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

Heico (HEI) reported its fiscal 2025 Q3 earnings on Aug 27th, 2025, delivering results that significantly exceeded expectations. The company posted a 15.7% year-over-year revenue increase to $1.15 billion and a 29% surge in net income to $190.68 million. Management did not provide formal guidance for the upcoming period, though it expressed confidence in maintaining the current momentum.

Revenue
Heico’s revenue growth was driven by robust performance across its operating segments. The Flight Support Group accounted for the largest share of revenue at $802.66 million, while the Electronic Technologies Group contributed $355.86 million. Intersegment sales, which were subtracted from the total, amounted to $10.93 million, reflecting the company’s internal operations. Combined, these segments pushed total revenue to $1.15 billion, a 15.7% increase from the prior year.

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. The company has consistently remained profitable for over two decades, highlighting its strong operational resilience and earnings growth.

Price Action
Following the earnings release, HEI shares fell 5.50% in the latest trading day. However, the stock has gained 3.04% over the most recent full week and declined 2.27% month-to-date.

Post Earnings Price Action Review
A strategy of buying HEI shares after a revenue growth quarter and holding for 30 days has shown no return over the past three years. This approach has yielded a compound annual growth rate of 0.00%, with no excess returns or positive drawdowns, suggesting it failed to benefit from broader market trends.

CEO Commentary
Eric A. Mendelson, Co-CEO of Heico, praised the company’s record-breaking Q3 2025 results, highlighting a 30% increase in EPS and 22% growth in operating income. He attributed the success to strong organic growth, strategic acquisitions, and a dedicated workforce. Mendelson emphasized HEICO’s leadership in commercial aviation, defense, and space markets and expressed optimism about future expansion, citing a robust acquisition pipeline and a favorable business environment.

Guidance
While Heico did not issue specific revenue or EPS guidance for the next period, it anticipates continued momentum in both the Flight Support and Electronic Technologies Groups. Management expects to leverage strong cash flow and order backlogs to support further acquisitions and reduce leverage, with a net debt-to-EBITDA ratio now at 1.9x.

Additional News
In the three weeks following the earnings report, Heico finalized the acquisition of Gables Engineering, a move expected to provide strategic value and earnings accretion within a year. The acquisition is aligned with Heico’s long-term growth strategy and expansion in key markets. No major leadership changes or dividend announcements were disclosed during this period.