Helios Technologies Reports Strong Q1 2026 Sales Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy HLIO?
Source: Investing
Helios Technologies Inc. shares surged by 13.03% as the stock crossed above its 5-day SMA amid a challenging market environment where the Nasdaq-100 fell by 1.61% and the S&P 500 declined by 0.51%.
The company reported a remarkable 23% sales growth in Q1 2026, reaching $228 million, with significant contributions from its Electronics and Hydraulics segments. The gross margin expanded to 32.8%, reflecting operational efficiencies, and the diluted EPS increased by 168% year-over-year, showcasing strong earnings growth. Additionally, Helios announced a 33% dividend increase and a $4.6 million stock repurchase, reinforcing its commitment to shareholder value.
This strong performance highlights Helios Technologies' operational strength and market demand, positioning the company favorably despite broader market weaknesses.
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Analyst Views on HLIO
Wall Street analysts forecast HLIO stock price to fall
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 77.570
Low
65.00
Averages
65.00
High
65.00
Current: 77.570
Low
65.00
Averages
65.00
High
65.00
About HLIO
Helios Technologies, Inc. provides engineered motion control and electronic controls technology for diverse end markets, including construction, material handling, agriculture, energy, recreational vehicles, marine and health and wellness. The Company's segments include Hydraulics and Electronics. The Hydraulics segment designs and manufactures hydraulic motion control and fluid conveyance technology products, including cartridge valves, manifolds, quick release couplings, as well as engineers’ hydraulic solutions and, in some cases, complete systems. Its Hydraulics segment includes products sold under the Sun Hydraulics, Faster, NEM, Taimi, Daman and Schultes brands. The Electronics segment designs and manufactures customized electronic controls systems, displays, wire harnesses and software solutions for a variety of end markets. The Electronics segment includes products sold under the Enovation Controls, Murphy, Zero Off, HCT, Balboa Water Group and Joyonway brands.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Helios Technologies Q1 2026 Earnings Call Highlights
- Sales Performance Surge: Helios Technologies reported total sales of $228 million in Q1 2026, reflecting a 17% year-over-year increase that exceeded the high end of their outlook, demonstrating robust performance across all regions and segments, thereby strengthening their market position.
- Profitability Enhancement: Operating income rose 76% year-over-year to $30 million, with operating margin expanding by 440 basis points to 13.1%, indicating significant progress in cost control and operational efficiency improvements.
- Financial Health Improvement: The net leverage ratio decreased to 1.6x, the lowest level since 2018, enhancing the company's flexibility in capital deployment and marking a significant milestone in financial management.
- Optimistic Outlook: The company raised its full-year sales forecast to between $840 million and $870 million, with diluted non-GAAP EPS expected to range from $2.70 to $2.95, while maintaining a cautious stance regarding uncertainties in the second half of the year.
See More
Helios Technologies Reports 23% Sales Growth in Q1 2026
- Strong Sales Performance: Helios Technologies reported Q1 2026 sales of $228 million, a 23% increase year-over-year, with Electronics and Hydraulics segments growing by 29% and 19% respectively, indicating robust market demand and operational strength.
- Margin Expansion: The gross margin for Q1 expanded to 32.8%, up 220 basis points from the prior year, driven by production optimization and cost efficiencies, which enhances the company's profitability and competitive positioning.
- Significant Earnings Growth: The company delivered a diluted EPS of $0.59, up 168% year-over-year, with adjusted diluted EPS at $0.80, reflecting substantial improvements in earnings capacity and operational execution.
- Enhanced Shareholder Returns: Helios increased its dividend by 33% in Q1 and repurchased $4.6 million of common stock, demonstrating a strong commitment to shareholder value and robust cash flow generation capabilities.
See More
Helios Technologies Announces 33.3% Increase in Quarterly Dividend
- Dividend Increase: Helios Technologies has declared a quarterly dividend increase from $0.09 to $0.12 per share, representing a 33.3% rise, which reflects the company's ongoing improvement in profitability and cash flow management, thereby boosting investor confidence.
- Yield Metrics: The forward yield of this dividend stands at 0.76%, indicating the company's stability and attractiveness in the current market environment, potentially drawing in more investors seeking reliable returns.
- Payment Schedule: The dividend is set to be paid on April 27, with a record date of April 13 and an ex-dividend date also on April 13, ensuring shareholders receive their earnings promptly and reinforcing the relationship between the company and its investors.
