Financial Performance - Consolidated net sales increased by 16% to a record $4,485.0 million in fiscal 2025, up from $3,857.7 million in fiscal 2024, driven by an 18% increase in the Flight Support Group (FSG) and a 12% increase in the Electronic Technologies Group (ETG) [170] - Consolidated gross profit margin improved to 39.8% in fiscal 2025, up from 38.9% in fiscal 2024, reflecting a 1.5% increase in the FSG's gross profit margin [172] - Consolidated operating income increased by 24% to a record $1,019.0 million in fiscal 2025, with the FSG's operating income rising by 27% to $750.4 million and the ETG's operating income increasing by 13% to $325.0 million [176] - Net income attributable to HEICO increased by 34% to a record $690.4 million, or $4.90 per diluted share, in fiscal 2025, compared to $514.1 million, or $3.67 per diluted share, in fiscal 2024 [182] - Net income from consolidated operations for fiscal 2025 was $745.6 million, compared to $559.1 million in fiscal 2024, reflecting a $186.5 million increase [188] Cash Flow and Debt Management - Cash and cash equivalents increased to $217.8 million in fiscal 2025, up from $162.1 million in fiscal 2024 [185] - Total debt decreased to $2,167.9 million in fiscal 2025 from $2,229.4 million in fiscal 2024, while total debt to total capitalization improved to 33% from 38% [185] - Net cash provided by operating activities increased by $261.9 million, a 39% increase, reaching $934.3 million in fiscal 2025, up from $672.4 million in fiscal 2024 [189] - Net cash used in investing activities totaled $731.7 million in fiscal 2025, primarily for acquisitions amounting to $629.8 million [192] - Net cash used in financing activities in fiscal 2025 was $150.7 million, including $550.0 million in payments on the revolving credit facility [194] Capital Expenditures and Acquisitions - Anticipated capital expenditures for fiscal 2026 are approximately $80 to $90 million, with sufficient cash flow expected to fund cash requirements for at least the next twelve months [186] - The company plans to pursue selective acquisition opportunities to complement growth and maintain financial resilience and flexibility [183] Working Capital and Contingent Consideration - The increase in net working capital in fiscal 2025 was $58.7 million, driven by a $75.6 million increase in accounts receivable and a $44.9 million increase in inventories [188] - As of October 31, 2025, the company accrued $46.2 million in contingent consideration, up from $30.2 million in 2024 [219] Financial Instruments and Risk Management - The company entered into a $2.0 billion Revolving Credit Facility in July 2023, with the capacity to increase to $2.75 billion [196][197] - The company issued $600 million principal amount of 5.25% Senior Notes due August 1, 2028, and $600 million principal amount of 5.35% Senior Notes due August 1, 2033 [199] - The company has $960 million in aggregate outstanding variable rate debt as of October 31, 2025, with a hypothetical 10% increase in interest rates not materially affecting financial results [227] - A hypothetical 10% weakening in the Euro exchange rate as of October 31, 2025, would not have a material effect on the company's financial position or cash flows [228] - The company maintains a portion of cash and cash equivalents in financial instruments with original maturities of three months or less, which are also subject to interest rate risk [227] Goodwill and Intangible Assets - The fair value of each reporting unit significantly exceeded its carrying value as of October 31, 2025, indicating no impairment of goodwill [222] - The company recognized no impairment loss for intangible assets in fiscal 2025, while an aggregate impairment loss of $7.5 million was recorded in fiscal 2024 [223] - The company tests goodwill for impairment annually, with the last assessment indicating no impairment for the years 2023, 2024, and 2025 [220] - The company assesses non-amortizing intangible assets for impairment annually, using an income approach based on management's assumptions [223] - The company utilizes a probability-based scenario analysis for determining contingent consideration, which is subject to changes in revenue growth rates and discount rates [219] Forward-Looking Statements and Risks - The company’s forward-looking statements are subject to various risks, including public health threats and changes in demand for goods and services [225]

Financial Performance - Net income for the fourth quarter of fiscal 2025 increased 35% to a record $188.3 million, or $1.33 per diluted share, compared to $139.7 million, or $0.99 per diluted share, in the fourth quarter of fiscal 2024[1]. - Net sales rose 19% to a record $1,209.4 million in the fourth quarter of fiscal 2025, up from $1,013.7 million in the same quarter of fiscal 2024[2]. - Operating income increased 28% to a record $279.0 million in the fourth quarter of fiscal 2025, compared to $218.6 million in the fourth quarter of fiscal 2024[2]. - Operating income for the year ended October 31, 2025, rose to $1,018,998,000, a 23.6% increase from $824,455,000 in 2024[32]. - Net income attributable to HEICO for the year ended October 31, 2025, was $690,385,000, representing a 34.3% increase compared to $514,109,000 in 2024[32]. Cash Flow and Assets - Cash flow from operating activities increased 44% to $295.3 million in the fourth quarter of fiscal 2025, up from $205.6 million in the fourth quarter of fiscal 2024[7]. - Net cash provided by operating activities for the year ended October 31, 2025, was $934,266,000, compared to $672,370,000 in 2024, marking a 38.9% increase[37]. - Cash and cash equivalents as of October 31, 2025, increased to $217,781,000 from $162,103,000 in 2024, reflecting a 34.3% growth[36]. - Total assets as of October 31, 2025, reached $8,500,434,000, a 11.9% increase from $7,592,822,000 in 2024[36]. Debt and Leverage - Total debt to net income attributable to HEICO ratio improved to 3.14x as of October 31, 2025, down from 4.34x as of October 31, 2024[8]. - The net debt to EBITDA ratio improved to 1.60 in 2025 from 2.06 in 2024, indicating better leverage management[38]. - The company’s interest expense decreased to $129,877,000 in 2025 from $149,313,000 in 2024, a reduction of 13.0%[32]. Segment Performance - The Flight Support Group's net sales increased 21% to a record $834.4 million in the fourth quarter of fiscal 2025, up from $691.8 million in the fourth quarter of fiscal 2024[12]. - The Electronic Technologies Group's net sales increased 14% to a record $384.8 million in the fourth quarter of fiscal 2025, up from $336.2 million in the fourth quarter of fiscal 2024[16]. - The Flight Support Group's net sales for the three months ended October 31, 2025, were $834,372,000, up 20.6% from $691,780,000 in 2024[30]. Future Outlook - Looking ahead to fiscal 2026, the company anticipates net sales growth across both the Flight Support Group and Electronic Technologies Group, driven by organic growth and recent acquisitions[10]. - The company completed five acquisitions in fiscal 2025, contributing to net sales and earnings growth[9]. Dividends - The company declared a semiannual cash dividend of $0.12 per share, marking the 95th consecutive semiannual cash dividend since 1979[9].

