Key Takeaways:
HEICO reported record fiscal third-quarter net income of $235.4 million, up 33%, as net sales climbed 23% to $1.41 billion and beat estimates.
"HEICO continued its excellent growth, with record quarterly net income, operating income and net sales supported by 14% consolidated organic net sales growth and contributions from our profitable fiscal 2026 and 2025 acquisitions," Co-Chairmen and Co-Chief Executive Officers Eric A. Mendelson and Victor H. Mendelson said.
Net sales of $1.41 billion topped the $1.35 billion consensus estimate. Diluted earnings per share rose to $1.67 from $1.26 a year earlier. Operating income increased 34% to a record $355.2 million, lifting the operating margin to 25.1% from 23.1%. EBITDA rose 31% to $415.2 million.
Shares rose 1.4% in extended trading Tuesday. Cash flow from operations climbed 49% to $345.3 million in the quarter, and net debt-to-EBITDA improved to 1.57x. HEICO expects increased net sales at both operating groups for the remainder of fiscal 2026.
The Flight Support Group posted record quarterly net sales of $947.8 million, up 18%, with operating income up 24% to $245.3 million and margin improving to 25.9%. The Electronic Technologies Group delivered record net sales of $483.5 million, up 36%, and operating income up 55% to $125.6 million, with margin expanding to 26.0%. Consolidated organic net sales growth reached 14%.
For the first nine months of fiscal 2026, net income rose 31% to a record $659.4 million, or $4.67 per diluted share, on net sales up 21% to $3.97 billion. Operating income increased 30% to $965.5 million, with the operating margin improving to 24.3% from 22.6%.
During the quarter, HEICO completed a $1.2 billion senior notes offering, issuing $550 million of 4.950% notes due 2031 and $650 million of 5.400% notes due 2036, using proceeds to repay borrowings under its revolving credit facility.
The beat signals sustained demand across commercial aviation aftermarket parts and defense electronics, with management forecasting continued growth into fiscal 2026. Investors will watch the conference call Wednesday at 9 a.m. Eastern for updated segment margins and acquisition pipeline commentary.
This article is for informational purposes only and does not constitute investment advice.
