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HEICO Reports Higher Fiscal 2026 Third-Quarter Income, Sales and Operating Profit

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HEICO Corporation reported record net income, net sales and operating income for the third quarter of fiscal 2026, supported by organic sales growth and contributions from acquisitions. For the three months ended July 31, 2026, net income rose 33% to $235.4 million, or $1.67 per diluted share, while net sales increased 23% to $1,413.1 million.

#Third-Quarter Financial Results

Operating income increased 34% to $355.2 million from $265.0 million in the third quarter of fiscal 2025. HEICO’s consolidated operating margin was 25.1%, compared with 23.1% a year earlier.

EBITDA, which HEICO presents as a non-GAAP measure, was $415.2 million in the quarter, compared with $316.4 million in the third quarter of fiscal 2025. Consolidated organic net sales growth reached 14%.

#First Nine Months of Fiscal 2026

For the first nine months of fiscal 2026, net income increased 31% to $659.4 million, or $4.67 per diluted share, from $502.1 million, or $3.57 per diluted share, in the comparable period of fiscal 2025.

Net sales rose 21% to $3,967.3 million from $3,275.6 million, while operating income increased 30% to $965.5 million from $740.0 million. The consolidated operating margin improved to 24.3% from 22.6%.

EBITDA for the first nine months was $1,135.5 million, compared with $888.1 million in the first nine months of fiscal 2025.

#Flight Support Group Performance

HEICO’s Flight Support Group recorded third-quarter net sales of $947.8 million, up from $802.7 million in the third quarter of fiscal 2025. Operating income increased to $245.3 million from $198.3 million, while the group’s operating margin rose to 25.9% from 24.7%.

The group reported organic net sales growth of 12% for the quarter. HEICO attributed the performance to demand across its product lines, contributions from fiscal 2026 acquisitions, an improved gross profit margin and selling, general and administrative expense efficiencies.

For the first nine months, Flight Support Group net sales were $2,697.2 million, compared with $2,282.9 million. Operating income was $689.1 million, compared with $549.4 million, and the operating margin improved to 25.5% from 24.1%.

#Electronic Technologies Group Performance

The Electronic Technologies Group generated third-quarter net sales of $483.5 million, compared with $355.9 million in the third quarter of fiscal 2025. Operating income rose to $125.6 million from $81.0 million, and the operating margin increased to 26.0% from 22.8%.

Organic net sales growth was 18% in the quarter. HEICO said increased demand for other electronics, defense and aerospace products contributed to the organic increase, alongside acquisitions completed in fiscal 2026 and fiscal 2025.

For the first nine months, the group’s net sales increased to $1,313.7 million from $1,028.3 million. Operating income reached $320.6 million, compared with $235.3 million, while the operating margin improved to 24.4% from 22.9%.

#Cash Flow, Debt and Senior Notes

Cash flow provided by operating activities was $345.3 million in the third quarter of fiscal 2026, compared with $231.2 million in the third quarter of fiscal 2025.

As of July 31, 2026, HEICO reported a total debt to net income attributable to HEICO ratio of 3.00, compared with 3.14 as of October 31, 2025. Its net debt to EBITDA ratio was 1.57, compared with 1.60 at October 31, 2025.

During the quarter, HEICO completed a public offering comprising $550 million aggregate principal amount of 4.950% Senior Notes due August 1, 2031 and $650 million aggregate principal amount of 5.400% Senior Notes due August 1, 2036. The company said the net proceeds were used to repay outstanding borrowings under its revolving credit facility.

#Company Outlook and Identified Risks

Eric A. Mendelson and Victor H. Mendelson, HEICO’s Co-Chairmen and Co-Chief Executive Officers, said the company continues to forecast strong cash flow from operations for fiscal 2026. They also said HEICO expects increased net sales at both operating groups for the remainder of fiscal 2026, supported by underlying product demand and contributions from recent acquisitions.

The executives said HEICO remains focused on identifying and evaluating acquisition opportunities aligned with its strategic objectives. The company’s stated capital allocation priorities include organic growth, acquisitions, liquidity and financial flexibility.

HEICO cautioned that forward-looking statements are subject to risks, uncertainties and contingencies, and that actual results may differ materially. The risks identified include lower commercial air travel, airline fleet changes, product specification costs, government and regulatory requirements, export restrictions, reductions in defense or space spending, competition, manufacturing difficulties, cybersecurity events, acquisition execution, customer credit risk, interest and foreign currency exchange rates, income tax rates and economic conditions, including inflation.

#Non-GAAP Measures

HEICO defines EBITDA as net income attributable to HEICO adjusted for depreciation and amortization expense, net income attributable to noncontrolling interests, interest expense and income tax expense. The company also reports net debt and the net debt to EBITDA ratio as non-GAAP measures.

HEICO states that these measures supplement, but are not alternatives to, results prepared under GAAP. It also notes that the measures have limitations and may differ from non-GAAP measures used by other companies.

