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Helios Technologies, inc (HLIO) Q2 2021 Earnings Call Transcript

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HLIO earnings call for the period ending July 3, 2021.

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Helios Technologies, inc (HLIO)
Q2 2021 Earnings Call
Aug 10, 2021, 9:00 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Greetings. Welcome to the Helios Technologies' Second Quarter 2021 Financial Results Conference Call. [Operator Instructions]

I will now turn the conference over to your host, Tania Almond, Vice President of Investor Relations and Corporate Communications. You may begin.

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Tania Almond -- Vice President of Investor Relations and Corporate Communications

Thank you, operator, and good morning, everyone. Welcome to the Helios Technologies' second quarter 2021 financial results conference call.

We issued a press release yesterday afternoon. If you do not have that release, it is available on our website at hlio.com. You will also find slides there that will accompany our conversation today.

On the line with me are Josef Matosevic, our President and Chief Executive Officer; and Tricia Fulton, our Chief Financial Officer. They will spend the next several minutes reviewing our second quarter results, discussing our progress with our accelerated growth goals, reviewing our recent NEM acquisition, updating our outlook for the rest of 2021, and then we will open the call to your questions.

If you turn to Slide 2, you will find our Safe Harbor statement. As you may be aware, we will make some forward-looking statements during this presentation and also during the Q&A session. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ materially from where we are today. These risks and uncertainties and other factors will be provided in our 10-Q to be filed with the Securities and Exchange Commission. You can find these documents on our website or at sec.gov.

I'll also point out that during today's call, we will discuss some non-GAAP financial measures, which we believe are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided the reconciliations of comparable GAAP with non-GAAP measures in the tables that accompany today's slides.

And with that, it's now my pleasure to turn the call over to Josef.

Josef Matosevic -- President and Chief Executive Officer

Tania, thank you, and good morning, everyone.

Please turn to Slide 3, and I will summarize our highlights for Q2. Our team delivered another excellent quarter with strong sales and earnings, surpassing our expectations at every level. I want to thank the entire Helios family for all of their hard work and tireless dedication to our customers.

We have excellent operating momentum as we execute our augmented strategy and are on the right path to achieve our accelerated goal of $1 billion in revenue, while delivering top tier adjusted EBITDA margins by the end of 2023; that is two years earlier than our previous plans.

We had very strong double-digit organic growth, driven by serving our customers well and diversifying our market. In fact, we believe we are gaining market share as we provide industry best lead times. As we have been winning over the hearts and minds of our customers, we are focused on remaining flexible to meet their needs in this very volatile macro environment. In addition, we are bringing new products to the market in an accelerated pace to help make them more competitive as well. In total, we had 87% growth in the quarter with 37% organic growth.

In addition to driving the top line, we are gaining traction with our manufacturing strategy as well. This helped drive solid operating and EBITDA margin expansion. In fact, we posted the best margin results we have had in three years. We are implementing targeted pricing strategies to help offset the continuing supply chain headwinds that the industry is facing, including higher freight cost, raw material price increases and shortages of components. We are focused on cash generation with approximately $35 million of cash from operations in the quarter and 137% trailing 12 month free cash flow conversion. And through to our growth strategy, we can very quickly de-lever the balance sheet while self-funding our bolt-on acquisition.

We are making excellent progress with our acquisition strategy too. Our most recent success is NEM, which we closed in less than 30 days. NEM is an innovative hydraulics solution company providing customers material handling, construction, industrial vehicle and ag applications to its global OEM customer base. NEM is ideally located in northern Italy in a region which happens to be among the world's most innovative and technology-friendly area in the hydraulic industry. NEM enhances our electro-hydraulic product offering and provides us geographic expansion with greater global presence. The addition of their manufacturing and engineering capacity also provides us scale to address new markets. Finally, NEM has very strong brand recognition in hydraulics valve technology and their deep application expertise will enable us to grow our OEM business. We could not be more pleased to have welcomed the NEM team into the Helios family.

Given our outperformance, we are raising our full year outlook again, which we will review in more detail later in our remarks.

On Slides 4 and 5, I will touch on some financial highlights for the quarter, then Tricia will go into more detail during her prepared remarks. Our second quarter net sales grew to over $223 million, of which $60 million was from acquisition. Our adjusted EBITDA margin grew to 25.7% compared with last year, an increase of 310 basis points. Non-GAAP cash EPS was $1.20, an increase of 118% over last year, reflecting the better than expected performance of both segments. All in, the second quarter demonstrated strong execution by the entire company. I am incredibly proud of the Helios team and the excellent momentum we are building as we execute our augmented strategy to drive growth, generate cash and deliver top tier adjusted EBITDA margin.

