A maker of FAA-approved replacement parts for jet engines and aircraft, HEICO keeps planes flying with parts that rival the originals, and also supplies specialized electronics for defense and satellites. It started life in 1957 as Heinicke Instruments, a maker of medical lab equipment, before pivoting to aviation in 1974 and taking its current name in 1986. A fun twist: the company it grew from had no connection to flight at all.
Q3 FY2026 revenue rose 23% to a record $1.41B as both segments grew and operating margin widened to 25.1%.
Both segments grew at once, and the Electronic Technologies Group reversed its earlier margin slide. rose 23% to a record $1.41B, widened 1.3 points to 41.1%, and rose 33% to $1.67, driven by 18% Flight Support Group growth and 36% Electronic Technologies Group growth. The company enters the final quarter with record and $1.0B already spent on acquisitions this year.
Key takeaways
Electronic Technologies Group rose 36% in the quarter, the 's fastest growth in the periods shown, after its Q1 FY2026 drop of 3.2 points on defense mix and lower space sales.
Consolidated widened 1.3 points to 41.1%, as a more favorable aftermarket parts mix in Flight Support Group and higher sales with favorable aerospace mix in Electronic Technologies Group lifted profitability.
rose 34% to a record $355.2M and widened 2.0 points to 25.1%, with both segments leveraging SG&A efficiencies.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 net sales rose 23% to a record $1.41B, with operating income up 34% on segment growth and margin gains.
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Consolidated rose 21% to a record $3,967.3M in the first nine months of fiscal 2026, driven by 18% FSG growth and 28% ETG growth.
Third-quarter increased 23% to a record $1,413.1M, with FSG up 18% and ETG up 36%.
rose 33% to $235.4M and rose 33% to $1.67, while rose 49% to $345.3M.
Nine-month acquisitions totaled $1,018.2M, funded partly by , with ending the quarter at $2,537.7M, up 3.8% .
The company reported no material changes in its market risk assessment from the FY2025 10-K.
What changed
The Electronic Technologies Group margin concern flagged after Q1 FY2026 resolved: after the 3.2-point drop that quarter, Q2 and Q3 both showed recovery, with Q3 consolidated gross margin at 41.1% versus 38.6% in Q1.
Flight Support Group , flagged for potential fading from the 12-14% range, accelerated to 19% in Q2 and held at 18% total growth in Q3, above the prior three quarters' pace.
The acquisition pace stepped up: $821.3M was deployed in the first half and $1,018.2M through nine months, versus $629.8M for all of FY2025, lifting from $2,164.6M at FY2025 year-end to $2,537.7M.
of $345.3M in Q3 rose 49% , an acceleration from the 15% six-month growth rate reported in Q2, driven by higher .
The company still has not revised the $2.1B figure disclosed in FY2025, now six quarters without an update.
What to watch
Whether Electronic Technologies Group sustains its 36% Q3 growth and recovered into Q4, or reverts toward the Q1 FY2026 defense-mix-driven decline.
Flight Support Group in Q4, to see if the 18-19% pace holds or fades back toward the 12-14% range of earlier quarters.
Q4 and after $1,018.2M of nine-month acquisitions and $420M of net .
Any update to the $2.1B figure, now six quarters without revision.
Consolidated improved to 40.5% for the nine months and 41.1% for the third quarter, up from 39.7% and 39.8%, respectively.
Consolidated rose 30% to a record $965.5M for the nine months and 34% to a record $355.2M for the third quarter.
attributable to HEICO increased 31% to $659.4M, or $4.67 per diluted share, for the nine months and 33% to $235.4M, or $1.67 per diluted share, for the third quarter.
Net cash provided by operating activities increased 28% to $815.9M, while acquisitions totaled $1,018.2M and were $54.1M in the first nine months.
Quantitative and Qualitative Disclosures About Market Risk
There have not been any material changes in our assessment of HEICO’s sensitivity to market risk that was disclosed in Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in our Annual Report on Form 10-K for the year ended October 31, 2025.
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There have not been any material changes in our assessment of HEICO’s sensitivity to market risk that was disclosed in Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in our Annual Report on Form 10-K for the year ended October 31, 2025.