margin: Hydraulics 25.0$ 23.9$ 83.1$ 86.4$ 17.7% 16.4% 16.1% 16.1% Electronics 5.9 10.3 26.1$ 29.6 8.2% 13.9% 9.8% 11.0% Corporate and other (9.0) (8.2) (34.9)$ (34.2) Consolidated 21.9$ 26.0$ 74.4$ 81.8$ 10.3% 11.8% 9.5% 10.2% For the Three Months Ended TTM For the Year Ended
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NET SALES BY GEOGRAPHIC REGION & SEGMENT (Unaudited) ($ in millions) 25 Q1 % Change y/y Q2 % Change y/y YTD 2025 % Change y/y Americas: Hydraulics 49.9$ (11%) 54.2$ (9%) 104.1$ (10%) Electronics 56.7 (2%) 53.7 (7%) 110.4 (5%) Consol. Americ as 106.6 (6%) 107.9 (8%) 214.5 (7%) % of total 55% 51% 53% EMEA: Hydraulics 37.9$ (17%) 46.1$ 8% 84.0$ (5%) Electronics 6.2 (5%) 8.5 (6%) 14.7 (5%) Consol. EMEA 44.1 (15%) 54.6 5% 98.7 (5%) % of total 23% 26% 24% APAC: Hydraulics 38.6$ (6%) 40.6$ (6%) 79.2$ (6%) Electronics 6.2 24% 9.4 27% 15.6 26% Consol. APAC 44.8 (3%) 50.0 (2%) 94.8 (2%) % of total 23% 23% 23% Total 195.5$ (8%) 212.5$ (3%) 408.0$ (6%) 2025 Q1 % Change y/y Q2 % Change y/y Q3 % Change y/y Q4 % Change y/y 2024 % Change y/y 55.8$ (4%) 59.5$ (2%) 52.1$ (6%) 51.7$ (14%) 219.1$ (7%) 58.1 5% 57.8$ (9%) 50.9$ (14%) 49.1$ 1% 215.9 (5%) 113.9 1% 117.3 (5%) 103.0 (11%) 100.8 (8%) 435.0 (6%) 54% 53% 53% 56% 54% 45.5$ (8%) 42.8$ (17%) 36.7$ (5%) 32.1$ (16%) 157.1$ (12%) 6.5 (3%) 9.0 29% 6.5 14% 4.7 (19%) 26.7 6% 52.0 (7%) 51.8 (11%) 43.2 (3%) 36.8 (16%) 183.8 (9%) 25% 24% 22% 21% 23% 41.1$ 2% 43.4$ 7% 40.6$ 8% 35.9$ 1% 161.0$ 5% 5.0 35% 7.4 48% 7.7 79% 6.0 18% 26.1 44% 46.1 5% 50.8 12% 48.3 16% 41.9 3% 187.1 9% 22% 23% 25% 23% 23% 212.0$ (1%) 219.9$ (3%) 194.5$ (3%) 179.5$ (7%) 805.9$ (4%) 2024
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June 28, 2025 Margin Marc h 29, 2025 Margin Dec ember 28, 2024 Margin September 28, 2024 Margin June 29, 2024 Margin GAAP operating inc ome 21.9$ 10.3% 17.0$ 8.7% 13.3$ 7.4% 22.2$ 11.4% 26.0$ 11.8% Acquisition-related amortization of intangible assets 8.3 3.9% 8.3 4.2% 7.9 4.4% 7.9 4.1% 7.9 3.6% Acquisition and financing-related expenses( A) 0.3 0.2% - 0.0% - 0.0% 0.1 0.1% 0.1 0.0% Restructuring charges( B ) 0.8 0.4% 0.3 0.2% 0.9 0.5% 1.2 0.6% 1.7 0.8% Officer transition costs 0.4 0.2% - 0.0% 0.5 0.3% 0.8 0.4% 0.3 0.1% Acquisition integration costs ( C ) - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% Other - 0.0% 0.6 0.3% 1.2 0.7% - 0.0% - 0.0% Non-GAAP adjusted operating inc ome 31.8$ 15.0% 26.2$ 13.4% 23.8$ 13.3% 32.2$ 16.6% 36.0$ 16.4% GAAP operating margin 10.3% 8.7% 7.4% 11.4% 11.8% Non-GAAP adjusted operating margin 15.0% 13.4% 13.3% 16.6% 16.4% Net sales 212.5$ 195.5$ 179.5$ 194.5$ 219.9$ For the Three Months Ended NON-GAAP ADJUSTED OPERATING INCOME & NON-GAAP ADJUSTED OPERATING MARGIN RECONCILIATION Non-GAAP Financial Measure: Adjusted operating margin is adjusted operating income divided by net sales. Adjusted operating income and adjusted operating margin are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Helios believes that providing Non-GAAP information such as adjusted operating income and adjusted operating margin are important for investors and other readers of Helios’ financial statements, as they are used as analytical indicators by Helios’ management to better understand operating performance. Because adjusted operating income and adjusted operating margin are Non-GAAP measures and are thus susceptible to varying calculations, adjusted operating income and adjusted operating income margin, as presented, may not be directly comparable to other similarly titled measures used by other companies. These Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for GAAP. Please