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Core Viewpoint - HEICO Corporation (HEI) benefits from its aircraft aftermarket services and strategic acquisitions, contributing to its steady growth and making it a solid investment option in the Zacks Aerospace Defense Equipment industry [1] Growth Projection & Surprise History - The Zacks Consensus Estimate for HEI's fiscal 2025 earnings per share (EPS) has increased by 1.1% to $4.62 per share over the past 30 days [2] - The Zacks Consensus Estimate for fiscal 2025 revenues is projected at $4.38 billion, indicating a rise of 13.5% [2] - The company's long-term earnings growth rate is 17.6%, and it has consistently surpassed expectations with an average earnings surprise of 13.35% over the last four quarters [2] Return on Equity - HEICO's return on equity (ROE) stands at 16.29%, significantly higher than the industry's average of 8.56%, indicating more efficient utilization of shareholders' funds [3] Debt Profile - HEICO's total debt to capital ratio is 36.75%, better than the industry's average of 49.24% [4] - The times interest earned ratio at the end of the third quarter of fiscal 2025 was 7.3, reflecting the company's strong ability to meet future interest obligations [4] Liquidity Position - HEICO's current ratio at the end of the third quarter of fiscal 2025 was 3.35, well above the industry's average of 1.80, indicating strong short-term liquidity [5][8] Expansion Through Acquisitions - In July 2025, HEICO completed the acquisition of Gables Engineering, enhancing its presence in the aerospace OEM manufacturing and aftermarket services market [6] - In April 2025, HEICO acquired Rosen Aviation, which is expected to enhance its product offerings in in-flight entertainment products [7] - These acquisitions are projected to expand and diversify HEICO's product portfolio and enhance its customer base, supporting revenue and cash flow growth [9] Stock Performance - Over the past year, HEI shares have increased by 25.1%, outperforming the sector's growth of 19.7% [10]

[General Information](index=1&type=section&id=General%20Information) Provides an overview of HEICO Corporation's Form 10-Q filing, registration, stock information, and shares outstanding [Company and Filing Details](index=1&type=section&id=Company%20and%20Filing%20Details) HEICO Corporation's Form 10-Q filing details its registration, stock information, and shares outstanding - HEICO Corporation filed a Quarterly Report on Form 10-Q for the period ended July 31, 2025[1](index=1&type=chunk) - The company's Common Stock (HEI) and Class A Common Stock (HEI.A) are registered on the New York Stock Exchange[3](index=3&type=chunk) - HEICO Corporation is classified as a **large accelerated filer**[4](index=4&type=chunk) Shares Outstanding as of August 25, 2025 | Class of Stock | Shares Outstanding | | :--------------- | :----------------- | | Common Stock | 55,053,674 shares | | Class A Common Stock | 84,152,807 shares | [Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) Presents HEICO's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and detailed notes [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents HEICO's unaudited condensed consolidated financial statements and detailed notes for the periods ended July 31, 2025, and October 31, 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents HEICO's condensed consolidated balance sheets as of July 31, 2025, and October 31, 2024 Condensed Consolidated Balance Sheets (in thousands) | Item | July 31, 2025 | October 31, 2024 | | :--------------------------------- | :------------ | :--------------- | | **ASSETS** | | | | Total current assets | $2,386,027 | $2,062,292 | | Property, plant and equipment, net | 437,635 | 339,034 | | Goodwill | 3,646,106 | 3,380,295 | | Intangible assets, net | 1,513,525 | 1,334,774 | | Total assets | **$8,531,623**| **$7,592,822** | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | 711,316 | 663,851 | | Long-term debt, net | 2,443,898 | 2,225,267 | | Total liabilities | 3,881,583 | 3,529,260 | | Total shareholders' equity | 4,212,453 | 3,697,406 | | Total liabilities and equity | **$8,531,623**| **$7,592,822** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Presents HEICO's condensed consolidated statements of operations for the nine and three months ended July 31, 2025, and 2024 Condensed Consolidated Statements of Operations (in thousands, except per share data) | Item | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | Three months ended July 31, 2025 | Three months ended July 31, 2024 | | :----------------------------------- | :------------------------------ | :------------------------------ | :------------------------------- | :------------------------------- | | Net sales | $3,275,633 | $2,844,004 | $1,147,591 | $992,246 | | Operating income | 739,976 | 605,809 | 265,019 | 216,446 | | Net income attributable to HEICO | $502,089 | $374,421 | $177,341 | $136,577 | | Net income per share attributable to HEICO shareholders: | | | | | | Basic | $3.61 | $2.71 | $1.27 | $.99 | | Diluted | $3.57 | $2.67 | $1.26 | $.97 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Presents HEICO's condensed consolidated statements of comprehensive income for the nine and three months ended July 31, 2025, and 2024 Condensed Consolidated Statements of Comprehensive Income (in thousands) | Item | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | Three months ended July 31, 2025 | Three months ended July 31, 2024 | | :----------------------------------- | :------------------------------ | :------------------------------ | :------------------------------- | :------------------------------- | | Net income from consolidated operations | $542,769 | $408,200 | $190,680 | $147,817 | | Total other comprehensive income | 27,167 | 11,611 | 888 | 6,967 | | Comprehensive income attributable to HEICO | $529,047 | $385,656 | $178,634 | $143,309 | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%27%20Equity) Presents HEICO's condensed consolidated statements of shareholders' equity for the nine months ended July 31, 2025, and 2024 - Total HEICO shareholders' equity increased to **$4.14 billion** as of July 31, 2025, from $3.64 billion as of October 31, 2024[14](index=14&type=chunk) - Comprehensive income attributable to HEICO for the nine months ended July 31, 2025, was **$502.1 million**, contributing significantly to the equity increase[14](index=14&type=chunk) - Cash dividends of **$0.23 per share** were paid during the nine months ended July 31, 2025, totaling **$32.0 million**[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Presents HEICO's condensed consolidated statements of cash flows for the nine months ended July 31, 2025, and 2024 Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :----------------------------------- | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $638,940 | $466,747 | | Net cash used in investing activities | (697,694) | (112,150) | | Net cash provided by (used in) financing activities | 155,249 | (324,047) | | Net increase in cash and cash equivalents | 99,785 | 31,892 | | Cash and cash equivalents at end of period | $261,888 | $202,940 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed notes to HEICO's condensed consolidated financial statements, covering accounting policies, acquisitions, and other disclosures [Note 1. Summary of Significant Accounting Policies](index=9&type=section&id=Note%201.