Heico Corp (NYSE:HEI) stock rose 6.88% (As on August 26, 11:24:49 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY25. The company’s growth was primarily driven by its Flight Support Group, which saw sales jump 18% to a record $802.7 million in Q3. This growth was attributed to the continued expansion and momentum in the aerospace aftermarket business. The Electronic Technologies Group also contributed to the overall performance, maintaining a 22.8% operating margin despite facing margin pressures due to product mix shifts and performance-based compensation. The aerospace and defense sectors are expected to continue driving Heico’s growth, with aging aircraft fleets, modernization programs, and geopolitical tensions fueling demand. Heico’s focus on high-margin niche markets and its ability to integrate acquisitions swiftly have allowed it to capitalize on these opportunities. Cash flow provided by operating activities increased 8% to $231.2 million in the third quarter of fiscal 2025, up from $214.0 million in the third quarter of fiscal 2024. The company continues to forecast strong cash flow from operations for fiscal 2025. The total debt to net income attributable to HEICO ratio was 3.81x as of July 31, 2025, down from 4.34x as of October 31, 2024. The net debt to EBITDA ratio was 1.90x as of July 31, 2025, down from 2.06x as of October 31, 2024.

HEI in the third quarter of FY25 has reported the adjusted earnings per share of $1.26, beating the analysts’ estimates for the adjusted earnings per share of $1.13. The company had reported the adjusted revenue growth of 16 percent to $1.15 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $1.12 billion. Operating income increased 22% to a record $265.0 million in the third quarter of fiscal 2025, up from $216.4 million in the third quarter of fiscal 2024. The Company’s consolidated operating margin improved to 23.1% in the third quarter of fiscal 2025, up from 21.8% in the third quarter of fiscal 2024. EBITDA increased 21% to $316.4 million in the third quarter of fiscal 2025, up from $261.4 million in the third quarter of fiscal 2024. The Flight Support Group’s operating income increased 29% to a record $198.3 million in the third quarter of fiscal 2025, up from $153.6 million in the third quarter of fiscal 2024. The Electronic Technologies Group’s operating income increased 7% to $81.0 million in the third quarter of fiscal 2025, up from $75.8 million in the third quarter of fiscal 2024.