Heico Corporation (NYSE: HEI.A) has reported its financial results for the second quarter of fiscal 2025, showing a significant increase in net income, operating income, and net sales compared to the same period in the previous fiscal year.
For the second quarter of fiscal 2025, the company reported a net income of $156.8 million, representing a 27% increase from the $123.1 million reported in the second quarter of fiscal 2024. This equates to $1.12 per diluted share, up from $.88 per diluted share in the same period last year.
Net sales for the second quarter of fiscal 2025 reached a record $1,097.8 million, marking a 15% increase from the $955.4 million reported in the second quarter of fiscal 2024. Operating income also saw a notable increase, rising 19% to a record $248.2 million, up from $209.2 million in the second quarter of fiscal 2024. The company's consolidated operating margin improved to 22.6%, up from 21.9% in the second quarter of fiscal 2024.
In the first six months of fiscal 2025, Heico Corporation achieved a net income of $324.7 million, a 37% increase from the $237.8 million reported in the first six months of fiscal 2024. Net sales for the first six months of fiscal 2025 amounted to a record $2,128.0 million, up 15% from the $1,851.8 million reported in the first six months of fiscal 2024. Operating income for the first six months of fiscal 2025 also increased by 22% to a record $475.0 million, compared to $389.4 million in the first six months of fiscal 2024. The company's consolidated operating margin improved to 22.3%, up from 21.0% in the first six months of fiscal 2024.
The company's Flight Support Group achieved record-setting results, with net sales increasing 19% to a record $767.1 million in the second quarter of fiscal 2025, up from $647.2 million in the second quarter of fiscal 2024. The group's operating income also increased by 24% to a record $185.0 million, up from $148.9 million in the second quarter of fiscal 2024. The Flight Support Group's operating margin improved to 24.1% in the second quarter of fiscal 2025, up from 23.0% in the second quarter of fiscal 2024.
The Electronic Technologies Group reported a 7% increase in net sales to $342.2 million in the second quarter of fiscal 2025, up from $319.3 million in the second quarter of fiscal 2024. Operating income for the Electronic Technologies Group increased by 3% to $77.9 million in the second quarter of fiscal 2025, up from $75.3 million in the second quarter of fiscal 2024.
Additionally, the company noted that its EBITDA increased by 18% to $297.7 million in the second quarter of fiscal 2025 and by 20% to $571.6 million in the first six months of fiscal 2025, compared to the same periods in the previous fiscal year.
Heico Corporation highlighted its strong cash flow from operating activities, which increased by 45% to $204.7 million in the second quarter of fiscal 2025, up from $141.1 million in the second quarter of fiscal 2024.
Furthermore, the company reported improvements in its financial leverage ratios, with the total debt to net income attributable to Heico ratio decreasing to 3.79x as of April 30, 2025, down from 4.34x as of October 31, 2024. The net debt to EBITDA ratio also improved to 1.86x as of April 30, 2025, down from 2.06x as of October 31, 2024.
Heico Corporation expressed confidence in achieving net sales growth across both the Flight Support Group and Electronic Technologies Group segments for the remainder of fiscal 2025, driven primarily by strong organic demand for most of its products. The company also aims to accelerate growth through its recently completed acquisitions while positioning itself to capitalize on future acquisition opportunities.
The company's disciplined financial strategy focuses on maximizing long-term shareholder value through a balanced approach of strategic acquisitions and organic growth initiatives aimed at gaining market share, while maintaining a strong financial position and preserving flexibility.
Today the company's shares have moved 7.53% to a price of $294.66. For more information, read the company's full 8-K submission here.