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines HEICO's significant accounting policies and the basis of financial statement preparation - The unaudited condensed consolidated financial statements are prepared in conformity with GAAP for interim financial information and Form 10-Q instructions, and should be read with the annual Form 10-K[18](index=18&type=chunk) - HEICO operates with two segments: the **Flight Support Group (FSG)** and the **Electronic Technologies Group (ETG)**[19](index=19&type=chunk) - New FASB ASUs (2023-07, 2023-09, 2024-03) on segment reporting, income taxes, and expense disaggregation are being evaluated for disclosure impact but are not expected to affect consolidated results, financial position, or cash flows[20](index=20&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) [Note 2. Acquisitions](index=10&type=section&id=Note%202.%20Acquisitions) Details HEICO's acquisitions completed in fiscal 2025, including consideration and asset allocation - In fiscal 2025, HEICO completed several acquisitions, including SVM Private Limited (70%), exclusive license/assets from Honeywell International for Boeing 777 AIMS and 737NG/P-8/E-7 VIA, Millennium International, LLC (90%), Rosen Aviation, LLC (100%), and Gables Engineering, Inc. (100%)[24](index=24&type=chunk)[25](index=25&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) Aggregate Total Consideration for Fiscal 2025 Acquisitions (in thousands) | Item | Amount | | :-------------------------- | :------- | | Cash paid, net | $629,890 | | Issuance of common stock | 10,123 | | Contingent consideration | 11,509 | | Additional purchase consideration | (129) | | **Total consideration** | **$651,393** | Allocation of Aggregate Total Consideration for Fiscal 2025 Acquisitions (in thousands) | Assets Acquired | Amount | | :------------------------ | :------- | | Goodwill | $252,172 | | Customer relationships | 157,487 | | Property, plant and equipment | 91,530 | | Intellectual property | 90,125 | | Inventories | 81,353 | | Trade names | 29,946 | | Other assets | 31,516 | | Liabilities assumed | (54,786) | | Noncontrolling interests | (27,950) | | **Net assets acquired, excluding cash** | **$651,393** | [Note 3. Selected Financial Statement Information](index=13&type=section&id=Note%203.%20Selected%20Financial%20Statement%20Information) Provides selected financial statement information, including accounts receivable, inventories, and redeemable noncontrolling interests Selected Financial Statement Information (in thousands) | Item | July 31, 2025 | October 31, 2024 | | :----------------------------------- | :------------ | :--------------- | | Accounts receivable, net | $597,622 | $538,487 | | Inventories, net | $1,310,393 | $1,170,949 | | Property, plant and equipment, net | $437,635 | $339,034 | | Accrued customer rebates and credits | $29,400 | $24,300 | | R&D expenses (9 months) | $88,275 | $82,810 | | Redeemable noncontrolling interests | $437,587 | $366,156 | | Accumulated other comprehensive income (loss) | $882 | ($26,076) | - The company has various Put Rights with noncontrolling interest holders, which may require the company to purchase their equity interests through fiscal 2034[38](index=38&type=chunk) [Note 4. Goodwill and Other Intangible Assets](index=16&type=section&id=Note%204.%20Goodwill%20and%20Other%20Intangible%20Assets) Details changes in goodwill by segment and the net carrying amount of identifiable intangible assets Goodwill by Operating Segment (in thousands) | Segment | October 31, 2024 | Goodwill Acquired (FY25) | July 31, 2025 | | :------ | :--------------- | :----------------------- | :------------ | | FSG | $1,882,558 | $110,301 | $1,995,261 | | ETG | $1,497,737 | $141,871 | $1,650,845 | | **Consolidated Totals** | **$3,380,295** | **$252,172** | **$3,646,106**| Identifiable Intangible Assets (Net Carrying Amount, in thousands) | Asset Type | July 31, 2025 | October 31, 2024 | | :-------------------- | :------------ | :--------------- | | Customer relationships | $792,103 | $706,316 | | Intellectual property | 396,254 | 334,328 | | Trade names | 324,563 | 293,263 | | Other | 605 | 867 | | **Total Net Carrying Amount** | **$1,513,525**| **$1,334,774** | - Amortization expense for intangible assets was **$101.7 million** for the nine months ended July 31, 2025, up from $91.5 million in the prior year[50](index=50&type=chunk) [Note 5. Long-Term Debt](index=17&type=section&id=Note%205.%20Long-Term%20Debt) Provides details on HEICO's long-term debt, including revolving credit facilities and senior unsecured notes Long-Term Debt (in thousands) | Item | July 31, 2025 | October 31, 2024 | | :----------------------------------- | :------------ | :--------------- | | Borrowings under revolving credit facility | $1,235,000 | $1,015,000 | | 2028 senior unsecured notes | 600,000 | 600,000 | | 2033 senior unsecured notes | 600,000 | 600,000 | | Finance leases and notes payable | 23,034 | 26,133 | | Less: Debt discount and debt issuance costs | (10,411) | (11,759) | | Less: Current maturities of long-term debt | (3,725) | (4,107) | | **Total Long-Term Debt, net of current maturities** | **$2,443,898**| **$2,225,267** | - The weighted average interest rate on borrowings under the revolving credit facility decreased to **5.7%** as of July 31, 2025, from 6.3% as of October 31, 2024[52](index=52&type=chunk) Fair Value of Senior Unsecured Notes (in thousands) | Notes | Carrying Value (Jul 31, 2025) | Fair Value (Jul 31, 2025) | Carrying Value (Oct 31, 2024) | Fair Value (Oct 31, 2024) | | :---------- | :---------------------------- | :------------------------ | :---------------------------- | :------------------------ | | 2028 Notes | $596,137 | $612,502 | $595,267 | $609,376 | | 2033 Notes | 593,452 | 612,235 | 592,974 | 605,917 | | **Total** | **$1,189,589** | **$1,224,737** | **$1,188,241** | **$1,215,293** | [Note 6. Revenue](index=19&type=section&id=Note%206.%20Revenue) Details contract balances, remaining performance obligations, and net sales by operating segment Contract Balances (in thousands) | Item | July 31, 2025 | October 31, 2024 | Change | | :-------------------- | :------------ | :--------------- | :----- | | Contract assets, current | $132,963 | $112,235 | $20,728 | | Total contract liabilities | (173,497) | (145,746) | (27,751) | - Remaining performance obligations (backlog) totaled **$2.06 billion** as of July 31, 2025, with $625.5 million expected to be recognized in the remainder of fiscal 2025 and $1.44 billion thereafter[59](index=59&type=chunk) Net Sales by Operating Segment (in thousands) | Segment | 9 months ended July 31, 2025 | 9 months ended July 31, 2024 | 3 months ended July 31, 2025 | 3 months ended July 31, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Flight Support Group | $2,282,905 | $1,947,574 | $802,661 | $681,626 | | Electronic Technologies Group | $1,028,345 | $927,393 | $355,863 | $322,129 | | **Total consolidated net sales** | **$3,275,633** | **$2,844,004** | **$1,147,591** | **$992,246** | [Note 7. Income Taxes](index=22&type=section&id=Note%207.%20Income%20Taxes) Discusses HEICO's effective tax rates and the impact of recent tax law changes - The effective tax rate for the first nine months of fiscal 2025 decreased to **16.0%** from 17.3% in the prior year, primarily due to a larger tax benefit from stock option exercises (**$27.2 million** in 2025 vs. $13.6 million in 2024)[62](index=62&type=chunk)[95](index=95&type=chunk) - The effective tax rate for the third quarter of fiscal 2025 increased to **18.9%** from 18.0% in the prior year, mainly due to the prior year's favorable impact from contingent consideration reversal and a larger R&D tax credit[63](index=63&type=chunk)[107](index=107&type=chunk) - The company is evaluating the impact of the recently enacted H.R. 1, 'One Big Beautiful Bill Act,' which introduces significant changes to U.S. tax law[64](index=64&type=chunk) [Note 8. Fair Value Measurements](index=23&type=section&id=Note%208.