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HEICO Corporation (NYSE:HEI.A)(NYSE:HEI), a leading provider of aerospace and electronic products, has reported outstanding financial results for the third quarter of fiscal 2024, ending July 31, 2024. The company achieved significant growth across all key financial metrics, driven by robust demand in its commercial aerospace segment.
Record-Breaking Third Quarter Performance
HEICO's net income for the third quarter of fiscal 2024 surged by 34% to an all-time high of $136.6 million, or $0.97 per diluted share, up from $102.0 million, or $0.74 per diluted share, in the same period last year. This impressive growth underscores the company’s ability to capitalize on the ongoing recovery and expansion in the aerospace industry, particularly in commercial aviation.
Net sales for the quarter soared 37% year-over-year to a record $992.2 million, compared to $722.9 million in the third quarter of fiscal 2023. This substantial increase in sales is attributed to HEICO's continued success in capturing market share within the aerospace sector, as well as its strategic focus on innovation and customer satisfaction.
Operating income also hit a record, rising 45% to $216.4 million in the third quarter, compared to $149.4 million in the same quarter last year. The company's consolidated operating margin improved to 21.8%, up from 20.7% in the third quarter of fiscal 2023, reflecting HEICO's effective cost management and operational efficiencies.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the third quarter also experienced a significant increase, jumping 45% to $261.4 million, compared to $179.8 million in the third quarter of fiscal 2023. This robust growth in EBITDA further highlights the company's strong operational performance and its ability to generate substantial cash flow.
Strong Nine-Month Financial Performance
For the first nine months of fiscal 2024, HEICO's net income rose 25% to a record $374.4 million, or $2.67 per diluted share, up from $300.2 million, or $2.17 per diluted share, in the same period last year. This increase was fueled by a 40% rise in net sales, which reached a record $2,844.0 million, compared to $2,031.7 million in the first nine months of fiscal 2023.
Operating income for the first nine months of fiscal 2024 also reached a new high, climbing 39% to $605.8 million, up from $435.9 million in the previous fiscal year. The company's consolidated operating margin for this period was 21.3%, slightly down from 21.5% in the first nine months of fiscal 2023, due to the impact of higher costs associated with the rapid expansion.
EBITDA for the first nine months of fiscal 2024 increased by 41% to $738.3 million, compared to $524.1 million in the same period last year. This continued growth in EBITDA reflects the company’s strong financial discipline and its ability to leverage economies of scale as sales volumes increase.
Commercial Aerospace Segment Drives Growth
HEICO’s commercial aerospace segment continues to be a key driver of its financial success. The company has now achieved sixteen consecutive quarters of sequential growth in net sales within its Flight Support Group, highlighting the sustained recovery and growth in global air travel and the associated demand for aerospace products and services.
