HEICO Corporation Reports Record Net Income (Up 13%) and Strong Increases in Operating Income (Up 15%) and Net Sales (Up 14%) for the First Quarter of Fiscal 2026
Rhea-AI Summary
HEICO (NYSE:HEI / HEI.A) reported record first-quarter net income of $190.2M (up 13%) and diluted EPS of $1.35 for the quarter ended January 31, 2026. Net sales rose 14% to $1,178.6M and operating income increased 15% to $259.9M.
EBITDA was $312.0M (+14%), consolidated operating margin improved to 22.1%, and Flight Support Group delivered 15% sales growth and 21% operating income growth. Leverage increased following a quarter acquisition.
Positive
- Net income +13% to $190.2M
- Net sales +14% to $1,178.6M
- Operating income +15% to $259.9M
- Flight Support Group: net sales +15% and operating income +21%
- EBITDA +14% to $312.0M
Negative
- Electronic Technologies Group operating income decreased to $73.2M from $76.5M
- Cash provided by operations declined to $178.6M from $203.0M
- Leverage rose: total debt to net income ratio to 3.52x from 3.14x
News Market Reaction – HEI
On the day this news was published, HEI declined 9.21%, reflecting a notable negative market reaction. Argus tracked a trough of -7.9% from its starting point during tracking. Our momentum scanner triggered 44 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $4.88B from the company's valuation, bringing the market cap to $48.06B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
HEI gained 1.26% with solid volume, while key aerospace & defense peers also posted modest gains (e.g., ESLT +2.58%, HWM +1.73%). However, no peers appeared in the momentum scanner, suggesting the move was more company-specific than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 19 | Conference call notice | Neutral | +0.9% | Scheduled Q1 FY2026 results release and investor conference call details. |
| Feb 05 | Acquisition closed | Positive | -0.7% | Completion of EthosEnergy Accessories and Components acquisition, expected earnings accretion. |
| Feb 04 | Product launch | Positive | -2.9% | VPT introduced a new high‑efficiency space‑grade DC–DC converter in its VSC Series. |
| Jan 27 | Acquisition closed | Positive | +0.7% | Completion of Axillon Fuel Containment acquisition, rebranded as Rockmart Fuel Containment. |
| Dec 18 | Earnings results | Positive | +0.6% | Record Q4 and FY2025 net income, net sales, operating income, and EBITDA with margin expansion. |
Recent HEICO news has more often seen price moves align with generally positive announcements, though there are instances where favorable product or acquisition updates coincided with short-term share weakness.
Over the past several months, HEICO has combined record financial performance with active M&A and product expansion. A Dec 18, 2025 release highlighted record Q4 and FY2025 results, followed by acquisitions of Axillon’s fuel containment business and EthosEnergy Accessories & Components, each expected to be accretive within a year. VPT also launched a high‑efficiency space‑grade converter. A February conference-call notice preceded today’s first‑quarter 2026 results, which extend the record net income and sales trajectory shown in the prior fiscal year.
Market Pulse Summary
The stock moved -9.2% in the session following this news. A negative reaction despite record figures could fit a pattern where strong HEICO announcements sometimes met with short‑term weakness, as seen in prior product and acquisition updates. While Q1 2026 delivered net income of $190.2M and net sales of $1,178.6M, attention may focus on Electronic Technologies Group margin pressure or higher leverage tied to recent acquisitions. Such factors could drive profit‑taking even against a backdrop of overall growth.
Key Terms
ebitda financial
net debt financial
net debt to ebita ratio financial
non-gaap financial
regulation g regulatory
AI-generated analysis. Not financial advice.
HOLLYWOOD, FL AND MIAMI, FL / ACCESS Newswire / February 25, 2026 / HEICO CORPORATION (NYSE:HEI.A)(NYSE:HEI) today reported an increase in net income of
Net sales increased
EBITDA increased
Net income attributable to HEICO in the first quarter of fiscal 2026 and 2025 were both favorably impacted by a discrete income tax benefit from stock option exercises. The benefit in the first quarter of fiscal 2026, net of noncontrolling interests, was
Consolidated Results
Eric A. Mendelson and Victor H. Mendelson, HEICO's Co-Chairmen and Co-Chief Executive Officers, commented on the Company's first quarter results stating, "We are proud to report record quarterly net income, as well as increased operating income and net sales, principally driven by strong double-digit consolidated organic net sales growth, as well as the contributions from our fiscal 2025 and 2026 acquisitions. The strong organic growth reflects increased demand across all of the Flight Support Group's product lines and for the Electronic Technologies Group's other electronics, aerospace and defense products.
