Heico Stock Earnings Reports

HEICO reported a record third quarter of fiscal 2025 with consolidated net income up 30% to $177.3 million ($1.26 diluted) and record consolidated operating income and net sales (up 22% and 16%). Strong organic growth was the driver: Flight Support Group (FSG) net sales grew 18% (13% organic) and Electronic Technologies Group (ETG) net sales grew 10% (7% organic). FSG operating margin expanded to 24.7% (EBITA ~27.3% before amortization) driven by repair & overhaul and specialty product strength; ETG operating margin was 22.8% (EBITA ~26.6% before amortization). Operating cash flow was $231.2 million (130% of net income) and HEICO reduced leverage to a net debt/EBITDA of 1.9x despite deploying ~$630 million on acquisitions year-to-date. The company completed its fifth acquisition of FY25 (Gables Engineering — the third largest acquisition in HEICO history) and expects it to be accretive within a year. Management remains confident in continued organic growth, margin expansion (driven by mix and SG&A leverage), a robust M&A pipeline, and disciplined financial management. Other takeaways: dividend increased 9% to $0.12 per share semiannually; defense and missile-defense demand/backlog is a meaningful growth area; supply-chain pockets of constraint remain but overall supply conditions and inventory positions improved; Q4 is typically FSG's strongest quarter; management views EBITA (cash margin before amortization) as the primary profitability metric.