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, up from $824.5 million in fiscal 2024, with the FSG's operating income increasing by 27% and the ETG's by 13% [176] - Net income attributable to HEICO increased by 34% to a record $690.4 million, or $4.90 per diluted share, in fiscal 2025, up from $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, contributing significantly to the increase in cash flow [188] Sales Growth - The FSG's organic net sales growth was 14%, with significant contributions from aftermarket replacement parts, repair and overhaul parts, and specialty products, resulting in net sales increases of $263.9 million, $67.8 million, and $35.6 million, respectively [170] - The ETG's organic net sales growth was 7%, primarily due to increased demand for defense, space, and aerospace products, with net sales increases of $29.6 million, $28.4 million, and $20.6 million, respectively [170] - The company expects net sales growth in fiscal 2026 driven by organic growth and recent acquisitions, while maintaining a focus on strategic acquisitions and financial resilience [183] Cash Flow and Debt Management - 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] - The company reported net cash used in investing activities of $731.7 million in fiscal 2025, primarily for acquisitions totaling $629.8 million [192] - Net cash used in financing activities totaled $150.7 million in fiscal 2025, including $550.0 million in payments on the revolving credit facility [194] - Total debt to total capitalization improved to 33% in fiscal 2025, down from 38% in fiscal 2024, indicating enhanced financial stability [185] - Interest expense decreased to $129.9 million in fiscal 2025, down from $149.3 million in fiscal 2024, due to a lower weighted-average interest rate and a decrease in outstanding debt [178] Capital Expenditures and Future Outlook - Capital expenditures in fiscal 2026 are anticipated to be approximately $80 to $90 million, supporting ongoing growth initiatives [186] Financial Position and Liabilities - The company’s total liabilities as of October 31, 2025, included $2,751.8 million in noncurrent liabilities [210] - The company completed the public offer of $600 million principal amount of senior unsecured notes with interest rates of 5.25% and 5.35% due in 2028 and 2033, respectively [199] - The estimated aggregate Redemption Amount of Put Rights as of October 31, 2025, is approximately $467.4 million [200] - The company was in compliance with all financial and nonfinancial covenants of the Credit Facility as of October 31, 2025 [198] Working Capital and Contingent Considerations - The increase in net working capital in fiscal 2025 was $58.7 million, driven by a $75.6 million increase in accounts receivable [188] - As of October 31, 2025, the company accrued $46.2 million in contingent consideration, up from $30.2 million in 2024 [219] Impairment and Fair Value - The company recognized no impairment loss for goodwill as of October 31, 2025, with fair values significantly exceeding carrying values [222] - An aggregate impairment loss of $7.5 million was recognized during fiscal 2024 related to trade names at two subsidiaries [223] - The company tests goodwill for impairment annually, considering macroeconomic conditions and industry factors [220][221] - The fair value of non-amortizing intangible assets is derived using an income approach based on management's assumptions [223] Risks and Uncertainties - The company is subject to risks including public health threats, liquidity issues, and competition affecting sales and growth [225][230] - Forward-looking statements are based on management's estimates and are subject to risks and uncertainties that may cause actual results to differ materially [226] Currency and Interest Rate Sensitivity - A hypothetical 10% weakening in the Euro exchange rate would not have a material effect on the company's financial results as of October 31, 2025 [228] - 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 operations [227]

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]

