Helios Technologies, Inc. HLIO is well-poised to benefit from strength across its business, strong liquidity and focus on improving the product line and operational excellence. The company remains focused on investing in growth opportunities and solidifying its long-term market position.
HLIO has a market capitalization of $2.3 billion and currently carries a Zacks Rank #2 (Buy). Let’s delve into the factors that have been aiding the firm for a while now.
Business Strength: Helios has been benefiting from improving demand trends and healthy order momentum. The company experienced four consecutive quarters of double-digit pro-forma sales and order intake growth through the second quarter of 2026. In second-quarter 2026, its sales increased 9% year over year and 16% on a pro forma basis, supported by strength across both segments.
The Hydraulics segment’s growth is supported by increased demand in the mobile and agriculture end markets. In the second quarter, the Hydraulics segment’s sales rose 4% on a year-over-year basis and 14% on a pro forma basis. The Electronics segment is witnessing solid momentum in the health and wellness, recreational and mobile end markets. In the second quarter, the Electronics segment posted 19% year-over-year sales growth.
Margin Expansion: Helios is seeing stronger profitability on higher volumes, improved operating efficiency and a favorable mix. Second-quarter gross margin rose 280 basis points year over year, while adjusted EBITDA margin reached 21.2%, staying above 20% for a fourth straight quarter. For 2026, the company lifted the lower end of its adjusted EBITDA margin outlook to 20.2-21.0%.
Price Performance of HLIO
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In the past year, Helios has surged 32.2% compared with the industry’s 2.8% growth.
Shareholder-Friendly Policies: HLIO remains committed to rewarding its shareholders through dividend payouts and share buybacks. Helios kept its quarterly dividend at 12 cents per share, extending its payment streak to 119 quarters. The company repurchased $6 million of shares in the second quarter, with $76 million still available under its authorization. In the first six months of 2026, shareholder returns through dividends and buybacks totaled $18 million, up 40% from the first half of 2025.
Earnings Estimates: The Zacks Consensus Estimate for HLIO’s 2026 earnings is pegged at $3.19 per share, indicating an increase of 24.6% on a year-over-year basis. The consensus estimate for 2027 earnings is pegged at $3.58 per share, indicating an increase of 12.2% from the previous year.
Other Stocks to Consider
Some other top-ranked companies from the same space are discussed below.
Nordson Corporation NDSN currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nordson surpassed the consensus estimate in each of the trailing four quarters. NDSN delivered a trailing four-quarter average earnings surprise of 2.6%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 2.1%.
Illinois Tool Works ITW currently carries a Zacks Rank of 2. Illinois Tool’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.9%. In the past 60 days, the Zacks Consensus Estimate for ITW’s 2026 earnings has increased 0.4%.
Mueller Water Products MWA presently carries a Zacks Rank of 2. MWA’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 13.2%. The Zacks Consensus Estimate for MWA’s fiscal 2026 earnings has increased 4.1% over the past 60 days.
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Helios Technologies, Inc (HLIO): Free Stock Analysis Report
Illinois Tool Works Inc. (ITW): Free Stock Analysis Report
Nordson Corporation (NDSN): Free Stock Analysis Report
MUELLER WATER PRODUCTS (MWA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).