Cash flow provided by operating activities remained strong, totaling
Our total debt to net income attributable to HEICO ratio was 3.52x as of January 31, 2026, as compared to 3.14x as of October 31, 2025. Our net debt to EBITDA ratio was 1.79x as of January 31, 2026, as compared to 1.60x as of October 31, 2025. The increase in our leverage ratio in the first quarter of fiscal 2026 is a direct result of the successful completion of an acquisition during the quarter. See our reconciliation of total debt to net debt at the end of this press release.
As we look ahead to the remainder of fiscal 2026, we expect continued sales momentum across both the Flight Support Group and the Electronic Technologies Group, supported by organic demand for our products, together with the impact of recent acquisitions. We remain focused on pursuing selective acquisition opportunities that align with our growth strategy. Our disciplined financial management continues to emphasize long-term shareholder value through a combination of strategic acquisitions and organic growth, while preserving financial strength and flexibility."
Flight Support Group
The Flight Support Group delivered strong results in operating income and net sales, achieving quarterly increases of
The Flight Support Group's net sales increased
The Flight Support Group's operating income increased
The Flight Support Group's operating margin improved to
Electronic Technologies Group
The Electronic Technologies Group's first quarter
The Electronic Technologies Group's net sales increased
The Electronic Technologies Group's operating income was
The Electronic Technologies Group's operating margin was
Non-GAAP Financial Measures
To provide additional information about the Company's results, HEICO has discussed in this press release its EBITDA (calculated as net income attributable to HEICO adjusted for depreciation and amortization expense, net income attributable to noncontrolling interests, interest expense and income tax expense), its net debt (calculated as total debt less cash and cash equivalents), and its net debt to EBITDA ratio (calculated as net debt divided by EBITDA), which are not prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").
These non-GAAP measures are included to supplement the Company's financial information presented in accordance with GAAP and because the Company uses such measures to monitor and evaluate the performance of its business and believes the presentation of these measures enhance an investor's ability to analyze trends in the Company's business and to evaluate the Company's performance relative to other companies in its industry. However, these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for analysis of the Company's financial results as reported under GAAP.
These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. These measures should only be used to evaluate the Company's results of operations in conjunction with their corresponding GAAP measures. Pursuant to the requirements of Regulation G of the Securities and Exchange Act of 1934, the Company has provided a reconciliation of these non-GAAP measures in the last table included in this press release.
(NOTE: HEICO has two classes of common stock traded on the NYSE. Both classes, the Class A Common Stock (HEI.A) and the Common Stock (HEI), are virtually identical in all economic respects. The only difference between the share classes is the voting rights. The Class A Common Stock (HEI.A) carries 1/10 vote per share and the Common Stock (HEI) carries one vote per share.)
There are currently approximately 84.4 million shares of HEICO's Class A Common Stock (HEI.A) outstanding and 55.1 million shares of HEICO's Common Stock (HEI) outstanding. The stock symbols for HEICO's two classes of common stock on most websites are HEI.A and HEI. However, some websites change HEICO's Class A Common Stock trading symbol (HEI.A) to HEI/A or HEIa.
As previously announced, HEICO will hold a conference call on Thursday, February 26, 2026 at 9:00 a.m. Eastern Standard Time to discuss its first quarter results. Individuals wishing to participate in the conference call should dial: US and Canada (800) 330-6710, International (646) 769-9200, wait for the conference operator and provide the operator with the Conference ID 3280563. A digital replay will be available two hours after the completion of the conference for 14 days. To access the replay, please visit our website at https://www.heico.com under the Investors section for details.