Company Operations - The company is currently offering homes for sale in 140 communities across 27 markets in 13 states, with an average sales price of $519,000 nationwide in fiscal 2025[12] - The company employed 1,891 full-time associates as of October 31, 2025, with 1,194 involved in homebuilding operations[25] - The company ended fiscal 2025 with 140 active selling communities, an increase from 130 in fiscal 2024, with an average of 129 active selling communities for the year[58] - The average number of homes contracted but not delivered in active selling communities totaled 8,199, with 12,673 remaining homes available[59] - The company’s residential development activities include site planning, obtaining regulatory approvals, and constructing necessary infrastructure and amenities[55] Financial Performance - Housing revenues for fiscal 2025 totaled $2.85 billion, with 5,496 homes delivered and an average sales price of $519,088[56] - For the year ended October 31, 2025, consolidated housing revenues totaled $2.85 billion from 5,496 homes delivered, with an average sales price of $519,088[56] - The company originated loans in fiscal 2025, with 20.2% of home buyers paying in cash and 80.0% obtaining mortgages, including 58.7% conforming conventional loans and 40.3% FHA/VA loans[53] - The company repurchased $26.6 million, $113.5 million, and $245.0 million in aggregate principal of senior secured notes in fiscal years 2025, 2024, and 2023, respectively[36] - The company completed a debt exchange in May 2024, resulting in a $75.3 million principal reduction of senior notes and term loans, with an aggregate cash payment of $31.5 million[36] Land and Inventory Management - Controlled land as of October 31, 2025, included 21,970 total home sites, with 20,456 under option valued at $1.39 billion[65] - The company has 20,456 home sites under option, valued at $1.387 billion, and 1,514 home sites owned, valued at $42.065 million[65] - The company has spent $99.0 million on option fees and deposits for properties under option as of October 31, 2025[65] - The company walked away from 14,902 lots, resulting in charges to income before income taxes of $18.2 million, compared to 3,800 lots and $1.6 million in fiscal 2024, and 3,838 lots and $1.5 million in fiscal 2023[44] - The company may mothball certain communities during declining market conditions, reclassifying inventory on its balance sheets[66] Market Strategy and Competition - The company aims to achieve economies of scale by becoming a significant builder in each of its selected markets[37] - The company is among the top 20 homebuilders in the U.S. in terms of homebuilding revenues and deliveries, competing with various builders and developers[69] - The company operates in highly competitive markets, ranking among the top 20 homebuilders in the U.S. based on revenues and home deliveries[69] - The company has a disciplined approach to land purchases, focusing on price points that will generate appropriate investment returns amid elevated sales concessions[34] - The company is subject to extensive regulations that can delay or restrict homebuilding operations, impacting future revenues and earnings[70] Operational Efficiency - The company has reduced construction and administrative costs by consolidating vendors and executing national purchasing contracts, improving efficiency in operations[67] - The company improved cycle times by approximately 30 days since the beginning of fiscal 2023, approaching pre-pandemic averages in many markets[48] - Labor and material shortages that arose during the COVID-19 pandemic have improved, with lumber prices easing as supply chain conditions have stabilized[67] - The company experienced a significant rise in lumber prices due to supply chain challenges, but conditions have improved, easing price pressures[67] - Labor and material shortages initially caused by the COVID-19 pandemic have improved, but future shortages remain unpredictable[67] Employee and Community Engagement - The company plans to reinstate the tuition reimbursement benefit effective January 1, 2026, which had been suspended since May 2009[32] - The company has extended its partnership with the Building Talent Foundation for another two years to advance education and training for underrepresented groups in the construction industry[28] - The company is committed to fostering a diverse workforce and has extended its partnership with the Building Talent Foundation to advance education and training for underrepresented groups[28] Marketing and Customer Engagement - The company’s marketing strategy includes a national call center to support customer leads and facilitate virtual tours and in-person model home tours[50] - The company has shifted focus to increasing the availability of quick-move-in homes (QMI homes) to provide customers with more certainty on mortgage payments[35] - The company has executed "Build-For-Rent" agreements to supplement its existing for-sale business, increasing inventory turnover in fiscal years 2023, 2024, and 2025[35]

