HEICO Corporation Reports Record Net Income (Up 49%) On Record Operating Income (Up 41%) and Record Net Sales (Up 25%) for the Second Quarter of Fiscal 2026
Rhea-AI Summary
HEICO (NYSE:HEI) reported record Q2 2026 results, with net income up 49% to $233.8 million ($1.66 per diluted share) and net sales up 25% to $1.38 billion. Operating income rose 41% to $350.4 million, lifting the consolidated operating margin to 25.5%.
For the first six months, net income increased 31% to $424.0 million ($3.01 per share) on net sales of $2.55 billion, up 20%. EBITDA grew 37% in Q2 and 26% year to date. Consolidated quarterly organic net sales growth exceeded 18%, supported by strong demand and contributions from recent acquisitions in both the Flight Support Group and Electronic Technologies Group.
AI-generated analysis. Not financial advice.
Positive
- Q2 2026 net income $233.8M, up 49% year over year
- Q2 net sales $1.38B, up 25% year over year
- Q2 operating income $350.4M, up 41% with 25.5% margin
- First-half 2026 net income $424.0M, up 31% year over year
- Consolidated quarterly organic net sales growth above 18%
- Q2 operating cash flow $292.0M, up 43% year over year
Negative
- Total debt to net income attributable to HEICO increased to 3.28x from 3.14x
- Net debt to EBITDA ratio rose to 1.74x from 1.60x
News Market Reaction – HEI
On the day this news was published, HEI gained 11.53%, reflecting a significant positive market reaction. Argus tracked a peak move of +6.7% during that session. Our momentum scanner triggered 17 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $5.08B to the company's valuation, bringing the market cap to $49.11B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
HEI gained 2.6% ahead of/with record earnings, while key aerospace/defense peers like LHX (-0.12%), TDG (-0.02%), ESLT (-0.59%) and GD (-0.12%) were modestly negative and HWM rose 0.45%, indicating a stock-specific move rather than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 06 | Earnings call notice | Neutral | -2.3% | Announced timing and access details for upcoming Q2 2026 results call. |
| Apr 13 | Acquisition announcement | Positive | +1.6% | Acquired 80% of Sherwood Aviation, expanding Flight Support MRO capabilities. |
| Apr 13 | Program participation | Positive | +1.6% | Subsidiaries supplied mission-critical components for NASA’s Artemis II mission. |
| Apr 09 | Acquisition announcement | Positive | -0.0% | Bought 90% of Southwest Antennas, adding high-performance RF/microwave antennas. |
| Apr 07 | Acquisition announcement | Positive | -0.5% | Acquired 80% of Sherwood Avionics & Accessories, expected to be earnings accretive. |
Recent news has largely been positive (acquisitions, contract wins), with share reactions typically modest and mostly aligned; one acquisition headline saw a small negative divergence.
Over the last few months, HEICO has combined steady corporate activity with strong fundamentals. Acquisitions such as Southwest Antennas and Sherwood Avionics expanded capabilities in RF antennas and defense MRO services, with management expecting them to be accretive to earnings. Space exposure was highlighted by supplying mission-critical parts for NASA’s Artemis II mission. A prior conference-call announcement on May 6, 2026 saw a mild pullback. Today’s record Q2 2026 net income, sales and operating income build directly on that growth and acquisition strategy.
Market Pulse Summary
The stock surged +11.5% in the session following this news. A strong positive reaction aligns with HEICO’s report of record results, including Q2 net income of $233.8 million and net sales of $1,375.7 million with organic growth above 18%. Past news episodes tied to acquisitions and strategic wins have generally seen modestly supportive price moves. Investors would need to watch whether elevated expectations and integration of multiple recent acquisitions affect future quarters and whether momentum above the 200-day moving average near 311.91 proves durable.
Key Terms
ebitda financial
net debt financial
net debt to ebitda ratio financial
non-gaap financial
regulation g regulatory
sg&a financial
AI-generated analysis. Not financial advice.
Consolidated Quarterly Organic Net Sales Growth exceeds
HOLLYWOOD, FL AND MIAMI, FL / ACCESS Newswire / May 27, 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 second quarter results stating, "Reporting yet another period of record results, HEICO's record quarterly net income, operating income and net sales were driven by
Cash flow provided by operating activities increased
Our total debt to net income attributable to HEICO ratio was 3.28x as of April 30, 2026, as compared to 3.14x as of October 31, 2025. Our net debt to EBITDA ratio was 1.74x as of April 30, 2026, as compared to 1.60x as of October 31, 2025. The increase in our leverage ratios in the first six months of fiscal 2026 is a result of our successful completion of four acquisitions, two by the Flight Support Group and two by the Electronic Technologies Group. See our reconciliation of total debt to net debt at the end of this press release.
