HEICO Corporation reported fiscal third-quarter net sales of $1.41 billion, up 23% year-over-year from $1.15 billion, exceeding the $1.35 billion consensus estimate by $60 million. Diluted earnings per share rose 33% to $1.67, surpassing the $1.51 forecast by $0.16, or 10.6%.
Net income reached a record $235.4 million, compared with $177.3 million in the same period a year earlier. Operating income also hit a record $355.2 million, a 34% increase from $265 million. EBITDA climbed 31% to $415.2 million, while operating cash flow surged 49% to $345.3 million.
For the nine-month period, net income totaled $659 million and operating cash flow reached $816 million. The net debt-to-EBITDA ratio improved to 1.57 times as of July 31, 2026, from 1.6 times at the start of the fiscal year. The company paid its 96th consecutive semiannual cash dividend at $0.13 per share, an 8% increase over the January 2026 payout.
HEICO’s Flight Support Group reported net sales of $947.8 million, an 18% increase driven by 12% organic growth. Operating income rose 24% to $245.3 million, with the operating margin expanding to 25.9% from 24.7%. The Electronic Technologies Group posted net sales of $483.5 million, up 36% year-over-year with 18% organic growth. Operating income increased 55% to $125.6 million, and the operating margin improved to 26% from 22.8%.
The company raised $1.2 billion through senior unsecured notes and extended its revolving credit facility by three years to June 2031, increasing committed capital to $2.2 billion with an option to expand to $3 billion. Lenders include Truist, Bank of America, PNC, Wells Fargo, and JP Morgan.
HEICO completed two acquisitions in June. Through its Flight Support Group, it acquired Cook Defence Systems Limited, William Cook Stanhope Limited, and William Cook Intermodal Limited for an undisclosed sum, adding track systems and armored components for military vehicles. The Electronic Technologies Group, via subsidiary Exxelia, acquired 90% of CalRamic Technologies LLC, a manufacturer of high-voltage ceramic capacitors.
Management reaffirmed a long-term net income growth target of 15% to 20% annually and expects GAAP operating margins for FSG to range between 22% and 24%, equivalent to roughly 26% to 28% on an EBITA basis. Free cash flow is projected to approach $1 billion for the full year, with a cash conversion rate from EBITDA near 70%. A $70 million to $75 million payment related to the estate of a former chairman and CEO is expected to weigh on fourth-quarter operating cash flow.
HEICO ended the quarter with total liquidity capacity of approximately $3 billion. The stock was trading at $351.71 at the time of the report, roughly 6.7% below its 52-week high of $376.86 and 37.3% above its low of $256.11.
