HEICO (HEI) investor relations material

Executive summary

• Achieved record net income of $190.2 million (up 13% YoY) and diluted EPS of $1.35, with consolidated margin expansion and strong increases in operating income and net sales, driven by organic growth and recent acquisitions in both segments.

• Net sales rose 14% YoY to $1,178.6 million, with operating income up 15% to $259.9 million and consolidated operating margin improving to 22.1%.

• Both Flight Support Group (FSG) and Electronic Technologies Group (ETG) delivered higher sales, with FSG up 15% and ETG up 12% YoY.

• Continued focus on long-term, sustainable cash generation, disciplined capital allocation, and a robust acquisition pipeline.

Financial highlights

• Net income increased 13% YoY to $190.2 million; diluted EPS rose to $1.35 from $1.20.

• Operating income up 15% YoY to $259.9 million; net sales up 14% YoY to $1,178.6 million.

• EBITDA increased 14% YoY to $312.0 million; net debt-to-EBITDA ratio at 1.79x as of Jan 31, 2026.

• Operating cash flow was $178.6 million, impacted by LCP distributions but net cash neutral due to funding structure.

• Regular semiannual cash dividend of $0.12/share paid, marking the 95th consecutive dividend since 1979.

Outlook and guidance

• Management expects continued sales momentum in both segments for the remainder of fiscal 2026, supported by organic demand and recent acquisitions.

• ETG margins expected to improve in the second half of the year, with full-year GAAP margins guided at 22-24%.

• Robust acquisition activity anticipated, with a strong pipeline and focus on accretive, strategic deals.

• Capital expenditures for fiscal 2026 projected at $80–90 million.

• Sufficient liquidity from operations and credit facilities expected to meet cash requirements for at least the next twelve months.