For the remainder of fiscal 2026, we expect increased net sales at both the Flight Support Group and Electronic Technologies Group supported by underlying demand for our products and contributions from recent acquisitions. We intend to continue evaluating acquisition opportunities that are consistent with our strategic objectives. Our capital allocation approach remains opportunistic, focused on balancing organic growth with accretive acquisitions while maintaining liquidity and financial flexibility."
Flight Support Group
The Flight Support Group achieved record quarterly net sales and operating income in the second quarter of fiscal 2026, with net sales and operating income 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 margin improved to
Electronic Technologies Group
The Electronic Technologies Group achieved record quarterly net sales and operating income in the second quarter of fiscal 2026, with net sales and operating income improving
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
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 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 84.5 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 Thursday, May 28, 2026 at 9:00 a.m. Eastern Daylight Time to discuss its second 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 1509611. 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 April 30, | ||||||||
2026 | 2025 | |||||||
Net sales | $ | 1,375,713 | $ | 1,097,820 | ||||
Cost of sales | 806,188 | 660,016 | ||||||
Selling, general and administrative expenses | 219,088 | 189,652 | ||||||
Operating income | 350,437 | 248,152 | ||||||
Interest expense | (34,161 | ) | (32,865 | ) | ||||
Other income | 1,254 | 636 | ||||||
Income before income taxes and noncontrolling interests | 317,530 | 215,923 | ||||||
Income tax expense | 67,200 | 45,400 | ||||||
Net income from consolidated operations | 250,330 | 170,523 | ||||||
Less: Net income attributable to noncontrolling interests | 16,529 | 13,730 | ||||||
Net income attributable to HEICO | $ | 233,801 | $ | 156,793 | ||||
Net income per share attributable to HEICO shareholders: | ||||||||
Basic | $ | 1.68 | $ | 1.13 | ||||
Diluted | $ | 1.66 | $ | 1.12 | ||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 139,561 | 139,005 | ||||||
Diluted | 141,068 | 140,599 | ||||||
Three Months Ended April 30, | ||||||||
2026 | 2025 | |||||||
Operating segment information: | ||||||||
Net sales: | ||||||||
Flight Support Group | $ | 929,427 | $ | 767,070 | ||||
Electronic Technologies Group | 459,532 | 342,167 | ||||||
Intersegment sales | (13,246 | ) | (11,417 | ) | ||||
$ | 1,375,713 | $ | 1,097,820 | |||||
Operating income: | ||||||||
Flight Support Group | $ | 243,064 | $ | 184,980 | ||||
Electronic Technologies Group | 121,809 | 77,880 | ||||||
Other, primarily corporate | (14,436 | ) | (14,708 | ) | ||||
$ | 350,437 | $ | 248,152 | |||||
Depreciation and amortization: | ||||||||
Flight Support Group | $ | 29,891 | $ | 28,449 | ||||
Electronic Technologies Group | 25,916 | 19,537 | ||||||
Other, primarily corporate | 827 | 891 | ||||||
$ | 56,634 | (c) | $ | 48,877 | (c) | |||
HEICO CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
Six Months Ended April 30, | ||||||||
2026 | 2025 | |||||||
Net sales | $ | 2,554,295 | $ | 2,128,042 | ||||
Cost of sales | 1,529,806 | 1,284,576 | ||||||
Selling, general and administrative expenses | 414,153 | 368,509 | ||||||
Operating income | 610,336 | 474,957 | ||||||
Interest expense | (63,647 | ) | (65,323 | ) | ||||
Other income | 2,298 | 1,555 | ||||||
Income before income taxes and noncontrolling interests | 548,987 | 411,189 | ||||||
Income tax expense | 93,900 | (a) | 59,100 | (b) | ||||
Net income from consolidated operations | 455,087 | 352,089 | ||||||
Less: Net income attributable to noncontrolling interests | 31,098 | 27,341 | ||||||
Net income attributable to HEICO | $ | 423,989 | (a) | $ | 324,748 | (b) | ||
Net income per share attributable to HEICO shareholders: | ||||||||
Basic | $ | 3.04 | (a) | $ | 2.34 | (b) | ||
Diluted | $ | 3.01 | (a) | $ | 2.31 | (b) | ||
Weighted average number of common shares outstanding: | ||||||||
