Heico 2025 Q3 Earnings Record Net Income of $190.68M, Up 29%

Heico (HEI) reported its fiscal 2025 Q3 earnings on August 25, 2025, delivering results that exceeded expectations. The company beat estimates with a 28.3% year-over-year increase in EPS to $1.27 and net income rising 29% to $190.68 million. Revenue also outperformed, growing 15.7% to $1.15 billion. The company reaffirmed its positive trajectory with a strategic focus on organic growth and disciplined financial management.

Revenue
Heico reported total revenue of $1.15 billion in the third quarter, a 15.7% year-over-year increase driven by strong performance across its core segments. The Flight Support Group led the way with revenue of $802.66 million, reflecting robust demand in the aerospace aftermarket and 13% organic sales growth. The Electronic Technologies Group added $355.86 million in revenue, contributing to the company’s diversified growth. Intersegment sales were recorded at a negative $10.93 million. Collectively, these segments underscore the company’s ability to maintain momentum in both domestic and international markets.

Earnings/Net Income
Heico’s net income surged 29.0% year-over-year to $190.68 million, with earnings per share rising 28.3% to $1.27 in the third quarter. This marks a continuation of the company’s long-standing profitability, having remained profitable for over 20 years in the same period. The earnings reflect strong operational performance and effective cost management, especially within the Flight Support Group, which saw a 29% increase in operating income. The earnings performance is a positive indicator of the company’s financial resilience and management effectiveness.

Price Action
Heico’s stock price has experienced a decline in recent periods, with a 2.45% drop on the latest trading day, a 0.92% fall over the past full week, and a 4.70% decrease month-to-date. While the earnings report generated positive sentiment, the stock has not yet reflected this in short-term price movements, indicating mixed investor sentiment or broader market pressures.

Post Earnings Price Action Review
A strategy of buying Heico shares following a revenue increase quarter-over-quarter and holding for 30 days has underperformed over the past three years. This approach has resulted in a compound annual growth rate (CAGR) of 0.00% and an excess return of -57.31%, significantly lagging behind the benchmark. The strategy showed no volatility and no maximum drawdown, suggesting a risk-free but unprofitable investment approach. This indicates that post-earnings momentum may not be a reliable indicator for short-term gains in this stock.

CEO Commentary
Laurans A. Mendelson, Executive Chairman, and Co-CEOs Eric A. Mendelson and Victor H. Mendelson highlighted the company’s record quarterly net income, operating income, and net sales. They credited the strong performance to double-digit organic sales growth in both the Flight Support Group and the Electronic Technologies Group. The Flight Support Group’s 13% organic net sales growth was particularly emphasized, alongside a 29% increase in operating income. The leadership expressed confidence in achieving continued net sales growth through organic demand, recent acquisitions, and future opportunities. They also emphasized a disciplined financial strategy aimed at maximizing shareholder value while maintaining a strong balance sheet.

Guidance
The company expects strong cash flow from operations for fiscal 2025 and anticipates net sales growth in both the Flight Support Group and the Electronic Technologies Group. This growth will be driven by continued organic demand and recent acquisitions. The leadership is focused on accelerating growth through strategic acquisitions while maintaining a balanced financial position and preserving flexibility for future opportunities.

Additional News
On August 26, 2025, just one day after the earnings report, Heico’s stock rose as the company exceeded Q3 estimates with record results. Florida-based Heico reported a 30% increase in earnings to $1.26 per share and sales of $1.147 billion, a 16% year-over-year increase. These figures exceeded analyst expectations of $1.13 per share on $1.115 billion in revenue. The Flight Support Group’s revenue surged 18% to $802.7 million, highlighting the strength of the aerospace aftermarket. This performance reaffirmed investor confidence in the company’s strategic direction and operational strength in the defense and aerospace sectors.