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) HEICO Corporation's unaudited condensed consolidated financial statements for the nine and three months ended July 31, 2025, prepared in conformity with GAAP for interim reporting [Condensed Consolidated Balance Sheets (unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(unaudited)) This section provides HEICO's unaudited condensed consolidated balance sheets as of July 31, 2025, and October 31, 2024 Condensed Consolidated Balance Sheets (in thousands) | Metric | July 31, 2025 | October 31, 2024 | | :-------------------------------- | :------------ | :------------- | | **Assets** | | | | 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 | | **Liabilities and Equity** | | | | 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 | | Redeemable noncontrolling interests | $437,587 | $366,156 | | Total shareholders' equity | $4,212,453 | $3,697,406 | | Total liabilities and equity | $8,531,623 | $7,592,822 | - Total assets increased by **$938.8 million (12.4%)** from October 31, 2024, to July 31, 2025, primarily driven by increases in goodwill, intangible assets, and inventories[8](index=8&type=chunk) - Total liabilities increased by **$352.3 million (10.0%)** over the same period, mainly due to higher long-term debt and other long-term liabilities[8](index=8&type=chunk) - Total shareholders' equity grew by **$515.0 million (13.9%)**, reflecting increased retained earnings and capital in excess of par value[8](index=8&type=chunk) [Condensed Consolidated Statements of Operations (unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(unaudited)) This section presents HEICO's unaudited 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) | Metric | 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 | | Income before income taxes and noncontrolling interests | $646,169 | $493,700 | $234,980 | $180,317 | | Net income attributable to HEICO | $502,089 | $374,421 | $177,341 | $136,577 | | Diluted EPS | $3.57 | $2.67 | $1.26 | $0.97 | - For the nine months ended July 31, 2025, net sales increased by **15.2% YoY**, operating income by **22.1% YoY**, and net income attributable to HEICO by **34.1% YoY**[9](index=9&type=chunk) - For the three months ended July 31, 2025, net sales increased by **15.7% YoY**, operating income by **22.4% YoY**, and net income attributable to HEICO by **29.9% YoY**[9](index=9&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(unaudited)) This section details HEICO's unaudited 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) | Metric | 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 | - Comprehensive income attributable to HEICO increased by **37.2% to $529.0 million** for the nine months ended July 31, 2025, compared to **$385.7 million** in the prior year period[12](index=12&type=chunk) - Foreign currency translation adjustments significantly contributed to other comprehensive income, with **$27.2 million** for the nine months ended July 31, 2025, up from **$11.6 million** in the prior year[12](index=12&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity (unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity%20(unaudited)) This section outlines HEICO's unaudited condensed consolidated statements of shareholders' equity for the nine months ended July 31, 2025 Key Changes in HEICO Shareholders' Equity (in thousands) – Nine Months Ended July 31, 2025 | Item | Amount | | :------------------------------------------ | :------- | | Balances as of October 31, 2024 | $3,697,406 | | Comprehensive income | $541,053 | | Cash dividends ($.23 per share) | ($31,968) | | Issuance of common stock to HEICO Savings and Investment Plan | $15,939 | | Share-based compensation expense | $18,346 | | Issuance of common stock for an acquisition | $10,123 | | Proceeds from stock option exercises | $11,680 | | Adjustments to redemption amount of redeemable noncontrolling interests | ($43,129) | | Balances as of July 31, 2025 | $4,212,453 | - Total HEICO shareholders' equity increased from **$3,697.4 million** as of October 31, 2024, to **$4,212.5 million** as of July 31, 2025, driven by comprehensive income and stock-related activities[14](index=14&type=chunk) - Cash dividends paid amounted to **$32.0 million ($.23 per share)** for the nine months ended July 31, 2025[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows (unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(unaudited)) This section presents HEICO's unaudited condensed consolidated statements of cash flows for the nine months ended July 31, 2025, and 2024 Condensed Consolidated Statements of Cash Flows (in thousands) – Nine Months Ended July 31 | 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 | - Net cash provided by operating activities increased by **36.9% to $638.9 million** in the first nine months of fiscal 2025, primarily due to higher net income and lower working capital investment[17](index=17&type=chunk)[114](index=114&type=chunk) - Net cash used in investing activities significantly increased to **$697.7 million** in 2025, mainly driven by **$629.9 million** in acquisitions, net of cash acquired[17](index=17&type=chunk)[115](index=115&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 increased borrowings on the revolving credit facility[17](index=17&type=chunk)[116](index=116&type=chunk) [Notes to Condensed Consolidated Financial Statements (unaudited)](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides detailed notes to HEICO's unaudited condensed consolidated financial statements, explaining significant accounting policies, acquisitions, and other financial information [1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=1.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section outlines the significant accounting policies applied in preparing HEICO's unaudited condensed consolidated financial statements - The unaudited condensed consolidated financial statements are prepared in conformity with GAAP for interim financial information and should be read with the annual Form 10-K[18](index=18&type=chunk) - HEICO operates with two segments: Flight Support Group (FSG) and Electronic Technologies Group (ETG)[19](index=19&type=chunk) - New accounting pronouncements (ASU 2023-07, 2023-09, 2024-03) are being evaluated for disclosure impacts but are not expected to affect consolidated results of operations, financial position, or cash flows[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) [2. ACQUISITIONS](index=10&type=section&id=2.