Helios Technologies (HLIO) investor relations material

Executive summary

• Achieved Q2 2026 sales of $231.9M–$232M, up 9%–9.1% year-over-year, with both Hydraulics and Electronics segments delivering double-digit pro forma growth and strong demand across mobile, recreational, agriculture, and health and wellness markets.

• Gross profit rose 18.8%–19% to $80M–$80.2M, with gross margin expanding 280 bps to 34.6%; operating income grew 48%–48.4% to $32.5M–$33M.

• Diluted EPS increased 94% to $0.66; adjusted diluted EPS up 49% to $0.88.

• Record Q2 operating cash flow of $42M (+13% YoY) and free cash flow of $31M; leverage ratio at multi-year low.

• Four consecutive quarters of double-digit pro forma sales and adjusted earnings growth.

Financial highlights

• Q2 2026 net sales: $231.9M–$232M (+9%–9.1% YoY); gross profit: $80M–$80.2M (+18.8%–19% YoY); operating income: $32.5M–$33M (+48%–48.4% YoY); net income: $21.9M–$22M (+92%–92.1% YoY).

• Adjusted EBITDA reached $49M–$49.3M (21.2% margin), up 25% YoY.

• Operating margin expanded to 14% GAAP (+370 bps YoY) and 17.8% non-GAAP.

• Net debt-to-adjusted EBITDA leverage ratio improved to 1.4x from 2.6x YoY.

• Record Q2 operating cash flow of $42M and free cash flow of $31M; CapEx was $11M (4.9% of sales).

Outlook and guidance

• Raised FY2026 sales outlook to $880M–$900M (+11%–14% YoY), with adjusted EBITDA margin of 20.2%–21% and adjusted diluted EPS of $3.05–$3.25.

• Q3 2026 guidance: sales of $215M–$222M (+6%–9% YoY), adjusted EBITDA margin 19.8%–20.6%, adjusted diluted EPS $0.70–$0.77.

• Net income for FY26 expected at $75M–$81M, up from prior $67M–$75M.

• CapEx for 2026 forecasted at 3.8%–4.9% of sales, focused on machinery, technology, and manufacturing improvements.

• Liquidity remains strong, with $68M in cash and $393.8M–$394M in available credit at quarter-end.