Helios Technologies, Inc. reported a significant increase in financial performance for the first quarter of 2026, with net sales reaching $228.4 million, a 16.8% increase from $195.5 million in the same period last year. The company's gross profit also rose to $74.9 million, up 25% from $59.9 million, resulting in a gross margin improvement to 32.8%. Operating income surged to $29.9 million, a 75.9% increase compared to $17.0 million in the prior year, while net income rose to $19.7 million, reflecting a 169.9% increase from $7.3 million. The diluted earnings per share increased to $0.59 from $0.22.
The company experienced notable changes in its financial metrics compared to the previous fiscal period. The increase in net sales was attributed to heightened demand across various end markets, including agriculture, health and wellness, and industrial sectors. However, sales in the Asia-Pacific (APAC) region declined, primarily due to the divestiture of Custom Fluidpower Pty. Ltd. (CFP), which had contributed $14.2 million in sales in the first quarter of 2025. Excluding this divestiture, sales in the APAC region would have shown an increase.
Strategically, Helios Technologies has been active in restructuring its operations. The company initiated optimization activities in early 2026, consolidating its North American operations and moving production activities to its low-cost manufacturing center in Tijuana, Mexico. These changes are expected to enhance operational efficiencies and reduce costs. The company also reported a restructuring cost of $0.6 million for the first quarter of 2026, compared to $0.3 million in the same period last year.
Operationally, Helios Technologies reported a cash flow from operating activities of $23.9 million, an increase from $19.0 million in the prior year. The company ended the quarter with $64.2 million in cash and cash equivalents and $395.4 million available under its revolving credit facilities. The total employee headcount remained stable, with no significant changes reported. The company continues to focus on maintaining liquidity and managing costs amid ongoing economic uncertainties and geopolitical challenges.
Looking ahead, Helios Technologies remains optimistic about its growth prospects, despite the challenges posed by inflationary pressures and geopolitical tensions. The company plans to leverage its diversified product offerings and global presence to navigate these conditions effectively. Management emphasized the importance of operational efficiency and cost management as key strategies to mitigate risks associated with the current economic landscape.
About HELIOS TECHNOLOGIES, INC.
Helios Technologies, Inc. is a global provider of engineered motion control and electronic control solutions for markets including construction, agriculture, industrial, marine, aerospace, and health. Its core segments—Hydraulics and Electronics—offer hydraulic components, system solutions, displays, controls, and software. The company focuses on innovation, quality, and customer-centric system solutions, leveraging a global manufacturing network and strategic acquisitions to serve diverse OEMs and end markets.
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