It has been about a month since the last earnings report for Helios Technologies (HLIO Quick QuoteHLIO - Free Report) . Shares have added about 8.1% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Helios Technologies due for a pullback? Well, first let's take a quick look at the latest 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.

Helios' Q1 Earnings & Revenues Beat Estimates, Increase Y/Y

Helios Technologies 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 Fluid power divestiture, Hydraulics growth was higher. Segment gross margin increased 220 bps to 31.8%, and operating income rose 34% to $23.4 million,

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.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 18.23% due to these changes.

VGM Scores

Currently, Helios Technologies has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. 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 these revisions looks promising. It comes with little surprise Helios Technologies has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Helios Technologies belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, Applied Industrial Technologies (AIT Quick QuoteAIT - Free Report) , has gained 2.9% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Applied Industrial Technologies reported revenues of $1.25 billion in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $2.65 for the same period compares with $2.57 a year ago.

Applied Industrial Technologies is expected to post earnings of $2.91 per share for the current quarter, representing a year-over-year change of +3.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Applied Industrial Technologies. Also, the stock has a VGM Score of F.