carefully review the Non-GAAP reconciliations to the most directly comparable GAAP measures and other related additional information provided. (Unaudited) ($ in millions) 26 GAAP operating inc ome Acquisition-related amortization of intangible assets Acquisition and financing-related expenses( A) Restructuring charges( B ) Officer transition costs Acquisition integration costs ( C ) Other Non-GAAP adjusted operating inc ome GAAP operating margin Non-GAAP adjusted operating margin Net sales June 28, 2025 Margin Dec ember 28, 2024 Margin Dec ember 30, 2023 Margin 74.4$ 9.5% 81.8$ 10.2% 79.9$ 9.6% 32.3 4.1% 31.5 3.9% 32.9 3.9% 0.5 0.1% 0.7 0.1% 4.0 0.5% 3.3 0.4% 5.3 0.7% 12.1 1.4% 1.8 0.2% 1.9 0.2% 1.2 0.1% - 0.0% 0.3 0.0% 0.3 0.0% 1.8 0.2% 1.3 0.2% 0.3 0.0% 114.1$ 14.6% 122.8$ 15.2% 130.7$ 15.6% 9.5% 10.2% 9.6% 14.6% 15.2% 15.6% 781.9$ 805.9$ 835.6$ Twelve Months Ended Twelve Months EndedTTM
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NON-GAAP ADJUSTED NET INCOME & NON-GAAP ADJUSTED NET INCOME PER DILUTED SHARE RECONCILIATION Non-GAAP Financial Measure: Adjusted net income per diluted share is adjusted net income divided by diluted weighted average common shares outstanding. Adjusted net income and adjusted net income per diluted share are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Helios believes that providing Non-GAAP information such as adjusted net income and adjusted net income per diluted share is important for investors and other readers of Helios' financial statements, as they are used as analytical indicators by Helios’ management to better understand operating performance. Because adjusted net income and adjusted net income per diluted share are Non-GAAP measures and are thus susceptible to varying calculations, adjusted net income and adjusted net income per diluted share as presented, may not be directly comparable to other similarly titled measures used by other companies. (Unaudited) ($ in millions) D ecember 28, 2024 P er D iluted Share D ecember 30, 2023 P er D iluted Share D ecember 28, 2024 P er D iluted Share* D ecember 30, 2023 P er D iluted Share GA A P net inco me 4.8$ 0.14$ 3.3$ 0.10$ 39.0$ 1.17$ 37.5$ 1.14$ Amortization of intangible assets ( D ) 8.4 0.25 8.4 0.25 33.1 0.99 33.6 1 .02 Acquisition and financing- related expenses(A) - - 0.7 0.02 0.7 0.02 4.0 0.1 2 Restructuring charges ( B ) 0.9 0.03 3.0 0.09 5.3 0.1 6 1 2.1 0.37 Officer transition costs 0.5 0.01 0.3 0.01 1 .9 0.06 1 .2 0.04 Acquisition integration costs ( C ) - - 0.1 - 0.3 0.01 0.3 0.01 Change in fair value of contingent consideration 0.4 0.01 (0.9) (0.03) 0.4 0.01 (0.1 ) - Other (2.4) (0.07) 0.1 - (2.2) (0.07) (0.3) (0.01 ) Tax effect of above (1 .7) (0.05) (2.6) (0.08) (8.8) (0.26) (1 1 .2) (0.34) N o n-GA A P A djusted net inco me 10.9$ 0.33$ 12.4$ 0.38$ 69.7$ 2.10$ 77.1$ 2.34$ GAAP net income per diluted share 0.1 4$ 0.1 0$ 1 .1 7$ 1 .1 4$ Non-GAAP Adjusted net income per diluted share 0.33$ 0.38$ 2.10$ 2.34$ *General note: items may not sum or recalculate due to rounding F o r the Year EndedF o r the T hree M o nths Ended 27 June 28, 2025 Per Diluted Share Marc h 29, 2025 Per Diluted Share Dec ember 28, 2024 Per Diluted Share September 28, 2024 Per Diluted Share June 29, 2024 Per Diluted Share GAAP net inc ome 11.4$ 0.34$ 7.3$ 0.22$ 4.8$ 0.14$ 11.4$ 0.34$ 13.6$ 0.41$ Amortization of intangible assets( D) 8.8 0.26 8.7 0.26 8.4 0.25 8.4 0.25 8.2 0.25 Acquisition and financing-related expenses( A) 0.3 0.01 - - - - 0.1 - 0.1 - Restructuring charges( B ) 0.8 0.03 0.3 0.01 0.9 0.03 1.2 0.04 1.7 0.05 Officer transition costs 0.4 0.01 - - 0.5 0.01 0.8 0.02 0.3 0.01 Acquisition integration costs ( C ) - - - - - - - - - - Change in fair value of contingent consideration - - - - 0.4 0.01 - - - - Other 0.1 - 0.6 0.02 (2.4) (0.07) - - - - Tax effect of above (2.3) (0.07) (2.1) (0.06) (1.7) (0.05) (2.3) (0.07) (2.4) (0.07) Non-GAAP Adjusted net inc ome 19.5$ 0.59$ 14.8$ 0.44$ 10.9$ 0.33$ 19.7$ 0.59$ 21.5$ 0.64$ GAAP net income per diluted share 0.34$ 0.22$ 0.14$ 0.34$ 0.41$ Non-GAAP Adjusted net income per diluted share 0.59$ 0.44$ 0.33$ 0.59$ 0.64$ For the Three Months Ended
