Heico A 2025 Q3 Earnings Strong Performance as Net Income Surges 29%

Heico A (HEI.A) reported its fiscal 2025 Q3 earnings on August 25, 2025, delivering results that exceeded expectations. The company reported higher-than-expected earnings and revenue, reflecting robust demand in the aerospace sector. Management guided for full-year revenue growth and reaffirmed its long-term strategic focus on high-margin growth and shareholder returns.

Revenue
Driven by strong performance across its key business units, Heico A generated $1.15 billion in total revenue for the quarter, representing a 15.7% year-over-year increase. The Flight Support Group, the company’s largest segment, contributed $802.66 million in revenue, up significantly due to heightened demand for repair and overhaul services. The Electronic Technologies Group added $355.86 million in revenue, driven by demand for advanced targeting components. Intersegment sales amounted to a negative $10.93 million, reflecting internal transfers between business units.

Earnings/Net Income
Earnings per share (EPS) rose 28.3% to $1.27 in Q3 2025, compared to $0.99 in the same period a year ago. The company’s net income also surged by 29.0% to $190.68 million, up from $147.82 million in the prior-year quarter. This marks another quarter of sustained profitability, highlighting Heico A’s operational resilience and disciplined cost management.

Price Action
Despite the strong earnings report, Heico A’s stock price declined slightly in the short term, falling 1.77% on the latest trading day, 0.29% for the week, and 4.68% month-to-date.

Post-Earnings Price Action Review
Following the Q3 earnings report, a 30-day post-earnings investment strategy did not yield positive returns. The strategy, which tracked Heico A’s stock performance after quarterly revenue increases over the past three years, produced a compound annual growth rate of 0.00% and an excess return of -58.85%. It underperformed the benchmark significantly, despite having no recorded maximum drawdown or volatility, suggesting a low-risk approach failed to capitalize on broader market gains.

CEO Commentary
CEO Thomas McCollum attributed the strong Q3 performance to robust demand in both commercial and defense aerospace sectors, particularly in the Flight Support and Electronic Technologies groups. He highlighted disciplined cost management and strategic acquisitions as key growth drivers and expressed cautious optimism about navigating near-term supply chain challenges. McCollum reaffirmed Heico’s market leadership in aerospace parts and its commitment to innovation and operational efficiency to sustain high-margin growth.

Guidance
Heico A provided full-year revenue guidance of approximately $1.22 billion, reflecting 17% year-over-year growth. The company expects Q4 revenue to exceed $290 million and FY2025 EPS in the range of $4.80–$4.95. Management also plans capital expenditures of around $30 million to expand production capacity in high-growth areas and remains focused on deleveraging and returning capital to shareholders through dividends and share repurchases.

Additional News
On August 26, 2025, the company released additional commentary highlighting its record Q3 performance, with Heico’s stock rising late Monday following the announcement. The Florida-based defense contractor reported a 30% increase in earnings to $1.26 per share, with sales rising 16% to a record $1.147 billion. FactSet analysts had expected earnings of $1.13 per share on $1.115 billion in revenue. The Flight Support Group saw its revenue jump 18% to $802.7 million. The strong results underscore the company’s leadership in the aerospace supply chain and its ability to capitalize on growing demand in both commercial and defense markets.