Track market-moving stories before they get noisy

Shares of Heico Corporation (HEI - Free Report) have gained 4.1% over the past four weeks to close the last trading session at $308.64, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $391.46 indicates a potential upside of 26.8%.

The mean estimate comprises 20 short-term price targets with a standard deviation of $46.6. While the lowest estimate of $305.00 indicates a 1.2% decline from the current price level, the most optimistic analyst expects the stock to surge 59.1% to reach $491.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

But, for HEI, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why HEI Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The Zacks Consensus Estimate for the current year has increased 0.5% over the past month, as one estimate has gone higher compared to no negative revision.

Moreover, HEI currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much HEI could gain, the direction of price movement it implies does appear to be a good guide.

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Heico Corporation (HEI - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this company is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Heico is 23.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 27.6% this year, crushing the industry average, which calls for EPS growth of 19.1%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for Heico is 28.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of 24.1%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 17.1% over the past 3-5 years versus the industry average of 16.5%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Heico. The Zacks Consensus Estimate for the current year has surged 0.5% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Heico a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that Heico is a potential outperformer and a solid choice for growth investors.

Heico Corporation (HEI - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for Heico is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Heico, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for HeicoFor the fiscal year ending October 2026, this company is expected to earn $6.25 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Heico. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.4%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Heico to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Key Takeaways Astronics posted a record $780.6 million backlog and $306.2 million in second-quarter bookings.HEICO's defense backlog is rising, while Flight Support Group defense revenues grew in the upper 20% range.HEICO trades at a lower P/B ratio and has a lower debt-to-capital ratio than Astronics. Astronics (ATRO - Free Report) and HEICO Corporation (HEI - Free Report) give investors exposure to the aircraft components and systems market, although their businesses have different areas of emphasis. Astronics focuses on specialized technologies and systems used in commercial, business and military aircraft, while HEICO has a particularly strong presence in aerospace aftermarket parts, repairs and component distribution.

A key similarity between Astronics and HEICO is their exposure to the broader aerospace supply chain. Both companies provide specialized products and services that aircraft manufacturers, airlines and other operators need, but they approach the market differently. Astronics is more focused on engineered aircraft systems and technologies, while HEICO has a larger aftermarket-oriented business.

That difference makes ATRO versus HEI a potentially interesting aerospace stock comparison. Let’s compare the two companies’ fundamentals to assess their relative investment merits.

Factors Acting in Favor of ATRO StockAstronics develops and manufactures products for the aerospace and defense industries, including aircraft power systems, lighting, connectivity, inflight entertainment, interiors, structures and testing equipment. The company serves both original-equipment manufacturers and aircraft operators, giving it exposure to new aircraft production as well as retrofit and upgrade programs.

ATRO’s second-quarter 2026 results point to a strong order environment, with backlog reaching a record $780.6 million, marking the third consecutive quarter of record backlog. The company generated $306.2 million in quarterly bookings, up from $290.4 million in the first quarter, producing a 1.18 book-to-bill ratio, while trailing-12-month bookings surpassed $1.06 billion. Approximately 82% of the backlog is expected to convert into revenues over the next 12 months, providing substantial near-term revenue visibility. Test Systems also showed significant momentum, with a $44.7 million U.S. Army order initiating full-rate production of the TS-4549/T Radio Test Sets program. Management expects annual orders to remain at similar levels over the next four years.

Factors Acting in Favor of HEI StockHEICO is also deeply involved in aerospace components, but its business has a stronger emphasis on the aftermarket. Through its Flight Support Group, HEICO manufactures replacement parts, provides repair and overhaul services, and distributes aircraft components to commercial and military customers. This allows the company to benefit from the ongoing need to maintain and upgrade aircraft throughout their operating lives.

Management highlighted that orders and backlog related to defense have been increasing and expects this demand to continue over multiple years as customers replace and replenish stocks. The company also noted exposure to both legacy programs and newer defense technology platforms, including unmanned systems, which broadens its opportunity set. In the third quarter of fiscal 2026, Flight Support Group defense organic revenue growth was in the upper 20% range, while defense and aerospace were among the leading growth areas in Electronic Technologies Group.

How Do Zacks Estimates Compare for ATRO & HEI?The Zacks Consensus Estimate for Astronics’ 2026 and 2027 earnings per share (EPS) indicates an increase of 64.07% and 16.3%, respectively, year over year.
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HEICO’s fiscal 2026 and 2027 EPS implies an improvement of 27.55% and 13.92%, respectively, year over year.

Image Source: Zacks Investment Research

Valuation for ATRO & HEIATRO’s shares trade at a trailing 12-month Price/Book (P/B TTM) of 14.89X compared with HEI’s 8.43X, making HEI relatively more attractive from a valuation standpoint.

Image Source: Zacks Investment Research

Debt Position of ATRO & HEICurrently, ATRO’s total debt-to-capital ratio is 61.02, whereas HEI’s is 33.59%.

The time-to-interest-earned ratio for Astronics and HEICO is 8.5 and 9.4, respectively. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.

ATRO & HEI’s Price PerformanceIn the past three months, shares of Astronics and HEICO have lost 16.2% and 8.5%, respectively, compared with the industry’s decline of 17.7%.

Image Source: Zacks Investment Research

ATRO or HEI: Which Is a Better Choice Now?Astronics serves the aerospace and defense markets with products spanning aircraft systems, connectivity, interiors, and testing equipment, serving both manufacturers and aircraft operators. ATRO continues to see strong demand, with record backlog, solid bookings, and growing momentum in its Test Systems business, supporting strong near-term revenue visibility. HEICO has a strong aerospace aftermarket business, providing replacement parts, repair services, and aircraft components for commercial and military customers. Its growing defense backlog and demand across both established and newer technologies, including unmanned systems, are supporting continued growth opportunities.

Our choice at the moment is HEICO, given its better price performance, debt management and more attractive valuation than Astronics. HEI carries a Zacks Rank #2 (Buy), while ATRO has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Heico Corporation (HEI - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this company a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Heico is 23.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 27% this year, crushing the industry average, which calls for EPS growth of 19.3%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for Heico is 28.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of 24%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 17.1% over the past 3-5 years versus the industry average of 16.5%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Heico have been revising upward. The Zacks Consensus Estimate for the current year has surged 3.6% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Heico a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that Heico is a potential outperformer and a solid choice for growth investors.

The Zacks Aerospace-Defense Equipment industry remains supported by strategic M&A activity and resilient air-travel demand, although persistent supply-chain constraints pose risks. Recent acquisitions are expanding product offerings, capabilities and exposure to defense and aerospace markets, while rising passenger traffic is increasing aircraft utilization and supporting demand for replacement parts, avionics, engines and other components. However, higher operating costs, limited aircraft availability, labor shortages and supply-chain disruptions continue to pressure airlines and aerospace manufacturers. Some key players from this industry that investors may add to their portfolio are HEICO Corporation (HEI - Free Report) , ATI INC (ATI - Free Report) and AAR Corp. (AIR - Free Report) .

About the Industry The Zacks Aerospace-Defense Equipment industry comprises firms that manufacture various vital components for the aerospace-defense space, ranging from aerostructures, space shuttles, propulsion systems, aircraft engines, defense electronics, missile and radar systems to flight test equipment, structural adhesives, instrumentation and control systems, communication products and many more. Some of these companies also offer integrated simulation and training services to the U.S. defense force. While most revenues are generated from the production of the aforementioned components, industry players also generate revenue by providing aftermarket support and services, such as maintenance, repair and overhaul (MRO), to aerospace and defense companies.

3 Trends Shaping the Future of the Aerospace-Defense Equipment Industry Strategic M&A Activity Strengthens Industry Growth Prospects: Large companies have increasingly turned to mergers and acquisitions (M&As) to expand their product portfolios, enhance capabilities, and strengthen their competitive positions. In June 2026, HEICO acquired 80% of Cook Defence Systems, a key supplier of track systems for armored military vehicles, forming HEICO-Cook Defence. The deal expands HEICO’s defense portfolio and gives it exposure to armored-vehicle modernization and defense spending, adding another source of long-term growth. In April 2026, AAR completed the acquisition of Aircraft Reconfig Technologies from ZIM Aircraft Cabin Solutions. This adds FAA Organization Designation Authorization to AAR’s Engineering Services capabilities, which will enable AAR to issue supplemental type certificates and Parts Manufacturer Approval without depending on third parties. Such strategic consolidation can help companies expand their capabilities, diversify their business models and improve operational efficiencies. Over time, broader offerings and economies of scale could support industry expansion and contribute to sustained revenue growth.

Air Traffic View Boosts Opportunities: According to a report by the International Air Transport Association (“IATA”), global air passenger demand is expected to grow 2.1% year over year in 2026. IATA reported that global passenger demand returned to growth in July 2026, with Revenue Passenger Kilometers (RPK) increasing 0.2% year over year, following contractions in May and June. Capacity rose 0.3%, while the global passenger load factor remained high at 85.2%, indicating resilient underlying air-travel demand despite elevated fuel costs, economic uncertainty and geopolitical tensions. As passenger traffic increases, airlines fly their existing fleets more frequently. This higher utilization accelerates wear and tear on aircraft, engines and components, boosting demand for replacement parts, avionics, landing systems and other equipment.

Supply-Chain Disruption Poses Risks: According to IATA, airlines are facing higher operating costs because supply-chain problems have made spare parts more expensive and harder to obtain. Airport fees, air traffic charges and aircraft ownership costs have also increased. With new aircraft in short supply, airlines are leasing older, mid-life planes at higher rates. These older aircraft also consume more fuel, further increasing overall expenses. IATA has highlighted that limited aircraft availability and labor shortages remain key supply-side challenges, while broader disruptions continue to delay the timely production and delivery of essential systems. Per IATA, ongoing disruptions to global supply chains and operational constraints linked to the Middle East conflict are adding pressure to an already tight market, reinforcing the existing aircraft shortage. Aircraft deliveries have fallen well below the level expected if the industry had continued growing at its pre-pandemic pace, creating an estimated shortage of about 5,600 aircraft. The total order backlog reached 18,100 aircraft in May 2026, equal to almost 60% of the active fleet. The reduced pace of jet deliveries and limited availability of materials for aircraft manufacturing may compel OEMs to cut production, potentially weighing on near-term earnings and cash flow across the aerospace and defense equipment industry.

Zacks Industry Rank Reflects Bright Outlook The Zacks Aerospace-Defense Equipment industry is housed within the broader Zacks Aerospace sector. It currently carries a Zacks Industry Rank #50, which places it in the top 20% of more than 247 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates robust near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Before we present a few aerospace-defense equipment stocks that you may want to add to your portfolio, let’s take a look at the industry’s recent stock market performance and valuation picture.

Industry Beats Sector, Lags S&P 500 The Aerospace-Defense Equipment industry has underperformed the Zacks S&P 500 composite but outperformed the sector over the past year. The stocks in this industry have collectively lost 4.9% over the past year, while the Aerospace sector has declined 9.5%. The Zacks S&P 500 composite has gained 16.5% over the same time frame.

One-Year Price Performance

Industry's Current Valuation On the basis of trailing 12-month EV/Sales, which is used for valuing capital-intensive stocks like aerospace-defense equipment, the industry is currently trading at 11.45X compared with the S&P 500’s 5.6X and the sector’s 2.9X.

Over the past five years, the industry has traded as high as 15.7X, as low as 6.09X and at the median of 8.62X.

EV-Sales Ratio TTM

3 Aerospace-Defense Equipment Stocks to Buy ATI: Dallas, TX-based ATI is a diversified global specialty materials producer. ATI delivered a strong second quarter in 2026, with sales rising 11% year over year to $1.26 billion, driven by a 13% increase in aerospace & defense sales. Aerospace & defense remained central to ATI’s performance, particularly within its High Performance Materials & Components (“HPMC”) segment, where the end markets represented 93% of sales and commercial jet-engine sales grew 10% year over year, supported by strong demand and pricing. The Advanced Alloys & Solutions (“AA&S”) segment also saw significant momentum, with aerospace & defense sales increasing 34% year over year, including a 90% increase in defense sales, reflecting higher demand and pricing.