%20ACQUISITIONS) This section details HEICO's acquisition activities during fiscal 2025, including the strategic rationale and financial impact of these transactions - HEICO completed five acquisitions in fiscal 2025, expanding its capabilities in electronic components, avionics repair, in-flight entertainment, and advanced aerospace solutions[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) - Key acquisitions include SVM (electronic passive components), exclusive license for Boeing 777 AIMS/737NG VIA product lines, Millennium International (avionics repair), Rosen Aviation (in-flight entertainment), and Gables Engineering (cockpit displays/avionics)[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) Fiscal 2025 Acquisitions Aggregate Total Consideration (in thousands) | Item | Amount | | :------------------------------------------ | :------- | | Cash paid, net | $629,890 | | Issuance of common stock for an acquisition | $10,123 | | Contingent consideration | $11,509 | | Total consideration | $651,393 | - The acquisitions resulted in **$252.2 million** in goodwill and **$377.6 million** in identifiable intangible assets (customer relationships, intellectual property, trade names)[31](index=31&type=chunk) [3. SELECTED FINANCIAL STATEMENT INFORMATION](index=13&type=section&id=3.%20SELECTED%20FINANCIAL%20STATEMENT%20INFORMATION) This section provides selected detailed financial statement information, including accounts receivable, inventories, property, plant and equipment, and research and development expenses Accounts Receivable (in thousands) | Metric | July 31, 2025 | October 31, 2024 | | :------------------------------------------ | :------------ | :------------- | | Accounts receivable, net | $597,622 | $538,487 | Inventories (in thousands) | Metric | July 31, 2025 | October 31, 2024 | | :------------------------------------------ | :------------ | :------------- | | Inventories, net of valuation reserves | $1,310,393 | $1,170,949 | Property, Plant and Equipment, net (in thousands) | Metric | July 31, 2025 | October 31, 2024 | | :------------------------------------------ | :------------ | :------------- | | Property, plant and equipment, net | $437,635 | $339,034 | - Accrued customer rebates and credits increased to **$29.4 million** as of July 31, 2025, from **$24.3 million** as of October 31, 2024[36](index=36&type=chunk) Research and Development Expenses (in thousands) | Period | 2025 | 2024 | | :------------------------------------------ | :------- | :------- | | Nine months ended July 31, | $88,275 | $82,810 | | Three months ended July 31, | $31,929 | $29,779 | - Redeemable noncontrolling interests increased to **$437.6 million** as of July 31, 2025, from **$366.2 million** as of October 31, 2024, reflecting new acquisitions and adjustments[38](index=38&type=chunk) [4. GOODWILL AND OTHER INTANGIBLE ASSETS](index=16&type=section&id=4.%20GOODWILL%20AND%20OTHER%20INTANGIBLE%20ASSETS) This section details the composition and changes in HEICO's goodwill and other intangible assets, categorized by operating segment Goodwill by Operating Segment (in thousands) | Segment | October 31, 2024 | July 31, 2025 | | :------------------------------------------ | :--------------- | :------------ | | FSG | $1,882,558 | $1,995,261 | | ETG | $1,497,737 | $1,650,845 | | Consolidated Totals | $3,380,295 | $3,646,106 | - Goodwill increased by **$265.8 million**, primarily due to **$252.2 million** from fiscal 2025 acquisitions, with **$112 million** estimated to be tax deductible[47](index=47&type=chunk) Identifiable Intangible Assets (Net Carrying Amount, in thousands) | Asset Type | October 31, 2024 | July 31, 2025 | | :------------------------------------------ | :--------------- | :------------ | | Customer relationships | $706,316 | $792,103 | | Intellectual property | $334,328 | $396,254 | | Trade names | $293,263 | $324,563 | | Total Intangible assets, net | $1,334,774 | $1,513,525 | - 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) [5. LONG-TERM DEBT](index=17&type=section&id=5.%20LONG-TERM%20DEBT) This section provides details on HEICO's long-term debt, including borrowings under its revolving credit facility and senior unsecured notes Long-Term Debt (in thousands) | Debt Type | 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 | | Long-term debt, net of current maturities | $2,443,898 | $2,225,267 | - The weighted average interest rate on 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) - The Company was in compliance with all financial and non-financial covenants for its revolving credit facility and senior unsecured notes as of July 31, 2025[52](index=52&type=chunk)[53](index=53&type=chunk) Fair Value of Senior Unsecured Notes (in thousands) | Notes | Carrying Value (July 31, 2025) | Fair Value (July 31, 2025) | | :------------------------------------------ | :----------------------------- | :------------------------- | | 2028 Notes | $596,137 | $612,502 | | 2033 Notes | $593,452 | $612,235 | | Total | $1,189,589 | $1,224,737 | [6. REVENUE](index=19&type=section&id=6.%20REVENUE) This section details HEICO's revenue recognition, contract balances, remaining performance obligations, and net sales by operating segment Contract Balances (in thousands) | Metric | 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 | - The increase in contract assets and liabilities primarily reflects additional unbilled receivables and advance deposits on customer contracts, mainly within the Flight Support Group (FSG)[57](index=57&type=chunk) - Remaining performance obligations (backlog) totaled **$2,064.3 million** as of July 31, 2025, with **$625.5 million** expected to be recognized in the remainder of fiscal 2025 and **$1,438.8 million** thereafter[59](index=59&type=chunk) Net Sales by Operating Segment (in thousands) – Nine Months Ended July 31 | Segment | 2025 | 2024 | YoY Change | | :------------------------------------------ | :------- | :------- | :--------- | | Flight Support Group | $2,282,905 | $1,947,574 | +17.2% | | Electronic Technologies Group | $1,028,345 | $927,393 | +10.9% | | Total consolidated net sales | $3,275,633 | $2,844,004 | +15.2% | Net Sales by Operating Segment (in thousands) – Three Months Ended July 31 | Segment | 2025 | 2024 | YoY Change | | :------------------------------------------ | :------- | :------- | :--------- | | Flight Support Group | $802,661 | $681,626 | +17.7% | | Electronic Technologies Group | $355,863 | $322,129 | +10.5% | | Total consolidated net sales | $1,147,591 | $992,246 | +15.7% | [7. INCOME TAXES](index=22&type=section&id=7.%20INCOME%20TAXES) This section discusses HEICO's income tax provisions, including effective tax rates and the impact of new tax legislation - The effective tax rate decreased to **16.0%** for the first nine months of fiscal 2025 (from **17.3%** in 2024), 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 increased to **18.9%** for the third quarter of fiscal 2025 (from **18.0%** in 2024), mainly due to a prior year favorable impact from contingent consideration reversal and a larger R&D tax credit in 2024[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 includes changes to bonus depreciation, R&D expensing, FDII, and GILTI[64](index=64&type=chunk) [8. FAIR VALUE MEASUREMENTS](index=23&type=section&id=8.