Helios Technologies Reports Third Quarter 2026 Results; Consistent Execution Drives Record Third Quarter Sales and Increased Full Year 2026 Sales Outlook
HELIOS TECHNOLOGIES, INC. (HLIO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 NEWS RELEASE 35 m+ FOR IMMEDIATE RELEASE Helios Technologies Reports Third Quarter 2026 Results; Consistent Execution Drives Record Third Quarter Sales and Increased Full Year 2026 Sales Outlook • Grew 3Q26 sales to a third quarter record $230 million, up 4% over pri
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance are likely to attract buying interest, especially from investors focused on industrial automation.
Market read
The release provides fresh, material information that can move HLIO's price in the near term.
What to watch
Potential supply‑chain constraints and tariff exposure could limit upside.
Helios Technologies Reports Third Quarter 2026 Results; Consistent Execution Drives Record Third Quarter Sales and Increased Full Year 2026 Sales Outlook
Third-quarter sales, GAAP diluted EPS, adjusted diluted EPS and operating cash flow increased from the prior-year period, while the Company raised its full-year sales outlook. Adjusted EBITDA margin declined 20 basis points, Hydraulics sales increased 1%, and the fourth-quarter outlook calls for sales of $205 to $212 million and adjusted EBITDA margin of 18.5% to 19.5%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net salesGAAP | $229.7M | – | 4 % |
| Q3 2026 gross profitGAAP | $76.2M | – | 4 % |
| Q3 2026 gross marginGAAP | 33.2 % | – | 10 bps |
| Q3 2026 selling, engineering and administrative expenseGAAP | $40.6M | – | 6 % |
| Q3 2026 amortization of intangible assetsGAAP | $7.5M | – | (1 )% |
| Q3 2026 goodwill impairmentGAAP | - | – | (100 )% |
| Q3 2026 operating incomeGAAP | $28.1M | – | 2,062 % |
| Q3 2026 operating marginGAAP | 12.2 % | – | 1160 bps |
| Q3 2026 adjusted operating incomenon-GAAP | $38.1M | – | – |
| Q3 2026 adjusted operating marginnon-GAAP | 16.6 % | – | 0 bps |
| Q3 2026 interest expense, netGAAP | $4.7M | – | (32 )% |
| Q3 2026 foreign currency transaction loss, netGAAP | −$400K | – | (167 )% |
| Q3 2026 other non-operating (income) expense, netGAAP | $300K | – | (102 )% |
| Q3 2026 income before income taxesGAAP | $23.5M | – | 84 % |
| Q3 2026 income tax provisionGAAP | $5.9M | – | 136 % |
| Q3 2026 net incomeGAAP | $17.6M | – | 71 % |
| Q3 2026 diluted EPSGAAP | $0.53 | – | 71 % |
| Q3 2026 basic EPSGAAP | $0.54 | – | 74 % |
| Q3 2026 adjusted net incomenon-GAAP | $26.3M | – | 10 % |
| Q3 2026 adjusted diluted EPSnon-GAAP | $0.80 | – | 11 % |
| Q3 2026 adjusted EBITDAnon-GAAP | $46.5M | – | 3 % |
| Q3 2026 adjusted EBITDA marginnon-GAAP | 20.3 % | – | (20 ) bps |
| Q3 2026 net cash provided by operating activitiesGAAP | $40M | – | – |
| Q3 2026 capital expendituresother | $7.5M | – | – |
| Q3 2026 free cash flownon-GAAP | $32.5M | – | – |
| Nine months 2026 net salesGAAP | $690M | – | 10 % |
| Nine months 2026 gross profitGAAP | $231.3M | – | 15 % |
| Nine months 2026 gross marginGAAP | 33.5 % | – | – |
| Nine months 2026 operating incomeGAAP | $90.5M | – | 125 % |
| Nine months 2026 operating marginGAAP | 13.1 % | – | – |
| Nine months 2026 net incomeGAAP | $59.2M | – | 105 % |
| Nine months 2026 diluted EPSGAAP | $1.79 | – | 106 % |
| Nine months 2026 adjusted net incomenon-GAAP | $82.1M | – | – |
| Nine months 2026 adjusted diluted EPSnon-GAAP | $2.48 | – | – |
| Nine months 2026 adjusted EBITDAnon-GAAP | $142.3M | – | – |
| Nine months 2026 adjusted EBITDA marginnon-GAAP | 20.6 % | – | – |
| Nine months 2026 net cash provided by operating activitiesGAAP | $105.7M | – | – |
| Nine months 2026 capital expendituresGAAP | −$25.5M | – | – |
| Cash and cash equivalents as of October 03, 2026GAAP | $72.6M | – | – |
| Total debt as of October 03, 2026other | $327.5M | – | – |
| Net debt as of October 03, 2026non-GAAP | $254.9M | – | – |
| Net debt to TTM adjusted EBITDA as of October 03, 2026non-GAAP | 1.4 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Hydraulics Q3 2026Americas net sales were $59.7 million, up 11 %; EMEA net sales were $45.0 million, up 9 %; APAC net sales were $38.2 million, down (18 %). Gross margin was 32.3 % versus 32.5 %, and operating margin was 17.3 % versus 17.2 %. | $142.9M | – | 1 % |