The Zacks Consensus Estimate for ATI’s 2026 sales indicates a 12.9% improvement year over year. The estimate for 2026 earnings implies 54% growth year over year. ATI currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

Price & Consensus: ATI

HEICO: Florida-based HEICO is one of the world’s leading manufacturers of FAA-approved jet engine and aircraft component replacement parts. It also manufactures various types of electronic equipment for the aviation, defense, space, medical, telecommunications and electronics industries. HEICO reported a strong third quarter of fiscal 2026, with net sales increasing 23% year over year to a record $1.41 billion, while net income rose 33% to a record $235.4 million and operating income climbed 34% to $355.2 million. The company’s aerospace and defense businesses were key contributors, with Flight Support Group (“FSG”) posting 18% sales growth, supported by 12% organic growth and contributions from recent acquisitions, while operating income increased 24%.

The Zacks Consensus Estimate for HEI’s fiscal 2026 sales indicates a 19.9% improvement year over year. The estimate for fiscal 2026 earnings implies 27.1% year-over-year growth. HEI currently has a Zacks Rank #2 (Buy).

Price & Consensus: HEI

AAR: Based in Wood Dale, IL, the company provides various products and services to the aviation and defense industries worldwide. During the fourth quarter of fiscal 2026, it reorganized its reporting structure into four operating segments: Parts Supply; Repair, Engineering, and Software; Government Solutions; and Legacy Commercial Programs. The Parts Supply segment primarily consists of aftermarket distribution of new, OEM-supplied replacement parts and sales and leasing of used serviceable engine and airframe material. The segment also distributes electronic components and assemblies to OEMs through ADI. Parts Supply accounted for nearly 45% of total sales in fiscal 2026.

The Zacks Consensus Estimate for AIR’s fiscal 2027 sales indicates an 11.6% improvement year over year. The estimate for 2026 earnings implies 17.2% growth year over year. AIR currently carries a Zacks Rank #2.

Price & Consensus: AIR

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Our proprietary system currently recommends Heico Corporation (HEI.A - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this company a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Heico is 23.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 27.6% this year, crushing the industry average, which calls for EPS growth of 19.3%.

Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Heico is 28.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of 24%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 17.1% over the past 3-5 years versus the industry average of 16.5%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Heico. The Zacks Consensus Estimate for the current year has surged 13.6% over the past month.

Bottom LineHeico has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Heico well for outperformance, so growth investors may want to bet on it.

For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Heico Corporation (HEI - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Heico Corporation is one of 76 companies in the Aerospace group. The Aerospace group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Heico Corporation is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for HEI's full-year earnings has moved 8.4% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, HEI has returned 4% so far this year. Meanwhile, the Aerospace sector has returned an average of -1.8% on a year-to-date basis. This means that Heico Corporation is performing better than its sector in terms of year-to-date returns.

Another stock in the Aerospace sector, Howmet (HWM - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 29.2%.

For Howmet, the consensus EPS estimate for the current year has increased 5.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Heico Corporation belongs to the Aerospace - Defense Equipment industry, which includes 36 individual stocks and currently sits at #39 in the Zacks Industry Rank. Stocks in this group have lost about 0.7% so far this year, so HEI is performing better this group in terms of year-to-date returns.

Howmet, however, belongs to the Aerospace - Defense industry. Currently, this 39-stock industry is ranked #150. The industry has moved -2.3% so far this year.

Investors with an interest in Aerospace stocks should continue to track Heico Corporation and Howmet. These stocks will be looking to continue their solid performance.

Tuesday, 25 August 2026 04:15 PM

Topic: 

Earnings Consolidated Quarterly Organic Net Sales Growth Reaches 14%

HOLLYWOOD, FL AND MIAMI, FL / ACCESS Newswire / August 25, 2026 / HEICO CORPORATION (NYSE:HEI.A)(NYSE:HEI) today reported an increase in net income of 33% to a record $235.4 million, or $1.67 per diluted share, in the third quarter of fiscal 2026, up from $177.3 million, or $1.26 per diluted share, in the third quarter of fiscal 2025. Net income increased 31% to a record $659.4 million, or $4.67 per diluted share, in the first nine months of fiscal 2026, up from $502.1 million, or $3.57 per diluted share, in the first nine months of fiscal 2025.

Net sales increased 23% to a record $1,413.1 million in the third quarter of fiscal 2026, up from $1,147.6 million in the third quarter of fiscal 2025. Operating income increased 34% to a record $355.2 million in the third quarter of fiscal 2026, up from $265.0 million in the third quarter of fiscal 2025. The Company's consolidated operating margin improved to 25.1% in the third quarter of fiscal 2026, up from 23.1% in the third quarter of fiscal 2025.

Net sales increased 21% to a record $3,967.3 million in the first nine months of fiscal 2026, up from $3,275.6 million in the first nine months of fiscal 2025. Operating income increased 30% to a record $965.5 million in the first nine months of fiscal 2026, up from $740.0 million in the first nine months of fiscal 2025. The Company's consolidated operating margin improved to 24.3% in the first nine months of fiscal 2026, up from 22.6% in the first nine months of fiscal 2025.

EBITDA increased 31% to $415.2 million in the third quarter of fiscal 2026, up from $316.4 million in the third quarter of fiscal 2025. EBITDA increased 28% to $1,135.5 million in the first nine months of fiscal 2026, up from $888.1 million in the first nine months of fiscal 2025. See our reconciliation of net income attributable to HEICO to EBITDA at the end of this press release.

Consolidated Results

Eric A. Mendelson and Victor H. Mendelson, HEICO's Co-Chairmen and Co-Chief Executive Officers, commented on the Company's third quarter results stating, "HEICO continued its excellent growth, with record quarterly net income, operating income and net sales supported by 14% consolidated organic net sales growth and contributions from our profitable fiscal 2026 and 2025 acquisitions.

Cash flow provided by operating activities increased 49% to $345.3 million in the third quarter of fiscal 2026, up from $231.2 million in the third quarter of fiscal 2025. We continue to forecast strong cash flow from operations for fiscal 2026.

Our total debt to net income attributable to HEICO ratio improved to 3.00x as of July 31, 2026, down from 3.14x as of October 31, 2025, and our net debt to EBITDA ratio improved to 1.57x as of July 31, 2026, down from 1.60x as of October 31, 2025. See our reconciliation of total debt to net debt at the end of this press release.

During the third quarter, we successfully completed the public offering of $550 million aggregate principal amount of 4.950% Senior Notes due August 1, 2031 and $650 million aggregate principal amount of 5.400% Senior Notes due August 1, 2036. We used the net proceeds from the offering to repay outstanding borrowings under our revolving credit facility.

For the remainder of fiscal 2026, we expect increased net sales at both the Flight Support Group and Electronic Technologies Group to continue to be supported by underlying demand for our products and contributions from recent acquisitions. We remain focused on identifying and evaluating acquisition opportunities that align with our strategic objectives. Our capital allocation strategy continues to prioritize investments in organic growth and acquisitions while preserving adequate liquidity and financial flexibility."

Flight Support Group

The Flight Support Group delivered record quarterly net sales and operating income in the third quarter of fiscal 2026, with operating income and net sales increasing 24% and 18%, respectively, as compared to the third quarter of fiscal 2025. These strong results were driven by continued organic net sales growth across all of our product lines, as well as contributions from our fiscal 2026 acquisitions.

The Flight Support Group's net sales increased 18% to a record $947.8 million in the third quarter of fiscal 2026, up from $802.7 million in the third quarter of fiscal 2025. The net sales increase resulted from strong organic growth of 12%, as well as the impact from our fiscal 2026 acquisitions. The organic net sales growth reflects increased demand across all of our product lines.

The Flight Support Group's net sales increased 18% to a record $2,697.2 million in the first nine months of fiscal 2026, up from $2,282.9 million in the first nine months of fiscal 2025. The net sales increase resulted from robust organic growth of 15%, as well as the impact from our fiscal 2026 and 2025 acquisitions. The organic net sales growth stems from increased demand across all of our product lines.

The Flight Support Group's operating income increased 24% to a record $245.3 million in the third quarter of fiscal 2026, up from $198.3 million in the third quarter of fiscal 2025. The operating income increase was principally derived from the previously mentioned net sales growth, an improved gross profit margin, and selling, general and administrative ("SG&A") expense efficiencies realized from the net sales growth. The improved gross profit margin principally reflects a more favorable product mix within our specialty products and aftermarket replacement parts product lines.

The Flight Support Group's operating income increased 25% to a record $689.1 million in the first nine months of fiscal 2026, up from $549.4 million in the first nine months of fiscal 2025. The operating income increase was driven by the previously mentioned net sales growth, an improved gross profit margin, and SG&A expense efficiencies realized from the net sales growth. The improved gross profit margin mainly reflects a more favorable product mix within our aftermarket replacement parts product line.

The Flight Support Group's operating margin improved to 25.9% in the third quarter of fiscal 2026, up from 24.7% in the third quarter of fiscal 2025. The operating margin increase arose chiefly from the previously mentioned improved gross profit margin.

The Flight Support Group's operating margin improved to 25.5% in the first nine months of fiscal 2026, up from 24.1% in the first nine months of fiscal 2025. The operating margin increase reflects the previously mentioned improved gross profit margin and decreased SG&A expenses as a percentage of net sales, primarily driven by the previously mentioned SG&A expense efficiencies.

Electronic Technologies Group

The Electronic Technologies Group's strong performance continued in the third quarter of fiscal 2026, with record operating income and net sales increasing 55% and 36%, respectively, as compared to the third quarter of fiscal 2025. These exceptional results were driven by robust organic net sales growth across most of our products, as well as contributions from our fiscal 2026 and 2025 acquisitions.

The Electronic Technologies Group's net sales increased 36% to a record $483.5 million in the third quarter of fiscal 2026, up from $355.9 million in the third quarter of fiscal 2025. The net sales increase reflects robust organic growth of 18% and the impact from our fiscal 2026 and 2025 acquisitions. The organic net sales growth is mainly attributable to increased demand for our other electronics, defense, and aerospace products.

The Electronic Technologies Group's net sales increased 28% to a record $1,313.7 million in the first nine months of fiscal 2026, up from $1,028.3 million in the first nine months of fiscal 2025. The net sales increase came from strong organic growth of 14% and the impact from our fiscal 2026 and 2025 acquisitions. The organic net sales growth is mainly attributable to increased demand for our other electronics, defense, aerospace, and medical products.

The Electronic Technologies Group's operating income increased 55% to a record $125.6 million in the third quarter of fiscal 2026, up from $81.0 million in the third quarter of fiscal 2025. The operating income increase principally reflects the previously mentioned net sales growth, SG&A expense efficiencies realized from the net sales growth, and an improved gross profit margin. The improved gross profit margin was mainly fueled by the previously mentioned higher net sales of our aerospace products.

The Electronic Technologies Group's operating income increased 36% to a record $320.6 million in the first nine months of fiscal 2026, up from $235.3 million in the first nine months of fiscal 2025. The operating income increase was predominantly propelled by the previously mentioned net sales growth, SG&A expense efficiencies realized from the net sales growth, and an improved gross profit margin. The improved gross profit margin principally reflects the previously mentioned higher net sales of our aerospace products, partially offset by a lower proportion of net sales from our space products.

The Electronic Technologies Group's operating margin improved to 26.0% in the third quarter of fiscal 2026, up from 22.8% in the third quarter of fiscal 2025. The Electronic Technologies Group's operating margin improved to 24.4% in the first nine months of fiscal 2026, up from 22.9% in the first nine months of fiscal 2025. The operating margin increase in the third quarter and first nine months of fiscal 2026 resulted from decreased SG&A expenses as a percentage of net sales, primarily driven by the previously mentioned SG&A expense efficiencies, and the previously mentioned improved gross profit margin.

