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HEICO (HEI) investor relations material
HEICO Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Q3 2025 earnings summary26 Aug, 2025
Executive summary
Achieved record net income of $177.3M for Q3 FY2025 (up 30%) and $502.1M for the first nine months (up 34%), with net sales of $1.15B for Q3 (up 16%) and $3.28B for nine months (up 15%) year-over-year.
Strong double-digit organic growth in both Flight Support and Electronic Technologies segments, supported by disciplined acquisition strategy and recent acquisitions.
Robust cash generation, with Q3 cash flow from operations up 8% to $231.2M and nine-month cash flow at $638.9M, representing 130% of net income.
Completed five acquisitions in fiscal 2025, including Gables Engineering, expanding capabilities in avionics, electronics, and aerospace.
Paid 94th consecutive semiannual dividend, increased 9% to $0.12 per share.
Financial highlights
Operating income for Q3 FY2025 rose 22% to $265.0M; nine-month operating income up 22% to $740.0M, with margins improving to 23.1% for Q3 and 22.6% for nine months.
EBITDA for Q3 FY2025 increased 21% to $316.4M; nine-month EBITDA up 20% to $888.1M.
Gross profit margin improved to 39.7% from 39.0% year-over-year.
Interest expense decreased to $97.0M from $113.9M due to lower debt and interest rates.
Effective tax rate for Q3 was 18.9%, for nine months 16.0%, reflecting a discrete tax benefit from stock option exercises.
Outlook and guidance
Management expects continued net sales growth in both segments, driven by organic demand and recent acquisitions.
Forecasts strong cash flow from operations and sufficient liquidity to fund operations and growth initiatives for at least the next twelve months.
FSG and ETG segments anticipated to sustain operating margins in the 22–24% range, with incremental improvements possible.
Capital expenditures for fiscal 2025 projected at $65–$70M.
Focus remains on strategic acquisitions and organic growth to gain market share.
What impacted ETG's Q3 operating margin?
What drove the improvement in HEICO's debt ratios?
What was the acquisition spending trend?
FSG margin drivers and future outlook?
PMA pricing strategy and value delivery?
Decentralized supply chain: efficiency outlook?
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Next HEICO earnings date
Q4 202515 Dec, 2025
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Frequently asked questions
A global defense giant
HEICO designs, manufactures, and sells aerospace, defense, and electronic-related products and services on a global scale. The company serves niche markets with highly engineered and reliable products. This being the catalyst, HEICO has been able to run its business with strong cash flow generation for a long time.
50,000 different parts in their portfolio
Their product portfolio is highly diversified, and the CEO, Laurans Mendelson stated in their recent Q4’22 Earnings Call that they manufacture over 50,000 different parts, and don’t want any particular product to stand out. He further said that if any one product would fail, nobody would even notice it.
The company operates mainly in two different business segments:
Flight Support Group: which consists of products that are found in the most demanding applications, such as aircraft, spacecraft and defense equipment. And the other one
Electronic Technologies Group: with niche electronic, electrooptical, microwave, and other components found in complex equipment within the aviation-, broadcasting-, defense-, and space industries. While little more than half of their revenue stems from the former segment, the latter is more profitable and accounts for most of the EBIT.
Some of the company’s peers include TransDigm Group, Moog Inc., Spirit AeroSystems Holdings Inc.
70 years of industry experience
HEICO has almost 70 years of industry experience, and its current management has been involved since 1990. The company has acquired more than 100 companies over the years without having any busts. They have only sold two businesses since inception – a showcase of their owning forever framework.
Another interesting fact from their recent call came from the Co-President - Eric Mendelson. He explained how some of HEICO’s subsidiaries were buying equipment that wasn’t going to impact any of the coming two years, but was going to impact the two/three years after. This long-term focus is something that HEICO is benefiting from – the result they present today is a result of decisions made 10, 20, and 30 years ago, he said.
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