Heico Reports 15% FSG Sales Growth to $820M, EBITDA Margin Hits 27.1%
Heico's Flight Support Group net sales rose 15% to $820.0 million, driven by 12% organic growth and acquisitions, with EBITDA margin before amortization climbing to 27.1%. Consolidated EBITDA increased 14% to $312.0 million and net income hit a record $190.2 million, while net debt/EBITDA reached 1.79x.
1. Flight Support Group performance
Heico’s Flight Support Group posted net sales of $820.0 million, up 15% year over year, driven by 12% organic growth and fiscal 2025 acquisitions. FSG operating margin rose to 24.5% from 23.3%, while segment EBITDA margin before intangible amortization reached 27.1%, up 110 basis points.
2. Electronic Technologies Group margins
The Electronic Technologies Group reported net sales of $370.7 million, up 12% year over year from 6% organic growth and deal contributions. Operating margin fell to 19.8% from 23.1% due to an unfavorable defense and space product mix, with amortization dragging over 410 basis points; underlying margin before amortization was around 24%.
3. Consolidated results and cash flow
Consolidated net sales increased 14% to support a 15% rise in operating income and a 14% increase in EBITDA to $312.0 million. Record net income reached $190.2 million, or $1.35 per share, up 13%, while operating cash flow was $178.6 million after a $22.7 million LCP distribution, with another $73 million expected but net cash neutral via life insurance funding. Tax benefits totaled $21.8 million.
4. Acquisitions and capital structure
Heico completed acquisitions of Rockmart Fuel Containment and EthosEnergy Accessories and signed an agreement to buy 80% of a commercial aviation services firm, expecting accretion within a year. Net debt to EBITDA rose to 1.79x from 1.6x due to acquisition financing, with management targeting leverage under 2.0x and stressing disciplined deal multiples.