HELIOS TECHNOLOGIES, INC. (HLIO) Business

ITEM 1. BUSINESS

Our Business

Overview

Helios Technologies, Inc. (“Helios,” the “Company,” “we,” “us” or “our”), and 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, industrial, mobile, energy, recreational vehicles, marine, aerospace, and health and wellness.

We operate under two business segments: Hydraulics and Electronics. The Hydraulics segment designs and manufactures hydraulic motion control and fluid conveyance technology products, including cartridge valves, manifolds and quick release couplings as well as engineers complete hydraulic system solutions. The Electronics segment designs and manufactures customized electronic controls systems, displays, wire harnesses, and software solutions for a variety of end markets.

Our Shared Values

At Helios, our shared values define how we show up for our customers, our colleagues, and our shareholders every day. They are the foundation of our culture, the lens through which we make decisions, and the standard by which we measure success. The following values guide us in how we work, how we lead, and how we create long-term value together.

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Honesty

We commit fully to truth and transparency. Our actions build trust, strengthen collaboration, and create clarity in every relationship we touch.

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Excellence

We pursue mastery in all that we do, driving relentlessly for higher quality, performance, and standards that set us apart in our industries.

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Learning

We grow through experience. By harnessing both successes and failures, we continuously expand our knowledge and advance collective capabilities.

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Innovation

We foster a culture of creativity and imagination, empowering bold thinking that opens new paths and delivers better solutions for the future.

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Ownership

We take responsibility and hold ourselves accountable—for our actions, our outcomes, and our commitments to one another.

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Solutions

We focus on solving problems and conquering challenges, delivering meaningful results that create impactful outcomes for our customers and communities.

Together, these shared values (pictured below) are more than words—they are commitments that shape our culture, fuel our performance, and unite us in building a stronger Helios for the future.

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Our Vision

Our vision is to be the world’s most trusted and preferred provider of mission-critical technologies that ensure safety and reliability through seamless connectivity and intelligent control.

Our Mission

Our Mission is to deliver innovative, premium-quality hydraulic and electronic solutions through our trusted global brands enabling our customers to keep their products operating efficiently and with confidence.

Our Strategy

At Helios Technologies, we strive to be a diversified, customer-centric global enterprise distinguished by innovation, operational speed, and a high-performance culture. We will aim to leverage these competitive advantages to deliver unmatched customer value and top-tier financial returns.

We are a global operating company and have enhanced our Helios Business System (“HBS”) to establish our operating rhythm to drive accountability across the organization. We utilize a strategic planning and execution methodology to ensure the organization's long-term vision is translated into clear priorities, aligned actions, and measurable results at every level of the Company. The methodology includes an annual strategic planning review from which both short term and long term goals are established. Those goals are cascaded down to operational teams for tactical execution. Progress against goals is formally reviewed on a regular basis.

We are well positioned due to our focus and execution on paying down debt over the last three years to invest in organic sales and operational efficiency initiatives, with sufficient liquidity to explore future acquisition opportunities as a way to supplement our organic growth. Our approach to making future acquisitions has evolved from lessons we have learned as an organization from our past acquisitions.

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The objective of our acquisition strategy going forward is to enhance Helios by:

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Adding new technologies and capabilities that complement our current offerings;

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Filling in white spaces in our geographic presence;

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Bringing new customers, and increasing customer diversity;

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Adding new or adjacent markets;

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Meeting growth, profitability, and return goals; and

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Leveraging operational synergies to drive earnings accretion.

To support the execution of our acquisition strategy, our financial focus is oriented around delivering industry leading operating margins, a strong balance sheet and sufficient financial flexibility to support both organic and acquisitive growth while maintaining our history of returning capital to shareholders through dividends and share repurchases.

Our internal key performance indicators are aligned with our strategy to ensure our short-term actions will deliver long-term expectations.

Our culture of innovation is at the core of our business. We have over 300 engineers in support of product innovation, in addition to technical support and customer service resources. We believe our product innovation will aid organic growth and fill the expected demand resulting from the megatrends of automation, electrification, digitalization, energy efficiency, productivity and artificial intelligence. All growth initiatives are intended to leverage our strong foundation and drive incremental margins to enhance profitability while preserving Helios' history of financial strength and stability.