I will now turn the call over to Tricia to review the financial results and outlook in a little bit more detail. Tricia?

Tricia L. Fulton -- Chief Financial Officer

Thank you, Josef, and good morning, everyone.

On Slides 6 and 7, I will review our second quarter consolidated results. Let me start by saying that we heard your request for greater transparency on acquired revenue and are pleased to give you what you need to better understand our strong performance. You will find in our press release a table that shows organic revenue by quarter and the contributions of acquisitions.

As Josef noted, we outperformed and delivered outstanding growth in the second quarter, supported by our focus on delivery lead times, our expanding sales channels, strong end markets, managing our operations efficiently, and our most recent transformative acquisition of Balboa, which exceeded our expectations again.

Net sales grew 9% sequentially and 87% over the prior year period, as we executed our growth plans and continue to take market share.

Second quarter gross profit of $82.2 million increased $6.8 million or 9% compared with the trailing quarter and $37.5 million or 84% for the prior year period from higher volumes. Gross margin of 36.8% was flat sequentially and year-over-year was impacted by improved fixed cost leverage on higher volumes, the difference from Balboa's margin profile, as well as supply chain challenges and increased material and freight cost. We are implementing multiple pricing strategies while also carefully managing the business to overcome the higher input costs. Manufacturing is performing well given the juggling act required to get product out the door. Our manufacturing operations are extremely flexible and agile in balancing available materials and staffing to ship products to our customers.

Adjusted EBITDA margin grew to 25.7%, up 310 basis points from the same period a year ago and up 60 basis points compared with the trailing quarter, reflecting our disciplined cost management efforts, productivity improvements and the contributions of Balboa.

Non-GAAP cash EPS improved $0.21 to $1.20 for the second quarter over the trailing quarter and was up $0.65 compared with the prior year period, reflecting strong demand across all industries and better-than-expected performance in the Balboa acquisition.

Our effective tax rate in the second quarter was 17.6%, which was lower than expected due to the settlement of a transfer pricing dispute.

Please turn to Slide 8 for a review of our Hydraulics segment second quarter operating results. Second quarter Hydraulics sales of $133 million were up 30% over the prior year period and benefited from broad-based improved demand in most of our end markets, showing growth in all geographic regions. Sales included a positive $6.7 million impact from foreign currency exchange rates.

Q2 Hydraulics gross profit benefited from higher volume, while margin increased 160 basis points to 38.3%, primarily driven by fixed cost leverage on higher sales and production labor efficiencies. These drivers were partially offset by rapidly increasing freight cost and efforts to provide deliveries on time to customers.

The 280 basis point operating margin expansion to 24.3% compared with the prior year period reflects operating leverage on higher volume as well as our disciplined execution on our manufacturing strategy.

Please turn to Slide 9 for a review of our Electronics segment second quarter operating results. Electronics sales were $90.4 million, up from $17.2 million in the year ago period, reflecting an increase of 426%. Notably, we had very strong organic growth in this segment year-over-year. We are seeing the positive impact of the new product rollouts in the recreational market that we have been discussing for some time. And by comparison, last year's second quarter was the most heavily impacted by the pandemic for this segment. Acquisitions contributed $60.2 million in revenues to our Electronics segment sales for the second quarter. In addition, Balboa continues to exceed our expectations. The capacity expansion investments we made have enabled Balboa to meet the ongoing growth in demand. We are very excited by the potential this acquisition has brought to our business.

Electronics segment gross profit of $31.2 million in Q2 increased with the acquisition and higher volumes. Electronics gross margin was 34.5% and reflects the impact of mix primarily related to the different margin profile of the Balboa acquisition as well as increased costs resulting from supply chain challenges to meet strong customer demand.

Operating income for the Electronics segment of $19.6 million increased $1.3 million or 7.1% from the trailing first quarter and was up from $900,000 in the prior year period. Operating margin improved 30 basis points sequentially to 21.7% and was up from 5.5% in the prior year period. The 2021 second quarter margin reflects the strong operating leverage inherent in this segment.

