{"url_path":"/sec/hlio/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-03-03","source_url":"https://www.sec.gov/Archives/edgar/data/1024795/0001193125-26-087747-index.html","accession_number":"0001193125-26-087747","cik":"0001024795","ticker":"HLIO","issuer_name":"HELIOS TECHNOLOGIES, INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1024795/0001193125-26-087747-index.html","primary_entity_key":"0001024795","primary_entity_name":"HELIOS TECHNOLOGIES, INC."},"word_count":18623,"has_tables":true,"body_markdown":"ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA\n\n \n\n \n\nPage\n\nIndex to financial statements:\n\n \n\n \n\n \n\n \n\n \n\n[Reports of Independent Registered Public Accounting Firm (PCAOB ID Number 248)](#report_of_independent_public_acct_firm)\n\n \n\n54\n\n \n\n \n\n \n\n[Consolidated Balance Sheets as of January 3, 2026 and December 28, 2024](#consolidated_balance)\n\n \n\n56\n\n \n\n \n\n \n\n[Consolidated Statements of Operations for the Years Ended January 3, 2026, December 28, 2024 and December 30, 2023](#consolidated_statements_operations)\n\n \n\n57\n\n \n\n \n\n \n\n[Consolidated Statements of Comprehensive Income for the Years Ended January 3, 2026, December 28, 2024 and December 30, 2023](#consolidated_statements_comprehensive_in)\n\n \n\n58\n\n \n\n \n\n \n\n[Consolidated Statements of Shareholders’ Equity for the Years Ended January 3, 2026, December 28, 2024 and December 30, 2023](#consolidated_statement_shareholders_equi)\n\n \n\n59\n\n \n\n \n\n \n\n[Consolidated Statements of Cash Flows for the Years Ended January 3, 2026, December 28, 2024 and December 30, 2023](#consolidated_statements_cash_flows)\n\n \n\n60\n\n \n\n \n\n \n\n[Notes to the Consolidated Financial Statements](#notes_to_consolidated_financial)\n\n \n\n62\n\n \n\n53\n\n \n\nReport of Independent Registered Public Accounting Firm\n\nBoard of Directors and Shareholders\n\nHelios Technologies, Inc.\n\nOpinion on the financial statements\n\nWe have audited the accompanying consolidated balance sheets of Helios Technologies, Inc. (a Florida corporation) and subsidiaries (the “Company”) as of January 3, 2026 and December 28, 2024, the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for each of the years ended January 3, 2026, December 28, 2024, and December 30, 2023 and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of January 3, 2026 and December 28, 2024, and the results of its operations and its cash flows for each of the years ended January 3, 2026, December 28, 2024, and December 30, 2023 in conformity with accounting principles generally accepted in the United States of America.\n\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of January 3, 2026, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated March 3, 2026 expressed an unqualified opinion.\n\nBasis for opinion\n\nThese consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.\n\nCritical audit matters\n\nCritical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.\n\n \n\n/s/ GRANT THORNTON LLP\n\nWe have served as the Company’s auditor since 2016.\n\nTampa, Florida\nMarch 3, 2026\n\n54\n\n \n\nReport of Independent Registered Public Accounting Firm\n\nBoard of Directors and Shareholders\n\nHelios Technologies, Inc.\n\nOpinion on internal control over financial reporting\n\nWe have audited the internal control over financial reporting of Helios Technologies, Inc. (a Florida corporation) and subsidiaries (the “Company”) as of January 3, 2026, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of January 3, 2026, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.\n\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of and for the year ended January 3, 2026, and our report dated March 3, 2026 expressed an unqualified opinion on those financial statements.\n\nBasis for opinion\n\nThe Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.\n\n## Definition and limitations of internal control over financial reporting\n\nA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.\n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.\n\n \n\n/s/ GRANT THORNTON LLP\n\nTampa, Florida\n\nMarch 3, 2026\n\n55\n\n \n\nHelios Technologies, Inc.\n\nConsolidated Balance Sheets\n\n(in millions, except per share data)\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\nAssets\n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\nCash and cash equivalents\n\n \n\n$\n\n73.0\n\n \n\n \n\n$\n\n44.1\n\n \n\nAccounts receivable, net of allowance for credit losses of\n   $1.4 and $2.4\n\n \n\n \n\n116.0\n\n \n\n \n\n \n\n104.6\n\n \n\nInventories, net\n\n \n\n \n\n188.6\n\n \n\n \n\n \n\n190.1\n\n \n\nIncome taxes receivable\n\n \n\n \n\n15.4\n\n \n\n \n\n \n\n15.1\n\n \n\nOther current assets\n\n \n\n \n\n21.9\n\n \n\n \n\n \n\n30.3\n\n \n\nTotal current assets\n\n \n\n \n\n414.9\n\n \n\n \n\n \n\n384.2\n\n \n\nProperty, plant and equipment, net\n\n \n\n \n\n206.6\n\n \n\n \n\n \n\n216.4\n\n \n\nDeferred income taxes\n\n \n\n \n\n1.9\n\n \n\n \n\n \n\n2.1\n\n \n\nGoodwill\n\n \n\n \n\n498.1\n\n \n\n \n\n \n\n498.9\n\n \n\nOther intangible assets, net\n\n \n\n \n\n369.9\n\n \n\n \n\n \n\n384.0\n\n \n\nOther assets\n\n \n\n \n\n23.1\n\n \n\n \n\n \n\n19.8\n\n \n\nTotal assets\n\n \n\n$\n\n1,514.5\n\n \n\n \n\n$\n\n1,505.4\n\n \n\nLiabilities and shareholders' equity\n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts payable\n\n \n\n$\n\n75.6\n\n \n\n \n\n$\n\n56.7\n\n \n\nAccrued compensation and benefits\n\n \n\n \n\n23.3\n\n \n\n \n\n \n\n24.6\n\n \n\nOther accrued expenses and current liabilities\n\n \n\n \n\n23.0\n\n \n\n \n\n \n\n25.8\n\n \n\nCurrent portion of long-term non-revolving debt, net\n\n \n\n \n\n5.4\n\n \n\n \n\n \n\n16.0\n\n \n\nDividends payable\n\n \n\n \n\n3.0\n\n \n\n \n\n \n\n3.0\n\n \n\nIncome taxes payable\n\n \n\n \n\n12.9\n\n \n\n \n\n \n\n12.5\n\n \n\nTotal current liabilities\n\n \n\n \n\n143.2\n\n \n\n \n\n \n\n138.6\n\n \n\nRevolving lines of credit\n\n \n\n \n\n105.5\n\n \n\n \n\n \n\n147.3\n\n \n\nLong-term non-revolving debt, net\n\n \n\n \n\n256.2\n\n \n\n \n\n \n\n283.2\n\n \n\nDeferred income taxes\n\n \n\n \n\n52.4\n\n \n\n \n\n \n\n41.1\n\n \n\nOther noncurrent liabilities\n\n \n\n \n\n25.7\n\n \n\n \n\n \n\n30.8\n\n \n\nTotal liabilities\n\n \n\n \n\n583.0\n\n \n\n \n\n \n\n641.0\n\n \n\nCommitments and contingencies (Note 18)\n\n \n\n \n\n \n\n \n\n \n\n \n\nShareholders' equity:\n\n \n\n \n\n \n\n \n\n \n\n \n\nPreferred stock, par value $0.001, 2.0 shares authorized,\n   no shares issued or outstanding\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nCommon stock, par value $0.001, 100.0 shares authorized, 33.4 and 33.3 shares issued; 33.1 and 33.3 outstanding at January 3, 2026 and December 28, 2024, respectively\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nCapital in excess of par value\n\n \n\n \n\n442.9\n\n \n\n \n\n \n\n437.4\n\n \n\nRetained earnings\n\n \n\n \n\n539.1\n\n \n\n \n\n \n\n502.6\n\n \n\nAccumulated other comprehensive loss\n\n \n\n \n\n(36.9\n\n)\n\n \n\n \n\n(75.6\n\n)\n\nTreasury stock, at cost, 0.3 and 0 shares, respectively\n\n \n\n \n\n(13.6\n\n)\n\n \n\n \n\n—\n\n \n\nTotal shareholders' equity\n\n \n\n \n\n931.5\n\n \n\n \n\n \n\n864.4\n\n \n\nTotal liabilities and shareholders' equity\n\n \n\n$\n\n1,514.5\n\n \n\n \n\n$\n\n1,505.4\n\n \n\n \n\nThe accompanying Notes to the Consolidated Financial Statements are an integral part of these financial statements.\n\n56\n\n \n\nHelios Technologies, Inc.\n\nConsolidated Statements of Operations\n\n(in millions, except per share data)\n\n \n\n \n\nFor the year ended\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\nDecember 30, 2023\n\n \n\nNet sales\n\n \n\n$\n\n839.0\n\n \n\n \n\n$\n\n805.9\n\n \n\n \n\n$\n\n835.6\n\n \n\nCost of sales\n\n \n\n \n\n567.8\n\n \n\n \n\n \n\n553.6\n\n \n\n \n\n \n\n573.9\n\n \n\nGross profit\n\n \n\n \n\n271.2\n\n \n\n \n\n \n\n252.3\n\n \n\n \n\n \n\n261.7\n\n \n\nSelling, engineering and administrative expenses\n\n \n\n \n\n147.6\n\n \n\n \n\n \n\n139.0\n\n \n\n \n\n \n\n148.9\n\n \n\nAmortization of intangible assets\n\n \n\n \n\n31.7\n\n \n\n \n\n \n\n31.5\n\n \n\n \n\n \n\n32.9\n\n \n\nGoodwill impairment\n\n \n\n \n\n25.9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nOperating income\n\n \n\n \n\n66.0\n\n \n\n \n\n \n\n81.8\n\n \n\n \n\n \n\n79.9\n\n \n\nInterest expense, net\n\n \n\n \n\n21.9\n\n \n\n \n\n \n\n33.8\n\n \n\n \n\n \n\n31.2\n\n \n\nForeign currency transaction loss, net\n\n \n\n \n\n1.3\n\n \n\n \n\n \n\n1.3\n\n \n\n \n\n \n\n0.6\n\n \n\nOther non-operating (income), net\n\n \n\n \n\n(19.6\n\n)\n\n \n\n \n\n(3.8\n\n)\n\n \n\n \n\n(1.1\n\n)\n\nIncome before income taxes\n\n \n\n \n\n62.4\n\n \n\n \n\n \n\n50.5\n\n \n\n \n\n \n\n49.2\n\n \n\nIncome tax provision\n\n \n\n \n\n14.0\n\n \n\n \n\n \n\n11.5\n\n \n\n \n\n \n\n11.7\n\n \n\nNet income\n\n \n\n$\n\n48.4\n\n \n\n \n\n$\n\n39.0\n\n \n\n \n\n$\n\n37.5\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income per share:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBasic\n\n \n\n$\n\n1.46\n\n \n\n \n\n$\n\n1.17\n\n \n\n \n\n$\n\n1.14\n\n \n\nDiluted\n\n \n\n$\n\n1.45\n\n \n\n \n\n$\n\n1.17\n\n \n\n \n\n$\n\n1.14\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted average shares outstanding:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBasic\n\n \n\n \n\n33.2\n\n \n\n \n\n \n\n33.2\n\n \n\n \n\n \n\n32.9\n\n \n\nDiluted\n\n \n\n \n\n33.3\n\n \n\n \n\n \n\n33.3\n\n \n\n \n\n \n\n33.0\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDividends declared per share\n\n \n\n$\n\n0.36\n\n \n\n \n\n$\n\n0.36\n\n \n\n \n\n$\n\n0.36\n\n \n\n \n\nThe accompanying Notes to the Consolidated Financial Statements are an integral part of these financial statements.\n\n57\n\n \n\nHelios Technologies, Inc.\n\nConsolidated Statements of Comprehensive Income\n\n(in millions)\n\n \n\n \n\nFor the year ended\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\nDecember 30, 2023\n\n \n\nNet income\n\n \n\n$\n\n48.4\n\n \n\n \n\n$\n\n39.0\n\n \n\n \n\n$\n\n37.5\n\n \n\nOther comprehensive (loss) income\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nForeign currency translation adjustments, net of tax\n\n \n\n \n\n42.7\n\n \n\n \n\n \n\n(20.6\n\n)\n\n \n\n \n\n7.6\n\n \n\nRealized (gain) on interest rate swaps, net of tax\n\n \n\n \n\n(4.0\n\n)\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nUnrealized gain (loss) on interest rate swaps, net of tax\n\n \n\n$\n\n—\n\n \n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n(3.6\n\n)\n\nTotal other comprehensive income (loss)\n\n \n\n \n\n38.7\n\n \n\n \n\n \n\n(20.2\n\n)\n\n \n\n \n\n4.0\n\n \n\nComprehensive income\n\n \n\n$\n\n87.1\n\n \n\n \n\n$\n\n18.8\n\n \n\n \n\n$\n\n41.5\n\n \n\n \n\nThe accompanying Notes to the Consolidated Financial Statements are an integral part of these financial statements.\n\n58\n\n \n\nHelios Technologies, Inc.\n\nConsolidated Statements of Shareholders’ Equity\n\n(in millions)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccumulated\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCapital in\n\n \n\n \n\n \n\n \n\n \n\nother\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPreferred\n\n \n\n \n\nPreferred\n\n \n\n \n\nCommon\n\n \n\n \n\nCommon\n\n \n\n \n\nexcess of\n\n \n\n \n\nRetained\n\n \n\n \n\ncomprehensive\n\n \n\n \n\nTreasury\n\n \n\n \n\nTreasury\n\n \n\n \n\n \n\n \n\n \n\n \n\nshares\n\n \n\n \n\nstock\n\n \n\n \n\nshares\n\n \n\n \n\nstock\n\n \n\n \n\npar value\n\n \n\n \n\nearnings\n\n \n\n \n\nloss\n\n \n\n \n\nShares\n\n \n\n \n\nStock\n\n \n\n \n\nTotal\n\n \n\nBalance at December 31, 2022\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n \n\n32.6\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n404.3\n\n \n\n \n\n$\n\n450.0\n\n \n\n \n\n$\n\n(59.4\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n794.9\n\n \n\nShares issued, restricted stock\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n—\n\n \n\nShares issued, ESPP\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n2.0\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n2.0\n\n \n\nShares issued, acquisitions\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n \n\n \n\n \n\n18.7\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n18.7\n\n \n\nStock-based compensation\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n11.6\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n11.6\n\n \n\nCancellation of shares for payment\n   of employee tax withholding\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(2.2\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(2.2\n\n)\n\nDividends declared\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(11.9\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(11.9\n\n)\n\nNet income\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n37.5\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n37.5\n\n \n\nOther comprehensive income\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n4.0\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n4.0\n\n \n\nBalance at December 30, 2023\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n \n\n33.1\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n434.4\n\n \n\n \n\n$\n\n475.6\n\n \n\n \n\n$\n\n(55.4\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n854.6\n\n \n\nShares issued, restricted stock\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n0.3\n\n \n\nShares issued, ESPP\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n1.9\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n1.9\n\n \n\nStock-based compensation\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n3.4\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n3.4\n\n \n\nCancellation of shares for payment\n   of employee tax withholding\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(2.6\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(2.6\n\n)\n\nDividends declared\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(12.0\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(12.0\n\n)\n\nNet income\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n39.0\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n39.0\n\n \n\nOther comprehensive loss\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(20.2\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(20.2\n\n)\n\nBalance at December 28, 2024\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n \n\n33.3\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n437.4\n\n \n\n \n\n$\n\n502.6\n\n \n\n \n\n$\n\n(75.6\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n864.4\n\n \n\nShares issued, restricted stock\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n—\n\n \n\nShares issued, ESPP\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n1.8\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n1.8\n\n \n\nStock-based compensation\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n5.1\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n5.1\n\n \n\nCancellation of shares for payment\n   of employee tax withholding\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(1.4\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(1.4\n\n)\n\nShares repurchased\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n(13.6\n\n)\n\n \n\n \n\n(13.6\n\n)\n\nDividends declared\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(11.9\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(11.9\n\n)\n\nNet income\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n48.4\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n48.4\n\n \n\nOther comprehensive income\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n38.7\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n38.7\n\n \n\nBalance at January 3, 2026\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n \n\n33.4\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n442.9\n\n \n\n \n\n$\n\n539.1\n\n \n\n \n\n$\n\n(36.9\n\n)\n\n \n\n \n\n0.3\n\n \n\n \n\n$\n\n(13.6\n\n)\n\n \n\n$\n\n931.5\n\n \n\n \n\nThe accompanying Notes to the Consolidated Financial Statements are an integral part of these financial statements.\n\n59\n\n \n\nHelios Technologies, Inc.