01—Abstract
Summary
Summary of the 10-Q filed May 29, 2025. Cited figures are marked; the original filing is the authoritative source.
HEICO Corporation's Form 10-Q for the second quarter ended April 30, 2025 reports record results.
Net sales for the six months rose to $2,128.0 milliona from $1,851.8 million, and net income attributable to HEICO increased to $324.7 million, or $2.31 per diluted share, from $237.8 million, or $1.70 per diluted share. Operating income reached a record $475.0 million. The Flight Support Group reported record net sales of $1,480.2 million and operating income of $351.1 million, while the Electronic Technologies Group reported record net sales of $672.5 million and operating income of $154.3 million.
Management cited strong organic growth of 14% in the FSG and 7% in the ETG for the six months. The company completed several acquisitions during the period, including Millennium International (90% interest, January 2025) and Rosen Aviation (April 2025), and reported that the fiscal 2025 acquisitions are not material to its results. Total assets increased to $8.09 billionb from $7.59 billion at October 31, 2024, with goodwill rising to $3.53 billion and long-term debt to $2.27 billion.
Cash flow from operations was $407.7 millionc for the six months, up from $252.8 million, and the company's revolving credit facility borrowings were $1,065.0 million at April 30, 2025. Management said it expects net sales growth in both segments for the remainder of fiscal 2025 and anticipates fiscal 2025 capital expenditures of approximately $65 to $70 million. The company stated it was in compliance with all debt covenants and that its total debt to shareholders' equity ratio was 56.5%.
02—Key points
Key Highlights
- Record six-month net sales of $2,128.0 million, up from $1,851.8 million, and record operating income of $475.0 million, up from $389.4 million.
- Net income attributable to HEICO rose to $324.7 million, or $2.31 per diluted share, versus $237.8 million, or $1.70 per diluted share, a year earlier.
- Flight Support Group net sales grew to $1,480.2 million with 14% organic growth, while Electronic Technologies Group net sales grew to $672.5 million with 7% organic growth.
- Net cash provided by operating activities increased to $407.7 million from $252.8 million, driven by higher net income.
- Acquisitions totaling $286.2 million in cash were made in the first six months, including Millennium International and Rosen Aviation.
- Total backlog of remaining performance obligations was $2,024.7 million as of April 30, 2025, with $963.8 million expected to be recognized in the remainder of fiscal 2025.
- Interest expense fell to $65.3 million from $77.1 million, reflecting lower outstanding debt and a lower weighted-average revolver interest rate of 5.9%.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Heico kept $0.14.
- Revenue$1.10B100.0%
- Cost of revenue−$660.0M60.1%
- Gross profit$437.8M39.9%
- Operating costs−$189.7M17.3%
- Operating income$248.2M22.6%
- Interest, other & tax−$91.4M8.3%
- Net income$156.8M14.3%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed May 29, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $1.10B$955.39M | +14.9% |
| Cost of Revenue | $660.02M$583.60M | +13.1% |
| Gross Profit | $437.80M$371.80M | +17.8% |
| R&D Expenses | $28.74M$27.93M | +2.9% |
| SG&A Expenses | $189.65M$162.64M | +16.6% |
| Operating Expenses | $849.67M$746.24M | +13.9% |
| Operating Income | $248.15M$209.15M | +18.6% |
| Interest Expense | $32.87M$38.51M | −14.7% |
| Net Income | $156.79M$123.15M | +27.3% |
| EPS (Basic) | $1.13$0.89 | +27.0% |
| EPS (Diluted) | $1.12$0.88 | +27.3% |
| Shares Outstanding (Basic) | 139.00M138.39M | +0.4% |
| Shares Outstanding (Diluted) | 140.60M140.06M | +0.4% |
05—Questions
Frequently Asked Questions
How did HEICO perform in the first six months of fiscal 2025?
Net sales rose 15% to a record $2,128.0 million, operating income rose 22% to a record $475.0 million, and net income attributable to HEICO increased 37% to a record $324.7 million, or $2.31 per diluted share.
What drove segment growth?
The Flight Support Group's net sales increase reflected strong organic growth of 14% across aftermarket replacement parts, repair and overhaul parts and services, and specialty products. The Electronic Technologies Group's growth was mainly from increased demand for space, defense, and aerospace products, with organic growth of 7%.
What acquisitions did HEICO complete in fiscal 2025?
HEICO acquired 90% of Millennium International, LLC in January 2025, an FAA and EASA-certified avionics repair station, and 100% of Rosen Aviation, LLC in April 2025, which makes in-flight entertainment products. The company states these acquisitions are not material to its condensed consolidated financial statements.
How is HEICO's debt position and liquidity?
Total long-term debt was $2,278.2 million before current maturities, including $1,065.0 million of revolving credit facility borrowings and $1,200.0 million of senior unsecured notes. The total debt to shareholders' equity ratio was 56.5%, and the company stated it was in compliance with all covenants.
What outlook did management give for the remainder of fiscal 2025?
Management said it remains confident in achieving net sales growth across both segments, driven primarily by strong organic demand, and expects fiscal 2025 capital expenditures of approximately $65 to $70 million.
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