HLIO earnings analysis
What we found in HLIO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.88
- Gross margin
- 34.6%
What they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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