01—Abstract
Summary
Summary of the 10-Q filed August 27, 2025. Cited figures are marked; the original filing is the authoritative source.
HEICO Corporation's Form 10-Q for the third quarter ended July 31, 2025 reports record results for the first nine months of fiscal 2025.
Net sales rose to $3,275.6 milliona from $2,844.0 million, and operating income increased to $740.0 million from $605.8 million. Net income attributable to HEICO was $502.1 million, or $3.57 per diluted share, compared with $374.4 million, or $2.67 per diluted share, a year earlier. For the third quarter alone, net sales were $1,147.6 million and net income attributable to HEICO was $177.3 million, or $1.26 per diluted share.
The Flight Support Group's net sales grew 17% for the nine months and its operating income rose to $549.4 millionb, while the Electronic Technologies Group's operating income reached $235.3 million. Cash flow from operations was $638.9 million for the nine months, up from $466.7 million. The company spent $629.9 million net on acquisitions during the period, including Millennium International, Rosen Aviation, and Gables Engineering, and funded these largely through its revolving credit facility, which had $1,235.0 million outstanding at July 31, 2025 compared with $1,015.0 million at October 31, 2024.
Total debt to shareholders' equity was 58.1%, and the company stated it was in compliance with all covenants. Backlog stood at $2,064.3 millionc of remaining performance obligations, with $625.5 million expected to be recognized in the remainder of fiscal 2025.
The company also noted that the One Big Beautiful Bill Act, enacted July 4, 2025, is still being evaluated for its effect on the consolidated financial statements. Management expects fiscal 2025 capital expenditures of approximately $65 to $70 milliond and believes operating cash flow and revolver availability will fund requirements for at least the next twelve months.
02—Key points
Key Highlights
- Net sales for the nine months ended July 31, 2025 were a record $3,275.6 million, up from $2,844.0 million, and third-quarter net sales were $1,147.6 million, up from $992.2 million.
- Operating income for the nine months was $740.0 million versus $605.8 million, and net income attributable to HEICO was $502.1 million, or $3.57 diluted EPS, versus $2.67 a year earlier.
- The Flight Support Group's operating income rose to $549.4 million for the nine months, and the Electronic Technologies Group's rose to $235.3 million.
- Net cash provided by operating activities was $638.9 million for the nine months, compared with $466.7 million in the prior-year period.
- Acquisitions, net of cash acquired, totaled $629.9 million for the nine months, including Millennium International, Rosen Aviation, and Gables Engineering, and the revolving credit facility balance rose to $1,235.0 million.
- Backlog of remaining performance obligations was $2,064.3 million at July 31, 2025, with $625.5 million expected to be recognized in the remainder of fiscal 2025.
- Total debt to shareholders' equity was 58.1%, and the company reported compliance with all financial and non-financial covenants.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Heico kept $0.15.
- Revenue$1.15B100.0%
- Cost of revenue−$690.4M60.2%
- Gross profit$457.2M39.8%
- Operating costs−$192.1M16.7%
- Operating income$265.0M23.1%
- Interest, other & tax−$87.7M7.6%
- Net income$177.3M15.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed August 27, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.15B$992.25M | +15.7% |
| Cost of Revenue | $690.43M$602.98M | +14.5% |
| Gross Profit | $457.16M$389.27M | +17.4% |
| R&D Expenses | $31.93M$29.78M | +7.2% |
| SG&A Expenses | $192.14M$172.82M | +11.2% |
| Operating Expenses | $882.57M$775.80M | +13.8% |
| Operating Income | $265.02M$216.45M | +22.4% |
| Interest Expense | $31.70M$36.79M | −13.8% |
| Net Income | $177.34M$136.58M | +29.8% |
| EPS (Basic) | $1.27$0.99 | +28.3% |
| EPS (Diluted) | $1.26$0.97 | +29.9% |
| Shares Outstanding (Basic) | 139.13M138.52M | +0.4% |
| Shares Outstanding (Diluted) | 140.95M140.31M | +0.5% |
05—Questions
Frequently Asked Questions
How did HEICO's sales and profits perform in the first nine months of fiscal 2025?
Net sales rose to a record $3,275.6 million from $2,844.0 million, and operating income increased to $740.0 million from $605.8 million. Net income attributable to HEICO was $502.1 million, or $3.57 per diluted share, compared with $2.67 per diluted share in the prior-year period.
What drove growth in the Flight Support Group and the Electronic Technologies Group?
The Flight Support Group's net sales increased 17% to $2,282.9 million, with organic growth of 13%, driven by aftermarket replacement parts, repair and overhaul parts and services, and specialty products. The Electronic Technologies Group's net sales increased 11% to $1,028.3 million, with organic growth of 7%, mainly from space, defense, other electronics, and aerospace products, partly offset by lower medical product demand.
How did HEICO fund its acquisitions and what is its debt position?
Acquisitions, net of cash acquired, totaled $629.9 million for the nine months, paid largely in cash from the revolving credit facility and operating cash flow. Borrowings under the revolving credit facility were $1,235.0 million at July 31, 2025, versus $1,015.0 million at October 31, 2024, and senior unsecured notes totaled $1,200.0 million in principal. Total debt to shareholders' equity was 58.1%.
What is the outlook and liquidity position according to the filing?
Management said it remains confident in net sales growth across both segments and aims to accelerate growth through recent acquisitions. It expects fiscal 2025 capital expenditures of approximately $65 to $70 million and believes operating cash flow and revolver availability will be sufficient to fund cash requirements for at least the next twelve months.
Has the company assessed the impact of recent U.S. tax legislation?
The One Big Beautiful Bill Act, enacted on July 4, 2025, introduced changes including reinstated 100% bonus depreciation and changes to FDII and GILTI. The company stated it is currently evaluating the Act's impact on its consolidated financial statements, and some provisions take effect in fiscal 2025 while others phase in through fiscal 2028.
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