HEICO Corporation is engaged primarily in the design, production, servicing and distribution of products and services to certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, Florida-based Flight Support Group and its Miami, Florida-based Electronic Technologies Group. HEICO's customers include a majority of the world's airlines and overhaul shops, as well as numerous defense and space contractors and military agencies worldwide, in addition to medical, telecommunications and electronics equipment manufacturers. For more information about HEICO, please visit our website at https://www.heico.com.
Certain statements in this press release constitute forward-looking statements, which are subject to risks, uncertainties and contingencies. HEICO's actual results may differ materially from those expressed in or implied by those forward-looking statements. Factors that could cause such differences include, among others: the severity, magnitude and duration of public health threats; our liquidity and the amount and timing of cash generation; lower commercial air travel, airline fleet changes or airline purchasing decisions, which could cause lower demand for our goods and services; product specification costs and requirements, which could cause an increase in our costs to complete contracts; governmental and regulatory demands, export policies and restrictions, reductions in defense, space or homeland security spending by U.S. and/or foreign customers or competition from existing and new competitors, which could reduce our sales; our ability to introduce new products and services at profitable pricing levels, which could reduce our sales or sales growth; product development or manufacturing difficulties, which could increase our product development and manufacturing costs and delay sales; cybersecurity events or other disruptions of our information technology systems could adversely affect our business; and our ability to make acquisitions, including obtaining any applicable domestic and/or foreign governmental approvals, and achieve operating synergies from acquired businesses; customer credit risk; interest, foreign currency exchange and income tax rates; and economic conditions, including the effects of inflation, within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues. Parties receiving this material are encouraged to review all of HEICO's filings with the Securities and Exchange Commission including, but not limited to filings on Form 10-K, Form 10-Q and Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
HEICO CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
Three Months Ended January 31, | ||||||||
2026 | 2025 | |||||||
Net sales | $ | 1,178,582 | $ | 1,030,222 | ||||
Cost of sales | 723,618 | 624,560 | ||||||
Selling, general and administrative expenses | 195,065 | 178,857 | ||||||
Operating income | 259,899 | 226,805 | ||||||
Interest expense | (29,486 | ) | (32,458 | ) | ||||
Other income | 1,044 | 919 | ||||||
Income before income taxes and noncontrolling interests | 231,457 | 195,266 | ||||||
Income tax expense | 26,700 | (a) | 13,700 | (b) | ||||
Net income from consolidated operations | 204,757 | 181,566 | ||||||
Less: Net income attributable to noncontrolling interests | 14,569 | 13,611 | ||||||
Net income attributable to HEICO | $ | 190,188 | (a) | $ | 167,955 | (b) | ||
Net income per share attributable to HEICO shareholders: | ||||||||
Basic | $ | 1.36 | (a) | $ | 1.21 | (b) | ||
Diluted | $ | 1.35 | (a) | $ | 1.20 | (b) | ||
Weighted average number of common shares outstanding: | ||||||||
Basic | 139,368 | 138,837 | ||||||
Diluted | 141,029 | 140,484 | ||||||
Three Months Ended January 31, | ||||||||
2026 | 2025 | |||||||
Operating segment information: | ||||||||
Net sales: | ||||||||
Flight Support Group | $ | 820,000 | $ | 713,174 | ||||
