01—Abstract
Summary
Summary of the 10-Q filed August 27, 2026. Cited figures are marked; the original filing is the authoritative source.
HEICO Corporation's Form 10-Q for the third quarter ended July 31, 2026 shows strong growth.
Net sales for the nine months rose to a record $3,967.3 milliona from $3,275.6 million, and third-quarter net sales reached a record $1,413.1 million from $1,147.6 million. Operating income for the nine months increased to a record $965.5 million from $740.0 million, and net income attributable to HEICO rose to a record $659.4 million, or $4.67 per diluted share, from $502.1 million, or $3.57 per diluted share. The Flight Support Group and Electronic Technologies Group both reported higher organic growth, and the company completed several acquisitions during fiscal 2026, including Ethos, Sherwood, Southwest Antennas, Cook Defence and CalRamic.
Balance sheet growth was driven partly by acquisitions. Total assets rose to $9.94 billionb from $8.50 billion at October 31, 2025, and goodwill increased to $4.36 billion. Total debt rose to $2.54 billion, with the company issuing $550 million of 4.950% senior notes due 2031 and $650 million of 5.400% senior notes due 2036 in July 2026 and using the proceeds to repay revolving credit borrowings.
The revolving credit facility was amended in June 2026 to increase capacity by $200 million to $2.2 billionc and extend maturity to June 11, 2031. Net cash provided by operating activities was $815.9 million for the nine months, compared with $638.9 million a year earlier.
The filing reports $1,018.2 milliond of acquisition spending in the nine months, and redeemable noncontrolling interests increased to $617.9 million. Management states that net cash from operations and available credit facility borrowings will be sufficient to fund cash requirements for at least the next twelve months, and it reports that the total debt to shareholders' equity ratio was 50.6%.
02—Key points
Key Highlights
- Record nine-month net sales of $3,967.3 million, up from $3,275.6 million, and record third-quarter net sales of $1,413.1 million, up from $1,147.6 million.
- Record nine-month operating income of $965.5 million, up from $740.0 million, with operating margin of 24.3% versus 22.6% a year earlier.
- Net income attributable to HEICO of $659.4 million, or $4.67 per diluted share, for the nine months, compared with $502.1 million, or $3.57 per diluted share, a year earlier.
- Fiscal 2026 acquisitions totaled $1,051.6 million in total consideration, including Ethos, Sherwood, Southwest Antennas, Cook Defence and CalRamic, which contributed $133.5 million of nine-month net sales.
- Total debt increased to $2.54 billion, following $1.19 billion in net proceeds from the July 2026 senior notes offering and revolver borrowings used to fund acquisitions.
- Operating cash flow of $815.9 million for the nine months, up from $638.9 million, while the company paid $34.9 million in cash dividends.
- Backlog of $2,824.8 million in remaining performance obligations as of July 31, 2026, with $783.4 million expected to be recognized in the rest of fiscal 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Heico kept $0.17.
- Revenue$1.41B100.0%
- Cost of revenue−$832.1M58.9%
- Gross profit$581.0M41.1%
- Operating costs−$225.8M16.0%
- Operating income$355.2M25.1%
- Interest, other & tax−$119.8M8.5%
- Net income$235.4M16.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed August 27, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.41B$1.15B | +23.1% |
| Cost of Revenue | $832.06M$690.43M | +20.5% |
| Gross Profit | $580.99M$457.16M | +27.1% |
| R&D Expenses | $36.10M$31.93M | +13.1% |
| SG&A Expenses | $225.79M$192.14M | +17.5% |
| Operating Expenses | $1.06B$882.57M | +19.9% |
| Operating Income | $355.20M$265.02M | +34.0% |
| Interest Expense | $35.90M$31.70M | +13.3% |
| Net Income | $235.44M$177.34M | +32.8% |
| EPS (Basic) | $1.69$1.27 | +33.1% |
| EPS (Diluted) | $1.67$1.26 | +32.5% |
| Shares Outstanding (Basic) | 139.70M139.13M | +0.4% |
| Shares Outstanding (Diluted) | 141.27M140.95M | +0.2% |
05—Questions
Frequently Asked Questions
How did HEICO's sales and profitability perform in the third quarter of fiscal 2026?
Third-quarter net sales were a record $1,413.1 million, up from $1,147.6 million. Operating income was a record $355.2 million, up from $265.0 million, and net income attributable to HEICO was $235.4 million, or $1.67 per diluted share, compared with $177.3 million, or $1.26 per diluted share, a year earlier.
What acquisitions did HEICO complete in fiscal 2026?
The filing describes acquisitions of Rockmart Fuel Containment (formerly Axillon Aerospace's Fuel Containment Business), Ethos, Sherwood Avionics, Southwest Antennas, Cook Defence and CalRamic. Total consideration for the fiscal 2026 acquisitions was $1,051.6 million, and the company recorded $705.3 million of goodwill from them.
How is HEICO financing its growth and what changed in its debt structure?
In July 2026 HEICO issued $550 million of 4.950% senior notes due 2031 and $650 million of 5.400% senior notes due 2036, with net proceeds of $1,191.5 million used to repay revolving credit borrowings. In June 2026 the Credit Facility was amended to a $2.2 billion capacity with a June 11, 2031 maturity. Total debt was $2,541.2 million as of July 31, 2026, and the total debt to shareholders' equity ratio was 50.6%.
Does the filing indicate any liquidity concerns?
No. The company states it was in compliance with all covenants as of July 31, 2026, and believes that net cash provided by operating activities and available Credit Facility borrowings will be sufficient to fund its cash requirements for at least the next twelve months. Cash and cash equivalents were $240.96 million at quarter end.
What is management's outlook for the rest of fiscal 2026?
Management expects increased net sales at both the Flight Support Group and Electronic Technologies Group to continue, supported by underlying demand and contributions from recent acquisitions. It continues to focus on acquisition opportunities and estimates fiscal 2026 capital expenditures of approximately $85 to $95 million.
06—Continue