- HEICO Corporation (HEI, HEI.A) reports a 27% rise in net income for Q2 FY2025.
- Record net sales in Q2 FY2025, up 15% to $1.1 billion.
- Operating income increased by 19%, with an improved margin at 22.6%.
HEICO Corporation (HEI, HEI.A) announced remarkable financial results for the second quarter of fiscal year 2025, showcasing significant gains across key financial metrics. Net income soared by 27% to $156.8 million, translating to $1.12 per diluted share, up from $123.1 million or $0.88 per diluted share in the same period last year. The company also reported record net sales, which climbed 15% year-over-year to $1.1 billion.
Operating income reached a new high of $248.2 million, showing a robust 19% increase from the previous fiscal year's second quarter. Concurrently, HEICO's operating margin improved to 22.6%, up from 21.9% a year prior, reflecting enhanced operational efficiencies.
The Flight Support Group continued its growth streak with a 19th consecutive quarter of expansion. This segment's net sales rose by 19% to $767.1 million, with operating income escalating by 24% to $185 million. These results were driven by a 14% increase in organic net sales across all product lines.
Meanwhile, the Electronic Technologies Group recorded a 7% increase in net sales, reaching $342.2 million, though its operating income saw a modest growth of 3% to $77.9 million. The group experienced a slight contraction in operating margin to 22.8% from 23.6% year-over-year, mainly due to decreased demand in the medical and defense sectors.
The company's cash flow from operations saw a significant upturn of 45%, rising to $204.7 million. Furthermore, HEICO's financial flexibility improved, with the net debt to EBITDA ratio decreasing to 1.86x from 2.06x in October 2024.
These results were primarily driven by strong organic demand, particularly in the commercial aerospace and space product sectors, coupled with contributions from recent acquisitions. HEICO's performance underscores its robust business model and market position in the recovering global aerospace market.
