Helios' Q2 Earnings & Revenues Beat Estimates, Increase Y/Y

Revenues came in at $231.9 million, up 9% year over year, and topped the consensus mark of $230.4 million by 0.7%. On a non-GAAP basis, Helios also emphasized that sales grew 16% on a pro forma basis, reflecting the divestiture of Custom Fluidpower (“CFP”) and the impact of foreign exchange. 

Reported sales were weighted to the Americas, which accounted for 52% of total revenues, while EMEA and APAC represented 26% and 22%, respectively. The top line exceeded expectations as both business segments contributed, with sales growth across the Americas and EMEA and overall APAC revenues also increasing year over year. 

Electronics segment’s sales increased 19% year over year to $85.5 million, driven by gains across all regions. Americas sales rose 17% to $63 million, EMEA revenues increased 7% to $9.1 million and APAC sales surged 43% to $13.4 million. Segment gross margin improved 530 bps to 34.6%, while operating income rose 90% to $11.2 million. 

Hydraulics segment’s sales rose 4% to $146.4 million. Americas sales increased 6% to $57.2 million and EMEA revenues advanced 12% to $51.8 million, while APAC sales declined 8% to $37.4 million. On a pro forma basis for the CFP divestiture, APAC Hydraulics sales increased year over year. Segment gross margin increased 160 bps to 34.6%, and operating income rose 16% to $28.9 million.

Margin Performance

Gross profit rose 19%, with the gross margin expanding 280 basis points to 34.6%, supported by higher volume, favorable segment mix, the CFP divestiture and a benefit from IEEPA tariff refunds. Operating income increased 48% to $32.5 million, with operating margin improving 370 basis points (bps) to 14.0%. 

Adjusted EBITDA margin expanded 260 bps year over year to 21.2%, reflecting gross margin expansion and operating expense leverage, partly offset by research and development investments, employee benefit-related costs and an isolated bad debt expense. Management also highlighted record second-quarter operating cash generation.

Balance Sheet and Cash Flow

In the first six months of 2026, Helios generated net cash of $65.8 million from operating activities compared with $56 million in the year-ago period. Capital expenditure totaled $18 million in the same period, up 56.5% year over year. Free cash flow was $47.8 million in the first six months. 

Exiting the first six months of 2026, the company had long-term non-revolving debt of $226.1 million, down from $256.2 million at the end of 2025. Net debt-to-adjusted EBITDA improved to 1.4x compared with 2.6x in the year ago period, underscoring continued progress on deleveraging. Helios exited the period with cash and cash equivalents of $68 million compared with $73 million at the end of 2025. 

The company maintained its quarterly dividend at 12 cents per share and paid its 118th consecutive quarterly dividend during the second quarter. Helios also repurchased 149,000 shares for $10.6 million during the first six months of 2026.

Guidance

For 2026, Helios raised its revenue outlook to $880-$900 million from $840-$870 million. The company now projects an adjusted EBITDA margin of 20.2-21.0%, compared with 19.5-21.0% previously, and non-GAAP earnings per share of $3.05-$3.25, up from $2.75-$3.00. 

For third-quarter 2026, the company issued an outlook calling for revenues of $215-$222 million, adjusted EBITDA margin of 19.8-20.6% and adjusted earnings of 70-77 cents per share.

HLIO’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Constellium SE CSTM came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.

Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.

Generac Holdings Inc. GNRC came out with quarterly earnings of $2.91 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.95 per share. This compares with earnings of $1.65 per share a year ago.

Generac Holdings posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.37%. This compares with year-ago revenues of $1.06 billion.

Graco Inc. GGG reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.

The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025.

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