\n\nConsolidated Statements of Cash Flows\n\n(in millions)\n\n \n\n \n\n \n\nFor the year ended\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\nDecember 30, 2023\n\n \n\nCash flows from operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n$\n\n48.4\n\n \n\n \n\n$\n\n39.0\n\n \n\n \n\n$\n\n37.5\n\n \n\nAdjustments to reconcile net income to net cash provided by operating\n   activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation and amortization\n\n \n\n \n\n63.0\n\n \n\n \n\n \n\n63.8\n\n \n\n \n\n \n\n63.8\n\n \n\n(Gain) on sale of business\n\n \n\n \n\n(18.8\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nGoodwill impairment\n\n \n\n \n\n25.9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nStock-based compensation expense\n\n \n\n \n\n5.1\n\n \n\n \n\n \n\n3.4\n\n \n\n \n\n \n\n11.6\n\n \n\nAmortization of debt issuance costs\n\n \n\n \n\n0.7\n\n \n\n \n\n \n\n1.1\n\n \n\n \n\n \n\n0.6\n\n \n\nBenefit for deferred income taxes\n\n \n\n \n\n(1.1\n\n)\n\n \n\n \n\n(8.3\n\n)\n\n \n\n \n\n(7.9\n\n)\n\nForward contract losses, net\n\n \n\n \n\n0.6\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.3\n\n \n\nOther, net\n\n \n\n \n\n(5.3\n\n)\n\n \n\n \n\n3.2\n\n \n\n \n\n \n\n—\n\n \n\n(Increase) decrease in, net of acquisitions:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts receivable\n\n \n\n \n\n(16.5\n\n)\n\n \n\n \n\n7.3\n\n \n\n \n\n \n\n16.3\n\n \n\nInventories\n\n \n\n \n\n(2.7\n\n)\n\n \n\n \n\n19.4\n\n \n\n \n\n \n\n(17.9\n\n)\n\nIncome taxes receivable\n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n(3.8\n\n)\n\n \n\n \n\n0.3\n\n \n\nOther current assets\n\n \n\n \n\n4.2\n\n \n\n \n\n \n\n(8.1\n\n)\n\n \n\n \n\n(5.5\n\n)\n\nOther assets\n\n \n\n \n\n4.7\n\n \n\n \n\n \n\n5.1\n\n \n\n \n\n \n\n(3.8\n\n)\n\nIncrease (decrease) in, net of acquisitions:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts payable\n\n \n\n \n\n22.0\n\n \n\n \n\n \n\n(11.8\n\n)\n\n \n\n \n\n(5.2\n\n)\n\nAccrued expenses and other liabilities\n\n \n\n \n\n2.1\n\n \n\n \n\n \n\n5.7\n\n \n\n \n\n \n\n(5.8\n\n)\n\nIncome taxes payable\n\n \n\n \n\n(0.7\n\n)\n\n \n\n \n\n10.7\n\n \n\n \n\n \n\n(1.6\n\n)\n\nOther noncurrent liabilities\n\n \n\n \n\n(4.6\n\n)\n\n \n\n \n\n(4.6\n\n)\n\n \n\n \n\n3.9\n\n \n\nContingent consideration payments in excess of acquisition date fair value\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(2.7\n\n)\n\nNet cash provided by operating activities\n\n \n\n \n\n127.3\n\n \n\n \n\n \n\n122.1\n\n \n\n \n\n \n\n83.9\n\n \n\nCash flows from investing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBusiness acquisitions, net of cash acquired\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(114.2\n\n)\n\nCapital expenditures\n\n \n\n \n\n(23.7\n\n)\n\n \n\n \n\n(27.0\n\n)\n\n \n\n \n\n(34.3\n\n)\n\nProceeds from dispositions of property, plant and equipment\n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n0.3\n\n \n\nBusiness Divestiture Proceeds\n\n \n\n \n\n47.3\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nCash settlement of forward contracts\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.4\n\n \n\nSoftware development costs\n\n \n\n \n\n(3.6\n\n)\n\n \n\n \n\n(3.4\n\n)\n\n \n\n \n\n(6.1\n\n)\n\nNet cash provided by (used in) investing activities\n\n \n\n \n\n20.3\n\n \n\n \n\n \n\n(30.3\n\n)\n\n \n\n \n\n(153.9\n\n)\n\nCash flows from financing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBorrowings on revolving credit facilities\n\n \n\n \n\n57.6\n\n \n\n \n\n \n\n41.6\n\n \n\n \n\n \n\n189.2\n\n \n\nRepayment of borrowings on revolving credit facilities\n\n \n\n \n\n(114.3\n\n)\n\n \n\n \n\n(88.7\n\n)\n\n \n\n \n\n(252.0\n\n)\n\nBorrowings on long-term non-revolving debt\n\n \n\n \n\n—\n\n \n\n \n\n \n\n126.8\n\n \n\n \n\n \n\n160.0\n\n \n\nRepayment of borrowings on long-term non-revolving debt\n\n \n\n \n\n(38.2\n\n)\n\n \n\n \n\n(147.7\n\n)\n\n \n\n \n\n(21.5\n\n)\n\nProceeds from stock issued\n\n \n\n \n\n1.8\n\n \n\n \n\n \n\n2.2\n\n \n\n \n\n \n\n2.0\n\n \n\nPurchase of treasury stock\n\n \n\n \n\n(13.6\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nDividends paid to shareholders\n\n \n\n \n\n(12.0\n\n)\n\n \n\n \n\n(11.9\n\n)\n\n \n\n \n\n(11.8\n\n)\n\nPayment of employee tax withholding on vesting\n\n \n\n \n\n(1.4\n\n)\n\n \n\n \n\n(2.6\n\n)\n\n \n\n \n\n(2.2\n\n)\n\nPayment of contingent consideration liability\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(3.4\n\n)\n\nProceeds received upon termination of Cash Flow hedge instruments\n\n \n\n \n\n—\n\n \n\n \n\n \n\n7.1\n\n \n\n \n\n \n\n—\n\n \n\nOther financing activities\n\n \n\n \n\n(1.8\n\n)\n\n \n\n \n\n(5.2\n\n)\n\n \n\n \n\n(2.4\n\n)\n\nNet cash (used in) provided by financing activities\n\n \n\n \n\n(121.9\n\n)\n\n \n\n \n\n(78.4\n\n)\n\n \n\n \n\n57.9\n\n \n\nEffect of exchange rate changes on cash and cash equivalents\n\n \n\n \n\n3.2\n\n \n\n \n\n \n\n(1.7\n\n)\n\n \n\n \n\n0.8\n\n \n\nNet increase (decrease) in cash and cash equivalents\n\n \n\n \n\n28.9\n\n \n\n \n\n \n\n11.7\n\n \n\n \n\n \n\n(11.3\n\n)\n\nCash and cash equivalents, beginning of period\n\n \n\n \n\n44.1\n\n \n\n \n\n \n\n32.4\n\n \n\n \n\n \n\n43.7\n\n \n\nCash and cash equivalents, end of period\n\n \n\n$\n\n73.0\n\n \n\n \n\n$\n\n44.1\n\n \n\n \n\n$\n\n32.4\n\n \n\n \n\n60\n\n \n\n \n\n \n\n \n\nFor the year ended\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\nDecember 30, 2023\n\n \n\nSupplemental disclosure of cash flow information:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash paid:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nIncome taxes\n\n \n\n$\n\n16.1\n\n \n\n \n\n$\n\n21.1\n\n \n\n \n\n$\n\n26.4\n\n \n\nInterest\n\n \n\n$\n\n29.8\n\n \n\n \n\n$\n\n32.4\n\n \n\n \n\n$\n\n29.5\n\n \n\nSupplemental disclosure of noncash transactions:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnrealized loss (gain) on interest rate swaps\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n(0.5\n\n)\n\n \n\n$\n\n4.4\n\n \n\nStock issued for acquisition\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n18.7\n\n \n\nForeign currency remeasurement impact on euro denominated debt\n\n \n\n$\n\n(8.6\n\n)\n\n \n\n$\n\n4.1\n\n \n\n \n\n$\n\n(2.4\n\n)\n\n \n\nA reconciliation of the Cash tax paid for the adoption of ASU 2023-09 is as follows:\n\n \n\n \n\n \n\nFor the year ended\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\nIncome taxes paid:\n\n \n\n$\n\n1.8\n\n \n\nFederal\n\n \n\n$\n\n0.8\n\n \n\nState and local\n\n \n\n \n\n \n\nForeign\n\n \n\n \n\n \n\n  Italy\n\n \n\n \n\n6.6\n\n \n\n  China\n\n \n\n \n\n4.4\n\n \n\n  Australia\n\n \n\n \n\n0.9\n\n \n\n  All other foreign\n\n \n\n \n\n1.6\n\n \n\nTotal income taxes paid\n\n \n\n$\n\n16.1\n\n \n\n \n\nThe accompanying Notes to the Consolidated Financial Statements are an integral part of these financial statements.\n\n61\n\n \n\nHELIOS TECHNOLOGIES, INC.\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS\n\n(Currencies in millions, except per share data)\n\n1. COMPANY BACKGROUND\n\nHelios Technologies, Inc. together with its wholly-owned subsidiaries, 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, health and wellness. Helios sells its products to customers in over 90 countries around the world. The Company’s strategy for growth is to be the leading provider in niche markets, with premier products and solutions through innovative product development and acquisitions.\n\nThe Company operates in two business segments: Hydraulics and Electronics. There are two key technologies within the Hydraulics segment: motion control technology (\"MCT\") and fluid conveyance technology (\"FCT\"). Our MCT products provide simultaneous control of acceleration, velocity and position. MCT includes our cartridge valve technology where we pioneered a fundamentally different design platform employing a floating nose construction that results in a self-alignment characteristic. This design provides better performance and reliability advantages compared with most competitors’ product offerings. Our cartridge valves are offered in several size ranges and include both electrically actuated and hydro-mechanical products. They are designed to operate reliably at higher pressures than most competitors products, making them suitable for both industrial and mobile applications. Our FCT products transfer hydraulic fluid from one point to another. FCT includes our quick release coupling products, which allow users to connect and disconnect quickly from any hydraulic circuit without leakage and ensures high-performance under high temperature and pressure using one or multiple couplers. The Electronics segment provides complete, fully-tailored display and control solutions for engines, engine-driven equipment, specialty vehicles, therapy baths and traditional and swim spas. This broad range of products is complemented by extensive application expertise and unparalleled depth of software, embedded programming, hardware and sustaining engineering teams.\n\n2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES\n\nBasis of Presentation\n\nThe Company reports on a fiscal year that ends on the Saturday closest to December 31st. Each quarter generally consists of thirteen weeks, with a fourteen-week quarter occurring periodically. The 2025 fiscal year contained 53 weeks and ended January 3, 2026. The 2024 and 2023 fiscal years contained 52 weeks and ended December 28, 2024 and December 30, 2023, respectively.\n\nThe Consolidated Financial Statements include the accounts and operations of Helios Technologies and its subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation.\n\nUse of Estimates\n\nThe preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.\n\nCertain conditions may result in a loss, which will only be resolved by future events. We, along with our legal counsel, evaluate such contingent liabilities, which inherently involves judgment. If it is probable that a loss has been incurred and can be reasonably estimated, we accrue for such contingent losses. If a potentially material loss contingency is not probable but reasonably possible, or is probable but cannot be estimated, we disclose the nature of the contingent liability and an estimate of the range of possible loss if determinable and material.\n\nThe Company records a contingent gain when the following conditions are met: (a) the amount to be received is known, (b) there is no potential for appeal or reversal, and (c) collectability is reasonably assured.\n\n62\n\n \n\nForeign Currency Translation and Transactions\n\nThe financial statements of foreign subsidiaries are translated into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for operating results. Unrealized translation gains and losses are included in accumulated other comprehensive income (loss) (“AOCI”) in shareholders’ equity. When a transaction is denominated in a currency other than the subsidiary’s functional currency, the Company recognizes a transaction gain or loss in foreign currency transaction (gain) loss, net.\n\nBusiness Combinations\n\nBusiness combinations are accounted for under the acquisition method of accounting, which requires recognition separately from goodwill, the assets acquired and the liabilities assumed at their acquisition date fair values. While best estimates and assumptions are used to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, when applicable, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, adjustments that are based on new information obtained about facts and circumstances that existed as of the acquisition date are recorded to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in the Consolidated Statements of Operations.\n\nFair Value Measurements\n\nThe Company applies fair value accounting guidelines for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Under these guidelines, fair value is defined as the price that would be received for the sale of an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:\n\nLevel 1 - Quoted prices in active markets for identical assets or liabilities.\n\nLevel 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.\n\nLevel 3 - Unobservable inputs that are supported by little, infrequent, or no market activity and reflect the Company’s own assumptions about inputs used in pricing the asset or liability.\n\nThe fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.\n\nThe fair value of the Company’s accounts receivable, other current assets, accounts payable, accrued expenses, credit facilities and other liabilities approximate their carrying value, due to their short-term nature. Contingent consideration and newly acquired intangible assets are measured at fair value using level 3 inputs. The Company utilizes risk-adjusted probability analysis to estimate the fair value of contingent consideration arrangements. Forward foreign exchange contracts are measured at fair value based on quoted foreign exchange forward rates at the reporting dates. The fair value of interest rate swap contracts is based on the expected cash flows over the life of the trade. Expected cash flows are determined by evaluating transactions with a pricing model using a specific market environment. The values are estimated using the closing and mid-market market rate/price environment as of the end of the period. See Note 4 for detail on the level of inputs used in determining the fair value of assets and liabilities.\n\nCash and Cash Equivalents\n\nThe Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. Any cash equivalents held by the Company are not significant. At year end 2025, of the $73.0 of cash on hand approximately half was held in institutions in APAC, approximately 38% held in institutions in EMEA, and the remainder held in institutions in the Americas.\n\n63\n\n \n\nAccounts Receivable, net\n\nAccounts receivable are stated at amounts owed by customers, net of an allowance for estimated credit losses. The allowance for estimated credit losses is based on management’s assessment of amounts which may become uncollectible in the future and is estimated from a review of historical experience and specific identification of those accounts that are significantly in arrears. Accounts Receivable, net were $116.0 at January 3, 2026, $104.6 at December 28, 2024, and $114.8 at December 30, 2023 respectively and are presented in the Consolidated Balance Sheets. Account balances are charged against the allowance when it is probable the receivable will not be recovered. See the Consolidated Balance Sheets for the allowance amounts.\n\nInventories, net\n\nInventories are valued at the lower of cost and net realizable value, on a first-in, first-out basis. On an ongoing basis, component parts found to be obsolete through design or process changes are disposed of and charged to material cost. The Company reviews on-hand balances of products and component parts against specific criteria. Products and component parts without usage or that have excess quantities on hand are evaluated. An inventory reserve is then established for the appropriate inventory value of those products and component parts deemed to be obsolete or slow moving. See Note 5 for inventory reserve amounts.\n\nProperty, Plant and Equipment, net\n\nProperty, plant and equipment is stated at cost less accumulated depreciation. Expenditures for repairs and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repairs and maintenance are expensed as incurred. Depreciation is computed using the straight-line method generally over the following useful lives:\n\n \n\n \n\n \n\nYears\n\nMachinery and equipment\n\n \n\n3 - 12\n\nOffice furniture and equipment\n\n \n\n2 - 10\n\nBuildings\n\n \n\n10 - 40\n\nBuilding and land improvements\n\n \n\n5 - 20\n\nLeasehold improvements\n\n \n\n2 - 10\n\n \n\nGains or losses on the retirement, sale, or disposal of property, plant and equipment are reflected in the Consolidated Statement of Operations in the period in which the assets are taken out of service.\n\nLeases\n\nThe Company determines whether an arrangement is a lease at its inception. Operating lease right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and are presented in Property, plant and equipment in the Consolidated Balance Sheets. Operating lease liabilities represent the Company’s obligation to make lease payments arising from the leases and are presented in Other accrued expenses and current liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.\n\nThe Company utilizes an estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. The Company considers its existing credit facilities when calculating the incremental borrowing rate.\n\nLease terms include options to extend the lease when it is reasonably certain that the Company will exercise the option. Leases with an initial term of 12 months or less are not recorded on the balance sheet. See Note 7 for additional disclosures related to leases.\n\n64\n\n \n\nGoodwill and Other Intangible Assets\n\nGoodwill represents the excess of the purchase price of an acquisition over the fair value of the net assets acquired. We test goodwill for impairment at the reporting unit level, as of the third quarter period end date, on an annual basis and between annual tests whenever events or circumstances indicate the carrying value of a reporting unit may exceed its fair value. Examples of such circumstances could include, but are not limited to, a significant loss of market share, significant decline in operating results, change in management strategy or operations, economic decline, and other such significant disruptions to the business. As part of the impairment test, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after this optional qualitative assessment, the Company determines that impairment is more likely than not, then the Company performs the quantitative impairment test. The carrying value of assets is calculated at the reporting unit level. An impairment loss is recorded to the extent that the fair value of the goodwill within the reporting unit is less than its carrying value, not exceeding the carrying amount of goodwill. Adjustments to the fair value of purchased assets and liabilities after the initial measurement period are recognized in net earnings. We generally use a combination of market and income approach methodologies to estimate the fair value of our reporting units.