HEICO (HEI) Q4 2025 earnings summary

Executive summary

• Achieved record net income of $188.3M for Q4 2025, up 35% year-over-year, and $690.4M for FY 2025, up 34% year-over-year.

• Record net sales of $1.21B in Q4 2025, up 19% year-over-year, and $4.49B for FY 2025, up 16% year-over-year.

• Operating income reached $279.0M in Q4 2025, up 28% year-over-year, and $1.02B for FY 2025, up 24% year-over-year.

• Both Flight Support Group (FSG) and Electronic Technologies Group (ETG) set all-time quarterly records for net sales and operating income, supported by five acquisitions in FY2025.

• Completed five acquisitions in FY2025, with additional deals expected to close in early 2026.

Financial highlights

• Diluted EPS was $1.33 for Q4 2025 (up from $0.99) and $4.90 for FY 2025 (up from $3.67).

• EBITDA grew 26% to $331.4M in Q4 2025 and 22% to $1.22B for FY 2025; net debt-to-EBITDA improved to 1.6 from 2.06 year-over-year.

• Cash flow from operations increased 44% to $295.3M in Q4 2025 and 39% to $934.3M for FY 2025.

• Declared a semiannual $0.12 per share dividend, marking the 95th consecutive dividend.

• Discrete tax benefit of $27.2M in Q1 2025 increased net income by $26.5M, or $0.19 per share.

Outlook and guidance

• Anticipates continued net sales growth in FY2026 for both FSG and ETG, driven by organic demand and acquisitions.

• Maintains a disciplined approach to acquisitions, targeting only those that are accretive and strategically aligned.

• Multi-year aspirational target remains 15%-20% bottom-line growth, supported by a strong acquisition pipeline and robust cash generation.

• Plans to pursue selective acquisitions to complement organic expansion.