HEICO Corporation reported record net income and strong increases in operating income and net sales for Q1 FY2026, driven by double-digit consolidated organic net sales growth and contributions from recent acquisitions. The company forecasts continued sales momentum and remains focused on strategic acquisitions while preserving financial strength.
Net income increased 13% to a record $190.2 million, or $1.35 per diluted share.
positiveNet sales increased 14% to $1,178.6 million, up from $1,030.2 million in the prior year.
positiveOperating income increased 15% to $259.9 million, up from $226.8 million in the prior year.
positiveConsolidated operating margin improved to 22.1% from 22.0% in the prior year.
positiveEBITDA increased 14% to $312.0 million.
positiveFlight Support Group net sales increased 15% to $820.0 million, driven by 12% organic growth.
positiveFlight Support Group operating income increased 21% to $200.7 million, with operating margin improving to 24.5%.
positiveElectronic Technologies Group net sales increased 12% to $370.7 million, driven by 6% organic growth.
positiveOperating income for the Electronic Technologies Group decreased to $73.2 million from $76.5 million in the prior year, primarily due to a less favorable product mix and decreased demand for space products.
attentionOperating margin for the Electronic Technologies Group decreased to 19.8% from 23.1% in the prior year.
negativeCash flow provided by operating activities decreased to $178.6 million from $203.0 million in the prior year, reflecting a significant distribution under the HEICO Leadership Compensation Plan and higher performance-based compensation payments.
attentionInventories increased by $43.1 million (from $1,295.3 million to $1,338.4 million) compared to the prior quarter.
attentionTotal debt increased to $2,507.7 million from $2,167.9 million in the prior quarter, leading to an increase in the total debt to net income ratio to 3.52x from 3.14x.
attentionNet debt increased to $2,246.7 million from $1,950.2 million in the prior quarter, leading to an increase in the net debt to EBITDA ratio to 1.79x from 1.60x.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Flight Support Group | N/A | — | — | — |
Electronic Technologies Group | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Proud to report record quarterly net income, as well as increased operating income and net sales, principally driven by strong double-digit consolidated organic net sales growth, as well as the contributions from our fiscal 2025 and 2026 acquisitions.
The strong organic growth reflects increased demand across all of the Flight Support Group’s product lines and for the Electronic Technologies Group's other electronics, aerospace and defense products.
Cash flow provided by operating activities remained strong, totaling $178.6 million in the first quarter of fiscal 2026, as compared to $203.0 million in the first quarter of fiscal 2025.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.