HEICO Reports GAAP EPS of $1.33, Exceeding Estimates by $0.11; Revenue of $1.21B Surpasses Expectations by $40M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2025
0mins
Source: SeekingAlpha
Q4 Financial Performance: HEICO reported a Q4 GAAP EPS of $1.33, exceeding expectations by $0.11, with revenue of $1.21 billion, a 19.8% year-over-year increase, also beating estimates by $40 million.
EBITDA and Cash Flow Growth: EBITDA rose 26% to $331.4 million in Q4 2025, and cash flow from operating activities increased 44% to $295.3 million, reflecting strong financial health.
Debt Ratios Improvement: The total debt to net income ratio improved to 3.14x, down from 4.34x the previous year, while the net debt to EBITDA ratio decreased to 1.60x from 2.06x.
Future Revenue and EPS Projections: The consensus for Q1 revenue is $1.16 billion with an EPS of $1.27, and for the fiscal year, the revenue consensus is $4.44 billion with an EPS of $4.79.
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Analyst Views on HEI
Wall Street analysts forecast HEI stock price to rise
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 308.860
Low
303.09
Averages
365.68
High
400.00
Current: 308.860
Low
303.09
Averages
365.68
High
400.00
About HEI
HEICO Corporation is a manufacturer of jet engine and aircraft component replacement parts. Its segments include the Flight Support Group (FSG) and the Electronic Technologies Group (ETG). The FSG segment consists of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. (HFSC) and their subsidiaries. The FSG uses proprietary technology to design and manufacture jet engines and aircraft component replacement parts. FSG repairs, overhauls and distributes jet engine and aircraft components, avionics and instruments for domestic and foreign commercial air carriers and aircraft repair companies, as well as military and business aircraft operators. The ETG segment consists of HEICO Electronic Technologies Corp. and its subsidiaries. ETG designs, manufactures and sells various types of electronic, data and microwave, and electro-optical products, including infrared simulation and test equipment, laser rangefinder receivers, electrical power supplies, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 8 upward revisions and 6 downward revisions, while revenue estimates experienced 13 upward revisions and 1 downward revision, indicating a growing optimism among analysts regarding HEICO's future performance.
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- Increased Concentration: Excluding investments in Japan, Berkshire now holds only 29 positions, retaining Buffett favorites like Apple, American Express, and Coca-Cola, reflecting ongoing confidence in classic quality assets.
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- Reduction in Holdings: Abel dramatically cut the number of companies in the portfolio, selling off major stakes including Amazon and Visa, with Amazon's shares reduced from 10 million to 2.3 million, reflecting a significant strategic shift in investment focus.
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- Flight Support Growth: Analysts highlighted Heico's flight support group as a key driver of potential outperformance, as airlines increasingly focus on cost control, leading to a shift in demand towards more affordable parts and repair solutions, allowing Heico to capture market share from higher-cost competitors.
- Defense Spending Tailwinds: The company's electronic technology group is expected to benefit from rising U.S. defense spending and an elevated backlog across the industry, which will provide sustained visibility into future revenue growth and enhance the company's competitive position.
- Conservative Growth Expectations: Rothschild & Co Redburn believes that current consensus estimates do not fully capture the growth potential across Heico's business segments, suggesting there is room for upside as both divisions continue to execute against favorable demand trends, potentially leading to performance that exceeds market expectations.
See More
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- Earnings Announcement Date: HEICO is set to release its Q2 earnings on May 27 after market close, with consensus EPS estimated at $1.33 and revenue expected to reach $1.25 billion, reflecting a 13.6% year-over-year growth, which could significantly impact the stock price.
- Historical Performance: Over the past year, HEICO has beaten EPS estimates 100% of the time and revenue estimates 50% of the time, demonstrating the company's stability in profitability and bolstering market confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 8 upward revisions and 6 downward revisions, while revenue estimates experienced 13 upward revisions and 1 downward revision, indicating a growing optimism among analysts regarding HEICO's future performance.
- Market Analysis: Despite pressures from the Iran war, Rothschild Redburn's new research coverage rates HEICO as a 'Buy', suggesting that quality stocks still present investment opportunities in the current market environment.
See More
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- Strong Performance: HEICO reported Q1 GAAP EPS of $1.66, beating expectations by $0.33, indicating robust profitability and competitive strength in the aerospace and electronic technology sectors.
