Revenue growth has accelerated to 23.1% year-over-year in Q3 2026, while operating margins have expanded to 25.1%, demonstrating strong operating leverage and pricing power.
HEICO Corporation (HEI) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Sales/Revenue | 5.18B | 4.49B | 3.86B | 2.97B | 2.21B | 1.87B | 1.79B | 2.06B | 1.78B | 1.52B | 1.38B | 1.19B | 1.13B | 1.01B | 897.35M | 764.89M | 617.02M | 538.3M | 582.35M | 507.92M | 392.19M | 269.65M | 215.74M | 176.45M | 172.11M | 171.26M | 202.91M | 141.3M | 95.4M | 63.7M | 34.6M |
| Revenue Growth % | 20.69% | 16.26% | 29.97% | 34.41% | 18.37% | 4.4% | -13.07% | 15.63% | 16.59% | 10.79% | 15.78% | 4.98% | 12.25% | 12.42% | 17.32% | 23.97% | 14.62% | -7.56% | 14.65% | 29.51% | 45.45% | 24.98% | 22.27% | 2.52% | 0.5% | -15.6% | 43.6% | 48.11% | 49.76% | 84.1% | -14.36% |
| Cost of Goods Sold | 3.09B | 2.7B | 2.24B | 1.72B | 1.27B | 1.07B | 1.04B | 1.18B | 1.03B | 903.62M | 816.04M | 715.72M | 696.62M | 604.68M | 539.51M | 464.55M | 371.97M | 337.58M | 353.45M | 313.97M | 234.33M | 157.34M | 129.14M | 118.35M | 110.61M | 100.11M | 117.32M | 77.6M | 56.4M | 41.4M | 20.3M |
| COGS % of Revenue | - | 60.17% | 58.19% | 57.91% | 57.49% | 57.32% | 58.16% | 57.17% | 57.91% | 59.26% | 59.29% | 60.21% | 61.52% | 59.94% | 60.12% | 60.73% | 60.29% | 62.71% | 60.69% | 61.81% | 59.75% | 58.35% | 59.86% | 67.07% | 64.27% | 58.46% | 57.82% | 54.92% | 59.12% | 64.99% | 58.67% |
| Gross Profit | 2.09B | 1.79B | 1.61B | 1.25B | 938.82M | 796.3M | 747.69M | 880.47M | 748.16M | 621.2M | 560.22M | 472.93M | 435.69M | 404.08M | 357.84M | 300.34M | 245.05M | 200.71M | 228.9M | 193.96M | 157.86M | 112.31M | 86.61M | 58.1M | 61.5M | 71.15M | 85.59M | 63.7M | 39M | 22.3M | 14.3M |
| Gross Margin % | 40.4% | 39.83% | 41.81% | 42.09% | 42.51% | 42.68% | 41.84% | 42.83% | 42.09% | 40.74% | 40.71% | 39.79% | 38.48% | 40.06% | 39.88% | 39.27% | 39.71% | 37.29% | 39.31% | 38.19% | 40.25% | 41.65% | 40.14% | 32.93% | 35.73% | 41.54% | 42.18% | 45.08% | 40.88% | 35.01% | 41.33% |
| Gross Profit Growth % | - | 10.75% | 29.12% | 33.07% | 17.9% | 6.5% | -15.08% | 17.68% | 20.44% | 10.88% | 18.46% | 8.55% | 7.82% | 12.92% | 19.14% | 22.56% | 22.09% | -12.31% | 18.01% | 22.87% | 40.56% | 29.67% | 49.06% | -5.53% | -13.56% | -16.87% | 34.36% | 63.33% | 74.89% | 55.94% | -5.3% |
