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Helios Q1 EPS surged 82% and beat estimates, while revenues increased 17% year over year.
HLIO saw strong demand in recreational, mobile, agriculture and industrial markets.
Margins expanded on higher volume and efficiencies as Helios raised its quarterly dividend.
Helios Technologies, Inc. (HLIO - Free Report) reported strong first-quarter 2026 performance, driven by broad-based demand and improved profitability. Adjusted earnings were 80 cents per share, up 82% year over year, and beat the Zacks Consensus Estimate of 68 cents by 17.6%.
Top-Line Details
Revenues came in at $228.4 million, up 17% year over year, and topped the consensus mark of $220 million by 3.8%. On a non-GAAP basis, Helios also emphasized that sales grew 23% on a pro forma basis, reflecting the divestiture of Custom Fluidpower (“CFP”) and the impact of foreign exchange.
Reported sales were weighted to the Americas, with EMEA and APAC also contributing meaningful shares of revenues. The top line exceeded expectations as both business segments contributed and geographic performance remained diversified.
Electronics segment’s sales increased 29% year over year to $89.2 million, supported by strong demand across recreational and mobile markets, along with stability in health and wellness, food service, commercial and industrial markets. Segment gross margin improved 170 bps to 34.3%, while operating income rose 78% to $14.2 million.
Hydraulics segment’s sales rose 10% to $139.2 million, driven by strength in mobile and agriculture markets. On a pro forma basis, excluding the Custom Fluidpower divestiture, Hydraulics growth was higher. Segment gross margin increased 220 bps to 31.8%, and operating income rose 34% to $23.4 million,
Helios Technologies, Inc Price, Consensus and EPS Surprise
Gross profit rose 25%, with the gross margin expanding 220 basis points to 32.8%, supported by higher volumes, segment mix and cost efficiencies. Operating income increased 75.9% to $29.9 million, with operating margin improving 440 basis points (bps) to 13.1%.
Adjusted EBITDA margin expanded 310 bps year over year to 20.4%, reflecting benefits from higher volume, segment mix and operating leverage, while management also highlighted record first-quarter operating cash generation.
Balance Sheet and Cash Flow
In the first three months of 2026, Helios generated net cash of $23.9 million from operating activities compared with $19 million in the year-ago period. Capital expenditure totaled $6.7 million in the same period, up 9.8% year over year. Free cash flow was $17 million in the quarter.
Exiting first-quarter 2026, the company had total debt of $348.5 million, down from $367.1 million at the end of fourth-quarter 2025. Net debt-to-adjusted EBITDA improved to 1.6x compared with 1.8x in the previous quarter, underscoring continued progress on deleveraging. Helios exited the quarter with cash and cash equivalents of $64.2 million compared with $73 million at the end of 2025.
Concurrent with the earnings release, the company hiked its quarterly dividend by 33% to 12 cents per share. The company also paid its 117th consecutive quarterly dividend and repurchased 70,000 shares for $4.6 million during the first quarter.
Guidance
For 2026, Helios expects revenues in the range of $840-$870 million, implying growth of 6-10% year over year. The company projects an adjusted EBITDA margin of 19.5-21.0% and non-GAAP earnings per share of $2.75-$3.00.
For second-quarter 2026, the company issued an outlook calling for revenues of $227-$232 million, adjusted EBITDA margin of 20.0-21.0% and adjusted earnings of 78-83 cents per share.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the same space are discussed below:
Tennant’s earnings surpassed the consensus estimate by 141.7% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for TNC’s 2026 earnings has increased 6.2%.
RBC Bearings Incorporated (RBC - Free Report) presently carries a Zacks Rank #2 (Buy). RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.3%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has inched down 0.2%.
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Helios' Q1 Earnings & Revenues Beat Estimates, Increase Y/Y
Key Takeaways
Helios Technologies, Inc. (HLIO - Free Report) reported strong first-quarter 2026 performance, driven by broad-based demand and improved profitability. Adjusted earnings were 80 cents per share, up 82% year over year, and beat the Zacks Consensus Estimate of 68 cents by 17.6%.
Top-Line Details
Revenues came in at $228.4 million, up 17% year over year, and topped the consensus mark of $220 million by 3.8%. On a non-GAAP basis, Helios also emphasized that sales grew 23% on a pro forma basis, reflecting the divestiture of Custom Fluidpower (“CFP”) and the impact of foreign exchange.
Reported sales were weighted to the Americas, with EMEA and APAC also contributing meaningful shares of revenues. The top line exceeded expectations as both business segments contributed and geographic performance remained diversified.
Electronics segment’s sales increased 29% year over year to $89.2 million, supported by strong demand across recreational and mobile markets, along with stability in health and wellness, food service, commercial and industrial markets. Segment gross margin improved 170 bps to 34.3%, while operating income rose 78% to $14.2 million.
Hydraulics segment’s sales rose 10% to $139.2 million, driven by strength in mobile and agriculture markets. On a pro forma basis, excluding the Custom Fluidpower divestiture, Hydraulics growth was higher. Segment gross margin increased 220 bps to 31.8%, and operating income rose 34% to $23.4 million,
Helios Technologies, Inc Price, Consensus and EPS Surprise
Helios Technologies, Inc price-consensus-eps-surprise-chart | Helios Technologies, Inc Quote
Margin Performance
Gross profit rose 25%, with the gross margin expanding 220 basis points to 32.8%, supported by higher volumes, segment mix and cost efficiencies. Operating income increased 75.9% to $29.9 million, with operating margin improving 440 basis points (bps) to 13.1%.
Adjusted EBITDA margin expanded 310 bps year over year to 20.4%, reflecting benefits from higher volume, segment mix and operating leverage, while management also highlighted record first-quarter operating cash generation.
Balance Sheet and Cash Flow
In the first three months of 2026, Helios generated net cash of $23.9 million from operating activities compared with $19 million in the year-ago period. Capital expenditure totaled $6.7 million in the same period, up 9.8% year over year. Free cash flow was $17 million in the quarter.
Exiting first-quarter 2026, the company had total debt of $348.5 million, down from $367.1 million at the end of fourth-quarter 2025. Net debt-to-adjusted EBITDA improved to 1.6x compared with 1.8x in the previous quarter, underscoring continued progress on deleveraging. Helios exited the quarter with cash and cash equivalents of $64.2 million compared with $73 million at the end of 2025.
Concurrent with the earnings release, the company hiked its quarterly dividend by 33% to 12 cents per share. The company also paid its 117th consecutive quarterly dividend and repurchased 70,000 shares for $4.6 million during the first quarter.
Guidance
For 2026, Helios expects revenues in the range of $840-$870 million, implying growth of 6-10% year over year. The company projects an adjusted EBITDA margin of 19.5-21.0% and non-GAAP earnings per share of $2.75-$3.00.
For second-quarter 2026, the company issued an outlook calling for revenues of $227-$232 million, adjusted EBITDA margin of 20.0-21.0% and adjusted earnings of 78-83 cents per share.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the same space are discussed below:
Tennant Company (TNC - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tennant’s earnings surpassed the consensus estimate by 141.7% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for TNC’s 2026 earnings has increased 6.2%.
RBC Bearings Incorporated (RBC - Free Report) presently carries a Zacks Rank #2 (Buy). RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.3%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has inched down 0.2%.
Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank of 2. Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.5%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 0.5%.