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.
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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.
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. 
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.
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.
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.
Is HEICO an attractive investment opportunity 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).
