HEICO's Q3 Earnings Surpass Estimates, Sales Increase Y/Y

Shares of HEICO Corporation HEI gained 8.8% to reach $332.16 on Aug. 26, following its third-quarter fiscal 2025 earnings release.

The company reported third-quarter fiscal 2025 earnings per share (EPS) of $1.26, which beat the Zacks Consensus Estimate of $1.12 by 12.5%. The bottom line also improved 29.9% from the prior-year quarter’s 97 cents.

The year-over-year increase in the bottom line can be attributed to robust sales growth and higher operating income, as well as lower interest expenses from the prior-year quarter.

HEI’s Total Sales

The company’s net sales increased 15.7% year over year to $1.15 billion. The figure also beat the Zacks Consensus Estimate of $1.11 billion by 3.1%.

The year-over-year upside was driven by solid sales growth delivered by both its segments.

HEICO’s Operational Update

HEICO’s cost of sales jumped 14.5% year over year to $690.4 million.

The company’s selling, general and administrative (SG&A) expenses rose 11.2% to $192.1 million.

Interest expenses declined 13.8% to $31.7 million from $36.8 million in the prior-year quarter.

HEI’s Segmental Performance

Flight Support Group: Net sales from this segment surged 17.8% year over year to $802.7 million. This rise was driven by strong organic sales growth of 13% and the positive impact of its fiscal 2025 and 2024 acquisitions.

The segment’s operating income soared 29.1% year over year to $198.3 million. This increase was due to solid net sales growth and an improved gross profit margin.

Electronic Technologies Group: The segment’s net sales surged 10.5% to $355.9 million. This rise was driven by strong organic sales growth of 7% and the positive impact of its fiscal 2025 and 2024 acquisitions.

The segment’s operating income increased 6.9% year over year to $81 million. This rise was due to solid net sales growth and SG&A expense efficiencies realized from the net sales growth.

HEI’s Financial Details

As of July 31, 2025, HEI’s cash and cash equivalents totaled $261.9 million compared with $162.1 million as of Oct. 31, 2024.

Cash flow from operating activities was $638.9 million during the first nine months of fiscal 2025, reflecting a 36.9% rise from the prior-year period’s level.

HEICO reported a long-term debt (net of current maturities) of $2.44 billion as of July 31, 2025, up from $2.23 billion as of Oct. 31, 2024.

HEICO’s Zacks Rank

HEICO currently carries a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Teledyne Technologies Inc. TDY reported second-quarter 2025 adjusted earnings of $5.20 per share, which surpassed the Zacks Consensus Estimate of $5.02 by 3.6%. The bottom line also improved 13.5% from $4.58 recorded in the year-ago quarter.

Total sales were $1.51 billion, which beat the Zacks Consensus Estimate of $1.47 billion by 2.8%. The top line also surged 10.2% from $1.37 billion reported in the year-ago quarter.

Lockheed Martin Corporation LMT reported second-quarter 2025 adjusted earnings of $7.29 per share, which topped the Zacks Consensus Estimate of $6.49 by 12.3%. The bottom line increased 2.5% from the year-ago quarter's reported figure of $7.11.

Net sales were $18.16 billion, which missed the Zacks Consensus Estimate of $18.56 billion by 2.2%. However, the top line inched up 0.2% from $18.12 billion reported in the year-ago quarter.

Textron Inc. TXT reported second-quarter 2025 adjusted earnings of $1.55 per share, which outperformed the Zacks Consensus Estimate of $1.45 by 6.9%. The bottom line also rose 0.6% from $1.54 in the year-ago quarter.

The company reported total revenues of $3.72 billion, which beat the Zacks Consensus Estimate of $3.63 billion by 2.4%. Moreover, revenues increased 5.4% from the year-ago quarter’s level of $3.53 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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