Electronic Technologies Group | 370,675 | 330,315 | ||||||
Intersegment sales | (12,093 | ) | (13,267 | ) | ||||
$ | 1,178,582 | $ | 1,030,222 | |||||
Operating income: | ||||||||
Flight Support Group | $ | 200,733 | $ | 166,116 | ||||
Electronic Technologies Group | 73,246 | 76,456 | ||||||
Other, primarily corporate | (14,080 | ) | (15,767 | ) | ||||
$ | 259,899 | $ | 226,805 | |||||
Depreciation and amortization: | ||||||||
Flight Support Group | $ | 27,875 | $ | 25,832 | ||||
Electronic Technologies Group | 22,284 | 19,500 | ||||||
Other, primarily corporate | 849 | 893 | ||||||
$ | 51,008 | (c) | $ | 46,225 | (c) | |||
HEICO CORPORATION
Footnotes to Condensed Consolidated Statements of Operations (Unaudited)
(a) | During the first quarter of fiscal 2026, the Company recognized a | |
(b) | During the first quarter of fiscal 2025, the Company recognized a | |
(c) | Depreciation and amortization information on the Company's two operating segments for the three months ended January 31, 2026 and 2025, is as follows (in thousands): |
Three Months Ended January 31, | ||||||||
2026 | 2025 | |||||||
Depreciation: | ||||||||
Flight Support Group | $ | 6,781 | $ | 6,578 | ||||
Electronic Technologies Group | 6,923 | 5,969 | ||||||
Other, primarily corporate | 457 | 501 | ||||||
$ | 14,161 | $ | 13,048 | |||||
Amortization: | ||||||||
Flight Support Group | $ | 21,094 | $ | 19,254 | ||||
Electronic Technologies Group | 15,361 | 13,531 | ||||||
Other, primarily corporate | 392 | 392 | ||||||
$ | 36,847 | $ | 33,177 | |||||
HEICO CORPORATION
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
January 31, 2026 | October 31, 2025 | |||||||
Cash and cash equivalents | $ | 260,971 | $ | 217,781 | ||||
Accounts receivable, net | 652,024 | 637,615 | ||||||
Contract assets | 116,900 | 119,257 | ||||||
Inventories, net | 1,338,421 | 1,295,336 | ||||||
Prepaid expenses and other current assets | 111,298 | 86,377 | ||||||
Total current assets | 2,479,614 | 2,356,366 | ||||||
Property, plant and equipment, net | 448,992 | 431,710 | ||||||
Goodwill | 3,905,669 | 3,661,624 | ||||||
Intangible assets, net | 1,642,001 | 1,471,440 | ||||||
Other assets | 567,420 | 579,294 | ||||||
Total assets | $ | 9,043,696 | $ | 8,500,434 | ||||
Current maturities of long-term debt | $ | 3,396 | $ | 3,358 | ||||
Other current liabilities | 807,204 | 828,646 | ||||||
Total current liabilities | 810,600 | 832,004 | ||||||
Long-term debt, net of current maturities | 2,504,285 | 2,164,587 | ||||||
Deferred income taxes | 148,056 | 107,186 | ||||||
Other long-term liabilities | 535,026 | 550,124 | ||||||
Total liabilities | 3,997,967 | 3,653,901 | ||||||
Redeemable noncontrolling interests | 464,581 | 467,358 | ||||||
Shareholders' equity | 4,581,148 | 4,379,175 | ||||||
Total liabilities and equity | $ | 9,043,696 | $ | 8,500,434 | ||||
HEICO CORPORATION
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Three Months Ended January 31, | ||||||||
2026 | 2025 | |||||||
Operating Activities: | ||||||||
Net income from consolidated operations | $ | 204,757 | $ | 181,566 | ||||
Depreciation and amortization | 51,008 | 46,225 | ||||||
Share-based compensation expense | 11,296 | 4,671 | ||||||
Deferred income tax provision (benefit) | 7,480 | (7,052 | ) | |||||
Employer contributions to HEICO Savings and Investment Plan | 5,901 | 5,473 | ||||||
Increase in accrued contingent consideration | 2,225 | 3,288 | ||||||
Payment of contingent consideration | - | (2,190 | ) | |||||
(Increase) decrease in accounts receivable | (5,262 | ) | 20,062 | |||||
Decrease (increase) in contract assets | 3,753 | (5,949 | ) | |||||
Increase in inventories | (17,101 | ) | (36,207 | ) | ||||
Decrease in current liabilities | (92,868 | ) | (36,622 | ) | ||||
Other | 7,408 | 29,769 | ||||||