Non-GAAP Financial Measures

To provide additional information about the Company's results, HEICO has discussed in this press release its EBITDA (calculated as net income attributable to HEICO adjusted for depreciation and amortization expense, net income attributable to noncontrolling interests, interest expense and income tax expense), its net debt (calculated as total debt less cash and cash equivalents), and its net debt to EBITDA ratio (calculated as net debt divided by EBITDA), which are not prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").

These non-GAAP measures are included to supplement the Company's financial information presented in accordance with GAAP and because the Company uses such measures to monitor and evaluate the performance of its business and believes the presentation of these measures enhances an investor's ability to analyze trends in the Company's business and to evaluate the Company's performance relative to other companies in its industry. However, these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for analysis of the Company's financial results as reported under GAAP.

These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. These measures should only be used to evaluate the Company's results of operations in conjunction with their corresponding GAAP measures. Pursuant to the requirements of Regulation G of the Securities Exchange Act of 1934, the Company has provided a reconciliation of these non-GAAP measures in the last table included in this press release.

(NOTE: HEICO has two classes of common stock traded on the NYSE. Both classes, the Class A Common Stock (HEI.A) and the Common Stock (HEI), are virtually identical in all economic respects. The only difference between the share classes is the voting rights. The Class A Common Stock (HEI.A) carries 1/10 vote per share and the Common Stock (HEI) carries one vote per share.)

There are currently approximately 84.5 million shares of HEICO's Class A Common Stock (HEI.A) outstanding and 55.2 million shares of HEICO's Common Stock (HEI) outstanding. The stock symbols for HEICO's two classes of common stock on most websites are HEI.A and HEI. However, some websites change HEICO's Class A Common Stock trading symbol (HEI.A) to HEI/A or HEIa.

As previously announced, HEICO will hold a conference call on Wednesday, August 26, 2026 at 9:00 a.m. Eastern Daylight Time to discuss its third quarter results. Individuals wishing to participate in the conference call should dial: US and Canada (800) 330-6710, International (646) 769-9200, wait for the conference operator and provide the operator with the Conference ID 2905092. A digital replay will be available two hours after the completion of the conference for 14 days. To access the replay, please visit our website at https://www.heico.com under the Investors section for details.

HEICO Corporation is engaged primarily in the design, production, servicing and distribution of products and services to certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, Florida-based Flight Support Group and its Miami, Florida-based Electronic Technologies Group. HEICO's customers include a majority of the world's airlines and overhaul shops, as well as numerous defense and space contractors and military agencies worldwide, in addition to medical, telecommunications and electronics equipment manufacturers. For more information about HEICO, please visit our website at https://www.heico.com.

Certain statements in this press release constitute forward-looking statements, which are subject to risks, uncertainties and contingencies. HEICO's actual results may differ materially from those expressed in or implied by those forward-looking statements. Factors that could cause such differences include, among others: the severity, magnitude and duration of public health threats; our liquidity and the amount and timing of cash generation; 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 in 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; our ability to introduce new products and services at profitable pricing levels, which could reduce our sales or sales growth; product development or manufacturing difficulties, which could increase our product development and manufacturing costs and delay sales; cybersecurity events or other disruptions of our information technology systems could adversely affect our business; and our ability to make acquisitions, including obtaining any applicable domestic and/or foreign governmental approvals, and achieve operating synergies from acquired businesses; customer credit risk; interest, foreign currency exchange and income tax rates; and 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. Parties receiving this material are encouraged to review all of HEICO's filings with the Securities and Exchange Commission including, but not limited to filings on Form 10-K, Form 10-Q and Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

HEICO CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)

Three Months Ended July 31,

2026

2025

Net sales

$

1,413,050

$

1,147,591

Cost of sales

832,063

690,434

Selling, general and administrative expenses

225,790

192,138

Operating income

355,197

265,019

Interest expense

(35,904

)

(31,701

)

Other income

1,285

1,662

Income before income taxes and noncontrolling interests

320,578

234,980

Income tax expense

66,100

44,300

Net income from consolidated operations

254,478

190,680

Less: Net income attributable to noncontrolling interests

19,039

13,339

Net income attributable to HEICO

$

235,439

$

177,341

Net income per share attributable to HEICO shareholders:

Basic

$

1.69

$

1.27

Diluted

$

1.67

$

1.26

Weighted average number of common shares outstanding:

Basic

139,702

139,135

Diluted

141,269

140,950

Three Months Ended July 31,

2026

2025

Operating segment information:

Net sales:

Flight Support Group

$

947,803

$

802,661

Electronic Technologies Group

483,487

355,863

Intersegment sales

(18,240

)

(10,933

)

$

1,413,050

$

1,147,591

Operating income:

Flight Support Group

$

245,299

$

198,326

Electronic Technologies Group

125,565

80,998

Other, primarily corporate

(15,667

)

(14,305

)

$

355,197

$

265,019

Depreciation and amortization:

Flight Support Group

$

32,457

$

28,581

Electronic Technologies Group

26,634

20,297

Other, primarily corporate

(348

)

889

$

58,743

(c)

$

49,767

(c)

HEICO CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)

Nine Months Ended July 31,

2026

2025

Net sales

$

3,967,345

$

3,275,633

Cost of sales

2,361,869

1,975,010

Selling, general and administrative expenses

639,943

560,647

Operating income

965,533

739,976

Interest expense

(99,551

)

(97,024

)

Other income

3,583

3,217

Income before income taxes and noncontrolling interests

869,565

646,169

Income tax expense

160,000

(a)

103,400

(b)

Net income from consolidated operations

709,565

542,769

Less: Net income attributable to noncontrolling interests

50,137

40,680

Net income attributable to HEICO

$

659,428

(a)

$

502,089

(b)

Net income per share attributable to HEICO shareholders:

Basic

$

4.73

(a)

$

3.61

(b)

Diluted

$

4.67

(a)

$

3.57

(b)

Weighted average number of common shares outstanding:

Basic

139,544

138,993

Diluted

141,122

140,678

Nine Months Ended July 31,

2026

2025

Operating segment information:

Net sales:

Flight Support Group

$

2,697,230

$

2,282,905

Electronic Technologies Group

1,313,694

1,028,345

Intersegment sales

(43,579

)

(35,617

)

$

3,967,345

$

3,275,633

Operating income:

Flight Support Group

$

689,096

$

549,422

Electronic Technologies Group

320,620

235,334

Other, primarily corporate

(44,183

)

(44,780

)

$

965,533

$

739,976

Depreciation and amortization:

Flight Support Group

$

90,223

$

82,862

Electronic Technologies Group

74,834

59,334

Other, primarily corporate

1,328

2,673

$

166,385

(c)

$

144,869

(c)

HEICO CORPORATION
Footnotes to Condensed Consolidated Statements of Operations (Unaudited)

(a)

During the first quarter of fiscal 2026, the Company recognized a $22.3 million discrete tax benefit from stock option exercises, which, net of noncontrolling interests, increased net income attributable to HEICO by $21.8 million, or $.16 per basic share and $.15 per diluted share.

(b)

During the first quarter of fiscal 2025, the Company recognized a $27.2 million discrete tax benefit from stock option exercises, which, net of noncontrolling interests, increased net income attributable to HEICO by $26.5 million, or $.19 per basic and diluted share.

(c)

Depreciation and amortization information on the Company's two operating segments for the three and nine months ended July 31, 2026 and 2025, is as follows (in thousands):

Three Months Ended July 31,

Nine Months Ended July 31,

2026

2025

2026

2025

Depreciation:

Flight Support Group

$

7,732

$

7,096

$

21,770

$

20,283

Electronic Technologies Group

7,514

6,556

21,599

18,586

Other, primarily corporate

437

497

1,328

1,496

$

15,683

$

14,149

$

44,697

$

40,365

Amortization:

Flight Support Group

$

24,725

$

21,485

$

68,453

$

62,579

Electronic Technologies Group

19,120

13,741

53,235

40,748

Other, primarily corporate *

(785

)

392

-

1,177

$

43,060

$

35,618

$

121,688

$

104,504

* Corporate amortization expense for the three months ended July 31, 2026 reflects a year-to-date reclassification of debt issuance cost amortization associated with the Company's revolving credit facility from SG&A expenses to interest expense.

HEICO CORPORATION
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)

July 31, 2026

October 31, 2025

Cash and cash equivalents

$

240,959

$

217,781

Accounts receivable, net

736,335

637,615

Contract assets

134,443

119,257

Inventories, net

1,447,885

1,295,336

Prepaid expenses and other current assets

165,869

86,377

Total current assets

2,725,491

2,356,366

Property, plant and equipment, net

478,326

431,710

Goodwill

4,356,143

3,661,624

Intangible assets, net

1,776,942

1,471,440

Other assets

599,709

579,294

Total assets

$

9,936,611

$

8,500,434

Current maturities of long-term debt

$

3,513

$

3,358

Other current liabilities

999,566

828,646

Total current liabilities

1,003,079

832,004

Long-term debt, net of current maturities

2,537,660

2,164,587

Deferred income taxes

181,511

107,186

Other long-term liabilities

571,536

550,124

Total liabilities

4,293,786

3,653,901

Redeemable noncontrolling interests

617,893

467,358

Shareholders' equity

5,024,932

4,379,175

Total liabilities and equity

$

9,936,611

$

8,500,434

HEICO CORPORATION
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)

Nine Months Ended July 31,

2026

2025

Operating Activities:

Net income from consolidated operations

$

709,565

$

542,769

Depreciation and amortization

166,385

144,869

Share-based compensation expense

34,439

18,346

Employer contributions to HEICO Savings and Investment Plan

17,892

14,186

Increase in accrued contingent consideration, net

7,973

8,974

Deferred income tax provision (benefit)

2,755

(28,789

)

Payment of contingent consideration

-

(2,190

)

Increase in accounts receivable

(58,724

)

(36,063

)

Increase in contract assets

(8,337

)

(20,305

)

Increase in inventories

(78,368

)

(60,157

)

Increase in current liabilities, net

24,533

13,147

Other

(2,207

)

44,153

Net cash provided by operating activities

815,906

638,940

Investing Activities:

Acquisitions, net of cash acquired

(1,018,164

)

(629,928

)

Capital expenditures

(54,104

)

(46,038

)

Investments related to HEICO Leadership Compensation Plan

(19,397

)

(21,689

)

Proceeds from corporate-owned life insurance policy withdrawals

22,654

-

Other

(3,858

)

(39

)

Net cash used in investing activities

(1,072,869

)

(697,694

)

Financing Activities:

Proceeds from issuance of senior unsecured notes

1,191,506

-

(Payments) borrowings on revolving credit facility, net

(815,000

)

220,000

Cash dividends paid

(34,889

)

(31,968

)

Acquisitions of noncontrolling interests

(29,345

)

(5,773

)

Distributions to noncontrolling interests

(25,820

)

(27,248

)

Redemptions of common stock related to stock option exercises

(4,924

)

(1,979

)

Debt issuance costs

(4,582

)

-

Payment of contingent consideration

-

(5,954

)

Proceeds from stock option exercises

5,294

11,680

Other

(2,234

)

(3,509

)

Net cash provided by financing activities

280,006

155,249

Effect of exchange rate changes on cash

135

3,290

Net increase in cash and cash equivalents

23,178

99,785

Cash and cash equivalents at beginning of year

217,781

162,103

Cash and cash equivalents at end of period

$

240,959

$

261,888

HEICO CORPORATION
Non-GAAP Financial Measures (Unaudited)
(in thousands, except ratios)

Three Months Ended July 31,

EBITDA Calculation

2026

2025

Net income attributable to HEICO

$

235,439

$

177,341

Plus: Depreciation and amortization

58,743

49,767

Plus: Net income attributable to noncontrolling interests

19,039

13,339

Plus: Interest expense

35,904

31,701

Plus: Income tax expense

66,100

44,300

EBITDA (a)

$

415,225

$

316,448

Nine Months Ended July 31,

EBITDA Calculation

2026

2025

Net income attributable to HEICO

$

659,428

$

502,089

Plus: Depreciation and amortization

166,385

144,869

Plus: Net income attributable to noncontrolling interests

50,137

40,680

Plus: Interest expense

99,551

97,024

Plus: Income tax expense

160,000

103,400

EBITDA (a)

$

1,135,501

$

888,062

Trailing Twelve Months Ended

EBITDA Calculation

July 31, 2026

October 31, 2025

Net income attributable to HEICO

$

847,724

$

690,385

Plus: Depreciation and amortization

217,592

196,076

Plus: Net income attributable to noncontrolling interests

64,626

55,169

Plus: Interest expense

132,404

129,877

Plus: Income tax expense

204,600

148,000

EBITDA (a)

$

1,466,946

$

1,219,507

Net Debt Calculation

July 31, 2026

October 31, 2025

Total debt

$

2,541,173

$

2,167,945

Less: Cash and cash equivalents

(240,959

)

(217,781

)

Net debt (a)

$

2,300,214

$

1,950,164

Total debt

$

2,541,173

$

2,167,945

Net income attributable to HEICO (trailing twelve months)

$

847,724

$

690,385

Total debt to net income attributable to HEICO ratio

3.00

3.14

Net debt

$

2,300,214

$

1,950,164

EBITDA (trailing twelve months)

$

1,466,946

$

1,219,507

Net debt to EBITDA ratio (a)

1.57

1.60

(a) See the "Non-GAAP Financial Measures" section of this press release.