#Stock Classes and Results Conference Call

HEICO has two classes of common stock listed on the NYSE: Class A Common Stock, trading under HEI.A, and Common Stock, trading under HEI. The company states that the classes are virtually identical in economic respects, but HEI.A carries 1/10 vote per share while HEI carries one vote per share.

Approximately 84.5 million shares of HEI.A and 55.2 million shares of HEI were outstanding, according to the company.

HEICO said it will hold a conference call on August 26, 2026, at 9:00 a.m. Eastern Daylight Time to discuss the third-quarter results. A digital replay is scheduled to be available two hours after the call ends for 14 days.

#Key Takeaways

  • Third-quarter fiscal 2026 net income increased 33% to $235.4 million.
  • Net sales rose 23% to $1,413.1 million, while operating income increased 34% to $355.2 million.
  • Flight Support Group and Electronic Technologies Group both reported higher quarterly sales and operating income.
  • HEICO completed offerings of $550 million and $650 million of Senior Notes and used the net proceeds to repay revolving credit facility borrowings.
  • The company provided fiscal 2026 cash-flow and sales expectations while outlining risks that could affect actual results.

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Frequently Asked Questions

HEICO Corporation reported third-quarter fiscal 2026 net income of $235.4 million, or $1.67 per diluted share, compared with $177.3 million, or $1.26 per diluted share, in the third quarter of fiscal 2025. Net sales were $1,413.1 million, compared with $1,147.6 million, while operating income was $355.2 million, compared with $265.0 million. The consolidated operating margin was 25.1%, compared with 23.1%.
For the first nine months of fiscal 2026, HEICO reported net income of $659.4 million, or $4.67 per diluted share, compared with $502.1 million, or $3.57 per diluted share, in the first nine months of fiscal 2025. Net sales were $3,967.3 million, compared with $3,275.6 million, and operating income was $965.5 million, compared with $740.0 million. The consolidated operating margin was 24.3%, compared with 22.6%.
The Flight Support Group reported third-quarter fiscal 2026 net sales of $947.8 million and operating income of $245.3 million, compared with $802.7 million and $198.3 million respectively in the third quarter of fiscal 2025. Its operating margin was 25.9%, compared with 24.7%. The Electronic Technologies Group reported net sales of $483.5 million and operating income of $125.6 million, compared with $355.9 million and $81.0 million respectively. Its operating margin was 26.0%, compared with 22.8%.
Cash flow provided by operating activities was $345.3 million in the third quarter of fiscal 2026, compared with $231.2 million in the third quarter of fiscal 2025. As of July 31, 2026, the total debt to net income attributable to HEICO ratio was 3.00x, compared with 3.14x as of October 31, 2025, and the net debt to EBITDA ratio was 1.57x, compared with 1.60x. During the third quarter, HEICO completed a public offering of $550 million aggregate principal amount of 4.950% Senior Notes due August 1, 2031 and $650 million aggregate principal amount of 5.400% Senior Notes due August 1, 2036. The company said it used the net proceeds to repay outstanding borrowings under its revolving credit facility.
HEICO defines EBITDA as net income attributable to HEICO adjusted for depreciation and amortisation expense, net income attributable to noncontrolling interests, interest expense and income tax expense. EBITDA was $415.2 million in the third quarter of fiscal 2026, compared with $316.4 million in the third quarter of fiscal 2025, and $1,135.5 million in the first nine months of fiscal 2026, compared with $888.1 million. The company states that EBITDA, net debt and the net debt to EBITDA ratio are non-GAAP measures, have limitations, are not alternatives to GAAP measures and may differ from non-GAAP measures used by other companies.
Eric A. Mendelson and Victor H. Mendelson, HEICO’s Co-Chairmen and Co-Chief Executive Officers, said the company continued to forecast strong cash flow from operations for fiscal 2026. They said that, for the remainder of fiscal 2026, HEICO expects increased net sales at both the Flight Support Group and Electronic Technologies Group to continue to be supported by underlying demand for its products and contributions from recent acquisitions. These are forward-looking statements, and HEICO said actual results may differ materially because of risks, uncertainties and contingencies.
HEICO identified risks including the severity, magnitude and duration of public health threats; liquidity and the amount and timing of cash generation; lower commercial air travel, airline fleet changes or airline purchasing decisions; product specification costs and requirements; governmental and regulatory demands, export policies and restrictions; reductions in defence, space or homeland security spending; competition; product development or manufacturing difficulties; cybersecurity events or other information technology disruptions; its ability to make acquisitions and achieve operating synergies; customer credit risk; interest, foreign currency exchange and income tax rates; and economic conditions, including inflation, within and outside the aviation, defence, space, medical, telecommunications and electronics industries.
The source identifies HEICO Corporation as listed on the NYSE under (NYSE:HEI.A) and (NYSE:HEI). It states that the Class A Common Stock (HEI.A) and the Common Stock (HEI) are virtually identical in all economic respects, with the difference being voting rights: HEI.A carries 1/10 vote per share and HEI carries one vote per share. The source states that approximately 84.5 million shares of HEI.A and 55.2 million shares of HEI were outstanding.