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HEICO Q3 Earnings Top Estimates, Sales Increase Year Over Year
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Key Takeaways
HEICO's Q3 earnings beat estimates, while sales climbed 23.1% year over year.
HEICO's Flight Support Group benefited from strong organic growth and fiscal 2026 acquisitions.
HEICO's Electronic Technologies Group delivered 36% sales growth and a 55% rise in operating income.
HEICO Corporation (HEI - Free Report) posted third-quarter fiscal 2026 earnings of $1.67 per share, which beat the Zacks Consensus Estimate of $1.51 by 10.6%. The bottom line also improved 32.5% from the year-ago quarter’s $1.26.
HEI’s Total Sales
Quarterly net sales came in at $1.41 billion, which rose 23.1% year over year and surpassed the consensus mark of $1.35 billion by 4.9%. Results were driven by consolidated organic net sales growth of 14% and contributions from acquisitions.
Heico Corporation Price, Consensus and EPS Surprise
HEICO’s cost of sales increased 20.5% year over year to $832 million.
The company’s selling, general and administrative (SG&A) expenses rose 17.5% to $225.8 million.
Interest expense climbed 13.3% to $35.9 million from $31.7 million in the year-ago quarter.
HEI Posts Record Profit as Margins Expand
Operating income jumped 34% year over year to $355.2 million, and consolidated operating margin expanded to 25.1% from 23.1% in the prior-year period.
HEI delivered record quarterly net income of $235.4 million, up 32.8% year over year.
HEI’s Segmental Performance in Q3
Flight Support Group: Net sales from this segment rose 18% year over year to $947.8 million. Growth was led by robust organic expansion of 12%, 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 24% year over year to $245.3 million, and operating margin improved to 25.9% from 24.7%, helped by a more favorable product mix and efficiencies in SG&A expenses.
Electronic Technologies Group: The segment’s net sales climbed 36% to $483.5 million. The increase reflected organic growth of 18% plus contributions from acquisitions completed in fiscal 2025 and fiscal 2026, with demand improving across several end markets.
The segment’s operating income rose 55% year over year to $125.6 million, and operating margin expanded to 26% from 22.8%, driven by net sales growth, improved gross profit margin and better SG&A leverage.
HEI’s Financial Details
As of July 31, 2026, HEI’s cash and cash equivalents totaled $241 million compared with $217.8 million as of Oct. 31, 2025.
Cash flow provided by operating activities was $815.9 million during the first nine months of fiscal 2026, reflecting a rise of 27.7% from the prior-year period’s level.
HEICO reported a long-term debt (net of current maturities) of $2.54 billion as of July 31, 2026, up from $2.16 billion as of Oct. 31, 2025.
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) reported second-quarter 2026 adjusted earnings of 21 cents per share, which beat the Zacks Consensus Estimate of 13 cents by 61.5%. The bottom line also increased 90.9% from the year-ago quarter’s 11 cents.
Revenues of $458.8 million outpaced the consensus estimate of $412 million by 11.4% and increased 30.5% year over year.
TransDigm Group Incorporated (TDG - Free Report) reported third-quarter fiscal 2026 adjusted earnings of $10.87 per share, which topped the Zacks Consensus Estimate of $10.29 by 5.6%. The bottom line also improved 13% from the prior-year quarter’s figure of $9.60.
Sales rose 23% to $2.74 billion and beat the consensus estimate of $2.65 billion by 2.6%.
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HEICO Q3 Earnings Top Estimates, Sales Increase Year Over Year
Key Takeaways
HEICO Corporation (HEI - Free Report) posted third-quarter fiscal 2026 earnings of $1.67 per share, which beat the Zacks Consensus Estimate of $1.51 by 10.6%. The bottom line also improved 32.5% from the year-ago quarter’s $1.26.
HEI’s Total Sales
Quarterly net sales came in at $1.41 billion, which rose 23.1% year over year and surpassed the consensus mark of $1.35 billion by 4.9%. Results were driven by consolidated organic net sales growth of 14% 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 20.5% year over year to $832 million.
The company’s selling, general and administrative (SG&A) expenses rose 17.5% to $225.8 million.
Interest expense climbed 13.3% to $35.9 million from $31.7 million in the year-ago quarter.
HEI Posts Record Profit as Margins Expand
Operating income jumped 34% year over year to $355.2 million, and consolidated operating margin expanded to 25.1% from 23.1% in the prior-year period.
HEI delivered record quarterly net income of $235.4 million, up 32.8% year over year.
HEI’s Segmental Performance in Q3
Flight Support Group: Net sales from this segment rose 18% year over year to $947.8 million. Growth was led by robust organic expansion of 12%, 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 24% year over year to $245.3 million, and operating margin improved to 25.9% from 24.7%, helped by a more favorable product mix and efficiencies in SG&A expenses.
Electronic Technologies Group: The segment’s net sales climbed 36% to $483.5 million. The increase reflected organic growth of 18% plus contributions from acquisitions completed in fiscal 2025 and fiscal 2026, with demand improving across several end markets.
The segment’s operating income rose 55% year over year to $125.6 million, and operating margin expanded to 26% from 22.8%, driven by net sales growth, improved gross profit margin and better SG&A leverage.
HEI’s Financial Details
As of July 31, 2026, HEI’s cash and cash equivalents totaled $241 million compared with $217.8 million as of Oct. 31, 2025.
Cash flow provided by operating activities was $815.9 million during the first nine months of fiscal 2026, reflecting a rise of 27.7% from the prior-year period’s level.
HEICO reported a long-term debt (net of current maturities) of $2.54 billion as of July 31, 2026, up from $2.16 billion as of Oct. 31, 2025.
HEICO’s Zacks Rank
HEICO currently carries a Zacks Rank #2 (Buy). 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 second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) reported second-quarter 2026 adjusted earnings of 21 cents per share, which beat the Zacks Consensus Estimate of 13 cents by 61.5%. The bottom line also increased 90.9% from the year-ago quarter’s 11 cents.
Revenues of $458.8 million outpaced the consensus estimate of $412 million by 11.4% and increased 30.5% year over year.
TransDigm Group Incorporated (TDG - Free Report) reported third-quarter fiscal 2026 adjusted earnings of $10.87 per share, which topped the Zacks Consensus Estimate of $10.29 by 5.6%. The bottom line also improved 13% from the prior-year quarter’s figure of $9.60.
Sales rose 23% to $2.74 billion and beat the consensus estimate of $2.65 billion by 2.6%.