%20Fair%20Value%20Measurements) Details fair value measurements of liabilities, particularly contingent consideration, and valuation inputs Fair Value Measurements of Liabilities (in thousands) | Item | July 31, 2025 | October 31, 2024 | | :------------------------ | :------------ | :--------------- | | Contingent consideration (Level 3) | $42,252 | $30,207 | - The estimated fair values of contingent consideration arrangements are classified within **Level 3** and determined using a probability-based scenario analysis approach[70](index=70&type=chunk) - Unobservable inputs used for Level 3 contingent consideration liabilities include compound annual revenue growth rates (ranging from **-2% to 22%**) and discount rates (ranging from **7.2% to 7.8%**)[72](index=72&type=chunk) [Note 9. Net Income Per Share Attributable to HEICO Shareholders](index=26&type=section&id=Note%209.%20Net%20Income%20Per%20Share%20Attributable%20to%20HEICO%20Shareholders) Presents basic and diluted net income per share attributable to HEICO shareholders Net Income Per Share Attributable to HEICO Shareholders | Item | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | Three months ended July 31, 2025 | Three months ended July 31, 2024 | | :----------------------------------- | :------------------------------ | :------------------------------ | :------------------------------- | :------------------------------- | | Basic EPS | $3.61 | $2.71 | $1.27 | $.99 | | Diluted EPS | $3.57 | $2.67 | $1.26 | $.97 | [Note 10. Operating Segments](index=27&type=section&id=Note%2010.%20Operating%20Segments) Provides financial information by operating segment, including operating income and total assets Operating Income by Segment (in thousands) | Segment | 9 months ended July 31, 2025 | 9 months ended July 31, 2024 | 3 months ended July 31, 2025 | 3 months ended July 31, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Flight Support Group | $549,422 | $438,561 | $198,326 | $153,594 | | Electronic Technologies Group | $235,334 | $206,379 | $80,998 | $75,788 | | **Consolidated Operating income** | **$739,976** | **$605,809** | **$265,019** | **$216,446** | Total Assets by Operating Segment (in thousands) | Segment | July 31, 2025 | October 31, 2024 | | :-------------------------- | :------------ | :--------------- | | Flight Support Group | $4,605,036 | $4,264,360 | | Electronic Technologies Group | $3,447,101 | $2,981,326 | | Other, Primarily Corporate | $479,486 | $347,136 | | **Consolidated Total assets** | **$8,531,623**| **$7,592,822** | [Note 11. Commitments and Contingencies](index=28&type=section&id=Note%2011.%20Commitments%20and%20Contingencies) Details HEICO's outstanding commitments, product warranty liabilities, and legal contingencies - As of July 31, 2025, the Company had **$6.7 million** in outstanding standby letters of credit and guarantees[77](index=77&type=chunk) - The product warranty liability increased to **$4.8 million** as of July 31, 2025, from $4.0 million at the beginning of the fiscal year[78](index=78&type=chunk) - Management believes that the outcome of current legal actions will not have a material adverse effect on the Company's financial position or results of operations[79](index=79&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes HEICO's financial performance, condition, liquidity, and outlook for the nine and three months ended July 31, 2025 [Overview](index=29&type=section&id=Overview) Provides an overview of HEICO's two operating segments and the impact of recent acquisitions on results - HEICO's business is comprised of two operating segments: the **Flight Support Group (FSG)** and the **Electronic Technologies Group (ETG)**[82](index=82&type=chunk) - Results of operations for the reported periods have been affected by fiscal 2024 and 2025 acquisitions[83](index=83&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Presents consolidated financial highlights for the nine and three months ended July 31, 2025, and 2024 Consolidated Financial Highlights (9 months ended July 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | % of Net Sales (2025) | % of Net Sales (2024) | | :----------------------------------- | :------------------ | :------------------ | :-------------------- | :-------------------- | | Net sales | $3,275,633 | $2,844,004 | 100.0% | 100.0% | | Gross profit margin | 39.7% | 39.0% | | | | Selling, general and administrative expenses | 17.1% | 17.7% | | | | Operating income | $739,976 | $605,809 | 22.6% | 21.3% | | Net income attributable to HEICO % of net sales | 15.3% | 13.2% | | | Consolidated Financial Highlights (3 months ended July 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | % of Net Sales (2025) | % of Net Sales (2024) | | :----------------------------------- | :------------------ | :------------------ | :-------------------- | :-------------------- | | Net sales | $1,147,591 | $992,246 | 100.0% | 100.0% | | Gross profit margin | 39.8% | 39.2% | | | | Selling, general and administrative expenses | 16.7% | 17.4% | | | | Operating income | $265,019 | $216,446 | 23.1% | 21.8% | | Net income attributable to HEICO % of net sales | 15.5% | 13.8% | | | [Comparison of First Nine Months of Fiscal 2025 to First Nine Months of Fiscal 2024](index=31&type=section&id=Comparison%20of%20First%20Nine%20Months%20of%20Fiscal%202025%20to%20First%20Nine%20Months%20of%20Fiscal%202024) Compares HEICO's consolidated financial performance for the first nine months of fiscal 2025 and 2024 - Consolidated net sales increased **15%** to a record **$3.28 billion**, driven by strong organic growth in both FSG (**13%**) and ETG (**7%**), supplemented by acquisitions[85](index=85&type=chunk) - Consolidated gross profit margin improved to **39.7%** from 39.0%, primarily due to a 1.4% increase in FSG's gross profit margin[86](index=86&type=chunk) - Consolidated SG&A expenses as a percentage of net sales improved to **17.1%** from 17.7%, reflecting efficiencies from net sales growth[88](index=88&type=chunk) - Consolidated operating income increased **22%** to a record **$740.0 million**, with FSG operating income up 25% and ETG operating income up 14%[90](index=90&type=chunk) - Net income attributable to HEICO increased **34%** to a record **$502.1 million**, or **$3.57 per diluted share**[97](index=97&type=chunk) [Comparison of Third Quarter of Fiscal 2025 to Third Quarter of Fiscal 2024](index=33&type=section&id=Comparison%20of%20Third%20Quarter%20of%20Fiscal%202025%20to%20Third%20Quarter%20of%20Fiscal%202024) Compares HEICO's consolidated financial performance for the third quarter of fiscal 2025 and 2024 - Consolidated net sales increased **16%** to a record **$1.15 billion**, with FSG sales up 18% and ETG sales up 10%[98](index=98&type=chunk) - Consolidated gross profit margin improved to **39.8%** from 39.2%, mainly due to a 1.4% increase in FSG's gross profit margin[99](index=99&type=chunk) - Consolidated SG&A expenses as a percentage of net sales improved to **16.7%** from 17.4%, driven by efficiencies from net sales growth[101](index=101&type=chunk) - Consolidated operating income increased **22%** to a record **$265.0 million**, with FSG operating income up 29% and ETG operating income up 7%[102](index=102&type=chunk) - Net income attributable to HEICO increased **30%** to a record **$177.3 million**, or **$1.26 per diluted share**[109](index=109&type=chunk) [Outlook](index=36&type=section&id=Outlook) Discusses HEICO's expectations for future net sales growth and long-term financial strategy - HEICO is confident in achieving net sales growth across both FSG and ETG segments, driven by continued organic demand and recently completed acquisitions[110](index=110&type=chunk) - The company's financial strategy focuses on maximizing long-term shareholder value through strategic acquisitions, organic growth, market share gains, and maintaining a strong financial position[110](index=110&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Analyzes HEICO's cash flow activities, capital expenditures, debt, and compliance with covenants - Principal uses of cash include acquisitions, interest payments, capital expenditures, cash dividends, distributions to noncontrolling interests, and working capital needs[111](index=111&type=chunk) - Anticipated fiscal 2025 capital expenditures are approximately **$65 million to $70 million**[111](index=111&type=chunk) - The total debt to shareholders' equity ratio was **58.1%** as of July 31, 2025, and the company was in compliance with all debt covenants[111](index=111&type=chunk) - Net cash provided by operating activities increased **37%** to **$638.9 million** for the first nine months of fiscal 2025, up from $466.7 million in the prior year[114](index=114&type=chunk) - Net cash used in investing activities totaled **$697.7 million**, primarily for acquisitions (**$629.9 million**) and capital expenditures (**$46.0 million**)[115](index=115&type=chunk) - Net cash provided by financing activities was **$155.2 million**, including **$495.0 million** in revolving credit facility borrowings, partially offset by payments, dividends, and distributions[116](index=116&type=chunk) [Guarantor Group Summarized Financial Information](index=37&type=section&id=Guarantor%20Group%20Summarized%20Financial%20Information) Provides summarized financial information for the Guarantor Group subsidiaries backing HEICO's senior notes - HEICO's **$600 million** 2028 Senior Notes and **$600 million** 2033 Senior Notes are fully and unconditionally guaranteed by the 'Guarantor Group' subsidiaries[119](index=119&type=chunk) Guarantor Group Summarized Financial Information (in thousands) | Item | July 31, 2025 | October 31, 2024 | | :----------------------------------- | :------------ | :--------------- | | Current assets (excluding net intercompany receivable from non-guarantor subsidiaries) | $1,881,632 | $1,642,341 | | Noncurrent assets | 4,966,866 | 4,627,711 | | Current liabilities (excluding net intercompany payable to non-guarantor subsidiaries) | 594,466 | 546,677 | | Noncurrent liabilities | 3,064,155 | 2,793,193 | | Redeemable noncontrolling interests | 314,394 | 243,277 | | Noncontrolling interests | 60,250 | 49,900 | - Guarantor Group net sales for the nine months ended July 31, 2025, were **$2.77 billion**[128](index=128&type=chunk) [Forward-Looking Statements](index=40&type=section&id=Forward-Looking%20Statements) Highlights the inherent risks and uncertainties associated with forward-looking statements in the report - Statements in the report that are not historical facts are forward-looking and involve risks, uncertainties, and contingencies[129](index=129&type=chunk) - Factors that could cause actual results to differ materially include public health threats, liquidity, airline purchasing decisions, product costs, governmental demands, competition, new product introduction, manufacturing difficulties, cybersecurity events, acquisitions, and economic conditions[129](index=129&type=chunk)[130](index=130&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statement, except as required by applicable law[130](index=130&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in HEICO's market risk sensitivity assessment since the October 31, 2024, Annual Report on Form 10-K - There have been no material changes in HEICO's assessment of sensitivity to market risk since the disclosures in the Annual Report on Form 10-K for the year ended October 31, 2024[131](index=131&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded HEICO's disclosure controls were effective as of July 31, 2025, with no material changes in internal control over financial reporting - Management, with the participation of Co-CEOs and CFO, concluded that HEICO's disclosure controls and procedures were effective as of July 31, 2025[132](index=132&type=chunk) - No material changes in internal control over financial reporting occurred during the third quarter ended July 31, 2025[133](index=133&type=chunk) [Part II. Other Information](index=42&type=section&id=Part%20II.%20Other%20Information) Presents other information, including details on trading arrangements, exhibits, and report signatures [Item 5. Other Events](index=42&type=section&id=Item%205.%20Other%20Events) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the third quarter - No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the third quarter ended July 31, 2025[136](index=136&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) Lists all exhibits accompanying the Form 10-Q, including subsidiary guarantors and various certifications - Exhibits include Subsidiary Guarantors, Rule 13a-14(a)/15d-14(a) Certifications, Section 1350 Certifications, and Inline XBRL documents[137](index=137&type=chunk) [Signatures](index=43&type=section&id=Signatures) The Form 10-Q report was officially signed by HEICO Corporation's CFO and Chief Accounting Officer on August 27, 2025 - The report was signed by Carlos L. Macau, Jr., Executive Vice President - Chief Financial Officer and Treasurer, and Bradley K. Rowen, Chief Accounting Officer and Assistant Treasurer[142](index=142&type=chunk) - The signing date for the report was August 27, 2025[142](index=142&type=chunk)

Financial Data and Key Metrics Changes - Consolidated net income increased by 30% to a record $177.3 million or $1.26 per diluted share in 2025, up from $136.6 million or $0.97 per diluted share in 2024 [7][8] - Consolidated operating income and net sales for Q3 2025 increased by 22% and 21% respectively compared to 2024 [8] - Cash flow from operating activities increased by 8% to $231.2 million in 2025, representing 130% of net income [9][10] - Consolidated EBITDA increased by 21% to $316.4 million in 2025, up from $261.4 million in 2024 [10] Business Line Data and Key Metrics Changes - Flight Support Group's net sales increased by 18% to a record $802.7 million in 2025, driven by 13% organic growth and acquisitions [15][17] - Flight Support Group's operating income increased by 29% to a record $198.3 million in 2025 [17][18] - Electronic Technologies Group's net sales increased by 10% to a record $355.9 million in 2025, with 7% organic growth [19][20] - Electronic Technologies Group's operating income increased by 7% to $81 million in 2025 [20][21] Market Data and Key Metrics Changes - The defense business within the Flight Support Group is experiencing significant growth due to increased demand from the U.S. and allies [16][17] - The Electronic Technologies Group's defense organic net sales increased by over 6% in 2025, with a strong order volume and record backlog [20] Company Strategy and Development