| Electronics Q3 2026Americas net sales were $66.2 million, up 9 %; EMEA net sales were $9.1 million, down (7 %); APAC net sales were $11.5 million, up 32 %. Gross margin was 34.7 % versus 34.3 %, and operating margin was 14.3 % versus -17.5 %. | $86.8M | – | 10 % |
| Hydraulics nine months 2026Gross profit was $141.0 million versus $129.8 million. Gross margin was 32.9 % versus 31.8 %. Operating income was $76.9 million versus $66.7 million, and operating margin was 17.9 % versus 16.3 %. | $428.5M | – | – |
| Electronics nine months 2026Gross profit was $90.3 million versus $70.5 million. Gross margin was 34.5 % versus 32.1 %. Operating income was $37.8 million versus $0.2 million, and operating margin was 14.5 % versus 0.1 %. | $261.5M | – | – |
FY2026 and 4Q26 Outlook as of November 5, 2026 outlook
- RevenueFY2026 sales: $895 to $902 million; 4Q26 sales: $205 to $212 million
- NoteFY2026 adjusted EBITDA margin: 20.2% to 20.4%
- Note4Q26 adjusted EBITDA margin: 18.5% to 19.5%
- NoteFY2026 adjusted diluted EPS: $3.08 to $3.15
- Note4Q26 adjusted diluted EPS: $0.60 to $0.67
- NoteOutlook assumes constant currency, based on ending third quarter 2026 foreign exchange rates.
Capital returns
- Repurchased $19 million of Company's common stock in the 3Q26.
- Treasury stock purchases for the nine months ended October 03, 2026 were $(30.1) million, compared with $(9.2) million for the nine months ended September 27, 2025.
- Paid 119th consecutive cash dividend.
- Dividends declared per share for the three months ended October 03, 2026 were $0.12, compared with $0.09.
- Dividends paid to shareholders for the nine months ended October 03, 2026 were $(10.9) million, compared with $(9.0) million.
What drove it
- Q3 sales grew 13 % on a pro-forma basis; Hydraulics grew 15 % and Electronics grew 9 % on a pro-forma basis.
- Management said third-quarter sales and adjusted diluted EPS exceeded the high end of guidance partially due to timing of customer orders driven by announced price increases.
- The Company completed Faster’s North American consolidation in Toledo, Ohio and advanced footprint optimization initiatives intended to increase productivity, strengthen regional capabilities and reduce tariff exposure.
- The Company acquired select Radio Sound assets, expanding audio and communications capabilities, and began a multi-year relationship with Indian Motorcycle.
- Following quarter end, Faster secured its first thermal management order.
- Management expects benefits from recent pricing actions to show more fully in 2027 and expects Radio Sound acquisition cost synergies starting in early 2027.
Concerns
- Adjusted EBITDA margin was 20.3 % in Q3 2026 versus 20.5 % in Q3 2025.
- Hydraulics Q3 2026 sales increased 1 %, with APAC net sales down (18 %).
- Electronics segment operating expenses increased 19 % to $17.7 million.
- Management cited persistent inflationary pressures, a dynamic supply environment and an inflationary cost environment.
- The 4Q26 outlook calls for adjusted EBITDA margin of 18.5% to 19.5%, compared with 20.3 % in Q3 2026.
What to watch
- Fourth-quarter sales outlook of $205 to $212 million and adjusted diluted EPS outlook of $0.60 to $0.67.
- Full-year sales outlook of $895 to $902 million, raised from $880 to $900 million.
- Execution of price actions, which management expects to show more fully in 2027.
- Timing and realization of Radio Sound acquisition cost synergies, expected starting in early 2027.
- Hydraulics APAC demand and the pace of growth moderation management expects in the fourth quarter.
- Progress in thermal management following Faster’s first order after quarter end.
Balance sheet and cash flow
- Cash and cash equivalents were $72.6 million as of October 03, 2026, compared with $73.0 million as of January 03, 2026.
- Revolving lines of credit were $101.3 million and long-term non-revolving debt, net was $226.2 million as of October 03, 2026.