| Operating Expenses | 846.76M | 767.47M | 778.7M | 601.67M | 450.87M | 401.42M | 370.44M | 420.63M | 373.19M | 313.44M | 291.81M | 242.98M | 245.43M | 220.49M | 194.54M | 156.91M | 134.47M | 110.96M | 121.31M | 107.94M | 90.99M | 67.66M | 52.73M | 34.9M | 39.1M | 40.16M | 46.35M | 30.8M | 19.9M | 13.1M | 9.8M |
| OpEx % of Revenue | - | 17.11% | 20.19% | 20.27% | 20.42% | 21.52% | 20.73% | 20.46% | 20.99% | 20.56% | 21.2% | 20.44% | 21.67% | 21.86% | 21.68% | 20.51% | 21.79% | 20.61% | 20.83% | 21.25% | 23.2% | 25.09% | 24.44% | 19.78% | 22.72% | 23.45% | 22.84% | 21.8% | 20.86% | 20.57% | 28.32% |
| Selling, General & Admin | 846.76M | 767.47M | 667.43M | 505.9M | 374.81M | 332.55M | 304.88M | 354M | 315.74M | 266.97M | 247.08M | 204.23M | 208.05M | 187.59M | 164.14M | 131.51M | 111.77M | 91.26M | 102.91M | 91.44M | 75.65M | 56.3M | 42.28M | 34.9M | 39.1M | 39.58M | 36.58M | 24.7M | 17.1M | 11.5M | 7.7M |
| SG&A % of Revenue | - | 17.11% | 17.3% | 17.04% | 16.97% | 17.82% | 17.06% | 17.22% | 17.76% | 17.51% | 17.95% | 17.18% | 18.37% | 18.6% | 18.29% | 17.19% | 18.12% | 16.95% | 17.67% | 18% | 19.29% | 20.88% | 19.6% | 19.78% | 22.72% | 23.11% | 18.03% | 17.48% | 17.92% | 18.05% | 22.25% |
| Research & Development | 0 | 0 | 111.27M | 95.77M | 76.06M | 68.88M | 65.56M | 66.63M | 57.45M | 46.47M | 44.73M | 38.75M | 37.38M | 32.9M | 30.4M | 25.4M | 22.7M | 19.7M | 18.4M | 16.5M | 15.35M | 11.31M | 10.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 2.88% | 3.23% | 3.44% | 3.69% | 3.67% | 3.24% | 3.23% | 3.05% | 3.25% | 3.26% | 3.3% | 3.26% | 3.39% | 3.32% | 3.68% | 3.66% | 3.16% | 3.25% | 3.91% | 4.19% | 4.84% | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 47K | 0 | 0 | 0 | 577K | 9.78M | 6.1M | 2.8M | 1.6M | 2.1M |
| Operating Income | 1.24B | 1.02B | 834.29M | 647.59M | 487.95M | 394.88M | 377.25M | 459.83M | 374.97M | 307.76M | 268.41M | 229.95M | 190.26M | 183.59M | 163.29M | 143.43M | 110.57M | 89.75M | 107.59M | 86.01M | 66.87M | 44.72M | 33.88M | 23.2M | 22.4M | 30.99M | 39.23M | 32.9M | 19.1M | 9.2M | 4.5M |
| Operating Margin % | 24.04% | 22.72% | 21.63% | 21.82% | 22.1% | 21.17% | 21.11% | 22.37% | 21.09% | 20.18% | 19.5% | 19.35% | 16.8% | 18.2% | 18.2% | 18.75% | 17.92% | 16.67% | 18.47% | 16.93% | 17.05% | 16.58% | 15.7% | 13.15% | 13.01% | 18.1% | 19.34% | 23.28% | 20.02% | 14.44% | 13.01% |
| Operating Income Growth % | - | 22.14% | 28.83% | 32.72% | 23.57% | 4.67% | -17.96% | 22.63% | 21.84% | 14.66% | 16.73% | 20.86% | 3.63% | 12.43% | 13.85% | 29.72% | 23.19% | -16.58% | 25.08% | 28.63% | 49.53% | 31.99% | 46% | 3.59% | -27.72% | -21.01% | 19.26% | 72.25% | 107.61% | 104.44% | 0% |