Direction - The company is focused on growth within commercial aviation, defense, and space markets, supported by a favorable pro-business environment [6][7] - The acquisition strategy remains disciplined, with a focus on identifying businesses that complement existing operations and strengthen strategic positions [24] - The company aims to maximize long-term shareholder value through a balanced approach of strategic acquisitions and strong organic growth initiatives [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities, citing strong organic demand and a robust acquisition pipeline [23][24] - The company is well-positioned to support defense initiatives, particularly in missile defense, as the U.S. government prioritizes cost efficiency [16][37] - Management noted that while there are pockets of destocking in the market, overall demand remains strong [81][84] Other Important Information - The company paid its 94th consecutive semiannual cash dividend at a rate of $0.12 per share, representing a 9% increase over the prior dividend [11] - The acquisition of Gables Engineering is expected to be accretive to earnings within a year following the acquisition [12][30] Q&A Session Summary Question: How is the Gables acquisition performing relative to expectations? - Management indicated that the acquisition is performing as expected, but it is still early days [30] Question: Is the lower tax rate sustainable? - The CFO noted that the lower rate was primarily a cash benefit and projected an effective annual rate of around 19% to 20% going forward [32] Question: Can you elaborate on missile defense opportunities? - Management highlighted ongoing orders related to missile defense and emphasized the importance of both legacy and new technology defense [36][37] Question: What are the organic growth drivers in the Flight Support Group? - The parts business grew in the low teens, with significant growth in repair and overhaul and specialty products driven by defense business [41][43] Question: What is the outlook for margins in the Flight Support Group? - Management expects margins to be in the 24% range going forward, with the potential for continued improvement [56] Question: How is the company managing supply chain challenges? - Management reported improvements in supply chain issues, with a robust inspection process in place to manage incoming parts [106][108]

Financial Data and Key Metrics Changes - Consolidated net income increased by 30% to a record $177.3 million or $1.26 per diluted share in 2025, up from $136.6 million or $0.97 per diluted share in 2024 [5][6] - Consolidated operating income and net sales for Q3 2025 represented record results, increasing by 22% and 21% respectively compared to 2024 [6][9] - Cash flow from operating activities increased by 8% to $231.2 million in 2025, representing 130% of net income [8][9] - Consolidated EBITDA increased by 21% to $316.4 million in 2025, up from $261.4 million in 2024 [9] Business Line Data and Key Metrics Changes - Flight Support Group's net sales increased by 18% to a record $802.7 million in 2025, driven by 13% organic growth and acquisitions [13][16] - Flight Support Group's operating income increased by 29% to a record $198.3 million in 2025, with an operating margin improvement to 24.7% [16][17] - Electronic Technologies Group's net sales increased by 10% to a record $355.9 million in 2025, with strong organic growth of 7% [18][19] - Electronic Technologies Group's operating income increased by 7% to $81 million in 2025, with an operating margin of 22.8% [19][20] Market Data and Key Metrics Changes - The defense business within the Flight Support Group is experiencing significant growth due to increased demand from the U.S. and allies [14][15] - The Electronic Technologies Group's defense organic net sales increased by over 6% during 2025, with a record backlog anticipated to drive future growth [19] Company Strategy and Development Direction - The company maintains a disciplined acquisition strategy, focusing on growth within commercial aviation, defense, and space markets [5][22] - The company aims to maximize long-term shareholder value through strategic acquisitions and strong organic growth initiatives [22] - The recent acquisition of Gables Engineering is expected to be accretive to earnings within a year, enhancing the company's capabilities in aerospace platforms [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a favorable pro-business environment that encourages innovation and expansion [5] - The company is well-positioned to sustain strong momentum and capture additional market share across diverse markets [5][21] - Management noted that while there are pockets of destocking in the market, overall demand remains strong, and the company is not experiencing a significant destocking phenomenon [80][84] Other Important Information - The company paid its 94th consecutive semiannual cash dividend at a rate of $0.12 per share, representing a 9% increase over the prior dividend [10] - The company has a strong liquidity position, even after deploying $630 million on acquisitions in the past nine months [9] Q&A Session Summary Question: How is the Gables acquisition performing relative to expectations? - Management indicated that the Gables acquisition is performing as expected, but it is still early days [28][29] Question: Is the lower tax rate sustainable? - Management noted that the lower tax rate was primarily a cash benefit and projected an effective annual rate of around 19% to 20% going forward [31] Question: Can you elaborate on missile defense opportunities? - Management confirmed ongoing opportunities in missile defense, with significant orders anticipated, and mentioned the potential for additional acquisitions in this space [34][36] Question: What are the organic growth drivers in the Flight Support Group? - Management highlighted strong growth in the repair and overhaul segment, driven by increased demand and a favorable mix [41][43] Question: How is the company positioned for future acquisitions? - Management expressed confidence in their capacity for further acquisitions, indicating strong financial flexibility [29][30] Question: How is the European market performing? - Management reported strong performance in Europe, particularly in defense, and noted ongoing investments in the region [90][92]

Core Insights - Heico Corporation reported $1.15 billion in revenue for the quarter ended July 2025, marking a year-over-year increase of 15.7% and exceeding the Zacks Consensus Estimate of $1.11 billion by 3.06% [1] - The company achieved an EPS of $1.26, up from $0.97 a year ago, resulting in an EPS surprise of 12.5% compared to the consensus estimate of $1.12 [1] Financial Performance Metrics - Net Sales for the Electronic Technologies Group (ETG) reached $355.86 million, surpassing the four-analyst average estimate of $346.93 million, with a year-over-year change of 10.5% [4] - Net Sales for the Flight Support Group (FSG) totaled $802.66 million, exceeding the four-analyst average estimate of $780.64 million, reflecting a year-over-year increase of 17.8% [4] - Net Sales for Corporate & Intersegment reported at -$10.93 million, better than the three-analyst average estimate of -$12.72 million, showing a year-over-year change of -5% [4] - Operating income for the Flight Support Group was $198.33 million, above the three-analyst average estimate of $184.62 million [4] - Operating income for Electronic Technologies Group was $81 