Helios Technologies Inc

Helios Technologies reported record second-quarter results with sales of $232 million and adjusted earnings per share of $0.88, both at the high end of guidance. The company posted its fourth straight quarter of double-digit pro forma growth in sales and adjusted earnings, with gross margin expanding 280 basis points to 34.6% and operating income up 48% to $33 million. However, third-quarter guidance implies a sharp deceleration to 8% sales growth and 2% adjusted EPS growth at the midpoint, with adjusted EBITDA margin expected to slip 30 basis points year over year. Management cited tougher comparisons and softness in marine and industrial end markets, while noting about $1 million in one-time tariff refunds aided margins. Net debt fell to $264 million, the lowest since the third quarter of 2020, and the company extended its dividend streak to 118 consecutive quarters.

Helios Technologies raised its full-year 2026 guidance, now expecting sales of $880 million to $900 million and adjusted diluted earnings per share of $3.05 to $3.25. The company also lifted the bottom of its adjusted EBITDA margin range to 20.2% from 19.5%, while keeping the top at 21.0%. For the third quarter, management guided sales of $215 million to $222 million and adjusted EPS of $0.70 to $0.77. The raised outlook reflects robust order intake, which grew double digits for a fourth straight quarter, and improving visibility, though it still assumes tougher second-half comparisons and macro risks including tariffs and inflation. Second-quarter sales reached $232 million with gross margin expanding 280 basis points year-over-year to 34.6%, and the company generated a quarterly record $42 million in cash from operations.

U.S. industrial production rose 0.1% in May after a 0.9% gain in April, with the index reaching 102.6. Manufacturing output, a component of the broader industrial production index, came in at 97.9, while durable goods production climbed 0.8% sequentially. The ISM Manufacturing PMI hit 54, its highest in four years, marking a fifth straight month above 50. Zacks Investment Research highlights four industrial stocks with strong earnings growth estimates: Caterpillar, Helios Technologies, Dover Corporation, and Luxfer Holdings.

ITT reported first-quarter revenues of $1.21 billion, up 32.7% year on year and exceeding analyst estimates by 9.8%, making it the fastest-growing and biggest beat among the 12 gas and liquid handling stocks tracked. The group overall posted a satisfactory quarter, with revenues beating consensus by 1.3% and next-quarter guidance coming in 4.8% above expectations. Gorman-Rupp delivered the best performance with a 31% stock gain after reporting revenues of $176.6 million, while Graco was the weakest, missing estimates and seeing its shares fall 11.2%. Flowserve lagged with a 6.7% revenue decline, and Helios topped expectations with 16.8% growth and raised guidance.

Helios Technologies declared a quarterly cash dividend of $0.12 per share, in line with the previous payout. The dividend is payable on July 24 to shareholders of record as of July 10, with the ex-dividend date also set for July 10. The forward yield is 0.56%.