Acquisitions

Over the last three years under our strategy, we have added to our portfolio of niche technologies through acquisitions:

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In January 2023, we completed the acquisition of Schultes Precision Manufacturing, Inc. (“Schultes”). 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. Schultes provided additional manufacturing know-how and expanded our business into new end markets with attractive secular tailwinds.

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In May 2023, we completed the acquisition of i3 Product Development (“i3PD”). i3PD is a custom engineering services firm, with engineers specializing in electronics, mechanical, industrial, embedded and software engineering. i3PD specializes in working to transform customers' ideas into industrial design solutions through rapid prototyping and creating 3D models in-house. Their 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.

In 2024 and 2025, the Company continued to explore and evaluate potential acquisitions but no acquisitions were executed.

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Divestitures

On 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 in China, South Korea, and India.

The preliminary sales price for the divestiture was approximately $76.7 AUD in cash including adjustments for estimated closing date net working capital and cash on hand, consisting of approximately $60.5 AUD in cash to the Company and approximately $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.

Business Segments

Our Hydraulics segment includes products sold under the Sun Hydraulics ("Sun"), Faster, NEM, Taimi, Daman and Schultes brands. The Electronics segment includes products sold under the Enovation Controls, Murphy, Zero Off, HCT, Balboa Water Group, Joyonway, i3PD and Cygnus Reach brands. Financial information about our business segments is presented in Note 16 of the Notes to the Consolidated Financial Statements.

Hydraulics

We classify the key technologies within our Hydraulics segment into two categories based on Hydraulic system architecture: motion control technology (“MCT”) and fluid conveyance technology (“FCT”). MCT includes components used to control the flow and pressure of fluids in a system. 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 our Sun 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. MCT also includes a range of common cavity solutions with our Sun and NEM brands as well as parts in body ("PiB") solutions from NEM.

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, making them equally suitable for both industrial and mobile applications.

Hydraulic systems are increasingly taking signals from on-board electronic control systems, making it necessary for hydraulic products to be capable of digital communication. In response to this, we have aggressively expanded our MCT offering of electrically actuated cartridge valves that compliment our significant technology offering in PiB and directional control valves.

Additionally, we continue to invest in innovative and disruptive technologies. Our MCT ecoline™ family is a collection of products focused on increasing the energy efficiency of hydraulic systems. Also, our ENERGEN™ product line is the first hydraulic cartridge valve with the capability to convert hydraulic flow into electrical power.

Our FCT products transfer hydraulic fluid from one point to another. FCT includes our quick release couplings 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. Quick connection of multiple hydraulic lines can be accomplished through the use of our casting solution or our signature MultiFaster® product line. In particular, the simultaneous connection of several lines granted by our Multifaster® is an important feature in many applications and allows for dramatic reduction of connection time, even when the system is under pressure, and completely removes the risk of incorrect connections and related hazards for the equipment and the operators. We design, engineer and distribute hydraulic coupling solutions primarily in the agriculture, construction equipment and industrial markets.

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We also provide industrial multi-connections, mostly automatically actuated, in fields like steel mills, automotive engine test beds, aeronautics and plastic injection. These multi-connections are typically custom designed for a particular application and handle not just hydraulic but also various process fluids and electrical signals of low, medium and high voltage. In addition, through our Taimi brand we have a swivel hose line accessory with innovative technology granting superior life and performance, effectively expanding hose life by up to ten times in heavy duty applications where hose bending and torsion under severe pressure conditions are normal. Applications for this product exist in mining, forestry equipment and high-end sailing solutions.

Many of the current Faster, Taimi, Sun Hydraulics and NEM brand products can be easily combined to form an integrated hydraulic circuit, or system solution, of high technological content.

