Heico Corporation (NYSE: HEI.A) (NYSE: HEI) has reported record-breaking results for the third quarter of fiscal 2025. The company's net income surged by 30% to reach a record $177.3 million, or $1.26 per diluted share, compared to the third quarter of fiscal 2024 when it stood at $136.6 million, or $0.97 per diluted share. For the first nine months of fiscal 2025, net income also saw a substantial increase of 34% to a record $502.1 million, or $3.57 per diluted share, up from $374.4 million, or $2.67 per diluted share in the first nine months of fiscal 2024.
Net sales for the third quarter of fiscal 2025 reached a record $1,147.6 million, marking a 16% increase from the third quarter of fiscal 2024. Operating income also hit a record high, rising by 22% to $265.0 million in the third quarter of fiscal 2025, up from $216.4 million in the third quarter of fiscal 2024. The consolidated operating margin improved to 23.1% in the third quarter of fiscal 2025, up from 21.8% in the third quarter of fiscal 2024.
For the first nine months of fiscal 2025, net sales increased by 15% to a record $3,275.6 million, up from $2,844.0 million in the first nine months of fiscal 2024. Operating income for the same period increased by 22% to a record $740.0 million, up from $605.8 million in the first nine months of fiscal 2024. The company's consolidated operating margin also improved to 22.6% in the first nine months of fiscal 2025, up from 21.3% in the first nine months of fiscal 2024.
The Flight Support Group achieved record-setting third-quarter results, driven by a remarkable 18% increase in net sales to $802.7 million and a 29% increase in operating income to $198.3 million, compared to the third quarter of fiscal 2024. The group's net sales for the first nine months of fiscal 2025 increased by 17% to a record $2,282.9 million, and operating income increased by 25% to a record $549.4 million.
The Electronic Technologies Group also achieved quarterly record-setting net sales, with a 10% increase to $355.9 million in the third quarter of fiscal 2025. Operating income for the same period increased by 7% to $81.0 million. For the first nine months of fiscal 2025, the group's net sales increased by 11% to a record $1,028.3 million, and operating income increased by 14% to a record $235.3 million.
Overall, Heico's EBITDA increased by 21% to $316.4 million in the third quarter of fiscal 2025 and by 20% to $888.1 million in the first nine months of fiscal 2025. The company's cash flow provided by operating activities also increased by 8% to $231.2 million in the third quarter of fiscal 2025.
Furthermore, the company's total debt to net income attributable to Heico ratio decreased to 3.81x as of July 31, 2025, down from 4.34x as of October 31, 2024. Similarly, the net debt to EBITDA ratio decreased to 1.90x as of July 31, 2025, down from 2.06x as of October 31, 2024.
Heico expressed confidence in achieving net sales growth across both the Flight Support Group and Electronic Technologies Group segments, driven by continued organic demand for most of its products. The company also aims to accelerate growth through recently completed acquisitions while maintaining a strong financial position and preserving flexibility.
The market has reacted to these announcements by moving the company's shares 8.47% to a price of $331.21. For the full picture, make sure to review HEICO CORP's 8-K report.
