Helios Technologies (HLIO) Q3 2026 earnings summary

Executive summary

• Record Q3 sales of $229.7M, up 4.3% reported and 13% pro forma; both segments grew, and sales, adjusted EPS and operating cash flow exceeded outlook.

• FY26 sales outlook increased to $895M–$902M, with the low end above the prior annual sales record.

• Five consecutive quarters of double-digit pro forma sales and adjusted EPS growth; focus remains on disciplined execution and sustainable profitable growth.

Financial highlights

• Q3 gross profit increased 4.4% to $76.2M; gross margin expanded 10 bps to 33.2%.

• Operating income was $28.1M vs. $1.3M, including the prior-year $25.9M goodwill impairment; adjusted operating income rose 4% to $38.1M, with a 16.6% margin.

• Adjusted EBITDA increased 3% to $46.5M; margin was 20.3% vs. 20.5%. Diluted EPS rose 71% to $0.53 and adjusted diluted EPS increased 11% to $0.80.

• Net income was $17.6M vs. $10.3M; 9M net income reached $59.2M vs. $28.9M, with diluted EPS of $1.79 vs. $0.87.

• Operating cash flow reached a Q3 record $40.0M, up 59%; free cash flow was $32.5M, up 75% YoY.

Outlook and guidance

• FY26 sales guidance is $895M–$902M, representing 13% pro forma growth at midpoint; adjusted EBITDA margin is 20.2%–20.4% and adjusted diluted EPS is $3.08–$3.15.

• FY26 Hydraulics sales guidance is $564M–$568M, or 15% pro forma growth at midpoint; Electronics is $331M–$334M, or 12% growth at midpoint.

• Q4 sales outlook is $205M–$212M; adjusted EBITDA margin is 18.5%–19.5% and adjusted diluted EPS is $0.60–$0.67.

• Q4 growth is expected to moderate amid tougher comparisons and last year’s extra shipping week; Radio Sound integration costs are expected in Q4, with synergies starting in early 2027.

• Long-term targets remain 5%+ organic growth CAGR through 2030 and average annual margin expansion of 100+ bps; FY26 double-digit pro forma growth is not viewed as the annual run rate.