HEICO (HEI) investor relations material

Executive summary

• Achieved record consolidated net income, operating income, and net sales in Q2 FY2026, up 49%, 41%, and 25% year-over-year, respectively, with both segments setting all-time quarterly records and robust organic growth across all product lines.

• Six-month net income rose 31% to $424.0M, and net sales increased 20% to $2.55B compared to the same period last year, driven by strong demand and recent acquisitions.

• Both Electronic Technologies Group (ETG) and Flight Support Group (FSG) achieved record sales and operating income, supported by favorable product mix and SG&A efficiencies.

• Four acquisitions completed in FY2026, including Sherwood Avionics and Southwest Antennas, with total consideration of $859.5M.

• Strong demand in commercial aviation, defense, and space markets, with customers seeking cost-effective alternatives amid rising fuel prices and global conflicts.

Financial highlights

• Q2 FY2026 net income rose 49% to $233.8M ($1.66/share); six-month net income up 31% to $424.0M ($3.01/share).

• Q2 operating income increased 41% to $350.4M; six-month operating income up 29% to $610.3M.

• Q2 net sales grew 25% to $1.38B; six-month net sales up 20% to $2.55B.

• Q2 EBITDA increased 37% to $408.3M; six-month EBITDA up 26% to $720.3M.

• Cash flow from operations up 43% to $292M in Q2 and 15% to $470.6M for six months.

Outlook and guidance

• Expect continued sales growth in both FSG and ETG, supported by strong demand and recent acquisitions, with GAAP operating margins for ETG projected between 22%-24% and FSG between 24%-26% for FY2026.

• Capital expenditures for FY2026 estimated at $85–95M.

• Acquisition pipeline remains healthy, with focus on high-quality, accretive targets and ongoing evaluation of opportunities.