Nov 5, 2026, 4:57 PM ETIndustrials

Helios Technologies — Third Quarter 2026 Earnings Summary

HLIOHELIOS TECHNOLOGIES INC

Financial Performance

Reported third quarter 2026 net sales of $229.7 million, a 4% increase year-over-year, or 13% growth on a pro-forma basis.
Consolidated gross profit increased by $3.2 million to $76.2 million, with a gross margin of 33.2%, up 10 basis points from the prior year period.
GAAP diluted earnings per share (EPS) reached $0.53, a 71% increase from $0.31 in the prior year period.
Non-GAAP adjusted diluted EPS was $0.80, representing an 11% increase from $0.72 in the prior year period.
Generated record third quarter cash from operations of $40 million, up 59% year-over-year, and free cash flow of $32.5 million.
Adjusted EBITDA for the quarter was $46.5 million, up 3% year-over-year, with an adjusted EBITDA margin of 20.3%.
Net income for the quarter was $17.6 million, up 71% from $10.3 million in the prior year period.
Net debt-to-Adjusted EBITDA ratio improved to 1.4x as of October 3, 2026, down from 2.4x in the prior year period.

Raised full-year 2026 sales outlook to $895 million to $902 million, implying the highest annual sales in the company's history.
Tightened full-year 2026 adjusted EBITDA margin guidance to 20.2% to 20.4% (previously 20.2% to 21.0%).
Tightened full-year 2026 adjusted diluted EPS guidance to $3.08 to $3.15 (previously $3.05 to $3.25).
Established fourth quarter 2026 sales outlook of $205 million to $212 million.
Set fourth quarter 2026 adjusted EBITDA margin guidance at 18.5% to 19.5%.
Set fourth quarter 2026 adjusted diluted EPS guidance at $0.60 to $0.67.
Management expects fourth quarter growth to moderate compared to the third quarter pace.
Anticipates benefits from recent pricing actions to show more fully in 2027.
Expects to realize cost synergies from the Radio Sound acquisition starting in early 2027.

Hydraulics Segment: Reported segment sales of $142.9 million, up 1% year-over-year. Gross margin was 32.3%, down 20 basis points. Operating margin was 17.3%, up 10 basis points.
Electronics Segment: Reported segment sales of $86.8 million, up 10% year-over-year. Gross margin was 34.7%, up 40 basis points. Operating margin was 14.3%, compared to a loss of 17.5% in the prior year period.
Acquisitions: Closed a strategic acquisition in the third quarter expanding Electronics capabilities; began a multi-year relationship with Indian Motorcycle supported by the acquisition of select Radio Sound assets.
Product Milestones: Secured Faster's first thermal management order following the quarter end.
Operational Initiatives: Completed Faster's North American consolidation in Toledo, Ohio, and advanced footprint optimization initiatives to increase productivity and reduce tariff exposure.

Sales growth was driven by timing of customer orders associated with announced price increases.
The company continues to execute a disciplined market-entry strategy in the data center market.
Management noted persistent inflationary pressures and a dynamic supply environment.
The company operates in diverse end markets including agriculture, construction, data centers, energy, health and wellness, industrial, marine, material handling, and recreational vehicles.

Forward-looking statements highlight risks including global economic trends, cyclical nature of business, and changes in customer demand.
Potential supply chain disruptions and inability to procure goods are cited as risks.
Macroeconomic factors such as interest rates, inflation, exchange rates, and trade policy/tariffs could materially impact results.
Risks related to geopolitical conflicts in Ukraine and the Middle East, as well as new product introductions and market acceptance.
Potential inability to control costs or meet liquidity needs in a dynamic macro environment.

President & CEO Sean Bagan described the quarter as a "record third quarter" with sales above the high end of the outlook and adjusted earnings exceeding expectations.
Management highlighted the effectiveness of the customer-focused commercial strategy and the breadth of growth across both Hydraulics and Electronics segments.
CFO Jeremy Evans stated that the results reflect continued progress against 2026 financial priorities and noted the company remains disciplined while navigating a dynamic macro environment.
Management emphasized the translation of "The CORE Strategy" into tangible commercial and operational progress.

Repurchased $19 million of the company's common stock during the third quarter.
Paid the 119th consecutive quarterly cash dividend.
The company has paid a cash dividend every quarter since becoming a public company in 1997.
Nine-month 2026 consolidated net sales were $690.0 million, up 10% year-over-year.
Nine-month 2026 GAAP operating income was $90.5 million, up 125% from $40.3 million in the prior year period.
Nine-month 2026 non-GAAP adjusted diluted EPS was $2.48, up from $1.75 in the prior year period.
The company holds a conference call and webcast scheduled for November 6, 2026, at 9:00 a.m. Eastern Time.