Basic | 139,464 | 138,921 | ||||||
Diluted | 141,049 | 140,541 | ||||||
Six Months Ended April 30, | ||||||||
2026 | 2025 | |||||||
Operating segment information: | ||||||||
Net sales: | ||||||||
Flight Support Group | $ | 1,749,427 | $ | 1,480,244 | ||||
Electronic Technologies Group | 830,207 | 672,482 | ||||||
Intersegment sales | (25,339 | ) | (24,684 | ) | ||||
$ | 2,554,295 | $ | 2,128,042 | |||||
Operating income: | ||||||||
Flight Support Group | $ | 443,797 | $ | 351,096 | ||||
Electronic Technologies Group | 195,055 | 154,336 | ||||||
Other, primarily corporate | (28,516 | ) | (30,475 | ) | ||||
$ | 610,336 | $ | 474,957 | |||||
Depreciation and amortization: | ||||||||
Flight Support Group | $ | 57,766 | $ | 54,281 | ||||
Electronic Technologies Group | 48,200 | 39,037 | ||||||
Other, primarily corporate | 1,676 | 1,784 | ||||||
$ | 107,642 | (c) | $ | 95,102 | (c) | |||
HEICO CORPORATION
Footnotes to Condensed Consolidated Statements of Operations (Unaudited)
During the first quarter of fiscal 2026, the Company recognized a
$22.3 million discrete tax benefit from stock option exercises, which, net of noncontrolling interests, increased net income attributable to HEICO by$21.8 million , or $.16 per basic share and $.15 per diluted share.During the first quarter of fiscal 2025, the Company recognized a
$27.2 million discrete tax benefit from stock option exercises, which, net of noncontrolling interests, increased net income attributable to HEICO by$26.5 million , or $.19 per basic and diluted share.Depreciation and amortization information on the Company's two operating segments for the three and six months ended April 30, 2026 and 2025, is as follows (in thousands):
Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Depreciation: | ||||||||||||||||
Flight Support Group | $ | 7,257 | $ | 6,609 | $ | 14,038 | $ | 13,187 | ||||||||
Electronic Technologies Group | 7,162 | 6,061 | 14,085 | 12,030 | ||||||||||||
Other, primarily corporate | 434 | 498 | 891 | 999 | ||||||||||||
$ | 14,853 | $ | 13,168 | $ | 29,014 | $ | 26,216 | |||||||||
Amortization: | ||||||||||||||||
Flight Support Group | $ | 22,634 | $ | 21,840 | $ | 43,728 | $ | 41,094 | ||||||||
Electronic Technologies Group | 18,754 | 13,476 | 34,115 | 27,007 | ||||||||||||
Other, primarily corporate | 393 | 393 | 785 | 785 | ||||||||||||
$ | 41,781 | $ | 35,709 | $ | 78,628 | $ | 68,886 | |||||||||
HEICO CORPORATION
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
April 30, 2026 | October 31, 2025 | |||||||
Cash and cash equivalents | $ | 210,335 | $ | 217,781 | ||||
Accounts receivable, net | 734,955 | 637,615 | ||||||
Contract assets | 131,590 | 119,257 | ||||||
Inventories, net | 1,410,527 | 1,295,336 | ||||||
Prepaid expenses and other current assets | 149,069 | 86,377 | ||||||
Total current assets | 2,636,476 | 2,356,366 | ||||||
Property, plant and equipment, net | 462,831 | 431,710 | ||||||
Goodwill | 4,197,386 | 3,661,624 | ||||||
Intangible assets, net | 1,715,157 | 1,471,440 | ||||||
Other assets | 580,363 | 579,294 | ||||||
Total assets | $ | 9,592,213 | $ | 8,500,434 | ||||
Current maturities of long-term debt | $ | 3,402 | $ | 3,358 | ||||
Other current liabilities | 900,180 | 828,646 | ||||||
Total current liabilities | 903,582 | 832,004 | ||||||
Long-term debt, net of current maturities | 2,583,888 | 2,164,587 | ||||||
Deferred income taxes | 164,584 | 107,186 | ||||||
Other long-term liabilities | 548,588 | 550,124 | ||||||
Total liabilities | 4,200,642 | 3,653,901 | ||||||
Redeemable noncontrolling interests | 536,654 | 467,358 | ||||||
Shareholders' equity | 4,854,917 | 4,379,175 | ||||||
Total liabilities and equity | $ | 9,592,213 | $ | 8,500,434 | ||||
HEICO CORPORATION
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Six Months Ended April 30, | ||||||||
2026 | 2025 | |||||||
Operating Activities: | ||||||||
Net income from consolidated operations | $ | 455,087 | $ | 352,089 | ||||
Depreciation and amortization | 107,642 | 95,102 | ||||||
Share-based compensation expense | 22,517 | 10,671 | ||||||
Deferred income tax provision (benefit) | 11,801 | (17,940 | ) | |||||
