HEICO Corporation Reports Record Net Income (Up 33%) on Record Operating Income (Up 34%) and Record Net Sales (Up 23%) for the Third Quarter of Fiscal 2026
Rhea-AI Summary
HEICO (NYSE: HEI, HEI.A) reported record results for the third quarter of fiscal 2026, with net income up 33% to $235.4 million ($1.67 per diluted share) and net sales up 23% to $1,413.1 million. Operating income rose 34% to $355.2 million, lifting the consolidated operating margin to 25.1% from 23.1%. EBITDA increased 31% to $415.2 million. For the first nine months, net income grew 31% to $659.4 million, net sales 21% to $3,967.3 million, and operating income 30% to $965.5 million, with a 24.3% operating margin.
The Flight Support Group delivered 18% net sales growth and 24% operating income growth in Q3, while the Electronic Technologies Group grew net sales 36% and operating income 55%. Consolidated quarterly organic net sales growth reached 14%. HEICO also issued $1.2 billion of senior notes, using proceeds to repay its revolving credit facility, and improved its total debt to net income ratio to 3.00x and net debt to EBITDA to 1.57x as of July 31, 2026.
Positive
- Q3 2026 net income up 33% to $235.4 million; EPS $1.67
- Q3 2026 net sales up 23% to $1,413.1 million
- Q3 2026 operating income up 34% to $355.2 million; margin 25.1%
- First nine months net income up 31% to $659.4 million; EPS $4.67
- First nine months net sales up 21% to $3,967.3 million
- Q3 2026 EBITDA up 31% to $415.2 million; nine‑month EBITDA $1,135.5 million (+28%)
- Operating cash flow Q3 2026 up 49% to $345.3 million
- Flight Support Group Q3 net sales $947.8 million (+18%), operating income $245.3 million (+24%)
- Electronic Technologies Group Q3 net sales $483.5 million (+36%), operating income $125.6 million (+55%)
- Consolidated organic net sales growth 14% in Q3 2026
- Leverage metrics improved: total debt to net income 3.00x; net debt to EBITDA 1.57x as of July 31, 2026
- $1.2 billion senior notes issued with proceeds used to repay revolving credit facility borrowings
Negative
- None.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 10 | Conference call notice | Neutral | +0.8% | Scheduled third-quarter results release and conference call logistics |
| Jul 16 | Senior notes offering | Negative | -2.1% | Completed $1.2 billion senior notes offering to repay revolving borrowings |
| Jun 15 | Dividend increase | Positive | +1.4% | Raised semiannual cash dividend by 8% to $0.13 per share |
| Jun 12 | Credit facility increase | Positive | -2.2% | Expanded revolving credit facility to $2.2 billion and extended maturity |
| Jun 10 | Acquisition announcement | Positive | -1.7% | Exxelia acquired 90% of high-voltage capacitor maker CalRamic Technologies |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
HEICO's prior news reactions were mixed, including negative moves following both financing and favorable corporate announcements.
Key Terms
ebitda financial
non-gaap financial
sg&a financial
net debt to ebitda ratio financial
organic net sales growth financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Consolidated Quarterly Organic Net Sales Growth Reaches
HOLLYWOOD, FL AND MIAMI, FL / ACCESS Newswire / August 25, 2026 / HEICO CORPORATION (NYSE:HEI.A)(NYSE:HEI) today reported an increase in net income of
Net sales increased
Net sales increased
EBITDA increased
Consolidated Results
Eric A. Mendelson and Victor H. Mendelson, HEICO's Co-Chairmen and Co-Chief Executive Officers, commented on the Company's third quarter results stating, "HEICO continued its excellent growth, with record quarterly net income, operating income and net sales supported by
Cash flow provided by operating activities increased
Our total debt to net income attributable to HEICO ratio improved to 3.00x as of July 31, 2026, down from 3.14x as of October 31, 2025, and our net debt to EBITDA ratio improved to 1.57x as of July 31, 2026, down from 1.60x as of October 31, 2025. See our reconciliation of total debt to net debt at the end of this press release.
During the third quarter, we successfully completed the public offering of
For the remainder of fiscal 2026, we expect increased net sales at both the Flight Support Group and Electronic Technologies Group to continue to be supported by underlying demand for our products and contributions from recent acquisitions. We remain focused on identifying and evaluating acquisition opportunities that align with our strategic objectives. Our capital allocation strategy continues to prioritize investments in organic growth and acquisitions while preserving adequate liquidity and financial flexibility."