Contact:

Victor H. Mendelson (305) 374-1745 ext. 7590
Carlos L. Macau, Jr. (954) 987-4000 ext. 7570

SOURCE: HEICO Corporation

Heico Corporation (HEI - Free Report) reported $1.41 billion in revenue for the quarter ended July 2026, representing a year-over-year increase of 23.1%. EPS of $1.67 for the same period compares to $1.26 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.35 billion, representing a surprise of +4.89%. The company delivered an EPS surprise of +10.6%, with the consensus EPS estimate being $1.51.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Heico performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- Electronic Technologies Group (ETG): $483.49 million compared to the $422.03 million average estimate based on two analysts. The reported number represents a change of +35.9% year over year.Net Sales- Intersegment sales: $-18.24 million versus the two-analyst average estimate of $-12.75 million. The reported number represents a year-over-year change of +66.8%.Net Sales- Flight Support Group (FSG): $947.8 million compared to the $931.62 million average estimate based on two analysts. The reported number represents a change of +18.1% year over year.View all Key Company Metrics for Heico here>>>

Shares of Heico have returned -1.3% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

VPT's VXR and VPT Series DC-DC Converters, EMI Filters, and Accessories Now Available on DigiKey PR Newswire

BLACKSBURG, Va., Aug. 26, 2026

, /PRNewswire/ -- VPT, Inc. (VPT®), a HEICO company (NYSE: HEI.A) (NYSE: HEI) and leading provider of high-reliability power conversion solutions for military, avionics, and space applications, announces the availability of its most popular products from the VPT and VXR Series, including DC-DC converters, EMI filters, and accessories, on DigiKey for customers in the United States.

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The recently released VXR125-27000S, the first 270 V input DC-DC converter in the VXR Series is also available through DigiKey, expanding access to VPT's growing portfolio of high-reliability power solutions.

The VPT Series is intended for harsh environments including severe vibration, shock, and temperature cycling. This Hi‑Rel series is designed for extreme temperatures in critical applications, delivering reliable performance from -55 °C to +100 °C.

"We are pleased to partner with DigiKey as an authorized distributor and additional procurement channel for our customers," said Trevor, Vice President of North American Sales. "Many organizations rely on DigiKey for component sourcing, and this partnership provides a convenient way to access VPT's high-reliability power products through a platform they already use."

About VPT and HEICO

VPT, Inc., part of the HEICO Electronic Technologies Group, is a global provider of innovative DC-DC power converters, EMI filters, and custom engineering services for avionics, military, space, and industrial applications. Every day, organizations like NASA, ESA, Lockheed Martin, Boeing, BAE Systems, Thales and many more depend on high-reliability solutions from VPT to power critical systems. For more information about VPT, please visit www.vptpower.com.

HEICO Corporation (NYSE: HEI.A) (NYSE: HEI) is engaged primarily in niche segments of the aviation, defense, space and electronics industries through its Hollywood, FL based HEICO Aerospace Holdings Corp. subsidiary and its Miami, FL-based HEICO Electronic Technologies Corp. subsidiary. For more information about HEICO, please visit www.heico.com.

Products described in this communication are subject to all export license restrictions and regulations, which may include but are not limited to ITAR (International Traffic in Arms Regulations) and the Export Administration and Foreign Assets Control Regulations. Further restrictions may apply. The information provided is considered accurate at time of publication, errors or omissions excepted. VPT, Inc. reserves the right to make changes to products or services without prior notification and advises customers to obtain the latest version of all relevant technical information from VPT to verify data prior to placing orders. VPT, its logo and tagline are registered trademarks in the U.S. Patent and Trademark Office. All other names, product names and trade names may be trademarks or registered trademarks of their respective holders.

View original content to download multimedia:https://www.prnewswire.com/news-releases/vpts-vxr-and-vpt-series-dc-dc-converters-emi-filters-and-accessories-now-available-on-digikey-302856815.html

SOURCE VPT, Inc.

3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face BottlenecksHeico NYSE: HEI reported record fiscal third-quarter results, with consolidated net income, operating income and sales rising sharply from a year earlier as demand remained strong across its aerospace, defense, electronics and industrial technology markets.

Net income for the quarter ended July 31 increased 33% to $235.4 million, or $1.67 per diluted share, from $177.3 million, or $1.26 per diluted share, in the prior-year period. Operating income rose 34% to $355.2 million, while net sales climbed 23% to a record $1.41 billion.

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3 Crucial Aerospace Component Makers That Analysts Love“We are immensely proud of our third quarter results, which shows continued margin expansion, robust organic growth, and strong cash generation,” Co-Chairman and Co-Chief Executive Officer Eric Mendelson said on the company’s earnings call.

Both Operating Groups Set Sales and Profit Records The Flight Support Group, which serves commercial aviation, defense and other markets, reported an 18% increase in net sales to a record $947.8 million. Organic sales growth was 12%, driven by increased demand across all product lines, according to Victor Mendelson, the company’s other Co-Chairman and Co-CEO.

End the Year Strong With These 3 Comeback ChampionsFlight Support Group operating income rose 24% to $245.3 million. Its operating margin improved to 25.9% from 24.7% a year earlier, aided by a more favorable mix in specialty products and aftermarket replacement parts, as well as selling, general and administrative expense efficiencies tied to higher sales.

Eric Mendelson said Flight Support’s parts and distribution business posted 15% organic growth, while specialty products grew 14% and component repair increased 5%. He said component-repair revenue growth was affected both by supply-chain constraints and by the use of alternative parts and repairs that can reduce revenue while improving profitability for both customers and the company.

The Electronic Technologies Group posted a 36% sales increase to a record $483.5 million, including 18% organic growth. Operating income increased 55% to $125.6 million, while the group’s operating margin expanded to 26% from 22.8%.

Victor Mendelson attributed Electronic Technologies’ performance to higher demand for electronics, defense and aerospace products, contributions from acquisitions, improved gross margin from aerospace sales, and lower SG&A expenses as a percentage of sales.

Management said growth was broad-based. Victor Mendelson identified industrial technology as the fastest-growing market by percentage, while describing defense and commercial aerospace demand as “extremely strong.” He said the company had record backlog in Electronic Technologies, with customers requesting accelerated deliveries in industrial technology, defense and commercial aviation markets.

Defense, Space and Industrial Opportunities Management said defense growth was particularly strong. Eric Mendelson said Flight Support Group defense revenue organic growth was in the upper 20% range, driven largely by specialty products. The company also cited opportunities in missile and missile-defense programs, drones, commercial and defense space, industrial gas turbines and data-center-related demand.

Victor Mendelson said some customers have asked the company to prepare for substantially higher production volumes on missile-related programs, with requests ranging from doubled output to as much as 10 times current production in some instances. He added that HEICO is seeing demand associated with artificial intelligence and data-center construction through products made by several subsidiaries.

The company also said it sees potential opportunity from proposed right-to-repair and build-to-print initiatives affecting defense procurement. Eric Mendelson said HEICO’s operating businesses are monitoring developments and could be positioned to help the government reduce costs, though he did not provide specific projections.

Management cautioned that supply-chain constraints continue to affect some operations. Eric Mendelson said component repair businesses can be delayed when a repair cannot be completed because a single required part is unavailable. While some earlier supply issues have improved, he said other shortages have emerged and the situation remains a “major headache” for the industry.

Cash Generation, Debt Refinancing and Acquisitions Cash flow from operating activities increased 49% to $345.3 million during the quarter, equal to nearly 150% of net income, according to Eric Mendelson. Consolidated EBITDA increased 31% to $415.2 million, and net debt to EBITDA improved to 1.57 times as of July 31 from 1.6 times at the end of fiscal 2025.

During the quarter, HEICO issued $1.2 billion of senior unsecured notes and used the proceeds to repay borrowings under its revolving credit facility. The company also extended the revolver’s maturity by three years to June 2031 and increased committed capacity to $2.2 billion. The facility includes an accordion feature that could raise capacity to $3 billion through additional lender commitments.

In June, the company completed two acquisitions:

Flight Support Group, through an 80%-owned subsidiary, acquired Cook Defence Systems Limited, William Cook Stanhope Limited and William Cook Intermodal Limited. Collectively known as Cook Defence, the businesses design and manufacture track systems, mobility solutions and armored steel components for military fighting vehicles. Electronic Technologies Group subsidiary Exxelia acquired a 90% interest in CalRamic Technologies LLC, a producer of high-voltage ceramic capacitors for high-reliability aerospace, defense and industrial applications. Management said both acquisitions are expected to be accretive to earnings within one year of closing. Eric Mendelson said the company’s acquisition pipeline remains “incredibly full,” encompassing potential transactions of varying sizes. The company said it remains focused on disciplined deals that meet its strategic and financial criteria.

Outlook For the remainder of fiscal 2026, HEICO expects net sales in both operating groups to continue benefiting from underlying product demand and recent acquisitions. Chief Financial Officer Carlos Macau said the company continues to expect segment GAAP operating margins of 22% to 24% for the full year, equivalent to roughly 26% to 28% on an EBITA basis, while noting that Electronic Technologies margins can be sensitive to quarterly sales mix.

Macau said working capital should continue to use some cash in the fourth quarter as the company builds inventory to support backlog and customer demand. He also noted that fourth-quarter operating cash flow is expected to include a $70 million to $75 million payment to the estate of HEICO’s former chairman and CEO.

Victor Mendelson said the company will continue prioritizing investments in organic growth and acquisitions while maintaining liquidity and financial flexibility.

About Heico (NYSE:HEI)HEICO Corporation is an aerospace, defense and electronics company that designs, manufactures, and sells a range of products and provides repair and aftermarket services. Headquartered in Hollywood, Florida, HEICO supplies replacement components, repair services and engineered systems for commercial and business aviation, military and space markets as well as for selected industrial and medical customers. The company's offerings are focused on sustaining and improving the reliability and availability of complex equipment across its end markets.

HEICO operates through two principal business areas.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways HEICO sees broad demand across industrial tech, defense and commercial aviation, with record backlog.HEICO keeps ETG's full-year GAAP operating-margin outlook at 22%-24%, citing product-mix sensitivity.HEICO has nearly $3B in potential revolver capacity as its acquisition pipeline stays very full. HEICO Corporation (HEI - Free Report) used its fiscal third-quarter earnings call to emphasize broad demand, record backlog and additional acquisition capacity, while maintaining a measured stance on near-term margin expectations.

Earnings of $1.67 topped the Zacks Consensus Estimate of $1.51, while revenues of $1.41 billion exceeded the $1.35 billion estimate. Management kept the focus on demand durability, cash generation and disciplined growth.

