Heico reports record second-quarter sales on aerospace demand
Consolidated net sales rose 25% to $1.38 billion for the second quarter of fiscal 2026.
Heico (HEI), the aerospace and electronics components manufacturer, reported record revenue and income for the second quarter of fiscal 2026.
The results reflected a period of aggressive expansion and strong organic demand across both primary business segments. The company completed four acquisitions during the period, which contributed to a rise in leverage.
Consolidated net sales rose 25% year-over-year to $1,375.7 million, compared to $1,097.8 million in the same period last year. Organic net sales growth exceeded 18%. Net income increased 49% to a record $233.8 million, up from $156.8 million in the prior-year quarter.
Profitability improved as the consolidated operating margin expanded to 25.5%, compared to 22.6% in the second quarter of fiscal 2025.
The Flight Support Group saw net sales increase 21% to a record $929.4 million, supported by 19% organic growth. Operating margin for the segment improved to 26.2% from 24.1% a year earlier.
The Electronic Technologies Group reported a 34% increase in net sales to a record $459.5 million, with organic growth of 17%. The segment's operating margin expanded to 26.5%, up from 22.8% in the prior-year period.
Debt levels rose following the company's acquisition activity. The net debt to EBITDA ratio increased to 1.74x as of April 30, 2026, from 1.60x as of October 31, 2025. The total debt to net income ratio also rose to 3.28x from 3.14x over the same period.
To manage its capital structure and fund future acquisitions, Heico closed a $1.2 billion senior notes offering on July 16, 2026. The offering consisted of $550 million in 4.950% notes due 2031 and $650 million in 5.400% notes due 2036, with proceeds intended to pay down revolving credit borrowings.