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]

Earnings Report - HEICO Corporation is set to release its third-quarter earnings results on August 25, with analysts expecting earnings of $1.14 per share, an increase from $0.97 per share in the same period last year [1] - The projected quarterly revenue is $1.12 billion, compared to $992.25 million a year earlier [1] Acquisition - On July 24, HEICO announced the acquisition of Gables Engineering, Inc. by its Electronic Technologies Group [2] Dividend Information - HEICO currently offers an annual dividend yield of 0.08%, translating to a semi-annual dividend of $0.12 per share, or $0.24 annually [2] - To earn $500 monthly from dividends, an investment of approximately $7,693,000 or around 25,000 shares is required, while $100 monthly would need about $1,538,600 or 5,000 shares [2] Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on changes in stock price and dividend payments [3][4] - For example, if a stock pays an annual dividend of $2 and is priced at $50, the yield is 4%. If the price rises to $60, the yield drops to 3.33% [3] Stock Performance - HEICO shares gained 0.2%, closing at $307.72 on Thursday [4]

Core Insights - Heico Corp. is set to release its third-quarter fiscal 2025 earnings on August 25, 2025, after market close, with a four-quarter average earnings surprise of 11.87% [1][5] - Strong sales growth expectations and increasing gross profit margins are anticipated to enhance Heico's overall bottom line [5] Flight Support Group Unit - The Flight Support Group unit is expected to see revenue growth driven by higher sales volume across all product lines, particularly aftermarket parts and distribution, with revenues estimated at $780.6 million, reflecting a 14.5% increase year-over-year [2][7] Electronic Technologies Unit - The Electronic Technologies unit is projected to experience revenue growth due to increased sales volumes from space, electronics, and aerospace products, with revenues estimated at $346.9 million, indicating a 7.7% rise from the previous year [3][7] Overall Q3 Estimates for Heico - The overall sales for Heico in the third quarter are estimated at $1.11 billion, representing a 12.2% increase compared to the prior year [4][7] - The consensus estimate for Heico's fiscal third-quarter earnings is $1.12 per share, which indicates a year-over-year growth of 15.5% [5][7] Earnings Prediction Model - The current model does not predict a definitive earnings beat for Heico, as it has an Earnings ESP of -3.74% and a Zacks Rank of 3 (Hold) [6][8]

Core Insights - Heico Corporation (HEI) is expected to report quarterly earnings of $1.12 per share, reflecting a 15.5% increase year-over-year, with revenues projected at $1.11 billion, a 12.2% increase compared to the previous year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate for the quarter has been revised upward by 0.2%, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Key Metrics - Analysts predict 'Net Sales- Electronic Technologies Group (ETG)' to be $346.93 million, representing a year-over-year increase of 7.7% [5]. - The estimated 'Net Sales- Flight Support Group (FSG)' is $780.64 million, indicating a year-over-year change of 14.5% [5]. - 'Operating income- Flight Support Group' is forecasted to reach $184.62 million, compared to $153.59 million from the previous year [5]. - 'Operating income- Electronic Technologies Group' is expected to be $87.72 million, up from $75.79 million year-over-year [6]. Stock Performance - Heico shares have decreased by 3.8% over the past month, contrasting with the Zacks S&P 500 composite's increase of 2% [6]. - Heico holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6].

Group 1 - 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 industry [1] - The symposium will feature top executives from over ten companies, discussing themes such as large aftermarket opportunities, growth exceeding GDP, defense spending, and M&A potential [1] - Attendees will have the opportunity for one-on-one meetings with management, enhancing networking and investment insights [1] Group 2 - Featured companies at the symposium include AIRO Group Holdings, Elbit Systems, Albany International, Graham Corporation, and several others, indicating a diverse representation within the Aerospace and Defense sector [2] - The event is set to start at 8:30 am, providing a structured schedule for discussions and networking [3]

Core Insights - The second-quarter 2025 reporting cycle for defense stocks has begun, with major S&P 500 defense contractors like Lockheed Martin, Northrop Grumman, Textron, and General Dynamics reporting better-than-expected earnings [1] - Optimism remains for the upcoming results of other defense majors due to escalating geopolitical tensions driving demand for defense products and services [2] - Companies like Archer Aviation and Heico Corp are anticipated to exceed earnings expectations in this reporting cycle [3] Industry Overview - Global defense spending is increasing amid geopolitical instability, particularly due to conflicts in the Middle East, with the U.S. government proposing a 13% increase in defense spending to $1.01 trillion for fiscal 2026 [4] - Increased budget allocations are expected to lead to higher order volumes from the Pentagon and allied governments, enhancing revenue prospects for U.S. defense contractors [5] - Ongoing conflicts, such as the Russia-Ukraine and Israel-Iran wars, have contributed to revenue growth in the defense sector, with the U.S. providing $66.9 billion in military assistance to Ukraine since February 2022 [6] - The U.S. has 751 active Foreign Military Sales cases valued at $39.2 billion with Israel, which is expected to boost order growth for U.S. defense manufacturers [7] - Companies like General Dynamics are benefiting from growth in both defense and commercial aerospace sectors, with a reported 4.1% year-over-year growth in its Aerospace segment [8] Challenges - The defense sector faces challenges such as skilled labor shortages, supply-chain disruptions, and new import tariffs imposed by the U.S. government, which may impact production and delivery timelines [9] Earnings Projections - The Aerospace sector is projected to see a year-over-year earnings surge of 11.5% on 24.8% sales growth for the second quarter [12] - Archer Aviation is advancing its defense aircraft program and raised $301.8 million in February 2025, with an expected earnings loss of 19 cents per share, an improvement from the previous year's loss [16][17] - Heico, a U.S. Department of Defense Prime Contractor, is expected to show solid growth in its Defense and Space unit, with earnings projected at $1.12 per share, reflecting a 15.5% year-over-year improvement [18][19]