\n\nIntangible assets consist primarily of customer relationships, technology, trade names and brands and supply agreements. Amortization is on a straight-line basis over their estimated useful lives and the amortization is reflected in the Consolidated Statements of Operations. The useful lives used are as follows: Customer Relationships - 8 to 26 years; Trade Names and Brands - 10 to 20 years; Technology - 5 to 13 years; and Supply Agreements - 10 years. Intangible assets are tested for impairment if certain circumstances that would indicate the carrying amount of the assets may not be recoverable. Such circumstances can include, but are not limited to, decrease in market price, economic decline, changes in the market, change in business operations, or plans for disposition. Additional information about intangible assets, including the gross and net carrying values for the reported periods and historical and future estimated amortization expense is presented in Note 8 of the Notes to the Consolidated Financial Statements included in this Annual Report. Additional information about our acquisitions, including acquired intangible assets deemed material to the Company’s financial results, is presented in Note 3 of the Notes to the Consolidated Financial Statements included in this Annual Report.\n\nImpairment of Long-Lived Assets\n\nLong-lived assets, such as property and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the asset is measured by comparison of its carrying amount to future net cash flows the asset is expected to generate. If such assets are considered impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. For the years ended January 3, 2026, December 28, 2024, and December 30, 2023, there were no impairments recorded.\n\nRevenue Recognition\n\nRevenue recognition is evaluated through the following five steps: 1) identification of the contracts with customers; 2) identification of the performance obligations in the contracts; 3) determination of the transaction price; 4) allocation of the transaction price to the performance obligations in the contract; and 5) recognition of revenue as or when performance obligations are satisfied.\n\nThe Company disaggregates revenue by reporting segment as well as by geographic destination of the sale. See disaggregated revenue balances in Note 16, Segment Reporting.\n\n65\n\n \n\nRevenue from Product Sales\n\nThe significant majority of the Company’s contracts with its customers are for standard product sales under standard ship and bill arrangements. The contracts are generally accounted for as having a single performance obligation for the manufacture of product, which is considered the only distinct promise in the contract, and are short term in nature, typically completed within one quarter and not exceeding one year in duration. The transaction price is agreed upon in the contract. Revenue is recognized upon satisfaction of the performance obligation, which is typically at a point in time when control is transferred to the customer. Typically, control is transferred upon shipment to the customer but can also occur upon delivery to the customer, depending on contract terms. Revenue recognition can also occur over time for these contracts when the following criteria are met: the Company has no alternative use for the product; and the Company has an enforceable right to payment (including a reasonable margin) for performance completed to date.\n\nRevenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods. Consideration for product sales is primarily fixed in nature. The Company’s estimates for sales discounts, rebates and product returns reduce revenue recognized at the time of the sale.\n\nContract Assets & Liabilities\n\nContract assets are recognized when the Company has a conditional right to consideration for performance completed on contracts. Contract asset balances were zero at January 3, 2026, $4.2 at December 28, 2024, and $3.8 at December 30, 2023 respectively and are presented in Other current assets in the Consolidated Balance Sheets. Accounts receivable balances represent unconditional rights to consideration from customers and are presented separate from contract assets in the Consolidated Balance Sheets. The Company has no individual components of Other current assets in excess of five percent of Total current assets on the Consolidated Balance Sheets at January 3, 2026, December 28, 2024 and December 30, 2023.\n\nContract liabilities are recognized when payment is received from customers prior to satisfying the underlying performance obligation. Contract liabilities totaled $0.4, $2.7, and $2.1 at January 3, 2026, December 28, 2024, and December 30, 2023, respectively, and are presented in Other accrued expenses and current liabilities on the Consolidated Balance Sheets. The Company has no individual components of Other accrued expenses and current liabilities in excess of five percent of Total current liabilities on the Consolidated Balance Sheets at January 3, 2026, December 28, 2024 and December 30, 2023.\n\nOther Revenue Recognition Considerations\n\nContracts do not have significant financing components and payment terms do not exceed one year from the date of the sale. The Company does not incur significant credit losses from contracts with customers.\n\nThe Company applies the practical expedient as permitted by the Financial Accounting Standards Board, which allows the omission of certain disclosures related to remaining performance obligations, as contract duration does not exceed one year.\n\nThe Company’s warranties provide assurance that products will function as intended. Estimated costs of product warranties are recognized at the time of the sale. The estimates are based upon current and historical warranty trends and other related information known to the Company. Accrued Warranty balances were $2.3 at January 3, 2026 and $2.4 December 28, 2024, respectively and are presented in Other accrued expense and current liabilities in the Consolidated Balance Sheets.\n\nThe Company treats shipping and handling activities that occur after control of the product transfers as fulfillment activities, and therefore, does not account for shipping and handling costs as a separate performance obligation. Shipping and handling costs billed to customers are recorded in revenue. Shipping costs incurred by the Company are recorded in cost of goods sold.\n\nA collaborative arrangement is a contractual arrangement that involves a joint operating activity involving two or more parties that meet both of the following requirements: they are active participants in the activity and they are exposed to significant risks and rewards dependent on the commercial success of the activity. The assessment for a collaborative arrangement is performed throughout the arrangement. In May 2024, the Company entered into a collaborative\n\n66\n\n \n\nagreement with WaterGuru, Inc. (“Waterguru”) to design and produce water sensing and treatment products for the spa industry. Where Helios is the principal on sales transactions to third parties, it recognizes revenues, cost of sales and operating expenses on a gross basis on its statements of operations. Helios will pay Waterguru a portion of gross margin on the product specific transactions defined in the agreement for the term of the agreement. Where Helios is not the principal on sales transactions with other third parties, it records its share of the revenues, cost of sales and operating expenses on a net basis on its statements of operations. Waterguru will pay Helios a portion of revenues on the product specific transactions defined in the agreement for the term of the agreement. Revenues and costs associated with this arrangement in 2024 and 2025 were not material.\n\nDerivative Instruments and Hedging Activities\n\nAll derivative instruments are recorded gross on the Consolidated Balance Sheets at their respective fair values. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is initially reported as a component of AOCI and is subsequently reclassified into the line item within the Consolidated Statements of Operations in which the hedged items are recorded in the same period in which the hedged item affects earnings.\n\nThe Company enters into foreign exchange currency contracts that are not designated as hedging instruments for accounting purposes. Changes in the fair value of foreign exchange currency contracts not designated as hedging instruments are recognized in earnings. Derivative financial instruments are utilized as risk management tools and are not used for trading or speculative purposes.\n\nThe Company utilizes foreign currency denominated debt to hedge currency exposure in foreign operations. The Company designates certain foreign currency denominated debt as hedges of net investments in foreign operations, which reduces the Company’s exposure to changes in currency exchange rates on investments in non-U.S. subsidiaries. Gains and losses on net investments in non-U.S. operations are economically offset by losses and gains on foreign currency borrowings. The change in the U.S. dollar value of foreign currency denominated debt is recorded in Foreign currency translation adjustments, a component of AOCI.\n\nResearch and Development\n\nThe Company conducts R&D to create new products and to make improvements to products currently in use. R&D costs are charged to expense as incurred and totaled $19.1, $20.1 and $19.2 for the 2025, 2024 and 2023 fiscal years, respectively and are reported in Selling, engineering and administrative expenses in the Consolidated Statements of Operations.\n\nStock-Based Compensation\n\nAll share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as an expense in earnings over the requisite service period. For performance-based share awards, the Company recognizes expense when it is determined the performance criteria are probable of being met. The probability of vesting is reassessed at each reporting date and compensation cost is adjusted using a cumulative catch up adjustment. Forfeitures are recognized in compensation cost when they occur. Benefits or deficiencies of tax deductions in excess of recognized compensation costs are reported within operating cash flows.\n\nShare Repurchase Plan\n\nThe Company accounts for share repurchases under the cost method whereby shares reacquired are recorded as treasury stock and reported as a reduction of shareholders’ equity at the aggregate purchase price, including any directly attributable costs. Treasury shares are excluded from shares outstanding for purposes of calculating basic and diluted\n\n67\n\n \n\nearnings per share and do not receive dividends or have voting rights. Upon reissuance of treasury shares, any difference between the cost of the shares and the consideration received is recorded in additional paid-in capital, and to the extent such additional paid-in capital is insufficient, in retained earnings. No gains or losses are recognized in the consolidated statements of operations upon the purchase, reissuance, or retirement of treasury shares.\n\nIncome Taxes\n\nThe Company’s income tax policy provides for a balance sheet approach under which deferred income taxes are provided for based upon enacted tax laws and rates applicable to the periods in which the taxes become payable. These differences result from items reported differently for financial reporting and income tax purposes, primarily depreciation, accrued expenses and reserves. If necessary, the measurement of deferred tax assets is reduced by the amount of any tax benefits that are not expected to be realized based on available evidence.\n\nThe Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company recognizes potential interest and penalties related to its unrecognized tax benefits in income tax expense.\n\nThe Company accounts for Global Intangible Low-Taxed Income as a current-period expense when incurred.\n\nThe deferral method of accounting is used for investments that generate investment tax credits. Under this method, the investment tax credits are recognized as a reduction of the related asset.\n\nCapitalized Software Development Costs\n\nThe Company sells certain products that contain embedded software that is integral to the functionality of the products. Internal and external costs incurred for developing this software are charged to expense until technological feasibility has been established, at which point the development costs are capitalized. Capitalized software development costs primarily include payroll, benefits and other headcount related expenses. Once the products are available for general release to customers, no additional costs are capitalized. Capitalized software development costs, net of accumulated amortization, were $13.2 and $11.1 at January 3, 2026, and December 28, 2024, respectively, and are included in Other assets in the Consolidated Balance Sheets. For the years ended January 3, 2026, December 28, 2024 and December 30, 2023, amortization expense of Capitalized software development costs were $1.9, $1.3, and $0.7, respectively, and are included in Cost of goods sold in the Consolidated Statements of Operations.\n\nEarnings Per Share\n\nThe following table presents the computation of basic and diluted earnings per common share (in millions except per share data):\n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\nDecember 30, 2023\n\n \n\nNet income\n\n \n\n$\n\n48.4\n\n \n\n \n\n$\n\n39.0\n\n \n\n \n\n$\n\n37.5\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted average shares outstanding - Basic\n\n \n\n \n\n33.2\n\n \n\n \n\n \n\n33.2\n\n \n\n \n\n \n\n32.9\n\n \n\nNet effect of dilutive securities - Stock based compensation\n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n0.1\n\n \n\nWeighted average shares outstanding - Diluted\n\n \n\n \n\n33.3\n\n \n\n \n\n \n\n33.3\n\n \n\n \n\n \n\n33.0\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income per share:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBasic\n\n \n\n$\n\n1.46\n\n \n\n \n\n$\n\n1.17\n\n \n\n \n\n$\n\n1.14\n\n \n\nDiluted\n\n \n\n$\n\n1.45\n\n \n\n \n\n$\n\n1.17\n\n \n\n \n\n$\n\n1.14\n\n \n\n \n\n68\n\n \n\nBasic and diluted earnings per share is calculated by dividing net earnings by the coinciding weighted average number of shares outstanding. Our calculation of diluted earnings per share includes the impact of the assumed vesting of outstanding restricted stock units and dilutive stock options, based on the treasury stock method. In 2025, there were 155,012 stock options that were excluded from the diluted earnings per share calculation as they would have been anti-dilutive.\n\n69\n\n \n\nRecently Adopted Accounting Standards\n\nIn March 2020, and clarified through December 2022, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This update provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform. The guidance was effective immediately upon issuance in March 2020 and cannot be applied subsequent to December 31, 2024, except for certain optional expedients. The Company adopted the standard for the fiscal year beginning January 1, 2023. In March 2023, the Company executed an amendment to the term loan and revolving credit facility to modify and replace reference to the London Interbank Offered Rate (\"LIBOR\"). Additionally in March 2023, the Company executed an amendment to the interest rate swap agreements to modify and replace reference to LIBOR. The Company applied the accounting relief in accordance with ASC 848 as the relevant contract and hedge accounting relationship modifications were executed. The adoption of this standard did not have a material impact on our accounting policies or consolidated financial statements.\n\nBeginning in 2024 annual reporting, we adopted Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07) that was issued by the Financial Accounting Standards Board (FASB). This new standard requires an enhanced disclosure of significant segment expenses on an annual and interim basis. Upon adoption, the guidance was applied retrospectively to all prior periods presented in the financial statements, which resulted in the disclosure of selling, engineering and administrative expenses, research and development costs, indirect expenses, and amortization of intangible assets for each reportable segment. For additional information, see Note 16 — Segment Reporting.