HEICO delivered a standout QQ1 2024 performance highlighted by a 44% year-over-year jump in revenue to $896.4 million and a 23% increase in net income to $114.7 million. EBITDA rose 43% to $224.4 million, and operating income expanded 39% to $181.6 million, reflecting a materially stronger Flight Support Group following the Wencor acquisition and a meaningful organic growth contribution of ~12% within the segment. The Flight Support Group generated a record quarterly net sales of $618.7 million, up 67% YoY, underscoring the strategic value of the acquisition and continued aftermarket demand. Net debt-to-EBITDA improved to 2.79x, signaling meaningful deleveraging post-acquisition and solid balance-sheet strength as HEICO remains on track to the targeted 2x leverage within 12–18 months post-acquisition. Operating cash flow rose 46% to $111.7 million, and free cash flow reached $98.3 million, supporting ongoing investment and prudent capital allocation.
ETG (Electronic Technologies Group) displayed a more lumpy first quarter, with net sales up 12% to $285.9 million and operating income of $55.3 million (versus $56.5 million a year ago). ETG margins were 19.3% reported, with true margins closer to the mid-20s once acquisition-related amortization is considered; management notes that backlogs are near record levels and shipments timing created quarter-to-quarter variability. R&D investment increased roughly 25% in Q1 to drive long-term growth, with SG&A intensity elevated as a percentage of net sales in the near term; management expects improved margins across ETG in coming quarters as shipments normalize and R&D investments translate into revenue growth.
Management reiterated a disciplined capital-allocation framework, emphasizing robust cash generation and debt reduction while remaining open to accretive acquisitions. While HEICO does not provide formal quarterly guidance, leadership reiterated a long-term earnings growth target of 15%–20% annually and stressed confidence in delivering strong cash flows and earnings growth in fiscal 2024, aided by acquisitions and healthy end markets. The Honeywell cockpit-display licensing deal closed in Dec 2023 is expected to be accretive in the year following closing, broadening HEICO’s avionics capabilities and reinforcing its value proposition to customers and the industry. Overall, the combination of a diversified, asset-light portfolio, meaningful backlog, and continued market demand supports a constructive investment thesis with multiple levers to sustain earnings growth and cash-flow expansion.