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NON-GAAP ADJUSTED EBITDA & NON-GAAP ADJUSTED EBITDA MARGIN RECONCILIATION (A) (A) Acquisition and financing-related expenses include costs associated with our M&A and divestiture activities. We believe these costs are not representative of the Company's operational performance and it is therefore more meaningful to analyze results with the costs excluded. For the three and six months ended June 28, 2025, $0.3 million and $0.3 million, respectively for the activities related to the plan to sell CFP. (B) (B) In January 2025, the Company began the early phases of restructuring the Helios Center of Engineering Excellence (“HCEE”). Management ceased operations at the San Antonio office in June 2025 and reassigned resources to the operations at our other major facilities across the business, and eliminate certain positions. We continue to add capabilities and activities to our Tijuana, Mexico facility to support our Electronics segment. Initial efforts have focused on circuit board assembly and wire harness production. Additionally, there were restructuring activities to better optimize our European regional operations. These activities included transferring equipment and operations between facilities. For the three months ended June 28, 2025, the charges included $0.8 million of severance. For the six months ended June 28, 2025, the charges included non-recurring labor costs of $0.1 million, $0.9 million of severance, and manufacturing relocation and other costs of $0.1 million. (C) (C) Acquisition integration activities include costs associated with integrating our recently acquired businesses, which can occur up to 18 months after acquisition date. We believe these costs are not representative of the Company's operational performance and it is therefore more meaningful to analyze results with the costs excluded. For the three and six months ended June 28, 2025, there were no acquisition integration costs. (D) (D) Amortization of intangible assets presented here includes $0.3 million and $0.7 million for capitalized software development costs included within cost of sales in the income statement for the three and six ended June 28, 2025, respectively. *General note: items may not sum or recalculate due to rounding (Unaudited) ($ in millions) 28 June 28, 2025 Margin Marc h 29, 2025 Margin Dec ember 28, 2024 Margin September 28, 2024 Margin June 29, 2024 Margin June 28, 2025 Margin Dec ember 28, 2024 Margin Net inc ome 11.4$ 5.3% 7.3$ 3.7% 4.8$ 2.7% 11.4$ 5.9% 13.6$ 6.2% 34.8$ 4.5% 39.0$ 4.8% Interest expense, net 7.0 3.3% 7.4 3.8% 8.1 4.5% 9.0 4.6% 8.5 3.9% 31.5 4.0% 33.8 4.2% Income tax provision 3.5 1.7% 2.2 1.1% 2.8 1.6% 1.9 1.0% 4.0 1.8% 10.5 1.3% 11.5 1.4% Depreciation and amortization 15.9 7.5% 16.0 8.2% 16.0 8.9% 16.1 8.3% 16.0 7.3% 64.0 8.2% 63.8 7.9% EBITDA 37.8 17.8% 32.9 16.8% 31.7 17.7% 38.4 19.7% 42.1 19.1% 140.9 18.0% 148.1 18.4% Acquisition and financing-related expenses( A) 0.3 0.2% - 0.0% - 0.0% 0.1 0.1% 0.1 0.0% 0.5 0.1% 0.7 0.1% Restructuring charges( B ) 0.8 0.4% 0.3 