\n\nThe Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2023-09 Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. The amendments in this update focus on improving the transparency, effectiveness and comparability of income tax disclosures primarily related to the pretax income (or loss), income tax expense (or benefit), rate reconciliation and income taxes paid for public business entities. The amendments in this update are effective for annual periods beginning after December 15, 2024. We adopted this standard as of our current annual reporting period ending January 3, 2026. For additional information, see Note 12 — Income Taxes.\n\nRecently Issued Accounting Standards\n\nIn November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). This ASU requires enhanced disclosures about types of expenses, including purchases of inventory, employee compensation, depreciation, and amortization, in commonly presented expense captions. The amendments are effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. Entities may apply the amendments prospectively or retrospectively to any or all prior periods presented in the financial statements. This ASU will only impact our disclosures and not our financial condition and results of operations. The Company does not plan to early adopt the standard.\n\nIn July 2025, the FASB issued Accounting Standards Update (ASU) No. 2025-05 Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments in this update provide entities with a practical expedient to assume that conditions as of the balance sheet date do not change for the remaining life of accounts receivable and contract assets accounted for under Topic 606 when developing forecasts as part of estimating expected credit losses. They also provide entities choosing to elect the practical expedient with an option to make an accounting policy election to consider collection activity after the balance sheet date when estimated expected credit losses. The amendments are effective for fiscal years beginning after December 15, 2025, and interim periods within those annual reporting periods, with early adoption permitted. Entities should apply the amendments prospectively. The Company is evaluating the benefit of the practical expedient and accounting policy adoption but does not expect a material impact on the consolidated financial statements or disclosures. We do not plan to early adopt the standard.\n\n70\n\n \n\nIn September 2025, the FASB issued Accounting Standards Update (ASU) No. 2025-06 Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40) - Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this update remove references to project stages when determining if development costs should be capitalized in order to better align the accounting with how software is developed. The amendments are effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods, with early adoption permitted as of the beginning of an annual reporting period. Entities may apply the amendments prospectively, retrospectively to any or all prior periods presented in the financial statements, or using a modified approach based on the status of the software development project and whether software costs were capitalized before the date of adoption. The Company does not expect the changes to have a material impact on the consolidated financial statements and are assessing when to adopt the standard.\n\nIn November 2025, the FASB issued Accounting Standards Update (ASU) No. 2025-09 - Derivative and Hedging (Topic 815) to clarify and improve hedge accounting guidance. The update is intended to better align hedge accounting with entities’ risk management activities, reduce complexity, and enable more economic hedging strategies to qualify for hedge accounting. The amendments are effective for fiscal years beginning after December 15, 2026, and interim periods within those annual reporting periods, with early adoption permitted as of the beginning of an annual reporting period. Entities may apply the amendments prospectively, retrospectively to any or all prior periods presented in the financial statements. The Company does not expect the changes to have a material impact on the consolidated financial statements and are assessing when to adopt the standard.\n\nIn December 2025, the FASB issued Accounting Standards Update (ASU) No. 2025-11 - Interim Reporting (Topic 270) with the goal of clarifying and reorganizing existing interim reporting guidance so it is easier for preparers to apply and understand. The update does not change the fundamental nature of interim reporting under U.S. GAAP or expand or reduce current interim disclosure requirements. The amendments are effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods, with early adoption permitted as of the beginning of an annual reporting period. Entities may apply the amendments prospectively, retrospectively to any or all prior periods presented in the financial statements. The Company does not expect the changes to have a material impact on the consolidated financial statements and are assessing when to adopt the standard.\n\nIn December 2025, the FASB issued Accounting Standards Update (ASU) No. 2025-12 - Codification Improvements designed to clarify, correct and improve U.S. GAAP guidance on a variety of topics. It is part of FASB's ongoing Codification improvements project, which addresses technical corrections, resolves unintended application issues, and enhances usability of the Codification without making major changes to fundamental accounting principles. The amendments are effective for fiscal years beginning after December 15, 2026, and interim periods within those annual reporting periods, with early adoption permitted on an issue-by-issue basis, provided the financial statements for the period have not yet been issued.\n\n3. BUSINESS ACQUISITIONS AND DIVESTITURE\n\n2023 Acquisitions\n\nOn January 27, 2023, the Company completed the acquisition of Schultes Precision Manufacturing, Inc. (\"Schultes\"), an Illinois corporation. Schultes is a highly trusted specialist in manufacturing precision machined components and assemblies for customers requiring very tight tolerances, superior quality and exceptional value-added manufacturing processes. Currently serving the hydraulic, aerospace, communication, food services, medical device and dental industries, Schultes brings the manufacturing quality, reliability and responsiveness critical to its customers’ success. The results of Schultes' operations are reported in the Company’s Hydraulics segment and have been included in the Consolidated Financial Statements since the date of acquisition.\n\nInitial cash consideration paid at closing for Schultes, net of cash acquired, totaled $84.7. Cash consideration paid at closing was funded with additional borrowings on the Company’s credit facility.\n\n71\n\n \n\nOn May 26, 2023, the Company completed the acquisition of i3 Product Development, Inc. (“i3PD”), a Wisconsin corporation. i3PD is a custom engineering services firm, employing engineers with expertise in electronics, mechanical, industrial, embedded and software engineering. i3PD's solutions are used across many sectors, including medical, off-highway, recreational and commercial marine, power sports, health and wellness, agriculture, consumer goods, industrial, sports and fitness. i3PD equips Helios with significant value-added professional services capabilities to provide customization to Helios platforms and to develop greenfield solutions. The results of i3PD's operations are reported in the Company’s Electronics segment and have been included in the Consolidated Financial Statements since the date of acquisition.\n\nInitial consideration paid at closing for i3PD, net of cash acquired, totaled $44.0, consisting of 370,276 shares of the Company's common stock, issued in a private placement to the previous owners of i3PD, and cash of $25.4. The cash consideration paid at closing was funded with additional borrowings on the Company’s credit facility.\n\nIn connection with these acquisitions, the Company recorded $37.7 of goodwill, $48.0 of other identifiable intangible assets, $34.2 of property, plant and equipment and $8.8 of other net assets. The intangible assets include customer relationships of $36.4 (15.7 year weighted average useful life), trade names and brands of $7.6 (14.0 year weighted average useful life), technology of $3.3 (5.0 year weighted average useful life) and sales order backlog of $0.7 (less than one year weighted average useful life).\n\nThe purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The fair value of identified intangible assets acquired was based on estimates and assumptions made by management at the time of the acquisitions.\n\nPro forma results of operations and the revenue and net income subsequent to the acquisition dates for the acquisitions completed during fiscal 2023 have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to the Company's financial results.\n\n2025 Divestiture\n\nOn September 27, 2025 the Company completed the sale of the outstanding equity interest in Guwing Holdings Pty. Ltd. (\"Guwing\"), and Guwing's 100% ownership of the share capital of Custom Fluidpower Pty. Ltd. (\"CFP\") to a non-related party (the \"Divestiture\"). CFP was acquired in August 2018 and expanded the Company's hydraulics operations and footprint in Asia-Pacific Region (\"APAC\"). Since acquiring CFP, we have further invested in the APAC region as part of our \"in the region for the region\" strategy and have expanded manufacturing and design engineering capabilities.\n\nThe preliminary sales price for the divestiture was $76.7 AUD in cash including adjustments for estimated closing date net working capital and cash on hand, consisting of $60.5 AUD in cash to the Company and $16.2 AUD that the buyer agreed to pay directly to the Company’s lender in satisfaction of subsidiary-level debt. The sales price is subject to adjustments based on the final closing date net working capital and cash on hand of the divested business.\n\nAs of September 27, 2025, the Company recorded a receivable of $38.4 USD for proceeds to be received directly from the buyer, which was subsequently settled when the buyer remitted payment on October 1, 2025. The Company also recorded a receivable of $1.3 USD for proceeds that were held back from initial funding and are to be paid no later than two years from the completion of the transaction. The hold back amount is not held in escrow and not subject to interest. It is not contingent on any performance obligation, but will be used to settle claims made by the buyer per the terms of the purchase agreement for a matter that existed pre-close, provided the Company agrees or the matter is solved through arbitration. No claims have been identified as of the period end date and future claims are not probable or estimable. Therefore, no provision has been made for potential claims. This receivable is presented within Other assets on the Consolidated Balance Sheet for the period ending January 3, 2026. There was no impact on the Company’s cash flows in the current period.\n\nThe Company recognized (i) a pre-tax gain net of costs to sell on the sale of the subsidiary’s net assets and (ii) a reclassification of the cumulative translation adjustment (\"CTA\") related to the subsidiary from accumulated other comprehensive income (\"AOCI\") to earnings, as required by ASC 830-30 when a foreign operation is sold or substantially liquidated. The gain on sale and the reclassification of CTA were presented together in continuing operations and are\n\n72\n\n \n\nincluded in Other non-operating income, net on the Consolidated Statement of Operations for the year ended January 3, 2026. The components of the pre-tax gain recognized in USD were:\n\n•\nProceeds to be received from sale, net of $10.5 outstanding CFP debt (all cash): $39.7.\n\n•\nCarrying value of net assets disposed: $29.3.\n\n•\nPre-tax gain net of $0.3 costs to sell on disposal before reclassification of CTA: $21.0.\n\n•\nReclassification of CTA (AOCI to earnings): $2.2.\n\n•\nPre-tax gain recognized in continuing operations: $18.8.\n\n•\nIncome tax expense related to the gain and reclassification of CTA: $3.5.\n\n•\nNet gain after tax recognized in continuing operations: $15.2.\n\nThe subsidiary was included in continuing operations because the sale did not meet the criteria to be reported as discontinued operations under ASC 205-20. The net income of the disposal group through the completion date is included in the Company's Consolidated Statements of Operations. For the year ended January 3, 2026 and December 28, 2024, pre-tax profit of the disposal group was $2.3 and $4.5 respectively, excluding the reclassification of CTA. The pre-tax gain on disposal and the reclassification of CTA are not included in the segment results as the elements of the pre-tax gain are not used by the chief operating decision maker (CODM) for assessing Hydraulics segment performance.\n\nCertain disclosures have not been presented as the effect of the acquisition and divestiture were not material to the Company's financial results.\n\n4. FAIR VALUE OF FINANCIAL INSTRUMENTS\n\nThe following tables provide information regarding the Company’s assets and liabilities measured at fair value on a recurring basis at January 3, 2026 and December 28, 2024.\n\n \n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSignificant Other\n\n \n\n \n\nSignificant\n\n \n\n \n\n \n\n \n\n \n\n \n\nQuoted Market\n\n \n\n \n\nObservable\n\n \n\n \n\nUnobservable\n\n \n\n \n\n \n\nTotal\n\n \n\n \n\nPrices (Level 1)\n\n \n\n \n\nInputs (Level 2)\n\n \n\n \n\nInputs (Level 3)\n\n \n\nAssets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest rate swap contracts\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nTotal\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nLiabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nContingent consideration\n\n \n\n$\n\n0.4\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n0.4\n\n \n\nTotal\n\n \n\n$\n\n0.4\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n0.4\n\n \n\n \n\n73\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSignificant Other\n\n \n\n \n\nSignificant\n\n \n\n \n\n \n\n \n\n \n\n \n\nQuoted Market\n\n \n\n \n\nObservable\n\n \n\n \n\nUnobservable\n\n \n\n \n\n \n\nTotal\n\n \n\n \n\nPrices (Level 1)\n\n \n\n \n\nInputs (Level 2)\n\n \n\n \n\nInputs (Level 3)\n\n \n\nAssets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest rate swap contract\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nTotal\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nLiabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nContingent consideration\n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.4\n\n \n\nTotal\n\n \n\n$\n\n0.4\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n0.4\n\n \n\n \n\nA summary of changes in the estimated fair value of contingent consideration at January 3, 2026 and December 28, 2024 is as follows:\n\n \n\nBalance at December 30, 2023\n\n \n\n$\n\n0.5\n\n \n\nPayment on liability\n\n \n\n \n\n(0.5\n\n)\n\nAccretion in value\n\n \n\n \n\n0.4\n\n \n\nBalance at December 28, 2024\n\n \n\n$\n\n0.4\n\n \n\nPayment on liability\n\n \n\n \n\n—\n\n \n\nBalance at January 3, 2026\n\n \n\n$\n\n0.4\n\n \n\n \n\n5. INVENTORIES, NET\n\nAt January 3, 2026 and December 28, 2024, inventory consisted of the following:\n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\nRaw materials\n\n \n\n$\n\n106.9\n\n \n\n \n\n$\n\n105.3\n\n \n\nWork in process\n\n \n\n \n\n50.5\n\n \n\n \n\n \n\n48.7\n\n \n\nFinished goods\n\n \n\n \n\n43.1\n\n \n\n \n\n \n\n46.7\n\n \n\nProvision for obsolete and slow moving inventory\n\n \n\n \n\n(11.9\n\n)\n\n \n\n \n\n(10.6\n\n)\n\nTotal\n\n \n\n$\n\n188.6\n\n \n\n \n\n$\n\n190.1\n\n \n\n \n\n6. PROPERTY, PLANT AND EQUIPMENT, NET\n\nAt January 3, 2026 and December 28, 2024, property, plant and equipment, net consisted of the following:\n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\nMachinery and equipment\n\n \n\n$\n\n272.9\n\n \n\n \n\n$\n\n247.6\n\n \n\nOffice furniture and equipment\n\n \n\n \n\n67.9\n\n \n\n \n\n \n\n58.0\n\n \n\nBuildings\n\n \n\n \n\n80.8\n\n \n\n \n\n \n\n81.0\n\n \n\nBuilding and land improvements\n\n \n\n \n\n21.1\n\n \n\n \n\n \n\n20.9\n\n \n\nLeasehold improvements\n\n \n\n \n\n10.1\n\n \n\n \n\n \n\n5.2\n\n \n\nLand\n\n \n\n \n\n16.6\n\n \n\n \n\n \n\n16.8\n\n \n\n \n\n \n\n$\n\n469.4\n\n \n\n \n\n$\n\n429.5\n\n \n\nLess: Accumulated depreciation\n\n \n\n \n\n(296.4\n\n)\n\n \n\n \n\n(263.2\n\n)\n\nConstruction in progress\n\n \n\n \n\n16.0\n\n \n\n \n\n \n\n27.2\n\n \n\n \n\n \n\n$\n\n189.0\n\n \n\n \n\n$\n\n193.5\n\n \n\nOperating lease ROU assets\n\n \n\n \n\n17.6\n\n \n\n \n\n \n\n22.9\n\n \n\nTotal\n\n \n\n$\n\n206.6\n\n \n\n \n\n$\n\n216.4\n\n \n\nDepreciation expense for the years ended January 3, 2026, December 28, 2024 and December 30, 2023 totaled $29.0, $30.7 and $30.2, respectively.