Employer contributions to HEICO Savings and Investment Plan | 10,474 | 8,500 | ||||||
Increase in accrued contingent consideration, net | 4,502 | 6,766 | ||||||
Payment of contingent consideration | - | (2,190 | ) | |||||
Increase in accounts receivable | (65,133 | ) | (40,361 | ) | ||||
Increase in contract assets | (6,300 | ) | (12,319 | ) | ||||
Increase in inventories | (40,463 | ) | (46,134 | ) | ||||
(Decrease) increase in current liabilities, net | (38,223 | ) | 526 | |||||
Other | 8,666 | 53,019 | ||||||
Net cash provided by operating activities | 470,570 | 407,729 | ||||||
Investing Activities: | ||||||||
Acquisitions, net of cash acquired | (821,269 | ) | (286,161 | ) | ||||
Capital expenditures | (31,546 | ) | (33,299 | ) | ||||
Investments related to HEICO Leadership Compensation Plan | (16,800 | ) | (17,700 | ) | ||||
Proceeds from corporate-owned life insurance policy withdrawals | 22,654 | - | ||||||
Other | (3,995 | ) | (2,599 | ) | ||||
Net cash used in investing activities | (850,956 | ) | (339,759 | ) | ||||
Financing Activities: | ||||||||
Borrowings on revolving credit facility, net | 420,000 | 50,000 | ||||||
Cash dividends paid | (16,724 | ) | (15,272 | ) | ||||
Distributions to noncontrolling interests | (16,364 | ) | (17,563 | ) | ||||
Acquisitions of noncontrolling interests | (12,414 | ) | (4,205 | ) | ||||
Redemptions of common stock related to stock option exercises | (4,813 | ) | (1,415 | ) | ||||
Payment of contingent consideration | - | (5,954 | ) | |||||
Proceeds from stock option exercises | 3,843 | 5,786 | ||||||
Other | (1,642 | ) | (2,114 | ) | ||||
Net cash provided by financing activities | 371,886 | 9,263 | ||||||
Effect of exchange rate changes on cash | 1,054 | 2,973 | ||||||
Net (decrease) increase in cash and cash equivalents | (7,446 | ) | 80,206 | |||||
Cash and cash equivalents at beginning of year | 217,781 | 162,103 | ||||||
Cash and cash equivalents at end of period | $ | 210,335 | $ | 242,309 | ||||
HEICO CORPORATION
Non-GAAP Financial Measures (Unaudited)
(in thousands, except ratios)
Three Months Ended April 30, | ||||||||
EBITDA Calculation | 2026 | 2025 | ||||||
Net income attributable to HEICO | $ | 233,801 | $ | 156,793 | ||||
Plus: Depreciation and amortization | 56,634 | 48,877 | ||||||
Plus: Net income attributable to noncontrolling interests | 16,529 | 13,730 | ||||||
Plus: Interest expense | 34,161 | 32,865 | ||||||
Plus: Income tax expense | 67,200 | 45,400 | ||||||
EBITDA (a) | $ | 408,325 | $ | 297,665 | ||||
Six Months Ended April 30, | ||||||||
EBITDA Calculation | 2026 | 2025 | ||||||
Net income attributable to HEICO | $ | 423,989 | $ | 324,748 | ||||
Plus: Depreciation and amortization | 107,642 | 95,102 | ||||||
Plus: Net income attributable to noncontrolling interests | 31,098 | 27,341 | ||||||
Plus: Interest expense | 63,647 | 65,323 | ||||||
Plus: Income tax expense | 93,900 | 59,100 | ||||||
EBITDA (a) | $ | 720,276 | $ | 571,614 | ||||
Trailing Twelve Months Ended | ||||||||
EBITDA Calculation | April 30, 2026 | October 31, 2025 | ||||||
Net income attributable to HEICO | $ | 789,626 | $ | 690,385 | ||||
Plus: Depreciation and amortization | 208,616 | 196,076 | ||||||
Plus: Net income attributable to noncontrolling interests | 58,926 | 55,169 | ||||||
Plus: Interest expense | 128,201 | 129,877 | ||||||
Plus: Income tax expense | 182,800 | 148,000 | ||||||
EBITDA (a) | $ | 1,368,169 | $ | 1,219,507 | ||||
Net Debt Calculation | April 30, 2026 | October 31, 2025 | ||||||
Total debt | $ | 2,587,290 | $ | 2,167,945 | ||||
Less: Cash and cash equivalents | (210,335 | ) | (217,781 | ) | ||||
Net debt (a) | $ | 2,376,955 | $ | 1,950,164 | ||||
Total debt | $ | 2,587,290 | $ | 2,167,945 | ||||
Net income attributable to HEICO (trailing twelve months) | $ | 789,626 | $ | 690,385 | ||||
Total debt to net income attributable to HEICO ratio | 3.28 | 3.14 | ||||||
Net debt | $ | 2,376,955 | $ | 1,950,164 | ||||
EBITDA (trailing twelve months) | $ | 1,368,169 | $ | 1,219,507 | ||||
Net debt to EBITDA ratio (a) | 1.74 | 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