Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on the go-to-market strategy and whether it focuses more on one segment than another? A: Sean Bagan, President, CEO, and CFO, explained that the strategy is broad-based across the company. Helios aims to leverage its strong product quality and engineering capabilities to drive a sales-driven culture. The focus is on identifying markets where they can win with existing products and enhancing cross-selling opportunities across segments.
Q: How significant is the partnership with Alto-Shaam for new opportunities in the commercial food service market? A: Sean Bagan highlighted the excitement around the partnership, noting that it represents a software opportunity that could lead to future hardware sales. The Cygnus Reach platform is expected to transform backend support in the commercial food service sector.
Q: What is the outlook for free cash flow in 2025, given the strong performance in 2024? A: Sean Bagan noted that while 2024 was a record year for cash flow, the focus remains on financial priorities like inventory reduction. Jeremy Evans added that there is room to further reduce inventory and manage capital expenditures effectively.
Q: Can you provide more color on the seasonality and expectations for the second half of 2025? A: Sean Bagan mentioned that while historical trends suggest seasonality, the more impactful factors are end-market performances. The expectation for a stronger second half is based on current order trends, OEM forecasts, and macroeconomic indicators.
Q: How will potential tariffs impact the electronics segment, particularly with production in Mexico? A: Sean Bagan stated that while they are evaluating options, moving production back to Oklahoma could increase costs. The strategy will depend on final tariff rulings, and they are prepared to adjust their supply chain and production footprint accordingly.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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