Company Operations - The company is currently offering homes for sale in 140 communities across 27 markets in 13 states, with an average sales price of $519,000 nationwide in fiscal 2025[12]. - The company employed 1,891 full-time associates as of October 31, 2025, with 1,194 involved in homebuilding operations[25]. - The company ended fiscal 2025 with 140 active selling communities, an increase from 130 in the previous year[58]. - The average number of active selling communities increased to 129 in fiscal 2025 from 119 in fiscal 2024[58]. - The company has a strategic approach to land purchases, focusing on price points that will generate appropriate investment returns while considering current market conditions[34]. - The company has extended its partnership with the Building Talent Foundation for another two years to advance education and training for underrepresented groups in the construction industry[28]. - The company has shifted focus to increasing the availability of quick-move-in homes (QMI homes) to provide customers with more certainty on mortgage payments[35]. - The company has executed "Build-For-Rent" agreements to supplement its existing for-sale business, contributing to increased inventory turnover in fiscal years 2023, 2024, and 2025[35]. Financial Performance - Housing revenues for fiscal 2025 totaled $2,852,908 thousand, with an average sales price of $519,088[56]. - For the year ended October 31, 2025, consolidated housing revenues totaled $2,852.9 million, with 5,496 homes delivered and an average sales price of $519,088[56]. - The backlog at October 31, 2025, included signed contracts for 1,517 homes with sales values aggregating $0.9 billion[61]. - The company originated loans in fiscal 2025, with 20.2% of home buyers paying in cash and 80.0% obtaining mortgages[53]. - The company’s financial services segment provides competitive financing, with 58.7% of loans being conforming conventional loans and 40.3% FHA/VA loans in fiscal 2025[53]. Land and Inventory Management - Controlled land as of October 31, 2025, included 21,970 total home sites, with option prices aggregating $1,386,751 thousand[65]. - As of October 31, 2025, the total controlled land inventory is 21,970 home sites, with a combined book value of $178.447 million[65]. - The company has 20,456 home sites under option, valued at $136.382 million, and 1,514 home sites owned, valued at $42.065 million[65]. - The company walked away from 14,902 lots, resulting in charges to income before income taxes of $18.2 million[44]. - The company typically mothballs certain communities during declining markets, reclassifying inventory on its balance sheets[66]. Cost Management and Efficiency - The company has reduced construction and administrative costs by consolidating vendors and executing national purchasing contracts, improving efficiency in operations[67]. - The company improved cycle times by approximately 30 days since the beginning of fiscal 2023, nearing pre-pandemic averages[48]. - Labor and material shortages that arose during the COVID-19 pandemic have improved, with lumber prices easing as supply chain conditions have stabilized[67]. - The company experienced a significant rise in lumber prices due to supply chain challenges, but conditions have improved, easing price pressures[67]. - Labor and material shortages initially caused by the COVID-19 pandemic have improved, but future shortages remain unpredictable[67]. Regulatory Environment - The company is subject to extensive regulations that can cause delays and increase costs in homebuilding operations, including zoning and environmental laws[70][72]. - The company is subject to extensive regulations that can affect land development and homebuilding, including potential building moratoriums due to insufficient infrastructure[70]. Employee Benefits and Initiatives - The company plans to reinstate the tuition reimbursement benefit effective January 1, 2026, which had been suspended since May 2009[32]. - The company has been actively involved in initiatives to advance education and training for underrepresented groups in the residential construction industry through the Building Talent Foundation[28]. Debt Management - The company repurchased $26.6 million, $113.5 million, and $245.0 million in aggregate principal of senior secured notes in fiscal years 2025, 2024, and 2023, respectively[36]. - In September 2025, the company issued $900.0 million in senior notes, using the proceeds to redeem outstanding senior secured notes and pay off its secured term loan credit facility[36]. - The company completed a debt exchange in May 2024, resulting in a $75.3 million principal reduction of senior notes and term loans, including a cash payment of $31.5 million[36].

