•
Jul 31, 2023

Heico Q3 2023 Earnings Report

Reported record net sales and a 24% increase in net income for the third quarter of fiscal 2023.

Key Takeaways

HEICO Corporation reported a 27% increase in net sales, reaching a record $722.9 million for the third quarter of fiscal 2023. Net income attributable to HEICO increased by 24% to $102.0 million, or $0.74 per diluted share. The company's operating income also saw a 16% increase, reaching $149.4 million.

Net sales increased by 27% to a record $722.9 million.

Operating income increased by 16% to $149.4 million.

Net income attributable to HEICO increased by 24% to $102.0 million, or $0.74 per diluted share.

EBITDA increased by 18% to $179.8 million.

Total Revenue
$723M
Previous year: $570M
+26.9%
EPS
$0.74
Previous year: $0.6
+23.3%
Operating Margin
20.7%
Previous year: 22.6%
-8.4%
EBITDA
$180M
Previous year: $153M
+17.7%
Cash from Operations
$146M
Previous year: $149M
-2.2%
Gross Profit
$279M
Previous year: $221M
+26.2%
Cash and Equivalents
$694M
Previous year: $134M
+419.6%
Free Cash Flow
$134M
Previous year: $141M
-5.2%
Total Assets
$5.45B
Previous year: $3.79B
+44.0%

Heico

Heico

Heico Revenue by Segment

Forward Guidance

HEICO anticipates net sales growth in both the FSG and ETG, driven by demand for the majority of their products. Continued inflationary pressures and lingering supply chain disruptions stemming from the COVID-19 pandemic may lead to higher material and labor costs.

Positive Outlook

  • Anticipate net sales growth in both the FSG and ETG
  • Driven by demand for the majority of their products
  • Sharing of best practices with Wencor
  • Getting to know the Wencor businesses which share a similar entrepreneurial culture and customer focus as HEICO's businesses.
  • Remain committed to developing new products and services and further market penetration, while maintaining our financial strength and flexibility.

Challenges Ahead

  • Continued inflationary pressures
  • Lingering supply chain disruptions stemming from the COVID-19 pandemic
  • May lead to higher material and labor costs
  • Product specification costs and requirements, which could cause an increase to our costs to complete contracts
  • 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