HEICO Eyes Double-Digit Organic Growth through Acquisitions and Market Demand

Heico Corporation targets continued double-digit organic growth through acquisitions and robust market demand. CEO Eric Mendelson stated that record Q3 results reflect double-digit organic growth in core businesses and momentum from disciplined acquisition strategy. He highlighted significant opportunities ahead, supported by robust demand and strategic acquisitions.

Heico Corporation (HEI) reported strong third-quarter (Q3) 2025 results, driven by double-digit organic growth and strategic acquisitions. The company's record performance was highlighted during the earnings call, where Co-CEO Eric A. Mendelson noted that the results reflect "robust double-digit organic growth in our core businesses, further enhanced by the momentum from our disciplined acquisition strategy" [1].

Key financial highlights include a 30% increase in consolidated net income to $177.3 million, or $1.26 per diluted share, and a 16% rise in net sales to $1.15 billion. The Flight Support Group (FSG) and Electronic Technologies Group (ETG) both set new quarterly records, with FSG's net sales rising 18% to $802.7 million and ETG's net sales increasing by 10% to $355.9 million [1].

The company's acquisition strategy was a significant driver of growth. In July 2025, HEICO acquired Gables Engineering, which Mendelson described as "the third largest acquisition in HEICO's history." He anticipates the acquisition will be accretive to earnings within a year [1].

Looking ahead, HEICO is confident in achieving net sales growth across FSG and ETG, driven by continued organic demand and recent acquisitions. The company's focus remains on identifying businesses that complement its existing operations and strengthen its strategic position [1].

The earnings call also addressed supply chain challenges and capacity constraints, with Mendelson noting ongoing shortages and backlogs but expressing confidence in the company's ability to handle future growth [1].

Overall, HEICO delivered another record quarter, reporting robust double-digit organic growth, record profitability, and strong cash flow, underpinned by disciplined acquisitions and rising demand across its key commercial and defense markets.

References:
[1] https://seekingalpha.com/news/4489309-heico-targets-continued-double-digit-organic-growth-through-acquisitions-and-robust-market
[2] https://finance.yahoo.com/news/heico-corporation-fiscal-q3-results-213559887.html