Heico reported record-breaking revenue, net income, and operating income in the fourth quarter, yet its overall sales fell short of expectations, causing a drop in share prices.
The company’s Electronic Technologies Group experienced a 2% decline in sales to $336.2 million, which was attributed to lower defense products net sales and slightly lower net sales of other electronics products by Unit President Victor Mendelson.
Despite the setback, Heico’s Flight Support Group saw a 15% increase in revenue to $691.8 million, driven by strong aftermarket replacement parts sales and contributions from recent acquisitions in fiscal 2023 and 2024.
In the previous quarter, the Flight Support Group also recorded a significant rise in sales, while the Electronic Technologies Group faced a decline.
Warren Buffett’s Berkshire Hathaway increased its stake in Heico, purchasing over a million shares in the second quarter, with a third-quarter stake worth over $200 million.
Despite an 8% drop in shares on Wednesday morning, Heico’s stock has seen a 33% increase year-to-date.