Helios Technologies (HLIO) AI Stock Analysis

• Market Cap: $2.35B
• Dividend Yield: 0.64%
• Average Volume (3M): 252.56K
• Price to Earnings (P/E): 49.0
• Beta (1Y): 1.54
• Revenue Growth: -1.46%
• EPS Growth: -10.03%
• Country: US
• Employees: 2,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.81
• Shares Outstanding: 33,128,494
• 10 Day Avg. Volume: 329,456
• 30 Day Avg. Volume: 252,555
• PEG Ratio: 1.51
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 2.16
• P/FCF Ratio: 17.53
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 8.82
• Enterprise Value/Ebitda: 16.25
• 1Y Price Target: $79.33
• Price Target Upside: 11.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.75
• Revenue Forecast (FY): $837.87M

• Rating: 70 Outperform
• Price Target: $82.00 ▲(15.43% Upside)
• Action: Upgraded Date: 03/03/26
• Date: Action: Upgraded 03/03/26

HLIO scores well on improving financial resilience (stronger balance sheet and higher free cash flow) and a constructive price trend, reinforced by upbeat turnaround commentary and Q1 guidance. The biggest offset is valuation: the very high P/E and low dividend yield meaningfully cap the overall score.

Positive Factors

Balance-sheet deleveraging

Sharp deleveraging materially reduces financial risk and increases strategic flexibility. With a much stronger capital structure the company can withstand demand cyclicality, fund targeted M&A or capex, and sustain dividends/repurchases without stressing liquidity over the medium term.

Improving cash generation

Consistent, rising OCF and FCF provide a durable funding source for operations and capital allocation. Strong FCF conversion (~0.8x of net income) supports debt paydown, shareholder returns and reinvestment in higher‑value products, underpinning long-term financial resilience.

Commercial execution & new wins

A tangible pipeline of new business and successful product launches signals improving market traction. Winning higher‑value engineered solutions and stronger Electronics performance should lift revenue mix and support more sustainable margins over several quarters.

Negative Factors

Compressed profitability

A halving of net margin versus prior cycle and modest ROE (~5.2%) indicate weakened earnings power. Even with better cash flow and balance sheet, persistently lower profitability limits reinvestment capacity, return generation, and the durability of shareholder distributions long term.

Distribution-channel visibility

Heavy reliance on distributors reduces forward order transparency and raises execution risk: channel inventory swings or slower dealer restocking can delay revenue recognition and complicate working-capital management, making growth and margin forecasting persistently uncertain.

Tariff & supply-chain pressures

Ongoing tariffs, semiconductor constraints and rising input costs are structural headwinds in global industrial supply chains. If pricing lags or components remain constrained, margin recovery may be limited and product delivery schedules and cost structures could be disrupted for multiple quarters.

Helios Technologies Business Overview & Revenue Model

Company Description

Helios Technologies, Inc., together with its subsidiaries, develops, manufactures, and sells solutions for the hydraulics and electronics markets in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Hydraulics and Electronics. The Hydraulics segment offers cartridge valve technology products to control rates and direction of fluid flow, and to regulate and control pressures for industrial and mobile applications; quick release coupling solutions for the agriculture, construction equipment, and industrial markets; and hydraulic system design that provides engineered solutions for machine users, manufacturers, or designers. This segment sells its products under the Sun Hydraulics, Faster, and Custom Fluidpower brands. The Electronics segment offers displays, controls, and instrumentation products for off-highway, recreational and commercial marine, power sports and specialty vehicles, agriculture and water pumping, power generation, health and wellness, and engine-driven industrial equipment markets. This segment sells its products under the Enovation Controls, Murphy, and Balboa Water Group brands. It sells its hydraulic products primarily through value-add distributors, as well as directly to original equipment manufacturers; and electronic products to original equipment manufacturer customers. The company was formerly known as Sun Hydraulics Corporation and changed its name to Helios Technologies, Inc. in June 2019. Helios Technologies, Inc. was founded in 1970 and is headquartered in Sarasota, Florida.

How the Company Makes Money

Helios Technologies generates revenue primarily through the sale of its hydraulic and electronic control products. The company has established a robust revenue model that includes direct sales to original equipment manufacturers (OEMs) and distributors, as well as aftermarket sales for maintenance and replacement parts. Key revenue streams consist of product sales, engineering services, and customized solutions tailored to specific customer needs. Additionally, Helios Technologies benefits from strategic partnerships with major industry players, which enhance its market presence and distribution capabilities. The company's focus on innovation and technology development also contributes to its earnings by allowing it to command premium pricing for its advanced products.

Helios Technologies Financial Statement Overview

Summary

Balance sheet and cash flow are clear strengths: leverage has fallen sharply (debt-to-equity ~0.12 in 2026) and operating/free cash flow improved (OCF ~$127M; FCF ~$104M, +~15% in 2026). The main constraint is weaker earnings power versus prior-cycle levels, with net margin down to ~5.8% (from ~12% in 2021) and modest ROE (~5.2%).

