01—Abstract
Summary
Summary of the 10-K filed December 22, 2025. Cited figures are marked; the original filing is the authoritative source.
HEICO Corporation reported record fiscal 2025 results for the year ended October 31, 2025.
Net sales rose 16% to a record $4,485.0 milliona from $3,857.7 million, with the Flight Support Group (FSG) growing 18% to $3,117.3 million and the Electronic Technologies Group (ETG) growing 12% to $1,413.1 million. Operating income increased 24% to a record $1,019.0 million, and net income attributable to HEICO rose 34% to a record $690.4 million, or $4.90 per diluted share. Gross margin improved to 39.8% from 38.9%, and the FSG's operating margin rose to 24.1%.
Cash generation was strong, with net cash provided by operating activities of $934.3 millionb, up from $672.4 million. Acquisitions of $629.8 million were funded largely through revolving credit facility borrowings. Total debt fell to $2,167.9 million from $2,229.4 million, and total debt to total capitalization declined to 33% from 38%.
Shareholders' equity increased to $4,379.2 millionc. Management anticipates net sales growth in both segments in fiscal 2026, driven by organic growth and recent acquisitions.
Investors should note that goodwill and intangible assets represented 60% of total assets as of October 31, 2025, and that redeemable noncontrolling interests (put rights) total an estimated $467.4 milliond. Subsequent to year end, HEICO agreed to acquire Axillon Aerospace's Fuel Containment Business and EthosEnergy Accessories & Components, with closings expected in the first quarter of fiscal 2026.
02—Key points
Key Highlights
- Record net sales of $4,485.0 million, up 16% from $3,857.7 million in fiscal 2024
- Record operating income of $1,019.0 million, up 24%; operating margin of 22.7% versus 21.4%
- Net income attributable to HEICO of $690.4 million, or $4.90 per diluted share, up 34% from $514.1 million ($3.67 per diluted share)
- Net cash provided by operating activities of $934.3 million, up $261.9 million (a 39% increase) from $672.4 million
- Total debt reduced to $2,167.9 million; total debt to total capitalization of 33% versus 38% a year earlier
- Acquisitions of $629.8 million in fiscal 2025, including Millennium, Rosen Aviation, and Gables Engineering; two further acquisitions (Axillon and Ethos) agreed in November 2025
- Goodwill and intangible assets were 60% of total assets as of October 31, 2025; redeemable noncontrolling interest put rights total an estimated $467.4 million
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Heico kept $0.15.
- Revenue$4.49B100.0%
- Cost of revenue−$2.70B60.2%
- Gross profit$1.79B39.8%
- Operating costs−$767.5M17.1%
- Operating income$1.02B22.7%
- Interest, other & tax−$328.6M7.3%
- Net income$690.4M15.4%
04—Financials
Financial Highlights
Figures from 10-KFY2025filed December 22, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $4.49B$3.86B | +16.3% |
| Cost of Revenue | $2.70B$2.36B | +14.5% |
| Gross Profit | $1.79B$1.50B | +19.0% |
| R&D Expenses | $120.94M$111.27M | +8.7% |
| SG&A Expenses | $767.47M$677.27M | +13.3% |
| Operating Expenses | $3.47B$3.03B | +14.3% |
| Operating Income | $1.02B$824.46M | +23.6% |
| Interest Expense | $129.88M$149.31M | −13.0% |
| Net Income | $690.38M$514.11M | +34.3% |
| EPS (Basic) | $4.97$3.71 | +34.0% |
| EPS (Diluted) | $4.90$3.67 | +33.5% |
| Shares Outstanding (Basic) | 139.05M138.46M | +0.4% |
| Shares Outstanding (Diluted) | 140.77M140.20M | +0.4% |
05—Questions
Frequently Asked Questions
How did HEICO's two segments perform in fiscal 2025?
The Flight Support Group's net sales increased 18% to a record $3,117.3 million, with strong organic growth of 14%, and its operating income rose 27% to a record $750.4 million. The Electronic Technologies Group's net sales increased 12% to a record $1,413.1 million, with organic growth of 7%, and its operating income rose 13% to a record $325.0 million.
What drove the improvement in profitability?
Gross profit margin improved to 39.8% from 38.9%, principally reflecting a 1.5% increase in the FSG's gross profit margin. SG&A expenses as a percentage of net sales declined to 17.1% from 17.6%, and interest expense fell to $129.9 million from $149.3 million. The effective tax rate decreased to 16.6% from 17.5%, principally due to a larger tax benefit from stock option exercises.
How is HEICO funding its acquisitions and what is its debt position?
Acquisitions were financed principally through revolving credit facility borrowings and cash from operations. As of October 31, 2025, borrowings under the revolving credit facility were $960 million, and the company had $600 million of 5.25% Senior Notes due 2028 and $600 million of 5.35% Senior Notes due 2033. The company reported approximately $1,078 million of unused committed availability under its revolving credit facility as of December 19, 2025.
What are the main risks highlighted in the filing?
Key risks include the ability to execute the acquisition strategy, intense competition, dependence on the aviation industry and commercial air travel, reductions in defense or space spending, and supply chain disruptions. The filing also highlights that 38% of consolidated net sales in fiscal 2025 came from foreign customers, that goodwill and intangibles are a large share of total assets, and that the company's executive officers and directors control a significant voting position.
What are HEICO's plans and dividend policy going forward?
For fiscal 2026, management anticipates net sales growth in both segments and plans to continue selective acquisitions. Capital expenditures are expected to be approximately $80 to $90 million. In July 2025 HEICO paid a semi-annual cash dividend of $.12 per share, and in December 2025 its Board declared another $.12 per share dividend payable in January 2026.
06—Continue