0.2% 0.9 0.5% 1.2 0.6% 1.7 0.8% 3.3 0.4% 5.3 0.7% Officer transition costs 0.4 0.2% - 0.0% 0.5 0.3% 0.8 0.4% 0.3 0.1% 1.8 0.2% 1.9 0.2% Acquisition integration costs ( C ) - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% - 0.0% 0.3 0.0% Change in fair value of contingent consideration - 0.0% - 0.0% 0.4 0.2% - 0.0% - 0.0% 0.4 0.0% 0.4 0.0% Other 0.1 0.0% 0.6 0.3% (2.4) (1.3%) 0.1 0.1% - 0.0% (1.8) (0.2%) (2.2) (0.3%) Adjusted EBITDA 39.5$ 18.6% 33.8$ 17.3% 31.2$ 17.4% 40.6$ 20.9% 44.2$ 20.1% 145.1$ 18.6% 154.5$ 19.2% GAAP net income margin 5.3% 3.7% 2.7% 5.9% 6.2% 4.5% 4.8% EBITDA margin 17.8% 16.8% 17.7% 19.7% 19.1% 18.0% 18.4% Adjusted EBITDA margin 18.6% 17.3% 17.4% 20.9% 20.1% 18.6% 19.2% Net sales 212.5$ 195.5$ 179.5$ 194.5$ 219.9$ 781.9$ 805.9$ For the Three Months Ended TTM Twelve Months Ended
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NON-GAAP ADJUSTED FREE CASH FLOW RECONCILIATION Non-GAAP Financial Measure: Adjusted net cash provided by operating activities is net cash provided by operating activities less contingent consideration payment in excess of acquisition date fair value. Free cash flow is net cash provided by operating activities less capital expenditures. Adjusted free cash flow is adjusted net cash provided by operating activities less capital expenditures. Free cash flow conversion is a non-GAAP financial measure and defined as free cash flow divided by net income. Each of these measures has not been determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Helios believes that providing this non-GAAP information is important for investors and other readers of Helios‘ financial statements, as they are us ed as analytical indicators by Helios‘ management to better understand our liquidity. Because these are non-GAAP measures, they are susceptible to varying calculations, and as presented, may not be directly comparable to o ther similarly titled measures used by other companies. These Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for GAAP. Please carefully review the Non-GAAP reconciliations to the most directly comparable GAAP measures and other related additional information provided. (Unaudited) ($ in millions) 29 TTM December 30, 2017 December 29, 2018 December 28, 2019 January 2, 2021 January 1, 2022 December 31, 2022 December 30, 2023 December 28, 2024 June 28, 2025 Net cash provided by operating activities 49.4$ 77.5$ 90.5$ 108.6$ 113.1$ 109.9 83.9 122.1 126.5 Contingent consideration payment in excess of acquisition date fair value - - 10.7 - - - 2.7 - - Adjusted net cash provided by operating activities 49.4 77.5 101.2 108.6 113.1 109.9 86.6 122.1 126.5 Capital expenditures 22.2 28.4 25.0 14.6 26.8 31.9 34.3 27.0 24.9 Adjusted Free cash flow 27.2$ 49.1$ 76.2$ 94.0$ 86.3$ 78.0 52.3 95.1 101.6 Net income 31.6 46.7 60.3 14.2 104.6 98.4 37.5 39.0 34.9 Goodwill impairment - - - 31.9 - - - - - Net income, less goodwill impairment 31.6$ 46.7$ 60.3$ 46.1$ 104.6$ 98.4 37.5 39.0 34.9 Free cash flow conversion 86% 105% 126% 204% 83% 79% 139% 244% 291% For the Year Ended
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NON-GAAP NET SALES GROWTH RECONCILIATION Non-GAAP Financial Measure: Net sales in constant currency is net sales adjusted for the impact of foreign currency translation. The impact from foreign currency translation is calculated by translating current period activity at average prior period exchange rates. Net sales in constant currency is not a measure determined in accordance with generally accepted accounting p rinciples in the United States, commonly known as GAAP. Nevertheless, Helios believes