%20FAIR%20VALUE%20MEASUREMENTS) This section provides information on HEICO's fair value measurements for assets and liabilities, particularly contingent consideration Fair Value of Assets and Liabilities (in thousands) – As of July 31, 2025 | Item | Level 1 | Level 2 | Level 3 | Total | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Corporate-owned life insurance | $— | $354,823 | $— | $354,823 | | Money market fund | $7,370 | $— | $— | $7,370 | | Contingent consideration | $— | $— | $42,252 | $42,252 | - Contingent consideration liabilities, classified as Level 3, increased to **$42.3 million** as of July 31, 2025, from **$30.2 million** as of October 31, 2024[65](index=65&type=chunk)[72](index=72&type=chunk) - The fair value of contingent consideration is determined using a probability-based scenario analysis, incorporating revenue growth rate assumptions and a weighted average discount rate[70](index=70&type=chunk) Unobservable Inputs for Level 3 Contingent Consideration (July 31, 2025) | Acquisition Date | Fair Value | Unobservable Input | Range | Weighted Average | | :------------------------------------------ | :--------- | :----------------- | :------ | :--------------- | | 1-31-2025 | $12,075 | Compound annual revenue growth rate | 5% - 22% | 17% | | | | Discount rate | 7.2% - 7.2% | 7.2% | | 7-18-2022 | $21,534 | Compound annual revenue growth rate | 3% - 9% | 7% | | | | Discount rate | 7.7% - 7.7% | 7.7% | | 3-17-2022 | $8,643 | Compound annual revenue growth rate | (2%) - 6% | 3% | | | | Discount rate | 7.8% - 7.8% | 7.8% | [9. NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS](index=26&type=section&id=9.%20NET%20INCOME%20PER%20SHARE%20ATTRIBUTABLE%20TO%20HEICO%20SHAREHOLDERS) This section presents the calculation of basic and diluted net income per share attributable to HEICO shareholders Net Income Per Share Attributable to HEICO Shareholders | Metric | 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 attributable to HEICO (in thousands) | $502,089 | $374,421 | $177,341 | $136,577 | | Basic EPS | $3.61 | $2.71 | $1.27 | $0.99 | | Diluted EPS | $3.57 | $2.67 | $1.26 | $0.97 | | Weighted average common shares outstanding - diluted (in thousands) | 140,678 | 140,086 | 140,950 | 140,305 | - Diluted EPS increased by **33.7% to $3.57** for the nine months ended July 31, 2025, and by **29.9% to $1.26** for the three months ended July 31, 2025, compared to the respective prior year periods[74](index=74&type=chunk) [10. OPERATING SEGMENTS](index=27&type=section&id=10.%20OPERATING%20SEGMENTS) This section provides detailed financial performance and asset information for HEICO's Flight Support Group (FSG) and Electronic Technologies Group (ETG) operating segments Operating Segment Performance (in thousands) – Nine Months Ended July 31, 2025 | Segment | Net Sales | Operating Income | Capital Expenditures | | :------------------------------------------ | :-------- | :--------------- | :------------------- | | Flight Support Group (FSG) | $2,282,905 | $549,422 | $26,238 | | Electronic Technologies Group (ETG) | $1,028,345 | $235,334 | $19,731 | | Consolidated Totals | $3,275,633 | $739,976 | $46,038 | Operating Segment Performance (in thousands) – Three Months Ended July 31, 2025 | Segment | Net Sales | Operating Income | Capital Expenditures | | :------------------------------------------ | :-------- | :--------------- | :------------------- | | Flight Support Group (FSG) | $802,661 | $198,326 | $7,224 | | Electronic Technologies Group (ETG) | $355,863 | $80,998 | $5,453 | | Consolidated Totals | $1,147,591 | $265,019 | $12,739 | - FSG's net sales increased by **17.2%** and operating income by **25.3%** for the nine months ended July 31, 2025, driven by strong organic growth and acquisitions[75](index=75&type=chunk)[85](index=85&type=chunk)[90](index=90&type=chunk) - ETG's net sales increased by **10.9%** and operating income by **14.0%** for the nine months ended July 31, 2025, also supported by organic growth and acquisitions[75](index=75&type=chunk)[85](index=85&type=chunk)[90](index=90&type=chunk) Total Assets by Operating Segment (in thousands) | Segment | July 31, 2025 | October 31, 2024 | | :------------------------------------------ | :------------ | :------------- | | FSG | $4,605,036 | $4,264,360 | | ETG | $3,447,101 | $2,981,326 | | Corporate | $479,486 | $347,136 | | Consolidated Totals | $8,531,623 | $7,592,822 | [11. COMMITMENTS AND CONTINGENCIES](index=28&type=section&id=11.%20COMMITMENTS%20AND%20CONTINGENCIES) This section outlines HEICO's commitments and contingencies, including outstanding letters of credit, product warranty liabilities, and legal actions - As of July 31, 2025, the Company had **$6.7 million** in outstanding standby letters of credit and guarantees related to performance guarantees and workers' compensation claims[77](index=77&type=chunk) Product Warranty Liability (in thousands) – Nine Months Ended July 31 | Metric | 2025 | 2024 | | :------------------------------------------ | :------- | :------- | | Balances as of beginning of fiscal year | $4,036 | $3,847 | | Accruals for warranties | $1,955 | $2,244 | | Acquired warranty liabilities | $1,052 | $245 | | Warranty claims settled | ($2,265) | ($2,119) | | Balances as of July 31 | $4,778 | $4,217 | - Management believes the outcome of current legal actions will not have a material adverse effect on the Company's financial results[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's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis of HEICO's financial condition and operational results for the nine and three months ended July 31, 2025, covering segment performance, liquidity, and outlook [Overview](index=29&type=section&id=Overview) This section provides an overview of HEICO's business structure and the context for the financial discussion, including the impact of recent acquisitions - The discussion should be read in conjunction with the condensed consolidated financial statements and notes, with results affected by fiscal 2024 and 2025 acquisitions[80](index=80&type=chunk)[83](index=83&type=chunk) - 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](index=30&type=section&id=Results%20of%20Operations) This section presents a consolidated summary of HEICO's operational results, including net sales, cost of sales, and operating income, for the reported periods Consolidated Results of Operations (in thousands, except percentages) | Metric | 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 | | Cost of sales | $1,975,010 | $1,736,170 | $690,434 | $602,976 | | Selling, general and administrative expenses | $560,647 | $502,025 | $192,138 | $172,824 | | Operating income | $739,976 | $605,809 | $265,019 | $216,446 | | Gross profit margin | 39.7% | 39.0% | 39.8% | 39.2% | | SG&A as % of net sales | 17.1% | 17.7% | 16.7% | 17.4% | | Operating income as % of net sales | 22.6% | 21.3% | 23.1% | 21.8% | [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) This section analyzes HEICO's consolidated and segment-specific financial performance for the first nine months of fiscal 2025 compared to the same period in fiscal 2024 - Consolidated net sales increased **15% to $3,275.6 million**, driven by **17% growth in FSG ($2,282.9 million)** and **11% growth in ETG ($1,028.3 million)**[85](index=85&type=chunk) - FSG's growth included **13% organic growth** and **$77.9 million** from