Please turn to Slide 10 for a review of our cash flow. Cash from operations was $34.5 million in the second quarter, up from $25.3 million in the prior year period. We are carefully balancing our working capital requirements with our efforts to provide timely deliveries to our customers amid significant demand. For the quarter, capex of $5.3 million represented about 2% of sales. We are tightening our expected capex range to $30 million to $32 million for 2021, which remains approximately 4% of sales for the full year based on our updated outlook. Free cash flow was a strong $29.1 million at the end of the second quarter, equating to a trailing 12 months' free cash flow conversion rate of 137%, as Josef mentioned. We are confident we have significant financial flexibility to further pursue our flywheel acquisition strategy.

Regarding our capital structure on Slide 11, we continue to rapidly de-lever our balance sheet with a pro forma net debt to adjusted EBITDA leverage ratio of 2.16 times. This continues to improve from the 3 times at the end of 2020. Total debt was $437 million at quarter end, reflecting total repayment of more than $15 million during the quarter. At quarter end, we had $161 million available on our revolving lines of credit, with total liquidity of $196 million. As a reminder, our financial strategy is to increase leverage for disciplined acquisitions and then generate the cash to quickly pay that down. Our capital priorities remain debt reduction, organic growth through new products and technologies, acquisitive growth, and distributions to shareholders. We have been a consistent dividend payer over the last 24 years. We recently paid our 99th sequential quarterly cash dividend on July 20th of this year.

Now let's turn to Slide 12, and I will discuss our outlook for the rest of 2021. Our guidance for 2021 assumes constant currency using quarter-end rates, as well as the assumption that our markets are not further impacted by the global pandemic. We are raising our revenue outlook for 2021 to the range of $800 million to $830 million, which implies an annual growth rate of approximately 56% at the midpoint of the range.

Adjusted EBITDA margin outlook is increasing 50 basis points to 23.5% to 24.5%. We continue to leverage our manufacturing efficiencies to offset stronger headwinds in the second half due to rising material costs. This implies we are raising our expectation for adjusted EBITDA dollars to the range of $188 million to $203 million or a 61% annual growth rate at the midpoint of the range. Additionally, we continue to invest through non-capex related items into our manufacturing strategy to reap the rewards of margin improvement over the long term.

We are being cautious as we look at the second half of 2021. While demand across all of our served markets continues to be robust, we recognize that the supply chain challenges could disrupt our ability to continue to deliver at the pace that we have done [Phonetic]. As a result, we are increasing the size of our guidance range from what was a $10 million range to now a $30 million range.

Relative to our margin guidance, we are reflecting inflated material and freight cost continuing through the second half of the year. The challenges of obtaining parts and supplies even as we build inventories as well as the difficulties in staffing and balancing production lines.

Interest expense outlook at current borrowing levels and rates remains unchanged and should be between $16 million to $18 million.

Due to a favorable shift in the mix of earnings into geographies with tax-advantaged economic incentives along with the favorable resolution of uncertain tax positions, the effective tax rate for 2021 is now expected to be in the range of 22% to 24%, down from 24% to 26%.

Depreciation is now expected to be between $22 million to $23 million, and amortization is now expected to be approximately $32 million to $33 million.

We are raising our non-GAAP cash EPS outlook to between $3.60 to $3.80 per share or a 65% increase over the prior year at the midpoint of the range.

The increase in our guidance for 2021 is driven by the strong end market demand we had in the first half of the year and expect to continue throughout the remainder of 2021. We are able to leverage our fixed cost base and maintain our strong margins even given the headwinds on the supply chains, material cost, and logistics.

With that, I will turn the call back to Josef for some final comments.

Josef Matosevic -- President and Chief Executive Officer

Thank you, Tricia.

Again, we are driving excellent performance and I am extremely proud of our team. We are stepping up to the many challenges we are facing while driving amazing execution of our strategic plan. We are uniting efforts across the organization to deliver outsized growth and are confident in our ability to meet our long-term accelerated financial goals.

With that, let's open up the lines for Q&A, please.

Questions and Answers:

Operator

[Operator Instructions] And our first question is from Mig Dobre with Robert W. Baird & Company. Please proceed with your question.

Mircea Dobre -- Robert W. Baird & Co. -- Analyst

Good morning, everyone. Thank you for taking the question. I figured -- maybe I would start with your updated guidance, your top-line guidance. So, your initial guidance had about a $10 million range, the range has actually widened to $30 million in your updated guidance, and at least to me, it's a little bit counterintuitive since we're only dealing with six months left in the year. So, I'm kind of curious as to what's embedded in here in terms of the high end versus the low end? And I'm also curious, when I am thinking of the midpoint -- the $70 million increase at the midpoint, maybe what contributed that, if you can bucket it by the various segments or business line?