that providing Non-GAAP information such as net sales in constant currency is important for investors and other readers of Helios’ fi nancial statements, as they are used as analytical indicators by Helios’ management to better understand operating performance. Because net sales in constant currency is Non-GAAP measures and are thus susceptible to varying calculations, net sales in constant currency, as presented, may not be directly comparable to other similarly titled measures used by other companies. These Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for GAAP. Please carefully review the Non-GAAP reconciliations to the most directly comparable GAAP measures and othe r related additional information provided. (Unaudited) ($ in millions) 30 (E) The impact from foreign currency translation is calculated by translating current period activity at average prior period exchange rates. Hydraulic s Elec tronic s Consolidated Q2 2025 Net Sales 140.9$ 71.6$ 212.5$ Impact of foreign currency translation( E) (1.5) - (1.5) O rganic sales in c onstant c urrenc y 139.4$ 71.6$ 211.0$ Q2 2024 Net Sales 145.7$ 74.2$ 219.9$ Net sales growth -3% -4% -3% Net sales growth in c onstant c urrenc y -4% -4% -4% O rganic net sales growth in c onstant c urrenc y -4% -4% -4% For the Three Months Ended
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NET DEBT TO NON-GAAP ADJUSTED EBITDA RECONCILIATION Non-GAAP Financial Measure and Non-GAAP Forward-looking Financial Measures: Adjusted operating income, adjusted operating margin, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, net debt-to-adjusted EBITDA, adjusted net income, adjusted net income per diluted share and sales in constant currency are not measures determined in accordance with generally accepted accounting principles in the United State s, commonly known as GAAP. Nevertheless, Helios believes that providing these specific Non- GAAP figures are important for investors and other readers of Helios financial statements, as they are used as analytical ind icators by Helios management to better understand operating performance. These Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for GAAP. Please carefully review the attached Non-GAAP reconciliations to the most directly comparable GAAP measures and the related additional information provided throughout. Because these metrics are Non-GAAP measures and are thus susceptible to varying calculations, these figures, as presented, may not be directly comparable to other similarly titled measures used by other companies. The Company does not provide a reconciliation of forward-looking Non-GAAP financial measures, such as adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted share disclosed above in our 2025 Outlook, to their comparable GAAP financial measures because it could not do so without unreasonable effort due to the unavailability of the information needed to calculate reconciling items and due to the variabi lity, complexity and limited visibility of the adjusting items that would be excluded from the Non-GAAP financial measures in future periods. (Unaudited) ($ in millions) 31 As of June 28, 2025 Current portion of long-term non-revolving debt, net 24.5 Revolving lines of credit 144.3 Long-term non-revolving debt, net 267.4 Total debt 436.2 Less: Cash and cash equivalents 53.0 Net debt 383.2 TTM adjusted EBITDA 145.1 Ratio of net debt to TTM adjusted EBITDA 2.6
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H E L I O S T EC H N O L O G IE S . C O M 7 4 5 6 1 6 t h S t r e e t E a s t S a r a s o t a , F L 3 4 2 4 3 9 4 1 . 3 6 2 . 1 2 0 0