Financial Performance - HEICO Corporation reported a record net income of $190.2 million for Q1 fiscal 2026, a 13% increase from $168.0 million in Q1 fiscal 2025, translating to $1.35 per diluted share compared to $1.20 per diluted share [1][2]. - Net sales increased by 14% to $1,178.6 million in Q1 fiscal 2026, up from $1,030.2 million in Q1 fiscal 2025, with operating income rising 15% to $259.9 million [2][24]. - EBITDA for Q1 fiscal 2026 increased by 14% to $312.0 million, compared to $273.9 million in Q1 fiscal 2025 [3]. - For the first quarter of fiscal 2026, HEICO reported a net income of $204.8 million, an increase of 12.7% from $181.6 million in the same period of fiscal 2025 [28]. - HEICO's EBITDA for the first quarter of fiscal 2026 was $312.0 million, a 13.9% increase from $273.9 million in the same quarter of fiscal 2025 [30]. Segment Performance - The Flight Support Group's net sales rose 15% to $820.0 million, driven by 12% organic growth and contributions from fiscal 2025 acquisitions [8][9]. - The Electronic Technologies Group's net sales increased by 12% to $370.7 million, with strong organic growth of 6% [12]. - Operating income for the Flight Support Group increased by 21% to $200.7 million, while the Electronic Technologies Group's operating income decreased to $73.2 million from $76.5 million [9][13]. Cash Flow and Debt - Cash flow from operating activities totaled $178.6 million in Q1 fiscal 2026, down from $203.0 million in Q1 fiscal 2025, primarily due to higher performance-based compensation [6]. - The total debt to net income ratio was 3.52x as of January 31, 2026, compared to 3.14x as of October 31, 2025, reflecting increased leverage from a recent acquisition [6]. - The company’s total debt increased to $2.51 billion as of January 31, 2026, compared to $2.17 billion at the end of the previous quarter, representing a 15.5% rise [30]. - Net debt also increased to $2.25 billion, up from $1.95 billion, indicating a 15.5% increase [30]. - The net debt to EBITDA ratio stood at 1.79 as of January 31, 2026, compared to 1.60 at the end of the previous quarter [30]. Assets and Inventories - Total assets increased to $9.04 billion as of January 31, 2026, up from $8.50 billion as of October 31, 2025, reflecting a growth of 6.4% [27]. - Cash and cash equivalents rose to $261.0 million, compared to $217.8 million at the end of the previous quarter, marking a 19.9% increase [27]. - HEICO's inventories increased to $1.34 billion, up from $1.30 billion, reflecting a growth of 3.9% [27]. Future Outlook - HEICO expects continued sales momentum supported by organic demand and recent acquisitions, while pursuing selective acquisition opportunities aligned with its growth strategy [6]. - The company recognized a discrete tax benefit of $22.3 million from stock option exercises, increasing net income attributable to HEICO by $21.8 million, or $0.16 per basic share [26].
HEICO (HEI_A) - 2026 Q1 - Quarterly Results