Flight Support Group
The Flight Support Group delivered record quarterly net sales and operating income in the third quarter of fiscal 2026, with operating income and net sales increasing
The Flight Support Group's net sales increased
The Flight Support Group's net sales increased
The Flight Support Group's operating income increased
The Flight Support Group's operating income increased
The Flight Support Group's operating margin improved to
The Flight Support Group's operating margin improved to
Electronic Technologies Group
The Electronic Technologies Group's strong performance continued in the third quarter of fiscal 2026, with record operating income and net sales increasing
The Electronic Technologies Group's net sales increased
The Electronic Technologies Group's net sales increased
The Electronic Technologies Group's operating income increased
The Electronic Technologies Group's operating income increased
The Electronic Technologies Group's operating margin improved to
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 enhances 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 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 84.5 million shares of HEICO's Class A Common Stock (HEI.A) outstanding and 55.2 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 Wednesday, August 26, 2026 at 9:00 a.m. Eastern Daylight Time to discuss its third 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 2905092. 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 July 31, | ||||||||
2026 | 2025 | |||||||
Net sales | $ | 1,413,050 | $ | 1,147,591 | ||||
Cost of sales | 832,063 | 690,434 | ||||||
Selling, general and administrative expenses | 225,790 | 192,138 | ||||||
Operating income | 355,197 | 265,019 | ||||||
Interest expense | (35,904 | ) | (31,701 | ) | ||||
Other income | 1,285 | 1,662 | ||||||
Income before income taxes and noncontrolling interests | 320,578 | 234,980 | ||||||
Income tax expense | 66,100 | 44,300 | ||||||
Net income from consolidated operations | 254,478 | 190,680 | ||||||
Less: Net income attributable to noncontrolling interests | 19,039 | 13,339 | ||||||
Net income attributable to HEICO | $ | 235,439 | $ | 177,341 | ||||
Net income per share attributable to HEICO shareholders: | ||||||||
Basic | $ | 1.69 | $ | 1.27 | ||||
Diluted | $ | 1.67 | $ | 1.26 | ||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 139,702 | 139,135 | ||||||
Diluted | 141,269 | 140,950 | ||||||
Three Months Ended July 31, | ||||||||
2026 | 2025 | |||||||
Operating segment information: | ||||||||
Net sales: | ||||||||
Flight Support Group | $ | 947,803 | $ | 802,661 | ||||
Electronic Technologies Group | 483,487 | 355,863 | ||||||
Intersegment sales | (18,240 | ) | (10,933 | ) | ||||
$ | 1,413,050 | $ | 1,147,591 | |||||
Operating income: | ||||||||
Flight Support Group | $ | 245,299 | $ | 198,326 | ||||
Electronic Technologies Group | 125,565 | 80,998 | ||||||
Other, primarily corporate | (15,667 | ) | (14,305 | ) | ||||
$ | 355,197 | $ | 265,019 | |||||
Depreciation and amortization: | ||||||||
Flight Support Group | $ | 32,457 | $ | 28,581 | ||||
Electronic Technologies Group | 26,634 | 20,297 | ||||||
Other, primarily corporate | (348 | ) | 889 | |||||
$ | 58,743 | (c) | $ | 49,767 | (c) | |||
HEICO CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
Nine Months Ended July 31, | ||||||||
2026 | 2025 | |||||||
Net sales | $ | 3,967,345 | $ | 3,275,633 | ||||
Cost of sales | 2,361,869 | 1,975,010 | ||||||
Selling, general and administrative expenses | 639,943 | 560,647 | ||||||
Operating income | 965,533 | 739,976 | ||||||
Interest expense | (99,551 | ) | (97,024 | ) | ||||
Other income | 3,583 | 3,217 | ||||||
Income before income taxes and noncontrolling interests | 869,565 | 646,169 | ||||||
Income tax expense | 160,000 | (a) | 103,400 | (b) | ||||
Net income from consolidated operations | 709,565 | 542,769 | ||||||
Less: Net income attributable to noncontrolling interests | 50,137 | 40,680 | ||||||
Net income attributable to HEICO | $ | 659,428 | (a) | $ | 502,089 | (b) | ||
