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Jan 31, 2023

Heico Q1 2023 Earnings Report

Reported record net sales and strong operating income, driven by Flight Support Group and acquisitions.

Key Takeaways

HEICO Corporation reported a 27% increase in net sales, reaching a record $620.9 million for the first quarter of fiscal 2023. Operating income also saw a significant rise of 31%, amounting to $129.4 million. The company's consolidated operating margin improved to 20.8%.

Net sales increased by 27% to a record $620.9 million.

Operating income increased by 31% to $129.4 million.

Consolidated operating margin improved to 20.8%.

EBITDA increased 29% to $157.1 million.

Total Revenue
$621M
Previous year: $490M
+26.6%
EPS
$0.7
Previous year: $0.63
+11.1%
Operating Margin
20.8%
Previous year: 20.2%
+3.0%
EBITDA
$157M
Previous year: $122M
+28.5%
Cash from Operations
$76.7M
Gross Profit
$244M
Previous year: $190M
+28.2%
Cash and Equivalents
$143M
Previous year: $125M
+14.3%
Free Cash Flow
$65.8M
Previous year: $69.3M
-5.0%
Total Assets
$4.8B
Previous year: $3.51B
+36.7%

Heico

Heico

Heico Revenue by Segment

Forward Guidance

The company anticipates net sales growth in both operating segments, driven by demand for most products. Continued inflationary pressures and supply chain disruptions may lead to higher material and labor costs. HEICO plans to continue developing new products and services, further market penetration, and an aggressive acquisition strategy.

Positive Outlook

  • Anticipate net sales growth in both operating segments.
  • Driven by demand for the majority of products.
  • Continue commitments to developing new products and services.
  • Further market penetration.
  • Aggressive acquisition strategy.

Challenges Ahead

  • Continued inflationary pressures.
  • Lingering supply chain disruptions stemming from the COVID-19 pandemic.
  • May lead to higher material costs.
  • May lead to higher labor costs.
  • Defense products net sales decreased.

Revenue & Expenses

Visualization of income flow from segment revenue to net income