HEICO Corporation Reports Record Net Income (Up 30%) on Record Operating Income (Up 22%) and Record Net Sales (Up 16%) for the Third Quarter of Fiscal 2025

HOLLYWOOD, FL and MIAMI, FL / ACCESS Newswire / August 25, 2025 / HEICO CORPORATION (NYSE:HEI.A)(NYSE:HEI) today reported an increase in net income of 30% to a record $177.3 million, or $1.26 per diluted share, in the third quarter of fiscal 2025, up from $136.6 million, or $.97 per diluted share, in the third quarter of fiscal 2024. Net income increased 34% to a record $502.1 million, or $3.57 per diluted share, in the first nine months of fiscal 2025, up from $374.4 million, or $2.67 per diluted share, in the first nine months of fiscal 2024.

Net sales increased 16% to a record $1,147.6 million in the third quarter of fiscal 2025, up from $992.2 million in the third quarter of fiscal 2024. Operating income increased 22% to a record $265.0 million in the third quarter of fiscal 2025, up from $216.4 million in the third quarter of fiscal 2024. The Company's consolidated operating margin improved to 23.1% in the third quarter of fiscal 2025, up from 21.8% in the third quarter of fiscal 2024.

Net sales increased 15% to a record $3,275.6 million in the first nine months of fiscal 2025, up from $2,844.0 million in the first nine months of fiscal 2024. Operating income increased 22% to a record $740.0 million in the first nine months of fiscal 2025, up from $605.8 million in the first nine months of fiscal 2024. The Company's consolidated operating margin improved to 22.6% in the first nine months of fiscal 2025, up from 21.3% in the first nine months of fiscal 2024.

Continued commercial aerospace product sales increases have resulted in twenty consecutive quarters of sequential growth in Flight Support Group net sales.

EBITDA increased 21% to $316.4 million in the third quarter of fiscal 2025, up from $261.4 million in the third quarter of fiscal 2024. EBITDA increased 20% to $888.1 million in the first nine months of fiscal 2025, up from $738.3 million in the first nine months of fiscal 2024. See our reconciliation of net income attributable to HEICO to EBITDA at the end of this press release.

Consolidated Results

Laurans A. Mendelson, HEICO's Executive Chairman, along with Co-Chief Executive Officers Eric A. Mendelson and Victor H. Mendelson, commented on the Company's third quarter results stating, "We are proud to report record quarterly net income, operating income and net sales, mainly reflecting robust double-digit consolidated organic net sales growth. These results are highlighted by consistently strong organic net sales growth across the Flight Support Group's product lines and impressive double-digit organic net sales growth for the Electronic Technologies Group's other electronics and space products.

Story Continues

Cash flow provided by operating activities increased 8% to $231.2 million in the third quarter of fiscal 2025, up from $214.0 million in the third quarter of fiscal 2024. We continue to forecast strong cash flow from operations for fiscal 2025.

Our total debt to net income attributable to HEICO ratio was 3.81x as of July 31, 2025, down from 4.34x as of October 31, 2024. Our net debt to EBITDA ratio was 1.90x as of July 31, 2025, down from 2.06x as of October 31, 2024. See our reconciliation of total debt to net debt at the end of this press release.

As we look ahead, we remain confident in achieving net sales growth across both the Flight Support Group and Electronic Technologies Group segments, driven by continued organic demand for most of our products. Additionally, we aim to accelerate growth through our recently completed acquisitions, while capitalizing on acquisition opportunities. Our disciplined financial strategy continues to focus on maximizing long-term shareholder value through a balanced approach of strategic acquisitions and organic growth initiatives aimed at gaining market share, while maintaining a strong financial position and preserving flexibility."

Flight Support Group

The Flight Support Group's record setting third quarter results were due to continued growth and momentum in our aerospace aftermarket business. Quarterly increases of 29% and 18% in operating income and net sales were achieved, respectively, as compared to the third quarter of fiscal 2024, highlighting the ongoing strength in our end markets. These remarkable results are mainly driven by strong 13% quarterly organic net sales growth stemming from increased demand across all of Flight Support Group's product lines, as well as the contributions from the fiscal 2025 and 2024 acquisitions. The Flight Support Group has now achieved twenty consecutive quarters of growth in net sales.

