HEICO Q2 sales beat on organic growth, acquisitions

Heico

27/05/2026 21:31

Overview
Aerospace and electronics components maker's fiscal Q2 sales rose 25%, beating analyst expectations
Adjusted EPS for fiscal Q2 rose to $1.66
Company cites 18% organic net sales growth and recent acquisitions as key drivers

Outlook
HEICO expects increased net sales at both business groups for the remainder of fiscal 2026
Company continues to forecast strong cash flow from operations for fiscal 2026
HEICO intends to continue evaluating acquisition opportunities consistent with strategic objectives

Result Drivers
ORGANIC GROWTH - Co said 18% consolidated organic net sales growth drove results, reflecting increased demand across product lines
ACQUISITIONS - Recent acquisitions in both the Flight Support and Electronic Technologies Groups contributed to higher net sales and operating income
MARGIN IMPROVEMENT - Improved gross profit margin and SG&A expense efficiencies boosted operating margins, especially in aftermarket replacement parts and aerospace products

Company press release: ID:nACS9ldYBa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$1.38 bln
$1.25 bln (16 Analysts)
Q2 EPS
 
$1.66
 
Q2 Net Income
 
$233.80 mln
 
Q2 EBITDA
 
$408.30 mln
 
Q2 Operating Income
 
$350.40 mln
 
Q2 Operating Margin
 
25.50%
 

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 Corp is $363.00, about 17.5% above its May 26 closing price of $308.86
The stock recently traded at 51 times the next 12-month earnings vs. a P/E of 58 three months ago

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(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.)