UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

☒						ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
						For the fiscal year ended October 31, 2024 or
						For the fiscal year ended October 31, 2025 or
☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
						For the transition period from ______ to _______

Commission File Number: 001-04604

HEICO CORPORATION

(Exact name of registrant as specified in its charter)


Florida						65-0341002
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

3000 Taft Street, Hollywood, Florida						33021
(Address of principal executive offices)						(Zip Code)

(954) 987-4000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $.01 par value per share

HEI

New York Stock Exchange

Class A Common Stock, $.01 par value per share

HEI.A

New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐

Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant was $2328,~~273~~298,~~324~~175,000 based on the closing price of HEICO Common Stock and Class A Common Stock as of April 30, ~~2024~~2025 as reported by the New York Stock Exchange.

The number of shares outstanding of each of the registrant’s classes of common stock as of December 1819, ~~2024~~2025 is as follows:

Common Stock, $.01 par value			5455,~~986~~142,~~227~~805			shares
Class A Common Stock, $.01 par value			8384,~~843~~213,~~858~~758			shares

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's definitive proxy statement for the ~~2025~~2026 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K.

Index

HEICO CORPORATION

INDEX TO ANNUAL REPORT ON FORM 10-K

FOR THE FISCAL YEAR ENDED OCTOBER 31, ~~2024~~2025

			Page
PART I
	Item 1.	Business	1
	~~Information About Our Executive Officers~~	Information About Our Executive Officers	16
	Item 1A.	Risk Factors	1817
	Item 1B.	Unresolved Staff Comments	27
	Item 1C.	Cybersecurity	27
	Item 2.	Properties	29
	Item 3.	Legal Proceedings	29
	Item 4.	Mine Safety Disclosures	30
PART II
	Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	30
	Item 6.	[Reserved]	3334
	Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
	Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	5049
	Item 8.	Financial Statements and Supplementary Data	5150
	Item 9.	Changes in and Disagreements ~~With~~with Accountants on Accounting and Financial Disclosure	113
	Item 9A.	Controls and Procedures	113
	Item 9B.	Other Information	~~116~~117
	Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	~~116~~117
PART III
	Item 10.	Directors, Executive Officers and Corporate Governance	117
	Item 11.	Executive Compensation	117
	Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	~~117~~118
	Item 13.	Certain Relationships and Related Transactions, and Director Independence	119
	Item 14.	Principal Accountant Fees and Services	119
PART IV
	Item 15.	Exhibits and Financial Statement Schedules	119
	Item 16.	Form 10-K Summary	123
SIGNATURES			125

Index

PART I

Item 1. BUSINESS

The Company

HEICO Corporation through its subsidiaries (collectively, “HEICO,” “we,” “us,” “our” or the “Company”) believes it is the world’s largest manufacturer of Federal Aviation Administration (“FAA”)-approved jet engine and aircraft component replacement parts, other than the original equipment manufacturers (“OEMs”) and their subcontractors. HEICO also believes it is a leading manufacturer of various types of electronic equipment for the aviation, defense, space, medical, telecommunications and electronics industries.

The Company was originally organized in 1957 as a holding company known as HEICO Corporation. As part of a reorganization completed in 1993, the original holding company (formerly known as HEICO Corporation) was renamed as HEICO Aerospace Corporation and a new holding corporation known as HEICO Corporation was created. The reorganization did not result in any change in the business of the Company, its consolidated assets or liabilities or the relative interests of its shareholders.

Our business is comprised of two operating segments:

The Flight Support Group. Our Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their collective subsidiaries, accounted for 6870%, 6068% and 5760% of our net sales in fiscal ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023, respectively. The FSG uses proprietary technology to design and manufacture jet engine and aircraft component replacement parts for sale at lower prices than those manufactured by OEMs. These parts are approved by the FAA and are the functional equivalent of parts sold by OEMs. In addition, the FSG repairs, overhauls and distributes jet engine and aircraft components, avionics and instruments for domestic and foreign commercial air carriers and aircraft repair companies as well as military and business aircraft operators. The FSG also manufactures and sells specialty parts as a subcontractor for aerospace and industrial original equipment manufacturers and the United States ("U.S.") government. Additionally, the FSG is a leading supplier, distributor, and integrator of military aircraft parts and support services primarily to the U.S. Department of Defense, defense prime contractors, and foreign military organizations allied with the U.S. Further, the FSG is a leading manufacturer of advanced niche components and complex composite assemblies for commercial aviation, defense and space applications. The FSG also engineers, designs and manufactures thermal insulation blankets and parts as well as removable/reusable insulation systems for aerospace, defense, commercial and industrial applications; manufactures expanded foil mesh for lightning strike protection in fixed and rotary wing aircraft; distributes aviation electrical interconnect products and electromechanical parts; overhauls industrial pumps, motors, and other hydraulic units with a focus on the support of legacy systems for the U.S. Navy; performs tight-tolerance machining, brazing, fabricating and welding services for aerospace, defense and other industrial applications; and manufactures emergency descent devices ("EDDs") and personnel and cargo parachute products.

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The Electronic Technologies Group. Our Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. and its subsidiaries, accounted for 3230%, 4032% and 4340% of our net sales in fiscal ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023, respectively. The ETG derived approximately 51%, 4951% and 5649% of its net sales in fiscal ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023, respectively, from the sale of products and services to U.S. and foreign military agencies, prime defense contractors and both commercial and defense satellite and spacecraft manufacturers. The ETG collectively designs, manufactures and sells various types of electronic, data and microwave, and electro-optical products, including infrared simulation and test equipment, laser rangefinder receivers, electrical power supplies, back-up power supplies, power conversion products, underwater locator beacons, emergency locator transmission beacons, flight deck annunciators, panels, ~~and~~ indicators, electromagnetic and radio frequency interference shielding and filters, high power capacitor charging power supplies, amplifiers, traveling wave tube amplifiers, photodetectors, amplifier modules, microwave power modules, flash lamp drivers, laser diode drivers, arc lamp power supplies, custom power supply designs, cable assemblies, high voltage power supplies, high voltage interconnection devices and wire, high voltage energy generators, high frequency power delivery systems; memory products, including three-dimensional microelectronic and stacked memory, static random-access memory (SRAM), and electronically erasable programmable read-only memory (EEPROM); harsh environment electronic connectors and other interconnect products, radio frequency ("RF") and microwave amplifiers, transmitters, and receivers and integrated assemblies, sub-assemblies and components; RF sources, detectors and controllers, wireless cabin control systems, solid state power distribution and management systems, proprietary in-cabin power and entertainment components and subsystems, cockpit displays and other avionics components, crashworthy and ballistically self-sealing auxiliary fuel systems, nuclear radiation detectors, communications and electronic intercept receivers and tuners, fuel level sensing systems, high-speed interface products that link devices, high performance active antenna systems and airborne antennas for commercial and military aircraft, precision guided munitions, other defense applications and commercial uses; silicone material for a variety of demanding applications; precision power analog monolithic, hybrid and open frame components; high-reliability ceramic-to-metal feedthroughs and connectors, technical surveillance countermeasures (TSCM) equipment to detect devices used for espionage and information theft; rugged small-form factor embedded computing solutions; custom high power filters and filter assemblies; test sockets and adapters for both engineering and production use of semiconductor devices; radiation assurance services and products; and high reliability ("Hi-Rel"), complex, passive electronic components and rotary joint assemblies for mostly aerospace and defense applications, in addition to other high-end applications, such as medical and energy uses, including emerging "clean energy" and electrification applications.

HEICO has continuously operated in the aerospace industry for over 65 years. Since assuming control in 1990, our current management has achieved significant sales and profit growth through a broadened line of product offerings, an expanded customer base, increased research and development expenditures and the completion of amany ~~number of~~ acquisitions. As a result of internal growth and acquisitions, our net sales from continuing operations have grown from $26.2 million in fiscal 1990 to $34,~~857~~485.70 million in fiscal ~~2024~~2025, representing a compound annual growth rate of approximately 16%. During the same period, we improved our net income from

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~~from~~ $2.0 million to $~~514~~690.14 million, representing a compound annual growth rate of approximately 18%.

Disciplined Acquisition Strategy

Acquisitions have been an important element of our growth strategy over the past thirty-~~four~~five years, supplementing our organic growth. Since 1990, we have completed approximately ~~103~~107 acquisitions complementing the niche segments of the aviation, defense, space, medical, telecommunications and electronics industries in which we operate. We typically target acquisition opportunities that allow us to broaden our product offerings, services and technologies while expanding our customer base and geographic presence. Even though we have historically pursued an active acquisition policy, our disciplined acquisition strategy involves limiting acquisition candidates to businesses that we believe will continue to grow, offer strong cash flow and earnings potential, and are available at fair prices. See Note 2, Acquisitions, of the Notes to Consolidated Financial Statements for further information regarding our recent acquisitions.

Flight Support Group

The Flight Support Group serves a broad spectrum of the aviation industry, including (i) commercial airlines and air cargo carriers; (ii) repair and overhaul facilities; (iii) OEMs; and (iv) U.S. and foreign governments.

The FSG competes with the leading industry OEMs and, to a lesser extent, with a number of smaller, independent parts distributors. Historically, the three principal jet engine OEMs, General Electric (including CFM International), Pratt & Whitney and Rolls Royce, have been the sole source of substantially all jet engine replacement parts for their jet engines. Other OEMs have been the sole source of replacement parts for their aircraft component parts. We believe that we are the largest independent supplier of non-OEM jet engine and aircraft component replacement parts, and in recent years and inclusive of acquisitions, we are now adding new products to our line at a rate of approximately ~~350~~400 to 550 Parts Manufacturer Approvals (“PMA” or “PMAs”) per year. We have developed for our customers approximately 20,000 parts for which PMAs have been received from the FAA.

Jet engine and aircraft component replacement parts can be categorized by their ongoing ability to be repaired and returned to service. The general categories in which we participate are as follows: (i) rotable; (ii) repairable; and (iii) expendable. A rotable is a part which is removed periodically as dictated by an operator’s maintenance procedures or on an as needed basis and is typically repaired or overhauled and re-used an indefinite number of times. An important subset of rotables is “life -limited” parts. A life -limited rotable has a designated number of allowable flight hours and/or cycles (one take-off and landing generally constitutes one cycle) after which it is rendered unusable. A repairable is similar to a rotable except that it can only be repaired a limited number of times before it must be discarded. An expendable is generally a part which is used up and ~~not~~replaced ~~thereafter~~as opposed to being repaired for further use.

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Jet engine and aircraft component replacement parts are classified within the industry as (i) factory-new; (ii) new surplus; (iii) overhauled; (iv) repairable; and (v) as removed. A factory-new or new surplus part is one that has never been installed or used. Factory-new parts are purchased from FAA-approved manufacturers (such as HEICO or OEMs) or their authorized distributors. New surplus parts are purchased from excess stock of airlines, repair facilities or other redistributors. An overhauled part is one that has been completely repaired and inspected by a licensed repair facility such as ours. An aircraft spare part is classified as “repairable” if it can be repaired by a licensed repair facility under applicable regulations. A part may also be classified as “repairable” if it can be removed by the operator from an aircraft or jet engine while operating under an approved maintenance program and is airworthy and meets any manufacturer or time and cycle restrictions applicable to the part. A “factory-new,” “new surplus” or “overhauled” part designation indicates that the part can be immediately utilized on an aircraft. A part in “as removed” or “repairable” condition requires inspection and possibly functional testing, repair or overhaul by a licensed facility prior to being returned to service in an aircraft.