The Flight Support Group's net sales increased 18% to a record $802.7 million in the third quarter of fiscal 2025, up from $681.6 million in the third quarter of fiscal 2024. The Flight Support Group's net sales increased 17% to a record $2,282.9 million in the first nine months of fiscal 2025, up from $1,947.6 million in the first nine months of fiscal 2024. The net sales increase in the third quarter and first nine months of fiscal 2025 reflects strong organic growth of 13% and the impact from our fiscal 2025 and 2024 acquisitions. The organic net sales growth in the third quarter and first nine months of fiscal 2025 reflects increased demand across all of the Flight Support Group's product lines.

The Flight Support Group's operating income increased 29% to a record $198.3 million in the third quarter of fiscal 2025, up from $153.6 million in the third quarter of fiscal 2024. The operating income increase principally reflects the previously mentioned net sales growth, an improved gross profit margin, and selling, general and administrative ("SG&A") expense efficiencies realized from the net sales growth. The improved gross profit margin principally reflects higher net sales within our repair and overhaul parts and services and specialty products product lines.

The Flight Support Group's operating income increased 25% to a record $549.4 million in the first nine months of fiscal 2025, up from $438.6 million in the first nine months of fiscal 2024. The operating income increase principally reflects the previously mentioned net sales growth, an improved gross profit margin, and SG&A expense efficiencies realized from the net sales growth, partially offset by the impact from changes in the estimated fair value of accrued contingent consideration. The improved gross profit margin principally reflects the previously mentioned net sales growth within our repair and overhaul parts and services and specialty products product lines.

The Flight Support Group's operating margin improved to 24.7% in the third quarter of fiscal 2025, up from 22.5% in the third quarter of fiscal 2024. The operating margin increase principally reflects the previously mentioned improved gross profit margin and an impact from a decrease in SG&A expenses as a percentage of net sales, mainly reflecting the previously mentioned SG&A efficiencies.

The Flight Support Group's operating margin improved to 24.1% in the first nine months of fiscal 2025, up from 22.5% in the first nine months of fiscal 2024. The operating margin increase principally reflects the previously mentioned improved gross profit margin.

Electronic Technologies Group

The Company announced quarterly record-setting net sales for the Electronic Technologies Group, citing continued growth, with net sales and operating income up 10% and 7%, respectively, compared to the third quarter of fiscal 2024. These results reflect sustained demand for most products, highlighted by strong organic net sales growth for its other electronics, defense, and space products.

The Electronic Technologies Group's net sales increased 10% to a record $355.9 million in the third quarter of fiscal 2025, up from $322.1 million in the third quarter of fiscal 2024. The net sales increase reflects strong organic growth of 7% and the impact from our fiscal 2025 and 2024 acquisitions. The organic net sales growth is mainly attributable to increased demand for our other electronics, defense, and space products.

The Electronic Technologies Group's net sales increased 11% to a record $1,028.3 million in the first nine months of fiscal 2025, up from $927.4 million in the first nine months of fiscal 2024. The net sales increase reflects strong organic growth of 7% and the impact from our fiscal 2024 and 2025 acquisitions. The organic net sales growth mainly reflects increased demand for our space, defense, other electronics, and aerospace products, partially offset by decreased demand for our medical products.

The Electronic Technologies Group's operating income increased 7% to $81.0 million in the third quarter of fiscal 2025, up from $75.8 million in the third quarter of fiscal 2024. The operating income increase principally reflects the previously mentioned net sales growth, partially offset by an increase in performance-based compensation expense.

The Electronic Technologies Group's operating income increased 14% to a record $235.3 million in the first nine months of fiscal 2025, up from $206.4 million in the first nine months of fiscal 2024. The operating income increase principally reflects the previously mentioned net sales growth and SG&A expense efficiencies realized from the increased net sales.

The Electronic Technologies Group's operating margin was 22.8% in the third quarter of fiscal 2025, as compared to 23.5% in the third quarter of fiscal 2024. The lower operating margin principally reflects an increase in SG&A expenses as a percentage of net sales, mainly from the previously mentioned higher performance-based compensation expense.

The Electronic Technologies Group's operating margin improved to 22.9% in the first nine months of fiscal 2025, up from 22.3% in the first nine months of fiscal 2024. The increased operating margin principally reflects lower SG&A expenses as a percentage of net sales, mainly due to the previously mentioned efficiencies realized from the net sales growth.

