Stifel reiterates Buy rating on Helios Tech stock after strong Q2 results

Published 05/08/2025, 17:30
Stifel reiterates Buy rating on Helios Tech stock after strong Q2 results

Investing.com - Stifel maintained its Buy rating and $43.00 price target on Helios Technologies (NYSE:HLIO), a $1.55 billion market cap industrial technology company with a 29-year dividend payment history, following the company’s second-quarter earnings report that exceeded analyst expectations.

Helios Technologies reported second-quarter revenue of $212.5 million, surpassing both Stifel’s estimate of $200.3 million and the Street consensus of $203.0 million. The company’s adjusted earnings per share reached $0.59, significantly above Stifel’s forecast of $0.49 and the Street’s expectation of $0.51. According to InvestingPro data, the stock currently trades at a P/E ratio of 41.9x, suggesting a premium valuation relative to near-term earnings growth.

The industrial technology company raised its full-year 2025 revenue guidance to $810-$830 million from its previous range of $775-$825 million, while narrowing its EBITDA margin forecast to 18.5%-19.5% from 18.0%-20.0%. Helios also increased its adjusted EPS guidance to $2.30-$2.50 from the prior $2.00-$2.40 range. With a strong current ratio of 2.78x, InvestingPro analysis shows the company maintains healthy liquidity to support its growth initiatives.

For the third quarter of 2025, Helios expects revenue between $208-$215 million with EBITDA margins of 19.5%-20.5% and adjusted EPS of $0.60-$0.68, all figures exceeding current analyst projections.

Stifel characterized the results as a "strong quarter" with revenue and EPS "materially above consensus estimates" and noted the guidance raise was "materially above what was a pessimistic Street outlook."

In other recent news, Helios Technologies reported second-quarter results that exceeded analyst expectations. The company announced adjusted earnings per share of $0.59, surpassing the analyst estimate of $0.50 by 18%. Revenue for the quarter was $212.5 million, which also came in above the consensus estimate of $201.47 million, although it represented a 3% decline compared to the same period last year. Additionally, Helios Technologies raised its full-year outlook, signaling confidence in its future performance. In a strategic move, the company revealed plans to divest its CFP unit to streamline operations and concentrate on its core brands. These developments mark significant progress for Helios Technologies as it navigates the current economic landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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