- Future Outlook: Helios targets revenue between $820 million and $860 million for 2026, aiming for margin expansion through product innovation, which indicates the company's strong growth potential and strategic direction in a competitive market.
See More
Helios Technologies Sets 2030 Sales Target of $1.6 Billion with 25% EBITDA Margin
- 2030 Financial Targets: Helios Technologies has set a sales target of $1.6 billion for 2030, doubling its 2025 sales of approximately $792 million, indicating strong confidence in future growth potential and market expansion.
- Adjusted EBITDA Margin: The company anticipates an adjusted EBITDA margin exceeding 25% by 2030, representing significant progress in enhancing profitability and operational efficiency, which further boosts investor confidence.
- Dividend Increase: The Board of Directors approved a 33% increase in the quarterly dividend to $0.12 per share, reflecting confidence in the company's long-term growth and cash generation outlook while demonstrating a commitment to shareholder returns.
- New Product Innovation: In 2025, Helios launched 11 major new products and achieved a 100 basis point gross margin expansion through key initiatives like operational excellence and market transformation, showcasing the company's proactive strategy in product development and market competitiveness.
See More
Helios Technologies Sponsors Marine Science & Technology Digital Hub
- Collaborative Innovation: Helios Technologies has become the lead sponsor of the Marine Science & Technology Digital Hub at the new Mote Science Education Aquarium, highlighting its commitment to innovation and community engagement, which is expected to enhance the company's influence in environmental and educational sectors.
- Digital Resource Access: The Digital Hub will provide aquarium visitors with direct access to Mote's Cyber Library, encompassing scientific publications, educational resources, and archival collections, which is anticipated to attract more visitors and enhance public interest in marine science.
- Environmental Responsibility: Helios' sponsorship exemplifies its support for sustainable practices, aiming to leverage technology for environmental stewardship and educational impact, thereby further solidifying its leadership position in global markets.
- Future Outlook: The partnership with Mote will provide a platform for hundreds of thousands of visitors from around the world, driving environmental research and data-driven insights, inspiring the next generation of marine scientists, and enhancing the company's talent attraction in related fields.
See More
Helios Technologies Reports Q4 2025 Earnings Growth and Strategic Outlook
- Significant Sales Growth: Helios Technologies reported fourth-quarter sales of $211 million, a 17% increase year-over-year, with full-year sales reaching $839 million, marking the first annual growth in three years, indicating strong performance amid market recovery.
- Innovation-Driven Momentum: CEO Sean Bagan highlighted accelerated sales and orders in the second half of the year, attributed to effective go-to-market strategies and industry-leading innovative products, which are expected to further drive future sales growth.
- Improved Financial Health: The company generated a record free cash flow of $46 million in Q4, totaling $127 million for the year, with a net debt to adjusted EBITDA ratio of 1.8, showcasing effective financial management and stability.
- Optimistic Future Outlook: CFO Jeremy Evans outlined 2026 net sales guidance of $820 million to $860 million, with Q1 sales expected between $218 million and $223 million, reflecting the company's confidence in market recovery and sustained growth potential.
See More
Helios Technologies Q1 2026 Earnings Call Highlights
- Sales Performance Surge: Helios Technologies reported total sales of $228 million in Q1 2026, reflecting a 17% year-over-year increase that exceeded the high end of their outlook, demonstrating robust performance across all regions and segments, thereby strengthening their market position.
- Profitability Enhancement: Operating income rose 76% year-over-year to $30 million, with operating margin expanding by 440 basis points to 13.1%, indicating significant progress in cost control and operational efficiency improvements.
- Financial Health Improvement: The net leverage ratio decreased to 1.6x, the lowest level since 2018, enhancing the company's flexibility in capital deployment and marking a significant milestone in financial management.
- Optimistic Outlook: The company raised its full-year sales forecast to between $840 million and $870 million, with diluted non-GAAP EPS expected to range from $2.70 to $2.95, while maintaining a cautious stance regarding uncertainties in the second half of the year.
See More
Helios Technologies Reports 23% Sales Growth in Q1 2026
- Strong Sales Performance: Helios Technologies reported Q1 2026 sales of $228 million, a 23% increase year-over-year, with Electronics and Hydraulics segments growing by 29% and 19% respectively, indicating robust market demand and operational strength.