Non-GAAP Financial Measures

To provide additional information about the Company's results, HEICO has discussed in this press release its EBITDA (calculated as net income attributable to HEICO adjusted for depreciation and amortization expense, net income attributable to noncontrolling interests, interest expense and income tax expense), its net debt (calculated as total debt less cash and cash equivalents), and its net debt to EBITDA ratio (calculated as net debt divided by EBITDA), which are not prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").

These non-GAAP measures are included to supplement the Company's financial information presented in accordance with GAAP and because the Company uses such measures to monitor and evaluate the performance of its business and believes the presentation of these measures enhance an investor's ability to analyze trends in the Company's business and to evaluate the Company's performance relative to other companies in its industry. However, these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for analysis of the Company's financial results as reported under GAAP.

These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. These measures should only be used to evaluate the Company's results of operations in conjunction with their corresponding GAAP measures. Pursuant to the requirements of Regulation G of the Securities and Exchange Act of 1934, the Company has provided a reconciliation of these non-GAAP measures in the last table included in this press release.

(NOTE: HEICO has two classes of common stock traded on the NYSE. Both classes, the Class A Common Stock (HEI.A) and the Common Stock (HEI), are virtually identical in all economic respects. The only difference between the share classes is the voting rights. The Class A Common Stock (HEI.A) carries 1/10 vote per share and the Common Stock (HEI) carries one vote per share.)

There are currently approximately 84.2 million shares of HEICO's Class A Common Stock (HEI.A) outstanding and 55.1 million shares of HEICO's Common Stock (HEI) outstanding. The stock symbols for HEICO's two classes of common stock on most websites are HEI.A and HEI. However, some websites change HEICO's Class A Common Stock trading symbol (HEI.A) to HEI/A or HEIa.

As previously announced, HEICO will hold a conference call on Tuesday, August 26, 2025 at 9:00 a.m. Eastern Daylight Time to discuss its third quarter results. Individuals wishing to participate in the conference call should dial: US and Canada (888) 394-8218, International (646) 828-8193, wait for the conference operator and provide the operator with the Conference ID 8001925. A digital replay will be available two hours after the completion of the conference for 14 days. To access the replay, please visit our website at https://www.heico.com under the Investors section for details.

HEICO Corporation is engaged primarily in the design, production, servicing and distribution of products and services to certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, Florida-based Flight Support Group and its Miami, Florida-based Electronic Technologies Group. HEICO's customers include a majority of the world's airlines and overhaul shops, as well as numerous defense and space contractors and military agencies worldwide, in addition to medical, telecommunications and electronics equipment manufacturers. For more information about HEICO, please visit our website at https://www.heico.com.

Certain statements in this press release constitute forward-looking statements, which are subject to risks, uncertainties and contingencies. HEICO's actual results may differ materially from those expressed in or implied by those forward-looking statements. Factors that could cause such differences include, among others: the severity, magnitude and duration of public health threats, such as the COVID-19 pandemic; our liquidity and the amount and timing of cash generation; lower commercial air travel, airline fleet changes or airline purchasing decisions, which could cause lower demand for our goods and services; product specification costs and requirements, which could cause an increase in our costs to complete contracts; governmental and regulatory demands, export policies and restrictions, reductions in defense, space or homeland security spending by U.S. and/or foreign customers or competition from existing and new competitors, which could reduce our sales; our ability to introduce new products and services at profitable pricing levels, which could reduce our sales or sales growth; product development or manufacturing difficulties, which could increase our product development and manufacturing costs and delay sales; cyber security events or other disruptions of our information technology systems could adversely affect our business; and our ability to make acquisitions, including obtaining any applicable domestic and/or foreign governmental approvals, and achieve operating synergies from acquired businesses; customer credit risk; interest, foreign currency exchange and income tax rates; and economic conditions, including the effects of inflation, within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues. Parties receiving this material are encouraged to review all of HEICO's filings with the Securities and Exchange Commission including, but not limited to, filings on Form 10-K, Form 10-Q and Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

HEICO CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)