These circuits and systems provide engineered solutions that combine manifolds, MCT and FCT technology and allow users enhanced control of existing equipment, providing a competitive advantage and opportunities for higher margin. The systems we design and manufacture:

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may include electro-hydraulic, remote, and electronic machine control and human-machine interface displays;

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are highly efficient, reducing energy costs;

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increase and optimize productivity;

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introduce safer operating procedures;

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are smaller in size than competitive products;

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allow for automation of existing equipment;

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allow for ease of maintenance and remote diagnostics and troubleshooting; and

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enable data collection about equipment performance.

Electronics

We are one of the leaders in custom-tailored solutions for many industrial and commercial applications, including engines, engine-driven equipment and specialty vehicles with a broad range of rugged and reliable instruments such as displays, controls and instrumentation products through our Enovation Controls, Zero Off, Murphy and HCT brands. With the Balboa Water Group and Joyonway brands, we are also a global industry leader in the health and wellness market providing comprehensive electronic control systems with proprietary and patented technology for therapy bath, cold plunges, traditional hot tubs and swim spas.

As an innovative manufacturer of electronic controls and displays, we serve a variety of markets including off-highway, recreational marine, powersports and specialty vehicles, agriculture, water pumping, power generation, engine-driven industrial equipment, and health and wellness. We partner directly with original equipment manufacturers ("OEMs") and support a worldwide network of authorized distributors and systems integrators. We make significant investments to garner an intense understanding of unique applications to solve our customers' complex challenges.

Our focus is on being the preferred supplier of customized systems and mission critical components that create a safe and reliable user experience. This allows us to target customers or industries that see value in this level of integration, and as a result, our product list contains a wide variety of OEM applications. Product categories include traditional mechanical and electronic gauge instrumentation, plug and go CAN-based instruments, robust environmentally sealed controllers, hydraulic controllers, pumps and water flow systems, engineered panels, process monitoring instrumentation, printed circuit board assembly, wiring harnesses and custom software solutions. Our technologies can be used in both mobile, DC power applications, as well as fixed, AC power applications, enabling us to provide products and services across a broad base of applications.

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Our PowerView™ and next generation OpenView™ lines of LCD displays offer our customers the ability to work with our engineering teams to specify and utilize customized software and graphics for their electronics solutions. Our OpenView™ displays include the same robust features and quality of our PowerView™ displays while also allowing our customers the ability to use open source Linux-based operating system and various software development tools to create their own graphics and custom applications for their electronics solutions making implementation of OpenView™ products more adoptable and flexible for our customers. All of our displays offer easy-to-read, bonded LCD graphical interfaces with the industry's best viewability, even in direct sunlight or harsh weather conditions, and the ability to withstand a wide ambient temperature range. We believe our user friendly software configuration tools allow engineers and non-engineers alike to create customized systems to solve complex problems on their equipment making the user experience more seamless.

Our panel solutions offer customized design and simple, turnkey solutions supported by our team of engineers dedicated to applications, wire harnesses, panels and software development. Engineers focus entirely on custom and standard solutions built to desired specifications. Our services for design and development include on-site installation and testing to ensure the solution works with the application out of the box.

Technology and Innovation

We are an innovative products and technology focused company. Our talented engineering teams within our Hydraulics and Electronics Segments work cross-functionally and seamlessly to develop innovative, industry leading products that address our customers' needs while also addressing the trend toward electrification of machines and full electro-hydraulic system solutions. While the core technology of our products has been critical to our Company’s historical success and will remain important in the future, we continue to invest in opportunities to develop innovative technology encompassing both the Hydraulics and Electronics segments to create new products to address future market trends and further diversify our end markets.

Manufacturing

Strategy

We have developed a "Center of Excellence" operations strategy across the companies in our Electronics and Hydraulics segments. This strategy leverages the breadth of our global footprint and depth of our manufacturing capabilities.

In support of our focus on global expansion, we have been driving “in the region, for the region” manufacturing to better align supply chain and manufacturing value streams with customers geographically to shorten lead times, reduce inventory, optimize costs, and mitigate global supply risks. Established manufacturing centers provide scale in North America, and we continue to optimize centers in both Asia and Europe to gain efficiencies and meet global demand over time. Manufacturing locations in the U.S., Canada, Mexico, Italy, Germany, South Korea, China and India provide a range of manufacturing options.