FAA Approvals and Product Design. Non-OEM manufacturers of jet engine and aircraft component replacement parts must receive a PMA from the FAA to sell the replacement part. The PMA approval process includes the submission of sample parts, drawings and testing data to one of the FAA’s Aircraft Certification Offices where the submitted data are analyzed. We believe that an applicant’s ability to successfully complete the PMA process is limited by several factors, including (i) the agency’s confidence level in the applicant; (ii) the complexity of the part; (iii) the volume of PMAs being filed; and (iv) the resources available to the FAA. We also believe that companies such as HEICO that have demonstrated their advanced design engineering and manufacturing capabilities, including an established favorable track record with the FAA, generally receive a faster turnaround time in the processing of PMA applications. Finally, we believe that the PMA process creates a significant barrier to entry in this market niche through both its technical demands and its limits on the rate at which competitors can bring products to market.

Factory-New Jet Engine and Aircraft Component Replacement Parts. The FSG engages in the research and development, design, manufacture and sale of FAA-approved replacement parts that are sold to domestic and foreign commercial air carriers and aircraft repair and overhaul companies. Our principal competitors are aircraft engine and aircraft component manufacturers. The FSG's factory-new replacement parts include various jet engine and aircraft component replacement parts. A key element of our growth strategy is the continued design and development of an increasing number of PMA replacement parts in order to further penetrate our existing customer base and obtain new customers. We select the jet engine and aircraft component replacement parts to design and manufacture through a selection process which analyzes industry information to determine which replacement parts are suitable candidates.

Repair and Overhaul Services. The FSG provides repair and overhaul services on selected jet engine and aircraft component parts, as well as on avionics, instruments, composites and flight surfaces of commercial aircraft operated by domestic and foreign commercial airlines. The FSG also provides repair and overhaul services including avionics and navigation systems as well as subcomponents and other instruments utilized on military aircraft operated by the U.S.

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government and foreign military agencies and for aircraft repair and overhaul companies. Our repair and overhaul operations require a high level of expertise, advanced technology and sophisticated equipment. Services include the repair, refurbishment and overhaul of numerous accessories and parts mounted on gas turbine engines and airframes. Components overhauled include fuel pumps, generators, fuel controls, pneumatic valves, starters and actuators, turbo compressors and constant speed drives, hydraulic pumps, valves and actuators, wheels and brakes, composite flight controls, electro-mechanical equipment, auxiliary power unit accessories and thrust reverse actuation systems. Some of the repair and overhaul services provided by the FSG are proprietary repairs approved by an FAA-qualified designated engineering representative (“DER”) and/or by the owner/operator. Such proprietary repairs typically create cost savings or provide engineering flexibility. The FSG also provides commercial airlines, regional operators, asset management companies and Maintenance, Repair and Overhaul (“MRO”) providers with high quality and cost -effective niche accessory component exchange services as an alternative to OEMs’ spares services.

Distribution. The FSG distributes FAA-approved parts including hydraulic, pneumatic, structural, interconnect, mechanical and electro-mechanical components for the commercial, regional and general aviation markets. The FSG also is a leading supplier, distributor, and integrator of military aircraft parts and support services primarily to the U.S. Department of Defense, defense prime contractors, and foreign military organizations allied with the U.S. Further, we believe the FSG is a leading provider of products and services necessary to maintain up-to-date F-16 fighter aircraft operational capabilities.

Manufacture of Specialty Aircraft/Defense Related Parts and Subcontracting for OEMs. The FSG engineers, designs and manufactures thermal insulation blankets and parts as well as renewable/reusable insulation systems primarily for aerospace, defense, commercial and industrial applications. The FSG also manufactures specialty components and assemblies for sale as a subcontractor for aerospace and industrial original equipment manufacturers and the U.S. government. Additionally, the FSG manufactures advanced niche components and complex composite assemblies for commercial aviation, defense and space applications; manufactures expanded foil mesh, which is integrated into composite aerospace structures for lightning strike protection in fixed and rotary wing aircraft; performs tight-tolerance machining, brazing, fabricating and welding services for aerospace, defense and other industrial applications; produces and sells missile hardware and components; and designs, manufactures and distributes emergency descent devices ("EDDs"), personnel and cargo parachute products, heavy airdrop platforms, and other highly-engineered products.

As part of our growth strategy, we have continued to increase our research and development activities. Research and development expenditures by the FSG, ~~which~~ were ~~approximately~~ $43.37 million in fiscal ~~1991~~2025, ~~increased to approximately~~ $36.7 million in fiscal 2024, and $26.4 million in fiscal 2023 ~~and $22~~.~~2 million in fiscal 2022.~~ We believe that the FSG's research and development capabilities are a significant component of our historical success and an integral part of our growth strategy. In recent years, the FAA granted us PMAs for approximately ~~350~~400 to 550 new parts and we develop numerous new proprietary repairs per year; however, no assurance can be given that the FAA will continue to grant PMAs or DER-~~approved~~

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approved repairs or that we will achieve acceptable levels of net sales and gross profits on such parts or repairs in the future.

We benefit from our proprietary rights relating to certain design, engineering and manufacturing processes and repair and overhaul procedures. Customers often rely on us to provide initial and additional components, as well as to redesign, re-engineer, replace or repair and provide overhaul services on such aircraft components at every stage of their useful lives. In addition, for some products, our unique manufacturing capabilities are required by the customer’s specifications or designs, thereby necessitating reliance on us for production of such designed products.

We have no material patents for the proprietary techniques, including software and manufacturing expertise, we have developed to manufacture jet engine and aircraft component replacement parts and instead, we primarily rely on trade secret protection. Although our proprietary techniques and software and manufacturing expertise are subject to misappropriation or obsolescence, we believe that we take appropriate measures to prevent misappropriation or obsolescence from occurring by developing new techniques and improving existing methods and processes, which we will continue on an ongoing basis as dictated by the technological needs of our business.

We believe that, based on our competitive pricing, reputation for high quality, short lead time requirements, strong relationships with domestic and foreign commercial air carriers and repair stations (companies that overhaul aircraft engines and/or components), and successful track record of receiving PMAs and DER repair approvals from the FAA and commercial air carriers, we are uniquely positioned to continue to increase the products and services offered and gain market share.

Electronic Technologies Group

Our Electronic Technologies Group’s strategy is to design and manufacture highly-engineered, mission-critical subcomponents that must successfully operate in the harshest environments, for smaller, niche markets, but which are utilized in larger systems – systems like power, targeting, tracking, identification, simulation, testing, communications, lighting, surgical, medical imaging, baggage scanning, telecom and computer systems. These systems are, in turn, often located on another platform, such as aircraft, rotorcraft, satellites, ships, spacecraft, land vehicles, handheld devices and other platforms.

Electro-Optical Infrared Simulation and Test Equipment. The ETG is a designer and manufacturer of niche state-of-the-art simulation, testing and calibration equipment used in the development of missile seeking technology, airborne targeting and reconnaissance systems, shipboard targeting and reconnaissance systems, space-based sensors as well as ground vehicle-based systems. These products include infrared scene projector equipment, such as our MIRAGE IR Scene Simulator, high precision blackbody sources, software and integrated calibration systems.

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Simulation equipment allows the U.S. government and allied foreign military to save money on missile testing as it allows infrared-based missiles to be tested on a multi-axis, rotating table instead of requiring the launch of a complete missile. In addition, several large military prime contractors have elected to purchase such equipment from us instead of maintaining internal staff to do so because we can offer a more cost-effective solution. Our customers include major U.S. Department of Defense weapons laboratories and defense prime contractors.

Electro-Optical Laser Products. The ETG is a designer and maker of laser rangefinder receivers and other photodetectors used in airborne, vehicular and handheld targeting systems manufactured by major prime military contractors. Most of our rangefinder receiver product offering consists of complex and patented products which detect reflected light from laser targeting systems and allow the systems to confirm target accuracy and calculate target distances prior to discharging a weapon system. Some of these products are also used in laser eye surgery systems for tracking ocular movement.

Electro-Optical, Microwave and Other Power Equipment. The ETG produces power supplies, amplifiers and flash lamp drivers used in laser systems for military, medical and other applications that are sometimes utilized with our rangefinder receivers. We also produce emergency back-up power supplies and batteries used on commercial aircraft and business jets for services such as emergency exit lighting, emergency fuel shut-off, power door assists, cockpit voice recorders and flight computers. Additionally, we design, manufacture and repair flight deck annunciators, panels and indicators. We design and manufacture next generation wireless cabin control systems, solid state power distribution and management systems, fuel level sensing systems, ~~power distribution solutions and~~ proprietary in-cabin power and entertainment components and subsystems, and cockpit displays and other avionics components primarily for business jets, general aviation, and the military/defense market. We offer custom or standard designs that solve challenging OEM requirements and meet stringent safety and emissions requirements. Our power electronics products include capacitor charger power supplies, laser diode drivers, arc lamp power supplies and custom power supply designs.

Our microwave products are used in both commercial and military satellites, spacecraft and in electronic warfare systems. These products, which include isolators, bias tees, circulators, latching ferrite switches and waveguide adapters, are used in satellites and spacecraft to control or direct energy according to operator needs. As satellites are frequently used as sensors for stand-off warfare, we believe this product line further supports our goal of increasing our activity in the stand-off market. Additionally, our microwave products include custom high power filters and filter assemblies, converters, receivers, transmitters, amplifiers, frequency sources and related sub-systems that address ~~the~~most ~~majority of~~ major satellite frequencies. We believe we are a leading supplier of the niche products which we design and manufacture for this market, a market that includes commercial satellites. Our customers for these products include satellite and spacecraft manufacturers.

Electromagnetic Interference (EMI) and Radio-Frequency Interference (RFI) Shielding and Suppression Filters. The ETG designs and manufactures shielding used to prevent electromagnetic energy and radio frequencies from interfering with other devices, such as

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computers, telecommunication devices, avionics, weapons systems and other electronic equipment. The ETG designs and manufactures EMI/RFI and transient protection solutions for a wide variety of connectors that principally serve customers within the aerospace and defense markets. Our products include a patented line of shielding applied directly to circuit boards and a line of gasket-type shielding applied to computers and other electronic equipment. Our customers consist essentially of medical, electronics, telecommunications and defense equipment producers.

High-Speed Interface Products. The ETG designs and manufactures advanced high-technology, high-speed interface products utilized in homeland security, defense, medical research, astronomical and other applications across numerous industries.

High Voltage Interconnection Devices. The ETG designs and manufactures high and very high voltage interconnection devices, cable assemblies and wire for the medical equipment, defense and other industrial markets. Among others, our products are utilized in aircraft missile defense, fighter pilot helmet displays, avionics systems, medical applications, wireless communications, and industrial applications including high voltage test equipment and underwater monitoring systems.

High Voltage Advanced Power Electronics. The ETG designs and manufactures a patented line of high voltage energy generators for medical, baggage inspection and industrial imaging systems. We also produce high voltage power supplies found in satellite communications, CT scanners and in medical and industrial x-ray systems.

Power Conversion Products. The ETG designs and provides innovative power conversion products principally serving the high-reliability military, space and commercial avionics end-markets. These high density, low profile and lightweight DC-to-DC converters and electromagnetic interference filters, which include thick film hermetically sealed hybrids, military commercial-off-the-shelf and custom designed and assembled products, have become the primary specified components of their kind on a generation of complex military, space and avionics equipment.

Underwater Locator Beacons and Emergency Locator Transmission Beacons. The ETG designs and manufactures Underwater Locator Beacons (“ULBs”) used to locate aircraft Cockpit Voice Recorders and Flight Data Recorders, marine ship Voyage Recorders and various other devices which have been submerged under water. ULBs are required equipment on all U.S. FAA and European Aviation Safety Agency (“EASA”) approved Flight Data and Cockpit Voice Recorders used in aircraft and on similar systems utilized on large marine shipping vessels. The ETG also designs and manufactures Emergency Locator Transmission Beacons for the commercial aviation and defense markets. Upon activation, these safety-critical devices transmit a distress signal to alert search and rescue operations of the aircraft's location.

Traveling Wave Tube Amplifiers (“TWTAs”) and Microwave Power Modules (“MPMs”). The ETG designs and manufactures TWTAs and MPMs predominately used in radar, electronic

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warfare, on-board jamming and countermeasure systems in aircraft, ships and detection platforms deployed by U.S. and allied non-U.S. military forces.

