HEICO Beats Q3 FY2026 Estimates with Record Revenue of $1.41 Billion and EPS of $1.67
Why It MattersBroad-based double-digit organic growth across defense, commercial aviation, space and industrial markets signals sustained demand strength across the aerospace supply chain.
HEICO reported record fiscal third-quarter 2026 results, with diluted earnings per share of $1.67 exceeding the analyst consensus estimate of $1.51 by $0.16, or 10.6%. Revenue reached $1.41 billion, up 23% year over year and $60 million above the forecast of $1.35 billion. Net income climbed 33% to a record $235.4 million, operating income rose 34% to a record $355.2 million, and EBITDA increased 31% to $415.2 million. Operating cash flow surged 49% to $345.3 million, with nine-month operating cash flow totaling $816 million; management said net income, operating income, sales and cash flow all reached quarterly records.
Both main business segments delivered double-digit organic growth: 18% at the Electronic Technologies Group and 12% at the Flight Support Group. Management said every major market the company serves, including defense, commercial aviation, space and industrial technology, showed positive demand signals in the quarter. HEICO paid its 96th consecutive semiannual cash dividend, raised 8% to $0.13 per share, and ended the quarter with a net debt to EBITDA ratio of 1.57 times, slightly improved from 1.6 times at the start of the fiscal year.
The Florida-based company ended the quarter with approximately $3 billion of liquidity capacity after issuing $1.2 billion of senior unsecured notes and expanding its revolving credit facility, and management described the acquisition pipeline as incredibly full. For the full year, management guided free cash flow to approximately $1 billion, reiterated its long-term target of growing net income 15% to 20% annually, and guided Flight Support GAAP operating margins of 22% to 24%. Management flagged a $70 million to $75 million cash payment tied to the estate of a former chairman and CEO as a risk that will weigh on fourth-quarter operating cash flow. HEICO shares were trading at $351.71, up 0.19% from the prior close of $351.05, about 6.7% below their 52-week high of $376.86 and roughly 37.3% above their 52-week low of $256.11.
