HEICO Q4 Earnings Surpass Estimates, Sales Increase Y/Y

HEICO Corporation HEI reported fourth-quarter fiscal 2025 earnings per share (EPS) of $1.33, which beat the Zacks Consensus Estimate of $1.20 by 10.8%. The bottom line also improved 34.3% from the prior-year quarter’s 99 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.

For fiscal 2025, the company reported adjusted earnings of $4.90 per share, which indicates growth of 33.5% from $3.67 at the end of fiscal 2024.

HEI’s Total Sales

The company’s net sales increased 19.3% year over year to $1.21 billion. The figure also beat the Zacks Consensus Estimate of $1.15 billion by 5%.

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

For fiscal 2025, HEICO reported net sales of $4.49 billion, which indicates growth of 16.3% from $3.86 billion at the end of fiscal 2024.

HEICO’s Operational Update

HEICO’s cost of sales jumped 16.7% year over year to $723.6 million.

The company’s selling, general and administrative (SG&A) expenses rose 18% to $206.8 million.

Interest expenses declined 7.2% to $32.9 million from $35.4 million in the prior-year quarter.

HEI’s Segmental Performance in Q4

Flight Support Group: Net sales from this segment rose 20.6% year over year to $834.4 million. This rise was driven by strong organic growth of 16% and the impact of fiscal 2025 and 2024 acquisitions.

The segment’s operating income climbed 30.1% year over year to $201 million. This increase was backed by solid net sales growth, an improved gross profit margin and SG&A expense efficiencies realized from the net sales growth.

Electronic Technologies Group: The segment’s net sales jumped 14.4% to $384.8 million. This rise was driven by strong organic growth of 7% and the impact of its fiscal 2025 and 2024 acquisitions.

The segment’s operating income increased 9.5% year over year to $89.6 million. This rise was driven by net sales growth and an improved gross profit margin.

HEI’s Financial Details

As of Oct. 31, 2025, HEI’s cash and cash equivalents totaled $217.8 million compared with $162.1 million as of Oct. 31, 2024.

Cash flow from operating activities was $934.3 million during fiscal 2025, reflecting a 39% rise from the prior-year period’s level.

HEICO reported a long-term debt (net of current maturities) of $2.16 billion as of Oct. 31, 2025, down 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 third-quarter 2025 adjusted earnings of $5.57 per share, which surpassed the Zacks Consensus Estimate of $5.50 by 1.3%. The bottom line also improved 7.8% from $5.10 recorded in the year-ago quarter.

Total sales were $1.54 billion, which beat the Zacks Consensus Estimate of $1.52 billion by 1%. The top line also rose 6.7% from $1.44 billion reported in the year-ago quarter.

Lockheed Martin Corporation LMT reported third-quarter 2025 adjusted earnings of $6.95 per share, which beat the Zacks Consensus Estimate of $6.33 by 9.8%. The bottom line increased 2.2% from the year-ago quarter's reported figure of $6.80.

Net sales were $18.61 billion, which beat the Zacks Consensus Estimate of $18.56 billion by 0.3%. The top line also inched up 8.8% from $17.10 billion reported in the year-ago quarter.

Textron Inc. TXT reported third-quarter 2025 adjusted earnings of $1.55 per share, which beat the Zacks Consensus Estimate of $1.47 by 5.4%. The bottom line also rose 10.7% from $1.40 in the year-ago quarter.

The company reported total revenues of $3.6 billion, which missed the Zacks Consensus Estimate of $3.71 billion by 2.8%. However, revenues increased 4.9% from the year-ago quarter’s level of $3.43 billion.

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

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