HEI Sees Demand Staying Broad-BasedCo-CEO, co-president and co-chairman Victor Mendelson said that demand strength extended across industrial technology, defense and commercial aviation. Electronic Technologies Group bookings were strong, with record backlog including acquisitions.

Victor Mendelson added that customers across several markets are asking HEICO to expedite deliveries, while follow-on orders continue to replenish backlog rather than create obvious gaps later.

For the remainder of fiscal 2026, management expects higher sales at both Flight Support Group and Electronic Technologies Group, supported by underlying demand and recent acquisitions.

HEICO Keeps a Lid on Margin ExpectationsExecutive vice president, CFO and treasurer Carlos Macau maintained ETG's full-year GAAP operating-margin expectation of 22% to 24%, equivalent to roughly 26% to 28% on an EBITDA basis.

A Goldman Sachs analyst pressed management on whether recent ETG margins above that range reflected durable efficiencies. Macau acknowledged SG&A leverage but emphasized the segment's sensitivity to product mix.

Victor Mendelson said that third-quarter cash margins before acquisition-related amortization reached about 28.5% in FSG and 29.9% in ETG, underscoring management's continued focus on cash economics.

HEI Expands Capacity for More AcquisitionsCo-CEO, co-president and co-chairman Eric Mendelson described the acquisition pipeline as very full across small, medium and large opportunities. He said that Wencor's performance increased confidence in pursuing larger transactions.

Macau said that HEICO now has close to $3 billion of potential revolving-credit capacity, including an accordion feature, after issuing $1.2 billion of senior unsecured notes and amending its credit facility.

The company also completed Cook Defence and CalRamic acquisitions during the quarter. Eric Mendelson said both are expected to be accretive within the year following acquisition.

HEICO Sees Defense and Industrial Tech StrengthA Jefferies analyst asked for detail on FSG organic growth. Eric Mendelson said that parts and distribution grew 15%, specialty products 14% and component repair 5%, with defense driving specialty-products strength.

He said that defense organic growth within FSG was in the upper 20s. Victor Mendelson also cited missile-related programs where customers have requested production increases ranging from multiples to as much as 10 times.

Victor Mendelson said that industrial technology is benefiting from AI and data-center construction, while defense, aerospace, drones and space are also contributing. Management framed the opportunity as diversified rather than dependent on one theme.

HEI Flags Supply-Chain and Cash-Flow FrictionA UBS analyst asked whether repair-related supply constraints were improving. Eric Mendelson said that conditions were broadly consistent, with some prior shortages resolved but new bottlenecks emerging.

Macau mentioned that greater use of HEICO PMA replacement parts can reduce reported repair revenue because customers avoid higher-priced OEM components, while improving profitability on the work.

On cash flow, Macau expects working capital to remain a use of cash in the fourth quarter as inventory supports backlog. He also flagged a $70 million to $75 million operating-cash-flow payment to a former chairman and CEO's estate.

HEICO Stays Focused on Controlled GrowthVictor Mendelson closed with a continued emphasis on organic investment, acquisitions and financial flexibility. He said that acquisition activity remains robust, but transactions must satisfy HEICO's strategic and financial criteria.

Management's overall posture remained confident on demand while cautious about raising margin expectations. The stated priority is steady, controlled growth rather than maximizing short-term expansion.

HEI's Zacks Signals Stay MixedHEI carries a Zacks Rank #2 (Buy) at present. Its Growth Score of B is favorable under the Style Scores framework, while the Value Score of F, Momentum Score of C and VGM Score of D provide a less uniformly supportive style profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Style Score is designed to complement the Zacks Rank, with A and B considered the stronger grades. The Zacks Rank can change as analysts revise earnings estimates following the just-reported results.

Alpine Woods Capital Investors LLC bought a new position in shares of Heico Corporation (NYSE: HEI) during the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 8,953 shares of the aerospace company's stock, valued at approximately $3,189,000. A

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Heico Corporation (HEI - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

While there are numerous reasons why the stock of this company is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Heico is 22.4%, investors should actually focus on the projected growth. The company's EPS is expected to grow 21.4% this year, crushing the industry average, which calls for EPS growth of 18.8%.

Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Heico is 28.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of 24.2%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 17.1% over the past 3-5 years versus the industry average of 16.5%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Heico. The Zacks Consensus Estimate for the current year has surged 1.2% over the past month.

Bottom LineHeico has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that Heico is a potential outperformer and a solid choice for growth investors.

HONOLULU--(BUSINESS WIRE)--Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported net income for the second quarter of 2026 of $123 million, or $0.71 per share, compared to net income of $26 million, or $0.15 per share in the second quarter of 2025. The quarter’s results include the impact of remeasuring the remaining Maui wildfire settlement liability to present value after the settlement agreement was finalized in April, resulting in the remaining payment obligations becoming fixed under contract. Excluding Maui wildfire-related items and expenses taken in connection with the review of strategic options for Pacific Current, Core net income was $22 million, or $0.13 per share, compared to $35 million, or $0.20 per share in 2025.

“In June we filed our annual action plan update to our IGP, laying out immediate actions necessary to meet customers’ growing energy needs while improving reliability, resilience and affordability. These actions include using competitive procurements for all types of generation to attract the lowest pricing for customers, and on July 17 we submitted our IGP Request for Proposals to the PUC. We are seeking to procure nearly 1,650 gigawatt-hours of variable renewable energy, 465 megawatts of grid forming resources and 111 megawatts of firm generating capacity. The proposed procurement is one of our largest ever, and would help us build a portfolio that meets the requirements of reliability and lower carbon emissions at the least cost to customers,” said Scott Seu, HEI president and CEO.

“We’ve also continued progressing our Wildfire Mitigation Plan implementation, with the PUC fully approving our Wildfire Mitigation Plan costs, which we plan to securitize as we prioritize customer affordability. Our positive credit ratings trajectory has continued as another rating agency upgraded us in recent months, acknowledging the progress we’ve made reducing wildfire risk in our service territories. Stronger credit ratings ultimately lower our cost of borrowing, which directly improves customer affordability. Moving forward, we’ll continue to focus on making the investments outlined in our Wildfire Mitigation Plan, while operating efficiently and maintaining financial strength,” said Seu.

HAWAIIAN ELECTRIC COMPANY (HAWAIIAN ELECTRIC) EARNINGS

Hawaiian Electric’s net income for the second quarter of 2026 was $138 million compared to net income of $39 million in the second quarter of 2025, with the increase primarily driven by the following pre-tax variances (among others):

$154 million from remeasurement of the remaining settlement liability to present value (as the remaining settlement liability was adjusted from $1.44 billion to $1.30 billion and recognized on the income statement as a reduction to expense of $154 million); $9 million of insurance recoveries recognized as an adjustment to the tort-related legal claims; $8 million in higher revenues, primarily from the annual revenue adjustment mechanism; and $1 million in higher interest income. These items were partially offset by (among others):

$23 million in higher interest expense, which includes $18 million of accretion expense related to remeasuring the remaining settlement liability to present value; $9 million in higher O&M (driven by higher generation, transmission and distribution costs, higher labor and employee benefits costs and higher other general and administrative costs partially offset by lower WMP expenses); and $2 million in higher depreciation expense. Hawaiian Electric’s Core net income for the second quarter was $33 million compared to $42 million in 2025, with the decrease primarily driven by higher interest expense and higher O&M.

UTILITY OUTLOOK AND GUIDANCE

Hawaiian Electric continues to expect 2026 adjusted O&M excluding pension3, to significantly outpace inflation as we progress through a transitional year ahead of a 2027 rate rebasing. This is due to the following factors: higher insurance premiums, primarily reflecting the deferral treatment of wildfire insurance premiums prior to 2026; storm response expenses related to severe weather in February and March; higher vegetation management expenses; higher overhauls and station maintenance expenses as the utility prioritizes reliability; higher IT-related costs to improve cyber defenses; and higher labor and benefits costs. In addition, the maximum penalty of ~$3.7 million (pre-tax) is expected under the Fuel Cost Risk Sharing mechanism, which is recorded as a reduction of fuel revenue. Additionally, the remeasurement of the remaining wildfire settlement liability in the second quarter reduced the liability to its present value and resulted in a non-cash benefit in the quarter. This benefit will be offset over time by future interest accretion (expense) as the liability increases to the full settlement amount when payments become due. Hawaiian Electric’s proposed rate rebasing and proposed modifications to the PBR framework are intended to address many of the higher O&M costs, such as increased insurance premiums. Additionally, the Company is in the process of reprioritizing work to mitigate expense headwinds, while managing expenses to operate as efficiently as possible.

HOLDING AND OTHER COMPANIES

The holding and other companies’ net loss was $15 million in the second quarter of 2026 compared to $13 million in the second quarter of 2025. The higher net loss for the quarter was primarily driven by lower interest income due to the lower cash balance following the first wildfire settlement payment made in April, partially offset by a lower loss related to the ongoing review of strategic options for Pacific Current. Core net loss for the quarter was $10 million compared to $7 million in the same quarter of 2025, primarily due to lower interest income.

EARNINGS RELEASE, WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS

HEI will conduct a webcast and conference call to review its second quarter 2026 consolidated financial results today at 10:30 a.m. Hawaii time (4:30 p.m. Eastern).

To listen to the conference call, dial 1-888-660-6377 (U.S.) or 1-929-203-0797 (international) and enter passcode 2393042. Parties may also access presentation materials (which include reconciliation of non-GAAP measures) and/or listen to the conference call by visiting the conference call link on HEI’s website at www.hei.com under “Investor Relations,” sub-heading “News and Events — Events and Presentations.”

A replay will be available online and via phone. The online replay will be available on HEI’s website about two hours after the event. The audio replay will also be available about two hours after the event through August 14, 2026. To access the audio replay, dial 1-800-770-2030 (U.S.) or 1-647-362-9199 (international) and enter passcode 2393042.

HEI and Hawaiian Electric Company, Inc. (Hawaiian Electric) intend to continue to use HEI’s website, www.hei.com, as a means of disclosing additional information; such disclosures will be included in the Investor Relations section of the website. Accordingly, investors should routinely monitor the Investor Relations section of HEI’s website, in addition to following HEI’s and Hawaiian Electric’s press releases, HEI’s and Hawaiian Electric’s Securities and Exchange Commission (SEC) filings and HEI’s public conference calls and webcasts. Investors may sign up to receive e-mail alerts via the “Investor Relations” section of the website. The information on HEI’s website is not incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings unless, and except to the extent, specifically incorporated by reference.

Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at https://hpuc.my.site.com/cdms/s/ to review documents filed with, and issued by, the PUC. No information on the PUC website is incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings.

NON-GAAP MEASURES

Measures described as “Core” are non-GAAP measures which exclude Maui wildfire-related items, and expenses taken in connection with HEI’s ongoing review of strategic options for Pacific Current. “Adjusted O&M excluding pension” is a non-GAAP measure which excludes pension nonservice retirement benefits and net income neutral items (consisting of O&M covered by surcharges or covered by third parties). See “Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures” and the related GAAP reconciliations at the end of this release.

FORWARD LOOKING STATEMENTS

This release may contain “forward-looking statements,” which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates” or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI and its subsidiaries, the performance of the industries in which they do business and economic, political and market factors, among other things. These forward-looking statements are not guarantees of future performance.

Forward-looking statements in this release should be read in conjunction with the “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” discussions (which are incorporated by reference herein) set forth in HEI’s Annual Report on Form 10-K for the year ended December 31, 2025 and HEI’s other SEC periodic and current reports and other filings that discuss important factors that could cause HEI’s results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, Hawaiian Electric, and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

ABOUT HEI

HEI’s electric utility, Hawaiian Electric, supplies power to approximately 95% of Hawaii’s population and is undertaking an ambitious effort to decarbonize its operations and the broader state economy, and modernize and harden the grid to ensure public safety, reliability and resilience. For more information, visit www.hei.com.

  Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME DATA

(Unaudited)

  Three months ended June 30

Six months ended June 30

(in thousands, except per share amounts)

2026

2025

2026

2025

Revenues

Electric utility

$

936,864

$

742,482

$

1,680,904

$

1,480,848

Other

2,839

3,910

5,246

9,614

Total revenues

939,703

746,392

1,686,150

1,490,462

Expenses

Electric utility (includes $154 million benefit for the tort settlement remeasurement)

718,300

677,938

1,399,807

1,340,367

Other

17,189

14,707

28,752

33,928

Total expenses

735,489

692,645

1,428,559

1,374,295

Operating income (loss)

Electric utility

218,564

64,544

281,097

140,481

Other

(14,350

)

(10,797

)

(23,506

)

(24,314

)

Total operating income

204,214

53,747

257,591

116,167

Retirement defined benefits credit—other than service costs

879

919

1,758

1,836

Interest expense, net

(48,383

)

(27,256

)

(79,511

)

(61,468

)

Allowance for borrowed funds used during construction

1,997

1,462

3,702

2,879

Allowance for equity funds used during construction

4,387

3,702

8,151

7,287

Interest and dividend income

5,284

7,579

15,279

20,202

Loss on sale of a subsidiary and impairment loss on assets held for sale

(3,716

)

(178

)

(3,716

)

(13,389

)

Income before income taxes

164,662

39,975

203,254

73,514

Income tax expense

41,462

13,417

49,604

19,812

Net income

123,200

26,558

153,650

53,702

Preferred stock dividends of subsidiaries

—

473

—

946

Net income for common stock

$

123,200

$

26,085

$

153,650

$

52,756

Basic earnings per common share

$

0.71

$

0.15

$

0.89

$

0.31

Diluted earnings per common share

$

0.71

$

0.15

$

0.89

$

0.31

Weighted-average number of common shares outstanding

172,637

172,496

172,632

172,487

Weighted-average shares assuming dilution

173,222

172,655

173,353

172,832

Income (loss) for common stock by segment

Electric utility

$

137,858

$

39,150

$

173,201

$

86,966

Other

(14,658

)

(13,065

)

(19,551

)

(34,210

)

Income for common stock

$

123,200

$

26,085

$

153,650

$

52,756

Comprehensive income attributable to HEI

$

123,125

$

25,779

$

153,501

$

51,990

Return on average common equity (%) (twelve months ended)1

13.6

NM

Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME DATA

(Unaudited)

  Three months ended June 30

Six months ended June 30

($ in thousands, except per barrel amounts)

2026

2025

2026

2025

Revenues

$

936,864

$

742,482

$

1,680,904

$

1,480,848

Expenses

Fuel oil

336,615

210,587

573,528

449,308

Purchased power

223,559

174,963

368,833

321,680

Other operation and maintenance

166,743

158,217

328,960

301,325

Wildfire tort-related claims

(162,383

)

—

(162,383

)

—

Depreciation

66,447

63,974

132,893

127,993

Taxes, other than income taxes

87,319

70,197

157,976

140,061

Total expenses

718,300

677,938

1,399,807

1,340,367

Operating income

218,564

64,544

281,097

140,481

Allowance for equity funds used during construction

4,387

3,702

8,151

7,287

Retirement defined benefits credit—other than service costs

1,049

1,052

2,099

2,103

Interest expense and other charges, net

(45,351

)

(21,706

)

(73,227

)

(44,158

)

Allowance for borrowed funds used during construction

1,997

1,462

3,702

2,879

Interest income

2,713

1,215

6,581

3,196

Income before income taxes

183,359

50,269

228,403

111,788

Income tax expense

45,501

10,620

55,202

23,824

Net income

137,858

39,649

173,201

87,964

Preferred stock dividends of subsidiaries

—

229

—

458

Net income attributable to Hawaiian Electric

137,858

39,420

173,201

87,506

Preferred stock dividends of Hawaiian Electric

—

270

—

540

Net income for common stock

$

137,858

$

39,150

$

173,201

$

86,966

Comprehensive income attributable to Hawaiian Electric

$

137,811

$

39,103

$

173,107

$

86,872

OTHER ELECTRIC UTILITY INFORMATION

Kilowatthour sales (millions)

Hawaiian Electric

1,496

1,509

2,953

2,962

Hawaii Electric Light

260

257

518

512

Maui Electric

259

266

516

523

2,015

2,032

3,987

3,997

Average fuel oil cost per barrel

$

145.67

$

100.40

$

119.71

$

102.56

Return on average common equity (%) (twelve months ended)1

15.0

3.7

Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures

HEI management uses certain non-GAAP measures to evaluate the performance of HEI. Management believes these non-GAAP measures provide useful information and are a better indicator of the companies’ core operating activities. Core earnings and other financial measures as presented here may not be comparable to similarly titled measures used by other companies. The accompanying tables provide a reconciliation of reported GAAP1 earnings to non-GAAP Core earnings.

The reconciling adjustments from GAAP earnings to Core earnings are limited to the items related to the Maui wildfires and costs related to HEI’s ongoing review of strategic options for Pacific Current. Management does not consider these items to be representative of the company’s fundamental Core earnings.

  Reconciliation of GAAP1 to non-GAAP Measures

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries

Unaudited

  Three months ended June 30

Six months ended June 30

(in thousands)

2026

2025

2026

2025

Maui windstorm and wildfires related items

Pretax expenses:

Legal expenses

$

3,325

$

5,888

$

5,232

$

14,738

Outside services expense

—

11

—

135

Other expense

1,270

5,859

1,378

11,787

Interest expense

—

870

—

2,901

Pretax expenses

4,595

12,628

6,610

29,561

Insurance recoveries2

(7,842

)

2,418

(9,174

)

(4,304

)

Settlement remeasurement3

(153,870

)

—

(153,870

)

—

Accretion expense4

17,714

—

17,714

—

Deferral of cost

—

(9,889

)

—

(15,572

)

Total Maui windstorm and wildfires related items, net

(139,403

)

5,157

(138,720

)

9,685

Pretax loss on sale of a subsidiary and asset impairment

3,716

178

3,716

13,389

Income tax expense (benefit)5

34,940

3,936

34,764

(632

)

After-tax adjustments

$

(100,747

)

$

9,271

$

(100,240

)

$

22,442

Reconciliation of GAAP to non-GAAP Measures (continued)

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries

Unaudited

  Three months ended June 30

Six months ended June 30

(in thousands)

2026

2025

2026

2025

HEI Consolidated

GAAP1 net income (as reported)

$

123,200

$

26,085

$

153,650

$

52,756

Excluding special items related to the Maui windstorm and wildfires (after tax)2:

Legal expenses

2,469

4,372

3,885

10,943

Outside services expense

—

8

—

100

Other expense

943

4,350

1,023

8,752

Interest expense

—

646

—

2,154

After tax expenses

3,412

9,376

4,908

21,949

Insurance recoveries3

(5,823

)

1,795

(6,812

)

(3,196

)

Settlement remeasurement4

(114,248

)

—

(114,248

)

—

Accretion expense5

13,153

—

13,153

—

Deferral of cost

—

(7,342

)

—

(11,562

)

Total Maui windstorm and wildfires related items, net (after tax)

(103,506

)

3,829

(102,999

)

7,191

Loss on sale of a subsidiary and asset impairment (after tax)2

2,759

5,442

2,759

15,251

Non-GAAP (Core) net income

$

22,453

$

35,356

$

53,410

$

75,198

GAAP Diluted earnings per share (as reported)

$

0.71

$

0.15

$

0.89

$

0.31

Non-GAAP (Core) Diluted earnings per share

$

0.13

$

0.20

$

0.31

$

0.44

Reconciliation of GAAP to non-GAAP Measures (continued)

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited

  Three months ended June 30

Six months ended June 30

(in thousands)

2026

2025

2026

2025

Maui windstorm and wildfires related items

Pretax expenses:

Legal expenses

$

1,109

$

4,304

$

2,564

$

8,153

Other expense

1,116

5,792

1,116

11,487

Interest expense

—

660

—

2,412

Pretax expenses

2,225

10,756

3,680

22,052

Insurance recoveries1,2

(7,870

)

3,620

(8,831

)

556

Settlement remeasurement3

(153,870

)

—

(153,870

)

—

Accretion expense4

17,714

—

17,714

—

Deferral of cost5

—

(9,889

)

—

(15,572

)

Total Maui windstorm and wildfires related items, net

(141,801

)

4,487

(141,307

)

7,036

Income tax expense (benefits)6

36,514

(1,156

)

36,387

(1,812

)

After-tax adjustments

$

(105,287

)

$

3,331

$

(104,920

)

$

5,224

Hawaiian Electric consolidated net income

GAAP7 net income (as reported)

$

137,858

$

39,150

$

173,201

$

86,966

Excluding special items related to the Maui windstorm and wildfires (after tax)6:

Legal expenses

824

3,195

1,904

6,053

Other expense

828

4,300

828

8,529

Interest expense

—

490

—

1,791

After tax expenses

1,652

7,985

2,732

16,373

Insurance recoveries1,2

(5,844

)

2,688

(6,557

)

413

Settlement remeasurement3

(114,248

)

—

(114,248

)

—

Accretion expense4

13,153

—

13,153

—

Deferral of cost5

—

(7,342

)

—

(11,562

)

Total Maui windstorm and wildfires related items, net (after tax)

(105,287

)

3,331

(104,920

)

5,224

Non-GAAP (Core) net income

$

32,571

$

42,481

$

68,281

$

92,190

Twelve months ended June 30

2026

2025

Ratios (%)

Based on GAAP - Return on average equity8

15.0

3.7

Based on Non-GAAP (core) - Return on average equity8,9

5.7

7.2

Reconciliation of GAAP to non-GAAP Measures (continued)

Holding and Other Companies

Unaudited

  Three months ended June 30

Six months ended June 30

(in thousands)

2026

2025

2026

2025

Maui windstorm and wildfires related costs

Pretax expenses:

Legal expenses

$

2,216

$

1,584

$

2,668

$

6,585

Outside services expense

—

11

—

135

Other expense

154

67

262

300

Interest expense

—

210

—

489

Pretax expenses

2,370

1,872

2,930

7,509

Insurance recoveries

28

(1,202

)

(343

)

(4,860

)

Total Maui windstorm and wildfires related expenses, net of insurance recoveries

2,398

670

2,587

2,649

Pretax loss on sale of a subsidiary and asset impairment

3,716

178

3,716

13,389

Income tax expense (benefits)1

(1,574

)

5,092

(1,623

)

1,180

After-tax adjustments

$

4,540

$

5,940

$

4,680

$

17,218

Holding and Other Companies net loss

GAAP2 net loss (as reported)

$

(14,658

)

$

(13,065

)

$

(19,551

)

$

(34,210

)

Excluding special items related to the Maui windstorm and wildfires (after tax)1:

Legal expenses

1,646

1,177

1,981

4,890

Outside services expense

—

8

—

100

Other expense

115

50

195

223

Interest expense

—

156

—

363

Maui windstorm and wildfires related expenses (after tax)

1,761

1,391

2,176

5,576

Insurance recoveries

20

(893

)

(255

)

(3,609

)

Total Maui windstorm and wildfires related expenses, net of insurance recoveries (after tax)

1,781

498

1,921

1,967

Loss on sale of a subsidiary and asset impairment

2,759

5,442

2,759

15,251

Non-GAAP (Core) net loss

$

(10,118

)

$

(7,125

)

$

(14,871

)

$

(16,992

)

More News From Hawaiian Electric Industries, Inc.

Posted by Defense World Staff on Jul 30th, 2026

Heico (NYSE:HEI – Get Free Report) and Moog (NYSE:MOG.A – Get Free Report) are both large-cap aerospace companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Valuation & Earnings This table compares Heico and Moog”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Heico $4.49 billion 11.07 $690.39 million $5.60 63.46 Moog $3.86 billion 3.19 $235.03 million $8.89 43.69 Heico has higher revenue and earnings than Moog. Moog is trading at a lower price-to-earnings ratio than Heico, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations This is a breakdown of recent recommendations for Heico and Moog, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Heico 0 5 9 3 2.88 Moog 0 0 2 1 3.33 Heico presently has a consensus target price of $374.56, suggesting a potential upside of 5.40%. Moog has a consensus target price of $485.00, suggesting a potential upside of 24.88%. Given Moog’s stronger consensus rating and higher possible upside, analysts plainly believe Moog is more favorable than Heico.