Memory Products and Specialty Semiconductors. The ETG designs, manufactures and markets three-dimensional microelectronic and stacked memory products including memories, Point of Load (“POL”) voltage converters and peripherals, industrial memories, and complex System-in-Package (“SiP”) solutions. The products’ patented designs provide high reliability memory and circuitry in a unique and stacked form which saves space and weight. These products are principally integrated into larger subsystems equipping satellites and spacecraft and are also utilized in medical equipment. Additionally, the ETG designs and manufactures specialty semiconductors and offers a well-developed line of processors as well as static random-access memory (SRAM) and electronically erasable programmable read-only memory (EEPROM) products utilized on a diverse array of military, space and medical platforms.

Harsh Environment Connectivity Products and Custom Molded Cable Assemblies. The ETG designs and manufactures high performance, high reliability and harsh environment electronic connectors and other interconnect products. These products include connectors, jacks and plugs, cables, patch panels and switches utilized in aviation, broadcast/audio, defense, industrial, medical and other equipment.

RF and Microwave Products. The ETG designs and manufactures RF and microwave amplifiers, transmitters and receivers to support military communications on unmanned aerial systems, other aircraft, helicopters and ground-based data/communications systems. The ETG designs and manufactures state-of-the-art RF and microwave integrated assemblies, sub-assemblies and components used in a broad range of demanding defense applications operating in harsh environments including space.

High Performance Communications and Electronic Intercept Receivers and Tuners. The ETG designs and manufactures innovative, high performance receiver and radio frequency digitizer products for military and intelligence applications.

Crashworthy and Ballistically Self-Sealing Auxiliary Fuel Systems. The ETG designs and manufactures mission-extending, crashworthy and ballistically self-sealing auxiliary fuel systems for military rotorcraft.

High Performance Active Antenna Systems and Airborne Antennas. The ETG designs and produces high performance active antenna systems and airborne antennas for commercial and military aircraft, precision guided munitions, and other defense applications and commercial uses.

Nuclear Radiation Detectors. The ETG designs and manufactures highly sensitive, reliable and easy-to-use nuclear radiation detectors for law enforcement, homeland security and military applications.

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Specialty Silicone Products. The ETG designs and manufactures silicone material for a variety of demanding applications used in aerospace, defense, research, oil and gas, testing, pharmaceuticals and other markets.

High-End Power Amplifiers. The ETG designs and manufactures precision power analog monolithic, hybrid and open frame components for a certain wide range of defense, industrial, measurement, medical and test applications.

High-Reliability ("Hi-Rel") Ceramic-to-Metal Feedthroughs and Connectors. The ETG designs and manufactures high-reliability ceramic-to-metal feedthroughs and connectors for demanding environments within the industrial, life science, medical, research, semiconductor, and other markets.

Technical Surveillance Countermeasures ("TSCM") Equipment. The ETG designs and manufactures TSCM equipment to detect devices used for espionage and information theft serving government agencies, law enforcement, corporate security personnel and TSCM professionals worldwide.

High-End Radio Frequency Receivers and Sources. The ETG designs and manufactures RF Sources, Detectors and Controllers for a certain wide range of aerospace and defense applications.

Rugged, Small-Form-Factor Embedded Computing Solutions. The ETG designs and manufactures rugged, small-form-factor embedded computing solutions that are primarily used in rugged commercial and industrial, aerospace and defense, transportation, and smart energy applications.

High Performance Test Sockets and Adapters. The ETG designs and manufactures higher performance test sockets and adapters for both engineering and production use of semiconductor devices.

Radiation Engineering. The ETG offers radiation assurance services and products used in testing and simulating radiation effects on electronic components and materials.

Hi-Rel, Passive Electronic Components and Rotary Joint Assemblies. The ETG ~~offers~~designs and manufactures Hi-Rel, complex, passive electronic components and rotary joint assemblies for mostly aerospace and defense applications, in addition to other high-end applications, such as medical and energy uses, including emerging "clean energy" and electrification applications.

As part of our growth strategy, we have continued to invest in our research and development activities. Research and development expenditures by the ETG were $7477.52 million in fiscal ~~2024~~2025, $6974.45 million in fiscal ~~2023~~2024 and $5369.94 million in fiscal ~~2022~~2023. We believe that the ETG's research and development capabilities are a significant component of our historical success and an integral part of our growth strategy.

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Distribution, Sales, Marketing and Customers

Each of our operating segments independently conducts distribution, sales and marketing efforts directed at their respective customers and industries and, in some cases, collaborates with other operating divisions and subsidiaries within ~~its~~the ~~group~~Company for cross-marketing efforts. Sales and marketing efforts are conducted primarily by in-house personnel and, to a lesser extent, by independent manufacturers’ representatives. Generally, our in-house sales personnel receive a base salary plus commissions and manufacturers’ representatives receive a commission based on sales.

We believe that direct relationships are crucial to establishing and maintaining a strong customer base and, accordingly, our senior management is actively involved in our marketing activities, particularly with established customers. We are also a member of various trade and business organizations related to the commercial aviation industry, such as the Aerospace Industries Association, which we refer to as AIA, the leading trade association representing the nation’s manufacturers of commercial, military and business aircraft, aircraft engines and related components and equipment. Due in large part to our established industry presence, we enjoy strong customer relations, name recognition and repeat business.

We sell our products to a broad customer base consisting of domestic and foreign commercial and cargo airlines, repair and overhaul facilities, other aftermarket suppliers of aircraft engine and airframe materials, OEMs, domestic and foreign military units, electronic manufacturing services companies, manufacturers for the defense industry as well as medical, telecommunications, scientific, and industrial companies. No one customer accounted for sales of 10% or more of total consolidated sales from continuing operations during any of the last three fiscal years. Net sales to our five largest customers accounted for approximately 1920%, 1819% and 2118% of total net sales in fiscal ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023, respectively.

Competition

The aerospace product and service industry is characterized by intense competition. Some of our competitors have substantially greater name recognition, inventories, complementary product and service offerings, financial, marketing and other resources than we do. As a result, such competitors may be able to respond more quickly to customer requirements than we can. Moreover, smaller competitors may be inable ~~a position~~ to offer more attractive pricing asbecause ~~a result~~ of lower labor costs and other factors.

Our jet engine and aircraft component replacement parts business competes primarily with aircraft engine and aircraft component OEMs. The competition is principally based on price and service to the extent that our parts are interchangeable. With respect to other aerospace products and services sold by the Flight Support Group, we compete with both the leading jet engine and aircraft component OEMs and a large number of machining, fabrication, distribution and repair companies, some of which have greater financial and other resources than we do. Competition is based mainly on price, product performance, service and technical capability.

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Competition for the repair and overhaul of jet engine and aircraft components and avionics and navigation systems as well as the manufacture of specialty aircraft and defense related parts comes from three principal sources: OEMs, major commercial airlines and other independent service companies. Some of these competitors have greater financial and other resources than we do. Some major commercial airlines own and operate their own service centers and sell repair and overhaul services to other aircraft operators. Foreign airlines that provide repair and overhaul services typically provide these services for their own aircraft components and for third parties. OEMs also maintain service centers that provide repair and overhaul services for the components they manufacture. Other independent service organizations also compete for the repair and overhaul business of other users of aircraft components. We believe that the principal competitive factors in the repair and overhaul market are quality, turnaround time, overall customer service and price.

Our Electronic Technologies Group competes with several large and small domestic and foreign competitors, some of which have greater financial and other resources than we do. The markets for our electronic, data and microwave, and electro-optical equipment products are niche markets with several competitors where competition is based mainly on design, technology, quality, price, service and customer satisfaction.

Raw Materials

We purchase a variety of raw materials, primarily consisting of high temperature alloy sheet metal and castings, forgings, pre-plated metals, electrical components and advanced composite materials from various vendors. The materials used by our operations are generally available from a number of sources and in sufficient quantities to meet current requirements subject to normal lead times. While certain of our raw materials are subject to global market price fluctuations and international trade regulations, including tariffs, such measures have not had, and are not currently expected to have a material impact on our business or results of operations. We are subject to rules promulgated by the Securities and Exchange Commission pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding the use of certain materials (tantalum, tin, gold and tungsten), known as conflict minerals, which are mined from the Democratic Republic of the Congo and adjoining countries. These rules may impose additional costs and may introduce new risks related to our ability to verify the origin of any conflict minerals used in our products.

Government Regulation

The FAA regulates the manufacture, repair and operation of all aircraft and aircraft parts operated in the United States. Its regulations are designed to ensure that all aircraft and aviation equipment are continuously maintained in proper condition to ensure safe operation of the aircraft. Similar rules apply in other countries. All aircraft must be maintained under a continuous condition monitoring program and must periodically undergo thorough inspection and maintenance. The inspection, maintenance and repair procedures for the various types of aircraft and equipment are prescribed by regulatory authorities and can be performed only by certified repair facilities utilizing certified technicians. Certification and conformance is required prior to installation of a part on an aircraft. Aircraft operators must maintain logs concerning the utilization and condition of aircraft engines, life-limited engine parts and airframes. In addition, the FAA requires that various maintenance routines be performed on

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prior to installation of a part on an aircraft. Aircraft operators must maintain logs concerning the utilization and condition of aircraft engines, life-limited engine parts and airframes. In addition, the FAA requires that various maintenance routines be performed on aircraft engines, some engine parts, and airframes at regular intervals based on cycles or flight time. Engine maintenance must also be performed upon the occurrence of certain events, such as foreign object damage in an aircraft engine or the replacement of life-limited engine parts. Such maintenance usually requires that an aircraft engine be taken out of service. Our operations may in the future be subject to new and more stringent regulatory requirements. In that regard, we closely monitor the FAA and industry trade groups ~~in an attempt~~ to understand how possible future regulations might impact us. Our businesses which sell defense products directly to the U.S. Government or for use in systems delivered to the U.S. Government can be subject to various laws and regulations governing pricing and other factors.

There has been no material adverse effect toon our consolidated financial statements nor competitive positions as a result of these government regulations.

Environmental Regulation

Our operations are subject to extensive, and frequently changing, federal, state and local environmental laws and substantial related regulation by government agencies, including the Environmental Protection Agency. Among other matters, these regulatory authorities impose requirements that regulate the operation, handling, transportation and disposal of hazardous materials; protect the health and safety of workers; and require us to obtain and maintain licenses and permits in connection with our operations. This extensive regulatory framework imposes significant compliance burdens and risks on us. Notwithstanding these burdens, we believe that we are in material compliance with all federal, state and local environmental laws and regulations governing our operations.

There has been no material adverse effect toon our consolidated financial statements nor competitive positions as a result of these environmental regulations.

~~Other~~Trade ~~Regulation~~Compliance

WeOur ~~are~~operations ~~also~~involve ~~subject~~products toand atechnologies ~~variety~~subject ofto ~~other~~U.S. ~~regulations including work-related~~ and ~~community~~international ~~safety~~trade control laws~~. The~~, ~~Occupational~~including ~~Safety~~the ~~and~~International ~~Health~~Traffic ~~Act~~in ofArms ~~1970~~Regulations ~~mandates~~(ITAR), ~~general~~the ~~requirements~~Export ~~for~~Administration ~~safe~~Regulations ~~workplaces~~(EAR), ~~for~~and ~~all~~economic ~~employees~~sanctions ~~and~~administered ~~established~~by the ~~Occupational~~Office ~~Safety~~of ~~and~~Foreign ~~Health~~Assets ~~Administration~~Control (~~“OSHA”~~OFAC) ~~in the Department of Labor~~. InThese ~~particular,~~laws ~~OSHA~~regulate ~~provides~~the ~~special~~export, ~~procedures~~re-export, and ~~measures~~transfer ~~for the handling~~ of certain ~~hazardous~~items, ~~and~~technical ~~toxic~~data, ~~substances. In addition~~software, ~~specific~~and ~~safety~~services, ~~standards~~and ~~have~~may ~~been~~require ~~promulgated~~us ~~for~~to ~~workplaces~~obtain ~~engaged~~licenses ~~in the treatment, disposal~~ or ~~storage~~other ofgovernmental ~~hazardous waste~~authorizations. ~~Requirements~~We ~~under~~maintain ~~state~~compliance ~~law,~~programs inthat ~~some~~include ~~circumstances~~screening, ~~may~~training, ~~mandate~~and ~~additional~~documentation ~~measures~~procedures, ~~for~~and ~~facilities~~similar ~~handling~~requirements ~~materials~~apply ~~specified~~in asother ~~extremely~~jurisdictions ~~dangerous~~where we operate. We believe ~~that~~we ~~our operations~~ are in material compliance with ~~OSHA’s~~applicable ~~health~~trade laws and ~~safety requirements~~regulations.

