Reported Q: Q2 2024 Rev YoY: +38.9% EPS YoY: +15.6% Move: -1.28%
HEICO Corporation
HEI
$322.49 -1.28%
Exchange NYSE Sector Industrials Industry Aerospace Defense
Q2 2024
Published: May 30, 2024

Company Status Snapshot

Fast view of the latest quarter outcome for HEI

Reported

Report Date

May 30, 2024

Quarter Q2 2024

Revenue

955.40M

YoY: +38.9%

EPS

0.88

YoY: +15.6%

Market Move

-1.28%

Previous quarter: Q1 2024

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Earnings Highlights

  • Revenue of $955.40M up 38.9% year-over-year
  • EPS of $0.88 increased by 15.6% from previous year
  • Gross margin of 41.8%
  • Net income of 123.15M
  • ""record quarterly results for our shareholders"" - Laurans Mendelson, Chairman & CEO
HEI
Company HEI

Executive Summary

HEICO Corporation reported a record second quarter for fiscal 2024, underscoring the benefits of accretive acquisitions and strong organic demand across its two operating platforms. Consolidated net sales of $955.4 million grew approximately 39% year over year, while net income rose 17% to $123.1 million and diluted EPS reached $0.88. EBITDA rose 35% to $252.4 million, delivering a robust EBITDA margin of about 26.4%. The earnings call emphasized that the Flight Support Group (FSG) achieved all-time quarterly net sales and operating income records, up 65% and 49% respectively versus the year-ago quarter, driven by the Wencor acquisition and a solid 12% organic growth, with aftermarket parts delivering a 21% organic expansion. HEICO’s Electronic Technologies Group (ETG) posted a 6% top-line increase to $319.3 million, with operating income of $75.3 million and an improved operating margin of 23.6%, aided by better gross margins and a favorable product mix, though acquisition-related intangible amortization compressed margins by roughly 400 basis points. Consolidated leverage improved to 2.45x on 4/30/2024, with a goal to reach 2x within 12–18 months post-Wencor, and operating cash flow surged to $141.1 million, supporting strong free cash flow generation of $128.2 million. Management signaled continued net sales growth in both FSG and ETG during fiscal 2024, backed by a strong backlog (notably in ETG) and ongoing product development, while stressing the importance of disciplined capital allocation and the potential for further M&A. The execution remains sensitive to defense spending, aerospace demand, supplier dynamics, and inflation, all of which were discussed as potential risk factors for the path ahead.

Key Performance Indicators

Revenue
Increasing
955.40M
QoQ: 6.59% | YoY: 38.90%
Gross Profit
Increasing
399.73M
41.84% margin
QoQ: 7.49% | YoY: 49.99%
Operating Income
Increasing
208.98M
QoQ: 15.08% | YoY: 33.03%
Net Income
Increasing
123.15M
QoQ: 7.37% | YoY: 17.15%
EPS
Increasing
0.89
QoQ: 7.23% | YoY: 15.58%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2025 1,030.22 1.20 +14.9% View
Q4 2024 1,013.67 0.99 +8.3% View
Q3 2024 992.25 0.97 +37.3% View
Q2 2024 955.40 0.88 +38.9% View
Q1 2024 896.36 0.82 +44.4% View