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Jul 31, 2022

Heico Q3 2022 Earnings Report

Reported record operating income and net sales driven by Flight Support Group's strong performance and commercial aerospace market rebound.

Key Takeaways

HEICO Corporation reported a 21% increase in net sales, reaching a record $569.5 million for the third quarter of fiscal 2022. Operating income also saw a significant rise of 28%, hitting a record $128.7 million. The Flight Support Group was a major driver of this growth, with its net sales increasing by 39% and operating income increasing by 68%.

Net sales increased 21% to a record $569.5 million.

Operating income increased 28% to a record $128.7 million.

Flight Support Group net sales increased 39% to a record $330.3 million.

EBITDA increased 23% to $152.7 million.

Total Revenue
$570M
Previous year: $472M
+20.7%
EPS
$0.6
Previous year: $0.56
+7.1%
Operating Margin
22.6%
Previous year: 21.4%
+5.6%
EBITDA
$153M
Previous year: $124M
+23.2%
Cash from Operations
$149M
Previous year: $124M
+20.3%
Gross Profit
$221M
Previous year: $185M
+19.6%
Cash and Equivalents
$134M
Previous year: $270M
-50.5%
Free Cash Flow
$141M
Previous year: $116M
+21.8%
Total Assets
$3.79B
Previous year: $3.46B
+9.4%

Heico

Heico

Heico Revenue by Segment

Forward Guidance

HEICO anticipates continued growth in global commercial air travel despite potential COVID-19 variants, but refrains from providing specific fiscal 2022 net sales and earnings guidance due to pandemic-related uncertainties, supply chain disruptions, and inflation.

Positive Outlook

  • Ongoing worldwide Pandemic vaccines and boosters rollout 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.
  • Very difficult to predict the Pandemic's path and effect, including factors like new variants and vaccination rates.
  • Potential supply chain disruptions.
  • Inflation.
  • Difficult to predict the Pandemic's impact on key markets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income