There has been no material adverse effect on our consolidated financial statements nor competitive positions as a result of these trade compliance regulations.

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Other Regulation

We are also subject to a variety of other regulations including work-related and community safety laws. The Occupational Safety and Health Act of 1970 mandates general requirements for safe workplaces for all employees and established the Occupational Safety and Health Administration (“OSHA”) in the Department of Labor. In particular, OSHA provides special procedures and measures for the handling of certain hazardous and toxic substances. In addition, specific safety standards have been promulgated for workplaces engaged in the treatment, disposal or storage of hazardous waste. Requirements under state law, in some circumstances, may mandate additional measures for facilities handling materials specified as extremely dangerous. We believe that our operations are in material compliance with OSHA’s health and safety requirements.

Insurance

We are a named insured under policies which include the following coverage: (i) product liability, including grounding; (ii) personal property, inventory and business interruption at our facilities; (iii) general liability coverage; (iv) employee benefit liability; (v) international liability and automobile liability; (vi) umbrella liability coverage; and (vii) various other activities or items, each subject to certain limits and deductibles. We believe that our insurance coverage is adequate to insure against the various liability risks of our business.

Human Capital

We believe HEICO’s employees are directly responsible for its success through dedication to their profession and craft. This talented group continues to deliver industry leading growth and new product innovations, all while maintaining HEICO’s unique entrepreneurial culture of excellence.

As of October 31, ~~2024~~2025, we had approximately 1011,~~000~~100 full-time and part-time employees including approximately 5,~~100~~300 in the Flight Support Group (of whom approximately ~~1,000~~900 were employed by foreign subsidiaries) and approximately 45,~~900~~800 in the Electronic Technologies Group (of whom approximately 2,~~000~~600 were employed by foreign subsidiaries). None of our employees are represented by a U.S. domestic union. Our management believes that we have good relations with our employees.

Health and Safety

The health and safety of our workforce is fundamental to the success of our business. We safeguard our people, projects and reputation by striving for zero employee injuries and illnesses, while operating and delivering our work responsibly and sustainably. We provide our employees with upfront and ongoing safety training to ensure that safety policies and procedures are effectively communicated and implemented. Personal protective equipment is provided to those employees where needed for the employee to safely perform their job function.

Compensation and Benefits

As part of our compensation philosophy, we believe that offering and maintaining market competitive total rewards programs is essential to attract and retain superior talent. In addition to paying healthy base wages, our programs include annual bonus opportunities, a company-matched 401(k) plan, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, family leave, flexible work schedules, and employee assistance programs. Equity compensation is also a key component of our compensation strategy, with all domestic team members receiving an annual 401(k) employer contribution in HEICO stock based on Company performance, and employer 401(k) matching contributions are also made using HEICO stock. Additionally, certain team member are granted stock options, further aligning their success with HEICO's growth.

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Compensation and Benefits

Diversity and Inclusion

We are committed to ~~remaining~~maintaining a diverse and inclusive work environment that supports our global workforce and the communities we serve. We recruit the best people for the job regardless of gender, ethnicity or other protected traits and it is our policy to fully comply with all laws (domestic and foreign) applicable to discrimination in the workplace. Our diversity and inclusion principles are also reflected in our employee training and policies.

Available Information

Our Internet website address is https://www.heico.com. We make available free of charge, through the Investors section of our website, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, specialized disclosure reports on Form SD and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (“SEC”). These materials are also available free of charge on the SEC’s website at ~~http~~https://www.sec.gov. The information on or obtainable through our website is not incorporated into this Annual Report on Form 10-K.

We have adopted a code of ethics that applies to our co-principal executive ~~officer~~officers, principal financial officer, principal accounting officer or controller and other persons performing similar functions. Our Code of Ethics for Senior Financial and Other Officers is part of our Code of Business Conduct, which is located on our website at https://www.heico.com. Any amendments to or waivers from a provision of this code of ethics will be posted on the website. Also located on the website are our Corporate Governance Guidelines, Finance/Audit Committee Charter, Nominating & Corporate Governance Committee Charter, and Compensation Committee Charter.

Copies of the above referenced materials will be made available, free of charge, upon written request to the Corporate Secretary at HEICO Corporation, 3000 Taft Street, Hollywood, Florida 33021.

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Copies of the above-mentioned materials will be made available, free of charge, upon written request to the Corporate Secretary at HEICO Corporation, 3000 Taft Street, Hollywood, Florida 33021.

Information About Our Executive Officers

Our executive officers are appointed by the Board of Directors and serve at the discretion of the Board. The following table sets forth the names, ages of, and positions and offices held by our executive officers as of December 1819, ~~2024~~2025:

Name	Age	Position(s)	DirectorSince
Laurans A. Mendelson	86	Chairman of the Board; Chief Executive Officer; and Director	1989
Eric A. Mendelson	60	Co-Chariman of the Board; Co-Chief Executive Officer, and Director; President and Chief Executive Officer of the HEICO Flight Support Group	1992
Eric A. Mendelson	59	Co-President and Director; President and Chief Executive Officer of the HEICO Flight Support Group	1992
Victor H. Mendelson	58	Co-Chairman of the Board; Co-Chief Executive Officer, and Director; President and Chief Executive Officer of the HEICO Electronic Technologies Group	1996
Victor H. Mendelson	57	Co-President and Director; President and Chief Executive Officer of the HEICO Electronic Technologies Group	1996
Carlos L. Macau, Jr.	58	Executive Vice President - Chief Financial Officer and Treasurer	—
Thomas S. Irwin	78	Senior Executive Vice President	—
Bradley K. Rowen	44	Chief Accounting Officer and Assistant Treasurer	—
Carlos L. Macau, Jr.	57	Executive Vice President - Chief Financial Officer and Treasurer	—
Steven M. Walker	60	Chief Accounting Officer and Assistant Treasurer	—

~~Laurans~~Eric A. Mendelson has ~~served~~been asassociated ~~our~~with ~~Chairman of~~ the ~~Board~~Company since ~~December~~ 1990., serving in a variety of leadership roles. He has ~~also~~ served as our Co-Chief Executive Officer since ~~February~~May ~~1990~~2025 and ~~served~~ as ~~our~~Co-Chairman ~~President~~of ~~from~~the ~~September~~Board ~~1991~~since ~~through~~ September ~~2009~~2025. Previously, Mr. Mendelson isserved aas ~~former~~Co-President ~~Chairman~~from ~~and~~October ~~present~~2009 ~~member~~to ofApril ~~the~~2025 ~~Board~~and ofas ~~Trustees,~~Executive ~~former~~Vice ~~Chairman~~President ~~and~~from ~~present~~2001 ~~member~~to ofSeptember ~~the~~2009. Mr. ~~Executive~~Mendelson ~~Committee~~has also served as President and aChief ~~current~~Executive ~~member~~Officer of the ~~Society~~HEICO ofFlight ~~Mount~~Support ~~Sinai~~Group ~~Founders~~since ofits ~~Mount~~formation ~~Sinai~~in ~~Medical~~1993, ~~Center~~as inwell ~~Miami~~as ~~Beach,~~President ~~Florida. In~~of ~~addition,~~various ~~Mr.~~Flight ~~Mendelson~~Support Group subsidiaries. He is a ~~Trustee~~co-founder ~~Emeritus~~and, ofsince ~~Columbia~~1987, ~~University~~has inbeen ~~the~~Managing ~~City~~Director of ~~New~~Mendelson ~~York~~International Corporation, ~~where~~a heprivate ~~previously~~investment ~~served~~company asthat ~~Trustee~~is ~~and~~a ~~Chairman~~shareholder of ~~the Trustees’ Audit Committee~~HEICO. Mr. Mendelson ~~was~~is ~~awarded~~a member of the ~~honor~~Board of ~~Chevalier~~Governors inof ~~France’s~~the ~~Légion~~Aerospace ~~d'honneur~~Industries Association (“AIA”) in Washington, D. MrC., ~~Mendelson~~and ~~was~~has previously ~~named~~served ~~Best~~as ~~CEO~~an inEx-Officio ~~the~~Member ~~Aerospace~~of &its ~~Defense~~Executive ~~Electronics~~Committee ~~Sector~~and byas ~~Institutional~~Chair ~~Investor~~of ~~magazine~~the ~~and~~AIA ~~recently~~Civil ~~received~~Aviation ~~the~~Leadership ~~Ultimate~~Council. In ~~CEO~~addition, ~~Award~~he ~~from~~serves on the ~~South~~Board ~~Florida~~of ~~Business~~Directors ~~Journal. Early~~of inPartnership ~~his~~for ~~career~~Miami, ~~Mr.~~the ~~Mendelson~~Advisory ~~was~~Board aof ~~licensed~~Trustees ~~and~~of ~~practicing~~Mount ~~Certified~~Sinai ~~Public~~Medical ~~Accountant~~Center in ~~the~~Miami ~~states~~Beach, of Florida, and ~~New~~is ~~York,~~a ~~though~~Past heChairman noof ~~longer~~Ransom ~~practices~~Everglades ~~and~~School ~~his~~in ~~license~~Coconut isGrove, ~~inactive~~Florida. ~~Laurans~~Eric Mendelson is the ~~father~~brother of ~~Eric Mendelson and~~ Victor Mendelson.

~~Eric~~Victor AH. Mendelson has been associated with the Company since 1990, serving in ~~various~~a ~~capacities~~variety of leadership roles. ~~Mr.~~He ~~Mendelson~~ has served as our Co-~~President~~Chief Executive Officer since ~~October~~May ~~2009~~2025 and ~~served~~ as ~~our~~Co-Chairman ~~Executive~~of ~~Vice~~the ~~President~~Board ~~from~~since ~~2001 through~~ September ~~2009~~2025. Previously, Mr. Mendelson ~~has also~~ served as Co-President ~~and~~from ~~Chief~~October ~~Executive~~2009 ~~Officer~~to ofApril ~~the~~2025 ~~HEICO~~and ~~Flight Support Group since its formation in 1993,~~ as ~~well~~Executive asVice President offrom ~~various~~2001 ~~Flight~~to ~~Support~~September ~~Group subsidiaries~~2009. Mr. Mendelson ishas aalso ~~co-founder,~~served ~~and,~~as ~~since~~President ~~1987,~~and ~~has~~Chief ~~been~~Executive ~~Managing~~Officer ~~Director~~ of ~~Mendelson~~the ~~International~~HEICO ~~Corporation,~~Electronic aTechnologies ~~private~~Group ~~investment~~since ~~company,~~founding ~~which~~it isin aSeptember ~~shareholder of HEICO~~1996. He ~~is a member of the Board of Governors, and has previously~~ served as ~~an Ex-Officio Member of~~ the ~~Executive~~Company’s ~~Committee,~~General ~~and~~Counsel ~~Chair~~from of1993 ~~the~~to ~~Civil~~2008 ~~Aviation~~and ~~Leadership Council, of~~ the ~~Aerospace~~Company’s ~~Industries~~Vice ~~Association~~President ~~(“AIA”)~~from in1996 ~~Washington,~~to D2001.~~C., of which HEICO is a member.~~ In addition, Mr. Mendelson iswas ~~a member of~~ the ~~Board~~Chief ofOperating ~~Directors~~Officer of ~~Partnership for Miami, a member of~~ the ~~Advisory~~Company’s ~~Board~~former ~~of Trustees of Mount Sinai Medical Center in Miami Beach, Florida, a Past Chairman of Ransom Everglades~~

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~~School~~MediTek Health Corporation subsidiary from 1995 until its profitable sale in ~~Coconut~~1996. Mr. ~~Grove~~Mendelson is a co-founder, ~~Florida~~and, assince ~~well~~1987, ashas been President of Mendelson International Corporation, a ~~member~~private investment company that is a shareholder of HEICO. Mr. Mendelson is a Vice-Chair of the Board of ~~Visitors~~Trustees of Columbia ~~College~~University in the City of New York, ~~City~~a Trustee of St. ~~Eric~~ ~~Mendelson~~Thomas University in Miami Gardens, Florida, a Director of Boys & Girls Clubs of Miami-Dade and is a Director and Past President of the ~~son~~Board of ~~Laurans~~Directors of the Florida Grand Opera. Victor Mendelson ~~and~~is the brother of ~~Victor~~Eric Mendelson.

