It has been about a month since the last earnings report for Helios Technologies (HLIO Quick QuoteHLIO - Free Report) . Shares have lost about 8.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Helios Technologies due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Helios Technologies, Inc before we dive into how investors and analysts have reacted as of late.

Key Highlights

Helios Technologies reported fourth-quarter 2025 non-GAAP earnings of 81 cents per share, up 145% year over year. The figure surpassed the Zacks Consensus Estimate of 71 cents per share

Total revenues of $210.7 million outperformed the consensus estimate of $198 million. The top line increased 17% year over year from $179.5 million, driven by volume recovery across both segments, favorable mix and ongoing productivity actions.

Segment Performance

Electronics segment’s sales increased 31% year over year to $78.6 million, supported by strong demand across recreational, health and wellness, mobile and industrial markets. Hydraulics segment’s sales rose 10% to $132.1 million, driven by strength in construction/mobile markets and early recovery in agriculture. On a pro forma basis, excluding the Custom Fluidpower divestiture, Hydraulics growth was higher.

Margin Performance

Gross profit rose 31%, with gross margin expanding 350 basis points to 33.6%, supported by higher volumes and better absorption, partially offset by tariff impacts. Operating income increased 93% to $25.7 million, with operating margin improving 480 basis points to 12.2%. Adjusted EBITDA grew 36% to $42.3 million, with margin reaching 20.1%.

Balance Sheet and Cash Flow

Helios generated an operating cash flow of $46.0 million in the quarter compared with $35.7 million a year ago, while free cash flow increased to $40.5 million from $28.3 million.

Exiting 2025, the company had total debt of $367.1 million, down 18% year over year, and cash of $73.0 million. The company also paid its 116th consecutive quarterly dividend and repurchased 330,000 shares for $13.6 million during 2025.

Guidance

For 2026, Helios expects revenues in the range of $820-$860 million, implying mid-single-digit growth on a pro forma basis. The company projects an adjusted EBITDA margin of 19.5-21.0% and non-GAAP earnings per share of $2.60-$2.90. Management expects stronger growth in the first half of 2026, with near-term headwinds from higher tariff costs and potential semiconductor supply constraints and pricing pressures.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 9.68% due to these changes.

VGM Scores

At this time, Helios Technologies has a strong Growth Score of A, a score with the same score on the momentum front. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Helios Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.