million, below the three-analyst average estimate of $87.72 million [4] - Operating income for Other, primarily corporate, was -$14.31 million, better than the average estimate of -$19.9 million by three analysts [4] Stock Performance - Heico's shares have returned -4.4% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Heico Corporation (HEI) reported quarterly earnings of $1.26 per share, exceeding the Zacks Consensus Estimate of $1.12 per share, and showing an increase from $0.97 per share a year ago, resulting in an earnings surprise of +12.50% [1] - The company achieved revenues of $1.15 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 3.06%, and up from $992.25 million year-over-year [2] - Heico has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The future performance of Heico's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.16 on revenues of $1.14 billion, while for the current fiscal year, the estimate is $4.57 on revenues of $4.37 billion [7] Industry Context - Heico operates within the Zacks Aerospace - Defense Equipment industry, which is currently ranked in the top 40% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of Heico's stock may also be influenced by the overall industry outlook, as empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5][8]

[Executive Summary](index=1&type=section&id=Executive%20Summary) HEICO Corporation achieved record financial results for Q3 and the first nine months of fiscal 2025, marked by significant growth in net income, sales, and operating income across both segments [Overall Financial Highlights](index=1&type=section&id=Overall%20Financial%20Highlights) HEICO Corporation reported record financial results for the third quarter and first nine months of fiscal 2025, with significant double-digit increases in net income, operating income, and net sales, alongside improved operating margins and strong EBITDA growth **Third Quarter Fiscal 2025 Financial Highlights (YoY):** | Metric | FY2025 Q3 | FY2024 Q3 | Change (%) | | :-------------------------------- | :---------- | :---------- | :--------- | | Net Income attributable to HEICO | $177.3M | $136.6M | +30% | | Diluted EPS | $1.26 | $0.97 | +30% | | Net Sales | $1,147.6M | $992.2M | +16% | | Operating Income | $265.0M | $216.4M | +22% | | Consolidated Operating Margin | 23.1% | 21.8% | +1.3 pp | | EBITDA | $316.4M | $261.4M | +21% | **First Nine Months Fiscal 2025 Financial Highlights (YoY):** | Metric | FY2025 9M | FY2024 9M | Change (%) | | :-------------------------------- | :---------- | :---------- | :--------- | | Net Income attributable to HEICO | $502.1M | $374.4M | +34% | | Diluted EPS | $3.57 | $2.67 | +34% | | Net Sales | $3,275.6M | $2,844.0M | +15% | | Operating Income | $740.0M | $605.8M | +22% | | Consolidated Operating Margin | 22.6% | 21.3% | +1.3 pp | | EBITDA | $888.1M | $738.3M | +20% | - The Flight Support Group achieved **twenty consecutive quarters of sequential growth in net sales**, driven by continued commercial aerospace product sales increases[4](index=4&type=chunk) [Management Commentary & Outlook](index=2&type=section&id=Management%20Commentary%20%26%20Outlook) Management highlighted robust double-digit consolidated organic net sales growth across both segments, particularly in aerospace aftermarket, other electronics, and space products, maintaining a strong financial position with improved debt ratios and plans for continued growth through organic demand and strategic acquisitions - **Record quarterly net income, operating income, and net sales** mainly reflect **robust double-digit consolidated organic net sales growth**[6](index=6&type=chunk) - Cash flow provided by operating activities **increased 8% to $231.2 million** in Q3 fiscal 2025, with **strong cash flow from operations** forecasted for fiscal 2025[7](index=7&type=chunk) **Debt Ratios (as of July 31, 2025 vs. October 31, 2024):** | Metric | July 31, 2025 | October 31, 2024 | Change | | :-------------------------------- | :-------------- | :--------------- | :----- | | Total debt to net income attributable to HEICO ratio | 3.81x | 4.34x | Down | | Net debt to EBITDA ratio | 1.90x | 2.06x | Down | - The company remains confident in achieving **net sales growth** across both segments, driven by **continued organic demand** and **accelerated growth through recent acquisitions**, while **actively pursuing new acquisition opportunities**[9](index=9&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) HEICO's Flight Support and Electronic Technologies Groups both achieved record sales and strong organic growth, with improved operating margins reflecting robust demand and strategic efficiencies [Flight Support Group](index=2&type=section&id=Flight%20Support%20Group) The Flight Support Group achieved record-setting results in Q3 and the first nine months of fiscal 2025, driven by strong demand across all product lines, particularly in aerospace aftermarket, repair and overhaul parts, and specialty products, demonstrating significant organic net sales growth and improved operating margins **Flight Support Group Financial Performance (YoY):** | Metric | FY2025 Q3 | FY2024 Q3 | Change (%) | FY2025 9M | FY2024 9M | Change (%) | | :-------------------- | :---------- | :---------- | :--------- | :---------- | :---------- | :--------- | | Net Sales | $802.7M | $681.6M | +18% | $2,282.9M | $1,947.6M | +17% | | Organic Net Sales Growth | 13% | N/A | N/A | 13% | N/A | N/A | | Operating Income | $198.3M | $153.6M | +29% | $549.4M | $438.6M | +25% | | Operating Margin | 24.7% | 22.5% | +2.2 pp | 24.1% | 22.5% | +1.6 pp | - The increase in operating income was primarily due to **net sales growth**, an **improved gross profit margin**, and **SG&A expense efficiencies**, particularly within repair and overhaul parts and services and specialty products[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) - The Flight Support Group has achieved **twenty consecutive quarters of growth in net sales**[10](index=10&type=chunk) [Electronic Technologies Group](index=3&type=section&id=Electronic%20Technologies%20Group) The Electronic Technologies Group reported record net sales for Q3 and the first nine months of fiscal 2025, driven by strong organic growth in other electronics, defense, and space products, with Q3 operating margin seeing a slight decrease due to higher performance-based compensation expenses, offset by nine-month efficiencies **Electronic Technologies Group Financial Performance (YoY):** | Metric | FY2025 Q3 | FY2024 Q3 | Change (%) | FY2025 9M | FY2024 9M | Change (%) | | :-------------------- | :---------- | :---------- | :--------- | :---------- | :---------- | :--------- | | Net Sales | $355.9M | $322.1M | +10% | $1,028.3M | $927.4M | +11% | | Organic Net Sales Growth | 7% | N/A | N/A | 7% | N/A | N/A | | Operating Income | $81.0M | $75.8M | +7% | $235.3M | $206.4M | +14% | | Operating Margin | 22.8% | 23.5% | -0.7 pp | 22.9% | 22.3% | +0.6 pp | - **Organic net sales growth** was mainly attributable to **increased demand for other electronics, defense, and space products**, partially offset by **decreased demand for medical products** over the nine-month period[19](index=19&type=chunk)[20](index=20&type=chunk) - The **Q3 operating margin decrease** was principally due to an **increase in SG&A expenses** as a percentage of net sales, mainly from **higher performance-based compensation expense**, however, the **nine-month operating margin improved** due to **SG&A expense