Heico Posts Record Q1 Income of $190.2M, FSG Sales $820M Up 15%
Heico’s Flight Support Group net sales rose to $820 million, up 15%, while consolidated net income hit a record $190.2 million, up 13%, and EBITDA rose 14% to $312 million. Electronic Technologies Group margin slipped to 19.8% on mix headwinds but is expected to recover, and net debt-to-EBITDA reached 1.79x.
1. Record Q1 Fiscal 2026 Results
Heico posted record consolidated net income of $190.2 million, or $1.35 per diluted share, a 13% year-over-year increase, and consolidated EBITDA rose 14% to $312.0 million on net sales growth of 14%.
2. Flight Support Group Performance
Flight Support Group net sales increased 15% to $820.0 million, driven by 12% organic growth and recent acquisitions, delivering operating income of $200.7 million, up 21%, and operating margin expansion to 24.5%.
3. Electronic Technologies Group Margin Pressure
Electronic Technologies Group reported net sales of $370.7 million, up 12%, but operating margin declined to 19.8% from 23.1% due to an unfavorable product mix and intangible amortization; management expects margin recovery in the second half.
4. Acquisition Activity and Capital Structure
Management highlighted a robust M&A pipeline with deals such as Rockmart Fuel Containment and EthosEnergy Accessories and Components, and noted net debt-to-EBITDA increased to 1.79x, still below the CFO’s 2.0x comfort threshold.