\n\n74\n\n \n\n7. OPERATING LEASES\n\nThe Company leases machinery, equipment, vehicles, buildings and office space throughout its locations that are classified as operating leases. Remaining terms on these leases range from less than one year to eight years. For the years ended January 3, 2026, December 28, 2024 and December 30, 2023, operating lease costs totaled $8.1, $7.5 and $7.0, respectively.\n\nSupplemental balance sheet information related to operating leases is as follows:\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\nRight-of-use assets\n\n \n\n$\n\n17.6\n\n \n\n \n\n$\n\n22.9\n\n \n\nLease liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent lease liabilities\n\n \n\n$\n\n3.8\n\n \n\n \n\n$\n\n4.4\n\n \n\nNon-current lease liabilities\n\n \n\n \n\n15.3\n\n \n\n \n\n \n\n20.3\n\n \n\nTotal lease liabilities\n\n \n\n$\n\n19.1\n\n \n\n \n\n$\n\n24.7\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted average remaining lease term (in years):\n\n \n\n \n\n3.4\n\n \n\n \n\n \n\n \n\nWeighted average discount rate:\n\n \n\n \n\n4.4\n\n%\n\n \n\n \n\n \n\nSupplemental cash flow information related to leases is as follows:\n\n \n\n \n\n \n\nFor the Year Ended\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\nCash paid for amounts included in the measurement of lease liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating cash flows from operating leases\n\n \n\n$\n\n8.2\n\n \n\n \n\n$\n\n7.9\n\n \n\nNon-cash impact of new leases and lease modifications\n\n \n\n$\n\n4.4\n\n \n\n \n\n$\n\n1.8\n\n \n\n \n\nMaturities of lease liabilities are as follows:\n\n \n\n2026\n\n \n\n$\n\n6.8\n\n \n\n2027\n\n \n\n \n\n3.8\n\n \n\n2028\n\n \n\n \n\n3.4\n\n \n\n2029\n\n \n\n \n\n3.3\n\n \n\n2030\n\n \n\n \n\n3.1\n\n \n\nThereafter\n\n \n\n \n\n4.7\n\n \n\nTotal lease payments\n\n \n\n \n\n25.1\n\n \n\nLess: Imputed interest\n\n \n\n \n\n(6.0\n\n)\n\nTotal lease obligations\n\n \n\n \n\n19.1\n\n \n\nLess: Current lease liabilities\n\n \n\n \n\n(3.8\n\n)\n\nNon-current lease liabilities\n\n \n\n$\n\n15.3\n\n \n\n \n\n75\n\n \n\n \n\n8. GOODWILL AND INTANGIBLE ASSETS\n\nGoodwill\n\nA summary of changes in goodwill by segment for the years ended January 3, 2026 and December 28, 2024 is as follows:\n\n \n\n \n\n \n\nHydraulics\n\n \n\n \n\nElectronics\n\n \n\n \n\nTotal\n\n \n\nBalance at December 30, 2023\n\n \n\n$\n\n302.1\n\n \n\n \n\n$\n\n211.9\n\n \n\n \n\n$\n\n514.0\n\n \n\nCurrency translation\n\n \n\n \n\n(15.0\n\n)\n\n \n\n \n\n(0.1\n\n)\n\n \n\n \n\n(15.1\n\n)\n\nBalance at December 28, 2024\n\n \n\n$\n\n287.1\n\n \n\n \n\n$\n\n211.8\n\n \n\n \n\n$\n\n498.9\n\n \n\nCurrency translation\n\n \n\n \n\n30.6\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n30.7\n\n \n\nGoodwill written off related to sale of business\n\n \n\n \n\n(5.6\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(5.6\n\n)\n\nGoodwill Impairment losses\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(25.9\n\n)\n\n \n\n \n\n(25.9\n\n)\n\nBalance at January 3, 2026\n\n \n\n$\n\n312.1\n\n \n\n \n\n$\n\n186.0\n\n \n\n \n\n$\n\n498.1\n\n \n\nAccumulated Impairments (A)\n\n \n\n \n\n31.9\n\n \n\n \n\n \n\n25.9\n\n \n\n \n\n \n\n57.8\n\n \n\n(A) In the third quarter of 2025 a $25.9 impairment was recorded in Electronics. There were no impairments recorded in 2024 or 2023.\n\nThe Company tests goodwill for impairment at the reporting unit level, (i) as of the third quarter period end date, and (ii) between annual tests whenever events or circumstances indicate the carrying value of a reporting unit may exceed its fair value.\n\nIn the second quarter of 2025, the Company announced a leadership change in the Electronics segment from Lee Wichlacz to Billy Aldridge. Under the new leadership in the third of 2025, the Company evaluated the strategy and financial projections related to i3 Product Development (\"i3PD\"), a custom engineering services firm we acquired in May of 2023 that is part of our Electronics segment. That evaluation led to a reduction in the i3PD projected profit contributions to the Company over the short and mid-term due to de-emphasizing i3PD sales that do not align with the Company's core business. We performed a test for goodwill impairment as of the third quarter period end date and concluded goodwill was impaired.\n\nThe fair value of the i3PD reporting unit was determined based on an income approach methodology. A market approach methodology was evaluated but not used as the Company determined information for companies comparable to i3PD was not readily available. The income approach utilized a discounted cash flow analysis, which estimates the present value of the projected free cash flows to be generated by the reporting unit. Principal assumptions used in the analysis included the Company's estimates of future revenue and terminal growth rates, margin assumptions and discount rates. While assumptions utilized are subject to a high degree of judgment and complexity, the Company made every effort to estimate future cash flows as accurately as possible, given the high degree of economic uncertainty that existed. The Company concluded that the estimated fair value of the i3PD reporting unit was less than its carrying value, and as a result, recorded a non-cash, non-tax-deductible goodwill impairment charge of $25.9. This represents the full amount of goodwill for the i3PD reporting unit.\n \n\nThe Company performed the annual test of goodwill impairment on its other reporting units and concluded that it was more likely than not that their fair value exceeded their carrying value.\n\n \n\n76\n\n \n\nAcquired Intangibles Assets\n\nAt January 3, 2026 and December 28, 2024, intangible assets consisted of the following:\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\n \n\nGross Carrying\nAmount\n\n \n\n \n\nAccumulated\nAmortization\n\n \n\n \n\nNet Carrying\nAmount\n\n \n\n \n\nGross Carrying\nAmount\n\n \n\n \n\nAccumulated\nAmortization\n\n \n\n \n\nNet Carrying\nAmount\n\n \n\nDefinite-lived intangibles:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTrade names and brands\n\n \n\n$\n\n95.8\n\n \n\n \n\n$\n\n(34.5\n\n)\n\n \n\n$\n\n61.3\n\n \n\n \n\n$\n\n94.1\n\n \n\n \n\n$\n\n(28.6\n\n)\n\n \n\n$\n\n65.5\n\n \n\nNon-compete agreements\n\n \n\n \n\n2.1\n\n \n\n \n\n \n\n(2.1\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n2.0\n\n \n\n \n\n \n\n(1.6\n\n)\n\n \n\n \n\n0.4\n\n \n\nTechnology\n\n \n\n \n\n54.7\n\n \n\n \n\n \n\n(36.8\n\n)\n\n \n\n \n\n17.9\n\n \n\n \n\n \n\n53.4\n\n \n\n \n\n \n\n(31.3\n\n)\n\n \n\n \n\n22.1\n\n \n\nSupply agreement\n\n \n\n \n\n21.0\n\n \n\n \n\n \n\n(19.1\n\n)\n\n \n\n \n\n1.9\n\n \n\n \n\n \n\n21.0\n\n \n\n \n\n \n\n(17.0\n\n)\n\n \n\n \n\n4.0\n\n \n\nCustomer relationships\n\n \n\n \n\n400.3\n\n \n\n \n\n \n\n(111.5\n\n)\n\n \n\n \n\n288.8\n\n \n\n \n\n \n\n380.1\n\n \n\n \n\n \n\n(89.6\n\n)\n\n \n\n \n\n290.5\n\n \n\nWorkforce\n\n \n\n \n\n6.1\n\n \n\n \n\n \n\n(6.1\n\n)\n\n \n\n \n\n(0.0\n\n)\n\n \n\n \n\n6.2\n\n \n\n \n\n \n\n(4.7\n\n)\n\n \n\n \n\n1.5\n\n \n\n \n\n \n\n$\n\n580.0\n\n \n\n \n\n$\n\n(210.1\n\n)\n\n \n\n$\n\n369.9\n\n \n\n \n\n$\n\n556.8\n\n \n\n \n\n$\n\n(172.8\n\n)\n\n \n\n$\n\n384.0\n\n \n\n \n\nAmortization expense on acquired intangibles assets for the 2025, 2024 and 2023 fiscal years was approximately $31.7, $31.5 and $32.9, respectively, reflected in amortization of intangible assets in the Consolidated Statements of Operations. Additionally, $0.3 of acquired amortization expense for the 2025 fiscal year was reflected in cost of sales in the Consolidated Statement of Operations. Future estimated total amortization expense is presented below.\n\n \n\nYear:\n\n \n\n \n\n \n\n2026\n\n \n\n$\n\n30.5\n\n \n\n2027\n\n \n\n \n\n27.4\n\n \n\n2028\n\n \n\n \n\n27.1\n\n \n\n2029\n\n \n\n \n\n25.3\n\n \n\n2030\n\n \n\n \n\n24.5\n\n \n\nThereafter\n\n \n\n \n\n235.1\n\n \n\nTotal\n\n \n\n$\n\n369.9\n\n \n\n \n\n9. DERIVATIVE INSTRUMENTS & HEDGING ACTIVITIES\n\nThe Company addresses certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments. The Company had entered into foreign currency forward contracts to reduce the effects of fluctuating foreign currency exchange rates. In addition, the Company had entered into interest rate derivatives to manage the effects of interest rate movements on the Company’s credit facilities.\n\nFor each derivative contract entered into where the Company looks to obtain hedge accounting treatment, the Company formally and contemporaneously documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking the hedge transaction, the nature of the risk being hedged, how the hedging instruments’ effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively. This process includes linking all derivatives to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the inception of the hedges and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. If it is determined that a derivative is not highly effective, or that it has ceased to be a highly effective hedge, the Company will discontinue hedge accounting with respect to that derivative prospectively. The Company had no derivative instruments in 2025 or 2024.\n\n \n\n77\n\n \n\nGains and losses related to the Company’s derivative financial instruments for the 2025, 2024 and 2023 years are presented as follows:\n\n \n\n \n\nAmount of Gain or (Loss) Recognized in Other\nComprehensive Income on Derivative\n(Effective Portion)\n\n \n\n \n\nLocation of Gain or\n(Loss) Reclassified from\nAccumulated Other\nComprehensive Income\n\n \n\nAmount of Gain or (Loss) Reclassified from\nAccumulated Other Comprehensive Income into\nEarnings (Effective Portion)\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\nDecember 30, 2023\n\n \n\n \n\ninto Earnings\n(Effective Portion)\n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\nDecember 30, 2023\n\n \n\nDerivatives in cash flow hedging relationships:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest rate\n   swap contracts\n\n \n\n$\n\n(5.4\n\n)\n\n \n\n$\n\n0.5\n\n \n\n \n\n$\n\n(4.4\n\n)\n\n \n\nInterest expense, net\n\n \n\n$\n\n(5.4\n\n)\n\n \n\n$\n\n3.6\n\n \n\n \n\n$\n\n7.0\n\n \n\nInterest expense presented in the Consolidated Statements of Operations, in which the effects of cash flow hedges are recorded, totaled $21.9, $33.8 and $31.2 for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, respectively.\n\n \n\n \n\nAmount of Gain or (Loss) Recognized\nin Earnings on Derivatives\n\n \n\n \n\nLocation of Gain or (Loss)\nRecognized\n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\nDecember 30, 2023\n\n \n\n \n\nin Earnings on Derivatives\n\nDerivatives not designated as hedging instruments:\n\n \n\n \n\n \n\nForward foreign exchange contracts\n\n \n\n$\n\n(0.6\n\n)\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n(0.3\n\n)\n\n \n\nForeign currency transaction gain / loss, net\n\n \n\nInterest Rate Swap Contracts\n\nThe Company primarily utilizes variable-rate debt, which exposes the Company to variability in interest payments. The Company enters into various types of derivative instruments to manage fluctuations in cash flows resulting from interest rate risk attributable to changes in the benchmark interest rates.\n\nThe Company assesses interest rate cash flow risk by continually identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities.\n\nThe Company maintains risk management control systems to monitor interest rate cash flow risk attributable to both the Company’s outstanding and forecasted debt obligations as well as the Company’s offsetting hedge positions. The risk management control systems involve the use of analytical techniques to estimate the expected impact of changes in interest rates on the Company’s future cash flows.\n\nPreviously, the Company had entered into interest rate swap transactions to hedge the variable interest rate payments on its credit facilities. In connection with these transactions, the Company paid interest based upon a fixed rate as agreed upon with the respective counterparties and received variable rate interest payments. The interest rate swaps were designated as hedging instruments and were accounted for as cash flow hedges. In June 2024, the Company's interest rate swap agreements were terminated in connection with the debt refinancing activities. Upon termination of these effective interest rate swaps designated as a cash flow hedges, the Company received proceeds of $7.1 which will be amortized from accumulated other comprehensive income into earnings as a reduction of interest expense over the period which the hedged forecasted transaction affects earnings. At January 3, 2026, $5.4 was amortized from accumulated other comprehensive income into earnings as a reduction of interest expense with the remaining $1.7 to be amortized in 2028. The Company had no active interest rate swap agreements.\n\nForward Foreign Exchange Contracts\n\nThe Company had entered into forward contracts to economically hedge translational and transactional exposure associated with various business units whose local currency differs from the Company’s reporting currency. The Company’s forward contracts are not designated as hedging instruments for accounting purposes.\n\nAt January 3, 2026, the Company had zero forward foreign exchange contracts.\n\n78\n\n \n\nNet Investment Hedge\n\nThe Company utilizes foreign currency denominated debt to hedge currency exposure in foreign operations. The Company has designated €90.0 of borrowings on the revolving credit facility as a net investment hedge of a portion of the Company’s European operations. The carrying value of the euro denominated debt totaled $105.5 as of January 3, 2026 and is included in the Revolving line of credit line item in the Consolidated Balance Sheets. The loss on the net investment hedge recorded in AOCI as part of the currency translation adjustment was $8.6, net of tax, for the year ended January 3, 2026.\n\n10. CREDIT FACILITIES\n\nTotal non-revolving debt consists of the following:\n\n \n\n \n\nMaturity Date\n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\nLong-term non-revolving debt:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTerm loans with PNC Bank\n\n \n\nJun 2029\n\n \n\n$\n\n262.5\n\n \n\n \n\n$\n\n292.5\n\n \n\nTerm loans with Citibank\n\n \n\nJun 2026\n\n \n\n \n\n—\n\n \n\n \n\n \n\n7.8\n\n \n\nTotal non-revolving debt\n\n \n\n \n\n \n\n \n\n262.5\n\n \n\n \n\n \n\n300.3\n\n \n\nLess: current portion of long-term non-revolving debt\n\n \n\n \n\n5.4\n\n \n\n \n\n \n\n16.0\n\n \n\nLess: unamortized debt issuance costs\n\n \n\n \n\n \n\n \n\n0.9\n\n \n\n \n\n \n\n1.1\n\n \n\nTotal long-term non-revolving debt, net\n\n \n\n \n\n \n\n$\n\n256.2\n\n \n\n \n\n$\n\n283.2\n\n \n\nInformation on the Company's revolving credit facilities is as follows:\n\n \n\n \n\n \n\n \n\nBalance\n\n \n\n \n\nAvailable credit\n\n \n\n \n\n \n\nMaturity Date\n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\nRevolving line of credit with PNC Bank\n\n \n\nJun 2029\n\n \n\n$\n\n105.5\n\n \n\n \n\n$\n\n147.3\n\n \n\n \n\n$\n\n393.6\n\n \n\n \n\n$\n\n351.7\n\n \n\nRevolving line of credit with Citibank\n\n \n\nJun 2026\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n3.0\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n0.7\n\n \n\nFuture maturities of total debt are as follows:\n\nYear:\n\n \n\n \n\n \n\n2026\n\n \n\n$\n\n5.6\n\n \n\n2027\n\n \n\n \n\n22.5\n\n \n\n2028\n\n \n\n \n\n28.1\n\n \n\n2029\n\n \n\n \n\n311.8\n\n \n\nTotal\n\n \n\n$\n\n368.0\n\n \n\nTerm Loans and Line of Credit with PNC Bank\n\nThe Company has a credit agreement that includes a revolving line of credit and term loan credit facility with PNC Bank, National Association, as administrative agent, and the lenders party thereto.\n\nIn May 2023, the Company entered into an Incremental Facility Amendment with PNC Bank, National Association, as administrative agent, and various lenders party thereto that amended the Second Amended and Restated Credit Agreement, dated October 28, 2020 (the “Credit Agreement” and, together with the Incremental Facility Amendment, the “Amended Credit Agreement”). Pursuant to the Incremental Facility Amendment, the Company incurred a new senior secured term loan A-2 (the “Term Loan A-2”) in an aggregate principal amount of $150.0. The issue price of the Term Loan A-2 was equal to 100% of the aggregate principal amount thereof. The Term Loan A-2 bore interest at a rate based on either (i) the secured overnight financing rate (“SOFR”) (subject to a 0% floor) for the applicable interest period plus a 0.10% SOFR adjustment plus an applicable margin ranging between 1.50% and 2.75%, depending on the Company’s leverage ratio or (ii) a variable rate equal to the highest of (x) the overnight bank funding rate plus 0.50%, (y) the prime rate and (z) daily simple SOFR, plus a 0.10% SOFR adjustment plus 1.00%, plus an applicable margin ranging between 0.50% and 1.75%, depending on the Company’s leverage ratio. The Term Loan A-2 was guaranteed by each of the Company’s domestic subsidiaries and is secured by substantially all of the assets of the Company and the guarantors, on a pari passu basis with the other facilities under the Amended Credit Agreement. The Term Loan A-2 was due to mature on October 28, 2025, and was not subject to any mandatory repayments prior to such maturity date.