Financial Performance - Total service revenue for the second quarter increased by 17% to $1,503.3 million compared to $1,280.8 million in the prior year period[119]. - Total revenue for the six months ended November 30, 2025, rose by 18% to $3,097.6 million from $2,635.4 million in the prior year[119]. - Adjusted operating income for the second quarter was $649.0 million, reflecting a 21% increase from $538.1 million in the prior year[119]. - Net income for the second quarter decreased by 4% to $395.4 million compared to $413.4 million in the prior year[120]. - Diluted earnings per share for the second quarter was $1.10, down 4% from $1.14 in the prior year[120]. - Management Solutions revenue increased by 21% to $1,166.4 million for the second quarter compared to $962.9 million in the prior year[120]. - Operating income increased by 6% to $571.9 million for the second quarter, while adjusted operating income grew by 21% to $649.0 million[126]. - Adjusted net income for the first half of 2025 was $895.4 million, an 8% increase from $832.2 million in the first half of 2024[130]. - Adjusted diluted earnings per share rose to $2.48 in the first half of 2025, up 8% from $2.30 in the first half of 2024[130]. - EBITDA for Q2 2025 was $681.3 million, reflecting an 18% increase from $579.1 million in Q2 2024[130]. - Adjusted EBITDA for the first half of 2025 reached $1,378.5 million, an 18% increase from $1,164.9 million in the first half of 2024[130]. Expenses and Costs - Total expenses for the second quarter increased by 27% to $985.7 million compared to $778.8 million in the prior year[120]. - Total expenses rose by 27% to $985.7 million for the second quarter, driven by increased compensation-related expenses and acquisition-related costs[125]. - Acquisition-related costs amounted to $77.1 million for the second quarter, reflecting expenses related to the integration of Paycor[128]. Client Funds and Interest - Interest on funds held for clients rose by 51% to $54.3 million in the second quarter, up from $36.1 million in the prior year[120]. - Funds held for clients increased by 26% to $5,353.2 million for the three months ended November 30, 2025, compared to $4,252.3 million in the prior year[121]. - Average interest rates earned on funds held for clients remained stable at 3.5% for both the current and prior year periods[121]. - Interest on funds held for clients increased by 51% to $54.3 million for the second quarter, attributed to higher average investment balances from the Paycor acquisition[124]. - The average interest rate earned on combined funds held for clients and corporate cash equivalents was 3.7%, slightly down from 3.8% in the prior year[157]. Acquisitions - The acquisition of Paycor was completed on April 14, 2025, enhancing the company's HR technology and advisory solutions[117]. - Management Solutions revenue reached $1.2 billion for the second quarter, reflecting a 21% increase year-over-year, with Paycor contributing approximately 17% to this growth[124]. Tax and Rates - The effective income tax rate remained stable at 24.0% for the second quarter compared to the prior year[120]. - The effective income tax rate was 24.0% for the second quarter, consistent with the prior year period[129]. - The Federal Funds rate decreased to a range of 3.50% to 3.75% effective December 11, 2025, down from 4.00% as of November 30, 2025[123]. - The Federal Funds rate was in the range of 3.75% to 4.00% as of November 30, 2025, and was subsequently decreased to a range of 3.50% to 3.75% effective December 11, 2025[160]. Investments and Cash Flow - Total corporate investments, including cash and restricted cash, amounted to $1.6 billion as of November 30, 2025[132]. - The company had $2.0 billion in unused capacity under unsecured credit facilities as of November 30, 2025[132]. - Long-term borrowings totaled $5.0 billion, with short-term borrowings at $18.2 million as of November 30, 2025[132]. - Net cash provided by operating activities for the six months ended November 30, 2025, was $1,163.3 million, an increase of $322.2 million compared to $841.1 million in the prior year[149]. - Net cash used in investing activities increased to $926.4 million from $302.7 million, reflecting a change of $623.7 million[149]. - Cash dividends per common share increased to $2.16 from $1.96, representing a growth of approximately 10.2%[149]. - The total investment portfolio is expected to average approximately $7.4 billion for the fiscal year ending May 31, 2026, with 40% in short-term securities and 60% in AFS securities[163]. - As of November 30, 2025, the fair value of AFS securities was $4.5 billion, with a weighted-average yield-to-maturity of 3.6%[165]. - The net unrealized losses on the combined funds held for clients and corporate AFS securities were $9.0 million as of November 30, 2025, down from $53.6 million as of May 31, 2025[164]. - A 25-basis-point change in taxable interest rates is expected to affect earnings by approximately $5.5 million to $6.0 million after taxes over a twelve-month period[162]. - As of November 30, 2025, $1.9 billion of AFS securities had fair values below amortized cost, attributed to changes in interest rates rather than credit risk[167]. Accounting and Risk Factors - Recently adopted accounting pronouncements are discussed in Note A of the Notes to Consolidated Financial Statements (Unaudited) in Item 1 of Form 10-Q[172]. - Recently issued accounting pronouncements are also detailed in Note A of the Notes to Consolidated Financial Statements (Unaudited) in Item 1 of Form 10-Q[172]. - Market risk factors are addressed under Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations[173].