Tricia L. Fulton -- Chief Financial Officer

Hi, Mig. Yeah, thanks for the question. So, in the guidance, we did expand the range quite a bit, which we agree with you is a little counterintuitive at this point. But given what we're seeing in the market, we thought that we needed to give ourselves a little bit of room. Certainly on the high end, it shows the strong demand that we have in all of our end markets, and all of our businesses. And we're very pleased with where we are on order intake and the demand levels and where the market seems to be going. But because of the supply chain challenges that we're seeing across the businesses, but probably a little bit more on the Electronics side, we felt that we needed to give ourselves a little bit of room in the event that we aren't able to get the parts and that we need to turn around the shipments in the third and fourth quarter.

And I think it is important to remember that the demand is there. It really just is a supply chain constraint problem that we're dealing with. Our supply chain teams are doing an excellent job of getting product in the door, but it is hand to mouth a lot on the parts for what we need to make in any given day. And we're happy with where we are, but we don't see those clearing up before the end of the year. There's some report that we may see some of them still into '22. I think we have a pretty good handle on it. But there is still logistics issues and a few supply chain issues that are holding us back from being able to say that our top line is going to be at the high end of that range for sure.

Mircea Dobre -- Robert W. Baird & Co. -- Analyst

Yeah, that's helpful. And that makes a lot of sense. Are there any areas of your business where you're seeing more of a constraint? I'm thinking Electronics in particular, I'm wondering. And can you also help us out with any of the buckets as to that $70 million of revenue increase, was that mostly Electronics or was that Hydraulics as well? That would be helpful. Thanks.

Tricia L. Fulton -- Chief Financial Officer

It really was across the board Hydraulics and Electronics. The split between the two segments for the first half is at the higher end of the range, what we anticipate that split will be for the second half as well. Where we're seeing supply chain constraints is across all the businesses, but specifically in Electronics, I think we've had probably more challenges than on the Electronic or on the Hydraulics side. Some of it's components, some of it's thing getting tied up in ports, we had shipments get lost in transit that were then found. But we aren't able to get those products in time to make the product according to the schedule that the customer wants from a delivery perspective. So while we're seeing all of those things happen on the Electronic side, I don't think we're any different than anyone else in that regard. And we're really pushing the supply chain teams to come up with creative ways to get us the products that we need. We're going out to the broker market when we need to.

On the Hydraulics side, I think the constraints, some of it's material cost. Steel is going up, so that have some affect. The constraint though are really that our suppliers are very busy because all end markets right now, whether it's ours or in other industries, are very strong. So, the suppliers are very busy as well.

Mircea Dobre -- Robert W. Baird & Co. -- Analyst

I see, OK. And last question from me is on Balboa, where just the revenue traction that this business has had this year has been considerably higher than, I think, what we expected or modeled. And I'm sort of curious here, in terms of what's driving the growth and how sustainable do you see this be? And is there any seasonality here to be aware of back half of the year relative to the first half? Thank you.

Josef Matosevic -- President and Chief Executive Officer

Good morning, Mig. Look, during our Investor Meeting here a few weeks ago, we pretty much laid out exactly what the path will look like for each of our businesses. But in particular to Balboa, certainly the large piece comes from pent-up demand, but then you also heard us saying that we want to diversify into other markets. And with the acquisition of BJN coming to our family here, they work collaboratively with innovation to develop the next-generation products, and really have a good, better, best strategy and enter other markets. We're starting to see slowly, but surely some traction. So, to summarize your question, clearly backlog and pent-up demand combined with some diversification and new end markets and new customers.

Mircea Dobre -- Robert W. Baird & Co. -- Analyst

And on the seasonality question, Josef?

Josef Matosevic -- President and Chief Executive Officer

Yeah. Look, as far as we can see right now, we have everything baked into our guidance for the remainder of the year. We continue to see a very strong order pattern. As we honestly get further educated with that business, we'll communicate accordingly. But we don't see that seasonality, quite honestly, at all right now.

Mircea Dobre -- Robert W. Baird & Co. -- Analyst

Okay. Thank you for taking the question.

Josef Matosevic -- President and Chief Executive Officer

Thank you.

Tricia L. Fulton -- Chief Financial Officer

Thanks.