Our factory and supplier management is grounded in a people first approach that leverages the talents of our diverse global operations team. All global sites operate to high standards of stewardship and social responsibility. Structured programs ensure our supply chains comply with Conflict Minerals standards.

Hydraulics

Our Hydraulics operations footprint leverages manufacturing centers in North America, Europe, and Asia. Established supplier relationships and manufacturing capabilities in precision machining, finishing, heat treatment and testing allow us to deliver best in class quality and market leading hydraulic control solutions.

We leverage Lean Six Sigma best practices and automation to continually improve the safety, quality, and productivity of our operating processes.

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Electronics

We offer a wide range of advanced electronics manufacturing capabilities that deliver integrated electronic control solutions to diverse end markets. Manufacturing value streams incorporate high speed surface mount technology, production lines with 3D solder paste inspection, 3D automated optical inspection and x-ray inspection to ensure quality and process control. Multipoint functional testing is conducted to ensure quality control of assembled products. Products are serialized and test data is captured against serial numbers and stored in a manufacturing execution system database for product traceability.

Sales and Marketing

In 2025, no single customer made up 10% or more than consolidated net sales across the Company.

Strategy

One of the key drivers of future growth for both the Electronics and Hydraulics segments is our product innovation that allows us to gain more wallet share with existing customers and to enter adjacent markets leveraging electronic and hydraulic solutions from our trusted brands. While always supporting our existing products, we will work with our partners to design the future and build solutions they need that ensure the safety, reliability, connectivity and control of their applications.

Our two segments are comprised of approximately 150 direct sales and application specialists serving our customers’ and working with their customers on solutions that solve complex problems and meet their needs. We will continue to use this long successful approach to support our strategy of being our customers' preferred provider for technology solutions.

Additionally, we utilize customer relationships from the different segments to create pull through of products, and joint product development has created additional sales opportunities for both segments.

Hydraulics

In 2025, 64% of Helios’ sales were derived from the Hydraulics segment. Our 2025 Hydraulics segment sales were distributed fairly evenly among our three major geographic regions with 40% to the Americas, 31% to Europe, the Middle East and Africa (“EMEA”) and 29% to Asia Pacific (“APAC”).

We market and sell hydraulic products and engineered solutions through value-added distributors and directly to OEMs. Our global channel partner network includes representation in many industrialized markets, and approximately 55% of segment sales are attributed to our channel partners who generally combine our products with other hydraulic components to design a complete hydraulic system. Sales direct to OEMs for integration in their machines make up the remaining 45%. We rely heavily on our distribution network in the U.S., while in the EMEA and APAC regions, sales are split more evenly between OEMs and distributors. Technical support is provided by local sales and application experts based in each region. Our new product initiatives in the Hydraulics segment are focused on expanding our line of electro-hydraulic valves, expanding product lines to new end markets like the data center, and modifying existing products based on customer input to support a wider range of applications.

Electronics

Electronic products are sold globally to OEM customers, distributors and system integrators. OEM sales constituted 78% of total Electronics segment sales in 2025. Building strong, lasting partnerships with OEMs is a priority. We rely on direct customer contacts to stimulate demand for our products. We work closely with our OEM customers to design and deliver innovative and reliable products for specific applications. Our hardware and software products are designed and modified with the customer utilizing our extensive application knowledge to create unique system level products that cannot be easily replaced by simply switching out components. Customer service support and an in-house technical service department is available before, during and after the initial sale to create sustainable partnerships with our customers. Current OEM customers continue to specify our products in new projects based on the high level of engagement, engineering capabilities and expertise, quality products and delivery performance.

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We have a dedicated OEM sales team that collaborates with OEMs, and a distribution sales team that works with our channel partners. Overall, approximately 22% of 2025 Electronics segment sales were derived from independent authorized distributor channel partners.