Financial Performance - Net sales for the three months ended November 30, 2025, were $144.208 million, a decrease of 0.7% compared to $145.196 million in the same period of 2024[13] - Gross profit for the same period was $73.182 million, down from $74.652 million, reflecting a gross margin of 50.8%[13] - Net earnings decreased to $19.131 million, compared to $21.723 million in the prior year, resulting in earnings per share of $0.36, down from $0.40[13] - Operating profit for the quarter was $28.490 million, down from $31.132 million in the previous year[13] - Comprehensive income of $14.514 million for the three months ended November 30, 2025, compared to $12.047 million in the same period of 2024[15] - Basic and diluted earnings per share for Q4 2025 were both $0.36, down from $0.40 in Q4 2024[61] - Operating profit for the consolidated total in Q4 2025 was $28,490,000, down from $31,132,000 in Q4 2024[67] Assets and Liabilities - Total assets as of November 30, 2025, were $818.061 million, a decrease from $827.867 million at the end of August 2025[18] - Cash and cash equivalents decreased to $139.047 million from $151.558 million, indicating a net decrease of $12.511 million during the quarter[21] - The Company reported a net property, plant, and equipment value of $52.7 million as of November 30, 2025, down from $53.3 million as of August 31, 2025[26] - The Company’s accumulated other comprehensive loss increased to $108.8 million as of November 30, 2025, up from $104.1 million as of August 31, 2025, primarily due to foreign currency translation adjustments[25] - As of November 30, 2025, the total long-term debt, less current maturities, is $179.7 million, a decrease from $182.2 million as of August 31, 2025[48] - The Company has a total senior indebtedness of $188.8 million as of November 30, 2025, down from $190 million as of August 31, 2025[48] Cash Flow and Financing - The company reported cash provided by operating activities of $16.0 million, an increase from $8.6 million in the same quarter of the previous year[21] - The Company incurred financing costs of $2.265 million, a decrease from $2.770 million in the prior year[13] - The Company has $399.5 million available for borrowing under the revolving line of credit facility after accounting for outstanding letters of credit[51] - The Company repurchased and retired 376,814 shares for $14.9 million in the three months ended November 30, 2025, with a total of $200 million authorized for repurchase[60] Operational Highlights - The company continues to focus on operational improvements and strategic growth initiatives despite facing challenges in supply chain and market conditions[9] - The IT&S segment reported net sales of $137,762,000 in Q4 2025, compared to $140,134,000 in Q4 2024, with product sales increasing to $112,111,000[66] - The IT&S segment's operating profit margin decreased to 25.9% in Q4 2025 from 27.1% in Q4 2024[67] - Capital expenditures for the consolidated total in Q4 2025 were $2,677,000, significantly lower than $5,857,000 in Q4 2024[67] Legal and Compliance - The Company provided voluntary self-disclosures to Dutch and U.S. authorities regarding sales linked to the Crimea region of Ukraine, which potentially violated EU and U.S. sanctions[71] - The U.S. investigation closed without further implication, while the Dutch investigation concluded in March 2022, finding that sales transactions violated EU sanctions[71] - The Company has not adjusted its estimate of financial penalties related to ongoing legal proceedings in the Netherlands, believing there will be no material adverse effect on its financial position[72]