Victor H. Mendelson has been associated with the Company since 1990, serving in various capacities. Mr. Mendelson has served as our Co-President since October 2009 and served as our Executive Vice President from 2001 through September 2009. Mr. Mendelson has also served as President and Chief Executive Officer of the HEICO Electronic Technologies Group since founding it in September 1996. He served as the Company’s General Counsel from 1993 to 2008 and the Company’s Vice President from 1996 to 2001. In addition, Mr. Mendelson was the Chief Operating Officer of the Company’s former MediTek Health Corporation subsidiary from 1995 until its profitable sale in 1996. Mr. Mendelson is a co-founder, and, since 1987, has been President of Mendelson International Corporation, a private investment company, which is a shareholder of HEICO. Mr. Mendelson is a Vice-Chair of the Board of Trustees of Columbia University in the City of New York, a Trustee of St. Thomas University in Miami Gardens, Florida, a Director of Boys & Girls Clubs of Miami-Dade and is a Director and Past President of the Board of Directors of the Florida Grand Opera. Victor Mendelson is the son of Laurans Mendelson and the brother of Eric Mendelson.

Thomas S. Irwin has served as our Senior Executive Vice President since June 2012; our Executive Vice President, Chief Financial Officer and Treasurer from September 1991 through May 2012; Senior Vice President and Treasurer from 1986 to 1991; and our Vice President and Treasurer from 1982 to 1986. Mr. Irwin is a Certified Public Accountant. He is a member of the American and North Carolina Institutes of Certified Public Accountants.

Carlos L. Macau, Jr. has served as our Executive Vice President - Chief Financial Officer and Treasurer since June 2012. Mr. Macau joined HEICO from the international public accounting firm of Deloitte & Touche LLP where he worked from 2000 to 2012 as an Audit Partner. Prior to joining HEICO, Mr. Macau accumulated 22 years of financial and accounting experience serving a number of public and private manufacturing and service clients in a broad range of industries. His client responsibilities included serving as HEICO's lead client services partner for five years (2006 to 2010). Mr. Macau is a current member of the Mount Sinai Founders of Mount Sinai Medical Center in Miami Beach, Florida. Mr. Macau is a Certified Public Accountant, a Chartered Global Management Accountant, and a member of the American and Florida Institutes of Certified Public Accountants.

~~Steven~~Bradley MK. ~~Walker~~Rowen has served as our Chief Accounting Officer since ~~June~~February ~~2012 and served as our Corporate Controller from 2002 through May 2012~~2025. He ~~has also served as our Assistant Treasurer since 2002.~~ Mr. ~~Walker is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants.~~

17Rowen has been with the Company since May 2011. Previously, he served as Senior Director of

~~Index~~Corporate Accounting and Finance from 2018 to February 2025 and as Assistant Corporate

Controller and Director of Financial Reporting from 2011 to 2018. Prior to joining the Company, Mr. Rowen was employed by the international public accounting firm of PricewaterhouseCoopers LLP, where he worked for six years. Mr. Rowen is a Certified

Public Accountant and a member of the American and Florida Institutes of Certified Public

Accountants.

Item 1A. RISK FACTORS

Our business, financial condition, operating results and cash flows may be impacted by a number of factors, many of which are beyond our control, including those set forth below and elsewhere in this Annual Report on Form 10-K, any one of which may cause our actual results to differ materially from anticipated results:

Strategic, Business and Operational Risks

We may not be able to effectively execute our acquisition strategy, which could slow our growth.

A key element of our strategy is growth through the acquisition of additional companies. Our acquisition strategy is affected by and poses a number of challenges and risks, including the following:

•Availability of suitable acquisition candidates;

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•Availability of capital;

•Diversion of management’s attention;

•Effective integration of the operations and personnel of acquired companies;

•Potential write-downs of acquired intangible assets;

•Potential loss of key employees of acquired companies;

•Use of a significant portion of our available cash;

•Significant dilution to our shareholders for acquisitions made utilizing our securities;

•Consummation of acquisitions on satisfactory terms; and

•Obtaining applicable domestic and/or foreign governmental approvals such as antitrust and foreign investment related authorizations.

We may not be able to successfully execute our acquisition strategy, and the failure to do so could have a material adverse effect on our business, financial condition and results of operations.

Our success is dependent on the development and manufacture of new products, equipment and services. Our inability to develop, manufacture and introduce new products and services at profitable pricing levels could reduce our sales or sales growth.

The aviation, defense, space, medical, telecommunications and electronics industries are constantly undergoing development and change and, accordingly, new products, equipment and methods of repair and overhaul service are likely to be introduced in the future. In addition to manufacturing electronic and electro-optical equipment and selected aerospace and defense components for OEMs and the U.S. government and repairing jet engine and aircraft components, we re-design sophisticated aircraft replacement parts originally developed by OEMs so that we can offer the replacement parts for sale at substantially lower prices than those manufactured by the OEMs. Consequently, we devote substantial resources to research and product development. Technological development poses a number of challenges and risks, including the following:

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product development. Technological development poses a number of challenges and risks, including the following:

•We may not be able to successfully protect the proprietary interests we have in various aircraft parts, electronic and electro-optical equipment and our repair processes;

•As OEMs continue to develop and improve jet engines and aircraft components, we may not be able to re-design and manufacture replacement parts that perform as well as those offered by OEMs or we may not be able to profitably sell our replacement parts at lower prices than the OEMs;

•We may need to expend significant capital to:

- purchase new equipment and machines,

- train employees in new methods of production and service, and

- fund the research and development of new products; and

•Development by our competitors of patents or methodologies that preclude us from the design and manufacture of aircraft replacement parts or electrical and electro-optical ~~equipment could adversely affect our business, financial condition and results of operations.~~

In addition, we may not be able to successfully develop new products, equipment or methods of repair and overhaul service, and the failure to do so could have a material adverse effect on our business, financial condition and results of operations.18

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equipment could adversely affect our business, financial condition and results of operations.

In addition, we may not be able to successfully develop new products, equipment or methods of repair and overhaul service, and failure to do so could have a material adverse effect on our business, financial condition and results of operations.

Intense competition from existing and new competitors may harm our business.

We face significant competition in each of our businesses.

Flight Support Group

•For jet engine and aircraft component replacement parts, we compete with the industry’s leading jet engine and aircraft component OEMs.

•For the distribution, overhaul and repair of jet engine and aircraft components and avionics and navigation systems as well as the manufacture of specialty aircraft and defense related parts, we compete with:

- major commercial airlines, many of which operate their own maintenance and overhaul units;

- OEMs, which manufacture, distribute, repair and overhaul their own and other OEM parts; and

- other independent service companies.

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Electronic Technologies Group

•For the design and manufacture of various types of electronic, data and microwave, and electro-optical equipment products, we compete in a fragmented marketplace with a number of companies, some of which are well capitalized.

Many of the industries serviced by our operating segments are highly fragmented, have several highly visible leading companies, and are characterized by intense competition. Some of our OEM competitors have greater name recognition than HEICO, as well as complementary lines of business and financial, marketing and other resources that HEICO does not have. In addition, OEMs, aircraft maintenance providers, leasing companies and FAA-certificated repair facilities may attempt to bundle their services and product offerings in the supply industry, thereby significantly increasing industry competition. Moreover, our smaller competitors may be able to offer more attractive pricing of parts as a result of lower labor costs or other factors. A variety of potential actions by any of our competitors, including a reduction of product prices or the establishment by competitors of long-term relationships with new or existing customers, could have a material adverse effect on our business, financial condition and results of operations. Competition typically intensifies during cyclical downturns in the aviation industry, when supply may exceed demand. We may not be able to continue to compete effectively ~~against present or future competitors, and competitive pressures may have a material adverse effect on our business, financial condition and results of operations.~~

~~The inability to obtain certain components and raw materials from suppliers could harm our business.~~19

Transitions to new suppliers may result in significant costs and delays, including those related to the required recertification of parts obtained from new suppliers with our customers and/or regulatory agencies. Our inability to fill our supply needs could jeopardize our ability to fulfill obligations under customer contracts, which could result in reduced revenues and profits, contract penalties or terminations, and damage to customer relationships. Further, increased costs of such raw materials or components could reduce our profits if we were unable to pass along such price increases to our customers.

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~~Product~~against ~~specification~~present ~~costs~~or future competitors, and ~~requirements~~competitive ~~could~~pressures ~~cause~~may anhave ~~increase~~a tomaterial adverse effect on our ~~costs~~business, tofinancial ~~complete~~condition ~~contracts~~and results of operations.

The inability to obtain certain components and raw materials from suppliers could harm our business.

Our business is affected by the availability and price of the raw materials and component parts that we use to manufacture our products. Our ability to manage inventory and meet delivery requirements may be constrained by our suppliers’ ability to adjust delivery of long-lead time products during times of volatile demand. The supply chains for our business could also be disrupted by external events such as natural disasters, extreme weather events, pandemics, labor disputes, governmental actions and legislative or regulatory changes. For example, tariffs, duties or other trade policy changes affecting the import or export of raw materials or components could increase costs or limit availability. As a result, our suppliers may fail to perform according to specifications when required and we may be unable to identify alternate suppliers or to otherwise mitigate the consequences of their non-performance. Transitions to new suppliers may result in significant costs and delays, including those related to the required recertification of parts obtained from new suppliers with our customers and/or regulatory agencies. Our inability to fill our supply needs could jeopardize our ability to fulfill obligations under customer contracts, which could result in reduced revenues and profits, contract penalties or terminations, and damage to customer relationships and reputation. Further, increased costs of such raw materials or components could reduce our profits if we were unable to pass along such price increases to our customers.

Product specification costs and requirements could cause an increase in our costs to complete contracts.

The costs to meet customer specifications and requirements could result in us having to spend more to design or manufacture products and this could reduce our profit margins on current contracts or those we obtain in the future.

We may incur damages or disruption to our business caused by natural disasters and other factors that may not be covered by insurance.

Several of our facilities, as a result of their locations, could be subject to a catastrophic loss caused by hurricanes, tornadoes, earthquakes, floods, fire, power loss, telecommunication and information systems failure, political unrest or similar events. Our corporate headquarters and facilities located in Florida are particularly susceptible to hurricanes, storms, tornadoes or other natural disasters that could disrupt our operations, delay production and shipments, and result in large expenses to repair or replace the facility or facilities. Should insurance or other risk transfer mechanisms, such as our existing disaster recovery and business continuity plans, be insufficient to recover all costs, we could experience a material adverse effect on our business, financial condition and results of operations.

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We are subject to the risks associated with sales to foreign customers, which could harm our business.

