HLIO Stock Forecast & Price Target

Helios Technologies is in a strong financial position with a net leverage of 1.6x, record breaking 1Q26 FCF of $17 million and a healthy balance sheet which provides options for future M&A or returns to shareholders. Despite higher-than-typical capital expenditures and inflationary pressure, the company has maintained an EBITDA margin expansion of 310bps to 20.4% in 1Q26 and raised its full-year guidance to 8% y/y pro forma growth at the midpoint. The company's Hydraulics and Electronics segments continue to see strong order growth and have solid growth expectations for the rest of the year, with potential upside as the company shows signs of a recovery in the agriculture market. Overall, Helios Technologies presents an attractive entry point into a self-help story, especially with the recent appointment of a new CEO who is focused on refocusing the go-to-market approach and evaluating the company's portfolio and footprint.

Helios Technologies is an industrial technology company with a strong presence in the hydraulics and electronics markets. Despite a recent strong performance driven by improved demand and operating leverage, there are concerns about potential macroeconomic and geopolitical impacts. Furthermore, the company's guidance suggests a slowdown in the second half of 2026, which creates uncertainty and skews the risk/reward to the upside.