Income Statement

Revenue has been relatively stable but choppy, with declines in 2023–2024 followed by a modest rebound in 2026 (annual revenue growth ~3.9%). Profitability is materially below earlier-cycle levels: net margin has compressed from ~12% (2021) to ~5.8% (2026), and operating profitability also appears lower versus 2021–2022. Offsetting this, gross margin has held in the low-30% range recently, suggesting pricing/cost structure remains reasonably resilient even as below-the-line profitability has weakened.

Balance Sheet

Leverage has improved significantly, with debt-to-equity falling to ~0.12 in 2026 from ~0.55–0.64 in 2023–2024, indicating a much stronger capital structure and reduced balance-sheet risk. Equity has grown over time, supporting asset backing. The main offset is that returns on equity are currently modest (~5.2% in 2026) versus stronger levels in 2021–2022, implying the balance sheet is healthier than the company’s present earnings power.

Cash Flow

Cash generation is solid and improving: 2026 operating cash flow (~$127M) and free cash flow (~$104M) are both higher than recent years, with free cash flow growth of ~15% in 2026. Free cash flow runs at a healthy proportion of net income (roughly 0.81x in 2026), supporting earnings quality. A watch item is that operating cash flow is less than net income in recent years (coverage <1.0), indicating some working-capital or timing drag despite strong overall free cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	839.00M	805.90M	835.60M	885.40M	869.20M
Gross Profit	271.20M	252.30M	261.70M	298.50M	312.80M
EBITDA	147.30M	148.10M	144.20M	190.10M	202.50M
Net Income	48.40M	39.00M	37.50M	98.40M	104.60M
Balance Sheet
Total Assets	1.51B	1.51B	1.59B	1.46B	1.42B
Cash, Cash Equivalents and Short-Term Investments	73.00M	44.10M	32.40M	43.70M	28.50M
Total Debt	110.90M	471.20M	548.50M	464.80M	471.30M
Total Liabilities	583.00M	641.00M	735.80M	668.80M	706.30M
Stockholders Equity	931.50M	864.40M	854.60M	794.90M	709.00M
Cash Flow
Free Cash Flow	103.60M	95.10M	43.50M	78.00M	86.30M
Operating Cash Flow	127.30M	122.10M	83.90M	109.90M	113.10M
Investing Cash Flow	20.30M	-30.30M	-153.90M	-90.80M	-90.30M
Financing Cash Flow	-121.90M	-78.40M	57.90M	-6.90M	-22.60M

Helios Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLIO, the sentiment is Positive. The current price of 71.04 is below the 20-day moving average (MA) of 72.76, above the 50-day MA of 65.05, and above the 200-day MA of 50.73, indicating a bullish trend. The MACD of 2.30 indicates Positive momentum. The RSI at 62.32 is Neutral, neither overbought nor oversold. The STOCH value of 44.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLIO.

Helios Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLIO	70 Outperform	$2.35B	48.99	3.75%	0.64%	-1.46%	-10.03%
GRC	69 Neutral	$1.68B	31.67	13.45%	1.49%	3.19%	31.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CYD	60 Neutral	$1.77B	25.23	5.67%	1.48%	18.01%	39.01%
PSIX	58 Neutral	$1.40B	11.59	118.50%	―	54.78%	122.61%
TNC	53 Neutral	$1.11B	26.30	7.17%	1.59%	-2.24%	-48.77%

Helios Technologies Corporate Events

Helios Technologies Enhances Executive Severance to Support Stability

On February 23, 2026, Helios Technologies’ Compensation Committee approved an amended and restated executive officer severance agreement with Sean Bagan, updating a prior agreement originally dated December 31, 2024. Under the revised terms, the company significantly enhances Bagan’s protections in the event of an involuntary termination of employment by extending his base-salary continuation period to 24 months from 12 months, underscoring Helios’s commitment to executive retention and leadership stability.

The expanded severance benefit may strengthen the company’s ability to retain key financial leadership in a competitive market for executive talent. It also signals to investors and other stakeholders that Helios is prioritizing continuity in its senior management ranks, which can be particularly important during periods of strategic change or evolving market conditions.

The most recent analyst rating on (HLIO) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on Helios Technologies stock, see the HLIO Stock Forecast page.

Helios Technologies Extends Long-Running Quarterly Dividend Streak

On December 18, 2025, Helios Technologies announced that its board of directors declared a quarterly cash dividend of $0.09 per common share, marking the company’s 116th consecutive cash dividend and extending a track record of more than 28 years of uninterrupted quarterly payouts since the first quarter of 1997. The dividend, payable on January 21, 2026 to shareholders of record as of January 7, 2026, underscores Helios’s continued emphasis on shareholder returns and signals ongoing financial stability, with approximately 33.1 million common shares outstanding at the time of the announcement.

The most recent analyst rating on (HLIO) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Helios Technologies stock, see the HLIO Stock Forecast page.

Helios Technologies Appoints New Electronics Segment President

On December 8, 2025, Helios Technologies announced the appointment of Billy Aldridge as President of its Electronics Segment, effective January 4, 2026. This strategic move comes as the company seeks to capitalize on a successful go-to-market strategy and record performance at Enovation Controls. Aldridge’s leadership is expected to enhance customer engagement and drive strategic growth, supporting Helios’ long-term objectives.

The most recent analyst rating on (HLIO) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Helios Technologies stock, see the HLIO Stock Forecast page.