Why Heico Stock Is Up Today

Key Points

• Heico easily topped quarterly expectations, growing operating income by 22% year over year.

• The company continues to see strong demand for its aerospace components, and is well positioned to make further acquisitions as opportunities arise.

• 10 stocks we like better than Heico ›

Aerospace parts manufacturer Heico (NYSE: HEI) delivered better-than-expected quarterly results and forecast broad-based growth up ahead. Investors are pleased, sending shares of Heico up 7% as of 11:30 a.m. ET.

Image source: Getty Images.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Strong quarterly results

Heico is a manufacturer of components for a range of industrial applications, with a heavy emphasis on aerospace. The company earned $1.26 per share in its fiscal third quarter ending July 31 on revenue of $1.15 billion, topping Wall Street's $1.14 per share on $1.12 billion consensus estimate.

Revenue was up nearly 16% year over year, and operating income increased by 22%. The company also reported a 23.1% operating margin, up from 21.8% a year ago.

Total debt fell to 3.81 times net income in the quarter, down from 4.34 times net income on Oct. 31, 2024. Heico has historically used acquisitions to supplement growth, and the company's balance sheet gives it the ability to be opportunistic if opportunities arise.

Is Heico stock a buy?

Heico has now grown commercial aerospace sales for 20 consecutive quarters. Airlines are maxing out their fleets in response to strong travel demand, causing a need for more spare parts.

In a statement, company co-CEOs Eric and Victor Mendelson said "we remain confident" Heico can continue to grow both its aerospace and nonaerospace units.

Heico has used this formula to become one of the top-performing aerospace stocks over time, up 1,160% over the past decade.

These latest results show nothing to suggest the momentum can't continue, making Heico a top choice for investors seeking exposure to the aerospace market.

Should you invest $1,000 in Heico right now?

Before you buy stock in Heico, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Heico wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $656,895!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,102,148!*

Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 184% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Heico. The Motley Fool has a disclosure policy.