HEICO (NYSE:HEI) Beats Q4 CY2025 Sales Expectations But Stock Drops

HEICO (NYSE:HEI) Beats Q4 CY2025 Sales Expectations But Stock Drops

Petr Huřťák

Thu, February 26, 2026 at 7:40 AM GMT+9 4 min read

In this article:

•                                       StockStory Top Pick 
  

  HEI

  -1.69%

 HEI-A  

 -2.47%  

Aerospace and defense company HEICO (NSYE:HEI) reported Q4 CY2025 results exceeding the market’s revenue expectations , with sales up 14.4% year on year to $1.18 billion. Its GAAP profit of $1.35 per share was 5.1% above analysts’ consensus estimates.

Is now the time to buy HEICO? Find out in our full research report.

HEICO (HEI) Q4 CY2025 Highlights:

**Revenue:** $1.18 billion vs analyst estimates of $1.17 billion (14.4% year-on-year growth, 1.1% beat)

**EPS (GAAP):** $1.35 vs analyst estimates of $1.29 (5.1% beat, but would have missed excluding "a discrete income tax benefit from stock option exercises")

**Adjusted EBITDA:** $312 million vs analyst estimates of $313.5 million (26.5% margin, in line)

**Operating Margin:** 22.1%, in line with the same quarter last year

**Free Cash Flow Margin:** 14%, down from 18% in the same quarter last year

**Market Capitalization:** $41.19 billion

Company Overview

Founded in 1957, HEICO (NYSE:HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, HEICO’s 22.2% annualized revenue growth over the last five years was incredible. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis.

HEICO Quarterly Revenue

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. HEICO’s annualized revenue growth of 19.5% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

HEICO Year-On-Year Revenue Growth

This quarter, HEICO reported year-on-year revenue growth of 14.4%, and its $1.18 billion of revenue exceeded Wall Street’s estimates by 1.1%.

Looking ahead, sell-side analysts expect revenue to grow 10.2% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is commendable and implies the market is forecasting success for its products and services.

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Operating Margin

HEICO has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 21.9%.

Analyzing the trend in its profitability, HEICO’s operating margin rose by 1.5 percentage points over the last five years, as its sales growth gave it operating leverage.

HEICO Trailing 12-Month Operating Margin (GAAP)

In Q4, HEICO generated an operating margin profit margin of 22.1%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

HEICO’s astounding 21.5% annual EPS growth over the last five years aligns with its revenue performance. This tells us its incremental sales were profitable.

HEICO Trailing 12-Month EPS (GAAP)

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

HEICO’s two-year annual EPS growth of 28.7% was fantastic and topped its 19.5% two-year revenue growth.

We can take a deeper look into HEICO’s earnings to better understand the drivers of its performance. While we mentioned earlier that HEICO’s operating margin was flat this quarter, a two-year view shows its margin has expanded. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q4, HEICO reported EPS of $1.35, up from $1.20 in the same quarter last year. This print beat analysts’ estimates by 5.1%. Over the next 12 months, Wall Street expects HEICO’s full-year EPS of $5.06 to grow 13.3%.

Key Takeaways from HEICO’s Q4 Results

It was good to see HEICO narrowly top analysts’ revenue expectations this quarter. However, EPS missed if a favorable tax impact is included. Investors were likely hoping for more, and shares traded down 7.3% to $319.50 immediately after reporting.

So do we think HEICO is an attractive buy at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.

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