| EBITDA | 1.46B | 1.22B | 1.01B | 776.09M | 583.25M | 486.78M | 464.95M | 542.43M | 451.07M | 371.86M | 328.11M | 277.79M | 238.64M | 221.27M | 193.95M | 161.97M | 128.17M | 104.72M | 122.64M | 98.18M | 77.43M | 52.13M | 35.66M | 28.29M | 25.7M | 42.16M | 49.01M | 38.1M | 19.8M | 9.1M | 6.6M |
| EBITDA Margin % | 28.24% | 27.09% | 26.13% | 26.15% | 26.41% | 26.09% | 26.02% | 26.39% | 25.37% | 24.39% | 23.84% | 23.37% | 21.08% | 21.93% | 21.61% | 21.18% | 20.77% | 19.45% | 21.06% | 19.33% | 19.74% | 19.33% | 16.53% | 16.03% | 14.93% | 24.62% | 24.15% | 26.96% | 20.75% | 14.29% | 19.08% |
| EBITDA Growth % | 24.31% | 20.54% | 29.88% | 33.06% | 19.82% | 4.69% | -14.28% | 20.25% | 21.3% | 13.33% | 18.11% | 16.4% | 7.85% | 14.09% | 19.74% | 26.37% | 22.39% | -14.61% | 24.91% | 26.8% | 48.54% | 46.19% | 26.06% | 10.05% | -39.03% | -13.98% | 28.64% | 92.42% | 117.58% | 37.88% | -2.94% |
| D&A (Non-Cash Add-back) | 217.59M | 196.08M | 173.7M | 128.5M | 95.3M | 91.9M | 87.7M | 82.6M | 76.1M | 64.1M | 59.7M | 47.84M | 48.38M | 37.68M | 30.66M | 18.54M | 17.6M | 14.97M | 15.05M | 12.17M | 10.56M | 7.41M | 1.78M | 5.08M | 3.3M | 11.16M | 9.78M | 5.2M | 700K | -100K | 2.1M |
| EBIT | 1.25B | 1.02B | 826.9M | 628.27M | 497.41M | 394.34M | 378.01M | 459.54M | 376.19M | 307.75M | 265.32M | 229.59M | 204.01M | 184.48M | 163.61M | 138.5M | 109.56M | 88.46M | 105.15M | 86.11M | 67.51M | 45.18M | 37.65M | 23.2M | 22.4M | 30.99M | 39.23M | 32.9M | 19.1M | 9.2M | 4.5M |
| Net Interest Income | -132.4M | -129.88M | -149.31M | -72.98M | -6.39M | -7.29M | -13.16M | -21.7M | -19.9M | -9.79M | -8.27M | -4.63M | -5.44M | -3.72M | -2.43M | -142K | -508K | -615K | -2.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 132.4M | 129.88M | 149.31M | 72.98M | 6.39M | 7.29M | 13.16M | 21.7M | 19.9M | 9.79M | 8.27M | 4.63M | 5.44M | 3.72M | 2.43M | 142K | 508K | 615K | 2.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -127.61M | -125.44M | -156.71M | -92.31M | 3.07M | -7.82M | -12.39M | -21.99M | -18.69M | -9.8M | -11.36M | -4.99M | 8.31M | -2.83M | -2.12M | -5.08M | -1.52M | -1.91M | -4.75M | -3.2M | -2.88M | -677K | 2.68M | -1.1M | -921K | -3.68M | 8.01M | -5M | -1.7M | 1.1M | 900K |
| Pretax Income | 1.12B | 893.55M | 677.59M | 555.28M | 491.02M | 387.06M | 364.86M | 437.84M | 356.29M | 297.96M | 257.05M | 224.96M | 198.57M | 180.76M | 161.18M | 138.35M | 109.06M | 87.84M | 102.84M | 82.82M | 63.98M | 44.04M | 36.55M | 22.11M | 21.48M | 27.31M | 47.25M | 27.9M | 17.4M | 10.3M | 5.4M |
