01—Abstract
Summary
Summary of the 10-Q filed February 27, 2026. Cited figures are marked; the original filing is the authoritative source.
HEICO Corporation's first quarter of fiscal 2026 (three months ended January 31, 2026) showed net sales of $1,178.6 milliona, up from $1,030.2 million in the first quarter of fiscal 2025, and net income attributable to HEICO of $190.2 million, or $1.35 per diluted share, compared with $168.0 million, or $1.20 per diluted share, a year earlier.
Operating income rose to $259.9 millionb from $226.8 million, with the Flight Support Group contributing $200.7 million and the Electronic Technologies Group contributing $73.2 million. Consolidated gross profit margin declined to 38.6% from 39.4%, principally due to lower gross margin in the Electronic Technologies Group, while SG&A as a percentage of net sales improved to 16.6% from 17.4%. Net cash provided by operating activities was $178.6 million, down from $203.0 million, mainly due to a $120.3 million increase in net working capital, including a $107.2 million decrease in accrued expenses and other current liabilities.
Investing activities used $447.0 millionc, primarily for the acquisition of Rockmart Fuel Containment, LLC (formerly part of Axillon Aerospace's Fuel Containment Business) for $441.4 million. Total debt rose to $2,507.7 million at January 31, 2026, driven by $443.0 million of revolving credit facility borrowings, and the filing reports a total debt to shareholders' equity ratio of 54.7%.
Subsequent to quarter end, in February 2026 the company acquired 100% of EthosEnergy Accessories & Components (Ethos) for a mix of cash and 95,483 shares of Class A Common Stock, and agreed to acquire 80% of another company, with closing expected in the second quarter of fiscal 2026. The company reported remaining performance obligations (backlog) of $2,453.0 milliond and a fiscal 2026 capital expenditure outlook of approximately $80 to $90 million.
02—Key points
Key Highlights
- Net sales rose 14% to $1,178.6 million, with the Flight Support Group up 15% to $820.0 million and the Electronic Technologies Group up 12% to $370.7 million.
- Net income attributable to HEICO reached a record $190.2 million, or $1.35 per diluted share, versus $168.0 million, or $1.20 per diluted share, in the prior-year quarter.
- Operating income increased 15% to $259.9 million; the Flight Support Group's operating income rose to $200.7 million, while the Electronic Technologies Group's declined to $73.2 million.
- Consolidated gross profit margin fell to 38.6% from 39.4%, principally reflecting lower gross profit margin in the Electronic Technologies Group.
- Operating cash flow was $178.6 million, down from $203.0 million, largely due to a $120.3 million increase in net working capital.
- Long-term debt increased to $2,504.3 million (net of current maturities) as the company borrowed $443.0 million under its revolving credit facility to fund the Rockmart acquisition ($441.4 million acquisition spending).
- Backlog (remaining performance obligations) totaled $2,453.0 million as of January 31, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Heico kept $0.16.
- Revenue$1.18B100.0%
- Cost of revenue−$723.6M61.4%
- Gross profit$455.0M38.6%
- Operating costs−$195.1M16.6%
- Operating income$259.9M22.1%
- Interest, other & tax−$69.7M5.9%
- Net income$190.2M16.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed February 27, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.18B$1.03B | +14.4% |
| Cost of Revenue | $723.62M$624.56M | +15.9% |
| Gross Profit | $454.96M$405.66M | +12.2% |
| R&D Expenses | $31.94M$27.61M | +15.7% |
| SG&A Expenses | $195.06M$178.86M | +9.1% |
| Operating Expenses | $918.68M$803.42M | +14.3% |
| Operating Income | $259.90M$226.81M | +14.6% |
| Interest Expense | $29.49M$32.46M | −9.2% |
| Net Income | $190.19M$167.96M | +13.2% |
| EPS (Basic) | $1.36$1.21 | +12.4% |
| EPS (Diluted) | $1.35$1.20 | +12.5% |
| Shares Outstanding (Basic) | 139.37M138.84M | +0.4% |
| Shares Outstanding (Diluted) | 141.03M140.48M | +0.4% |
05—Questions
Frequently Asked Questions
How much did HEICO's revenue and earnings grow in the first quarter of fiscal 2026?
Net sales increased 14% to $1,178.6 million from $1,030.2 million. Net income attributable to HEICO increased 13% to a record $190.2 million, or $1.35 per diluted share, from $168.0 million, or $1.20 per diluted share.
What drove the decline in the Electronic Technologies Group's profitability?
The filing states that the ETG's operating income decreased 4% to $73.2 million, principally reflecting lower gross profit margin, which fell to a level the filing attributes to less favorable defense product mix and a decrease in space product net sales. ETG operating income as a percentage of net sales declined to 19.8% from 23.1%.
What acquisitions did HEICO complete or announce?
In January 2026, HEICO acquired Rockmart Fuel Containment, LLC (formerly part of Axillon Aerospace's Fuel Containment Business) for $441.4 million in cash, funded by its revolving credit facility. In February 2026, it acquired EthosEnergy Accessories & Components for a mix of cash and 95,483 Class A shares, and entered into an agreement to acquire 80% of another company, with closing expected in the second quarter of fiscal 2026. The filing describes these as not material to the consolidated financial statements.
How is HEICO's debt position and liquidity?
Total debt was $2,507.7 million as of January 31, 2026, up from $2,167.9 million at October 31, 2025, mainly from revolving credit facility borrowings that rose to $1,300.0 million. The company stated it was in compliance with all covenants, reported a total debt to shareholders' equity ratio of 54.7%, and said operating cash flow and revolver availability should fund requirements for at least the next twelve months.
What is the company's outlook for the remainder of fiscal 2026?
Management expects continued sales momentum across both segments, supported by organic demand and recent acquisitions, and will continue pursuing selective acquisitions. The company anticipates fiscal 2026 capital expenditures of approximately $80 to $90 million and expects to recognize $1,348.7 million of its remaining performance obligations during the rest of fiscal 2026.
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