acquisitions, with strong demand in aftermarket replacement parts, repair and overhaul, and specialty products[85](index=85&type=chunk) - ETG's growth included **7% organic growth** and **$33.2 million** from acquisitions, mainly from increased demand in space, defense, other electronics, and aerospace products[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 operating income increased **22% to $740.0 million**, with FSG operating income up **25% to $549.4 million** and ETG up **14% to $235.3 million**[90](index=90&type=chunk) - Net income attributable to HEICO increased **34% to $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) This section analyzes HEICO's consolidated and segment-specific financial performance for the third quarter of fiscal 2025 compared to the same period in fiscal 2024 - Consolidated net sales increased **16% to $1,147.6 million**, with FSG sales up **18% to $802.7 million** and ETG sales up **10% to $355.9 million**[98](index=98&type=chunk) - FSG's growth included **13% organic growth** and **$34.9 million** from acquisitions, driven by aftermarket replacement parts, repair and overhaul, and specialty products[98](index=98&type=chunk) - ETG's growth included **7% organic growth** and **$13.9 million** from acquisitions, mainly from other electronics, defense, and space products[98](index=98&type=chunk) - Consolidated gross profit margin improved to **39.8%** (from **39.2%**), primarily due to a **1.4% increase** in FSG's gross profit margin[99](index=99&type=chunk) - Consolidated operating income increased **22% to $265.0 million**, with FSG operating income up **29% to $198.3 million** and ETG up **7% to $81.0 million**[102](index=102&type=chunk) - Net income attributable to HEICO increased **30% to $177.3 million**, or **$1.26 per diluted share**[109](index=109&type=chunk) [Outlook](index=36&type=section&id=Outlook) This section provides HEICO's forward-looking statements regarding anticipated net sales growth and strategic initiatives for market share expansion and acquisitions - HEICO anticipates continued net sales growth across both FSG and ETG segments, driven by organic demand and recently completed acquisitions[110](index=110&type=chunk) - The company plans to accelerate growth through acquisitions and organic initiatives aimed at gaining market share, while maintaining a strong financial position[110](index=110&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses HEICO's liquidity position, capital resources, principal uses of cash, and the sufficiency of funds for future operations - 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 to $70 million**[111](index=111&type=chunk) - The company expects net cash from operating activities and available borrowings under its revolving credit facility to be sufficient for at least the next twelve months[112](index=112&type=chunk) - Net cash provided by operating activities increased by **$172.2 million (37%) to $638.9 million** for the first nine months of fiscal 2025, primarily due to higher net income and lower working capital investment[114](index=114&type=chunk) - Net cash used in investing activities totaled **$697.7 million**, mainly for **$629.9 million** in acquisitions[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 **$275.0 million** in payments[116](index=116&type=chunk) [Guarantor Group Summarized Financial Information](index=37&type=section&id=Guarantor%20Group%20Summarized%20Financial%20Information) This section provides summarized financial information for the Guarantor Group, which unconditionally guarantees HEICO's senior unsecured notes - The 2028 and 2033 Senior Unsecured Notes are fully and unconditionally guaranteed by the Guarantor Group, consisting of all existing and future subsidiaries that guarantee the revolving credit facility[119](index=119&type=chunk)[120](index=120&type=chunk) - A subsidiary guarantor is released from its guarantee if it ceases to guarantee or be an obligor with respect to the Credit Facility, or upon sale/disposition of a majority of its voting stock or substantially all its property[122](index=122&type=chunk)[123](index=123&type=chunk)[126](index=126&type=chunk) Guarantor Group Summarized Financial Information (in thousands) | Metric | 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 | | Net intercompany receivable from non-guarantor subsidiaries | $260,876 | $243,421 | | 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 Summarized Financial Information (in thousands) – Nine Months Ended July 31, 2025 | Metric | Amount | | :------------------------------------------ | :------- | | Net sales | $2,772,998 | | Gross profit | $1,078,388 | | Operating income | $636,812 | | Net income from consolidated operations | $535,927 | | Net income attributable to HEICO | $504,413 | [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 assessment have occurred since the prior annual report on Form 10-K - No material changes in market risk assessment since the prior annual report[131](index=131&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) HEICO's disclosure controls and procedures were effective as of July 31, 2025, with no material changes in internal control over financial reporting during the third quarter - Disclosure controls and procedures were evaluated and deemed effective as of the end of the reporting period[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 [Item 5. Other Events](index=42&type=section&id=Item%205.%20Other%20Events) No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during the third quarter - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during the third quarter ended July 31, 2025[136](index=136&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including subsidiary guarantors, executive officer certifications, and Inline XBRL documents - Exhibits include Subsidiary Guarantors, Rule 13a-14(a)/15d-14(a) Certifications, Section 1350 Certifications, and various Inline XBRL documents[137](index=137&type=chunk) [Signatures](index=43&type=section&id=Signatures) The report was signed by HEICO Corporation's EVP-CFO and CAO on August 27, 2025 - The report was signed by Carlos L. Macau, Jr. (EVP - CFO and Treasurer) and Bradley K. Rowen (CAO and Assistant Treasurer) on August 27, 2025[142](index=142&type=chunk)

[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)