We continue to execute on our strategic initiative to further diversify our channels to market and end markets served. This effort includes the development of new partners globally. These efforts assist in our ability to diversify our global customer base, allowing us to grow more quickly, diversify the end-markets we serve and expand our customer base.

In the Electronics Segment, we are advancing new product introductions and upgrades, including haptic, touchscreen, and hybrid panel displays. We are also adding enhanced features including higher processing power, connectivity, AI-capable hardware and more flexible programming options in our next generation products.

Geographically, our 2025 Electronics segment sales were 79% in the Americas, 10% in EMEA and 11% in APAC. There is a well-defined initiative to grow sales in EMEA and APAC as part of our growth strategy.

Competition

Hydraulics

Competitors in the hydraulics market are broken down into three categories: full-line hydraulic systems producers, component-only producers of MCT or FCT products, and low-cost producers. Most competitors market globally. Full-line producers, such as Parker Hannifin, Danfoss/Eaton and Bosch Rexroth/HydraForce, can provide complete hydraulic systems to their customers, including components functionally like those manufactured in our Hydraulics segment. Component-only producers are entities that offer only MCT or FCT products, while additional parts of the hydraulics system are obtained from other manufacturers. These include Delta Power Company, Stucchi and CEJN. Low-cost producers, such as Winner and Valvole Italia, are competitors who have emerged in low-cost production regions that will typically attempt to copy our products and like products designed by competitors. Low-cost producers generally have a limited product range compared with full line of cartridge valve and quick release coupling only producers, which restricts their ability to be competitive.

We believe that we compete based upon the quality, reliability, value, speed of delivery and technological characteristics of our products and services.

Electronics

Competition within the electronics market is very broad with competitors ranging from large multinational companies with full electronics offerings such as Continental, Garmin, and Bosch, to small niche companies that specialize in one product type. Enovation Controls is a niche player in the displays, controllers, gauges and instrumentation panel markets. Balboa Water Group is a niche player providing single source control and water flow systems in the health and wellness industry.

The market for products designed and manufactured by Enovation Controls is relatively fragmented with approximately the top five companies comprising the majority of the market, mostly servicing the automotive space. Enovation Controls differentiates itself through product quality and ruggedness, customization ability and service with a focus on mid-sized niche markets that are not well served by the large competitors. Our engagement and speed to market set us apart from larger competitors.

Balboa Water Group, including Joyonway, is the largest supplier of integrated end-to-end solutions for the therapy and wellness spa and bath markets and is the only supplier capable of providing the full spectrum of components, from controls and displays to pumps and jets. By providing integrated architecture of hardware and software that is customized to match OEM product specifications, Balboa Water Group creates a value proposition making it difficult for our customers to easily switch suppliers.

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Our overall position in our key markets is defensible due to high barriers to switching suppliers, such as up-front engineering and programming costs, as well as positive perceptions among core customers on key selection criteria, including quality and service.

Human Capital

Our people are fundamental to the execution of our strategy and the long-term success of Helios. We are focused on building a high-performing, future-ready workforce through deliberate investments in talent, leadership capability, and a performance-driven culture aligned with our business objectives.

At the end of fiscal year 2025, we employed over 2,300 colleagues worldwide. Approximately 56% of our employees were located in the Americas region, 28% in the EMEA region, and 16% in the APAC region, following the divestiture of Custom Fluidpower in Australia. In addition, we maintain a committed service agreement with a third-party provider that supports approximately 500 jobs in Mexico and serves as an integral component of our global supply chain. This arrangement provides operational flexibility and allows us to adjust labor capacity in response to changes in market demand. Beyond our direct workforce, we utilize consultants, independent contractors, and temporary workers, as appropriate, to support business needs. In Italy, approximately 575 employees are represented by a labor union. We maintain constructive working relationships with union representatives and engage in ongoing dialogue to address workforce matters and support operational continuity. To our knowledge, there are no material labor disputes, strikes, or work stoppages pending or threatened that would have a material impact on the Company.

