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Oct 31, 2023
Heico Q4 2023 Earnings Report
Reported record operating income and net sales for the fourth quarter and full fiscal year.
Key Takeaways
HEICO Corporation reported a record $936.4 million in net sales for Q4 2023, a 54% increase from Q4 2022. Operating income increased by 29% to a record $189.4 million. Net income attributable to HEICO increased by 6% to $103.4 million, or $.74 per diluted share.
Net sales increased 54% to a record $936.4 million.
Operating income increased 29% to a record $189.4 million.
Net income attributable to HEICO increased 6% to $103.4 million, or $.74 per diluted share.
EBITDA increased 36% to $234.2 million.
Heico
Heico
Heico Revenue by Segment
Revenue by Segment
Flight Support Group Revenue
CapyFin.comElectronic Tech Group Revenue
CapyFin.com Forward Guidance
HEICO anticipates net sales growth in both the Flight Support Group and Electronic Technologies Group, driven by acquisitions and product demand. Continued inflationary pressures may lead to higher material and labor costs. The company plans to integrate Wencor, develop new products, and maintain financial strength.
Positive Outlook
- Anticipate net sales growth in both the Flight Support Group and Electronic Technologies Group.
- Growth principally driven by contributions from fiscal 2023 acquisitions.
- Growth driven by demand for the majority of our products.
- Actively work on Wencor's ongoing integration into our business and operations.
- Continue commitment to developing new products and services and further market penetration.
Challenges Ahead
- Continued inflationary pressures may lead to higher material and labor costs.
- Incurred acquisition costs related to the Wencor Group acquisition, which decreased net income attributable to HEICO by approximately $13.6 million.
- Total debt to net income attributable to HEICO ratio was 6.14x as of October 31, 2023, as compared to .83x as of October 31, 2022.
- Net debt to EBITDA ratio was 3.04x and .25x as of October 31, 2023 and October 31, 2022, respectively.
- Increase in working capital principally driven by an increase in inventories to support our increased consolidated backlog.
Revenue & Expenses
Visualization of income flow from segment revenue to net income