$HLIO

SUN HYDRAULICS CORP

CIK:0001024795|SEC Filings

Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025	Jul. 04, 2026	Jun. 28, 2025
Income Statement [Abstract]
Net sales	$ 231.9	$ 212.5	$ 460.3	$ 408.0
Cost of sales	151.7	145.0	305.2	280.6
Gross profit	80.2	67.5	155.1	127.4
Selling, engineering and administrative expenses	40.2	37.3	77.6	71.9
Amortization of intangible assets	7.5	8.3	15.1	16.5
Operating income	32.5	21.9	62.4	39.0
Interest expense, net	4.7	7.0	9.8	14.4
Foreign currency transaction (gain) loss, net	0.1	0.5	(0.5)	0.6
Other non-operating income, net	(0.4)	(0.5)	(0.6)	(0.4)
Income before income taxes	28.1	14.9	53.7	24.4
Income tax provision	6.2	3.5	12.1	5.8
Net income	$ 21.9	$ 11.4	$ 41.6	$ 18.6
Net income per share:
Basic	$ 0.66	$ 0.34	$ 1.26	$ 0.56
Diluted	$ 0.66	$ 0.34	$ 1.25	$ 0.56
Weighted average shares outstanding:
Basic	33.0	33.3	33.1	33.3
Diluted	33.2	33.3	33.2	33.4
Dividends declared per share	$ 0.12	$ 0.09	$ 0.24	$ 0.18

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions	6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025
Cash flows from operating activities:
Net income	$ 41.6	$ 18.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	30.3	31.9
Loss on disposal of assets	0.1	0.1
(Gain) on sale of business, net of CTA Loss	(0.4)	0.0
Stock-based compensation expense	4.2	2.9
Amortization of debt issuance costs	0.4	0.4
Benefit for deferred income taxes	(1.5)	(1.4)
Other, net	3.1	0.5
(Increase) decrease in:
Accounts receivable, net	(27.3)	(23.4)
Inventories	(7.9)	(1.7)
Income taxes receivable	5.6	6.5
Other current assets	(5.0)	2.1
Other assets	0.0	(1.3)
Increase (decrease) in:
Accounts payable	13.0	21.4
Accrued expenses and other liabilities	7.9	4.2
Income taxes payable	1.5	(2.8)
Other noncurrent liabilities	0.2	(2.0)
Net cash provided by operating activities	65.8	56.0
Cash flows from investing activities:
Divestiture of Business, net of cash used	0.4	0.0
Capital expenditures	(18.0)	(11.5)
Proceeds from dispositions of property, plant and equipment	0.0	0.2
Software development costs	(1.6)	(1.9)
Net cash used in investing activities	(19.2)	(13.2)
Cash flows from financing activities:
Borrowings on revolving credit facilities	80.5	20.6
Repayment of borrowings on revolving credit facilities	(78.0)	(38.4)
Repayment of borrowings on long-term non-revolving debt	(35.6)	(7.8)
Proceeds from stock issued	1.3	0.9
Purchase of treasury stock	(10.6)	(6.5)
Dividends to shareholders	(6.9)	(6.0)
Payment of employee tax withholding on equity award vestings	(0.3)	(0.5)
Other financing activities	(1.0)	(0.8)
Net cash used in financing activities	(50.6)	(38.5)
Effect of exchange rate changes on cash and cash equivalents	(1.0)	4.6
Net (decrease) increase in cash and cash equivalents	(5.0)	8.9
Cash and cash equivalents, beginning of period	73.0	44.1
Cash and cash equivalents, end of period	$ 68.0	$ 53.0

Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions	Jul. 04, 2026	Jan. 03, 2026
Current assets:
Cash and cash equivalents	$ 68.0	$ 73.0
Accounts receivable, net of allowance for credit losses of $3.5 and $1.4	140.6	116.0
Inventories, net	194.0	188.6
Income taxes receivable	9.7	15.4
Other current assets	26.4	21.9
Total current assets	438.7	414.9
Property, plant and equipment, net	209.6	206.6
Deferred income taxes	2.2	1.9
Goodwill	491.5	498.1
Other intangible assets, net	350.3	369.9
Other assets	23.7	23.1
Total assets	1,516.0	1,514.5
Current liabilities:
Accounts payable	87.9	75.6
Accrued compensation and benefits	19.9	23.3
Other accrued expenses and current liabilities	33.8	23.0
Current portion of long-term non-revolving debt, net	0.0	5.4
Dividends payable	4.0	3.0
Income taxes payable	14.3	12.9
Total current liabilities	159.9	143.2
Revolving line of credit	105.4	105.5
Long-term non-revolving debt, net	226.1	256.2
Deferred income taxes	51.0	52.4
Other noncurrent liabilities	25.3	25.7
Total liabilities	567.7	583.0
Note 15 - Commitments and contingencies
Shareholders' equity:
Preferred stock, par value $0.001, 2.0 shares authorized, no shares issued or outstanding	0.0	0.0
Common stock, par value $0.001, 100.0 shares authorized, 33.5 and 33.4 shares issued; 33.1 and 33.1 outstanding at July 4, 2026 and January 3, 2026, respectively	0.0	0.0
Capital in excess of par value	448.1	442.9
Retained earnings	572.7	539.1
Accumulated other comprehensive loss	(48.2)	(36.9)
Treasury stock, at cost, 0.5 and 0.3 shares, respectively	(24.3)	(13.6)
Total shareholders' equity	948.3	931.5
Total liabilities and shareholders' equity	$ 1,516.0	$ 1,514.5