HEICO Corporation Reports 15% Revenue Growth in Q2 and First Half of Fiscal 2025

HEICO Corporation reported strong financial performance for the second quarter and first half of fiscal 2025, with consolidated net sales reaching $1.1 billion for the quarter and $2.1 billion for the six months ending April 30, 2025. This represents a 15% increase compared to the same periods in the previous fiscal year, driven by robust growth in both its Flight Support Group (FSG) and Electronic Technologies Group (ETG). The FSG saw net sales rise by 19% to $767.1 million in the second quarter, while the ETG's sales increased by 7% to $342.2 million. The overall operating income for the first half of fiscal 2025 was $475 million, a 22% increase from the prior year.

The company's profitability also improved, with net income attributable to HEICO increasing by 37% to $324.7 million for the first six months, translating to $2.31 per diluted share. This growth was attributed to higher consolidated operating income and a decrease in interest expenses, which fell to $65.3 million from $77.1 million in the previous year. The effective tax rate also decreased to 14.4% from 16.9%, primarily due to a larger tax benefit from stock option exercises.

Significant strategic developments included several acquisitions aimed at enhancing HEICO's capabilities and market presence. In fiscal 2025, the company acquired Millennium International, a repair station for avionics systems, and Rosen Aviation, a manufacturer of in-flight entertainment products. These acquisitions are expected to contribute positively to HEICO's revenue and operational capabilities. The company also entered into an exclusive license agreement with Honeywell for avionics systems, further expanding its product offerings.

Operationally, HEICO reported an increase in total assets to $8.1 billion as of April 30, 2025, up from $7.6 billion at the end of the previous fiscal year. The company’s cash and cash equivalents rose to $242.3 million, reflecting a strong liquidity position. The total number of shares outstanding was reported at 55 million for common stock and 84 million for Class A common stock. The company anticipates continued growth driven by strong organic demand across its product lines and plans to leverage recent acquisitions to enhance market share.

Looking ahead, HEICO remains optimistic about achieving further net sales growth in fiscal 2025, supported by strong demand for its products and strategic acquisitions. The company plans to maintain a disciplined financial strategy focused on maximizing long-term shareholder value while ensuring compliance with financial covenants associated with its debt.