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HEICO Q2 Earnings Beat Estimates, Sales Increase Year Over Year
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Key Takeaways
HEI fiscal Q2 EPS of $1.66 beat $1.33; net sales rose 25.3% year over year to $1.38B.
HEI posted record net income of $233.8M; operating margin expanded to 25.5%.
HEI Flight Support sales rose 21% to $929.4M; Electronic Tech sales climbed 34% to $459.5M.
HEICO Corporation (HEI - Free Report) posted second-quarter fiscal 2026 earnings of $1.66 per share, which beat the Zacks Consensus Estimate of $1.33 by 24.6%. The bottom line also improved 48.2% from the year-ago quarter’s $1.12.
HEI’s Total Sales
Quarterly net sales came in at $1.38 billion, up 25.3% year over year and 10.7% above the consensus mark of $1.24 billion. Results were driven by consolidated organic net sales growth of 18% and contributions from acquisitions.
Heico Corporation Price, Consensus and EPS Surprise
HEICO’s cost of sales increased 22.1% year over year to $806.2 million.
The company’s selling, general and administrative (SG&A) expenses rose 15.5% to $219.1 million.
Interest expense climbed 3.9% to $34.2 million from $32.9 million in the year-ago quarter.
HEI Posts Record Profit as Margins Expand
Operating income rose 41.2% year over year to $350.4 million, and consolidated operating margin expanded to 25.5% from 22.6% in the prior-year period.
HEI delivered record quarterly net income attributable of $233.8 million, up 49% year over year.
HEI’s Segmental Performance in Q2
Flight Support Group: Net sales from this segment rose 21% year over year to $929.4 million. Growth was led by robust organic expansion of 19%, supported by improved demand across the group’s product lines as well as the impact of fiscal 2026 acquisitions.
The segment’s operating income increased 31% year over year to $243.1 million, and operating margin improved to 26.2% from 24.1%, helped by a more favorable product mix and efficiencies in SG&A expenses.
Electronic Technologies Group: The segment’s net sales climbed 34% to $459.5 million. The increase reflected organic growth of 17% plus contributions from acquisitions completed in fiscal 2025 and fiscal 2026, with demand improving across several end markets.
The segment’s operating income rose 56% year over year to $121.8 million, and operating margin expanded to 26.5% from 22.8%, driven by net sales growth, improved gross profit margin and better SG&A leverage.
HEI’s Financial Details
As of April 30, 2026, HEI’s cash and cash equivalents totaled $210.3 million compared with $217.8 million as of Oct. 31, 2025.
Cash flow provided by operating activities was $470.6 million during the first six months of fiscal 2026, reflecting a rise of 15.4% from the prior-year period’s level.
HEICO reported a long-term debt (net of current maturities) of $2.58 billion as of April 30, 2026, up from $2.16 billion as of Oct. 31, 2025.
Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.
Total sales were $1.56 billion, which beat the Zacks Consensus Estimate of $1.51 billion by 3.3%. The top line also jumped 7.6% from $1.45 billion reported in the year-ago quarter.
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) reported first-quarter 2026 adjusted earnings of 16 cents per share, which beat the Zacks Consensus Estimate of 13 cents by 26.3%. The bottom line also increased 33.3% from the year-ago quarter’s 12 cents.
Total revenues were $371 million, which outpaced the Zacks Consensus Estimate of $344 million by 7.7%. The figure also rose 22.6% from $302.6 million recorded in the year-ago quarter.
TransDigm Group Incorporated (TDG - Free Report) reported second-quarter fiscal 2026 adjusted earnings of $9.85 per share, which topped the Zacks Consensus Estimate of $9.32 by 5.7%. The bottom line also improved 8% from the prior-year quarter’s figure of $9.11.
Sales amounted to $2.54 billion, up 18% from $2.15 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.42 billion by 4.9%.
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HEICO Q2 Earnings Beat Estimates, Sales Increase Year Over Year
Key Takeaways
HEICO Corporation (HEI - Free Report) posted second-quarter fiscal 2026 earnings of $1.66 per share, which beat the Zacks Consensus Estimate of $1.33 by 24.6%. The bottom line also improved 48.2% from the year-ago quarter’s $1.12.
HEI’s Total Sales
Quarterly net sales came in at $1.38 billion, up 25.3% year over year and 10.7% above the consensus mark of $1.24 billion. Results were driven by consolidated organic net sales growth of 18% and contributions from acquisitions.
Heico Corporation Price, Consensus and EPS Surprise
Heico Corporation price-consensus-eps-surprise-chart | Heico Corporation Quote
HEICO’s Operational Update
HEICO’s cost of sales increased 22.1% year over year to $806.2 million.
The company’s selling, general and administrative (SG&A) expenses rose 15.5% to $219.1 million.
Interest expense climbed 3.9% to $34.2 million from $32.9 million in the year-ago quarter.
HEI Posts Record Profit as Margins Expand
Operating income rose 41.2% year over year to $350.4 million, and consolidated operating margin expanded to 25.5% from 22.6% in the prior-year period.
HEI delivered record quarterly net income attributable of $233.8 million, up 49% year over year.
HEI’s Segmental Performance in Q2
Flight Support Group: Net sales from this segment rose 21% year over year to $929.4 million. Growth was led by robust organic expansion of 19%, supported by improved demand across the group’s product lines as well as the impact of fiscal 2026 acquisitions.
The segment’s operating income increased 31% year over year to $243.1 million, and operating margin improved to 26.2% from 24.1%, helped by a more favorable product mix and efficiencies in SG&A expenses.
Electronic Technologies Group: The segment’s net sales climbed 34% to $459.5 million. The increase reflected organic growth of 17% plus contributions from acquisitions completed in fiscal 2025 and fiscal 2026, with demand improving across several end markets.
The segment’s operating income rose 56% year over year to $121.8 million, and operating margin expanded to 26.5% from 22.8%, driven by net sales growth, improved gross profit margin and better SG&A leverage.
HEI’s Financial Details
As of April 30, 2026, HEI’s cash and cash equivalents totaled $210.3 million compared with $217.8 million as of Oct. 31, 2025.
Cash flow provided by operating activities was $470.6 million during the first six months of fiscal 2026, reflecting a rise of 15.4% from the prior-year period’s level.
HEICO reported a long-term debt (net of current maturities) of $2.58 billion as of April 30, 2026, up from $2.16 billion as of Oct. 31, 2025.
HEICO’s Zacks Rank
HEICO currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.
Total sales were $1.56 billion, which beat the Zacks Consensus Estimate of $1.51 billion by 3.3%. The top line also jumped 7.6% from $1.45 billion reported in the year-ago quarter.
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) reported first-quarter 2026 adjusted earnings of 16 cents per share, which beat the Zacks Consensus Estimate of 13 cents by 26.3%. The bottom line also increased 33.3% from the year-ago quarter’s 12 cents.
Total revenues were $371 million, which outpaced the Zacks Consensus Estimate of $344 million by 7.7%. The figure also rose 22.6% from $302.6 million recorded in the year-ago quarter.
TransDigm Group Incorporated (TDG - Free Report) reported second-quarter fiscal 2026 adjusted earnings of $9.85 per share, which topped the Zacks Consensus Estimate of $9.32 by 5.7%. The bottom line also improved 8% from the prior-year quarter’s figure of $9.11.
Sales amounted to $2.54 billion, up 18% from $2.15 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.42 billion by 4.9%.