Dividends Heico pays an annual dividend of $0.26 per share and has a dividend yield of 0.1%. Moog pays an annual dividend of $1.20 per share and has a dividend yield of 0.3%. Heico pays out 4.6% of its earnings in the form of a dividend. Moog pays out 13.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Heico has raised its dividend for 17 consecutive years.

Volatility & Risk Heico has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Moog has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Insider & Institutional Ownership 27.1% of Heico shares are owned by institutional investors. Comparatively, 88.0% of Moog shares are owned by institutional investors. 4.9% of Heico shares are owned by insiders. Comparatively, 1.5% of Moog shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability This table compares Heico and Moog’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Heico 16.08% 17.52% 8.86% Moog 6.83% 16.11% 7.15% Summary Heico beats Moog on 13 of the 18 factors compared between the two stocks.

About Heico (Get Free Report)

HEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. Its Flight Support Group segment provides jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components. This segment also distributes hydraulic, pneumatic, structural, interconnect, mechanical, and electro-mechanical components for the commercial, regional, and general aviation markets; and offers repair and overhaul services for jet engine and aircraft component parts, avionics, instruments, composites, and flight surfaces of commercial aircraft, as well as for avionics and navigation systems, and other instruments utilized on military aircraft. The company's Electronic Technologies Group segment provides electro-optical infrared simulation and test equipment; electro-optical laser products; electro-optical, microwave, and other power equipment; electromagnetic and radio frequency (RF) interference shielding and suppression filters; power conversion and interface; interconnection devices; and underwater locator beacons and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; memory products and specialty semiconductors; harsh environment connectivity products and custom molded cable assemblies; RF and microwave products; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems and airborne antennas; nuclear radiation detectors; silicone products; power amplifiers; ceramic-to-metal feedthroughs and connectors; technical surveillance countermeasures equipment; RF receivers and sources; embedded computing solutions; test sockets and adapters; and radiation assurance services. The company was incorporated in 1957 and is headquartered in Hollywood, Florida.

About Moog (Get Free Report)

Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and controls systems for original equipment manufacturers and end users in the aerospace, defense, and industrial markets worldwide. The company's Aircrafts Controls segment offers primary and secondary flight controls for military and commercial aircrafts; aftermarket support services; and ground-based navigation aids. Its Space and Defense Controls segment provides controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance, and other defense applications; and gun aiming, stabilization, and automatic ammunition loading for armored combat vehicles. This segment also offers controls for steering tactical and strategic missiles, and naval surface ships and submarines; and weapons stores management systems for light attack aerial reconnaissance, ground, and sea platforms, as well as slip rings, fiber optic rotary joints, and motors. The company's Industrial Systems segment provides components and systems for applications in injection and blow molding machinery, metal forming presses, and heavy industry customers in steel and aluminum production; supplies electromechanical motion simulation bases for the flight simulation and training applications; and supplies solutions for power generation applications, as well as custom test systems and controls for automotive, structural, and fatigue testing. This segment also offers systems and components for applications in oil and gas exploration and production; components for wind turbine applications; components and systems for diagnostic imaging CT scan medical equipment, sleep apnea equipment, oxygen concentrators, infusion therapy, and enteral clinical nutrition; and hydraulics, slip rings, rotary unions and fiber optic rotary joints, motors, and infusion and enteral pumps. The company was founded in 1951 and is headquartered in East Aurora, New York.

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Posted by Defense World Staff on Jul 21st, 2026

Baader Bank Aktiengesellschaft lessened its holdings in Heico Corporation (NYSE:HEI – Free Report) by 25.0% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 9,750 shares of the aerospace company’s stock after selling 3,255 shares during the quarter. Baader Bank Aktiengesellschaft’s holdings in Heico were worth $2,655,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Diamant Asset Management Inc. grew its stake in shares of Heico by 25,698.9% in the 1st quarter. Diamant Asset Management Inc. now owns 763,647 shares of the aerospace company’s stock valued at $209,392,000 after purchasing an additional 760,687 shares during the period. Munro Partners boosted its stake in Heico by 44.2% in the 4th quarter. Munro Partners now owns 284,898 shares of the aerospace company’s stock valued at $92,190,000 after buying an additional 87,265 shares in the last quarter. CI Investments Inc. grew its position in Heico by 40.0% in the fourth quarter. CI Investments Inc. now owns 164,036 shares of the aerospace company’s stock valued at $53,080,000 after acquiring an additional 46,846 shares during the period. Balyasny Asset Management L.P. grew its position in Heico by 263.2% in the third quarter. Balyasny Asset Management L.P. now owns 60,469 shares of the aerospace company’s stock valued at $19,521,000 after acquiring an additional 43,821 shares during the period. Finally, Fisher Asset Management LLC raised its stake in Heico by 12.1% during the fourth quarter. Fisher Asset Management LLC now owns 326,386 shares of the aerospace company’s stock worth $105,615,000 after acquiring an additional 35,288 shares in the last quarter. 27.12% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth Several brokerages have recently commented on HEI. Wells Fargo & Company set a $350.00 target price on shares of Heico and gave the company an “equal weight” rating in a research note on Monday, June 1st. Morgan Stanley set a $370.00 target price on shares of Heico in a research report on Wednesday, July 15th. Weiss Ratings raised shares of Heico from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday. Royal Bank Of Canada boosted their price target on shares of Heico from $375.00 to $390.00 and gave the company an “outperform” rating in a research report on Friday, May 29th. Finally, Citigroup reaffirmed a “buy” rating and set a $410.00 price objective (up from $403.00) on shares of Heico in a research note on Wednesday, July 1st. Three equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $374.56.

View Our Latest Report on HEI

Insider Buying and Selling at Heico In related news, CAO Bradley K. Rowen sold 1,326 shares of the stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $241.63, for a total value of $320,401.38. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. 4.86% of the stock is currently owned by company insiders.

Heico Trading Down 0.5% HEI stock opened at $341.07 on Tuesday. The company has a quick ratio of 1.36, a current ratio of 2.92 and a debt-to-equity ratio of 0.53. Heico Corporation has a twelve month low of $256.11 and a twelve month high of $369.48. The company has a market cap of $47.63 billion, a P/E ratio of 60.90, a PEG ratio of 3.55 and a beta of 1.03. The business has a fifty day moving average of $331.59 and a 200-day moving average of $317.81.

Heico (NYSE:HEI – Get Free Report) last announced its quarterly earnings data on Wednesday, May 27th. The aerospace company reported $1.66 EPS for the quarter, topping analysts’ consensus estimates of $1.33 by $0.33. The firm had revenue of $1.38 billion during the quarter, compared to analyst estimates of $1.25 billion. Heico had a return on equity of 17.52% and a net margin of 16.08%.The company’s revenue was up 25.3% on a year-over-year basis. During the same period last year, the company earned $1.12 earnings per share. As a group, equities research analysts expect that Heico Corporation will post 5.95 EPS for the current year.

Heico Dividend Announcement The firm also recently declared a dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were given a dividend of $0.13 per share. The ex-dividend date was Wednesday, July 1st. This represents a dividend yield of 7.0%. Heico’s payout ratio is currently 4.64%.

Heico Company Profile (Free Report)

HEICO Corporation is an aerospace, defense and electronics company that designs, manufactures, and sells a range of products and provides repair and aftermarket services. Headquartered in Hollywood, Florida, HEICO supplies replacement components, repair services and engineered systems for commercial and business aviation, military and space markets as well as for selected industrial and medical customers. The company’s offerings are focused on sustaining and improving the reliability and availability of complex equipment across its end markets.

HEICO operates through two principal business areas.

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An optimistic Q2 earnings report from GE Aerospace NYSE: GE saw the company boost full-year profit guidance amid resilient demand for repairs and spare parts in spite of challenges related to fuel prices and more. This may bode well for the aerospace service industry more broadly, suggesting that companies providing critical services and products may be able to carve out a niche and potentially outperform larger aircraft makers and related firms.

Aerospace and defense demand continues to surge, prompting some investors to flock to lesser-known names in search of companies with the capacity to scale production. Those willing to take on a bit more risk may find that these firms have greater potential for upside than some of the largest companies in the industry.

Get Heico alerts:

Ducommun Pivots Toward Defense, With Revenues Continuing to RiseDucommun Stock Forecast Today12-Month Stock Price Forecast:
$175.80
4.01% Upside

Moderate Buy
Based on 7 Analyst Ratings

Current Price$169.03High Forecast$216.00Average Forecast$175.80Low Forecast$150.00Ducommun Stock Forecast Details

With a market capitalization of just $2.6 billion, Ducommun Inc. NYSE: DCO is on the smaller side of the aerospace firms on our list. DCO's share price story has been one of fairly steady growth throughout 2026, although a July sell-off has interrupted this momentum somewhat. Still, shares are up 74% year to date (YTD).

Helping drive this growth is the company's pivot toward defense, which now accounts for the majority of its revenue. And when it comes to revenue, Ducommun has thrived: in the latest quarter, the company reported a record $209 million in revenue, up about 8% year over year (YOY) and the fourth consecutive quarter with at least $200 million in sales.

The firm's commercial aerospace business is in the midst of a rebound, with revenue increasing about 18% YOY in the last quarter, and this has helped margins to improve as well. Nonetheless, defense is the biggest business for Ducommun, and missile defense in particular is a standout (with 22% YOY improvement to quarterly revenue).

The recent share price dip may be a buy opportunity as it has helped to temper Ducommun's value metrics, bringing its price-to-sales (P/S) ratio to 3.0. Analysts see modest upside potential and view DCO shares with moderate optimism in the near-term based on four Buy ratings and three Holds.

Why StandardAero’s Pullback Could Be a Buying OpportunityStandardAero Stock Forecast Today12-Month Stock Price Forecast:
$34.00
27.38% Upside

Moderate Buy
Based on 14 Analyst Ratings

Current Price$26.69High Forecast$39.00Average Forecast$34.00Low Forecast$30.00StandardAero Stock Forecast Details

StandardAero NYSE: SARO is, at $9 billion in market cap, quite a bit larger than Ducommun, but still not approaching the scale of the biggest players in aerospace. The company has had a dramatically different share price trajectory this year compared to DCO—SARO stock is down 5% YTD after multiple rises and falls earlier in the year.

Investors looking closely at the company's financials may see this decline as an opportunity. After all, StandardAero reported 13.3% YOY revenue growth in the most recent quarter, the result of durable demand and excellent sales growth for its LEAP engine products. Military contracts and demand are helping to drive these top-line gains and have allowed management to raise full-year guidance to anticipate revenue of as much as $6.45 billion.

Margins have been a weaker area, but much of that is likely due to low-margin pass-through inventory and the timing of engine shipments. On a positive note, the company is on track with its capital deployment plans, having completed about $60 million in share repurchases last quarter.

All this leads analysts to take a fairly bullish view of SARO stock, with eight Buys and six Holds. Wall Street sees a price target of $34, which is more than 28% above where SARO currently trades.

HEICO's Aggressive Acquisition Strategy Is Paying OffHeico Stock Forecast Today12-Month Stock Price Forecast:
$374.56
9.33% Upside

Moderate Buy
Based on 17 Analyst Ratings

Current Price$342.58High Forecast$410.00Average Forecast$374.56Low Forecast$300.00Heico Stock Forecast Details

HEICO Corp. NYSE: HEI is by far the largest company on this list at $48 billion in market cap, but this company is in the middle when it comes to performance: HEI shares are up 7% YTD after an early-year dip that has reversed course in recent weeks.

