HEICO Q1 Earnings Surpass Estimates, Sales Increase Y/Y

HEICO Corporation HEI reported first-quarter fiscal 2026 earnings per share (EPS) of $1.35, which beat the Zacks Consensus Estimate of $1.26 by 7.1%. The bottom line also improved 12.5% from the prior-year quarter’s $1.20.

The year-over-year increase in the bottom line can be attributed to robust sales growth, higher operating income and lower interest expense compared with the prior-year quarter.

HEI’s Total Sales

The company’s net sales increased 14.4% year over year to $1.18 billion. The figure also beat the Zacks Consensus Estimate of $1.15 billion by 2.5%.

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 15.9% year over year to $723.6 million.

The company’s selling, general and administrative (SG&A) expenses rose 9.1% to $195.1 million.

Interest expenses declined 9.2% to $29.5 million from $32.5 million in the prior-year quarter.

HEI’s Segmental Performance in Q1

Flight Support Group: Net sales from this segment rose 15% year over year to $820 million. This rise was driven by strong organic growth of 12% and the impact of its fiscal 2025 acquisitions.

The segment’s operating income climbed 20.8% year over year to $200.7 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 12.2% to $370.7 million. This rise was driven by strong organic growth of 6% and the impact from its fiscal 2025 and 2026 acquisitions.

The segment’s operating income decreased 4.2% year over year to $73.2 million. This decline was due to a decrease in gross profit margin.

HEI’s Financial Details

As of Jan. 31, 2026, HEI’s cash and cash equivalents totaled $261 million compared with $217.8 million as of Oct. 31, 2025.

Cash flow provided by operating activities was $178.6 million during the first quarter of fiscal 2026, reflecting a decline of 12% from the prior-year period’s level.

HEICO reported a long-term debt (net of current maturities) of $2.5 billion as of Jan. 31, 2026, up from $2.16 billion as of Oct. 31, 2025.

HEICO’s Zacks Rank

HEICO currently carries a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Teledyne Technologies Inc. TDY reported fourth-quarter 2025 adjusted earnings of $6.30 per share, which surpassed the Zacks Consensus Estimate of $5.83 by 8.1%. The bottom line also improved 14.1% from $5.52 recorded in the year-ago quarter.

Total sales were $1.61 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 2.7%. The top line also surged 7.3% from $1.50 billion reported in the year-ago quarter. 

TransDigm Group Incorporated TDG reported first-quarter fiscal 2026 adjusted earnings of $8.23 per share, which topped the Zacks Consensus Estimate of $8.02 by 2.6%. The bottom line also improved 5% from the prior-year quarter’s figure of $7.83.

Sales amounted to $2.29 billion, up 14% from $2.01 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.25 billion by 1.4%.

Kratos Defense & Security Solutions, Inc. KTOS reported fourth-quarter 2025 adjusted earnings of 18 cents per share, which beat the Zacks Consensus Estimate of 14 cents by 28.6%. The bottom line also increased 38.5% from the year-ago quarter’s 13 cents. 

Total revenues were $345.1 million, which outpaced the Zacks Consensus Estimate of $328 million by 5.1%. The figure also rose 21.9% from $283.1 million recorded in the year-ago quarter.

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

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