Financial Performance - Consolidated net sales for the first six months of fiscal 2025 increased by 15% to a record $2,128.0 million, compared to $1,851.8 million in the same period of fiscal 2024[80] - The Flight Support Group (FSG) net sales rose by 17% to $1,480.2 million, while the Electronic Technologies Group (ETG) net sales increased by 11% to $672.5 million[80] - Consolidated gross profit margin improved to 39.6% in the first six months of fiscal 2025, up from 38.8% in the same period of fiscal 2024[81] - Consolidated operating income increased by 22% to a record $475.0 million in the first six months of fiscal 2025, compared to $389.4 million in the same period of fiscal 2024[85] - Net income attributable to HEICO increased by 37% to a record $324.7 million, or $2.31 per diluted share, in the first six months of fiscal 2025[92] - Consolidated net sales in the second quarter of fiscal 2025 increased by 15% to a record $1,097.8 million, compared to $955.4 million in the second quarter of fiscal 2024[93] - Consolidated operating income increased by 19% to a record $248.2 million in Q2 fiscal 2025, up from $209.2 million in Q2 fiscal 2024[97] - Net income attributable to HEICO increased by 27% to $156.8 million, or $1.12 per diluted share, in Q2 fiscal 2025, compared to $123.1 million, or $0.88 per diluted share, in Q2 fiscal 2024[104] Expenses and Costs - Consolidated SG&A expenses were $368.5 million in the first six months of fiscal 2025, up from $329.2 million in the same period of fiscal 2024[82] - Interest expense decreased to $65.3 million in the first six months of fiscal 2025, down from $77.1 million in the same period of fiscal 2024[87] - Total new product research and development expenses were $56.3 million in the first six months of fiscal 2025, up from $53.0 million in the same period of fiscal 2024[81] Tax and Cash Flow - The effective tax rate decreased to 14.4% in the first six months of fiscal 2025, down from 16.9% in the same period of fiscal 2024[89] - Effective tax rate decreased to 21.0% in Q2 fiscal 2025, down from 21.2% in Q2 fiscal 2024[102] - Net cash provided by operating activities increased by 61% to $407.7 million in the first six months of fiscal 2025, up from $252.8 million in the same period of fiscal 2024[109] - Net cash used in investing activities totaled $339.8 million in the first six months of fiscal 2025, primarily for acquisitions of $286.2 million[111] Capital Expenditures and Debt - Anticipated capital expenditures for fiscal 2025 are approximately $65 to $70 million[106] - Total debt to shareholders' equity ratio was 56.5% as of April 30, 2025[106] Market Outlook and Challenges - Company remains confident in achieving net sales growth across both FSG and ETG segments, driven by strong organic demand[105] - The company faces challenges from public health threats, such as the COVID-19 pandemic, which could impact liquidity and cash generation[127] - Lower commercial air travel and airline purchasing decisions may lead to decreased demand for the company's goods and services[127] - Governmental and regulatory demands, along with reductions in defense and space spending, could negatively affect sales[127] - The ability to introduce new products at profitable pricing levels is crucial for maintaining sales growth[127] - Product development and manufacturing difficulties may increase costs and delay sales[127] - Cybersecurity events could adversely impact the company's business operations[127] - The company must navigate acquisition processes, including obtaining governmental approvals, to achieve operating synergies[127] - There have been no material changes in the company's sensitivity to market risk as disclosed in the previous annual report[128]

Financial Performance - Net income increased by 27% to $156.8 million, or $1.12 per diluted share, in Q2 2025, compared to $123.1 million, or $0.88 per diluted share, in Q2 2024[1] - Net sales reached a record $1,097.8 million in Q2 2025, up 15% from $955.4 million in Q2 2024[2] - Operating income rose 19% to a record $248.2 million in Q2 2025, compared to $209.2 million in Q2 2024[2] - Net sales for the three months ended April 30, 2025, increased to $1,097,820, a 14.9% rise from $955,395 in the same period of 2024[34] - Operating income for the three months ended April 30, 2025, was $248,152, up 18.6% from $209,153 in the prior year[34] - Net income attributable to HEICO for the three months ended April 30, 2025, was $156,793, representing a 27.4% increase compared to $123,146 in 2024[34] - For the six months ended April 30, 2025, net sales reached $2,128,042, a 14.9% increase from $1,851,758 in the same period of 2024[36] - The company's EBITDA for the six months ended April 30, 2025, was $571,614, up 19.9% from $476,838 in 2024[43] Cash Flow and Assets - Cash flow from operating activities increased by 45% to $204.7 million in Q2 2025, up from $141.1 million in Q2 2024[7] - Cash and cash equivalents increased to $242,309 as of April 30, 2025, compared to $162,103 at the end of October 2024[41] - Total assets grew to $8,092,176 as of April 30, 2025, from $7,592,822 at the end of October 2024[41] Debt and Ratios - The total debt to net income ratio improved to 3.79x as of April 30, 2025, down from 4.34x as of October 31, 2024[8] - The net debt to EBITDA ratio improved to 1.86 as of April 30, 2025, compared to 2.06 in the prior year[43] Segment Performance - The Flight Support Group's net sales increased 19% to a record $767.1 million in Q2 2025, up from $647.2 million in Q2 2024[11] - The Electronic Technologies Group's net sales increased 7% to $342.2 million in Q2 2025, up from $319.3 million in Q2 2024[18] - The Flight Support Group achieved 14% organic net sales growth in Q2 2025, reflecting increased demand across all product lines[10] - The Electronic Technologies Group's operating margin was 22.8% in Q2 2025, down from 23.6% in Q2 2024, primarily due to a lower gross profit margin[23] Tax Benefits - The company recognized a $27.2 million discrete tax benefit from stock option exercises during the first quarter of fiscal 2025, increasing net income attributable to HEICO by $26.5 million[40] Growth Strategy - The Company aims to achieve net sales growth across both segments, driven by strong organic demand and recent acquisitions[9]

Financial Performance - Consolidated net sales for the first quarter of fiscal 2025 increased by 15% to a record $1,030.2 million, up from $896.4 million in the first quarter of fiscal 2024[79] - Operating income rose by 26% to a record $226.8 million in the first quarter of fiscal 2025, compared to $180.2 million in the same period last year[83] - Net income attributable to HEICO increased by 46% to a record $168.0 million, or $1.20 per diluted share, in the first quarter of fiscal 2025, up from $114.7 million, or $0.82 per diluted share, in the first quarter of fiscal 2024[88] - Gross profit margin improved to 39.4% in the first quarter of fiscal 2025, up from 38.7% in the first quarter of fiscal 2024[80] Research and Development - Total new product research and development expenses were $27.6 million in the first quarter of fiscal 2025, an increase from $25.1 million in the first quarter of fiscal 2024[80] Cash Flow and Operating Activities - Net cash provided by operating activities increased by 82% to $203.0 million in the first quarter of fiscal 2025, up from $111.7 million in the first quarter of fiscal 2024[93] Tax and Capital Expenditures - The effective tax rate decreased to 7.0% in the first quarter of fiscal 2025, down from 11.8% in the first quarter of fiscal 2024[87] - Anticipated capital expenditures for fiscal 2025 are approximately $65 to $70 million[90] Debt and Equity - The total debt to shareholders' equity ratio was 61.8% as of January 31, 