10-Q · May 12, 2026
Helios Technologies reported strong Q1 2026 results with revenue of $228.4 million, up 16.8% year-over-year, and earnings per share of $0.80, significantly surpassing expectations. The company's Hydraulics and…
Earnings analysis · 10-Q
HLIO earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
Helios delivered Q2 revenue of $231.9 million and adjusted diluted EPS of $0.88, beating consensus estimates of $230.5 million and $0.80. Gross margin rose to 34.6% and free cash flow was $31 million, while revenue and…
Read full summary
Helios delivered Q2 revenue of $231.9 million and adjusted diluted EPS of $0.88, beating consensus estimates of $230.5 million and $0.80. Gross margin rose to 34.6% and free cash flow was $31 million, while revenue and EPS also improved materially year over year. Management raised FY2026 revenue guidance to $880 million-$900 million and adjusted diluted EPS guidance to $3.05-$3.25, although $332.3 million of variable-rate debt creates meaningful interest-rate sensitivity.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.88
- Gross margin
- 34.6%
What stood out
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Revenue exceeded estimates and prior periods
Revenue was $231.9 million, up 1.7% from $228 million in Q1 2026 and 8.9% from $213 million in Q2 2025. Sales exceeded the $230.5 million consensus estimate by approximately $1.4 million.
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Gross margin expanded materially
Gross margin expanded to 34.6%, up 180 basis points from 32.8% in Q1 2026 and 280 basis points from 31.8% in Q2 2025.
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EPS growth and beat were strong
Adjusted diluted EPS was $0.88 versus $0.59 in Q1 2026 and $0.34 in Q2 2025, increases of approximately 49% and 159%, respectively. EPS exceeded the $0.80 consensus estimate by $0.08.
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Cash generation improved sequentially
Free cash flow was $31 million, compared with $17 million in Q1 2026 and $32 million in Q2 2025, representing a $14 million sequential improvement while remaining $1 million below the prior-year quarter.
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Full-year outlook was raised
Management raised FY2026 revenue guidance to $880 million-$900 million from $840 million-$870 million and adjusted diluted EPS guidance to $3.05-$3.25 from $2.75-$3.00.
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Share repurchases continued
The company repurchased 79,378 shares during Q2 2026 at an average price of $76.52, leaving $75.9 million available under the repurchase authorization as of July 4, 2026.
What to watch
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Variable-rate debt creates interest exposure
Variable-rate borrowings totaled $332.3 million as of July 4, 2026, including $105.4 million under the revolving facility and $226.9 million under term loans. A 1-percentage-point change in average rates would affect annual financing costs by approximately $3.6 million.
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Risk factors unchanged, leverage remains material
The 10-Q states that there were no material changes to the risk factors from the Form 10-K, but the company remains exposed to $332.3 million of variable-rate debt and related financing-cost volatility.
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Buybacks compete with liquidity priorities
The company repurchased 79,378 shares during the quarter and had $75.9 million remaining under its $100.0 million authorization as of July 4, 2026; continued buybacks could reduce liquidity available for debt reduction or investment.
Management's outlook
FY2026 sales guidance was raised to $880 million-$900 million from $840 million-$870 million, and adjusted diluted EPS guidance was raised to $3.05-$3.25 from $2.75-$3.00. FY2026 adjusted EBITDA margin guidance increased to 20.2%-21.0% from 19.5%-21.0%. Third-quarter 2026 outlook is sales of $215 million-$222 million and adjusted diluted EPS of $0.70-$0.77.
Earlier filings 4
10-K · March 3, 2026
Helios positions itself as a diversified, engineering-led supplier of hydraulic and electronic motion-control systems focused on innovation, operational speed and M&A optionality. The company completed the divestiture…
10-Q · November 4, 2025
Helios reported Q3 net sales of $220.3M, up from $194.5M in Q3 2024, with gross profit improving to $73.0M (≈33.1% margin). Results were distorted by a $25.9M goodwill impairment and a CFP divestiture gain (pre-tax…
10-Q · May 7, 2025
Helios Technologies reported first-quarter 2025 results with a revenue of $195.5 million, slightly down from $212 million in the same period last year but up from $180 million in the previous quarter. EPS was reported…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.