HLIO · Helios Technologies, Inc.

Helios Technologies delivered exceptional Q1 2026 results, with consolidated net sales reaching $228.4 million, a 17% increase over the prior year, and 23% growth on a pro forma basis adjusting for the Custom Fluidpower divestiture and foreign exchange impacts. Electronics segment sales surged 29% to $89.2 million, driven by strong performance across all regions, while Hydraulics grew 10% to $139.2 million, with notable 30% expansion in EMEA offsetting APAC softness. Gross margin expanded 220 basis points to 32.8%, attributed to higher volumes, favorable segment mix, and cost efficiencies from in-region production optimization. Operating income rose 76% to $29.9 million, with adjusted EBITDA up 38% to $46.5 million at a 20.4% margin. CEO Sean Bagan highlighted the global team's execution amid geopolitical volatility, record Electronics performance via Enovation Controls, and progress on The CORE Strategy toward 2030 targets. CFO Jeremy Evans noted solid execution against priorities, enabling raised full-year guidance to $840-870 million in sales and $2.75-3.00 adjusted diluted EPS, plus strong Q2 outlook. Balance sheet strength improved with net debt at $284 million and leverage at 1.6x, the lowest since 1Q18, supporting capital returns including a 33% dividend hike—marking 29+ years of payments—and $4.6 million in share repurchases. Record $24 million operating cash flow and $17 million free cash flow underscore operational excellence, positioning Helios for sustained growth across diverse end markets.