Three Months Ended July 31, 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 Net income per share attributable to HEICO shareholders: Basic $ 1.27 $ .99 Diluted $ 1.26 $ .97 Weighted average number of common shares outstanding: Basic 139,135 138,516 Diluted 140,950 140,305

Three Months Ended July 31, 2025 2024 Operating segment information: Net sales: Flight Support Group $ 802,661 $ 681,626 Electronic Technologies Group 355,863 322,129 Intersegment sales (10,933 ) (11,509 ) $ 1,147,591 $ 992,246 Operating income: Flight Support Group $ 198,326 $ 153,594 Electronic Technologies Group 80,998 75,788 Other, primarily corporate (14,305 ) (12,936 ) $ 265,019 $ 216,446 Depreciation and amortization: Flight Support Group $ 28,581 $ 25,305 Electronic Technologies Group 20,297 18,300 Other, primarily corporate 889 705 $ 49,767 (c) $ 44,310 (c)

HEICO CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)

Nine Months Ended July 31, 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 (a) 85,500 (b) 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 (a) $ 374,421 (b) Net income per share attributable to HEICO shareholders: Basic $ 3.61 (a) $ 2.71 (b) Diluted $ 3.57 (a) $ 2.67 (b) Weighted average number of common shares outstanding: Basic 138,993 138,389 Diluted 140,678 140,086

Nine Months Ended July 31, 2025 2024 Operating segment information: Net sales: Flight Support Group $ 2,282,905 $ 1,947,574 Electronic Technologies Group 1,028,345 927,393 Intersegment sales (35,617 ) (30,963 ) $ 3,275,633 $ 2,844,004 Operating income: Flight Support Group $ 549,422 $ 438,561 Electronic Technologies Group 235,334 206,379 Other, primarily corporate (44,780 ) (39,131 ) $ 739,976 $ 605,809 Depreciation and amortization: Flight Support Group $ 82,862 $ 73,538 Electronic Technologies Group 59,334 55,010 Other, primarily corporate 2,673 2,098 $ 144,869 (c) $ 130,646 (c)

HEICO CORPORATION
Footnotes to Condensed Consolidated Statements of Operations (Unaudited)

(a) During the first quarter of fiscal 2025, the Company recognized a $27.2 million discrete tax benefit from stock option exercises, which, net of noncontrolling interests, increased net income attributable to HEICO by $26.5 million, or $.19 per basic and diluted share.

(b) During the first quarter of fiscal 2024, the Company recognized a $13.6 million discrete tax benefit from stock option exercises, which, net of noncontrolling interests, increased net income attributable to HEICO by $13.3 million, or $.10 per basic and diluted share.

(c) Depreciation and amortization information on the Company's two operating segments for the three and nine months ended July 31, 2025 and 2024, is as follows (in thousands):

Three Months Ended July 31, Nine Months Ended July 31, 2025 2024 2025 2024 Depreciation: Flight Support Group $ 7,096 $ 6,683 $ 20,283 $ 18,612 Electronic Technologies Group 6,556 5,645 18,586 16,706 Other, primarily corporate 497 312 1,496 921 $ 14,149 $ 12,640 $ 40,365 $ 36,239 Amortization: Flight Support Group $ 21,485 $ 18,622 $ 62,579 $ 54,926 Electronic Technologies Group 13,741 12,655 40,748 38,304 Other, primarily corporate 392 393 1,177 1,177 $ 35,618 $ 31,670 $ 104,504 $ 94,407

HEICO CORPORATION
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)

July 31, 2025 October 31, 2024 Cash and cash equivalents $ 261,888 $ 162,103 Accounts receivable, net 597,622 538,487 Contract assets 132,963 112,235 Inventories, net 1,310,393 1,170,949 Prepaid expenses and other current assets 83,161 78,518 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 Other assets 548,330 476,427 Total assets $ 8,531,623 $ 7,592,822 Current maturities of long-term debt $ 3,725 $ 4,107 Other current liabilities 707,591 659,744 Total current liabilities 711,316 663,851 Long-term debt, net of current maturities 2,443,898 2,225,267 Deferred income taxes 127,097 114,156 Other long-term liabilities 599,272 525,986 Total liabilities 3,881,583 3,529,260 Redeemable noncontrolling interests 437,587 366,156 Shareholders' equity 4,212,453 3,697,406 Total liabilities and equity $ 8,531,623 $ 7,592,822

