TLDR
- HEICO shares rose 7.36% to $327.80 after Q3 2025 earnings beat.
- Adjusted EPS was $1.26, up 30% YoY and above expectations of $1.12.
- Revenue hit a record $1.15B, driven by Flight Support and Electronics segments.
- Operating income climbed 22% with stronger margins at 23.1%.
- Management is confident in growth through organic demand and acquisitions.
On August 26, 2025, HEICO Corporation (NYSE: HEI) reported strong third-quarter results that sent its shares up 7.36% to $327.80 in midday trading.
The aerospace and defense supplier posted adjusted earnings of $1.26 per share, topping consensus estimates of $1.12, and up sharply from $0.97 a year ago. Net income rose 30% year-over-year to $177.3 million, setting a new record for the company.
Revenue Growth Across Segments
Quarterly revenue climbed 16% to $1.15 billion, exceeding forecasts of $1.11 billion. Flight Support Group revenue advanced 18% to $802.7 million, while the Electronic Technologies Group grew 10% to $355.9 million. Both divisions reported strong organic growth as demand for commercial aerospace parts and electronic systems continued to expand. The company highlighted twenty consecutive quarters of sequential Flight Support revenue growth, reflecting sustained demand across military and commercial platforms.
Expanding Margins and Operating Income
HEICO also delivered a 22% increase in operating income, reaching $265 million compared with $216.4 million in the same quarter last year. Operating margin improved to 23.1%, up from 21.8% in 2024, as the company benefited from scale and efficiency gains. EBITDA rose 21% to $316.4 million. For the first nine months of fiscal 2025, net sales totaled $3.28 billion, up 15% year-over-year, with operating income rising 22% to $740 million.
Strong Cash Flow and Balance Sheet
Cash flow from operations improved 8% to $231.2 million for the quarter, while leverage ratios declined. Net debt to EBITDA dropped to 1.90x, reflecting disciplined balance sheet management. The company emphasized its ability to maintain financial flexibility while investing in growth initiatives.
Management Outlook and Industry Position
Executive Chairman Laurans Mendelson and Co-CEOs Eric and Victor Mendelson expressed confidence in sustaining growth across both operating segments. They pointed to continued organic demand and the potential for future acquisitions to expand the company’s market presence. HEICO’s performance significantly outpaces the S&P 500, with a year-to-date return of 37.4% compared to the benchmark’s 9.6%. Over five years, HEICO has gained more than 200%, reinforcing its position as a strong performer in the aerospace and defense sector.
Key Points
HEICO’s record-setting third-quarter results underscored its strong market momentum, with earnings and revenue comfortably surpassing analyst expectations. Solid segment performance, margin expansion, and prudent financial management contributed to the stock’s sharp rise following the release. With a strong outlook for aerospace demand and a proven track record of growth, HEICO remains well-positioned heading into the remainder of fiscal 2025.