\n\n79\n\n \n\nOn June 25, 2024, the Company amended and restated its credit agreement (the “Third Amended and Restated Credit Agreement”) with PNC Bank, National Association, as administrative agent, and the lenders party thereto. The amendment extended the debt maturity for five years and increased the Company’s revolving credit facility (the \"Revolving Credit Facility\") to $500.0, with the aggregate principal amount of the term loan credit facility (the “Term Loan Facility”) remaining at $300.0. The amendment also revised the accordion feature to permit an increase of up to an additional $400.0 . Borrowings under the line of credit bear interest at defined rates plus an applicable margin based on the Company’s leverage ratio. The total commitments under the Third Amended and Restated Credit Agreement are not to exceed $1.2 billion.\n\nThe Third Amended and Restated Credit Agreement states that borrowings under the Revolving Credit Facility that are U.S. dollar denominated and the Term Loan Facility can accrue interest at a variable rate equal to (i) the term secured overnight financing rate (“Term SOFR”) or (ii) the greater of (a) the overnight bank funding rate, plus 0.5%; (b) the prime rate, and (c) the daily simple SOFR rate plus 1.00% (the greatest of clauses (a) through (c), the “Base Rate”), plus a margin of between 1.25% and 2.25% for the term SOFR rate and between 0.25% and 1.25% for the Base Rate depending, in each case, on Helios’s net leverage ratio. Borrowings under the Revolving Credit Facility denominated in other currencies can accrue interest at the reference rate specified in the Third Amended and Restated Credit Agreement for such currency for each applicable interest period plus a margin of between 1.25% and 2.25% depending on Helios’s net leverage ratio. Swingline loans bear interest at the daily simple SOFR rate plus a margin of between 1.25% and 2.25% depending on Helios’s net leverage ratio.\n\nThe obligations under the Third Amended and Restated Credit Agreement are guaranteed by each of the Company’s domestic subsidiaries. The obligations under the Third Amended and Restated Credit Agreement are secured by substantially all of the assets of the Company and the guarantors.\n\nScheduled principal payments under the Term Loan Facility are payable in quarterly installments beginning on September 28, 2024 and continuing on the last day of each following fiscal quarter, beginning at $3.75 before increasing to $5.6 in June 2026 and $7.5 in June 2028. All remaining principal and unpaid accrued interest are due on the Term Loan Facility maturity date, which is June 25, 2029.\n\nThe revolving line of credit allows for borrowings up to an aggregate maximum principal amount of $500.0. To hedge currency exposure in foreign operations, €90.0 of the borrowings on the line of credit are denominated in euros. The borrowings have been designated as a net investment hedge, see additional information in Note 9. Borrowings under the line of credit bear interest at defined rates plus an applicable margin based on the Company's leverage ratio.\n\nThe Third Amended and Restated Credit Agreement requires the Company to comply with a number of restrictive covenants, including limitations on the Company’s ability to incur indebtedness; create or maintain liens on its property or assets; make investments, loans and advances; repurchase shares of its common stock; engage in acquisitions, mergers, joint ventures, consolidation and asset sales; and pay dividends and distributions (listing not all inclusive). The Third Amended and Restated Credit Agreement requires the Company to maintain a consolidated total net leverage ratio not to exceed 3.75 to 1.00, calculated as of the end of each fiscal quarter for the four fiscal quarters then ended. The maximum permitted total net leverage ratio is temporarily increased by 0.50 to 1.00 at the closing of a material permitted acquisition and for the following twelve months. The Third Amended and Restated Credit Agreement also requires the Company to maintain a minimum interest coverage ratio of no less than 3.00 to 1.00, calculated as of the end of each fiscal quarter for the four fiscal quarters then ended.\n\nAs of January 3, 2026, the Company was in compliance with all debt covenants related to the Amended and restated Credit Agreement.\n\nTerm Loans and Line of Credit with Citibank\n\nThe Company has an uncommitted fixed asset facility agreement (the “Fixed Asset Facility”), short-term revolving facility agreement (the “Working Capital Facility”) and term loan facility agreement (the “Shanghai Branch Term Loan Facility”) with Citibank (China) Co., Ltd. Shanghai Branch, as lender.\n\n80\n\n \n\nUnder the Fixed Asset Facility, the Company borrowed on a secured basis RMB 2.6. The proceeds of the loan were used for purchases of equipment. Outstanding borrowings under the Fixed Asset Facility accrue interest at a rate equal to the National Interbank Funding Center 1-year loan prime rate plus 1.5%. The loan matured in May 2023, at which time the remaining balance was paid in full.\n\nUnder the Working Capital Facility, the Company was permitted to from time to time borrow amounts on an unsecured revolving facility of up to a total of RMB 16.0. Proceeds were permitted to be used only for expenditures related to production at the Company’s facility located in Kunshan City, China. Outstanding borrowings under the Working Capital Facility accrued interest at a rate equal to the National Interbank Funding Center 1-year loan prime rate plus 0.5%. The loan matured in May 2023, at which time the remaining balance was paid in full.\n\nUnder the Shanghai Branch Term Loan Facility, the Company borrowed on a secured basis RMB 42.7. The proceeds were used to fund the acquisition of Joyonway. Outstanding borrowings under the Shanghai Branch Term Loan Facility accrued interest at a rate equal to the National Interbank Funding Center 1-year loan prime rate plus 1.5%. The loan matured in October 2024, at which time the remaining balance was paid in full.\n\nThe Company had a term loan facility agreement (the “Sydney Branch Term Loan Facility”) with Citibank, N.A., Sydney Branch, as lender. Under the Sydney Branch Term Loan Facility, the Company borrowed on a secured basis AUD 7.5. The proceeds were used to repay other existing debt. Outstanding borrowings under the Sydney Branch Term Loan Facility accrued interest at a rate equal to the Australian Bank Bill Swap (ABBS) Reference Rate plus 2.0%, to be repaid throughout the term of the loan with a final payment due date of December 2024.\n\nIn June 2023, the Sydney Branch Term Loan Facility was amended. The Company borrowed on a secured basis AUD 15.0 and used a portion of the proceeds to repay the remaining balance of the original term loan. Outstanding borrowings under the amended Sydney Branch Term Loan Facility accrued interest at a rate equal to the ABBS reference rate plus 2.8%, to be repaid throughout the term of the loan with a final payment due date in June 2026.\n\nConcurrent with the amendment to the Sydney Branch Term Loan Facility, the Company entered into a revolving line of credit agreement with Citibank, N.A., Sydney Branch, as lender (the “Sydney Branch RC Facility”). The Sydney Branch RC Facility allowed for borrowings up to an aggregate maximum principal amount of AUD 6.0 and matured in June 2026, with no mandatory repayments prior to such maturity date. The facility accrued interest at a rate equal to the ABBS reference rate plus 2.3%.\n\nBoth the Sydney Branch Term Loan Facility and Sydney Branch RC Facility were held by CFP, which was divested on September 27, 2025. On October 1, 2025, the Sydney Branch Term Loan Facility and Sydney Branch RC Facility were paid in full.\n\nThrough the Divestiture on September 27, 2025, the Company was in compliance with all debt covenants related to the Sydney Branch Term Loan Facility and Sydney Branch RC Facility.\n\nAs of January 3, 2026, the Company was in compliance with all debt covenants related to the term loans and line of credit with Citibank. Additionally, the secured loans with Citibank are secured by a parent guarantee.\n\nThe consolidated effective interest rate on the Company's credit agreements at January 3, 2026 was 5.0%. Consolidated interest expense recognized on the Company's credit agreements during the years ended January 3, 2026, December 28, 2024 and December 30, 2023 was $27.0, $36.9 and $37.6, respectively.\n\n11. DIVIDENDS TO SHAREHOLDERS\n\nThe Company declared dividends of $11.9, $12.0 and $11.9 to shareholders in 2025, 2024 and 2023, respectively.\n\n81\n\n \n\nThe Company declared the following regular quarterly dividends to shareholders during 2025, 2024 and 2023. The dividends were declared to shareholders of record approximately on the 5th day following the respective quarter end and paid approximately on the 20th day of each month following the date of declaration.\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nFirst quarter\n\n \n\n$\n\n0.09\n\n \n\n \n\n$\n\n0.09\n\n \n\n \n\n$\n\n0.09\n\n \n\nSecond quarter\n\n \n\n \n\n0.09\n\n \n\n \n\n \n\n0.09\n\n \n\n \n\n \n\n0.09\n\n \n\nThird quarter\n\n \n\n \n\n0.09\n\n \n\n \n\n \n\n0.09\n\n \n\n \n\n \n\n0.09\n\n \n\nFourth quarter\n\n \n\n \n\n0.09\n\n \n\n \n\n \n\n0.09\n\n \n\n \n\n \n\n0.09\n\n \n\n \n\n12. INCOME TAXES\n\nFor financial reporting purposes, income before income taxes includes the following components:\n\n \n\n \n\nFor the year ended\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\nDecember 30, 2023\n\n \n\nUnited States\n\n \n\n$\n\n17.2\n\n \n\n \n\n$\n\n10.8\n\n \n\n \n\n$\n\n12.8\n\n \n\nForeign\n\n \n\n \n\n45.2\n\n \n\n \n\n \n\n39.7\n\n \n\n \n\n \n\n36.4\n\n \n\nTotal\n\n \n\n$\n\n62.4\n\n \n\n \n\n$\n\n50.5\n\n \n\n \n\n$\n\n49.2\n\n \n\nThe components of the income tax provision (benefit) are as follows:\n\n \n\n \n\nFor the year ended\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\nDecember 30, 2023\n\n \n\nCurrent tax expense (benefit):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnited States\n\n \n\n$\n\n0.2\n\n \n\n \n\n$\n\n6.7\n\n \n\n \n\n$\n\n6.7\n\n \n\nState and local\n\n \n\n \n\n1.1\n\n \n\n \n\n \n\n0.5\n\n \n\n \n\n \n\n1.5\n\n \n\nForeign\n\n \n\n \n\n13.5\n\n \n\n \n\n \n\n12.9\n\n \n\n \n\n \n\n11.4\n\n \n\nTotal current\n\n \n\n \n\n14.8\n\n \n\n \n\n \n\n20.1\n\n \n\n \n\n \n\n19.6\n\n \n\nDeferred tax expense (benefit):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnited States\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(6.5\n\n)\n\n \n\n \n\n(3.6\n\n)\n\nState and local\n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1.4\n\n)\n\nForeign\n\n \n\n \n\n(1.0\n\n)\n\n \n\n \n\n(2.1\n\n)\n\n \n\n \n\n(2.9\n\n)\n\nTotal deferred\n\n \n\n \n\n(0.8\n\n)\n\n \n\n \n\n(8.6\n\n)\n\n \n\n \n\n(7.9\n\n)\n\nTotal income tax provision\n\n \n\n$\n\n14.0\n\n \n\n \n\n$\n\n11.5\n\n \n\n \n\n$\n\n11.7\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n82\n\n \n\nA reconciliation of the provision for the income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows:\n\n \n\n \n\n \n\nFor the year ended\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nPercent\n\n \n\nTax at U.S. statutory rate\n\n \n\n$\n\n13.1\n\n \n\n \n\n \n\n21.0\n\n%\n\nState and local income taxes(1)\n\n \n\n \n\n1.1\n\n \n\n \n\n \n\n1.7\n\n%\n\nForeign tax effects\n\n \n\n \n\n \n\n \n\n \n\n \n\n       Italy\n\n \n\n \n\n \n\n \n\n \n\n \n\n              Regional tax\n\n \n\n \n\n0.8\n\n \n\n \n\n \n\n1.3\n\n%\n\n              Other\n\n \n\n \n\n(0.4\n\n)\n\n \n\n \n\n-0.6\n\n%\n\n       China\n\n \n\n \n\n \n\n \n\n \n\n \n\n              Effect of rates different than statutory\n\n \n\n \n\n0.8\n\n \n\n \n\n \n\n1.2\n\n%\n\n              Other\n\n \n\n \n\n(0.6\n\n)\n\n \n\n \n\n-0.9\n\n%\n\n       Canada\n\n \n\n \n\n \n\n \n\n \n\n \n\n              Changes in valuation allowance\n\n \n\n \n\n0.9\n\n \n\n \n\n \n\n1.4\n\n%\n\n              Other\n\n \n\n \n\n(0.1\n\n)\n\n \n\n \n\n-0.1\n\n%\n\n       Other foreign jurisdictions\n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n0.5\n\n%\n\nEffects of cross-border tax laws\n\n \n\n \n\n \n\n \n\n \n\n \n\n       Foreign-derived intangible income\n\n \n\n \n\n(1.0\n\n)\n\n \n\n \n\n-1.5\n\n%\n\n       Foreign tax credits\n\n \n\n \n\n(1.2\n\n)\n\n \n\n \n\n-2.0\n\n%\n\n       Global intangible low-taxed Income\n\n \n\n \n\n1.4\n\n \n\n \n\n \n\n2.3\n\n%\n\n       Other\n\n \n\n \n\n0.9\n\n \n\n \n\n \n\n1.4\n\n%\n\nTax credits\n\n \n\n \n\n \n\n \n\n \n\n \n\n       Research and development tax credits\n\n \n\n \n\n(0.6\n\n)\n\n \n\n \n\n-1.0\n\n%\n\nChanges in valuation allowance\n\n \n\n \n\n(0.4\n\n)\n\n \n\n \n\n-0.7\n\n%\n\nNontaxable and nondeductible items\n\n \n\n \n\n \n\n \n\n \n\n \n\n       Executive compensation - 162(m)\n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n0.5\n\n%\n\n       Stock-based compensation\n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n0.4\n\n%\n\nChanges in unrecognized tax benefits\n\n \n\n \n\n(0.4\n\n)\n\n \n\n \n\n-0.6\n\n%\n\nOther\n\n \n\n \n\n \n\n \n\n \n\n \n\n       Gain on divestiture\n\n \n\n \n\n(1.1\n\n)\n\n \n\n \n\n-1.7\n\n%\n\n       Other adjustments\n\n \n\n \n\n(0.1\n\n)\n\n \n\n \n\n-0.2\n\n%\n\nEffective tax rate\n\n \n\n$\n\n14.0\n\n \n\n \n\n \n\n22.5\n\n%\n\n(1) The states and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include Florida and Oklahoma.\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n83\n\n \n\nA reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes before the adoption of ASU 2023-09 is as follows:\n\n \n\n \n\n \n\nFor the year ended\n\n \n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\nDecember 30, 2023\n\n \n\nU.S. federal taxes at statutory rate\n\n \n\n$\n\n10.6\n\n \n\n \n\n$\n\n10.3\n\n \n\n  Increase(decrease)\n\n \n\n \n\n \n\n \n\n \n\n \n\n    Foreign withholding tax\n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\n    Capitalized transaction costs\n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.2\n\n \n\n    Foreign income taxed at different rate\n\n \n\n \n\n1.5\n\n \n\n \n\n \n\n1.4\n\n \n\n    FDII deduction\n\n \n\n \n\n(1.1\n\n)\n\n \n\n \n\n(1.2\n\n)\n\n    Changes in estimates related to prior years including foreign\n\n \n\n \n\n0.8\n\n \n\n \n\n \n\n0.7\n\n \n\n    Goodwill impairment\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n    State and local taxes, net\n\n \n\n \n\n0.5\n\n \n\n \n\n \n\n(0.3\n\n)\n\n    Foreign tax expense\n\n \n\n \n\n0.7\n\n \n\n \n\n \n\n0.7\n\n \n\n    Current year tax credits\n\n \n\n \n\n(1.1\n\n)\n\n \n\n \n\n(1.0\n\n)\n\n    Foreign permanent items\n\n \n\n \n\n(0.5\n\n)\n\n \n\n \n\n(1.8\n\n)\n\n    Change in reserve\n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n0.2\n\n \n\n    Executive comp - 162m\n\n \n\n \n\n(0.3\n\n)\n\n \n\n \n\n1.3\n\n \n\n    Valuation allowance\n\n \n\n \n\n(0.7\n\n)\n\n \n\n \n\n0.7\n\n \n\n    Stock-based compensation\n\n \n\n \n\n0.5\n\n \n\n \n\n \n\n—\n\n \n\n    Other\n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n0.5\n\n \n\nIncome tax provision\n\n \n\n$\n\n11.5\n\n \n\n \n\n$\n\n11.7\n\n \n\n \n\n84\n\n \n\nDeferred income tax assets and liabilities are provided to reflect the future tax consequences of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of January 3, 2026 and December 28, 2024, are presented below:\n\n \n\n \n\n \n\n \n\nFor the year ended\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\nDeferred tax assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\n    Foreign tax benefit of US reserves\n\n \n\n$\n\n0.8\n\n \n\n \n\n$\n\n1.0\n\n \n\n    Net operating losses\n\n \n\n \n\n6.1\n\n \n\n \n\n \n\n6.2\n\n \n\n    Inventory\n\n \n\n \n\n2.8\n\n \n\n \n\n \n\n3.0\n\n \n\n    Intangible assets and goodwill DTA\n\n \n\n \n\n1.2\n\n \n\n \n\n \n\n0.7\n\n \n\n    Lease liability\n\n \n\n \n\n3.3\n\n \n\n \n\n \n\n3.9\n\n \n\n    Capitalized research expenditures\n\n \n\n \n\n4.3\n\n \n\n \n\n \n\n8.1\n\n \n\n    Interest expense limitation carryforward\n\n \n\n \n\n8.2\n\n \n\n \n\n \n\n8.6\n\n \n\n    Accrued compensation\n\n \n\n \n\n2.6\n\n \n\n \n\n \n\n3.0\n\n \n\n    Accrued expenses and other\n\n \n\n \n\n3.3\n\n \n\n \n\n \n\n3.8\n\n \n\n    Other comprehensive income -DTA\n\n \n\n \n\n1.2\n\n \n\n \n\n \n\n8.9\n\n \n\nTotal deferred tax assets\n\n \n\n \n\n33.8\n\n \n\n \n\n \n\n47.2\n\n \n\nLess: valuation allowance\n\n \n\n \n\n(3.2\n\n)\n\n \n\n \n\n(2.3\n\n)\n\nNet deferred tax assets\n\n \n\n \n\n30.6\n\n \n\n \n\n \n\n44.9\n\n \n\nDeferred tax liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation\n\n \n\n \n\n(3.6\n\n)\n\n \n\n \n\n(3.8\n\n)\n\nRight of use asset\n\n \n\n \n\n(3.1\n\n)\n\n \n\n \n\n(3.7\n\n)\n\nIntangible assets and goodwill\n\n \n\n \n\n(73.3\n\n)\n\n \n\n \n\n(76.3\n\n)\n\nOther deferred tax liabilities\n\n \n\n \n\n(0.7\n\n)\n\n \n\n \n\n(0.1\n\n)\n\nOther comprehensive income\n\n \n\n \n\n(0.4\n\n)\n\n \n\n \n\n—\n\n \n\nTotal deferred tax liabilities\n\n \n\n \n\n(81.1\n\n)\n\n \n\n \n\n(83.9\n\n)\n\nNet deferred tax liabilities\n\n \n\n$\n\n(50.5\n\n)\n\n \n\n$\n\n(39.0\n\n)\n\n \n\nAs of January 3, 2026, the Company has federal net operating loss (“NOL”) carryforwards of approximately $3.5 that will expire between 2031 and 2032, state net operating loss carryforwards of $38.1 that will expire between 2026 and 2045 and foreign net operating loss carryforwards of $12.0, of which $7.3 are indefinite-lived and the remaining will expire between 2027 and 2045. The federal and California NOLs were generated by Balboa Water Group during pre-acquisition tax years 2011-2019 and are subject to a 20-year carryforward period. As a result of the acquisition, both the federal and the California NOLs are subject to various limitations under Internal Revenue Code (“IRC”) Section 382. IRC Section 382 limits the use of NOLs to the extent there has been an ownership change of more than 50 percent. Despite these limitations, the Company expects to fully utilize the federal and California NOLs by 2027. The Company has foreign NOL carryforwards of $11.5 that it does not anticipate utilizing. Consequently, it has fully reserved against the deferred tax asset related to these NOLs.