2025[90] - The company completed a public offer and sale of senior unsecured notes totaling $1.2 billion, consisting of $600 million of 5.25% Senior Notes due August 1, 2028 and $600 million of 5.35% Senior Notes due August 1, 2033[98] Assets and Liabilities - As of January 31, 2025, the Guarantor Group reported current assets of $1,684,364, noncurrent assets of $4,703,981, and current liabilities of $511,707[105] - The Guarantor Group's noncurrent liabilities stood at $2,964,285 as of January 31, 2025, an increase from $2,793,193 as of October 31, 2024[105] Future Outlook and Risks - The company aims to achieve net sales growth across both segments, driven by strong organic demand and recent acquisitions[89] - The company anticipates potential risks affecting future performance, including public health threats, liquidity issues, and lower demand for goods and services due to airline purchasing decisions[108] Market Risk and Sensitivity - The company has not reported any material changes in its sensitivity to market risk since the last annual report[111] Subsidiary Guarantees and Transactions - The subsidiary guarantees under the notes will be released if a subsidiary ceases to guarantee obligations under the Credit Facility[100] - The company’s cash flow and ability to service guaranteed debt securities depend on the earnings of its subsidiaries[103] - The company issued the notes under an Indenture with Truist Bank as trustee, ensuring equal ranking with existing and future senior unsecured indebtedness[99] - The company’s intercompany transactions include net sales of $2,531 and management fees of $971 for the three months ended January 31, 2025[106]

Financial Performance - HEICO Corporation reported a record net income of $168.0 million, a 46% increase from $114.7 million in Q1 fiscal 2024, translating to $1.20 per diluted share[1][4]. - Net sales reached a record $1,030.2 million, up 15% from $896.4 million in Q1 fiscal 2024, with an operating income increase of 26% to $226.8 million[2][27]. - The consolidated operating margin improved to 22.0%, up from 20.1% in the same quarter last year[2]. - HEICO's operating income for the Electronic Technologies Group increased 38% to $76.5 million, up from $55.3 million in Q1 fiscal 2024[16]. - For the first quarter of fiscal 2025, HEICO reported a net income of $181.6 million, a 44.8% increase from $125.5 million in the same period of fiscal 2024[32]. - HEICO's EBITDA for the three months ended January 31, 2025, was $273.9 million, a 22.1% increase from $224.4 million in the prior year[34]. Cash Flow and Debt Management - Cash flow from operating activities surged 82% to $203.0 million, compared to $111.7 million in Q1 fiscal 2024[6]. - The total debt to net income ratio was 4.15x as of January 31, 2025, down from 4.34x as of October 31, 2024[8]. - HEICO's total debt as of January 31, 2025, was $2.35 billion, with a net debt of $2.19 billion after accounting for cash and cash equivalents[34]. Acquisitions and Growth - HEICO executed acquisitions totaling approximately $255 million during the quarter, without significantly increasing leverage[7]. - The company made acquisitions totaling $254.8 million during the quarter, compared to $46.2 million in the same period last year[32]. - The company anticipates continued net sales growth in fiscal 2025, driven by strong organic demand and recent acquisitions[9]. Sales Performance by Segment - The Flight Support Group's net sales increased 15% to $713.2 million, with a 13% organic growth driven by aftermarket replacement parts[11][10]. - The Electronic Technologies Group's net sales rose 16% to $330.3 million, reflecting strong demand for defense, space, and aerospace products[15]. Asset and Equity Changes - Total assets increased to $7.89 billion as of January 31, 2025, up from $7.59 billion on October 31, 2024, reflecting a growth of 3.9%[31]. - The company’s inventories increased to $1.22 billion, up from $1.17 billion, indicating a rise of 4.5%[31]. - HEICO's current liabilities decreased to $618.3 million from $663.9 million, a reduction of 6.8%[31]. - Shareholders' equity increased to $3.81 billion as of January 31, 2025, up from $3.70 billion, reflecting a growth of 3.0%[31]. Tax Benefits - The company recognized a discrete tax benefit of $27.2 million from stock option exercises, increasing net income attributable to HEICO by $26.5 million, or $0.19 per share[30].

Financial Performance - Consolidated net sales increased by 30% to a record $3,857.7 million in fiscal 2024, up from $2,968.1 million in fiscal 2023[197]. - Flight Support Group (FSG) net sales rose by 49% to $2,639.4 million, driven by $643.5 million from acquisitions and 13% organic growth[197]. - Electronic Technologies Group (ETG) net sales increased by 3% to $1,263.6 million, with $40.7 million from acquisitions, but a 2% organic decline[197]. - Net income attributable to HEICO increased by 27% to a record $514.1 million, or $3.67 per diluted share, in fiscal 2024[211]. - Operating income for the same period was $697.7 million, leading to a net income from consolidated operations of $559.5 million, and net income attributable to HEICO was $526.0 million[242]. - Operating income increased to $824,455 thousand in 2024, up 31.8% from $625,339 thousand in 2023[288]. - The company reported a comprehensive income attributable to HEICO of $528,213 thousand for 2024, compared to $409,915 thousand in 2023, marking a 28.9% increase[290]. Expenses and Costs - Consolidated operating income increased by 32% to a record $824.5 million, with FSG operating income rising by 53% to $593.1 million[204]. - Total new product research and development expenses rose to $111.3 million in fiscal 2024, up from $95.8 million in fiscal 2023[199]. - Interest expense increased to $149.3 million in fiscal 2024, compared to $73.0 million in fiscal 2023, primarily due to higher outstanding debt from acquisitions[207]. - Consolidated selling, general and administrative expenses were $677.3 million in fiscal 2024, up from $528.1 million in fiscal 2023, with a decrease in SG&A as a percentage of net sales to 17.6%[200]. - The company incurred acquisition costs of $20.0 million for Wencor and $5.5 million for Exxelia, which were recorded as SG&A expenses[364][372]. Cash Flow and Debt - Net cash provided by operating activities increased by $223.6 million, a 50% increase, reaching $672.4 million in fiscal 2024[220]. - Total debt decreased from $2,478.1 million in October 2023 to $2,229.4 million in October 2024, resulting in a total debt to total capitalization ratio of 38%[215]. - Net cash used in investing activities totaled $293.2 million in fiscal 2024, primarily for acquisitions of $219.3 million[222]. - Cash and cash equivalents decreased to $162,103 thousand in 2024 from $171,048 thousand in 2023, a decline of 5.2%[283]. - Payments on revolving credit facility totaled $(365,000), a decrease from $(989,000) in the previous year, indicating improved cash management[306]. Acquisitions and Growth Strategy - The company plans to drive growth