efficiencies**[21](index=21&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) HEICO's financial statements detail its consolidated operations, balance sheet, and cash flows, reflecting strong performance, asset growth, and strategic investment activities for fiscal 2025 [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations provide a detailed breakdown of HEICO's revenues, costs, and profitability for the three and nine months ended July 31, 2025, compared to the same periods in 2024, including segment-specific performance and footnotes on depreciation, amortization, and discrete tax benefits **Condensed Consolidated Statements of Operations (Three Months Ended July 31):** | Metric (in thousands) | 2025 | 2024 | | :-------------------------------------- | :--------- | :--------- | | Net sales | $1,147,591 | $992,246 | | Cost of sales | 690,434 | 602,976 | | Selling, general and administrative expenses | 192,138 | 172,824 | | Operating income | 265,019 | 216,446 | | Interest expense | (31,701) | (36,788) | | Other income | 1,662 | 659 | | Income before income taxes and noncontrolling interests | 234,980 | 180,317 | | Income tax expense | 44,300 | 32,500 | | Net income from consolidated operations | 190,680 | 147,817 | | Less: Net income attributable to noncontrolling interests | 13,339 | 11,240 | | Net income attributable to HEICO | $177,341 | $136,577 | | Diluted Net income per share attributable to HEICO shareholders | $1.26 | $0.97 | | Weighted average number of common shares outstanding (Diluted) | 140,950 | 140,305 | **Operating Segment Information (Net Sales - Three Months Ended July 31):** | Segment (in thousands) | 2025 | 2024 | | :--------------------- | :--------- | :--------- | | Flight Support Group | $802,661 | $681,626 | | Electronic Technologies Group | 355,863 | 322,129 | | Intersegment sales | (10,933) | (11,509) | | Total Net Sales | $1,147,591 | $992,246 | **Operating Segment Information (Operating Income - Three Months Ended July 31):** | Segment (in thousands) | 2025 | 2024 | | :--------------------- | :--------- | :--------- | | Flight Support Group | $198,326 | $153,594 | | Electronic Technologies Group | 80,998 | 75,788 | | Other, primarily corporate | (14,305) | (12,936) | | Total Operating Income | $265,019 | $216,446 | **Depreciation and Amortization (Three Months Ended July 31):** | Segment (in thousands) | 2025 | 2024 | | :--------------------- | :--------- | :--------- | | Flight Support Group | $28,581 | $25,305 | | Electronic Technologies Group | 20,297 | 18,300 | | Other, primarily corporate | 889 | 705 | | Total D&A | $49,767 | $44,310 | **Condensed Consolidated Statements of Operations (Nine Months Ended July 31):** | Metric (in thousands) | 2025 | 2024 | | :-------------------------------------- | :--------- | :--------- | | Net sales | $3,275,633 | $2,844,004 | | Cost of sales | 1,975,010 | 1,736,170 | | Selling, general and administrative expenses | 560,647 | 502,025 | | Operating income | 739,976 | 605,809 | | Interest expense | (97,024) | (113,907) | | Other income | 3,217 | 1,798 | | Income before income taxes and noncontrolling interests | 646,169 | 493,700 | | Income tax expense | 103,400 | 85,500 | | Net income from consolidated operations | 542,769 | 408,200 | | Less: Net income attributable to noncontrolling interests | 40,680 | 33,779 | | Net income attributable to HEICO | $502,089 | $374,421 | | Diluted Net income per share attributable to HEICO shareholders | $3.57 | $2.67 | | Weighted average number of common shares outstanding (Diluted) | 140,678 | 140,086 | **Operating Segment Information (Net Sales - Nine Months Ended July 31):** | Segment (in thousands) | 2025 | 2024 | | :--------------------- | :--------- | :--------- | | Flight Support Group | $2,282,905 | $1,947,574 | | Electronic Technologies Group | 1,028,345 | 927,393 | | Intersegment sales | (35,617) | (30,963) | | Total Net Sales | $3,275,633 | $2,844,004 | **Operating Segment Information (Operating Income - Nine Months Ended July 31):** | Segment (in thousands) | 2025 | 2024 | | :--------------------- | :--------- | :--------- | | Flight Support Group | $549,422 | $438,561 | | Electronic Technologies Group | 235,334 | $206,379 | | Other, primarily corporate | (44,780) | (39,131) | | Total Operating Income | $739,976 | $605,809 | **Depreciation and Amortization (Nine Months Ended July 31):** | Segment (in thousands) | 2025 | 2024 | | :--------------------- | :--------- | :--------- | | Flight Support Group | $82,862 | $73,538 | | Electronic Technologies Group | 59,334 | 55,010 | | Other, primarily corporate | 2,673 | 2,098 | | Total D&A | $144,869 | $130,646 | - The company recognized discrete tax benefits from stock option exercises: **$27.2 million** in Q1 fiscal 2025 (increasing net income by **$26.5 million**, or **$0.19 per share**) and **$13.6 million** in Q1 fiscal 2024 (increasing net income by **$13.3 million**, or **$0.10 per share**)[40](index=40&type=chunk) [Condensed Consolidated Balance Sheets](index=12&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets show the company's financial position as of July 31, 2025, compared to October 31, 2024, indicating growth in total assets, liabilities, and shareholders' equity, alongside an increase in cash and cash equivalents **Condensed Consolidated Balance Sheets (in thousands):** | Asset/Liability/Equity | July 31, 2025 | October 31, 2024 | | :-------------------------------- | :-------------- | :--------------- | | Cash and cash equivalents | $261,888 | $162,103 | | Total current assets | $2,386,027 | $2,062,292 | | Property, plant and equipment, net | $437,635 | $339,034 | | Goodwill | $3,646,106 | $3,380,295 | | Intangible assets, net | $1,513,525 | $1,334,774 | | Total assets | $8,531,623 | $7,592,822 | | Total current liabilities | $711,316 | $663,851 | | Long-term debt, net of current maturities | $2,443,898 | $2,225,267 | | Total liabilities | $3,881,583 | $3,529,260 | | Shareholders' equity | $4,212,453 | $3,697,406 | | Total liabilities and equity | $8,531,623 | $7,592,822 | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows for the nine months ended July 31, 2025, show a significant increase in net cash provided by operating activities and a substantial increase in cash used in investing activities, primarily due to acquisitions, with financing activities shifting from a net use of cash to a net provision of cash **Condensed Consolidated Statements of Cash Flows (Nine Months Ended July 31, in thousands):** | Activity | 2025 | 2024 | | :-------------------------------- | :--------- | :--------- | | Net cash provided by operating activities | $638,940 | $466,747 | | Net cash used in investing activities | $(697,694) | $(112,150) | | Net cash provided by (used in) financing activities | $155,249 | $(324,047) | | Net increase in cash and cash equivalents | $99,785 | $31,892 | | Cash and cash equivalents at end of period | $261,888 | $202,940 | - **Acquisitions, net of cash acquired, were a major use of cash in investing activities**, totaling **$629.9 million** in the first nine months of fiscal 2025, **significantly higher than $55.2 million** in the prior year[42](index=42&type=chunk) - Financing activities **shifted from a net use of $324.0 million** in 2024 to a **net provision of $155.2 million** in 2025, largely due to **$220.0 million in net borrowings** on the revolving credit facility[42](index=42&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) HEICO provides non-GAAP measures like EBITDA and net debt ratios to offer supplemental insights