Helios Technologies Hits High-End Q2 Sales, Lifts FY2026 Outlook on Expanding Margins

summarizeSummary

Helios Technologies reported Q2 2026 results with sales at the high end of guidance and adjusted EPS above the top end, driven by 16% pro-forma sales growth and 280 bps of gross margin expansion. The company raised its full-year 2026 outlook for both sales and earnings, and established Q3 guidance above consensus.

check_boxKey Events · Earnings and Guidance · HLIO

• Q2 Sales at High End, EPS Beats

  Q2 sales of $231.9M grew 9% YoY (16% pro-forma), landing at the high end of guidance. Adjusted diluted EPS of $0.88 exceeded the top end of guidance and grew 49% YoY.

• Margin Expansion Accelerates

  Gross margin expanded 280 bps to 34.6%, driven by volume outperformance and operating leverage. Adjusted EBITDA margin reached 21.2%, up 260 bps YoY.

• Record Cash Flow, Leverage at Multi-Year Low

  Q2 operating cash flow of $42M was a second-quarter record, up 13% YoY. Net-debt-to-adjusted EBITDA leverage fell to 1.4x from 2.6x a year ago.

• FY2026 Outlook Raised

  Full-year sales guidance raised to $880-$900M (from $840-$870M) and adjusted diluted EPS to $3.05-$3.25 (from $2.75-$3.00). The midpoint implies the highest annual sales in company history.

auto_awesomeAnalysis · HLIO · Manufacturing

A strong second quarter saw Helios deliver sales at the high end of guidance and adjusted EPS above the top end. Gross margin expanded 280 bps to 34.6%, operating cash flow reached a Q2 record of $42M, and leverage fell to 1.4x. Management raised the full-year sales and EPS outlook, signaling confidence in sustained demand and operational execution. The midpoint of the new guidance implies the highest annual sales in company history. This is a clear positive signal for the stock, especially against a backdrop of recent insider selling and a prior equity plan expansion.