through recently completed acquisitions and is positioned to capitalize on future acquisition opportunities[212]. - The company completed the acquisition of Wencor Group for a total consideration of $2,054.366 million, including $1,923.098 million in cash and 1,137,628 shares of HEICO Class A Common Stock[361][362]. - The acquisition of Wencor contributed approximately $185.7 million to the company's consolidated net sales and $22.6 million to net income for the fiscal year ended October 31, 2023[364]. - The company acquired Exxelia International SAS for a total consideration of $503.996 million, with cash paid amounting to $515.785 million, net of cash acquired[369]. - The company also acquired 87.9% of Mid Continent Controls, Inc. and 92.5% of Marway Power Solutions, Inc. in October and September 2024, respectively, using cash from operating activities[374][375]. Financial Position and Assets - Total assets as of October 2024 were $7,592,822 thousand, an increase from $7,195,063 thousand as of October 2023[283]. - Current assets, excluding net intercompany receivables, totaled $1,642.3 million, while current liabilities were $546.7 million, resulting in a current ratio of approximately 3.0[242]. - The company’s goodwill increased to $3,380,295 thousand in 2024 from $3,274,327 thousand in 2023, reflecting a growth of 3.2%[283]. - Total liabilities decreased to $3,529,260 thousand in 2024 from $3,637,105 thousand in 2023, a reduction of 3.0%[283]. Tax and Shareholder Information - Effective tax rate decreased to 17.5% in fiscal 2024, down from 20.0% in fiscal 2023, reflecting larger tax benefits from stock option exercises[209]. - Cash dividends declared were $29,069 thousand, reflecting a per-share dividend of $0.21, up from $27,370 thousand or $0.20 per share in the prior year[300]. - Basic net income per share attributable to HEICO shareholders rose to $3.71 in 2024, up from $2.94 in 2023, reflecting a 26.2% increase[288]. Accounting and Reporting - The Company recognizes revenue when control of a promised good or service is transferred, primarily at a point-in-time, with the majority of revenue recognized upon shipment or delivery[336]. - The Company utilizes the cost-to-cost method for over-time revenue recognition, measuring progress based on costs incurred relative to total estimated costs[342]. - Stock-based compensation expense is recorded based on the grant date fair value of stock options, recognized ratably over the award's vesting period[349]. - The Company is evaluating the impact of ASU 2023-07 on its disclosures, which expands reportable segment disclosure requirements effective for fiscal 2025[357].

Financial Performance - HEICO Corporation reported a record net income of $139.7 million, a 35% increase from $103.4 million in Q4 2023, translating to $0.99 per diluted share[1]. - Net sales for Q4 2024 reached $1,013.7 million, an 8% increase from $936.4 million in Q4 2023, with an operating income of $218.6 million, up 15% from $189.4 million[2]. - For the fiscal year ended October 31, 2024, net sales increased 30% to $3,857.7 million, while operating income rose 32% to $824.5 million[3]. - Net income attributable to HEICO for the fiscal year ended October 31, 2024, was $514,109, representing a 27.4% increase from $403,596 in 2023[41]. - Basic net income per share attributable to HEICO shareholders for the fiscal year ended October 31, 2024, was $3.71, compared to $2.94 in 2023, reflecting a 26.2% increase[41]. - Net income attributable to HEICO for the fourth quarter of 2024 was $139,688,000, up from $103,426,000 in the same quarter of 2023, marking a growth of approximately 35%[54]. - EBITDA for the fiscal year 2024 was $1,002,230,000, compared to $758,310,000 in 2023, reflecting a year-over-year increase of about 32.2%[52]. - EBITDA for the fourth quarter of 2024 was $263,977,000, compared to $234,216,000 in the fourth quarter of 2023, an increase of about 12.7%[54]. Segment Performance - The Flight Support Group achieved a record net sales of $691.8 million in Q4 2024, a 15% increase from $601.7 million in Q4 2023, with a 12% organic net sales growth[14]. - The Electronic Technologies Group's net sales were $336.2 million in Q4 2024, down from $342.5 million in Q4 2023, primarily due to lower defense product sales[21]. - The Flight Support Group generated net sales of $2,639,354 for the fiscal year ended October 31, 2024, a significant increase from $1,770,185 in 2023[41]. - The Flight Support Group's operating income for the fiscal year ended October 31, 2024, was $593,074, up from $387,297 in 2023, marking a 53.1% increase[41]. - The Flight Support Group's operating margin improved to 22.3% in Q4 2024, up from 19.0% in Q4 2023, reflecting lower acquisition costs and improved gross profit margin[18]. Cash Flow and Liquidity - Cash flow from operating activities increased 39% to $205.6 million in Q4 2024, up from $148.4 million in Q4 2023, and increased 50% to $672.4 million for the fiscal year[9]. - Cash and cash equivalents at the end of the fiscal year on October 31, 2024, were $162,103, down from $171,048 in 2023[48]. - Cash and cash equivalents as of October 31, 2024, were $162,103,000, compared to $171,048,000 in 2023, indicating a slight decrease in liquidity[55]. Debt and Financial Ratios - The total debt to net income ratio improved to 4.34x as of October 31, 2024, down from 6.14x a year earlier, while the net debt to EBITDA ratio decreased to 2.06x from 3.04x[8]. - The total debt as of October 31, 2024, was $2,229,374,000, while net debt stood at $2,067,271,000, down from $2,307,030,000 in 2023[55]. - The total debt to net income attributable to HEICO ratio was 4.34 for the fiscal year 2024, indicating a leverage increase compared to the previous year[56]. - The net debt to EBITDA ratio improved to 2.06 in 2024, down from 3.04 in 2023, suggesting better debt management[56]. Dividends and Future Plans - HEICO's Board declared a semiannual cash dividend of $0.11 per share, marking the 93rd consecutive semiannual cash dividend since 1979[11]. - HEICO plans to drive growth in fiscal 2025 through organic growth and recent acquisitions, focusing on new product development and market expansion[13]. Other Financial Information - The company incurred acquisition costs related to the Wencor acquisition, which decreased net income attributable to HEICO by approximately $13.6 million during the fourth quarter of fiscal 2023[43]. - The company recognized a $13.6 million discrete tax benefit from stock option exercises in the first quarter of fiscal 2024, increasing net income attributable to HEICO by $13.3 million[44]. - Interest expense for the fiscal year 2024 was $149,313,000, significantly higher than $72,984,000 in 2023, indicating increased borrowing costs[52]. - The company reported a depreciation and amortization expense of $175,331,000 for 2024, up from $130,043,000 in 2023, reflecting increased capital investments[52]. - Total assets increased to $7,592,822 as of October 31, 2024, compared to $7,195,063 in 2023, indicating a growth of 5.5%[48].