into its operational performance and financial leverage beyond GAAP standards [EBITDA Reconciliation](index=4&type=section&id=EBITDA%20Reconciliation) HEICO provides EBITDA as a non-GAAP measure to supplement GAAP financial information, believing it enhances investors' ability to analyze business trends and evaluate performance, calculated by adjusting net income attributable to HEICO for depreciation and amortization, noncontrolling interests, interest expense, and income tax expense **EBITDA Calculation (in thousands):** | Metric | FY2025 Q3 | FY2024 Q3 | FY2025 9M | FY2024 9M | Trailing Twelve Months Ended July 31, 2025 | Trailing Twelve Months Ended October 31, 2024 | | :-------------------------------------- | :---------- | :---------- | :---------- | :---------- | :----------------------------------------- | :------------------------------------------ | | Net income attributable to HEICO | $177,341 | $136,577 | $502,089 | $374,421 | $641,777 | $514,109 | | Plus: Depreciation and amortization | 49,767 | 44,310 | 144,869 | 130,646 | 189,554 | 175,331 | | Plus: Net income attributable to noncontrolling interests | 13,339 | 11,240 | 40,680 | 33,779 | 51,878 | 44,977 | | Plus: Interest expense | 31,701 | 36,788 | 97,024 | 113,907 | 132,430 | 149,313 | | Plus: Income tax expense | 44,300 | 32,500 | 103,400 | 85,500 | 136,400 | 118,500 | | **EBITDA** | **$316,448** | **$261,415** | **$888,062** | **$738,253** | **$1,152,039** | **$1,002,230** | - **EBITDA is a non-GAAP measure** used by the Company to **monitor and evaluate business performance** and **enhance investors' ability to analyze trends**, but it has **limitations** and should **not be considered in isolation from GAAP measures**[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) [Net Debt and Ratios](index=4&type=section&id=Net%20Debt%20and%20Ratios) HEICO also presents net debt and net debt to EBITDA ratios as non-GAAP measures to provide further insight into its financial leverage, with net debt calculated as total debt less cash and cash equivalents, and the ratios showing an improvement in the company's leverage position **Net Debt Calculation (in thousands):** | Metric | July 31, 2025 | October 31, 2024 | | :-------------------------- | :-------------- | :--------------- | | Total debt | $2,447,623 | $2,229,374 | | Less: Cash and cash equivalents | (261,888) | (162,103) | | **Net debt** | **$2,185,735** | **$2,067,271** | **Debt Ratios:** | Metric | July 31, 2025 | October 31, 2024 | | :-------------------------------------- | :-------------- | :--------------- | | Total debt to net income attributable to HEICO ratio | 3.81 | 4.34 | | Net debt to EBITDA ratio | 1.90 | 2.06 | - **Net debt** is defined as **total debt less cash and cash equivalents**, and the **net debt to EBITDA ratio** is calculated as **net debt divided by EBITDA**, with these **non-GAAP measures** provided for **supplemental analysis**[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) [Additional Information](index=5&type=section&id=Additional%20Information) This section provides an overview of HEICO's business, stock details, forward-looking statement disclaimers, and conference call information [Company Overview](index=5&type=section&id=Company%20Overview) HEICO Corporation specializes in the design, production, servicing, and distribution of products and services for niche segments within the aviation, defense, space, medical, telecommunications, and electronics industries, operating through its Flight Support Group and Electronic Technologies Group - HEICO operates through two main groups: the Hollywood, Florida-based **Flight Support Group** and the Miami, Florida-based **Electronic Technologies Group**[31](index=31&type=chunk) - The company serves a **diverse customer base** including airlines, overhaul shops, defense and space contractors, military agencies, and manufacturers in medical, telecommunications, and electronics[31](index=31&type=chunk) [Stock Information](index=5&type=section&id=Stock%20Information) HEICO Corporation has two classes of common stock traded on the NYSE: Class A Common Stock (HEI.A) and Common Stock (HEI), both economically identical, differing only in voting rights, with Class A carrying 1/10 vote per share and Common Stock carrying one vote per share - HEICO has **two classes of common stock (HEI.A and HEI)** that are **virtually identical economically**, with the only difference being voting rights (**HEI.A has 1/10 vote per share**, **HEI has one vote per share**)[29](index=29&type=chunk) - As of the report, there are approximately **84.2 million shares of Class A Common Stock (HEI.A)** and **55.1 million shares of Common Stock (HEI)** outstanding[29](index=29&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to various risks, uncertainties, and contingencies that could cause actual results to differ materially, including public health threats, liquidity, market demand fluctuations, product costs, regulatory demands, competition, new product introduction, manufacturing difficulties, cybersecurity, acquisition capabilities, customer credit risk, economic conditions, and interest/tax rates, with the company disclaiming any obligation to publicly update or revise these statements - Forward-looking statements are subject to **risks and uncertainties**, including public health threats, liquidity, commercial air travel demand, product costs, governmental demands, competition, ability to introduce new products, manufacturing difficulties, cybersecurity, and acquisition success[32](index=32&type=chunk) - Other factors include **customer credit risk**, **interest, foreign currency exchange and income tax rates**, and **economic conditions** within and outside the aviation, defense, space, medical, telecommunications, and electronics industries[32](index=32&type=chunk) - The company undertakes **no obligation to publicly update or revise** any forward-looking statement, except as required by applicable law[32](index=32&type=chunk) [Conference Call Details](index=5&type=section&id=Conference%20Call%20Details) HEICO announced a conference call to discuss its third-quarter results on Tuesday, August 26, 2025, at 9:00 a.m. Eastern Daylight Time, with dial-in information provided for participants and a digital replay available on the company's website - A conference call to discuss third-quarter results will be held on **Tuesday, August 26, 2025, at 9:00 a.m. Eastern Daylight Time**[30](index=30&type=chunk) - Dial-in details: US and Canada **(888) 394-8218**, International **(646) 828-8193**, **Conference ID 8001925**, with a **digital replay available for 14 days** on the company's website[30](index=30&type=chunk)

Core Insights - Gabelli Funds, LLC is hosting the annual Aerospace & Defense Symposium on September 4, 2025, at The Harvard Club in New York City, focusing on strong demand outlook and high barriers to entry in the Aerospace and Defense industry [1] - The symposium will feature top executives from over ten companies, discussing themes such as defense spending, aftermarket opportunities, and M&A potential [1] Agenda Highlights - The event will start at 7:30 AM with a welcome and introduction by the Gabelli Funds Team [2] - Notable companies participating include Astronics Corporation, Textron Inc., Moog Inc., HEICO Corporation, and Elbit Systems Ltd., among others, with scheduled presentations throughout the day [2][3] - The agenda includes one-on-one meetings with management, providing attendees with networking opportunities [1]