HEICO CORPORATION
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)

Nine Months Ended July 31, 2025 2024 Operating Activities: Net income from consolidated operations $ 542,769 $ 408,200 Depreciation and amortization 144,869 130,646 Share-based compensation expense 18,346 14,088 Employer contributions to HEICO Savings and Investment Plan 14,186 13,677 Increase (decrease) in accrued contingent consideration, net 8,974 (10,892 ) Impairment of intangible assets - 6,000 Payment of contingent consideration (2,190 ) (6,203 ) Deferred income tax benefit (28,789 ) (15,227 ) Increase in accounts receivable (36,063 ) (15,334 ) (Increase) decrease in contract assets (20,305 ) 9,009 Increase in inventories (60,157 ) (102,183 ) Increase (decrease) in current liabilities, net 13,147 (9,652 ) Other 44,153 44,618 Net cash provided by operating activities 638,940 466,747 Investing Activities: Acquisitions, net of cash acquired (629,928 ) (55,208 ) Capital expenditures (46,038 ) (42,175 ) Investments related to HEICO Leadership Compensation Plan (21,689 ) (16,510 ) Other (39 ) 1,743 Net cash used in investing activities (697,694 ) (112,150 ) Financing Activities: Borrowings (payments) on revolving credit facility, net 220,000 (205,000 ) Cash dividends paid (31,968 ) (29,069 ) Distributions to noncontrolling interests (27,248 ) (23,302 ) Payment of contingent consideration (5,954 ) (24,797 ) Acquisitions of noncontrolling interests (5,773 ) (26,567 ) Redemptions of common stock related to stock option exercises (1,979 ) (4,836 ) Payments on short-term debt, net - (13,924 ) Proceeds from stock option exercises 11,680 6,387 Other (3,509 ) (2,939 ) Net cash provided by (used in) financing activities 155,249 (324,047 ) Effect of exchange rate changes on cash 3,290 1,342 Net increase in cash and cash equivalents 99,785 31,892 Cash and cash equivalents at beginning of year 162,103 171,048 Cash and cash equivalents at end of period $ 261,888 $ 202,940

HEICO CORPORATION
Non-GAAP Financial Measures (Unaudited)
(in thousands, except ratios)

Three Months Ended July 31, EBITDA Calculation 2025 2024 Net income attributable to HEICO $ 177,341 $ 136,577 Plus: Depreciation and amortization 49,767 44,310 Plus: Net income attributable to noncontrolling interests 13,339 11,240 Plus: Interest expense 31,701 36,788 Plus: Income tax expense 44,300 32,500 EBITDA (a) $ 316,448 $ 261,415 Nine Months Ended July 31, EBITDA Calculation 2025 2024 Net income attributable to HEICO $ 502,089 $ 374,421 Plus: Depreciation and amortization 144,869 130,646 Plus: Net income attributable to noncontrolling interests 40,680 33,779 Plus: Interest expense 97,024 113,907 Plus: Income tax expense 103,400 85,500 EBITDA (a) $ 888,062 $ 738,253 Trailing Twelve Months Ended EBITDA Calculation July 31, 2025 October 31, 2024 Net income attributable to HEICO $ 641,777 $ 514,109 Plus: Depreciation and amortization 189,554 175,331 Plus: Net income attributable to noncontrolling interests 51,878 44,977 Plus: Interest expense 132,430 149,313 Plus: Income tax expense 136,400 118,500 EBITDA (a) $ 1,152,039 $ 1,002,230

Net Debt Calculation 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 (a) $ 2,185,735 $ 2,067,271 Total debt $ 2,447,623 $ 2,229,374 Net income attributable to HEICO (trailing twelve months) $ 641,777 $ 514,109 Total debt to net income attributable to HEICO ratio 3.81 4.34 Net debt $ 2,185,735 $ 2,067,271 EBITDA (trailing twelve months) $ 1,152,039 $ 1,002,230 Net debt to EBITDA ratio (a) 1.90 2.06

(a) See the "Non-GAAP Financial Measures" section of this press release.

Contact:

Victor H. Mendelson (305) 374-1745 ext. 7590

Carlos L. Macau, Jr. (954) 987-4000 ext. 7570

SOURCE: HEICO Corporation

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