- Revenue Growth: The company achieved revenue of $1.38 billion, a 26.6% year-over-year increase, surpassing market expectations by $130 million, reflecting strong demand in its Flight Support and Electronic Technologies divisions, further solidifying its market position.
- Future Outlook: For the remainder of fiscal 2026, HEICO anticipates continued net sales growth in both the Flight Support Group and Electronic Technologies Group, driven by rising product demand and contributions from recent acquisitions, showcasing confidence in future growth.
- Market Dynamics: Despite pressures from the Iran war, HEICO is viewed as a 'buy' opportunity due to premium compression demand, indicating market recognition of its long-term growth potential.
See More
Greg Abel's First Quarter Report Reveals Investment Strategy
- Portfolio Adjustments: In his first quarterly report, Abel adjusted the $330 billion equity portfolio by adding positions in Delta Airlines and Macy's, while tripling the stake in Alphabet, indicating his proactive approach to high-conviction stocks while maintaining Buffett's investment style.
- Small Position Sell-Off: In the first quarter, Abel and his team sold out of 16 smaller positions, including Visa and Mastercard, which accounted for about a third of Berkshire's total holdings, demonstrating decisive action in optimizing the investment portfolio.
- Core Holdings Retained: Despite the significant sell-off, Abel retained core holdings such as Apple, American Express, and Coca-Cola, reflecting his respect for and continuation of the company's traditional investment strategies established by Buffett.
- Positive Market Reaction: Following the announcement of Abel's investment strategy, Berkshire Hathaway's stock ticked higher, reflecting market confidence in his management capabilities and further solidifying the company's position in the investment community.
See More
Berkshire Hathaway's Abel Restructures Equity Portfolio
- Portfolio Restructuring: Greg Abel cut 16 small positions in the first quarter, including long-held Visa and Mastercard, demonstrating a strategic focus on concentrated high-conviction stocks while maintaining Buffett's traditional investment style.
- New Investment Directions: Abel added positions in Delta Airlines and Macy's, and tripled the investment in Alphabet, indicating a strategy aligned with Buffett's tech stock preferences, which may attract younger investors.
- Increased Concentration: Excluding investments in Japan, Berkshire now holds only 29 positions, retaining Buffett favorites like Apple, American Express, and Coca-Cola, reflecting ongoing confidence in classic quality assets.
- Positive Market Reaction: Despite the reduction of about one-third of the portfolio, Berkshire's stock price rose following the announcement, indicating market approval of Abel's investment strategy and suggesting optimistic expectations for future performance.
See More
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- Portfolio Restructuring: Under Greg Abel's leadership, Berkshire Hathaway's equity portfolio underwent significant changes in the first three months, adding Delta Air Lines and Macy's, indicating a renewed focus on the airline and retail sectors.
- Massive Alphabet Stake Increase: Berkshire increased its stake in Google's parent company Alphabet by 224% in Q1, making it the company's seventh-largest holding with a market value of $16.6 billion, and the stock has rallied 38% since, showcasing the success of this decision.
- Reduction in Holdings: Abel dramatically cut the number of companies in the portfolio, selling off major stakes including Amazon and Visa, with Amazon's shares reduced from 10 million to 2.3 million, reflecting a significant strategic shift in investment focus.
- Return to Delta Airlines: Berkshire purchased 39.8 million shares of Delta Air Lines in Q1, currently valued at $2.8 billion, marking the company's first return to airline stocks since 2020, demonstrating confidence in the recovery of the airline industry.
See More
Rothschild & Co Initiates Buy Rating on Heico with $360 Target
- Market Opportunity: Rothschild & Co Redburn initiated coverage on Heico (HEI) with a Buy rating and a $360 price target, arguing that the recent weakness in aerospace stocks presents a second chance for investors, indicating an attractive valuation backdrop for the sector.
- Flight Support Growth: Analysts highlighted Heico's flight support group as a key driver of potential outperformance, as airlines increasingly focus on cost control, leading to a shift in demand towards more affordable parts and repair solutions, allowing Heico to capture market share from higher-cost competitors.
- Defense Spending Tailwinds: The company's electronic technology group is expected to benefit from rising U.S. defense spending and an elevated backlog across the industry, which will provide sustained visibility into future revenue growth and enhance the company's competitive position.
- Conservative Growth Expectations: Rothschild & Co Redburn believes that current consensus estimates do not fully capture the growth potential across Heico's business segments, suggesting there is room for upside as both divisions continue to execute against favorable demand trends, potentially leading to performance that exceeds market expectations.
See More