A core element of our people strategy is the continued evolution of a pay-for-performance culture across the organization. During 2025, we advanced efforts to harmonize our performance management framework globally, creating greater consistency, transparency, and accountability in how performance is assessed, developed, and rewarded across regions and businesses. This approach is designed to better align individual objectives with enterprise priorities, reinforce our shared values, and support differentiated rewards based on performance and contribution.

In parallel, we are designing a comprehensive global job architecture to establish a consistent, market-aligned framework for job definitions, leveling, and career pathways across our global workforce. The job architecture enhances clarity around roles and expectations, supports equitable and competitive compensation practices, and strengthens our ability to attract, retain, and develop talent while enabling scalable workforce planning as the Company grows.

Leadership development remains a critical investment area for Helios. We continue to build upon our Leadership Academy, a structured six-month development program designed to strengthen leadership capability and enterprise thinking across the organization. Each cohort includes approximately 25 high-potential leaders from across our global operations. The program combines in-person and virtual learning experiences focused on leadership effectiveness, collaboration, strategic execution, and people development. The Leadership Academy represents a key component of our long-term succession planning and talent development strategy and serves as a foundation for future leadership programs.

Through our employee engagement survey, we actively measure employee engagement to better understand workforce sentiment, strengthen organizational effectiveness, and inform leadership and people-related decisions. Management reviews the survey results to identify trends, prioritize actions, and support continuous improvement initiatives across the organization. During 2025, participation in our employee engagement survey increased by 8%, reflecting higher levels of workforce involvement and feedback. In 2025, our employee Net Promoter Score ("eNPS"), the measure of how likely our people are to recommend Helios as a great place to work, reached +20.2 from +7.3 the year before. We believe this is a strong signal that the majority of our employees believe in who we are, what we are building, and where we are headed.

As part of our broader human capital strategy, we continue to enhance our total rewards offerings to support employee recruitment, retention, and engagement. During 2025, we made progress consolidating and harmonizing benefit offerings across both business segments in the United States. This effort is intended to improve consistency, competitiveness, and administrative efficiency while supporting employee well-being. In recognition of these efforts, Helios received the 2025 Top Employee Benefits Award from Mployer, an industry leader in benefits analytics.

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Helios is committed to maintaining an inclusive, ethical, and respectful workplace. All employees are expected to adhere to our Shared Values and our Code of Business Conduct and Ethics, which establish standards for integrity, accountability, mutual respect, and lawful and ethical behavior. These standards apply globally and are reinforced through training, communication, and leadership. In 2025, 100% of our global employees completed the Helios Global Code of Conduct as we continue to strive to provide equal opportunity for all employees and foster a workplace environment free from discrimination or harassment.

Employee safety, health, and well-being are foundational priorities. We believe our polices and procedures have been designed to comply with applicable environmental, health, and safety laws and to protect employees, contractors, and the communities in which we operate. Many facilities offer onsite medical clinics serving employees and their families, along with health and wellness programs focused on preventive care. We continue to provide a confidential employee assistance program that offers counseling and support services to employees and their families, as well as, an employee assistance fund that provides financial support to employees experiencing financial hardships due to unexpected medical bills, funeral costs, natural disasters, etc.

Through continued investment in our people, the advancement of a performance-driven culture, and the development of strong leadership capabilities, we believe Helios is positioned to sustain growth, drive operational excellence, and deliver long-term value to shareholders and other stakeholders.

Patents and Trademarks

In addition to trade secrets, unpatented know-how and other intellectual property rights, we own approximately 300 active patents and trademarks relating to certain of our products and businesses. We believe that the growth of our business is dependent upon the quality and functional performance of our products and our relationship with the marketplace, rather than on any single patent, trademark, copyright or other item of intellectual property or group of patents, trademarks or copyrights. However, our patents are important in the defense of our intellectual property from competitors who exploit product development that is not otherwise legally protected by its creator. While our patents, trademarks, copyrights and other items of intellectual property are important to us, the loss of any one item of intellectual property would not materially affect our business, taken as a whole.