Net income per share attributable to HEICO shareholders: | ||||||||
Basic | $ | 4.73 | (a) | $ | 3.61 | (b) | ||
Diluted | $ | 4.67 | (a) | $ | 3.57 | (b) | ||
Weighted average number of common shares outstanding: | ||||||||
Basic | 139,544 | 138,993 | ||||||
Diluted | 141,122 | 140,678 | ||||||
Nine Months Ended July 31, | ||||||||
2026 | 2025 | |||||||
Operating segment information: | ||||||||
Net sales: | ||||||||
Flight Support Group | $ | 2,697,230 | $ | 2,282,905 | ||||
Electronic Technologies Group | 1,313,694 | 1,028,345 | ||||||
Intersegment sales | (43,579 | ) | (35,617 | ) | ||||
$ | 3,967,345 | $ | 3,275,633 | |||||
Operating income: | ||||||||
Flight Support Group | $ | 689,096 | $ | 549,422 | ||||
Electronic Technologies Group | 320,620 | 235,334 | ||||||
Other, primarily corporate | (44,183 | ) | (44,780 | ) | ||||
$ | 965,533 | $ | 739,976 | |||||
Depreciation and amortization: | ||||||||
Flight Support Group | $ | 90,223 | $ | 82,862 | ||||
Electronic Technologies Group | 74,834 | 59,334 | ||||||
Other, primarily corporate | 1,328 | 2,673 | ||||||
$ | 166,385 | (c) | $ | 144,869 | (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 and nine months ended July 31, 2026 and 2025, is as follows (in thousands): |
Three Months Ended July 31, | Nine Months Ended July 31, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Depreciation: | ||||||||||||||||
Flight Support Group | $ | 7,732 | $ | 7,096 | $ | 21,770 | $ | 20,283 | ||||||||
Electronic Technologies Group | 7,514 | 6,556 | 21,599 | 18,586 | ||||||||||||
Other, primarily corporate | 437 | 497 | 1,328 | 1,496 | ||||||||||||
$ | 15,683 | $ | 14,149 | $ | 44,697 | $ | 40,365 | |||||||||
Amortization: | ||||||||||||||||
Flight Support Group | $ | 24,725 | $ | 21,485 | $ | 68,453 | $ | 62,579 | ||||||||
Electronic Technologies Group | 19,120 | 13,741 | 53,235 | 40,748 | ||||||||||||
Other, primarily corporate * | (785 | ) | 392 | - | 1,177 | |||||||||||
$ | 43,060 | $ | 35,618 | $ | 121,688 | $ | 104,504 | |||||||||
* Corporate amortization expense for the three months ended July 31, 2026 reflects a year-to-date reclassification of debt issuance cost amortization associated with the Company's revolving credit facility from SG&A expenses to interest expense.
HEICO CORPORATION
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
July 31, 2026 | October 31, 2025 | |||||||
Cash and cash equivalents | $ | 240,959 | $ | 217,781 | ||||
Accounts receivable, net | 736,335 | 637,615 | ||||||
Contract assets | 134,443 | 119,257 | ||||||
Inventories, net | 1,447,885 | 1,295,336 | ||||||
Prepaid expenses and other current assets | 165,869 | 86,377 | ||||||
Total current assets | 2,725,491 | 2,356,366 | ||||||
Property, plant and equipment, net | 478,326 | 431,710 | ||||||
Goodwill | 4,356,143 | 3,661,624 | ||||||
Intangible assets, net | 1,776,942 | 1,471,440 | ||||||
Other assets | 599,709 | 579,294 | ||||||
Total assets | $ | 9,936,611 | $ | 8,500,434 | ||||
Current maturities of long-term debt | $ | 3,513 | $ | 3,358 | ||||
Other current liabilities | 999,566 | 828,646 | ||||||
Total current liabilities | 1,003,079 | 832,004 | ||||||
Long-term debt, net of current maturities | 2,537,660 | 2,164,587 | ||||||
Deferred income taxes | 181,511 | 107,186 | ||||||
Other long-term liabilities | 571,536 | 550,124 | ||||||
Total liabilities | 4,293,786 | 3,653,901 | ||||||
Redeemable noncontrolling interests | 617,893 | 467,358 | ||||||
Shareholders' equity | 5,024,932 | 4,379,175 | ||||||
Total liabilities and equity | $ | 9,936,611 | $ | 8,500,434 | ||||
HEICO CORPORATION
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Nine Months Ended July 31, | ||||||||
2026 | 2025 | |||||||
Operating Activities: | ||||||||
Net income from consolidated operations | $ | 709,565 | $ | 542,769 | ||||
Depreciation and amortization | 166,385 | 144,869 | ||||||
Share-based compensation expense | 34,439 | 18,346 | ||||||
Employer contributions to HEICO Savings and Investment Plan | 17,892 | 14,186 | ||||||
Increase in accrued contingent consideration, net | 7,973 | 8,974 | ||||||
Deferred income tax provision (benefit) | 2,755 | (28,789 | ) | |||||
