HEICO Posts Record Q1 Profit but Stock Slips Amid Debt Concerns
HEICO Corporation delivered a robust first-quarter performance, with net income climbing to $190.2 million and diluted earnings reaching $1.35 per share. Revenue surged 14% to $1.18 billion, driven by strong momentum in its Flight Support segment, where margins expanded to 24.5% on improved mix and operational efficiency.
Despite these gains, the stock fell sharply in pre-market trading, sliding from $344.72 to $324.59. Investors appeared wary of rising leverage, as net debt to EBITDA increased to 1.79x following a recent acquisition. Management remains optimistic, citing sustained growth across Core business segments and reaffirming its FY26 outlook.
The Electronic Technologies segment saw sales growth but faced margin pressure from product mix shifts. Operating cash flow dipped to $178.6 million due to compensation payouts, though EBITDA still ROSE 14% to $312 million, reflecting the company's scaling advantages.
