Heico Corp (NYSE:HEI) stock rose 4.38% (As on December 19, 11:25:22 AM UTC-4, Source: Google Finance) after the company reported fourth quarter earnings that exceeded analyst expectations, with both revenue and profit showing strong double-digit growth as commercial aerospace demand continues to surge. Heico’s Flight Support Group, which provides aftermarket parts and services to airlines, led the growth with a 21% increase in quarterly sales to $834.4 million, including 16% organic growth. The segment has now achieved twenty-one consecutive quarters of sequential sales growth, reflecting robust demand across all product lines. The Electronic Technologies Group, which serves defense, space and medical markets, saw sales increase 14% to $384.8 million, with 7% organic growth primarily from increased demand for defense, aerospace and space products. Operating income increased 28% to a record $279.0 million in the fourth quarter of fiscal 2025, up from $218.6 million in the fourth quarter of fiscal 2024. Operating margins improved to 23.1% in the fourth quarter, up from 21.6% in the same period last year, reflecting higher gross profit margins and improved operational efficiencies. Cash flow from operations surged 44% to $295.3 million in the quarter, helping reduce the company’s net debt to EBITDA ratio to 1.60x from 2.06x a year earlier.
HEI in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.33, beating the analysts’ estimates for the adjusted earnings per share of $1.21. The company had reported the adjusted revenue growth of 19 percent to $1.21 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $1.17 billion. The company reported net income increased 35% to a record $188.3 million, in the fourth quarter of fiscal 2025, up from $139.7 million in the fourth quarter of fiscal 2024. EBITDA increased 26% to $331.4 million in the fourth quarter of fiscal 2025, up from $264.0 million in the fourth quarter of fiscal 2024. The Flight Support Group’s operating income increased 27% to a record $750.4 million in the fiscal year ended October 31, 2025, up from $593.1 million in the fiscal year ended October 31, 2024. The Electronic Technologies Group’s operating income increased 10% to a record $89.6 million in the fourth quarter of fiscal 2025, up from $81.8 million in the fourth quarter of fiscal 2024.
Additionally, the company declared a semiannual cash dividend of $.12 per share payable in January 2026.
Looking ahead to fiscal 2026, Heico anticipates continued net sales growth across both business segments, driven by increased demand for the majority of its products and contributions from recent acquisitions.