Helios Raises 2026 Sales Outlook After Record Third Quarter

The Tip Desk · November 7, 2026 · 3 min read

Third-quarter sales reached a record $229.7 million as the company lifted its full-year range to $895 million to $902 million.

Helios Technologies (HLIO), a global maker of motion control and electronic controls, reported third-quarter sales of $229.7 million, a third-quarter record that exceeded the high end of its prior outlook. The company raised its full-year 2026 sales range to $895 million to $902 million from $880 million to $900 million, implying its highest annual sales in history.

Year-over-year sales growth slowed to 4% from 9% in the second quarter. On a pro-forma basis the company said sales grew 13%, versus 16% in the second quarter. Chief Executive Officer Sean Bagan said both Hydraulics and Electronics contributed, and that the order book provides visibility into the fourth quarter.

Chief Financial Officer Jeremy Evans said third-quarter sales and adjusted diluted earnings per share exceeded the high end of guidance, partly due to the timing of customer orders driven by announced price increases. The company said it continues to expect fourth-quarter growth to moderate from the third-quarter pace.

Gross profit expanded $3.2 million from a year earlier, and gross margin was 33.2%, 10 basis points higher. Diluted earnings were $0.53 a share, up 71% from $0.31 a year earlier, when Electronics absorbed a $25.9 million goodwill impairment. Adjusted diluted EPS was $0.80, up 11%. Operating income was $28.1 million, or a 12.2% margin. Adjusted EBITDA was $46.5 million, with a 20.3% margin.

Hydraulics sales were $142.9 million. Americas Hydraulics rose 11% to $59.7 million and EMEA Hydraulics rose 9% to $45.0 million. APAC Hydraulics fell 18% to $38.2 million. Hydraulics gross margin was 32.3% and operating income was $24.7 million, a 17.3% margin.

Electronics sales were $86.8 million, up 10%. Americas Electronics rose 9% to $66.2 million and APAC Electronics rose 32% to $11.5 million. EMEA Electronics fell 7% to $9.1 million. Electronics gross margin was 34.7% and operating income was $12.4 million, a 14.3% margin, versus a $13.7 million operating loss a year earlier after the impairment.

Consolidated Americas sales were $125.9 million, 55% of the total. EMEA was $54.1 million, 24% of the total. APAC was $49.7 million, 22% of the total.

Cash from operations was a third-quarter record $40 million, up 59% from a year earlier. Free cash flow was $32 million. The company repurchased $19 million of common stock and paid its 119th consecutive cash dividend. Cash and cash equivalents were $72.6 million at October 3, 2026.

Helios closed a strategic acquisition in the quarter that expanded Electronics capabilities. Bagan said the company began a multi-year relationship with Indian Motorcycle, supported by the purchase of select Radio Sound assets, and completed Faster’s North American consolidation in Toledo, Ohio. Following quarter end, Faster secured its first thermal management order.

The company updated its 2026 adjusted EBITDA margin outlook to 20.2% to 20.4% and adjusted diluted EPS to $3.08 to $3.15. Fourth-quarter sales are expected at $205 million to $212 million, with adjusted EBITDA margin of 18.5% to 19.5% and adjusted diluted EPS of $0.60 to $0.67. Evans said the company expects the benefits of recent pricing actions to show more fully in 2027 and expects to realize cost synergies from the Radio Sound acquisition starting in early 2027.