| Pretax Margin % | 21.58% | 19.92% | 17.56% | 18.71% | 22.24% | 20.75% | 20.42% | 21.3% | 20.04% | 19.54% | 18.68% | 18.93% | 17.54% | 17.92% | 17.96% | 18.09% | 17.67% | 16.32% | 17.66% | 16.3% | 16.31% | 16.33% | 16.94% | 12.53% | 12.48% | 15.95% | 23.29% | 19.75% | 18.24% | 16.17% | 15.61% |
| Income Tax | 204.6M | 148M | 118.5M | 110.9M | 100.4M | 57.3M | 29M | 78.1M | 70.6M | 90.3M | 80.9M | 71.4M | 59.8M | 56.2M | 54.5M | 42.9M | 36.7M | 28M | 35.45M | 27.53M | 20.9M | 16.1M | 10.95M | 7.87M | 4.93M | 11.48M | 19.51M | 11.6M | 6.9M | 3.3M | 1.7M |
| Effective Tax Rate % | 18.32% | 16.56% | 17.49% | 19.97% | 20.45% | 14.8% | 7.95% | 17.84% | 19.82% | 30.31% | 31.47% | 31.74% | 30.12% | 31.09% | 33.81% | 31.01% | 33.65% | 31.87% | 34.47% | 33.24% | 32.66% | 36.56% | 29.95% | 35.61% | 22.95% | 42.03% | 41.29% | 41.58% | 39.66% | 32.04% | 31.48% |
| Net Income | 847.72M | 690.38M | 514.11M | 403.6M | 351.68M | 304.22M | 313.98M | 327.9M | 259.23M | 185.99M | 156.19M | 133.36M | 121.29M | 102.4M | 85.15M | 72.82M | 54.94M | 59.84M | 67.39M | 55.29M | 43.08M | 22.81M | 20.63M | 12.22M | 15.23M | 15.83M | 26.32M | 16.3M | 10.5M | 7M | 3.7M |
| Net Margin % | 16.38% | 15.39% | 13.33% | 13.6% | 15.93% | 16.31% | 17.57% | 15.95% | 14.58% | 12.2% | 11.35% | 11.22% | 10.71% | 10.15% | 9.49% | 9.52% | 8.9% | 11.12% | 11.57% | 10.88% | 10.99% | 8.46% | 9.56% | 6.93% | 8.85% | 9.25% | 12.97% | 11.54% | 11.01% | 10.99% | 10.69% |
| Net Income Growth % | 32.09% | 34.29% | 27.38% | 14.76% | 15.6% | -3.11% | -4.24% | 26.49% | 39.38% | 19.07% | 17.12% | 9.95% | 18.45% | 20.26% | 16.93% | 32.55% | -8.2% | -11.19% | 21.89% | 28.32% | 88.86% | 10.58% | 68.79% | -19.73% | -3.83% | -39.84% | 61.45% | 55.24% | 50% | 89.19% | 37.04% |
| Net Income (Continuing) | 912.35M | 745.55M | 559.09M | 444.38M | 390.62M | 329.76M | 335.86M | 359.74M | 285.69M | 207.66M | 176.15M | 153.56M | 138.77M | 124.56M | 106.67M | 95.45M | 72.36M | 59.84M | 67.39M | 55.29M | 43.08M | 27.94M | 25.61M | 12.22M | 15.23M | 15.83M | 27.74M | 16.3M | 10.5M | 7M | 3.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 695.14M | 73.86M | 60.53M | 47.16M | 369.77M | 286.45M | 251.64M | 216.38M | 236.8M | 218.34M | 183.84M | 174.69M | 115.1M | 116.89M | 103.09M | 156.51M | 140.76M | 134.6M | 83.98M | 72.94M | 63.3M | 49.03M | 44.64M | 40.58M | 38.31M | 36.84M | 33.35M | 30M | 14.9M | 3.3M | 0 |
