Heico Corp.

Heico Corp.

HEI

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Market Cap$48.51B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Heico Corp.Heico Corp.61.50.07%15%9.50.5

Earnings Call Q2 2026

May 28, 2026 - AI Summary

Record results across the board (YoY growth): - Q2 FY’26 net sales +25%, operating income +41%, net income +49% vs Q2 FY’25. - Net income: $233.8M (up from $156.8M), $1.66 diluted EPS (up from $1.12). - Cash generation strong: operating cash flow +43% to $292M (from $204.7M). - Consolidated EBITDA +37% to $408.3M. - Net debt/EBITDA: 1.74x as of Apr 30, 2026 (up from 1.6x at Oct 31, 2025)—increase attributed to completed acquisitions during FY’26.
Segment performance highlights + margin drivers (good/surprising mechanics): - Flight Support Group (FSG): net sales $929.4M (+21%), operating income $243.1M (+31%), operating margin 26.2% vs 24.1%. - Margin improvement drivers: SG&A efficiency + improved gross margin and pull-forward of some defense sales requested by a customer. - Management notes acquisition amortization is meaningful: FSG had ~240 bps of acquisition intangible amortization impacting operating margin. - Cash margin before amortization (“EBITA”) ~28.6%, +160 bps vs Q2 FY’25—framed as “consistently excellent.” - Electronic Technologies Group (ETG): net sales $445.5M (+34%) (strong), operating income $121.8M (+56%), operating margin 26.5% vs 22.8%. - Important nuance (surprising but investor-relevant): ETG operating margin is “very sensitive” to mix/shipping volume, and intangible amortization heavily affects GAAP margins. - ~410 bps of intangible amortization in the quarter; management cites “cash” operating margin ~30.6% (ETG cash margin ~26.7% in Q2 FY’25). - Guidance stance for ETG GAAP operating margin FY’26: 22%–24% overall (expect some lumpy/volatile quarters).
Forward outlook (explicit expectations, not just optimism): - For remainder of FY’26, company expects increased sales in both FSG and ETG, supported by: - underlying demand trends, and - contributions from recent acquisitions. - Management reiterated that defense and space order/backlog trends remain strong with a multiyear tail expectation tied to defense replenishment and higher allied spending. - For ETG specifically, they are cautiously optimistic: watch for lumpiness, but they emphasized a six-month view (Q1 weaker, Q2 very strong) rather than overreacting to a single quarter.

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$381.67

Target Price by Analysts

14.6% upsideHeico Target Price DetailsTarget Price
$192.37

Current Fair Value

42.2% downside

Overvalued by 42.2% based on the discounted cash flow analysis.

Share Statistics

Market cap$48.51 Billion
Enterprise Value$50.89 Billion
Dividend Yield$0.24 (0.07%)
Earnings per Share$4.97
Beta0.95
Outstanding Shares139,464,000

Return

Return on Equity14.65%ROE
Return on Assets8.23%
Return on Invested Capital13.14%

Valuation & Multiples

P/E Ratio61.5P/E Ratio
PEG125.21PEG
Price to Sales9.51Price to Sales
Price to Book Ratio8.76Price to Book Ratio
Enterprise Value to Revenue10.36
Enterprise Value to EBIT44.56
Enterprise Value to Net Income64
Total Debt to Enterprise0.05
Debt to Equity0.48Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
June 2, 2026
EPS Estimate
$1.32
Average shareholder expectation
Revenue Estimate
$1.24 B
Average shareholder expectation

Next Earnings Call

Expected Date
August 24, 2026
EPS Estimate
$1.43
Average shareholder expectation
Revenue Estimate
$1.33 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.8170 57.44%
Total Calls265,535 185.74%
Total Puts216,940 67.78%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %29.42% 0.75%
Total Invested$11.03B 14.58%
Investors Holding754 18.00%

ESG Score

No data

About Heico Corp.

6,000 employees
CEO: Laurans Mendelson

HEICO Corporation is an aerospace and electronics company that focuses on niche markets. HEICO’s products are found in aircraft, spacecraft, defense equipment, medical equipment, and telecommunications systems.

Relevant Senate Committees

Joint Committee on Taxation

This committee provides crucial technical analysis and 'revenue estimates' for tax legislation, directly influencing corporate tax structures, capital investment credits, and the overall tax burden on manufacturing companies like Heico.

Finance

This powerful committee controls taxation, trade, and entitlement spending. Its decisions on corporate tax policy, tariffs on imported components/exports of defense items, and Medicare pricing significantly impact Heico's profitability and market access.

Appropriations

This committee directly allocates discretionary federal spending. Its subcommittees determine the precise cash flow for defense programs, scientific research, and other projects that Heico supplies, directly impacting contractor order books.

Health, Education, Labor, and Pensions

Heico produces medical equipment. This committee regulates the FDA (critical for medical device approval) and influences labor laws, directly impacting manufacturing costs and market access for Heico's medical products.

Armed Services

Heico produces defense equipment and small arms ammunition. This committee's oversight of the Department of Defense and authorization of the annual NDAA directly determines revenue streams and R&D funding for defense contractors.

Select Committee on Intelligence

Heico produces defense equipment. This committee's oversight of the Intelligence Community and access to classified information on global threats and intelligence needs directly impacts procurement and R&D for defense and cybersecurity technologies.

Commerce, Science, and Transportation

Heico operates in aerospace, electronics, and telecommunications. This committee directly regulates interstate commerce, the FAA (aerospace), and FCC (telecommunications), making its influence highly relevant.

Homeland Security and Governmental Affairs

Heico supplies defense and security equipment. This committee's oversight of federal procurement and the Department of Homeland Security directly impacts government contracting opportunities for the company.