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Research Alert: Heico Corporation Q2 Fy26: Eps And Revenue Beat, Organic Growth Acceleration

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

HEICO posted strong Q2 FY26 results, with EPS of $1.66 (up 48% Y/Y) beating consensus by $0.32, led by 18% consolidated organic growth and net sales rising 26% to $1.38B (10% above consensus). Net income surged 49% to $233.8M, demonstrating genuine market share capture with both segments posting double-digit organic expansion. The results validate our view that secular tailwinds aging commercial fleets, elevated OEM costs, and supply chain diversification continue enhancing HEICO's PMA market value proposition. ETG's margin recovery materialized as management predicted, with operating margins expanding to 26.5% from 22.8% in the prior year. We believe HEICO's operational leverage capabilities remain strong, with consolidated operating margins improving 290 basis points Y/Y to 25.5%. The company's balance sheet flexibility supports continued M&A execution, with operating cash flow up 43% to $292.0M and net debt-to-EBITDA at a manageable 1.74x following four acquisitions in the first half of fiscal 2026.

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