HEICO (HEI) investor relations material

Executive summary

• Achieved record consolidated net income and net sales in Q3 FY2026, with net income up 33% to $235.4M and net sales up 23% to $1.41B year-over-year; nine-month net income rose 31% to $659.4M and net sales up 21% to $3.97B.

• Strong organic growth across all business segments, with robust demand in defense, aerospace, industrial technology, and electronics, supported by recent acquisitions.

• Continued focus on cash generation, with Q3 operating cash flow up 49% to $345.3M and nine-month cash flow from operations up 28% to $815.9M.

• Optimistic outlook supported by a strong acquisition pipeline, resilient business model, and management's focus on organic growth and liquidity.

Financial highlights

• Net income rose 33% to $235.4M ($1.67 per diluted share) in Q3; nine-month net income up 31% to $659.4M ($4.67 per share).

• Operating income increased 34% to $355.2M in Q3; nine-month operating income up 30% to $965.5M.

• EBITDA for Q3 rose 31% to $415.2M; nine-month EBITDA up 28% to $1.14B.

• Gross profit margin improved to 40.5% from 39.7% year-over-year; operating margin for nine months rose to 24.3% from 22.6%.

• Operating cash flow up 49% to $345.3M in Q3; nine-month cash flow from operations up 28% to $815.9M.

Outlook and guidance

• Expect continued net sales growth in both Flight Support and Electronic Technologies Groups, driven by demand and recent acquisitions.

• Full-year margin guidance remains at 22%-24% GAAP margins (26%-28% EBITA margins).

• Capital allocation will prioritize organic growth, acquisitions, and maintaining liquidity.

• Net cash from operations and available credit expected to cover all cash requirements for at least the next twelve months.