Financial Performance - The company reported a net loss of $5,973,499 from continuing operations for the six months ended October 31, 2025, with an accumulated deficit of $8.2 million and negative working capital of $4.19 million [239]. - Net revenues for the three months ended October 31, 2025, were $27,624,503, a decrease of 5.9% compared to $29,351,731 in the same period in 2024 [275]. - Gross profit for the three months ended October 31, 2025, was $6,451,839, down 18.2% from $7,885,654 in 2024 [275]. - The company reported a net loss from continuing operations of $5,212,923 for the three months ended October 31, 2025, compared to a loss of $62,158 in 2024, representing an increase of 8,286.6% [275]. - For the six months ended October 31, 2025, net revenues were approximately $54.8 million, a decrease of $2.7 million or 4.8% from $57.5 million in 2024 [291]. - Net income (loss) attributable to Maison Solutions Inc. for the six months ended October 31, 2025, was a loss of $6.5 million, compared to a profit of $444,899 in 2024, representing a decrease of 1,563.1% [291]. - Net loss from continuing operations increased by 702.5% to $6.04 million in 2025, compared to a net income of $1 million in 2024, primarily due to decreased gross profit and increased operating expenses [306]. Operating Expenses - Total operating expenses increased by 12.2% to $7,808,858 in the three months ended October 31, 2025, compared to $6,959,358 in 2024 [275]. - General and administrative expenses increased by 50.4% to $3,010,952 for the three months ended October 31, 2025, compared to $2,001,346 in 2024 [275]. - Total operating expenses for the six months ended October 31, 2025, were approximately $14.2 million, an increase of $1.2 million or 8.9% from $13.0 million in 2024 [291]. - Total operating expenses rose by 8.9% from approximately $13 million in 2024 to about $14.2 million in 2025, with selling expenses increasing by 1.5% and general and administrative expenses increasing by 28.3% [296][297]. Cash Flow and Financing - Cash and cash equivalents as of October 31, 2025, were approximately $1.37 million, with a working capital deficit of about $4.19 million [307]. - Net cash used in operating activities was approximately $636,479 for the six months ended October 31, 2025, compared to a net cash provided of $4.7 million in 2024 [314][315]. - The company completed an IPO on October 10, 2023, raising net proceeds of approximately $8.72 million from the sale of 2.5 million shares at $4.00 per share [309]. - On November 22, 2023, the company raised approximately $4.60 million through a PIPE offering, selling 1.19 million shares at $4.20 per share [310]. - The company may seek additional financing, which could involve issuing more equity or debt, potentially leading to dilution for existing shareholders [311]. - Net cash used in investing activities was $2.0 million for the six months ended October 31, 2025, primarily due to the purchase of digital assets amounting to $2,037,096 [319]. - Net cash provided by financing activities was approximately $3.3 million for the six months ended October 31, 2025, mainly from a bank loan of $5,250,000 and proceeds from a promissory note of $4,844,000 [320]. Strategic Moves and Investments - The company invested $1,440,000 for a 40% equity interest in HKGF Market of Arcadia, LLC, and an additional $360,000 for another 10% interest, indicating ongoing market expansion efforts [228]. - The company plans to acquire the remaining 90% equity interest in the Alhambra Store, which is currently 10% owned, to operate it as the first satellite store [226]. - The company closed the Maison El Monte store and agreed to pay $100,000 to terminate the lease, reflecting a strategic move to improve profitability [230]. - The company aims to strengthen its sales force and increase marketing activities to boost revenue, indicating a proactive approach to enhance sales performance [240]. Employee Relations - The company has approximately 334 employees as of October 31, 2025, with no unionization plans reported, maintaining good employee relations [236]. Liabilities and Obligations - The derivative liability increased to $2,462,150 as of October 31, 2025, from $1,004,230 as of April 30, 2025 [257]. - The company's contract liability related to gift cards was $631,610 as of October 31, 2025, down from $701,929 as of April 30, 2025 [248]. - The total contractual obligations of the Company as of October 31, 2025, amount to $51,336,132, with $5,202,868 due within one year [348]. Digital Assets - Digital assets held as of October 31, 2025, included 2,550,515 units of Worldcoin with a cost basis of $2,919,500 and a fair value of $2,037,096 [266]. - Other expenses surged to $3.37 million in 2025 from $386,627 in 2024, driven by significant losses including $2.69 million on note conversion and $882,404 in unrealized losses on digital assets [299].

