HEI

HEICO (HEI) Reports Record-Breaking Financial Results

Heico Corporation has reported impressive financial results for the second quarter of fiscal 2024, with record-breaking figures across various key metrics, showcasing strong performance and growth.

The company's net income saw a substantial 17% increase to reach a record $123.1 million, or $.88 per diluted share, compared to $105.1 million, or $.76 per diluted share, in the second quarter of fiscal 2023. Moreover, net sales surged by an impressive 39% to a record $955.4 million in the second quarter of fiscal 2024, up from $687.8 million in the second quarter of fiscal 2023.

Operating income also experienced a significant upturn, rising by 33% to a record $209.2 million in the second quarter of fiscal 2024, up from $157.1 million in the second quarter of fiscal 2023. The company's consolidated operating margin was 21.9% in the second quarter of fiscal 2024, compared to 22.8% in the second quarter of fiscal 2023.

For the first six months of fiscal 2024, net income increased by 20% to a record $237.8 million, or $1.70 per diluted share, up from $198.1 million, or $1.43 per diluted share, in the first six months of fiscal 2023. Net sales for the first six months of fiscal 2024 also displayed robust growth, increasing by 41% to a record $1,851.8 million, up from $1,308.8 million in the first six months of fiscal 2023. Operating income for the same period climbed by 36% to a record $389.4 million, up from $286.5 million in the first six months of fiscal 2023.

The Flight Support Group under Heico Corporation's umbrella achieved outstanding results, with net sales soaring by 65% to a record $647.2 million in the second quarter of fiscal 2024, up from $392.2 million in the second quarter of fiscal 2023. The group's operating income also experienced a remarkable 49% increase to a record $148.9 million in the second quarter of fiscal 2024, up from $99.9 million in the second quarter of fiscal 2023.

The Electronic Technologies Group, another division of Heico Corporation, delivered solid performance, with a 6% increase in net sales to $319.3 million in the second quarter of fiscal 2024, up from $301.8 million in the second quarter of fiscal 2023. The group's operating income also saw a notable 11% increase to $75.3 million in the second quarter of fiscal 2024, up from $68.0 million in the second quarter of fiscal 2023.

The company's non-GAAP measure EBITDA increased by 35% to $252.4 million in the second quarter of fiscal 2024, up from $187.2 million in the second quarter of fiscal 2023. For the first six months of fiscal 2024, EBITDA increased by 38% to $476.8 million, up from $344.3 million in the first six months of fiscal 2023.

The company's total debt to net income attributable to Heico ratio improved to 5.39x as of April 30, 2024, down from 6.14x as of October 31, 2023. Additionally, the net debt to EBITDA ratio also showed improvement, standing at 2.45x as of April 30, 2024, down from 3.04x as of October 31, 2023.

The exceptional financial results reflect Heico Corporation's strong performance and growth trajectory, driven by robust sales in its Flight Support Group and Electronic Technologies Group, as well as contributions from its fiscal 2023 acquisitions.

In light of these impressive results, Heico Corporation anticipates continued net sales growth in both the Flight Support Group and the Electronic Technologies Group, driven by contributions from its fiscal 2023 acquisitions and strong demand for its products. The company also plans to focus on developing new products and services, expanding its market presence, and maintaining financial strength and flexibility.

Heico Corporation's strong financial performance for the second quarter of fiscal 2024 is a testament to its strategic growth initiatives and operational excellence, positioning the company for sustained success in the future. Following these announcements, the company's shares moved 5.0%, and are now trading at a price of $222.74. If you want to know more, read the company's complete 8-K report here.

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