Governmental Regulations

We are subject to a variety of federal, state and local laws and regulations, including in foreign jurisdictions, relating to our business practices, labor and employment, construction, land use and taxation, among others. These laws and regulations are complex, change frequently and have become more stringent over time. Compliance with government regulations, including environmental regulations, has not had a material effect on our capital expenditures, earnings or competitive position, and based on current information and the applicable laws and regulations currently in effect, is not expected to. However, laws and regulations that impose significant operational restrictions and compliance requirements upon our company can be changed, accelerated or adopted, which could negatively impact our operating results. See Item 1A - Risk Factors for additional risks related to governmental regulations.

Anti-Corruption and Anti-Bribery Laws and Regulations

We are subject to the U.S. Foreign Corrupt Practices Act (“FCPA”) and anti-corruption laws, and similar laws in foreign countries, such as the U.K. Anti-Bribery Act of 2010. Any violation of these laws by us or our agents or distributors could create substantial liability for us, subject our officers and directors to personal liability, and cause a loss of reputation in the market. Increased business in higher risk countries could subject us and our officers and directors to increased scrutiny and increased liability. In addition, becoming familiar with and implementing the infrastructure necessary to comply with laws, rules and regulations applicable to new business activities and mitigating and protecting against corruption risks could be quite costly.

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Export Controls and Trade Policies

We are subject to numerous domestic and foreign regulations relating to our operations worldwide. In particular, we are subject to trade and import and export regulations in multiple jurisdictions, including sanctions administered by the Office of Foreign Asset Controls of the U.S. Treasury Department ("OFAC"). Our businesses may also be impacted by additional domestic or foreign trade regulations ensuring fair trade practices, including trade restrictions, tariffs and sanctions, including the previously enacted and potentially contemplated tariffs by the current U.S. presidential administration.

Environmental Regulations

Our operations and properties are subject to laws and regulations relating to environmental protection, including those governing air emissions, water discharges, waste management and workplace safety. We use, generate and dispose of hazardous substances and waste in our operations and could be subject to material liabilities relating to the investigation and clean-up of contaminated properties and related claims. We are required to conform our operations and properties to these laws and adapt to regulatory requirements in countries in which we operate as these requirements change. In connection with our acquisitions, we may assume significant environmental liabilities, some of which we may not be aware of, or may not be quantifiable, at the time of acquisition. In addition, new laws and regulations, the discovery of previously unknown contamination or the imposition of new requirements could increase our costs or subject us to new or increased liabilities.

Occupational Health and Safety Regulations

The Company's operations are subject to extensive and stringent governmental regulations including regulations related to the Occupational Safety and Health Act (“OSHA”) and similar safety and health regulations promulgated in other countries. The Company's employees in its manufacturing facilities operate complicated machinery that may cause substantial injury or death upon malfunction or improper operation. The Company's manufacturing locations are subject to the workplace safety rules and regulations of OSHA, local safety and health laws, and similar regulations promulgated in other countries. The Company believes that it is in compliance with the requirements of these laws. However, in the event that the Company is unable to comply with OSHA or other environmental requirements, the Company could be subject to substantial sanctions, including restrictions on its business operations, monetary liability and criminal sanctions, any of which could have a material adverse effect upon the Company's business.

Sustainability

Corporate responsibility and sustainability are reflected in the Company’s business strategy. The Board of Directors has oversight over, and recently reviewed, the Company’s principles of corporate and social responsibility. The Company is committed to reducing emissions, recycling and minimizing its environmental footprint and has implemented several strategies to achieve these goals. The Company is also fully committed to the safety of its employees and the safety of those who use its products. The Board and its committees will continue to assist the Company in its oversight of corporate social responsibilities, significant public policy issues, health and safety and environmental related trends.

Available Information

Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports, as well as our proxy statements and other materials which are filed with or furnished to the Securities and Exchange Commission (“SEC”) are made available, free of charge, on or through the Helios website under the heading “Investors” and “SEC Filings” as soon as reasonably practicable after they are filed with, or furnished to, the SEC.

The Company’s executive offices are located at 7456 16th St E, Sarasota, Florida, 34243, and our telephone number is (941) 362-1200. Our website is www.heliostechnologies.com.