Aerospace parts maker HEICO's Q3 sales beat analyst estimates on organic growth, acquisitions

HEICO

25/08/2026 21:27

Overview
U.S. aerospace components maker's fiscal Q3 sales rose 23%, beating analyst expectations
Net income up 33% yr/yr, with diluted EPS at $1.67 for fiscal Q3
Growth driven by organic sales and recent acquisitions, operating margin improved to 25.1%

Outlook
HEICO expects increased net sales at both major groups for the remainder of fiscal 2026
Company continues to forecast strong cash flow from operations for fiscal 2026
HEICO remains focused on acquisitions and organic growth while preserving liquidity

Result Drivers
ORGANIC GROWTH - Co said 14% consolidated organic net sales growth drove results, with strong demand across all product lines in both main segments
ACQUISITIONS - Recent acquisitions contributed to higher net sales and operating income in both Flight Support and Electronic Technologies Groups
MARGIN IMPROVEMENT - Improved gross profit margin, mainly from a more favorable product mix in specialty and aftermarket parts, and SG&A expense efficiencies supported higher operating income

Company press release: ID:nACScjsYSa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$1.41 bln
$1.35 bln (18 Analysts)
Q3 EPS
 
$1.67
 
Q3 Net Income
 
$235.4 mln
 
Q3 EBITDA
 
$415.2 mln
 
Q3 Operating Income
 
$355.2 mln
 
Q3 Operating Margin
 
25.1%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for HEICO Corporation is $397.00, about 12.6% above its August 24 closing price of $352.67
The stock recently traded at 52 times the next 12-month earnings vs. a P/E of 45 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)