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Oct 31, 2022

Heico Q4 2022 Earnings Report

Reported record operating income and net sales for the fourth quarter and full fiscal year.

Key Takeaways

HEICO Corporation reported a 20% increase in net sales, reaching a record $609.6 million for the fourth quarter of fiscal 2022. Operating income also increased by 27% to a record $146.5 million. The Flight Support Group and the Electronic Technologies Group both contributed record quarterly operating results.

Net sales increased 20% to a record $609.6 million.

Operating income increased 27% to a record $146.5 million.

Net income increased 13% to $97.2 million, or $.70 per diluted share.

Cash flow provided by operating activities increased 31% to $143.9 million.

Total Revenue
$610M
Previous year: $509M
+19.7%
EPS
$0.7
Previous year: $0.62
+12.9%
Operating Margin
24%
Previous year: 22.6%
+6.2%
EBITDA
$172M
Previous year: $140M
+23.4%
Cash from Operations
$144M
Previous year: $110M
+30.8%
Gross Profit
$240M
Previous year: $204M
+17.5%
Cash and Equivalents
$140M
Previous year: $108M
+28.8%
Free Cash Flow
$136M
Previous year: $104M
+31.2%
Total Assets
$4.1B
Previous year: $3.5B
+17.1%

Heico

Heico

Heico Revenue by Segment

Forward Guidance

HEICO anticipates net sales growth in both the FSG and ETG, principally driven by demand for the majority of their products. They plan to continue commitments to developing new products and services, further market penetration, and an aggressive acquisition strategy while maintaining their financial strength and flexibility.

Positive Outlook

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

Challenges Ahead

  • Recent cost inflation
  • Potential supply chain disruptions lingering from the COVID-19 global pandemic
  • May lead to higher material and labor costs
  • Decrease in defense and space products net sales
  • Increasing delays in receiving components and raw materials from some suppliers

Revenue & Expenses

Visualization of income flow from segment revenue to net income