We market our products and services to approximately ~~135~~130 countries, with approximately 3738% of our consolidated net sales in fiscal ~~2024~~2025 derived from sales to foreign customers. We expect that sales to foreign customers will continue to account for a significant portion of our revenues in the foreseeable future. As a result, we are subject to risks of doing business internationally, including the following:

•Fluctuations in currency exchange rates;

•Geopolitical unrest, war, terrorism and other acts of violence;

•Volatility in foreign political, regulatory, and economic environments;

•Ability to obtain required export licenses or approvals;

•Uncertainty of the ability of foreign customers to finance purchases;

•Uncertainties and restrictions concerning the availability of funding credit or guarantees;

•Imposition of taxes, export controls, tariffs, embargoes and other trade restrictions;

•Compliance with a variety of international laws, as well as U.S. laws affecting the activities of U.S. companies abroad such as the U.S. Foreign Corrupt Practices Act; and

•Transportation delays and other supply chain disruptions.

While the impact of these factors is difficult to predict, any one or more of these factors may have a material adverse effect on our business, financial condition and results of operations.

Cybersecurity events or other disruptions of our information technology systems could adversely affect our business.

We rely on information technology systems, some of which are managed by third parties, to process, transmit and store electronic information, and to manage or support a variety of critical business processes and activities. We also collect and store sensitive data, including confidential business information and personal data that are subject to privacy and security laws and regulations. Certain of our businesses that perform work for the U.S. Department of Defense are also required to comply with applicable cybersecurity standards, including the Department of Defense’s Cybersecurity Maturity Model Certification (“CMMC”) program. CMMC requirements may change over time and could impose additional compliance obligations on us and our suppliers, and failure to meet applicable CMMC requirements could affect our ability to receive or perform certain defense-related contracts. We continue to monitor evolving data-privacy requirements and the use of emerging technologies, such as artificial intelligence, and maintain policies intended to promote their secure and responsible use. These systems may be susceptible to damage, disruptions or shutdowns due to attacks by computer hackers, computer viruses, employee error or malfeasance, power outages, hardware failures, telecommunication or utility failures, catastrophes or other unforeseen events. In addition, security breaches of our systems could result in the misappropriation or unauthorized disclosure of confidential information or personal data belonging to us or to our employees, partners, customers or suppliers. Any such event could disrupt our operations, delay production and shipments, result in defective products or services, damage customer relationships and our reputation and result in

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~~Cybersecurity~~legal ~~events~~claims or ~~other~~proceedings ~~disruptions~~that ofcould ~~our~~have ~~information~~a ~~technology~~material ~~systems~~adverse ~~could~~effect ~~adversely~~on ~~affect~~ our business, financial condition and results of operations.

We may not have the administrative, operational or financial resources to continue to grow the company.

We have experienced rapid growth in recent periods and intend to continue to pursue an aggressive growth strategy, both through acquisitions and internal expansion of products and services. Our growth to date has placed, and could continue to place, significant demands on our administrative, operational and financial resources. We may not be able to grow effectively or manage our growth successfully, and the failure to do so could have a material adverse effect on our business, financial condition and results of operations.

Goodwill and other intangible assets represent a significant portion of our total assets, and we may never realize the full value of our intangible assets.

As a result of our acquisitions, goodwill and intangible assets represent a significant portion of our total assets. As of October 31, ~~2024~~2025 and ~~2023~~2024, goodwill and intangible assets, net of amortization, accounted for 6260% and 6462% of our total assets, respectively. We test our goodwill and intangible assets for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. We may not realize the full value of our goodwill and intangible assets, and to the extent that impairment has occurred, we would be required to recognize the impaired portion of such assets inas a non-cash charge to our earnings. An impairment of a significant portion of such assets could have a material adverse effect on our business, financial condition and results of operations.

We are dependent on key personnel and the loss of these key personnel could have a material adverse effect on our success.

Our success substantially depends on the performance, contributions and expertise of our senior management team led by ~~Laurans~~Eric A. Mendelson and Victor H. Mendelson, our ~~Chairman~~Co-Chairmen and Co-Chief Executive Officers, and Carlos L. Macau, Jr., our Chief Financial Officer. Because many of our products are highly engineered, we depend on our experienced, educated and trained team members. Technical employees are also a critical component of our research and product development activities, as well as our ability to continue to re-design sophisticated products of OEMs in order to sell competing replacement parts at substantially lower prices than those manufactured by the OEMs. The loss of the services of any of our executive officers or other key employees or our inability to continue to attract or retain the necessary personnel could have a material adverse effect on our business, financial condition and results of operations.

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Officer, and Eric A. Mendelson and Victor H. Mendelson, our Co-Presidents. Technical employees are also critical to our research and product development, as well as our ability to continue to re-design sophisticated products of OEMs in order to sell competing replacement parts at substantially lower prices than those manufactured by the OEMs. The loss of the services of any of our executive officers or other key employees or our inability to continue to attract or retain the necessary personnel could have a material adverse effect on our business, financial condition and results of operations.

Our executive officers and directors have significant influence over our management and direction.

As of December 1819, ~~2024~~2025, collectively our executive officers and entities controlled by them, the HEICO Savings and Investment Plan (our 401(k) Plan) and members of the Board of Directors beneficially owned approximately 1911% of our outstanding Common Stock and approximately 3% of our outstanding Class A Common Stock. Accordingly, they will be able to substantially influence the election of the Board of Directors and control our business, policies and affairs, including our position with respect to proposed business combinations and attempted takeovers.

Industry and Macroeconomic Risks

Our success is highly dependent on the performance of the aviation industry, which could be impacted by lower demand for commercial air travel or airline fleet changes causing lower demand for our goods and services.

General global industry and economic conditions that affect the aviation industry also affect our business. We are subject to macroeconomic cycles and when recessions occur, we may experience reduced orders, payment delays, supply chain disruptions or other factors as a result of the economic challenges faced by our customers, prospective customers and suppliers.

Furthermore, disruptions within the aviation industry, such as production delays or regulatory challenges affecting major manufacturers, can reduce demand for our products and services and strain our supply chain. Historically, the aviation industry has been subject to downward cycles from time to time which reduce the overall demand for jet engine and aircraft component replacement parts and repair and overhaul services, and such downward cycles result in lower sales and greater credit risk. Demand for commercial air travel can be influenced by airline industry profitability, world trade policies, government-to-government relations, terrorism, disease outbreaks, environmental constraints imposed upon aircraft operations, technological changes, price and other competitive factors. Lower commercial air travel caused by risks arising from public health threats, ~~such as the COVID-19 global pandemic,~~ and their aftermath, airline fleet changes or airline purchasing decisions, could cause lower demand for our goods and services. These global industry and economic conditions may have a material adverse effect on our business, financial condition and results of operations.

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The retirement or prolonged grounding of commercial aircraft could reduce our revenues and the value of any related inventory.

Our Flight Support Group designs and manufactures jet engine and aircraft component replacement parts and also repairs, overhauls and distributes jet engine and aircraft components. If aircraft or engines for which we offer replacement parts or supply repair and overhaul services are retired or grounded for prolonged periods of time and there are fewer aircraft that require these parts or services, our revenues may decline as well as the value of any related inventory.

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Reductions in defense, space or homeland security spending by U.S. and/or foreign customers could reduce our revenues.

In fiscal ~~2024~~2025, approximately 3231% of our net sales were derived from the sale of defense, commercial and defense satellite and spacecraft components, and homeland security products. A decline in defense, space or homeland security budgets or additional restrictions imposed by the U.S. government on sales of products or services to foreign military agencies could lower sales of our products and services.

We are subject to risks arising from public health threats, ~~such~~including asglobal ~~the~~or ~~the~~regional ~~COVID-19~~health ~~global~~emergencies ~~pandemic~~ ("“Health Emergencies"”).

~~Our~~Health ~~results~~Emergencies ofcan ~~operations~~negatively ~~may continue to reflect the adverse~~ impact ~~from the COVID-19 pandemic, including its impact on~~ our supply chain, ~~and~~cause inflationary pressures~~. Health~~ ~~Emergencies~~and pose a risk that we or our employees, customers, suppliers, manufacturers and other commercial partners may be prevented from conducting business activities for an indefinite period of time, including due to the spread of the disease or shutdowns requested or mandated by governmental authorities. The extent to which Health Emergencies may have a material adverse effect on our future business, financial condition and results of operations will depend on many factors that are not within HEICO’s control, including but not limited to, the geographic location and the rate of spread and path of the Health Emergency, available vaccinations and the vaccination rate, and potential supply chain disruptions and inflation, which can impact our key markets.

The extent to which Health Emergencies may have a material adverse effect on our future business, financial condition and results of operations will depend on many factors that are not within HEICO’s control, including but not limited to the path and effect of Health Emergencies, including factors like new variants and vaccination rates, potential supply chain disruptions and inflation, which can impact our key markets.

Regulatory and Legal Risks

We are subject to governmental regulation and our failure to comply with these regulations could cause the government to withdraw, suspend or revoke our authorizations and approvals to do business and could subject us to penalties and sanctions that could harm our business.

Governmental agencies throughout the world, including the FAA, highly regulate the manufacture, repair and overhaul of aircraft parts and accessories. We include, with the replacement parts that we sell to our customers, documentation certifying that each part complies with applicable regulatory requirements and meets applicable standards of airworthiness established by the FAA or the equivalent regulatory agencies in other countries. In addition, our repair and overhaul operations are subject to certification pursuant to regulations established by the FAA. Specific regulations vary from country to country, although compliance with FAA requirements generally satisfies regulatory requirements in other countries. The revocation or suspension of any of our material authorizations or approvals would have an adverse effect on our business, financial condition and results of operations. New and more stringent government regulations, if adopted and enacted, could have an adverse effect on our business, financial condition and results of operations.

Also, our operations involve products and technologies subject to U.S. and international trade control laws, including the International Traffic in Arms Regulations (ITAR), the Export Administration Regulations (EAR), and economic sanctions administered by the Office of

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~~established~~Foreign byAssets ~~the~~Control ~~FAA or the equivalent regulatory agencies in other countries~~(OFAC). InThese ~~addition,~~laws ~~our~~regulate ~~repair and overhaul operations are subject to certification pursuant to regulations established by~~ the ~~FAA. Specific~~export, ~~regulations~~re-export, ~~vary~~and ~~from~~transfer ~~country~~of tocertain ~~country~~items, ~~although~~technical ~~compliance~~data, ~~with~~software, ~~FAA~~and ~~requirements~~services, ~~generally~~and ~~satisfies~~may ~~regulatory~~require ~~requirements~~us into ~~other~~obtain ~~countries. The~~licenses ~~revocation~~ or ~~suspension~~other ofgovernmental ~~any of our material~~ authorizations. If orwe ~~approvals~~are ~~would~~unable ~~have~~to ancomply ~~adverse~~with ~~effect~~the onapplicable ~~our~~trade ~~business,~~laws ~~financial condition~~ and ~~results of operations. New and more stringent government~~ regulations, ifit ~~adopted and enacted,~~ could have ana material adverse effect on our ~~business,~~consolidated financial ~~condition~~statements and ~~results~~competitive ~~of operations~~positions. ~~In addition~~Additionally, ~~certain product sales to foreign countries of our Electronic Technologies Group and Flight Support Group require export approval or licensing from~~ the ~~United~~denial ~~States ("U.S.") government. Denial~~ of export licenses could reduce our sales to ~~those~~certain countries and could have a material adverse effect on our business.

Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Securities and Exchange Commission promulgated disclosure requirements regarding the use of certain minerals (tantalum, tin, gold and tungsten), known as conflict minerals, which are mined from the Democratic Republic of the Congo or another Covered Country. There are costs associated with complying with the disclosure requirements, such as costs related to determining the source of certain minerals used in our products, as well as costs of possible changes to products, processes, or sources of supply as a consequence of such verification activities. Given the complexity of our supply chain, we may not be able to ascertain the origin of these minerals used in our products in a timely manner, which could cause some of our customers to disqualify us as a supplier to the extent we are unable to certify our products are conflict mineral free. Additionally, the rule could affect sourcing at competitive prices and availability in sufficient quantities of such minerals used in our manufacturing processes for certain products.

