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Apr 30, 2024

Heico Q2 2024 Earnings Report

Heico reported record net sales, operating income, and net income for the second quarter of fiscal year 2024.

Key Takeaways

HEICO Corporation reported a 17% increase in net income, reaching a record $123.1 million, and a 39% increase in net sales to a record $955.4 million for the second quarter of fiscal 2024. Operating income also increased by 33% to a record $209.2 million.

Net sales increased by 39% to a record $955.4 million.

Operating income increased by 33% to a record $209.2 million.

Net income attributable to HEICO shareholders increased by 17% to $123.1 million.

Cash flow provided by operating activities increased 82% to $141.1 million.

Total Revenue
$955M
Previous year: $688M
+38.9%
EPS
$0.88
Previous year: $0.76
+15.8%
Operating Margin
21.9%
Previous year: 22.8%
-3.9%
EBITDA
$252M
Previous year: $187M
+34.8%
Gross Profit
$372M
Previous year: $267M
+39.5%
Cash and Equivalents
$204M
Previous year: $127M
+60.6%
Free Cash Flow
$128M
Previous year: $66.7M
+92.3%
Total Assets
$7.37B
Previous year: $4.87B
+51.2%

Heico

Heico

Heico Revenue by Segment

Forward Guidance

HEICO anticipates net sales growth in both the Flight Support Group and the Electronic Technologies Group, driven by contributions from fiscal 2023 acquisitions and demand for the majority of their products. The company plans to continue developing new products and services and further market penetration while maintaining financial strength and flexibility.

Positive Outlook

  • Anticipates net sales growth in the Flight Support Group.
  • Anticipates net sales growth in the Electronic Technologies Group.
  • Driven by contributions from fiscal 2023 acquisitions.
  • Driven by demand for the majority of their products.
  • Plans to continue commitment to developing new products and services and further market penetration.

Challenges Ahead

  • Severity, magnitude and duration of public health threats, such as the COVID-19 pandemic
  • Lower commercial air travel, airline fleet changes or airline purchasing decisions, which could cause lower demand for our goods and services
  • Product specification costs and requirements, which could cause an increase to our costs to complete contracts
  • Governmental and regulatory demands, export policies and restrictions, reductions in defense, space or homeland security spending by U.S. and/or foreign customers or competition from existing and new competitors, which could reduce our sales
  • Economic conditions, including the effects of inflation, within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues.

Revenue & Expenses

Visualization of income flow from segment revenue to net income