HEICO’s Electronic Technologies Group delivered a particularly strong fiscal third quarter of 2026 as operating income grew substantially faster than sales and the segment’s operating margin expanded by more than three percentage points.
Electronic Technologies net sales increased 36% year over year to a record $483.5 million from $355.9 million. Organic sales increased 18%, with HEICO attributing the underlying growth primarily to stronger demand across electronics, defense and aerospace products. Acquisitions completed during fiscal 2025 and fiscal 2026 provided an additional contribution to the segment’s reported growth.
Operating income increased even faster, jumping 55% to a record $125.6 million from $81 million. That growth pushed the Electronic Technologies operating margin to 26% from 22.8%, an expansion of approximately 320 basis points.
HEICO attributed the profit increase to the combination of higher sales, selling, general and administrative expense efficiencies created by the larger revenue base and improved gross profit margin. The company said the gross-margin improvement was primarily driven by higher sales of aerospace products.
The segment’s performance outpaced HEICO’s already strong consolidated results. Companywide third-quarter sales increased 23% to a record $1.41 billion, while operating income increased 34% to a record $355.2 million. Consolidated operating margin improved to 25.1% from 23.1%, and net income attributable to HEICO increased 33% to a record $235.4 million, or $1.67 per diluted share.
Organic growth remained meaningful across the company. HEICO reported 14% consolidated organic net sales growth during the quarter. Its larger Flight Support Group generated record sales of $947.8 million, up 18%, including 12% organic growth, while operating income increased 24% to $245.3 million.
Cash generation also accelerated. Cash flow provided by operating activities increased 49% to $345.3 million from $231.2 million. HEICO’s net debt-to-EBITDA ratio improved to 1.57 times at July 31 from 1.60 times at the end of fiscal 2025.
During the quarter, HEICO issued $550 million of 4.95% senior notes due 2031 and $650 million of 5.40% senior notes due 2036. The proceeds were used to repay borrowings under its revolving credit facility.
HEICO expects sales growth at both operating groups to continue through the remainder of fiscal 2026, supported by underlying demand and recent acquisitions. The company also continues evaluating additional acquisition opportunities while prioritizing organic investment and financial flexibility.
KEY QUOTES:
“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.”
Eric A. Mendelson and Victor H. Mendelson, Co-Chairmen and Co-Chief Executive Officers of HEICO