\n\nA valuation allowance to reduce the deferred tax assets reported is required if, based on the weight of the evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The valuation allowance for deferred tax assets as of January 3, 2026 and December 28, 2024 was $3.2 and $2.3, respectively. The portion of valuation allowance related to capital losses was $0.6 and foreign loss carryforward was $2.6 as of January 3, 2026. The net change in total valuation was a decrease of $0.9 in 2025 and was primarily related to the valuation allowance for Faster Canada net operating losses.\n\n85\n\n \n\nThe Company prescribes a recognition threshold and measurement attribute for an uncertain tax position taken or expected to be taken in a tax return.\n\nThe following is a roll-forward of the Company’s unrecognized tax benefits:\n\nUnrecognized tax benefits - January 1, 2023\n\n \n\n$\n\n7.9\n\n \n\nIncreases from positions taken during prior periods\n\n \n\n \n\n1.1\n\n \n\nIncreases from positions taken during current period\n\n \n\n \n\n0.2\n\n \n\nSettled positions\n\n \n\n \n\n(2.7\n\n)\n\nLapse of statute of limitations\n\n \n\n \n\n(0.4\n\n)\n\nUnrecognized tax benefits - December 30, 2023\n\n \n\n$\n\n6.1\n\n \n\nIncreases from positions taken during prior periods\n\n \n\n \n\n(0.5\n\n)\n\nIncreases from positions taken during current period\n\n \n\n \n\n0.2\n\n \n\nSettled positions\n\n \n\n \n\n—\n\n \n\nLapse of statute of limitations\n\n \n\n \n\n(0.4\n\n)\n\nUnrecognized tax benefits - December 28, 2024\n\n \n\n$\n\n5.4\n\n \n\nIncreases from positions taken during prior periods\n\n \n\n \n\n1.1\n\n \n\nIncreases from positions taken during current period\n\n \n\n \n\n0.1\n\n \n\nSettled positions\n\n \n\n \n\n—\n\n \n\nLapse of statute of limitations\n\n \n\n \n\n(0.8\n\n)\n\nUnrecognized tax benefits - January 3, 2026\n\n \n\n$\n\n5.8\n\n \n\n \n\nAt January 3, 2026, the Company had unrecognized tax benefits of $5.8 including accrued interest. If recognized, $0.6 of unrecognized tax benefits would reduce the effective tax rate in future periods. The Company recognizes interest and penalties related to income tax matters in income tax expense. Interest related to the unrecognized tax benefit has been recognized and included in income tax expense. Interest accrued as of January 3, 2026, is not considered material to the Company’s Consolidated Financial Statements.\n\nAs of January 3, 2026, the Company had approximately $52.6 million of undistributed earnings in certain non-U.S. subsidiaries for which no deferred income taxes have been recorded. These earnings are intended to be indefinitely reinvested in the Company’s international operations. Accordingly, no deferred tax liability has been recognized for potential foreign withholding or U.S. state income taxes that would apply upon distribution.\n\nThe Company remains subject to income tax examinations in the U.S. and various state and foreign jurisdictions for tax years 2020-2025. The Company believes it has adequately reserved for income taxes that could result from any audit adjustments.\n\nOn July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. While we expect certain provisions of the OBBBA to change the timing of cash payments in the current fiscal year and future periods, we do not currently expect the legislation to have a material impact on our consolidated financial statements.\n\n \n\n13. STOCK-BASED COMPENSATION\n\nEquity Incentive Plan\n\nThe Company’s 2023 Equity Incentive Plan (“2023 Plan”) provides for the grant of up to an aggregate of 1,000,000 shares of restricted stock, restricted stock units, stock options, stock appreciation rights, dividend or dividend equivalent rights, stock awards and other awards valued in whole or in part by reference to or otherwise based on the Company’s common stock, to officers, employees and directors of the Company. The 2023 Plan replaced the prior 2019 Equity Incentive Plan\n\n86\n\n \n\nand was approved by the Company's shareholders at the 2023 Annual Meeting. As of January 3, 2026, 643,687 shares remained available to be issued through the 2023 Plan.\n\nRestricted Stock Units\n\nThe Company grants restricted stock units (“RSUs”) to employees in connection with a long-term incentive plan and from time to time for special recognition. Awards with time-based vesting requirements primarily vest ratably over a three-year period. Awards with performance-based vesting requirements cliff vest after a three-year performance cycle and only after the achievement of certain performance criteria over that cycle. The number of shares ultimately issued for the performance-based units may vary from 0% to 200% of their target amount based on the achievement of defined performance targets. The officer transition in July 2024 resulted in the forfeiture of $3.8 unvested RSU's and the reversal of previously recognized expense related to the respective unvested RSU's. Compensation expense recognized for RSUs granted to employees totaled $2.8, $3.4 and $8.4 for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, respectively.\n\nEffective January 1, 2022, The Board approved a new Helios Technologies, Inc. Non-Employee Director Compensation Policy (the “Director Compensation Policy”), which revised the compensation for Non-Employee Directors. The Director Compensation Policy compensates Non-Employee Directors for their board service with cash awards and equity-based compensation through grants of RSUs, issued pursuant to the 2023 Plan, which vest over a one-year period. Directors were granted 25,117 and 23,031 RSUs during the years ended January 3, 2026 and December 28, 2024, respectively. The Company recognized director stock compensation expense on the RSUs of $1.0, $1.2, and $1.3 for the years ended January 3, 2026. December 28, 2024, December 30, 2023, respectively.\n\nThe following table summarizes RSU activity for the 2025 fiscal year:\n\n \n\n \n\nNumber of\nUnits\n(in thousands)\n\n \n\n \n\nWeighted Average\nGrant-Date\nFair Value per Share\n\n \n\nNonvested balance at December 28, 2024\n\n \n\n \n\n224\n\n \n\n \n\n$\n\n49.13\n\n \n\nGranted\n\n \n\n \n\n133\n\n \n\n \n\n \n\n40.14\n\n \n\nVested\n\n \n\n \n\n(141\n\n)\n\n \n\n \n\n49.28\n\n \n\nForfeited\n\n \n\n \n\n(32\n\n)\n\n \n\n \n\n45.54\n\n \n\nNonvested balance at January 3, 2026\n\n \n\n \n\n184\n\n \n\n \n\n$\n\n43.13\n\n \n\nIncluded in the nonvested balance at January 3, 2026, is 57,118 nonvested performance-based RSUs.\n\nThe grant date fair value of restricted stock and RSUs granted during the 2025, 2024 and 2023 fiscal years totaled $5.4, $13.6 and $13.3, respectively.\n\nThe Company had $4.6 of total unrecognized compensation cost related to the RSU awards as of January 3, 2026. That cost is expected to be recognized over a weighted average period of 1.5 years.\n\nStock Options\n\nIn 2022, the Company granted stock options with market-based vesting conditions to its officers. As of January 3, 2026, there were 5,334 unvested options and 2,666 vested unexercised options. The exercise price per share is $50.60, which is equal to the market price of Helios stock on the grant date. The options vest upon the later of the achievement of defined stock prices or two years from the grant date. The options have met their required service periods, which ranged from one to two years from the grant date. These options have a 10-year expiration. The grant date fair value of the options totaled $2.3 and was estimated using a Monte Carlo simulation.\n\nThe Company has also granted stock options with only time-based vesting conditions to its officers. As of January 3, 2026, there were 2,027 vested unexercised options. The exercise prices per share, which range from $35.04 to $55.03, are equal to the market price of Helios stock on the respective grant dates. The options vested ratably over a three-year period and have a 10-year expiration. The grant date fair value of the options totaled $0.6 and was estimated using a Black Scholes valuation model. In 2025, no options with time based vesting conditions were exercised.\n\n87\n\n \n\nIn September 2024, the Company granted additional stock options with only time-based vesting conditions to its officers and employees. These options have an exercise price per share of $40.13 which is equal to the market price of Helios stock on the grant date. The options vest three-years from the grant date and have a 10-year expiration. The grant date fair value of the options totaled $0.6 and was estimated using a Black Scholes valuation model. As of January 3, 2026, there are 31,160 unvested options.\n\nIn February 2025, the Company granted additional stock options with performance vesting conditions to its officers and certain employees. Performance-based vesting requirements cliff vest after a three-year performance cycle and only after the achievement of certain performance criteria over that cycle. The number of options ultimately issued for the performance-based units may vary from 0% to 225% of their target amount based on the achievement of defined performance targets. These options have an exercise price per share of $39.80 which is equal to the market price of Helios stock on the grant date. The options have a 10-year expiration. The grant date fair value of the options totaled $2.5 and was estimated using a Black Scholes valuation model. As of January 3, 2026, there are 114,699 unvested options.\n\nAt January 3, 2026, the Company had $1.8 of unrecognized compensation cost related to the options, which is expected to be recognized over a weighted average period of 2.1 years. The officer transition in July 2024 resulted in the forfeiture of $1.7 unvested options and the reversal of previously recognized expense related to the respective unvested options. Related to stock options, the Company recognized an expense of $0.8 for the year ended January 3, 2026 and a net benefit of $1.6 for the year ended December 28, 2024.\n\n \n\n \n\n \n\nNumber of\nShares\n(not rounded)\n\n \n\n \n\nWeighted Average\nExercise Price\n\n \n\nOutstanding at December 28, 2024\n\n \n\n \n\n46,529\n\n \n\n \n\n$\n\n42.29\n\n \n\nGranted\n\n \n\n \n\n131,933\n\n \n\n \n\n \n\n39.80\n\n \n\nExercised\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nForfeited/Expired\n\n \n\n \n\n(22,576\n\n)\n\n \n\n \n\n39.88\n\n \n\nOutstanding at January 3, 2026\n\n \n\n \n\n155,886\n\n \n\n \n\n \n\n40.53\n\n \n\nExercisable at January 3, 2026 (A)\n\n \n\n \n\n4,693\n\n \n\n \n\n \n\n49.67\n\n \n\n(A) Options expire between the years 2030-2032 with strike prices between $39.75 - $55.03.\n\nShare Repurchase Plan\n\nOn February 20, 2025, the Board approved a multi-year share repurchase program (the \"Share Repurchase Program\"), authorizing the Company to repurchase up to $100.0 of our outstanding common stock. The Company may purchase shares at management’s discretion from time to time in the open market, through privately negotiated transactions, through investment banking institutions or through other means in accordance with applicable federal securities laws, including Rule 10b5-1 trading plans. To the extent that the Company repurchases its shares, the amount and timing of any repurchases are subject to a variety of factors including, but not limited to, general business and market conditions, share price, regulatory and legal requirements and capital availability. The program does not obligate the Company to acquire a minimum number of shares. The share repurchase program will be funded with cash on hand and cash generated from operations. As of January 3, 2026, the Company has repurchased 330,000 shares under the Share Repurchase Program. As of January 3, 2026, the Company has $86.5 of remaining availability to repurchase outstanding common stock under its Share Repurchase Program.\n\nEmployee Stock Purchase Plans\n\nThe Company maintains an Employee Stock Purchase Plan (“ESPP”) in which U.S. employees are eligible to participate. Employees who choose to participate are granted an opportunity to purchase common stock at 85 percent of the market value on the first or last day of the quarterly purchase period, whichever is lower. Employees in the United Kingdom (“U.K.”), under a separate plan, are granted an opportunity to purchase the Company’s common stock at market value, on the first or last day of the quarterly purchase period, whichever is lower, with the Company issuing one additional free share of common stock for each six shares purchased by the employee under the plan.\n\n88\n\n \n\nEmployees purchased 59,524 shares at a weighted average price of $30.61, 48,261 shares at a weighted average price of $38.36 and 43,585 shares at a weighted average price of $46.52, under the ESPP and U.K. plan during the years ended January 3, 2026, December 28, 2024 and December 30, 2023, respectively. The Company recognized $0.6, $0.4 and $0.5 of compensation expense during the years ended January 3, 2026, December 28, 2024 and December 30, 2023, respectively. At January 3, 2026, 192,447 shares remained available to be issued through the ESPP and the U.K. plan.\n\n \n\n14. EMPLOYEE BENEFITS\n\nThe Company has a defined contribution retirement plan, under the provisions of Section 401(k) of the Internal Revenue Code, covering substantially all of its eligible U.S. employees. Employer contribution costs recognized under the retirement plan amounted to approximately $3.7, $4.2 and $3.6 during 2025, 2024 and 2023, respectively.\n\nThe Company provides supplemental pension benefits to its employees of foreign operations in addition to mandatory benefits included in local country payroll statutes. These benefits amounted to approximately $3.2, $3.1 and $3.0 during 2025, 2024 and 2023, respectively.