One of the strengths of HEICO's size is its ability to engage in a fairly aggressive acquisitions strategy. In June alone, the company announced the completion of two acquisitions: Cook Defence Systems, a maker of tracking systems for armored defense vehicles; and CalRamic Technologies, a manufacturer of high-voltage ceramic capacitors. These two deals showcase HEICO's inorganic growth strategy, allowing the company to buy up smaller niche firms to enhance its offerings.

This approach can work so long as HEICO's financials support, and the company appears poised to be able to do just that. In the last reported quarter, net income surged by 49% YOY, and net sales climbed 25% over the same period. Operating cash flow of $292 million was a 43% YOY improvement. Given its size and scope, HEICO has strong positioning in commercial aviation, defense, and space applications, all of which are experiencing rising orders and backlogs.

Should You Invest $1,000 in Heico Right Now?Before you consider Heico, you'll want to hear this.

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HONOLULU--(BUSINESS WIRE)--Hawaiian Electric Company, Inc. (Hawaiian Electric), a subsidiary of Hawaiian Electric Industries, Inc. (HEI) (NYSE - HE), today submitted its Integrated Grid Planning Request for Proposals (IGP RFP), seeking plans for competitively priced renewable energy and storage for Oʻahu, Hawaiʻi Island and Maui to meet customers' growing energy needs and modernize the generation fleet to drive down costs by reducing the use of oil for power generation. Collectively, these proj.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Heico Corporation (HEI - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this company a great growth pick right now.

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Heico is 22.4%, investors should actually focus on the projected growth. The company's EPS is expected to grow 18.9% this year, crushing the industry average, which calls for EPS growth of 14.5%.

Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Heico is 28.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of 24%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 17.1% over the past 3-5 years versus the industry average of 14%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Heico have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.7% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Heico a Zacks Rank #1 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that Heico is a potential outperformer and a solid choice for growth investors.

A month has gone by since the last earnings report for Heico Corporation (HEI - Free Report) . Shares have lost about 0.8% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Heico due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Heico Corporation before we dive into how investors and analysts have reacted as of late.

HEICO Q2 Earnings Beat Estimates, Sales Increase Year Over Year

HEICO Corporation posted second-quarter fiscal 2026 earnings of $1.66 per share, which beat the Zacks Consensus Estimate of $1.33 by 24.6%. The bottom line also improved 48.2% from the year-ago quarter’s $1.12.

HEI’s Total SalesQuarterly net sales came in at $1.38 billion, up 25.3% year over year and 10.7% above the consensus mark of $1.24 billion. Results were driven by consolidated organic net sales growth of 18% and contributions from acquisitions.

HEICO’s Operational UpdateHEICO’s cost of sales increased 22.1% year over year to $806.2 million.

The company’s selling, general and administrative (SG&A) expenses rose 15.5% to $219.1 million.

Interest expense climbed 3.9% to $34.2 million from $32.9 million in the year-ago quarter.

HEI Posts Record Profit as Margins ExpandOperating income rose 41.2% year over year to $350.4 million, and consolidated operating margin expanded to 25.5% from 22.6% in the prior-year period.

HEI delivered record quarterly net income attributable of $233.8 million, up 49% year over year.

HEI’s Segmental Performance in Q2Flight Support Group: Net sales from this segment rose 21% year over year to $929.4 million. Growth was led by robust organic expansion of 19%, supported by improved demand across the group’s product lines as well as the impact of fiscal 2026 acquisitions.

The segment’s operating income increased 31% year over year to $243.1 million, and operating margin improved to 26.2% from 24.1%, helped by a more favorable product mix and efficiencies in SG&A expenses.

Electronic Technologies Group: The segment’s net sales climbed 34% to $459.5 million. The increase reflected organic growth of 17% plus contributions from acquisitions completed in fiscal 2025 and fiscal 2026, with demand improving across several end markets.

The segment’s operating income rose 56% year over year to $121.8 million, and operating margin expanded to 26.5% from 22.8%, driven by net sales growth, improved gross profit margin and better SG&A leverage.

HEI’s Financial DetailsAs of April 30, 2026, HEI’s cash and cash equivalents totaled $210.3 million compared with $217.8 million as of Oct. 31, 2025.

Cash flow provided by operating activities was $470.6 million during the first six months of fiscal 2026, reflecting a rise of 15.4% from the prior-year period’s level.

HEICO reported a long-term debt (net of current maturities) of $2.58 billion as of April 30, 2026, up from $2.16 billion as of Oct. 31, 2025.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

VGM ScoresAt this time, Heico has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Heico has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Heico Corporation (HEI - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Heico Corporation is a member of the Aerospace sector. This group includes 67 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Heico Corporation is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for HEI's full-year earnings has moved 4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, HEI has moved about 3.3% on a year-to-date basis. In comparison, Aerospace companies have returned an average of 3%. This means that Heico Corporation is performing better than its sector in terms of year-to-date returns.

Rolls-Royce Holdings PLC (RYCEY - Free Report) is another Aerospace stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 17.9%.

In Rolls-Royce Holdings PLC's case, the consensus EPS estimate for the current year increased 3.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Heico Corporation belongs to the Aerospace - Defense Equipment industry, a group that includes 37 individual stocks and currently sits at #56 in the Zacks Industry Rank. Stocks in this group have gained about 11.8% so far this year, so HEI is slightly underperforming its industry this group in terms of year-to-date returns. Rolls-Royce Holdings PLC is also part of the same industry.

Investors with an interest in Aerospace stocks should continue to track Heico Corporation and Rolls-Royce Holdings PLC. These stocks will be looking to continue their solid performance.

Denver, June 16, 2026 (GLOBE NEWSWIRE) -- HEI Civil is proud to announce that Anthony Joosten, vice president of safety, and Erika Hemric, Carolinas’ safety manager, have both earned the Certified Safety Professional® (CSP®) credential from the Board of Certified Safety Professionals® (BCSP®). The CSP is one of the most respected designations in the Safety, Health and Environmental (SH&E) field, recognizing practitioners who have demonstrated advanced knowledge, skill and experience in professional safety practice. 

Hemric, who leads safety operations for HEI Civil's Carolinas division, has distinguished herself through skilled leadership and a genuine commitment to fostering a culture where safety is a shared responsibility. Joosten, who oversees safety strategy across the organization as vice president, brings the same commitment to raising standards companywide. Together, their certifications signal a strong alignment between individual professional growth and HEI Civil's broader mission to attract and build the best people, teams and projects. 

The CSP credential is awarded to individuals who have met rigorous education and experience requirements and passed a comprehensive examination. Certificants must recertify every five years, ensuring they remain current with evolving best practices and continue strengthening the profession. 
"Safety, health, and environmental practice rely on the knowledge and skills of its practitioners," said Christy Uden, CAE, IOM, CEO of BCSP. "We are proud of those who join us in advancing safety through quality certification." 

Reflecting on his accomplishment, Joosten shared, "Three years ago, a mentor of mine challenged me to go back to college and obtain my bachelor’s degree and CSP. The hard work has paid off, and I am grateful to my family, friends, and colleagues who supported and encouraged me on this path." 

Hemric also expressed pride in her achievement, stating, "I am very proud to have earned my CSP. This certification is a symbol of the hard work and dedication I have put into continuing my growth, knowledge and experience in environment, safety and health beyond earning a degree," Hemric said. "I appreciate all the support HEI Civil has given me along this path and their commitment to making continuing education and growth a priority for their team members." 

Both achievements underscore HEI Civil's core values of growth, raising the bar, integrity and teamwork; values known internally as GRIT. By investing in the professional development of its safety leaders, HEI Civil reinforces its responsibility to protect people, jobsites and the communities it serves. 

About The Board of Certified Safety Professionals (BCSP) 
The Board of Certified Safety Professionals (BCSP), headquartered in Indianapolis, Indiana, is a not-for-profit corporation and recognized leader in high-quality accredited credentialing for Safety, health and environmental practitioners. BCSP establishes standards and certifies competency criteria in professional Safety practice. Since 1969, more than 100,000 BCSP credentials have been achieved. For detailed information, visit https://www.bcsp.org/. 

About HEI Civil 
Founded in 1973, HEI Civil is a leading heavy civil construction general contractor shaping infrastructure across Arizona, the Carolinas, Colorado and Texas. Driven by its mission to attract and build the best people, teams and projects, the company delivers exceptional results through its core values of GRIT: growth, raising the bar, integrity and teamwork. With a steadfast focus on safety, people, quality, client service, equipment and production, HEI Civil consistently executes the complex heavy civil projects crucial for developing thriving communities. For more information, visit https://www.heicivil.com.  

Anthony Joosten and Erika Hemric

Anthony Joosten and Erika Hemric Congratulations on passing the CSP

MIAMI, FL AND HOLLYWOOD, FL / ACCESS Newswire / June 12, 2026 / HEICO Corporation (NYSE:HEI.A)(NYSE:HEI) today announced that it increased its existing credit facility to a $2.2 billion unsecured revolving credit facility (the "Facility"), which is a $200 million increase to the Facility's previous $2 billion limit. The Facility is with a banking syndicate led by Joint Lead Arrangers Truist Bank, Bank of America, Wells Fargo, PNC, TD Bank, and Crédit Agricole. Other participating banks are Huntington, JPMorgan, RBC, and M&T Bank. Additionally, the Facility's maturity date has been extended to 2031.

HEICO's record-size Facility includes an accordion feature allowing it to be increased to $3 billion under certain circumstances. Borrowings under the Facility bear interest at the Secured Overnight Financing Rate ("SOFR") plus an applicable margin ranging from 75 to 125 basis points, which is indexed to HEICO's investment grade rating.

Proceeds from the Facility will be used primarily to fund acquisitions, as well as for general business purposes. Since 1996, HEICO has completed over 110 acquisitions and remains committed to its disciplined acquisition strategy.

Eric A. Mendelson and Victor H. Mendelson, HEICO's Co-Chairmen and Co-Chief Executive Officers, stated, "Expanding the credit facility to $2.2 billion gives us meaningful runway to keep doing what we do best: finding great businesses and welcoming them into the HEICO family. Our lenders have been with us through many of those acquisitions, and their continued support and partnership provides financial flexibility to efficiently respond to market opportunities and grow the business."

Carlos L. Macau, Jr., HEICO's Executive Vice President and Chief Financial Officer, added, "Extending the maturity to 2031 at attractive pricing reflects the strength of HEICO's balance sheet and cash flow. This is exactly the kind of low-cost, flexible capital that funds accretive growth while keeping our leverage conservative and our discipline intact."

HEICO Corporation is engaged primarily in the design, production, servicing and distribution of products and services to certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, Florida-based Flight Support Group and its Miami, Florida-based Electronic Technologies Group. HEICO's customers include a majority of the world's airlines and overhaul shops, as well as numerous defense and space contractors and military agencies worldwide, in addition to medical, telecommunications and electronics equipment manufacturers. For more information about HEICO, please visit our website at https://www.heico.com.

Certain statements in this press release constitute forward-looking statements, which are subject to risks, uncertainties and contingencies. HEICO's actual results may differ materially from those expressed in or implied by those forward-looking statements. Factors that could cause such differences include, among others: the severity, magnitude and duration of public health threats; our liquidity and the amount and timing of cash generation; 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 in 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; our ability to introduce new products and services at profitable pricing levels, which could reduce our sales or sales growth; product development or manufacturing difficulties, which could increase our product development and manufacturing costs and delay sales; cybersecurity events or other disruptions of our information technology systems could adversely affect our business; and our ability to make acquisitions, including obtaining any applicable domestic and/or foreign governmental approvals, and achieve operating synergies from acquired businesses; customer credit risk; interest, foreign currency exchange and income tax rates; and 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. Parties receiving this material are encouraged to review all of HEICO's filings with the Securities and Exchange Commission including, but not limited to filings on Form 10-K, Form 10-Q and Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

Contact:
Victor H. Mendelson (305) 374-1745
Carlos L. Macau, Jr. (954) 744-7570

SOURCE: HEICO Corporation