HEICO (HEI_A) - 2025 Q3 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements 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) 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] - 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] - Total shareholders' equity grew by $515.0 million (13.9%), reflecting increased retained earnings and capital in excess of par value[8] Condensed Consolidated Statements of Operations (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] - 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] Condensed Consolidated Statements of Comprehensive Income (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] - 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] Condensed Consolidated Statements of Shareholders' Equity (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] - Cash dividends paid amounted to $32.0 million ($.23 per share) for the nine months ended July 31, 2025[14] Condensed Consolidated Statements of Cash Flows (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][114] - 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][115] - 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][116] Notes to Condensed Consolidated Financial Statements (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 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] - HEICO operates with two segments: Flight Support Group (FSG) and Electronic Technologies Group (ETG)[19] - 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][21][22][23] 2. ACQUISITIONS 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][25][27][28][29] - 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][25][27][28][29] 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] 3. SELECTED FINANCIAL STATEMENT INFORMATION 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] 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] 4. GOODWILL AND OTHER INTANGIBLE ASSETS 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] 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] 5. LONG-TERM DEBT 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] - 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][53] 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 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] - 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] 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 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][95] - 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][107] - 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] 8. FAIR VALUE MEASUREMENTS 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][72] - 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] 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 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] 10. OPERATING SEGMENTS 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][85][90] - 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][85][90] 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 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] 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] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 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 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][83] - HEICO's business is comprised of two operating segments: the Flight Support Group (FSG) and the Electronic Technologies Group (ETG)[82] Results of Operations 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 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] - 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] - 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] - 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] - 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] - Net income attributable to HEICO increased 34% to $502.1 million, or $3.57 per diluted share[97] Comparison of Third Quarter of Fiscal 2025 to Third Quarter of Fiscal 2024 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] - 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] - ETG's growth included 7% organic growth and $13.9 million from acquisitions, mainly from other electronics, defense, and space products[98] - 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] - 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] - Net income attributable to HEICO increased 30% to $177.3 million, or $1.26 per diluted share[109] 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] - The company plans to accelerate growth through acquisitions and organic initiatives aimed at gaining market share, while maintaining a strong financial position[110] Liquidity and Capital Resources 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] - Anticipated fiscal 2025 capital expenditures are approximately $65 to $70 million[111] - 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] - 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] - Net cash used in investing activities totaled $697.7 million, mainly for $629.9 million in acquisitions[115] - 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] Guarantor Group Summarized Financial Information 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][120] - 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][123][126] 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 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] Item 4. Controls and Procedures 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] - No material changes in internal control over financial reporting occurred during the third quarter ended July 31, 2025[133] PART II. OTHER INFORMATION Item 5. Other Events 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] Item 6. Exhibits 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] 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]