- Margin Expansion: The gross margin for Q1 expanded to 32.8%, up 220 basis points from the prior year, driven by production optimization and cost efficiencies, which enhances the company's profitability and competitive positioning.
- Significant Earnings Growth: The company delivered a diluted EPS of $0.59, up 168% year-over-year, with adjusted diluted EPS at $0.80, reflecting substantial improvements in earnings capacity and operational execution.
- Enhanced Shareholder Returns: Helios increased its dividend by 33% in Q1 and repurchased $4.6 million of common stock, demonstrating a strong commitment to shareholder value and robust cash flow generation capabilities.
See More
Helios Technologies Announces 33.3% Increase in Quarterly Dividend
- Dividend Increase: Helios Technologies has declared a quarterly dividend increase from $0.09 to $0.12 per share, representing a 33.3% rise, which reflects the company's ongoing improvement in profitability and cash flow management, thereby boosting investor confidence.
- Yield Metrics: The forward yield of this dividend stands at 0.76%, indicating the company's stability and attractiveness in the current market environment, potentially drawing in more investors seeking reliable returns.
- Payment Schedule: The dividend is set to be paid on April 27, with a record date of April 13 and an ex-dividend date also on April 13, ensuring shareholders receive their earnings promptly and reinforcing the relationship between the company and its investors.
- Future Outlook: Helios targets revenue between $820 million and $860 million for 2026, aiming for margin expansion through product innovation, which indicates the company's strong growth potential and strategic direction in a competitive market.
See More
Helios Technologies Sets 2030 Sales Target of $1.6 Billion with 25% EBITDA Margin
- 2030 Financial Targets: Helios Technologies has set a sales target of $1.6 billion for 2030, doubling its 2025 sales of approximately $792 million, indicating strong confidence in future growth potential and market expansion.
- Adjusted EBITDA Margin: The company anticipates an adjusted EBITDA margin exceeding 25% by 2030, representing significant progress in enhancing profitability and operational efficiency, which further boosts investor confidence.
- Dividend Increase: The Board of Directors approved a 33% increase in the quarterly dividend to $0.12 per share, reflecting confidence in the company's long-term growth and cash generation outlook while demonstrating a commitment to shareholder returns.
- New Product Innovation: In 2025, Helios launched 11 major new products and achieved a 100 basis point gross margin expansion through key initiatives like operational excellence and market transformation, showcasing the company's proactive strategy in product development and market competitiveness.
See More
Helios Technologies Sponsors Marine Science & Technology Digital Hub
- Collaborative Innovation: Helios Technologies has become the lead sponsor of the Marine Science & Technology Digital Hub at the new Mote Science Education Aquarium, highlighting its commitment to innovation and community engagement, which is expected to enhance the company's influence in environmental and educational sectors.
- Digital Resource Access: The Digital Hub will provide aquarium visitors with direct access to Mote's Cyber Library, encompassing scientific publications, educational resources, and archival collections, which is anticipated to attract more visitors and enhance public interest in marine science.
- Environmental Responsibility: Helios' sponsorship exemplifies its support for sustainable practices, aiming to leverage technology for environmental stewardship and educational impact, thereby further solidifying its leadership position in global markets.
- Future Outlook: The partnership with Mote will provide a platform for hundreds of thousands of visitors from around the world, driving environmental research and data-driven insights, inspiring the next generation of marine scientists, and enhancing the company's talent attraction in related fields.
See More
Helios Technologies Reports Q4 2025 Earnings Growth and Strategic Outlook
- Significant Sales Growth: Helios Technologies reported fourth-quarter sales of $211 million, a 17% increase year-over-year, with full-year sales reaching $839 million, marking the first annual growth in three years, indicating strong performance amid market recovery.
- Innovation-Driven Momentum: CEO Sean Bagan highlighted accelerated sales and orders in the second half of the year, attributed to effective go-to-market strategies and industry-leading innovative products, which are expected to further drive future sales growth.
- Improved Financial Health: The company generated a record free cash flow of $46 million in Q4, totaling $127 million for the year, with a net debt to adjusted EBITDA ratio of 1.8, showcasing effective financial management and stability.
- Optimistic Future Outlook: CFO Jeremy Evans outlined 2026 net sales guidance of $820 million to $860 million, with Q1 sales expected between $218 million and $223 million, reflecting the company's confidence in market recovery and sustained growth potential.
See More