Also, in foreign countries in which we have operations or business, a risk exists that our associates, contractors or agents could, in contravention of our policies and compliance programs, engage in business practices prohibited by U.S. laws and regulations applicable to us, such as the Foreign Corrupt Practices Act ("FCPA"), or the laws and regulations of other countries, such as the United Kingdom Bribery Act. Additionally, we are subject to regulations such as the Canadian Forced and Child Labour Act, which prohibits the importation of goods produced wholly or in part by forced or child labor. Any such violations could have a material adverse effect on our business.

Tax changes could affect our effective tax rate and future profitability.

We file income tax returns in the U.S. federal jurisdiction, multiple state jurisdictions and certain jurisdictions outside the U.S. In fiscal ~~2024~~2025, our effective tax rate was 1716.56%. Our future effective tax rate may be adversely affected by a number of factors, including the following:

•Changes in statutory tax rates in any of the various jurisdictions where we file tax returns;

•Changes in available tax credits or ~~tax~~ deductions;

•Changes in tax laws or ~~the~~their interpretation, ofincluding ~~such~~amendments, ~~tax~~technical ~~laws~~corrections, ~~including~~and ~~interpretations~~guidance related to the Tax Cuts and Jobs Act as well as to H.R.1, ~~amendments~~commonly referred to as the One Big Beautiful Bill Act (the “Act”). The Act became law on July 4, 2025 and ~~technical~~introduced ~~corrections~~significant changes to U.S. tax law. See Note 7, Income Taxes, of the ~~Tax~~Notes ~~Cuts~~to Consolidated Financial Statements for further information regarding certain provisions of the Act. The Act has multiple effective dates and ~~Jobs~~certain provisions became effective in fiscal 2025 while others will be phased in through fiscal 2028. The Act; did not have a significant impact on our fiscal 2025 consolidated financial statements and we

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will continue to evaluate its potential impact on our future consolidated financial statements;

•Changes to the accounting for income taxes in accordance with generally accepted accounting principles;

•The amount of net income attributable to noncontrolling interests in our subsidiaries structured as partnerships;

•Changes in the mix of earnings in jurisdictions with differing statutory tax rates;

•Adjustments to estimated taxes upon finalization of various tax returns;

•Resolution of issues arising from tax audits with various tax authorities;

•The reversal of any previously ~~experienced~~recognized tax-exempt unrealized gains in the cash surrender values of life insurance policies related to the HEICO Corporation Leadership Compensation Plan, a nonqualified deferred compensation plan; and

•The Organization offor Economic ~~Cooperation~~Co-operation and Development’s (“OECD”) ~~has~~global ~~issued~~minimum tax framework (“Pillar Two”), ~~model~~which ~~rules~~establishes ~~to ensure large corporations pay~~ a ~~global~~15% minimum effective tax ofrate ~~15%,~~for ~~which~~large ~~will~~multinational ~~begin~~enterprises, tobecame be effective for our operations in fiscal 2025. The ~~OECD~~adoption ~~has issued administrative guidance and safe harbor rules around the implementation~~ of Pillar Two~~. We~~ ~~currently~~did do not ~~expect Pillar Two will~~ have a significant impact on our fiscal 2025 consolidated financial statements,. We ~~but~~ will continue to monitor the potential impact of future legislation and guidance and as more jurisdictions in which we conduct business implement Pillar Two legislation.

Any significant increase in our future effective tax rates could have a material adverse effect on net income for future periods.

We may incur product liability claims that are not fully insured and such insurance may not be available at commercially reasonable rates.

Our jet engine and aircraft component replacement parts and repair and overhaul services expose our business to potential liabilities for personal injury or death as a result of the failure of an aircraft component that we have designed, manufactured or serviced. While we maintain liability insurance to protect us from future product liability claims, an uninsured or partially insured claim, or a claim for which third-party indemnification is not available, could have a material adverse effect on our business, financial condition and results of operations. Additionally, our customers typically require us to maintain substantial insurance coverage at commercially reasonable rates and our inability to obtain insurance coverage at commercially reasonable rates could have a material adverse effect on our business.

We may incur environmental liabilities and these liabilities may not be covered by insurance.

Our operations and facilities are subject to a number of federal, state and local environmental laws and regulations, which govern, among other things, the discharge of hazardous materials into the air and water as well as the handling, storage and disposal of hazardous materials. ~~Pursuant~~We tomonitor ~~various~~evolving environmental ~~laws,~~and aclimate-related ~~current~~regulations ~~or previous owner or operator of real property may be liable~~ for ~~the~~potential ~~costs~~impact ofon ~~removal~~our business or ~~remediation~~results of ~~hazardous materials~~operations. ~~Environmental~~Pursuant ~~laws~~to ~~typically~~various ~~impose~~environmental ~~liability~~laws, ~~whether~~a current or ~~not~~previous ~~the~~ owner or operator ~~knew~~ of, orreal ~~was~~property ~~responsible~~may be liable for, the ~~presence~~costs of ~~hazardous materials in the environment. Although management believes that our operations and facilities are in material compliance with~~

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removal or remediation of hazardous materials. Environmental laws typically impose liability whether or not the owner or operator knew of, or was responsible for, the presence of hazardous materials in the environment. Although management believes that our operations and facilities are in material compliance with environmental laws and regulations, future changes in them or interpretations thereof or the nature of our operations may require us to make significant additional capital expenditures to ensure compliance in the future.

We carry limited specific environmental insurance, thus, losses could occur for uninsurable or uninsured risks or in amounts in excess of existing insurance coverage. The occurrence of an event that is not covered in full or in part by insurance could have a material adverse effect on our business, financial condition and results of operations.

Item 1B. UNRESOLVED STAFF COMMENTS

None.

Item 1C. CYBERSECURITY

Overview

The Company prioritizes cybersecurity as a strategic pillar integral to its business strategy, risk management, and governance frameworks. The Board of Directors and executive management play an active role in evaluating the effectiveness of our cybersecurity policies, practices, and procedures. Regular updates are provided by the Chief Information Officer to ensure cybersecurity risks are continuously monitored and addressed across all business functions. Our cybersecurity program incorporates policies, procedures, systems, and controls designed to safeguard the accessibility, confidentiality, and integrity of our data and systems. These processes are shaped by industry trends, and the evolving cybersecurity landscape.

Cybersecurity Risk Management and Strategy

Our cybersecurity program is an integral part of our overall risk management framework and is aligned with recognized industry standards, such as the National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF). The cybersecurity program is designed to identify, detect, protect against, respond to, and recover from cyber threats. Our program safeguards the confidentiality, integrity, and availability of our systems and data through a comprehensive and multi-layered approach.

We deploy robust controls, including firewalls, anti-malware systems, intrusion detection and prevention, encryption, and access controls. These measures are supplemented by continuous monitoring, vulnerability assessments, and penetration testing conducted both internally and by third-party assessors. Insights from these assessments inform the enhancement of our security controls and help us mitigate emerging threats effectively. We also actively engage with key consultants as part of our continuing efforts to evaluate and enhance the effectiveness of our cybersecurity program.

We proactively monitor networks for suspicious activity and collaborate with governmental and industry partners to stay informed on emerging cybersecurity risks. We also

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We proactively monitor networks for suspicious activity and collaborate with governmental and industry partners to stay informed on emerging cybersecurity risks. We also emphasize a culture of vigilance through regular employee training that includes phishing awareness, malware prevention, and reporting protocols.

Governance and Oversight

Our governance and oversight framework for cybersecurity risks operates at multiple levels within the organization. The Board of Directors has final oversight responsibility for cybersecurity-related matters and receives regular updates from the Chief Information Officer and senior management on the status of the cybersecurity program, vulnerability assessments, strategic initiatives, and any significant incident response activities.

The Chief Information Officer has over 2728 years of experience in cybersecurity and is responsible for designing and implementing the organization's cybersecurity strategy. The cybersecurity program and the Information Security Team are led by the Senior IT Director, who reports to the Chief Information Officer. The Senior IT Director has over 2021 years of experience in cybersecurity. The Information Security Team is responsible for security operations, cybersecurity monitoring, application security audits, and responding to incidents through a structured Incident Response Plan.

Cybersecurity Risks and Incidents

We have experienced cybersecurity incidents in the ordinary course of business and recognize that such incidents are an inherent risk to any organization. While prior incidents have not materially impacted our business strategy, financial condition, or results of operations, we remain vigilant in anticipating and mitigating future threats.

Our cybersecurity program is designed to address and minimize the risks posed by evolving threats. However, no system can completely eliminate the possibility of a significant cybersecurity incident. Therefore, we continuously assess and enhance our cybersecurity measures to adapt to the changing threat landscape and ensure organizational resilience.

For more information ~~about~~regarding the potential impact of cybersecurity risks, please refer to the risk factor entitled “Cybersecurity events or other disruptions of our information technology systems could adversely affect our business” in Item 1A. Risk Factors.

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Item 2. PROPERTIES

We own or lease a number of facilities, which are utilized by our Flight Support Group (“FSG”), Electronic Technologies Group (“ETG”), and corporate offices. As of October 31, ~~2024~~2025, all of the facilities listed below were in good operating condition, well maintained and in regular use. We believe that our existing facilities are sufficient to meet our operational needs for the foreseeable future. Summary information on the facilities utilized within the FSG, ETG and our corporate offices to support their principal operating activities is as follows:

Square Footage

Location

Leased

Owned

Description

Flight Support Group

United States facilities (18 states)

1,580,000

233,000

Manufacturing, engineering and distribution facilities, and corporate headquarters

United States facilities (19 states)

1,582,000

280,000

Manufacturing, engineering and distribution facilities, and corporate headquarters

United States facilities (10 states)

~~652~~648,000

127,000

Repair and overhaul facilities

International facilities (10 countries) - France, Germany, India, Laos, Netherlands, Singapore, Thailand, Turkey, United Arab Emirates and United Kingdom

~~139~~136,000

173,000

Manufacturing, engineering and distribution facilities, and sales offices

Electronic Technologies Group

United States facilities (19 states)

~~849~~906,000

~~634~~759,000

Manufacturing and engineering facilities

International facilities (7 countries) - Canada, France, India, Morocco, South Korea, United Kingdom and Vietnam

~~416~~458,000

~~346~~493,000

Manufacturing and engineering facilities

Corporate

United States facilities (1 state)

—

10,000 (1)

Administrative offices

(1)Represents the square footage of our corporate offices in Miami, Florida. The square footage of our corporate headquarters in Hollywood, Florida is included above within Square Footage-Owned of the caption “United States facilities (1819 states)” under Flight Support Group.

Item 3. LEGAL PROCEEDINGS

We are involved in various legal actions arising in the normal course of business. Based upon our and our legal counsel’s evaluations of any claims or assessments, management is of the opinion that the outcome of these matters will not have a material adverse effect on our results of operations, financial position or cash flows.

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Item 4. MINE SAFETY DISCLOSURES

Not applicable.

PART II

Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Our Class A Common Stock and Common Stock are listed and traded on the New York Stock Exchange (“NYSE”) under the symbols “HEI.A” and “HEI,” respectively.

As of December 1819, ~~2024~~2025, there were ~~247~~234 holders of record of our Common Stock and ~~280~~259 holders of record of our Class A Common Stock.

Performance Graphs

The following graph and table compare the total return on $100 invested in HEICO Common Stock and HEICO Class A Common Stock with the total return on $100 invested in the NYSE Composite Index and the Dow Jones U.S. Aerospace Index for the five-year period from October 31, ~~2019~~2020 through October 31, ~~2024~~2025. The NYSE Composite Index measures the performance of all common stocks listed on the NYSE. The Dow Jones U.S. Aerospace Index is comprised of large companies which make aircraft, major weapons, radar and other defense equipment and systems as well as providers of satellites and spacecraft used for defense purposes. The total returns include the reinvestment of cash dividends.

