Heico Corporation
HEI · NYSE
HEI · NYSE
Expected to report Dec 17, 2026 — estimated from last year’s reporting date.
Consensus is $1.58 EPS for Oct 2026 across 6 estimates, ranging $1.53 to $1.67.
HEICO’s third quarter was another record-setting print, led by broad organic demand and a sharper contribution from Electronic Technologies. Diluted EPS of $1.67 exceeded the $1.51 consensus by 10.6%, increased 33% from $1.26 in Q3 FY2025 and was essentially flat sequentially versus $1.66 in Q2 FY2026. Revenue of $1.413 billion was up 23% year over year and about 2% from the prior quarter, while operating income rose 34% year over year to $355.2 million and 1% sequentially. The consolidated operating margin reached 25.1%, compared with 23.1% a year earlier.
The defining feature was the combination of 14% organic sales growth and acquisition-driven expansion. Flight Support remained the larger engine, with 12% organic growth, an 18% sales increase to $947.8 million and a 25.9% margin. Electronic Technologies was the standout, delivering 18% organic growth, 36% sales growth to $483.5 million and 55% operating-income growth as aerospace, defense and other electronics demand supported mix and operating leverage. Cash flow also strengthened, with quarterly operating cash flow up 49% to $345.3 million. HEICO continued its acquisition strategy, deploying $1.018 billion year to date, while refinancing borrowings with $1.2 billion of senior notes and holding net debt to EBITDA at 1.57x.
HEICO’s growth was not solely acquisition-driven. Consolidated organic net sales growth reached 14% in the quarter, with management citing increased demand across the company’s product lines. Acquisitions made in fiscal 2026 and 2025 added to the 23% reported sales increase, and the company spent $1.018 billion on acquisitions during the first nine months.
Electronic Technologies was the fastest-growing part of the portfolio and the largest source of operating-income upside. Quarterly sales rose 36% to a record $483.5 million, including 18% organic growth, driven mainly by stronger demand for other electronics, defense and aerospace products. Operating income increased 55% to $125.6 million, with SG&A leverage and improved gross margin contributing to the result. The margin expanded to 26.0% from 22.8% a year earlier.
Flight Support delivered the majority of consolidated revenue and operating profit while maintaining strong growth. Sales rose 18% to a record $947.8 million, reflecting 12% organic growth across all product lines and contributions from fiscal 2026 acquisitions. Operating income grew 24% to $245.3 million, helped by higher sales, favorable product mix and SG&A efficiencies. Operating margin improved to 25.9% from 24.7%.
Cash conversion improved alongside earnings. Third-quarter operating cash flow rose 49% to $345.3 million from $231.2 million a year ago, and nine-month operating cash flow was $815.9 million versus $638.9 million. Working capital remained a use of cash, including $78.4 million for inventory and $58.7 million for accounts receivable over nine months.
The quarter extended a strong fiscal-year run. Through nine months, revenue increased 21% to $3.967 billion, operating income rose 30% to $965.5 million and net income attributable to HEICO increased 31% to $659.4 million. Diluted EPS was $4.67 versus $3.57 in the prior-year period, although the year-over-year comparison includes discrete tax benefits in both first quarters.
