01—Abstract
Summary
Summary of the 10-Q filed May 29, 2026. Cited figures are marked; the original filing is the authoritative source.
HEICO Corporation's second quarter of fiscal 2026 (ended April 30, 2026) showed strong growth.
Net sales rose to a record $2,554.3 milliona for the six months, up from $2,128.0 million, and to $1,375.7 million for the quarter, up from $1,097.8 million. Operating income reached a record $610.3 million for the six months (23.9% of net sales) versus $475.0 million a year earlier, and net income attributable to HEICO was a record $424.0 million, or $3.01 per diluted share, compared with $324.7 million, or $2.31 per diluted share. The Flight Support Group and Electronic Technologies Group both posted record net sales and operating income, and the company cited organic growth of 16% for the FSG and 12% for the ETG in the six-month period.
HEICO made several acquisitions during the period, including Rockmart Fuel Containment, EthosEnergy Accessories and Components, Sherwood Avionics and Accessories (80%), and Southwest Antennas (90%). Net cash paid for fiscal 2026 acquisitions was $822.8 millionb, funded largely by revolving credit facility borrowings. As a result, total assets rose to $9.59 billion from $8.50 billion at October 31, 2025, goodwill increased to $4.20 billion, and long-term debt rose to $2.58 billion.
Cash flow from operations was $470.6 millionc for the six months, up from $407.7 million. The company stated its total debt to shareholders' equity ratio was 53.3% and that it was in compliance with all covenants. Backlog, which the company treats as its remaining performance obligations, stood at $2,622.6 million at April 30, 2026, with $1,177.0 million expected to be recognized over the rest of fiscal 2026.
A subsequent event disclosed an agreement to acquire 80% of a maker of track systems and armored steel components for military fighting vehicles, with closing expected in the third quarter of fiscal 2026. Management expects continued sales growth at both segments and estimates fiscal 2026 capital expenditures of $85 to $95 milliond.
02—Key points
Key Highlights
- Record six-month net sales of $2,554.3 million, up from $2,128.0 million; second-quarter net sales of $1,375.7 million, up from $1,097.8 million.
- Record six-month operating income of $610.3 million (23.9% of net sales) versus $475.0 million (22.3%) in the prior-year period.
- Net income attributable to HEICO of $424.0 million, or $3.01 per diluted share, for the six months, compared with $324.7 million, or $2.31 per diluted share.
- Four fiscal 2026 acquisitions with net cash paid of $822.8 million; goodwill rose to $4,197.4 million from $3,661.6 million at October 31, 2025.
- Revolving credit facility borrowings increased to $1,380.0 million from $960.0 million, and total long-term debt reached $2,583.9 million (noncurrent).
- Backlog (remaining performance obligations) of $2,622.6 million at April 30, 2026, of which $1,177.0 million is expected to be recognized in the remainder of fiscal 2026.
- Subsequent event: agreement to acquire 80% of a track systems and armored steel components maker for military fighting vehicles, expected to close in the third quarter of fiscal 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Heico kept $0.17.
- Revenue$1.38B100.0%
- Cost of revenue−$806.2M58.6%
- Gross profit$569.5M41.4%
- Operating costs−$219.1M15.9%
- Operating income$350.4M25.5%
- Interest, other & tax−$116.6M8.5%
- Net income$233.8M17.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed May 29, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.38B$1.10B | +25.3% |
| Cost of Revenue | $806.19M$660.02M | +22.1% |
| Gross Profit | $569.52M$437.80M | +30.1% |
| R&D Expenses | $36.42M$28.74M | +26.7% |
| SG&A Expenses | $219.09M$189.65M | +15.5% |
| Operating Expenses | $1.03B$849.67M | +20.7% |
| Operating Income | $350.44M$248.15M | +41.2% |
| Interest Expense | $34.16M$32.87M | +3.9% |
| Net Income | $233.80M$156.79M | +49.1% |
| EPS (Basic) | $1.68$1.13 | +48.7% |
| EPS (Diluted) | $1.66$1.12 | +48.2% |
| Shares Outstanding (Basic) | 139.56M139.00M | +0.4% |
| Shares Outstanding (Diluted) | 141.07M140.60M | +0.3% |
05—Questions
Frequently Asked Questions
How did HEICO's sales and profitability perform in the second quarter of fiscal 2026?
Second-quarter net sales rose to a record $1,375.7 million from $1,097.8 million, and operating income rose to a record $350.4 million from $248.2 million. Net income attributable to HEICO was $233.8 million, or $1.66 per diluted share, versus $156.8 million, or $1.12 per diluted share, a year earlier. The company attributed the increase principally to higher consolidated operating income.
What acquisitions did HEICO complete during the period, and how were they funded?
HEICO acquired Rockmart Fuel Containment (formerly Axillon Aerospace's Fuel Containment Business) in January 2026, EthosEnergy Accessories and Components in February 2026, and 80% of Sherwood Avionics and Accessories and 90% of Southwest Antennas in April 2026. Total net cash paid for fiscal 2026 acquisitions was $822.8 million, funded mainly from revolving credit facility proceeds, along with 95,483 and 86,474 HEICO Class A shares issued for Ethos and Sherwood, respectively. The company stated that none of these acquisitions were material to its consolidated financial statements.
How did HEICO's debt and balance sheet change?
Total debt rose to $2,587.3 million at April 30, 2026, from $2,167.9 million at October 31, 2025, mainly due to higher revolving credit facility borrowings of $1,380.0 million. The $1,200 million of senior unsecured notes (2028 and 2033) were unchanged in principal. The company reported a total debt to shareholders' equity ratio of 53.3% and said it was in compliance with all covenants. Total shareholders' equity increased to $4,854.9 million.
What is HEICO's backlog and outlook?
Remaining performance obligations from firm contracts totaled $2,622.6 million as of April 30, 2026, with $1,177.0 million expected to be recognized during the remainder of fiscal 2026 and $1,445.6 million thereafter, mostly in fiscal 2027. Management expects increased net sales at both segments to continue, supported by underlying demand and recent acquisitions, and estimates fiscal 2026 capital expenditures of approximately $85 to $95 million.
Are there any pending transactions or significant obligations to be aware of?
HEICO agreed to acquire 80% of a company that designs and manufactures track systems, mobility solutions, and armored steel components for military fighting vehicles, with closing expected in the third quarter of fiscal 2026 and funding from its revolving credit facility. The company also has redeemable noncontrolling interests of $536.7 million, contingent consideration liabilities of $53.4 million, and standby letters of credit and guarantees totaling $15.3 million.
06—Continue