| EPS (Diluted) | 6.00 | 4.90 | 3.67 | 2.91 | 2.55 | 2.21 | 2.29 | 2.39 | 1.90 | 1.37 | 1.17 | 1.01 | 0.92 | 0.78 | 0.66 | 0.56 | 0.42 | 0.46 | 0.52 | 0.43 | 0.34 | 0.18 | 0.17 | 0.10 | 0.12 | 0.14 | 0.23 | 0.16 | 0.12 | 0.08 | 0.13 |
| EPS Growth % | 31.29% | 33.52% | 26.12% | 14.12% | 15.38% | -3.49% | -4.18% | 25.79% | 38.69% | 17.09% | 15.84% | 9.78% | 17.95% | 18.18% | 17.86% | 33.33% | -8.7% | -11.54% | 20.93% | 26.47% | 88.89% | 5.88% | 70% | -16.67% | -14.29% | -39.13% | 43.75% | 33.33% | 55.44% | -40.62% | -18.75% |
| EPS (Basic) | - | 4.97 | 3.71 | 2.94 | 2.59 | 2.25 | 2.33 | 2.45 | 1.96 | 1.41 | 1.19 | 1.02 | 0.93 | 0.79 | 0.66 | 0.57 | 0.44 | 0.48 | 0.54 | 0.45 | 0.36 | 0.20 | 0.18 | 0.11 | 0.13 | 0.15 | 0.26 | 0.19 | 0.15 | 0.09 | 0.13 |
| Diluted Shares Outstanding | 141.27M | 140.77M | 140.2M | 138.91M | 138.04M | 137.85M | 137.3M | 137.35M | 136.7M | 135.59M | 133.14M | 132.44M | 131.74M | 130.82M | 130.12M | 129.7M | 128.83M | 128.86M | 129.91M | 128.42M | 126.83M | 125.52M | 122.81M | 128.67M | 129.73M | 117M | 114.91M | 101.8M | 89.67M | 31.88M | 27.67M |
| Basic Shares Outstanding | 139.7M | 139.05M | 138.46M | 137.19M | 136.01M | 135.33M | 134.75M | 133.64M | 132.54M | 131.7M | 130.95M | 130.35M | 129.81M | 129.49M | 128.64M | 127.05M | 125.25M | 124.95M | 125.45M | 122.62M | 119.61M | 116.64M | 114.62M | 110.8M | 120.66M | 104.51M | 100.26M | 85.51M | 72.12M | 31.88M | 27.67M |
| Dividend Payout Ratio | - | 4.63% | 5.65% | 6.78% | 6.96% | 7.56% | 6.86% | 5.7% | 5.93% | 6.89% | 6.87% | 7.01% | 25.74% | 117.54% | 6.68% | 6.17% | 6.45% | 5.26% | 3.9% | 3.72% | 4.65% | 5.37% | 5.82% | 8.63% | 6.86% | 5.94% | 3.21% | 4.29% | 5.71% | 7.14% | 13.51% |
Quick answers to the most common questions about buying HEI stock.
For fiscal year 2025, HEICO Corporation (HEI) reported total revenue of $4.49B. This represents a 12862.6% increase compared to $34.6M in 1996.
HEICO Corporation (HEI) is profitable, generating $690.4M in net income for the fiscal year ending 2025 with a net profit margin of 15.4%.
HEICO Corporation (HEI) reported an operating income of $1.02B, resulting in an operating profit margin of 22.7%. This margin reflects the operational efficiency of the business before interest and taxes.
HEICO Corporation (HEI) generated $1.79B in gross profit for the year, representing a gross profit margin of 39.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Production cost inflation risk
Metrics are mathematically derived from official filings.
