HEI · HEICO Corporation

HEICO Corporation delivered standout results for the second quarter of fiscal 2026, with net income surging 49% to a record $233.8 million as operating income climbed 41% to $350.4 million on a 25% increase in net sales to $1,375.7 million. The headline driver was 18% consolidated organic net sales growth, supplemented by contributions from recently completed acquisitions. Consolidated operating margin expanded 290 basis points to 25.5%, aided by improved gross profit margins and SG&A expense efficiencies across both operating segments. The Flight Support Group posted record net sales of $929.4 million, up 21%, with 19% organic growth and operating margins rising to 26.2% from 24.1%. The Electronic Technologies Group saw net sales jump 34% to a record $459.5 million, reflecting 17% organic growth and acquisition impacts, while operating margin improved sharply to 26.5% from 22.8%, driven by favorable product mix and cost leverage. EBITDA increased 37% to $408.3 million, underscoring strong cash generation. Operating cash flow rose 43% to $292.0 million in the quarter, supporting ongoing investment. Leverage ratios ticked up—total debt to net income at 3.28x and net debt to EBITDA at 1.74x—reflecting the completion of four acquisitions in the first half of fiscal 2026, all within the Flight Support and Electronic Technologies Groups. Management commentary highlighted strong underlying demand and a positive outlook for the remainder of fiscal 2026, with expectations for increased net sales at both groups supported by organic growth and acquisition contributions. The press release did not provide specific numerical guidance ranges, capital return announcements, or new buyback authorizations. Overall, HEICO's record results and margin expansion signal robust execution and favorable end-market conditions, positioning the company for continued momentum.