Heico Stock Earnings Reports

HEICO reported record second-quarter fiscal 2026 results across sales, operating income and net income, driven by strong organic demand and recent acquisitions in both the Flight Support Group (FSG) and Electronic Technologies Group (ETG). Consolidated net income rose 49% to $233.8 million ($1.66 diluted EPS), consolidated sales increased 25%, and operating cash flow grew 43% to $292 million. FSG delivered 21% sales growth (19% organic) with operating margin expansion driven by favorable mix, SG&A leverage and incremental defense shipments pulled forward. ETG posted 34% sales growth (17% organic) and a materially higher operating margin before acquisition-related amortization, though management cautioned ETG margins remain sensitive to shipment mix and can be lumpy. Net debt-to-EBITDA was 1.74x after four fiscal-2026 acquisitions; management expects recent deals to be accretive within a year and emphasized a disciplined, opportunistic M&A pipeline focused on complementary, cash-generative businesses. Management highlighted strong demand across commercial aviation, defense and space (including participation on Artemis II), continued investment in engineering/production capacity, and confidence in multi-year defense tailwinds. Guidance commentary: continued increased sales for the remainder of fiscal 2026, GAAP operating margin expectations for ETG broadly in the low- to mid-20% range, and an FSG cash-margin profile that management believes could be sustainably higher than historical levels.