Payment of contingent consideration | - | (2,190 | ) | |||||
Increase in accounts receivable | (58,724 | ) | (36,063 | ) | ||||
Increase in contract assets | (8,337 | ) | (20,305 | ) | ||||
Increase in inventories | (78,368 | ) | (60,157 | ) | ||||
Increase in current liabilities, net | 24,533 | 13,147 | ||||||
Other | (2,207 | ) | 44,153 | |||||
Net cash provided by operating activities | 815,906 | 638,940 | ||||||
Investing Activities: | ||||||||
Acquisitions, net of cash acquired | (1,018,164 | ) | (629,928 | ) | ||||
Capital expenditures | (54,104 | ) | (46,038 | ) | ||||
Investments related to HEICO Leadership Compensation Plan | (19,397 | ) | (21,689 | ) | ||||
Proceeds from corporate-owned life insurance policy withdrawals | 22,654 | - | ||||||
Other | (3,858 | ) | (39 | ) | ||||
Net cash used in investing activities | (1,072,869 | ) | (697,694 | ) | ||||
Financing Activities: | ||||||||
Proceeds from issuance of senior unsecured notes | 1,191,506 | - | ||||||
(Payments) borrowings on revolving credit facility, net | (815,000 | ) | 220,000 | |||||
Cash dividends paid | (34,889 | ) | (31,968 | ) | ||||
Acquisitions of noncontrolling interests | (29,345 | ) | (5,773 | ) | ||||
Distributions to noncontrolling interests | (25,820 | ) | (27,248 | ) | ||||
Redemptions of common stock related to stock option exercises | (4,924 | ) | (1,979 | ) | ||||
Debt issuance costs | (4,582 | ) | - | |||||
Payment of contingent consideration | - | (5,954 | ) | |||||
Proceeds from stock option exercises | 5,294 | 11,680 | ||||||
Other | (2,234 | ) | (3,509 | ) | ||||
Net cash provided by financing activities | 280,006 | 155,249 | ||||||
Effect of exchange rate changes on cash | 135 | 3,290 | ||||||
Net increase in cash and cash equivalents | 23,178 | 99,785 | ||||||
Cash and cash equivalents at beginning of year | 217,781 | 162,103 | ||||||
Cash and cash equivalents at end of period | $ | 240,959 | $ | 261,888 | ||||
HEICO CORPORATION
Non-GAAP Financial Measures (Unaudited)
(in thousands, except ratios)
Three Months Ended July 31, | ||||||||
EBITDA Calculation | 2026 | 2025 | ||||||
Net income attributable to HEICO | $ | 235,439 | $ | 177,341 | ||||
Plus: Depreciation and amortization | 58,743 | 49,767 | ||||||
Plus: Net income attributable to noncontrolling interests | 19,039 | 13,339 | ||||||
Plus: Interest expense | 35,904 | 31,701 | ||||||
Plus: Income tax expense | 66,100 | 44,300 | ||||||
EBITDA (a) | $ | 415,225 | $ | 316,448 | ||||
Nine Months Ended July 31, | ||||||||
EBITDA Calculation | 2026 | 2025 | ||||||
Net income attributable to HEICO | $ | 659,428 | $ | 502,089 | ||||
Plus: Depreciation and amortization | 166,385 | 144,869 | ||||||
Plus: Net income attributable to noncontrolling interests | 50,137 | 40,680 | ||||||
Plus: Interest expense | 99,551 | 97,024 | ||||||
Plus: Income tax expense | 160,000 | 103,400 | ||||||
EBITDA (a) | $ | 1,135,501 | $ | 888,062 | ||||
Trailing Twelve Months Ended | ||||||||
EBITDA Calculation | July 31, 2026 | October 31, 2025 | ||||||
Net income attributable to HEICO | $ | 847,724 | $ | 690,385 | ||||
Plus: Depreciation and amortization | 217,592 | 196,076 | ||||||
Plus: Net income attributable to noncontrolling interests | 64,626 | 55,169 | ||||||
Plus: Interest expense | 132,404 | 129,877 | ||||||
Plus: Income tax expense | 204,600 | 148,000 | ||||||
EBITDA (a) | $ | 1,466,946 | $ | 1,219,507 | ||||
Net Debt Calculation | July 31, 2026 | October 31, 2025 | ||||||
Total debt | $ | 2,541,173 | $ | 2,167,945 | ||||
Less: Cash and cash equivalents | (240,959 | ) | (217,781 | ) | ||||
Net debt (a) | $ | 2,300,214 | $ | 1,950,164 | ||||
Total debt | $ | 2,541,173 | $ | 2,167,945 | ||||
Net income attributable to HEICO (trailing twelve months) | $ | 847,724 | $ | 690,385 | ||||
Total debt to net income attributable to HEICO ratio | 3.00 | 3.14 | ||||||
Net debt | $ | 2,300,214 | $ | 1,950,164 | ||||
EBITDA (trailing twelve months) | $ | 1,466,946 | $ | 1,219,507 | ||||
Net debt to EBITDA ratio (a) | 1.57 | 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