Operator

And our next question is from Nathan Jones with Stifel. Please proceed with your question.

Adam Farley -- Stifel -- Analyst

Yeah, good morning. This is Adam Farley on for Nathan.

Tricia L. Fulton -- Chief Financial Officer

Hi, Adam.

Adam Farley -- Stifel -- Analyst

As you noted a couple of times that you're picking up market share by providing best-in-class lead times. Could you describe how you're able to maintain that advantage? And how does Helios believe it is generating better lead times than the peers and competitors?

Josef Matosevic -- President and Chief Executive Officer

Yeah. Look -- and great question actually. On the Hydraulics side, north of a year ago, we took an effort here to clearly understand our investment strategy and manufacturing and what were the bottlenecks, if it's operations or supply chain or material flow, and we really heavily invested not only in improving the processes, but also bringing some additional talent in. And we knew that's an area that we can separate ourselves from the competition. So, the investment part following by talent and education and lining up the supply base with our core competencies, and really having a strategy that collaborative working through this process got us to a point where we have folks actually at our suppliers stationed on a weekly basis. We invested in that area. We knew we need to get better in that area. And we are holding extremely strong lead times. And we have also put ourselves in a position to clearly understand where our customers are going, and what will require for us to maintain our market share and gain market share. But the notion of the strategy is the investment into manufacturing operations drove that result.

Adam Farley -- Stifel -- Analyst

Okay. And then switching over to price cost. I know some contracts on the price side can be fixed especially in Electronics. So, how is Helios able to negotiate any type of pricing for raw material inflation? And do you have any price increases planned or announced for the second half? Thanks.

Tricia L. Fulton -- Chief Financial Officer

We do have pricing for the back half in all of the businesses to some degree. And like you said, those end up being a negotiation, especially on the fixed price contracts. But we've been with many of our customers for so long that we have been able to go to them and get pricing even on the fixed price contracts, related specifically to the material cost increases that we're seeing. Some of those go through as a price increase, and some go through as a material surcharge, some are temporary, some are permanent. But certainly we have been able to have those tough discussions and get the pricing or surcharges through, so that we can try to cover some of these increased material cost in the back half of the year. And I think that's important to maintaining our strong margins.

Adam Farley -- Stifel -- Analyst

Okay. Thanks for taking my questions.

Tricia L. Fulton -- Chief Financial Officer

Thank you.

Operator

And our next question is from Jon Braatz with Kansas City Capital. Please proceed with your question.

Jon Braatz -- Kansas City Capital -- Analyst

Good morning, everyone.

Tricia L. Fulton -- Chief Financial Officer

Jon, good morning.

Josef Matosevic -- President and Chief Executive Officer

Good morning, Jon.

Jon Braatz -- Kansas City Capital -- Analyst

Tricia, in your commentary, you talked a little bit about the new platforms contributing to revenues at -- in the Electronics segment, and we've talked about that for the last six months, nine months. How do you see that unfolding over the next six to nine months? Are we just sort of seeing the tip of the iceberg in terms of the new platform contributions?

Tricia L. Fulton -- Chief Financial Officer

Yes, at this point, we are just seeing the beginning of those rollouts. In the first year of any rollout, we clearly haven't reached a maturity level on that product. We roll them out slowly, make sure that we're meeting the commitments to our customers. And over time, those become very significant, especially on the Electronics side, we've seen that with Enovation specifically because they have model year rollouts related to their recreational vehicles. And we have had a couple that have started rolling out this year, but we have more to come in the back half of the year. And we're making sure that we have the parts in place to be able to make those products, that's been a key focus of the supply chain team. And I think that we're ready and ready to go on those, and we'll see them rollout. But for the year, the total percent of revenue that they're adding is not high, it's low single digit. But certainly as those mature, it will become a bigger contributor to revenue.

Jon Braatz -- Kansas City Capital -- Analyst

How many different platforms do you see over the next couple quarters?

Tricia L. Fulton -- Chief Financial Officer

Over the next couple of quarters, we have significant roll -- what we would consider significant rollouts, probably three to four...

Jon Braatz -- Kansas City Capital -- Analyst

Okay.

Tricia L. Fulton -- Chief Financial Officer

For the rest of this year. We do have others that are smaller and they're important as well and important to get them right. But from a revenue perspective, they have a little less impact.

Jon Braatz -- Kansas City Capital -- Analyst

Okay. Josef, on the improved lead times, I would take that the improved lead times allowed you to take share from others, because you were able to deliver the product. As the lead times improve maybe for your competitors, do you think you'll be able to retain that business, that new market share?