Accelerating Growth Driven by Aerospace Recovery
HEICO's revenue growth has accelerated significantly, with the most recent quarter showing 23.1% year-over-year growth, a marked increase from the 8.2% growth seen in Q4 2024, indicating a robust recovery in commercial aerospace demand.
The acceleration from single-digit growth in late 2024 to consistent double-digit growth throughout 2025 and 2026 suggests a strong cyclical upturn in flight hours and aftermarket activity. This trend appears durable, as it is supported by both organic growth and the successful integration of acquisitions, which management has highlighted as a key contributor. The sustained high growth rate implies HEICO is effectively capturing market share from OEMs and benefiting from the post-pandemic fleet utilization rebound.
Resilient Margins Amidst Inflationary Pressures
Gross margins have remained robust, averaging over 40% in recent quarters and expanding to 41.1% in Q3 2026, demonstrating strong pricing power and cost management despite broader inflationary pressures in the aerospace supply chain.
The stability and recent expansion of gross margins, particularly in the face of noted production cost risks, suggest HEICO's PMA-based business model provides a structural advantage. The company appears able to pass through increased material and labor costs to its customer base, which is captive due to the regulatory and cost-saving nature of its products. This margin resilience is a key differentiator from peers like Woodward (26.8% gross margin) and supports the investment thesis of a high-quality industrial compounder.
Strong Operating Leverage Amplifies Profit Growth
Operating income has scaled faster than gross profit, with operating margins expanding from 21.2% in mid-2024 to 25.1% in Q3 2026, indicating effective overhead absorption and SG&A discipline as revenue scales.
The 390 basis point expansion in operating margin over the last two years demonstrates significant operating leverage. This appears driven by a combination of revenue growth outpacing the growth in SG&A expenses and a decentralized model that keeps corporate overhead low. The resulting flow-through to net income is substantial, with net margins improving from 12.9% to 16.7% over the same period, highlighting management's ability to convert top-line growth into bottom-line profit.
High-Quality Earnings with Minimal Non-Operating Noise
Net income growth has consistently outpaced revenue growth, with EPS growing 31.7% in Q3 2026 on 23.1% revenue growth, suggesting high earnings quality with limited dilution from non-operating items or excessive stock-based compensation.
The strong correlation between operating income growth and net income growth indicates that earnings are driven by core operations rather than tax benefits or one-time gains. While stock-based compensation is present, it appears manageable relative to the company's scale and does not appear to be a significant drag on shareholder value. The consistent beat on EPS estimates, as seen in the recent Q4 FY2026 report, further supports the reliability of the company's earnings trajectory.
Disciplined Cost Structure with R&D Investment
SG&A expenses have been well-controlled, declining as a percentage of revenue from 17.8% in Q3 2024 to 16.1% in Q3 2026, while R&D investment, though not broken out in recent quarters, has historically been a key fixed cost for PMA certification.
The reduction in SG&A as a percentage of sales is a primary driver of the operating margin expansion and reflects the efficiency of HEICO's decentralized operational structure. The historical R&D spend, which was around 3% of revenue in 2024, represents a critical investment in the company's long-term growth engine—the FAA certification pipeline. The current absence of a reported R&D line item in recent quarters warrants monitoring to ensure this vital investment is not being curtailed.
Sustainability of Growth and Margin Expansion
The primary analytical challenge is whether the current high-teens revenue growth and rapid margin expansion are sustainable, or if they represent a cyclical peak that could normalize as the aerospace recovery matures.
Short-sellers would focus on the potential for growth deceleration as flight hours normalize and the one-time benefits of post-pandemic restocking fade. Furthermore, the rapid margin expansion could be vulnerable to a re-acceleration in raw material costs or increased competition if OEMs become more aggressive in pricing their own spare parts. The very low reported debt-to-equity ratio of 0.50% also warrants scrutiny to ensure it accurately reflects the company's current capital structure and is not masking off-balance-sheet obligations from recent acquisitions.