HEICO’s Q3 results were met with a positive market response, as the company delivered notable growth across both its Flight Support and Electronic Technologies segments. Management attributed the strong performance to broad-based demand for aftermarket parts and repair, with Co-CEO Eric Mendelson stating, “The value proposition that HEICO offers our customers has driven operating income primarily off of organic sales growth, while our customers remain very happy.” The company also benefited from recent acquisitions, which complemented its core organic growth, and ongoing efficiency improvements that supported higher operating margins.
Is now the time to buy HEI? Find out in our full research report (it’s free for active Edge members).
HEICO (HEI) Q3 CY2025 Highlights:
- Revenue: $1.21 billion vs analyst estimates of $1.17 billion (19.3% year-on-year growth, 3.2% beat)
- Adjusted EPS: $1.33 vs analyst estimates of $1.22 (9.3% beat)
- Adjusted EBITDA: $330.2 million vs analyst estimates of $319.5 million (27.3% margin, 3.4% beat)
- Operating Margin: 23.1%, up from 21.6% in the same quarter last year
- Organic Revenue rose 13.3% year on year vs analyst estimates of 11.2% growth (211.1 basis point beat)
- Market Capitalization: $40.72 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From HEICO’s Q3 Earnings Call
- Lawrence Solow (CJS Securities) asked about the drivers behind Flight Support Group’s growth rates. Co-CEO Eric Mendelson attributed the outperformance to a strong industry environment and HEICO’s value proposition, emphasizing both organic momentum and customer satisfaction.
- Ronald Epstein (Bank of America) inquired about the pace and focus of M&A activity. Co-CEO Victor Mendelson described a busy acquisition pipeline, highlighting HEICO’s reputation as a preferred buyer and its disciplined approach to leverage.
- Peter Arment (Baird) questioned the sustainability of defense and missile segment growth. Eric Mendelson said the mix should remain consistent, with ongoing opportunities in both defense and commercial aerospace.
- Kenneth Herbert (RBC Capital Markets) asked about the potential for continued margin expansion. CFO Carlos Macau provided a range for operating margin expectations and noted that mix and volume trends would be key drivers.
- Sheila Kahyaoglu (Jefferies) sought details on which Flight Support subsectors might outperform and how the EthosEnergy acquisition fits strategically. Eric Mendelson responded that strength is broad-based and highlighted EthosEnergy’s industrial gas turbine expertise as a valuable addition.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be monitoring (1) integration progress and revenue contributions from newly acquired businesses such as EthosEnergy, (2) sustained aftermarket parts and repair demand amid evolving airline and defense fleet trends, and (3) margin performance in light of ongoing cost absorption and product mix changes. The pace of new product introductions and progress in defense-related opportunities will also be key factors to track.
HEICO currently trades at $338.05, up from $309.99 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).
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