Josef Matosevic -- President and Chief Executive Officer

Yeah, certainly, Jon. Look, I mean, we know, especially on the Hydraulics side, most of our products is shift to distribution. So, we know our customers extremely well. And we believe currently with anywhere between six to seven week lead time, we clearly have the upper hand. And we feel comfortable we will maintain those lead times, and in some cases, improve those lead times too.

On the OEM side, we also had very strong lead times, if it's on the faster business or our Electronics business. And the differentiation there is Jon, once you get picked [Phonetic] in into that projects, you are in for the next three to five years, it's very difficult to get out. So, we really invested wisely as a company into that area knowing that we could have a differentiation there and also protect our margins. So, the answer to your question, we feel comfortable that we will maintain those lead times, but also we have other areas, that we are working on that will further separate us from the competition.

Jon Braatz -- Kansas City Capital -- Analyst

Okay. Josef, thank you very much.

Josef Matosevic -- President and Chief Executive Officer

You bet. Thank you.

Operator

[Operator Instructions] Our next question is from Jeff Hammond with KeyBanc Capital Markets. Please proceed with your question.

David Tarantino -- KeyBanc Capital Markets -- Analyst

Hey, good morning. This is David Tarantino on for Jeff.

Josef Matosevic -- President and Chief Executive Officer

Good morning, Dave.

Tricia L. Fulton -- Chief Financial Officer

Hello.

David Tarantino -- KeyBanc Capital Markets -- Analyst

So, just starting out, you had pretty healthy incrementals of about 40% in the quarter despite all the headwinds out there, but guidance implies a modest step down in the second half. Could you just go to the puts and takes in this outlook and how are the headwinds out there and seasonality of the business informs guidance?

Tricia L. Fulton -- Chief Financial Officer

Yeah. I think it's difficult to say that there is seasonality this year to be quite honest. With all of the demand in the markets that we're seeing across our end markets, I'm not sure that it's a normal seasonality year. And certainly we had good incrementals, especially with what we saw on the supply chain side. In the back half of the year, there are a couple of things at play. We have less work days in the back half of the year. We're seeing some supply chain challenges that we believe are probably going to keep us from being able to perform at the level that we did at Q2. But the positive part of that again is really the demand that we're seeing in the end markets and the growth that we expect to continue in those end markets. But it really is driven primarily by supply chain when you look at what the expectations are from a margin perspective and a revenue perspective in the back half of the year.

David Tarantino -- KeyBanc Capital Markets -- Analyst

Great. Thank you. And then we -- you talked about it a little bit, but could you quantify the amount of price you took in Q2? And what you're expecting for price costs for the rest of the year? Thank you.

Tricia L. Fulton -- Chief Financial Officer

The price -- we did put through a few selective price increases on specific products in the first half of the year that really helped cover some of our costs that we were seeing on the cost increase side. But it's low single digit millions for the year to date pricing impact, so it's not a significant contributor to the first half of the year. It will likely be a larger contributor in the back half, because we have a few price increases that are not rolling through until August, September, October timeframe, so there will be some impact there. But it really -- those price increases really are put through more to help us offset the material cost increases and supply chain constraint issues that we're having.

David Tarantino -- KeyBanc Capital Markets -- Analyst

Great. Thank you.

Tricia L. Fulton -- Chief Financial Officer

Thank you.

Operator

And we have reached the end of the question-and-answer session. I'll now turn the call over to Josef Matosevic for closing remarks.

Josef Matosevic -- President and Chief Executive Officer

Thank you, operator. Well, thank you much for joining us today. We appreciate all of your interest in Helios and really look forward to updating all of you on our third quarter in November. We remain super confident in our ability to continue to grow and deliver value for all of our stakeholders. Have a great day and stay healthy.

Tricia L. Fulton -- Chief Financial Officer

Thank you.

Operator

[Operator Closing Remarks]

Duration: 38 minutes

Call participants:

Tania Almond -- Vice President of Investor Relations and Corporate Communications

Josef Matosevic -- President and Chief Executive Officer

Tricia L. Fulton -- Chief Financial Officer

Mircea Dobre -- Robert W. Baird & Co. -- Analyst

Adam Farley -- Stifel -- Analyst

Jon Braatz -- Kansas City Capital -- Analyst

David Tarantino -- KeyBanc Capital Markets -- Analyst

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