Image source: Heico Corp.

Last year's acquisitions have driven Heico Corp (HEI +0.84%) to new heights this year, and there doesn't seem to be anything stopping the company's progress. Fiscal second-quarter 2016 results released after the market closed on Wednesday showed strong organic growth and a big addition from acquisitions made over the past year. Here's what you need to know.

Heico Corp results: The raw numbers

Data source: Company earnings release. YOY = year over year.

What happened with Heico Corp this quarter?

Growth was felt broadly for the company, and both operating segments reported organic growth. Cash flow generation was very strong, helping give flexibility for future acquisitions or growth plans if management sees new opportunities. 

• Cash flow from operations jumped 58% to $102.7 million for the first six months of the fiscal year, which is 147% of net income.
• Flight support group results were driven by acquisitions made last year mixed with organic growth. For the quarter, sales grew 9% to $220.3 million, including 4% organic growth. Operating income increased 10% to $41.3 million.
• The electronic technologies group saw a 46% jump in sales to $132.6 million, including 12% organic growth. Operating income jumped 50% to $33.4 million in the quarter.
• Heico Corp ended the quarter with $526.1 million in net debt with no maturities until 2019.
• Growth for the remainder of the year is expected to be dominated by the electronic technologies group, which expects 29%-32% top-line growth for the fiscal year.

What management had to say

Management was very bullish that organic growth and acquisitions would continue to drive solid results during the second half of the year. As a result, sales growth guidance was increased a percentage point to 15%-17%, and net income growth guidance was increased from 10%-13% to 12%-14%.

Gains in the aftermarket replacement parts business are expected to be offset by slow demand for component repairs and overhauls. But overall, that's the worst thing management had to say about expected performance this year.

With a larger product base after going on a buying spree last year, management said it will "focus on new product development, further market penetration, executing our acquisition strategies and maintaining our financial strength." More acquisitions weren't ruled out, either, so management may be emboldened by the strength from previous deals.

Looking forward

With growth expectations rising for the year, it looks like Heico Corp is hitting on all cylinders. What investors should watch is the level of organic growth for the remainder of the year, especially in the electronic technologies group, where organic growth in double digits may be at a peak.

Acquisitions could also continue to play a role in the company's future. Consolidation in the aviation and electronics supply businesses seems to be a common theme right now, and Heico Corp may be one of the most capable buyers in the market.