Helios Technologies, Inc. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Helios Technologies reported second quarter 2026 sales of $232 million, a 9% increase year over year and at the high end of guidance, with pro forma sales up 16% after adjusting for divestitures and foreign exchange.
- Gross profit rose 19% to $80 million, with gross margin expanding 280 basis points to 34.6%, marking the fourth consecutive quarter of margin expansion.
- Operating income increased 48% to $33 million, and adjusted EBITDA grew 25% to $49 million, with adjusted EBITDA margin above 20% for the fourth straight quarter.
- Diluted EPS was $0.66, up 94%, and adjusted diluted EPS was $0.88, up 49%, exceeding guidance by $0.05 per share.
- Hydraulics segment sales were $146 million, up 14% year over year, with strong growth in the Americas, EMEA, and APAC, especially in construction and agriculture markets.
- Electronics segment sales were $86 million, up 19%, driven by growth in recreational, health and wellness, mobile, and industrial markets, despite softness in core and marine markets.
- Helios generated record operating cash flow of $42 million and free cash flow of $31 million in the quarter, with capital expenditures of $11 million reflecting increased strategic investments.
- The company reduced net debt to $264 million, with a net debt to adjusted EBITDA leverage ratio of 1.4 times, below the target range of 1.5 to 2.5 times.
- Helios returned $18 million to shareholders year to date through dividends and share repurchases, up 40% versus the prior year.
- Management highlighted completion of the business stabilization phase and transition to sustained profitable growth supported by new business wins, operational improvements, and strong cash flow.
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Transcript
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Greetings, and welcome to the Helios Technologies second quarter 2026 financial results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Tania Almond, Vice President, Investor Relations and Corporate Communications.
Please go ahead. Thank you, operator, and good day, everyone.
Welcome to the Helios Technologies second quarter 2026 financial results conference call. We issued a press release announcing our results yesterday afternoon. If you do not have that release, it is available on our website at heliostechnologies.com. You will also find slides there that accompany today's discussion as well as our prepared remarks. Joining me today are Sean Bagan, President and Chief Executive Officer, and Jeremy Evans, Executive Vice President, Chief Financial Officer. Sean will begin the highlights from the second quarter. Jeremy will then review our financial results in more detail and provide our outlook for the rest of the year. Sean will return with some closing comments, and then we will open the call for questions. Before we get started, please turn to Slide 2, where you will find our safe harbor statement.
As you may be aware, we will make some forward-looking statements during this presentation and the Q&A session. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ materially from those presented today. These risks and uncertainties and other factors can be found in our annual report on Form 10-K for 2025, along with our upcoming 10-Q to be filed with the Securities and Exchange Commission. You can find these documents on our website or at sec.gov. I will also point out that during today's call, we will discuss some non-GAAP financial measures which we believe are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP.
We have provided reconciliations of comparable GAAP with non-GAAP measures in the tables that accompany today's slides. Please reference Slides 3 through 5 as I now turn the call over to Sean.
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