HEICO Shares Tumble 12.2% After Q4 Revenue Beat Masks Weak Cash Flow
HEICO’s Q4 2025 revenue rose 14.4% to $1.18 billion, but adjusted EBITDA of $312 million and GAAP EPS of $1.35 were weighed down by lower-quality tax benefits and a free cash flow margin slid to 14% from 18% y/y. Shares plunged 12.2% on these underlying weaknesses.
1. Q4 Earnings Results
HEICO reported Q4 2025 revenue of $1.18 billion, up 14.4% year-over-year, narrowly beating consensus forecasts. GAAP EPS reached $1.35 per share, driven largely by a discrete income tax benefit related to stock option exercises, while adjusted EBITDA stood at $312 million, below analyst expectations.
2. Underlying Financial Weaknesses
Excluding the tax benefit, EPS would have missed estimates, highlighting earnings quality concerns. Free cash flow margin declined to 14% from 18% in the same quarter last year, reflecting weaker cash generation that also fell short of street forecasts.
3. Market Reaction and Stock Movement
Shares fell 12.2% in an unusually large single-session move, one of only seven such swings over the past year for HEICO. The stock is down 7.9% year-to-date and trading about 15% below its 52-week high of $358.04 set in January 2026.