Net cash provided by operating activities | 178,597 | 203,034 | ||||||
Investing Activities: | ||||||||
Acquisitions, net of cash acquired | (441,397 | ) | (254,763 | ) | ||||
Investments related to HEICO Leadership Compensation Plan | (14,000 | ) | (14,600 | ) | ||||
Capital expenditures | (13,496 | ) | (17,335 | ) | ||||
Proceeds from corporate-owned life insurance policy withdrawals | 22,654 | - | ||||||
Other | (728 | ) | (1,297 | ) | ||||
Net cash used in investing activities | (446,967 | ) | (287,995 | ) | ||||
Financing Activities: | ||||||||
Borrowings on revolving credit facility, net | 340,000 | 125,000 | ||||||
Cash dividends paid | (16,724 | ) | (15,272 | ) | ||||
Distributions to noncontrolling interests | (7,181 | ) | (10,236 | ) | ||||
Redemptions of common stock related to stock option exercises | (4,531 | ) | (95 | ) | ||||
Acquisitions of noncontrolling interests | (4,072 | ) | (3,258 | ) | ||||
Payment of contingent consideration | - | (5,954 | ) | |||||
Proceeds from stock option exercises | 2,896 | 1,597 | ||||||
Other | (812 | ) | (1,070 | ) | ||||
Net cash provided by financing activities | 309,576 | 90,712 | ||||||
Effect of exchange rate changes on cash | 1,984 | (2,387 | ) | |||||
Net increase in cash and cash equivalents | 43,190 | 3,364 | ||||||
Cash and cash equivalents at beginning of year | 217,781 | 162,103 | ||||||
Cash and cash equivalents at end of period | $ | 260,971 | $ | 165,467 | ||||
HEICO CORPORATION
Non-GAAP Financial Measures (Unaudited)
(in thousands, except ratios)
Three Months Ended January 31, | ||||||||
EBITDA Calculation | 2026 | 2025 | ||||||
Net income attributable to HEICO | $ | 190,188 | $ | 167,955 | ||||
Plus: Depreciation and amortization | 51,008 | 46,225 | ||||||
Plus: Net income attributable to noncontrolling interests | 14,569 | 13,611 | ||||||
Plus: Interest expense | 29,486 | 32,458 | ||||||
Plus: Income tax expense | 26,700 | 13,700 | ||||||
EBITDA (a) | $ | 311,951 | $ | 273,949 | ||||
Trailing Twelve Months Ended | ||||||||
EBITDA Calculation | January 31, 2026 | October 31, 2025 | ||||||
Net income attributable to HEICO | $ | 712,618 | $ | 690,385 | ||||
Plus: Depreciation and amortization | 200,859 | 196,076 | ||||||
Plus: Net income attributable to noncontrolling interests | 56,127 | 55,169 | ||||||
Plus: Interest expense | 126,905 | 129,877 | ||||||
Plus: Income tax expense | 161,000 | 148,000 | ||||||
EBITDA (a) | $ | 1,257,509 | $ | 1,219,507 | ||||
Net Debt Calculation | January 31, 2026 | October 31, 2025 | ||||||
Total debt | $ | 2,507,681 | $ | 2,167,945 | ||||
Less: Cash and cash equivalents | (260,971 | ) | (217,781 | ) | ||||
Net debt (a) | $ | 2,246,710 | $ | 1,950,164 | ||||
Total debt | $ | 2,507,681 | $ | 2,167,945 | ||||
Net income attributable to HEICO (trailing twelve months) | $ | 712,618 | $ | 690,385 | ||||
Total debt to net income attributable to HEICO ratio | 3.52 | 3.14 | ||||||
Net debt | $ | 2,246,710 | $ | 1,950,164 | ||||
EBITDA (trailing twelve months) | $ | 1,257,509 | $ | 1,219,507 | ||||
Net debt to EBITDA ratio (a) | 1.79 | 1.60 | ||||||
(a) See the "Non-GAAP Financial Measures" section of this press release.
Contact:
Victor H. Mendelson (305) 374-1745 ext. 7590
Carlos L. Macau, Jr. (954) 987-4000 ext. 7570
SOURCE: HEICO Corporation
View the original press release on ACCESS Newswire
FAQ
What were HEICO (HEI) first-quarter fiscal 2026 net income and EPS on February 25, 2026?
How much did HEICO (HEI) net sales grow in Q1 fiscal 2026 and what drove the increase?
Why did HEICO's Electronic Technologies Group operating income fall in Q1 fiscal 2026?
What cash flow and leverage changes did HEICO (HEI) report for Q1 fiscal 2026?
How did HEICO's Flight Support Group perform in Q1 fiscal 2026 (sales and margins)?
What non-GAAP metrics did HEICO (HEI) emphasize for Q1 fiscal 2026 and why?
