Helios Technologies (HLIO) investor relations material

Executive summary

• First quarter 2026 sales reached $228 million, up 17% year-over-year and 23% pro forma, exceeding guidance and driven by both Hydraulics and Electronics segments across all regions.

• Delivered record cash generation and highest-ever quarterly sales for Enovation Controls, with strong execution of the CORE 2030 strategy targeting 5%+ annual organic sales growth and margin expansion.

• Increased regular dividend by 33% (first increase in 29 years) and reduced net leverage to 1.6x net debt to adjusted EBITDA, the lowest since Q1 2018.

• 1Q26 results exceeded or met the top end of outlook, with a strong balance sheet and continued share repurchases.

• Restructuring and production optimization continued, including leadership transitions and consolidation of operations.

Financial highlights

• Net sales grew 17% year-over-year to $228.4 million; gross profit up 25% to $74.9 million, with gross margin expanding 220 bps to 32.8%.

• Operating income increased 76% to $29.9 million; operating margin up 440 bps to 13.1%.

• Adjusted EBITDA margin reached 20.4%, up 310 bps; diluted EPS was $0.59 (up 168%), and non-GAAP/adjusted EPS was $0.80 (up 82%).

• Net income for Q1 2026 was $19.7 million, up 170% year-over-year.

• Generated $24 million in operating cash and $17 million in free cash flow, both first quarter records.

Outlook and guidance

• Raised full-year 2026 sales outlook to $840–$870 million, implying 8% pro forma growth at midpoint; adjusted EBITDA margin guided at 19.5%–21%.

• Non-GAAP/adjusted EPS expected at $2.70–$3.00 (up to 17% growth); Q2 sales expected at $227–$232 million, with Q2 non-GAAP EPS of $0.78–$0.83.

• Hydraulics sales expected at $520–$535 million (up 7–8%); Electronics at $320–$335 million (up 10–12%).

• Capital expenditures for 2026 forecasted at 3.8–4.8% of sales.

• Management expects challenging macroeconomic conditions to persist, with inflation, geopolitical risks, and tariff uncertainties impacting operations.