HEICO Corporation (HEI) Q1 2025 Earnings Report

HEICO Corporation delivered a standout QQ1 2025 performance, showcasing robust top-line growth, margin expansion, and strong cash generation amid a disciplined acquisition strategy. Consolidated revenue rose 14.9% YoY to $1.03 billion, while EBITDA climbed 22% to $273.9 million and the company posted record quarterly operating income of $226.8 million and net income of $168 million ($1.20 per share). The quarter featured decisive margin expansion across both segments: Flight Support Group (FSG) achieved a 23.3% operating margin with a 26% cash margin before amortization, while Electronic Technologies Group (ETG) reported an operating margin of 23.1% (true cash margin >27% before acquisition-related intangibles). Management attributed the results to strong organic growth, contribution from recent acquisitions, and ongoing cost efficiencies, with backlogs at ETG at all-time highs. HEICO also completed meaningful first-quarter acquisitions (Exxelia subsidiary’s 70% stake in SVM Limited; exclusive licenses/assets from Honeywell for Boeing 777 AIMS and VIA lines; Millennium International acquisition) funded largely by revolver borrowings and operating cash flow, and guided continued strong cash flow generation for the full year. Management emphasized a growth-by-acquisition mindset, a decentralized operating model, and the potential for defense and space content to meaningfully contribute over time, while acknowledging near-term execution risk from defense funding dynamics and supply-chain disruptions. Overall, HEICO’s QQ1 2025 results reinforce a constructive investment thesis anchored in durable cash flow, margin resilience, strategic M&A, and a scalable platform across defense, space, and commercial aviation.