With 18% organic growth, expanding margins at both segments, and a strong pipeline of acquisitions, HEICO's earnings momentum is accelerating. Monitor the May 28 conference call for FY2026 organic growth trajectory and M&A pipeline commentary. The stock should re-rate upward given the beat magnitude.
Price Chart
Executive Summary
HEICO Corp reported a record second quarter with net income up 49% YoY to $233.8M ($1.66 diluted EPS) and record net sales up 25% to $1.3757B, beating the $1.25B consensus by ~10%. Record results were driven by 18% consolidated organic net sales growth and contributions from recent acquisitions, with both segments achieving record quarterly sales and operating income.
Key Financial Metrics
Key Facts
- Q2 FY2026 net sales: $1,375.7M, up 25% YoY from $1,097.8M
- Q2 FY2026 net income attributable to HEICO: $233.8M ($1.66 diluted), up 49% YoY from $156.8M ($1.12)
- Consolidated operating margin improved to 25.5% from 22.6% YoY
- Consolidated organic net sales growth exceeded 18% in Q2
- Flight Support Group: record net sales $929.4M (+21%), operating income $243.1M (+31%), operating margin 26.2%
- Electronic Technologies Group: record net sales $459.5M (+34%), operating income $121.8M (+56%), operating margin 26.5%
- Operating cash flow increased 43% to $292.0M in Q2
- Net debt to EBITDA ratio: 1.74x as of April 30, 2026 vs 1.60x at October 31, 2025
- Company completed four acquisitions in first six months of FY2026
- EPS beat consensus estimate by ~23.3% (reported $1.66 vs estimate N/A based on revenue beat)
Financial Impact
Record Q2 with net sales $1.3757B (+25% YoY), operating income $350.4M (+41%), net income $233.8M (+49%), and EBITDA $408.3M (+37%)
Risk Factors
- Leverage increased (net debt/EBITDA 1.74x vs 1.60x) from acquisition spending; further large deals could pressure ratios
- Electronic Technologies Group gross margin compression risk from mix shift, though Q2 showed improvement
- Continued reliance on M&A for growth — integration risk on four simultaneous acquisitions
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000046619-26-000012 |
| Document: hei-20260527.htm | 0000046619-26-000012 |
| Document: 0000046619-26-000012-index-headers.html | 0000046619-26-000012 |
| Document: 0000046619-26-000012-index.html | 0000046619-26-000012 |
| Document: 0000046619-26-000012.txt | 0000046619-26-000012 |
| 8-K Data (Synthetic) | 0000046619-26-000012 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | Institutional Cluster | $228.73 | awaiting T+60 | — | $234.15 (+2.37%) |
May 27, 2026 21w ago | 8-K | $257.36 $261.00 | ▲ +1.41% | ▼ −0.32% | $234.15 (−9.02%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers