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HEICO
(NYSE:HEI)
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Rating:76Outperform
Price Target:
$387.00
â–²(10.69% Upside)
Action:Reiterated
Date:07/18/26
HEI scores well primarily on strong underlying financial performance (growth plus cash-flow quality) and a positive earnings-call outlook supported by record results and reaffirmed margin guidance. The score is held back by a rich valuation (high P/E) and only moderate/paused technical momentum versus longer-term uptrend signals.
Positive Factors
Aftermarket & PMA recurring revenue
HEICO’s focus on FAA-approved PMA parts and repair services creates recurring revenue tied to long aircraft lifecycles. Certification barriers and customer cost-savings incentives support pricing power and durable demand, insulating revenue versus new-build cyclicality over 2–6 months and beyond.
Negative Factors
Gross-margin compression & variability
Material TTM gross-margin compression suggests exposure to adverse mix, input-costs or pricing pressure. If persistent, margin weakness could erode operating leverage and limit the durability of mid‑teens net margins, making earnings more sensitive to cyclical or cost shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Aftermarket & PMA recurring revenue
HEICO’s focus on FAA-approved PMA parts and repair services creates recurring revenue tied to long aircraft lifecycles. Certification barriers and customer cost-savings incentives support pricing power and durable demand, insulating revenue versus new-build cyclicality over 2–6 months and beyond.
Read all positive factors
HEICO (HEI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.21B
Dividend Yield0.04%
Average Volume (3M)428.33K
Price to Earnings (P/E)63.0
Beta (1Y)0.91
Revenue Growth18.80%
EPS Growth30.84%
CountryUS
Employees11,100
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)5.66
Shares Outstanding55,235,560
10 Day Avg. Volume452,317
30 Day Avg. Volume428,329
Financial Highlights & Ratios
PEG Ratio1.88
Price to Book (P/B)10.26
Price to Sales (P/S)9.85
P/FCF Ratio51.30
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$391.23Price Target Upside11.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)6.1
Revenue Forecast (FY)$5.29B
HEICO Business Overview & Revenue Model
Company Description
HEICO Corporation operates as a global enterprise through its various subsidiaries, specializing in the design, manufacturing, and distribution of an extensive range of products and services tailored for the aerospace, defense, and electronics ind...
How the Company Makes Money
HEICO makes money by selling highly specialized components and services that are embedded in customers’ aircraft and mission-critical systems, and by supplying the aftermarket needs required to keep those systems operating over long lifecycles.
1...
HEICO Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 31, 2026
Earnings Call Sentiment Positive
The call emphasized multiple record-setting financial metrics (net income +49%, operating income +41%, net sales +25%), robust cash flow (+43%) and strong segment performance (FSG and ETG both delivering record sales and operating income). Management highlighted healthy order flow, record backlogs, ongoing accretive M&A and participation in high‑profile programs (ARTEMIS II). Challenges cited were manageable: supply-chain constraints limiting some component repair growth, acquisition-related intangible amortization compressing GAAP margins, a moderate rise in leverage (net debt/EBITDA 1.74x) and some regional softness in the Middle East. Given the preponderance of operational and financial wins, plus clear commentary around sustainable demand and disciplined capital allocation, the tone is constructive and positive overall.Positive Updates
Record Consolidated Profitability and Revenue Growth
Consolidated net income rose 49% year-over-year to $233.8M ($1.66 per diluted share); consolidated operating income increased 41% and consolidated net sales increased 25% versus Q2 FY25, marking record results for the company.
Negative Updates
Supply Chain Constraints Impacting Component Repair Growth
Component repair organic growth (~10%) was constrained by supplier part shortages and supply-chain delays—management said missing single parts can prevent completion of assemblies and dampened what could have been higher repair growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Consolidated Profitability and Revenue Growth
Consolidated net income rose 49% year-over-year to $233.8M ($1.66 per diluted share); consolidated operating income increased 41% and consolidated net sales increased 25% versus Q2 FY25, marking record results for the company.
Read all positive updates
Company Guidance
HEICO guided to full‑year fiscal 2026 GAAP operating margins of 22%–24% and said it expects increased sales for the remainder of fiscal ’26 in both the Flight Support Group (FSG) and Electronic Technologies Group (ETG); Q2 metrics supporting that outlook included consolidated net sales up 25% YoY, consolidated net income up 49% to $233.8M ($1.66 diluted EPS), cash flow from operations up 43% to $292M, and consolidated EBITDA up 37% to $408.3M, with net debt/EBITDA of 1.74x (vs. 1.6x Oct‑31‑25) after four acquisitions in FY26 (two April deals—Sherwood Avionics 80%, Southwest Antennas 90%—expected to be accretive within a year). Segmentary Q2 detail: FSG net sales $929.4M (+21% YoY), operating income $243.1M (+31%), operating margin 26.2% and EBITA (cash margin before amortization) ~28.6% (vs. 27.0% prior); ETG posted operating income $121.8M (+56%), operating margin 26.5% (30.6% before acquisition‑related amortization) with strong organic growth—management cautioned ETG margins can be volatile but reiterated the 22%–24% FY26 GAAP target and said FSG margins could reasonably sit around 24%–26% going forward.HEICO Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.91B | 4.49B | 3.86B | 2.97B | 2.21B | 1.87B |
| Gross Profit | 1.97B | 1.79B | 1.61B | 1.25B | 938.82M | 796.30M |
| EBITDA | 1.37B | 1.22B | 1.00B | 756.77M | 592.71M | 486.24M |
| Net Income | 789.63M | 690.38M | 514.11M | 403.60M | 351.68M | 304.22M |
Balance Sheet | ||||||
| Total Assets | 9.59B | 8.50B | 7.59B | 7.20B | 4.10B | 3.50B |
| Cash, Cash Equivalents and Short-Term Investments | 210.34M | 217.78M | 162.10M | 171.05M | 139.50M | 108.30M |
| Total Debt | 2.59B | 2.19B | 2.25B | 2.50B | 304.93M | 250.37M |
| Total Liabilities | 4.20B | 4.12B | 3.90B | 4.00B | 1.12B | 948.88M |
| Stockholders Equity | 4.77B | 4.31B | 3.64B | 3.15B | 2.61B | 2.26B |
Cash Flow | ||||||
| Free Cash Flow | 925.97M | 861.38M | 614.11M | 399.30M | 435.87M | 407.90M |
| Operating Cash Flow | 997.11M | 934.27M | 672.37M | 448.74M | 467.86M | 444.08M |
| Investing Cash Flow | -1.24B | -731.69M | -293.20M | -2.48B | -395.83M | -183.45M |
| Financing Cash Flow | 211.95M | -150.68M | -389.39M | 2.07B | -33.83M | -558.97M |
HEICO Technical Analysis
Positive
349.61
Price Trends
339.40
Positive
311.08
Positive
317.80
Positive
Market Momentum
2.24
Positive
56.31
Neutral
35.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HEI, the sentiment is Positive. The current price of 349.61 is below the 20-day moving average (MA) of 349.74, above the 50-day MA of 339.40, and above the 200-day MA of 317.80, indicating a bullish trend. The MACD of 2.24 indicates Positive momentum. The RSI at 56.31 is Neutral, neither overbought nor oversold. The STOCH value of 35.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HEI.
HEICO Risk Analysis
HEICO disclosed 20 risk factors in its most recent earnings report. HEICO reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
HEICO Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $41.21B | 62.96 | 17.82% | 0.04% | 18.80% | 30.84% | |
76 Outperform | $26.47B | 52.73 | 19.64% | 0.13% | 12.22% | 21.44% | |
72 Outperform | $21.23B | 39.00 | 21.75% | 0.29% | 22.35% | 41.77% | |
70 Outperform | $50.65B | 27.82 | 8.87% | 1.63% | 7.29% | 10.75% | |
69 Neutral | $14.98B | 16.09 | 11.93% | 0.08% | 8.80% | 19.82% | |
68 Neutral | $15.17B | 44.75 | 27.91% | 0.60% | 21.39% | 19.25% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
HEI
HEICO
356.36
31.51
9.70%
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724.00
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46.91%
LHX
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277.06
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TXT
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8.10
10.50%
WWD
Woodward
360.75
102.48
39.68%
BWXT
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168.70
19.83
13.32%
HEICO Corporate Events
Business Operations and StrategyPrivate Placements and Financing
HEICO Raises $1.2 Billion Through Senior Notes Offering
Positive
Jul 17, 2026
On July 16, 2026, HEICO Corporation closed a $1.2 billion senior notes offering, issuing $550 million of 4.950% notes due 2031 and $650 million of 5.400% notes due 2036. The company will use the proceeds to pay down borrowings under its $2.2 billi...
Business Operations and StrategyPrivate Placements and Financing
HEICO Expands and Extends Revolving Credit Facility Agreement
Positive
Jun 17, 2026
On June 11, 2026, HEICO Corporation amended its revolving credit agreement, increasing the capacity of its existing credit facility from $2.0 billion to $2.2 billion and extending the facility’s maturity to June 11, 2031. The amendment also ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.