\n\n15. ACCUMULATED OTHER COMPREHENSIVE LOSS\n\nThe following table presents changes in accumulated other comprehensive loss by component:\n\n \n\n \n\n \n\nUnrealized\nGains and\n(Losses) on Derivative\nInstruments\n\n \n\n \n\nForeign\nCurrency\nItems\n\n \n\n \n\nTotal\n\n \n\nBalance at December 31, 2022\n\n \n\n$\n\n8.5\n\n \n\n \n\n$\n\n(67.9\n\n)\n\n \n\n \n\n(59.4\n\n)\n\nOther comprehensive income (loss) before\n   reclassifications\n\n \n\n \n\n(9.8\n\n)\n\n \n\n \n\n11.1\n\n \n\n \n\n \n\n1.3\n\n \n\nAmounts reclassified from accumulated\n   other comprehensive loss, net of tax\n\n \n\n \n\n5.4\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n5.4\n\n \n\nTax effect\n\n \n\n \n\n0.8\n\n \n\n \n\n \n\n(3.5\n\n)\n\n \n\n \n\n(2.7\n\n)\n\nNet current period other comprehensive income (loss)\n\n \n\n \n\n(3.6\n\n)\n\n \n\n \n\n7.6\n\n \n\n \n\n \n\n4.0\n\n \n\nBalance at December 30, 2023\n\n \n\n$\n\n4.9\n\n \n\n \n\n$\n\n(60.3\n\n)\n\n \n\n$\n\n(55.4\n\n)\n\nOther comprehensive (loss) income before\n   reclassifications\n\n \n\n \n\n(2.3\n\n)\n\n \n\n \n\n(26.6\n\n)\n\n \n\n \n\n(28.9\n\n)\n\nAmounts reclassified from accumulated\n   other comprehensive loss, net of tax\n\n \n\n \n\n2.8\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n2.8\n\n \n\nTax effect\n\n \n\n \n\n(0.1\n\n)\n\n \n\n \n\n6.0\n\n \n\n \n\n \n\n5.9\n\n \n\nNet current period other comprehensive (loss) income\n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n(20.6\n\n)\n\n \n\n \n\n(20.2\n\n)\n\nBalance at December 28, 2024\n\n \n\n$\n\n5.3\n\n \n\n \n\n$\n\n(80.9\n\n)\n\n \n\n$\n\n(75.6\n\n)\n\nOther comprehensive income (loss) before\n   reclassifications\n\n \n\n \n\n(1.2\n\n)\n\n \n\n \n\n52.2\n\n \n\n \n\n \n\n51.0\n\n \n\nAmounts reclassified from accumulated\n   other comprehensive loss, net of tax\n\n \n\n \n\n(4.2\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(4.2\n\n)\n\nTax effect\n\n \n\n \n\n1.4\n\n \n\n \n\n \n\n(9.5\n\n)\n\n \n\n \n\n(8.1\n\n)\n\nNet current period other comprehensive income (loss)\n\n \n\n \n\n(4.0\n\n)\n\n \n\n \n\n42.7\n\n \n\n \n\n \n\n38.7\n\n \n\nBalance at January 3, 2026\n\n \n\n$\n\n1.3\n\n \n\n \n\n$\n\n(38.2\n\n)\n\n \n\n$\n\n(36.9\n\n)\n\n \n\n89\n\n \n\n \n\nThe following table presents reclassifications out of accumulated other comprehensive loss:\n\n \n\nDetails about Accumulated Other\n\n \n\nAffected Line Item in the Consolidated\n\n \n\nFor the year Ended\n\n \n\nComprehensive Income Components\n\n \n\nStatements of Operations\n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\nDecember 30, 2023\n\n \n\nDerivative financial instruments\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest rate swaps\n\n \n\nInterest expense, net\n\n \n\n$\n\n(5.4\n\n)\n\n \n\n$\n\n3.6\n\n \n\n \n\n$\n\n7.0\n\n \n\n \n\n \n\nTax benefit\n\n \n\n \n\n1.2\n\n \n\n \n\n \n\n(0.8\n\n)\n\n \n\n \n\n(1.6\n\n)\n\n \n\n \n\nNet of tax\n\n \n\n$\n\n(4.2\n\n)\n\n \n\n$\n\n2.8\n\n \n\n \n\n$\n\n5.4\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal reclassifications for the period\n\n \n\n \n\n \n\n$\n\n(4.2\n\n)\n\n \n\n$\n\n2.8\n\n \n\n \n\n$\n\n5.4\n\n \n\n \n\n16. SEGMENT REPORTING\n\nThe Company has two reportable segments: Hydraulics and Electronics. These segments are organized primarily based on the similar nature of products offered for sale, the types of customers served, and the methods of distribution, and are consistent with how the segments are managed, how resources are allocated and how information is used by the chief operating decision maker. Our Chief Executive Officer (CEO) serves as our Chief Operating Decision Maker (CODM) and is responsible for reviewing segment performance and making decisions regarding resource allocation. Our CODM evaluates each segment’s performance based on metrics such as net sales, segment gross profit and operating income, and other key financial indicators presented in the tables below in this section, as well as guides strategic decisions to align with company-wide goals. On a monthly basis, the CODM considers budget-to-actual variances for key measures when making decisions about allocating capital to the segments.\n\nThe Hydraulics segment designs and manufactures hydraulic components and systems used to transmit power and control force, speed and motion. There are two categories based on Hydraulic system architecture: MCT and FCT. MCT includes components used to control the flow and pressure of fluids in a system including valves, pumps, actuators, sensors, and filters. FCT includes components used to convey fluids and fluid power through a system and are designed to grant maximum flexibility of design and reliability. MCT includes manifold and cartridge valve technology and FCT includes quick release coupling solutions. MCT products provide functions important to a hydraulic system: to control rates and direction of fluid flow and to regulate and control pressures. FCT products allow users to connect and disconnect quickly from any hydraulic circuit without leakage and ensures high-performance under high temperature and pressure using one or multiple couplers. Engineered solutions that incorporate MCT and FCT technologies are also provided to machine users, manufacturers or designers to fulfill complete system design requirements including electro-hydraulic, remote control, electronic control and programmable logic controller systems.\n\nThe Electronics segment provides complete, fully-tailored display and control solutions for engines, engine-driven equipment, specialty vehicles, therapy baths and traditional and swim spas. This broad range of products is complemented by extensive application expertise and unparalleled depth of software, embedded programming, hardware and sustaining engineering teams. Product categories include traditional mechanical and electronic gauge instrumentation, plug and go CAN-based instruments, robust environmentally sealed controllers, pumps and jets, hydraulic controllers, engineered panels, process monitoring instrumentation, proprietary hardware and software, printed circuit board assemblies and wiring harnesses. Support services include design and manufacturing and after-market support through global distribution.\n\nThe Company evaluates performance and allocates resources based primarily on segment operating income. Certain costs were not allocated to the business segments as they are not used in evaluating the results of, or in allocating resources to the Company’s segments. These costs are presented in the Corporate and other line item. For the year ended January 3, 2026, these unallocated costs totaled $35.1 and include certain corporate costs not deemed to be allocable to either business segment of $1.4, amortization of acquisition-related intangible assets of $31.7, and $2.0 for activities related to the Divestiture. The accounting policies of the Company’s operating segments are the same as those used to prepare the accompanying Consolidated Financial Statements.\n\n90\n\n \n\nNet sales and operating profit of our business segments exclude intersegment sales, cost of sales and profit as these activities are eliminated in consolidation and thus are not included in management’s evaluation of performance of each segment.\n\n91\n\n \n\nThe following tables set forth our segment information of revenue, significant segment expenses, and operating income from operations for the last three years:\n\n \n\n \n\n \n\nAt and for the Year Ended January 3, 2026\n\n \n\n \n\n \n\nHydraulics\n\n \n\n \n\nElectronics\n\n \n\n \n\nUnallocated\nexpenses\n\n \n\n \n\nTotal\n\n \n\nNet sales from external customers\n\n \n\n$\n\n540.8\n\n \n\n \n\n$\n\n298.2\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n839.0\n\n \n\nReportable segment total cost of sales\n\n \n\n \n\n366.0\n\n \n\n \n\n \n\n201.8\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n567.8\n\n \n\nReportable segment gross profit\n\n \n\n$\n\n174.8\n\n \n\n \n\n$\n\n96.4\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n271.2\n\n \n\nSelling, engineering and administrative expenses (a)\n\n \n\n$\n\n60.5\n\n \n\n \n\n$\n\n43.5\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n104.0\n\n \n\nGoodwill Impairment\n\n \n\n \n\n—\n\n \n\n \n\n \n\n25.9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n25.9\n\n \n\nResearch and development (b)\n\n \n\n \n\n9.0\n\n \n\n \n\n \n\n10.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n19.1\n\n \n\nIndirect expenses (c)\n\n \n\n \n\n13.9\n\n \n\n \n\n \n\n7.2\n\n \n\n \n\n \n\n3.4\n\n \n\n \n\n \n\n24.5\n\n \n\nAmortization of intangible assets (d)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n31.7\n\n \n\n \n\n \n\n31.7\n\n \n\nOperating income\n\n \n\n$\n\n91.4\n\n \n\n \n\n$\n\n9.7\n\n \n\n \n\n$\n\n(35.1\n\n)\n\n \n\n$\n\n66.0\n\n \n\n(a) Selling, engineering, and administrative expenses primarily include selling, general, and administrative costs, information technology, professional services, and facility-related expenses directly incurred by the segments.\n\n(b) Research and development primarily includes engineering-related costs to create new products and to make improvements to products currently in use.\n\n(c) Indirect expenses represent corporate costs and shared expenses allocated to businesses.\n\n(d) Amortization of intangible assets includes those resulting from the acquisition of new businesses.\n\n \n\n \n\n \n\nAt and for the Year Ended December 28, 2024\n\n \n\n \n\n \n\nHydraulics\n\n \n\n \n\nElectronics\n\n \n\n \n\nUnallocated\nexpenses\n\n \n\n \n\nTotal\n\n \n\nNet sales from external customers\n\n \n\n$\n\n537.2\n\n \n\n \n\n$\n\n268.7\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n805.9\n\n \n\nReportable segment total cost of sales\n\n \n\n \n\n371.4\n\n \n\n \n\n \n\n182.2\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n553.6\n\n \n\nReportable segment gross profit\n\n \n\n$\n\n165.8\n\n \n\n \n\n$\n\n86.5\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n252.3\n\n \n\nSelling, engineering and administrative expenses (a)\n\n \n\n$\n\n59.2\n\n \n\n \n\n$\n\n39.1\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n98.3\n\n \n\nResearch and development (b)\n\n \n\n \n\n8.1\n\n \n\n \n\n \n\n12.0\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n20.1\n\n \n\nIndirect expenses (c)\n\n \n\n \n\n12.1\n\n \n\n \n\n \n\n5.8\n\n \n\n \n\n \n\n2.7\n\n \n\n \n\n \n\n20.6\n\n \n\nAmortization of intangible assets (d)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n31.5\n\n \n\n \n\n \n\n31.5\n\n \n\nOperating income\n\n \n\n$\n\n86.4\n\n \n\n \n\n$\n\n29.6\n\n \n\n \n\n$\n\n(34.2\n\n)\n\n \n\n$\n\n81.8\n\n \n\n(a) Selling, engineering, and administrative expenses primarily include selling, general, and administrative costs, information technology, professional services, and facility-related expenses directly incurred by the segments.\n\n(b) Research and development primarily includes engineering-related costs to create new products and to make improvements to products currently in use.\n\n(c) Indirect expenses represent corporate costs and shared expenses allocated to businesses.\n\n(d) Amortization of intangible assets includes those resulting from the acquisition of new businesses.\n\n \n\n \n\n \n\nAt and for the Year Ended December 30, 2023\n\n \n\n \n\n \n\nHydraulics\n\n \n\n \n\nElectronics\n\n \n\n \n\nUnallocated\nexpenses\n\n \n\n \n\nTotal\n\n \n\nNet sales from external customers\n\n \n\n$\n\n565.8\n\n \n\n \n\n$\n\n269.8\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n835.6\n\n \n\nReportable segment total cost of sales\n\n \n\n \n\n384.0\n\n \n\n \n\n \n\n189.9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n573.9\n\n \n\nReportable segment gross profit\n\n \n\n$\n\n181.8\n\n \n\n \n\n$\n\n79.9\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n261.7\n\n \n\nSelling, engineering and administrative expenses (a)\n\n \n\n$\n\n63.5\n\n \n\n \n\n$\n\n36.4\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n99.9\n\n \n\nResearch and development (b)\n\n \n\n \n\n8.7\n\n \n\n \n\n \n\n10.3\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n19.0\n\n \n\nIndirect expenses (c)\n\n \n\n \n\n16.3\n\n \n\n \n\n \n\n8.5\n\n \n\n \n\n \n\n5.2\n\n \n\n \n\n \n\n30.0\n\n \n\nAmortization of intangible assets (d)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n32.9\n\n \n\n \n\n \n\n32.9\n\n \n\nOperating income\n\n \n\n$\n\n93.3\n\n \n\n \n\n$\n\n24.7\n\n \n\n \n\n$\n\n(38.1\n\n)\n\n \n\n$\n\n79.9\n\n \n\n(a) Selling, engineering, and administrative expenses primarily include selling, general, and administrative costs, information technology, professional services, and facility-related expenses directly incurred by the segments.\n\n(b) Research and development primarily includes engineering-related costs to create new products and to make improvements to products currently in use.\n\n(c) Indirect expenses represent corporate costs and shared expenses allocated to businesses.\n\n(d) Amortization of intangible assets includes those resulting from the acquisition of new businesses.\n\n92\n\n \n\n \n\n \n\n \n\nFor the year ended\n\n \n\n \n\n \n\nJanuary 3, 2026\n\n \n\n \n\nDecember 28, 2024\n\n \n\n \n\nDecember 30, 2023\n\n \n\nCapital expenditures\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nHydraulics\n\n \n\n$\n\n19.4\n\n \n\n \n\n$\n\n19.2\n\n \n\n \n\n$\n\n25.7\n\n \n\nElectronics\n\n \n\n \n\n4.3\n\n \n\n \n\n \n\n7.8\n\n \n\n \n\n \n\n8.6\n\n \n\nTotal\n\n \n\n$\n\n23.7\n\n \n\n \n\n$\n\n27.0\n\n \n\n \n\n$\n\n34.3\n\n \n\nGoodwill\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nHydraulics\n\n \n\n$\n\n312.1\n\n \n\n \n\n$\n\n287.1\n\n \n\n \n\n$\n\n302.1\n\n \n\nElectronics\n\n \n\n \n\n186.0\n\n \n\n \n\n \n\n211.8\n\n \n\n \n\n \n\n211.9\n\n \n\nTotal\n\n \n\n$\n\n498.1\n\n \n\n \n\n$\n\n498.9\n\n \n\n \n\n$\n\n514.0\n\n \n\nTotal assets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nHydraulics\n\n \n\n$\n\n965.8\n\n \n\n \n\n$\n\n926.6\n\n \n\n \n\n$\n\n976.6\n\n \n\nElectronics\n\n \n\n \n\n538.2\n\n \n\n \n\n \n\n572.4\n\n \n\n \n\n \n\n600.0\n\n \n\nCorporate and Other\n\n \n\n \n\n10.5\n\n \n\n \n\n \n\n6.4\n\n \n\n \n\n \n\n13.8\n\n \n\nTotal\n\n \n\n$\n\n1,514.5\n\n \n\n \n\n$\n\n1,505.4\n\n \n\n \n\n$\n\n1,590.4\n\n \n\nDepreciation and amortization\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nHydraulics\n\n \n\n$\n\n21.6\n\n \n\n \n\n$\n\n22.8\n\n \n\n \n\n$\n\n22.0\n\n \n\nElectronics\n\n \n\n \n\n9.4\n\n \n\n \n\n \n\n9.1\n\n \n\n \n\n \n\n8.6\n\n \n\nCorporate and Other\n\n \n\n \n\n32.0\n\n \n\n \n\n \n\n31.9\n\n \n\n \n\n \n\n33.2\n\n \n\nTotal\n\n \n\n$\n\n63.0\n\n \n\n \n\n$\n\n63.8\n\n \n\n \n\n$\n\n63.8\n\n \n\n \n\nGeographic Region Information:\n\nNet sales are measured based on the geographic destination of sales. In 2025, sales to the U.S. represented approximately 44% of total net sales. Other countries with net sales concentration included China, 11%, Australia, 6%, Germany, 6%, and Mexico, 5% approximately. All other countries individually represented less than 5% of total net sales. Tangible long-lived assets are shown based on the physical location of the assets and primarily include net property, plant and equipment and exclude ROU assets. The following table presents financial information by region:\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nNet sales\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAmericas\n\n \n\n$\n\n452.2\n\n \n\n \n\n$\n\n435.0\n\n \n\n \n\n$\n\n460.9\n\n \n\nEMEA\n\n \n\n \n\n198.6\n\n \n\n \n\n \n\n183.8\n\n \n\n \n\n \n\n202.8\n\n \n\nAPAC\n\n \n\n \n\n188.2\n\n \n\n \n\n \n\n187.1\n\n \n\n \n\n \n\n171.9\n\n \n\nTotal\n\n \n\n$\n\n839.0\n\n \n\n \n\n$\n\n805.9\n\n \n\n \n\n$\n\n835.6\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTangible long-lived assets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAmericas\n\n \n\n$\n\n133.1\n\n \n\n \n\n$\n\n139.1\n\n \n\n \n\n$\n\n145.6\n\n \n\nEMEA\n\n \n\n \n\n42.4\n\n \n\n \n\n \n\n36.5\n\n \n\n \n\n \n\n37.1\n\n \n\nAPAC\n\n \n\n \n\n13.5\n\n \n\n \n\n \n\n17.9\n\n \n\n \n\n \n\n19.4\n\n \n\nTotal\n\n \n\n$\n\n189.0\n\n \n\n \n\n$\n\n193.5\n\n \n\n \n\n$\n\n202.1\n\n \n\n \n\n17. RELATED PARTY TRANSACTIONS\n\nThe Company purchases from, and sells inventory to, entities partially owned or managed by directors of Helios. For the years ended January 3, 2026, December 28, 2024 and December 30, 2023, inventory sales to the entities totaled $0.0, $2.3 and $3.0, respectively, and inventory and other purchases from the entities totaled $0.0, $0.1 and $0.0, respectively.\n\nAt January 3, 2026 and December 28, 2024, total amounts due from the entities totaled $0.0 and $0.0 respectively.\n\n93\n\n \n\n18. COMMITMENTS AND CONTINGENCIES\n\nBuilding Purchase Commitment\n\nThe Company is negotiating a lease to buy agreement for the purchase of a building for an approximate purchase price of €27.0. The agreement includes an option to purchase during the lease period with a commitment to purchase at the end of the 6-year lease period. The purchase price will be reduced by 60% of the lease payments made prior to purchase.\n\nLegal Proceedings\n\nThe Company is not a party to any legal proceedings other than routine litigation incidental to its business. In the opinion of management, the amount of ultimate liability with respect to these actions will not materially affect the results of operations, financial position or cash flows of the Company.\n\nInsurance\n\nThe Company accrues for certain health care benefit costs under a self-funded plan and records a liability for all unresolved claims at the anticipated cost to the Company at the end of the period based on management’s assessment. The Company believes it has adequate reserves for all self-insured claims.\n\nLetters of Credit\n\nIn the ordinary course of business, the Company is at times required to post letters of credit. The letters of credit are issued by financial institutions to guarantee our obligations to various parties. The Company was contingently liable for $1.0 of standby letters of credit with financial institutions as of January 3, 2026.\n\nGain Contingency\n\nIn the third quarter of 2023, the Company incurred significant losses due to a fire and a weather-related incident at one of its manufacturing facilities in Italy, resulting in a temporary shutdown and production disruption during recovery efforts. The affected operations have since been restored. At the end of 2024, we recognized a contingent gain of $3.8 million related to insurance reimbursements for business interruption losses at the impacted manufacturing site. The reimbursement payments have been collected in 2025.\n\n19. SUBSEQUENT EVENTS\n\nThe company evaluated subsequent events through the date the consolidated financial statements were issued. The Company did not identify any subsequent events that would require adjustment.\n\n \n\n94"}