HEICO Corporation Reports Second Quarter of Fiscal 2024

29 Mei

HEICO Corporation (HEI) reported a record increase in net income of 17% to $123.1 million in the second quarter of fiscal 2024, up from $105.1 million in the same period in 2023. The company also saw a 20% increase in net income to $237.8 million in the first six months of fiscal 2024, up from $198.1 million in the same period in 2023. Net sales increased 39% to a record $955.4 million in the second quarter of fiscal 2024, up from $687.8 million in the same period in 2023. Operating income increased 33% to a record $209.2 million in the second quarter of fiscal 2024, up from $157.1 million in the same period in 2023. The consolidated operating margin was 21.9% in the second quarter of fiscal 2024, as compared to 22.8% in the first six months of fiscal 2023.

Net sales increased 41% to a record $1,851.8 million in the first six months of fiscal 2024, up from $1,308.8 million in the same period in 2023. Operating income increased 36% to a record $389.4 million in the first six months of fiscal 2024, up from $286.5 million in the first six months of fiscal 2023. The Company's consolidated operating margin was 21.0% in the first six months of fiscal 2024, as compared to 21.9% in the first six months of fiscal 2023.

HEICO's Chairman and CEO, Laurens A. Mendelson, commented on the Company's second quarter results, stating that the company is pleased to report strong record quarterly consolidated net sales driven by record quarterly operating results at the Flight Support Group and improved results at the Electronic Technologies Group, as well as strong contributions from its fiscal 2023 acquisitions. These results reflect 12% organic growth in the Flight Support Group's net sales principally arising from increased demand for its commercial aerospace products and services and 4% organic growth in the Electronic Technologies Group reflecting increased net sales of its defense and aerospace products.

The total debt to net income attributable to HEICO ratio was 5.39x as of April 30, 2024, down from 6.14x as of October 31, 2023. The net debt to EBITDA ratio was 2.45x as of April 30, 2024, down from 3.04x as of October 31, 2023. Cash flow provided by operating activities increased 82% to $141.1 million in the second quarter of fiscal 2024, up from $77.8 million in the second quarter of fiscal 2023.

As HEICO (HEI) looks ahead to the remainder of fiscal 2024, they continue to anticipate net sales growth in both the Flight Support Group and the Electronic Technologies Group, principally driven by contributions from their fiscal 2023 acquisitions and demand for the majority of their products. Additionally, they plan to continue their commitment to developing new products and services and further market penetration while maintaining their financial strength and flexibility.

In conclusion, HEICO Corporation (HEI) reported a record increase in net income, net sales, and operating income for the second quarter of fiscal 2024. The company's commercial aerospace sales growth has resulted in fifteen consecutive quarters of sequential growth in net sales at the Flight Support Group.