- Total assets were $1,514.2 million, total liabilities were $573.5 million, and total shareholders’ equity was $940.7 million as of October 03, 2026.
- Nine-month net cash provided by operating activities was $105.7 million, compared with $81.3 million.
- Nine-month net cash used in investing activities was $(29.0) million, compared with $(21.6) million.
- Nine-month net cash used in financing activities was $(76.5) million, compared with $(51.1) million.
- TTM adjusted EBITDA was $184.6 million as of October 03, 2026, compared with $149.6 million as of September 27, 2025.
Analysis
Helios reported third-quarter net sales of $229.7 million, up 4 % from $220.3 million, and described the result as a third-quarter record. The Company also reported 13 % pro-forma sales growth. Hydraulics sales increased 1 % to $142.9 million, while Electronics sales increased 10 % to $86.8 million. Within Hydraulics, Americas and EMEA sales increased 11 % and 9 %, respectively, but APAC sales declined (18 %). Electronics growth included a 32 % increase in APAC sales.
Profitability improved sharply on a GAAP basis, primarily against a prior-year quarter that included $25.9 million of goodwill impairment. Operating income was $28.1 million versus $1.3 million, net income was $17.6 million versus $10.3 million, and diluted EPS was $0.53 versus $0.31. Adjusted operating margin was unchanged at 16.6 %. Adjusted EBITDA margin was 20.3 %, down from 20.5 %, while gross margin improved 10 basis points to 33.2 %.
Cash generation strengthened. Third-quarter net cash provided by operating activities was $40.0 million, compared with $25.3 million, and free cash flow was $32.5 million compared with $18.6 million. The Company repurchased $19 million of common stock in the quarter and paid its 119th consecutive cash dividend. As of October 03, 2026, cash and cash equivalents were $72.6 million, total debt was $327.5 million, and net debt to TTM adjusted EBITDA was 1.4.
The Company raised FY2026 sales outlook to $895 to $902 million from its August 10, 2026 outlook of $880 to $900 million. It tightened adjusted EBITDA margin guidance to 20.2% to 20.4% from 20.2% to 21.0% and adjusted diluted EPS guidance to $3.08 to $3.15 from $3.05 to $3.25. Fourth-quarter outlook calls for sales of $205 to $212 million, adjusted EBITDA margin of 18.5% to 19.5%, and adjusted diluted EPS of $0.60 to $0.67.
Management attributed the third-quarter outperformance partly to customer-order timing tied to announced price increases and expects fourth-quarter growth to moderate. The Company highlighted the Radio Sound asset acquisition, Faster’s North American consolidation and the first thermal-management order secured after quarter end. Management expects the benefits of pricing actions to show more fully in 2027 and Radio Sound acquisition cost synergies to start in early 2027.
Management, verbatim
We delivered a record third quarter, with sales above the high end of our outlook and adjusted earnings exceeding expectations. Both Hydraulics and Electronics contributed to the performance, demonstrating the breadth of our growth and the effectiveness of our customer-focused commercial strategy.
Sean Bagan, President & Chief Executive Officer
Our order book provides solid visibility as we enter the fourth quarter, while our teams continue to execute through persistent inflationary pressures and a dynamic supply environment.
Sean Bagan, President & Chief Executive Officer
Third quarter sales and adjusted diluted EPS exceeded the high end of our guidance range partially due to timing of customer orders driven by announced price increases.
Jeremy Evans, Executive Vice President, Chief Financial Officer
Not in the filing
stated, not guessed- Standalone previous-release outlook section was not provided; therefore, no formal actual-versus-prior-guidance comparison is presented.
- Q3 2026 effective tax rate was not reported.
- Q3 2026 operating cash flow and free cash flow percentage changes were not printed in the financial tables.
- Forward-looking gross margin, operating expenses and tax rate guidance were not provided.
- Q3 2026 cash balance prior-year comparison was not reported.
- Q3 2026 debt balance prior-quarter comparison was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Helios Technologies (NYSE: HLIO) filed a Form 8‑K reporting its Q3 2026 results, highlighting record sales and a higher FY2026 outlook.
Ticker impact
Helios reported record Q3 sales of $230M, EPS $0.53 and raised FY2026 sales outlook, indicating stronger growth.
likely upward pressure as investors price in higher sales outlook
The company delivered better-than-expected results and increased its full-year sales guidance, which typically supports a price rally.
Market effects
Strengthens the motion‑control and industrial electronics sector outlook.
Positive for U.S. industrial manufacturers.
Modest, limited to industrial technology investors.
Counterpoint
If the raised outlook is already priced in, the stock may face a short‑term pull‑back.
Key entities
- companyHelios Technologies, Inc.
Industrial motion‑control and electronics manufacturer.