Financial Performance - Revenues for the quarter ended November 30, 2025, were $100.2 million, an increase of $0.4 million or 0.4% compared to the same quarter last year[1] - Gross profit for the quarter was $32.0 million, resulting in a gross profit margin of 31.9%, up from 29.3% in the same quarter last year[1] - Net earnings for the quarter were $10.8 million, or $0.42 per diluted share, compared to $10.2 million, or $0.39 per diluted share for the same quarter last year[1] - For the nine-month period ended November 30, 2025, revenues were $296.0 million, a decrease of $5.9 million or 2.0% compared to the same period last year[2] - EBITDA for the quarter was $19.2 million, or 19.2% of sales, reflecting year-over-year growth from $18.2 million, or 18.2% of sales, reported in the same quarter last year[3] Acquisition Impact - The acquisition of CFC Print & Mail contributed approximately $5.8 million in revenues for the quarter and $16.4 million for the nine-month period[4] Shareholder Returns - The company repurchased approximately 793,000 shares of stock, resulting in an estimated $0.02 increase in earnings per share for the current quarter[7] - A quarterly cash dividend of $0.25 per share was declared, payable on February 5, 2026[13] Financial Position - The company maintains a strong balance sheet with no debt and cash reserves of $31.3 million at the end of the period[8] - Cash provided by operating activities for the nine-month period was $34.9 million, compared to $53.1 million for the same period last year[18]

Financial Performance - Net sales in Q4 2025 increased by 5% to $22.8 million, compared to $21.7 million in Q4 2024[8] - Net loss from continuing operations in Q4 2025 was $0.5 million, or $(0.08) per diluted share, an improvement from a net loss of $1.4 million, or $(0.24) per diluted share, in Q4 2024[8] - EBITDA for Q4 2025 was $1.1 million, up from $0.8 million in Q4 2024[8] - Net sales for fiscal 2025 increased by 6% to $84.8 million, compared to $79.6 million in fiscal 2024[8] - Net loss from continuing operations for fiscal 2025 was $0.9 million, or $(0.15) per diluted share, significantly improved from a net loss of $8.6 million, or $(1.44) per diluted share, in fiscal 2024[8] - EBITDA for fiscal 2025 was $6.0 million, compared to $(0.7) million in fiscal 2024[8] - Adjusted EBITDA in Q4 2025 was $1.8 million, compared to $0.8 million in Q4 2024[8] Customer Demand - Customer backlog stood at $119.2 million at the end of fiscal 2025, indicating strong demand for forging solutions[5] Strategic Focus - The company focused on cost reduction and selective price increases to improve margins[5] - The company plans to increase production to meet customer needs for the upcoming year and beyond[5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _____________________ Commission file number 1-5978 SIFCO Industries, Inc. (Exact name of registrant as specified in its charter) | Ohio | 34-0553950 | ...