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Apr 30, 2022

Heico Q2 2022 Earnings Report

Reported record operating income, driven by record operating income at the Flight Support Group, and net sales increased.

Key Takeaways

HEICO Corporation reported a 20% increase in net income to $85.0 million, or $.62 per diluted share, in the second quarter of fiscal 2022. Net sales increased 15% to $538.8 million, and operating income increased 27% to a record $122.8 million.

Net income increased by 20% to $85.0 million, or $.62 per diluted share.

Net sales increased by 15% to $538.8 million.

Operating income increased by 27% to a record $122.8 million.

The company's consolidated operating margin improved to 22.8%.

Total Revenue
$539M
Previous year: $467M
+15.5%
EPS
$0.62
Previous year: $0.51
+21.6%
Operating Margin
22.8%
Previous year: 20.7%
+10.1%
EBITDA
$147M
Previous year: $120M
+22.2%
Gross Profit
$211M
Previous year: $180M
+17.5%
Cash and Equivalents
$117M
Previous year: $385M
-69.6%
Free Cash Flow
$89.3M
Previous year: $96.5M
-7.5%
Total Assets
$3.69B
Previous year: $3.6B
+2.5%

Heico

Heico

Heico Revenue by Segment

Forward Guidance

HEICO expects global commercial air travel to continue growing despite the potential for additional COVID-19 global pandemic variants but feels it would not be responsible to provide fiscal 2022 net sales and earnings guidance at this time.

Positive Outlook

  • Ongoing worldwide rollout of Pandemic vaccines, including boosters, will continue to positively influence global commercial air travel and benefit the markets we serve.
  • Ongoing conservative policies
  • Strong balance sheet
  • High degree of liquidity enable us to continuously invest in new research and development
  • Execute on our successful acquisition program, which collectively position HEICO for market share gains

Challenges Ahead

  • Potential for additional COVID-19 global pandemic variants.
  • It still remains very difficult to predict the Pandemic's path and effect, including factors like new variants and vaccination rates
  • Potential supply chain disruptions
  • Inflation
  • All of which can impact our key markets

Revenue & Expenses

Visualization of income flow from segment revenue to net income