Heico Corp New — Income Statement, Cash Flows & Balance Sheet
Is HEICO profitable?
HEICO delivered strong top-line growth and meaningfully improved profitability in fiscal 2025.
| Metric | FY2023 | FY2024 | FY2025 | Change (FY24→FY25) |
|---|---|---|---|---|
| Net sales ($M) | $2,968 | $3,858 | $4,485 | +16.3% |
| Gross profit margin | 38.9% | 38.9% | 39.8% | +0.9 pts |
| Operating income ($M) | $625 | $824 | $1,019 | +23.6% |
| Operating margin | 21.1% | 21.4% | 22.7% | +1.3 pts |
| Net income attributable to HEICO ($M) | $404 | $514 | $690 | +34.3% |
| Diluted EPS | $2.91 | $3.67 | $4.90 | +33.5% |
Revenue, operating income, and earnings per share all accelerated in fiscal 2025, and margins expanded — meaning HEICO isn't just growing bigger, it's growing more efficiently. The effective tax rate also ticked down to 16.6% from 17.5%, partly boosted by a larger-than-usual tax benefit from employee stock option exercises, which gave net income an extra lift beyond the operating improvement.
Where does HEICO's revenue come from?
HEICO's two segments both grew, but the Flight Support Group is the clear engine of recent expansion.
| Segment | FY2023 | FY2024 | FY2025 | Change (FY24→FY25) |
|---|---|---|---|---|
| Flight Support Group (FSG) net sales ($M) | $1,770 | $2,639 | $3,117 | +18.1% |
| FSG operating income ($M) | $387 | $593 | $750 | +26.5% |
| Electronic Technologies Group (ETG) net sales ($M) | $1,225 | $1,264 | $1,413 | +11.8% |
| ETG operating income ($M) | $285 | $288 | $325 | +12.8% |
The FSG — which makes FAA-approved aftermarket aircraft parts and provides repair and overhaul services — is driving the majority of HEICO's growth, fuelled by strong commercial aviation demand and the full-year contribution from the large Wencor acquisition completed in mid-2023. The ETG, focused on electronic components for defense, space, and aerospace, is a steady and profitable business growing at a more measured pace, with defense and space customers making up the majority of its revenue.
Does HEICO generate cash?
HEICO converted its profits into strong operating cash flow, and free cash flow (operating cash minus capital spending) grew substantially.
| Metric | FY2023 | FY2024 | FY2025 | Change (FY24→FY25) |
|---|---|---|---|---|
| Operating cash flow ($M) | $449 | $672 | $934 | +38.9% |
| Capital expenditures ($M) | $49 | $58 | $73 | +25.3% |
| Free cash flow ($M) | $400 | $614 | $861 | +40.2% |
| Acquisitions, net ($M) | $2,422 | $219 | $630 | — |
HEICO's business generates cash generously — operating cash flow well outpaced reported net income, reflecting non-cash charges like depreciation and amortization. The company spent $630 million on acquisitions in fiscal 2025 (several smaller deals versus the mega-Wencor deal in 2023), funded comfortably from operations and the revolving credit line. Dividends and share buybacks remain modest relative to cash generated.
How strong is HEICO's balance sheet?
Debt is meaningful but actively declining, and liquidity is solid.
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| Total long-term debt ($M) | $2,229 | $2,168 | -$61M |
| Cash and equivalents ($M) | $162 | $218 | +$56M |
| Net debt ($M) | $2,067 | $1,950 | -$117M |
| Goodwill + intangibles ($M) | $4,715 | $5,133 | +$418M |
| Total shareholders' equity ($M) | $3,697 | $4,379 | +$682M |
HEICO paid down net debt by roughly $117 million while simultaneously making acquisitions — a sign of healthy cash generation. The balance sheet is heavily weighted toward goodwill and intangible assets (acquired businesses), which is typical for a serial acquirer; investors should be aware these assets could be impaired if business conditions deteriorate. The $2 billion revolving credit facility matures in 2028 and remains largely available, and HEICO was in compliance with all debt covenants.