What Helios Technologies, Inc. told the SEC could break it.

Helios is doubly exposed to trade policy. As a manufacturer of hydraulic (steel/aluminum) and electronics (semiconductor/PCB) components, it imports inputs and finished goods: in fiscal 2025 additional U.S. tariffs were imposed on goods from China, Mexico and Canada, steel and aluminum tariffs were increased, and various reciprocal tariffs were imposed — costs that flow directly into cost of sales (a contributor to a 230 bps operating-margin decline). On the export side, it ships from U.S. locations to 40+ countries, with total U.S. exports of ~$133.2M (15.9% of sales), exposing it to retaliatory tariffs. With ongoing tariff-rate, exemption and refund uncertainty, this is a specific, already-materialized trade-policy exposure affecting both input costs and export competitiveness.

“During the fiscal year 2025, additional tariffs were imposed on goods imported into the U.S. from China, Mexico and Canada. In addition, tariffs on steel and aluminum were increased and various reciprocal tariffs were also imposed. These costs are reflected in the cost of sales on our Consolidated Statements of Operations.”

Helios's corporate headquarters and core Hydraulics-segment operations are located in Sarasota, Florida — a hurricane-prone coastal market. In October 2024, Hurricane Milton disrupted those operations for eighteen shifts (cleanup/repair/labor costs of ~$1.2M for the Hydraulics segment), and the company received and expects no insurance reimbursement for the event. The concentration of HQ and a key segment's operations in coastal Florida is a recurring climate-physical/single-site exposure: future severe storms or flooding could again interrupt Hydraulics production with limited insurance recovery. A specific, demonstrated physical-climate facility exposure.

“In October 2024, the corporate headquarters and Hydraulics segment operations located in Sarasota, Florida were impacted by Hurricane Milton.”