HEICO (HEI) Stock Forecast & Price Target

Heico's financial performance demonstrates a robust trajectory, with total sales for fiscal 3Q25 increasing by 16% year-over-year to reach $1,147.6 million, significantly exceeding consensus estimates by 2.9%. The Flight Support Group (FSG) reported an 18% increase in sales year-over-year, driven by strong demand in the aerospace aftermarket and ongoing acquisitions, while the Electronic Technologies Group (ETG) also showed a healthy performance with a 10% rise in sales year-over-year. This consistent growth across both business segments underscores Heico's resilient market position within the aerospace and defense sectors, making a compelling case for a favorable future outlook.

Heico's Electronic Technologies Group (ETG) segment experienced a year-over-year decline in operating margins, decreasing by 80 basis points to 22.8%, primarily due to increased stock-based compensation. Despite reporting an earnings per share (EPS) of $1.26, which exceeded Wall Street estimates, the high demand and scarcity in other channels have not mitigated concerns regarding overarching destocking trends within the company's portfolio. The combination of narrowing margins in the ETG segment and reliance on acquisition-driven growth introduces significant risk factors that could negatively impact Heico's long-term financial stability.