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	Cumulative Total Return as of October 31,
	2019	2020	2021	2022	2023	2024
	2020	2021	2022	2023	2024	2025
HEICO Common Stock	$100.00	$85132.3086	$~~113~~155.3322	$~~132~~151.4036	$~~129~~234.1129	$~~199~~304.8520
HEICO Class A Common Stock	100.00	98134.3261	~~132~~136.3556	~~134~~136.2758	~~134~~206.2955	~~203~~266.0978
NYSE Composite Index	100.00	94136.3691	~~129~~118.1965	~~111~~120.9603	~~113~~154.2779	~~146~~172.0665
Dow Jones U.S. Aerospace Index	100.00	59152.9431	91140.3093	84154.4808	92211.3688	~~127~~329.0122

The following graph and table compare the total return on $100 invested in HEICO Common Stock since October 31, 1990 using the same indices shown on the five-year performance graph above. October 31, 1990 was the end of the first fiscal year following the date the current executive management team assumed leadership of the Company. No Class A Common Stock was outstanding as of October 31, 1990. As with the five-year performance graph, the total returns include the reinvestment of cash dividends.

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	Cumulative Total Return as of October 31,
	1990	1991	1992	1993	1994
HEICO Common Stock	$100.00	$141.49	$158.35	$173.88	$123.41
NYSE Composite Index	100.00	130.31	138.76	156.09	155.68
Dow Jones U.S. Aerospace Index	100.00	130.67	122.00	158.36	176.11


	1995	1996	1997	1998	1999
HEICO Common Stock	$263.25	$430.02	$1,008.31	$1,448.99	$1,051.61
NYSE Composite Index	186.32	225.37	289.55	326.98	376.40
Dow Jones U.S. Aerospace Index	252.00	341.65	376.36	378.66	295.99


	2000	2001	2002	2003	2004
HEICO Common Stock	$809.50	$1,045.86	$670.39	$1,067.42	$1,366.57
NYSE Composite Index	400.81	328.78	284.59	339.15	380.91
Dow Jones U.S. Aerospace Index	418.32	333.32	343.88	393.19	478.49


	2005	2006	2007	2008	2009
HEICO Common Stock	$1,674.40	$2,846.48	$4,208.54	$2,872.01	$2,984.13
NYSE Composite Index	423.05	499.42	586.87	344.96	383.57
Dow Jones U.S. Aerospace Index	579.77	757.97	1,000.84	602.66	678.00


	2010	2011	2012	2013	2014
HEICO Common Stock	$4,722.20	$6,557.88	$5,900.20	$10,457.14	$11,416.51
NYSE Composite Index	427.61	430.46	467.91	569.69	617.23
Dow Jones U.S. Aerospace Index	926.75	995.11	1,070.15	1,645.24	1,687.41

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	Cumulative Total Return as of October 31,
	2015	2016	2017	2018	2019
HEICO Common Stock	$10,776.88	$14,652.37	$23,994.03	$33,876.95	$49,277.28
NYSE Composite Index	595.37	596.57	702.38	694.81	749.66
Dow Jones U.S. Aerospace Index	1,766.94	1,878.10	2,807.42	3,373.52	3,725.15


	2020	2021	2022	2023	2024
HEICO Common Stock	$44,877.75	$60,000.11	$65,650.39	$64,751.68	$99,188.00
NYSE Composite Index	707.40	968.47	839.31	849.11	1,094.96
Dow Jones U.S. Aerospace Index	2,233.00	3,400.98	3,147.04	3,440.63	4,731.25


						2025
HEICO Common Stock						$128,481.31
NYSE Composite Index						1,221.35
Dow Jones U.S. Aerospace Index						7,351.46

Issuer Purchases of Equity Securities

There were no issuer purchases of our equity securities during the fourth quarter of fiscal ~~2024~~2025.

Recent Sales of Unregistered Securities

~~There~~On ~~were~~January no31, ~~unregistered~~2025, ~~sales~~we acquired 90% of the membership interests of Millennium International, LLC ("Millennium"). The purchase price of this acquisition was principally paid in cash using proceeds from our ~~equity~~revolving ~~securities~~credit ~~during~~facility ~~fiscal~~and ~~2024~~cash provided by operating activities, as well as through the issuance of 53,186 shares of HEICO Class A Common Stock. The HEICO Class A Common Stock issued in connection with the acquisition of Millennium was not registered under the Securities Act of 1933, in accordance with Section 4(a)(2) and Rule 506(b) of Regulation D thereunder, as a transaction by an issuer not involving any public offering. See Note 2, Acquisitions, of the Notes to Consolidated Financial Statements for additional information.

Dividend Policy

We have historically paid semi-annual cash dividends on both our Class A Common Stock and Common Stock. In July ~~2024~~2025, we paid our ~~92nd~~94th consecutive semi-annual cash dividend since 1979 of $.1112 per share, which represented a 109% increase over the semiannual cash dividend of $.1011 per share paid in January ~~2024~~2025. In December ~~2024~~2025, our Board of Directors declared a semi-annual cash dividend of $.1112 per share payable in January ~~2025~~2026.

Our Board of Directors will continue to review our dividend policy and will regularly evaluate whether dividends should be paid in cash or stock, as well as what amounts should be paid. Our ability to pay dividends could be affected by future business performance, liquidity, ~~capital needs, alternative investment opportunities and loan covenants under our revolving credit facility.~~

Item 6. [Reserved]

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capital needs, alternative investment opportunities and loan covenants under our revolving credit facility.

Item 6. [Reserved]

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

Our business is comprised of two operating segments, the Flight Support Group (“FSG”) and the Electronic Technologies Group (“ETG”).

The FSG consists of HEICO Aerospace Holdings Corp. (“HEICO Aerospace”), which is 80% owned, and HEICO Flight Support Corp., which is wholly owned, and their collective subsidiaries, which primarily:

•Designs, Manufactures, Repairs, Overhauls and Distributes Jet Engine and Aircraft Component Replacement Parts. The FSG designs and manufactures jet engine and aircraft component replacement parts, which are approved by the Federal Aviation Administration (“FAA”). In addition, the FSG repairs, overhauls and distributes jet engine and aircraft components, avionics and instruments for domestic and foreign commercial air carriers and aircraft repair companies as well as military and business aircraft operators. The FSG also manufactures and sells specialty parts as a subcontractor for aerospace and industrial original equipment manufacturers and the United States ("U.S.") government. Additionally, the FSG is a leading supplier, distributor, and integrator of military aircraft parts and support services primarily to the U.S. Department of Defense, defense prime contractors, and foreign military organizations allied with the U.S. Further, the FSG is a leading manufacturer of advanced niche components and complex composite assemblies for commercial aviation, defense and space applications. The FSG also engineers, designs and manufactures thermal insulation blankets and parts as well as removable/reusable insulation systems for aerospace, defense, commercial and industrial applications; manufactures expanded foil mesh for lightning strike protection in fixed and rotary wing aircraft; distributes aviation electrical interconnect products and electromechanical parts; overhauls industrial pumps, motors, and other hydraulic units with a focus on the support of legacy systems for the U.S. Navy; performs tight-tolerance machining, brazing, fabricating and welding services for aerospace, defense and other industrial applications; and manufactures emergency descent devices ("EDDs") and personnel and cargo parachute products.

The ETG consists of HEICO Electronic Technologies Corp. (“HEICO Electronic”) and its subsidiaries, which primarily:

•Designs and Manufactures Electronic, Microwave, Electro-Optical and Other Power Equipment, High-Speed Interface Products, High Voltage Interconnection Devices, EMI and RFI Shielding and Filters, High Voltage Advanced Power Electronics, Power Conversion Products, Underwater Locator Beacons, Memory Products, Self-Sealing Auxiliary Fuel Systems, Active Antenna Systems, Airborne Antennas, TSCM Equipment and High Reliability ("Hi-Rel") Electronic Components. The ETG collectively designs, manufactures and sells various types of electronic, data and microwave, and electro-optical

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and RFI Shielding and Filters, High Voltage Advanced Power Electronics, Power Conversion Products, Underwater Locator Beacons, Memory Products, Self-Sealing Auxiliary Fuel Systems, Active Antenna Systems, Airborne Antennas, TSCM Equipment, High Reliability ("Hi-Rel") Electronic Components, In-Flight Entertainment Products, and Cockpit displays and Other Avionics Components. The ETG collectively designs, manufactures and sells various types of electronic, data and microwave, and electro-optical products, including infrared simulation and test equipment, laser rangefinder receivers, electrical power supplies, back-up power supplies, power conversion products, underwater locator beacons, emergency locator transmission beacons, flight deck annunciators, panels, ~~and~~ indicators, electromagnetic and radio frequency interference shielding and filters, high power capacitor charging power supplies, amplifiers, traveling wave tube amplifiers, photodetectors, amplifier modules, microwave power modules, flash lamp drivers, laser diode drivers, arc lamp power supplies, custom power supply designs, cable assemblies, high voltage power supplies, high voltage interconnection devices and wire, high voltage energy generators, high frequency power delivery systems; memory products, including three-dimensional microelectronic and stacked memory, static random-access memory (SRAM) and electronically erasable programmable read-only memory (EEPROM); harsh environment electronic connectors and other interconnect products, RF and microwave amplifiers, transmitters, and receivers and integrated assemblies, sub-assemblies and components; RF sources, detectors and controllers, wireless cabin control systems, solid state power distribution and management systems, proprietary in-cabin power and entertainment components and subsystems, cockpit displays and other avionics components, crashworthy and ballistically self-sealing auxiliary fuel systems, nuclear radiation detectors, communications and electronic intercept receivers and tuners, fuel level sensing systems, high-speed interface products that link devices, high performance active antenna systems and airborne antennas for commercial and military aircraft, precision guided munitions, other defense applications and commercial uses; silicone material for a variety of demanding applications; precision power analog monolithic, hybrid and open frame components; high-reliability ceramic-to-metal feedthroughs and connectors, technical surveillance countermeasures (TSCM) equipment to detect devices used for espionage and information theft; rugged small-form factor embedded computing solutions; custom high power filters and filter assemblies; test sockets and adapters for both engineering and production use of semiconductor devices,; ~~and~~ radiation assurance services and products; and Hi-Rel, complex, passive electronic components and rotary joint assemblies for mostly aerospace and defense applications, in addition to other high-end applications, such as medical and energy uses including emerging "clean energy" and electrification applications.

Additionally, our results of operations in fiscal ~~2024~~2025 have been affected by recent acquisitions as further detailed in Note 2, Acquisitions, of the Notes to Consolidated Financial Statements.

Presentation of Results of Operations and Liquidity and Capital Resources

The following discussion and analysis of our Results of Operations and Liquidity and Capital Resources includes a comparison of fiscal 2024 to fiscal 2023. A similar discussion and analysis that compares fiscal 2023 to fiscal 2022 may be found in Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of our Form 10-K for the fiscal year ended October 31, 2023.

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Presentation of Results of Operations and Liquidity and Capital Resources

The following discussion and analysis of our Results of Operations and Liquidity and Capital Resources includes a comparison of fiscal 2025 to fiscal 2024. A similar discussion and analysis that compares fiscal 2024 to fiscal 2023 may be found in Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of our Form 10-K for the fiscal year ended October 31, 2024.

Results of Operations

The following table sets forth the results of our operations, net sales and operating income by segment and the percentage of net sales represented by the respective items in our Consolidated Statements of Operations (in thousands):

	Year ended October 31,
	2024		2023
	2025		2024
Net sales	$34,~~857~~485,~~669~~044		$23,~~968~~857,~~105~~669
Cost of sales	2,~~355~~698,~~943~~580		12,~~814~~355,~~617~~943
Selling, general and administrative expenses	~~677~~767,~~271~~466		~~528~~677,~~149~~271
Total operating costs and expenses	3,~~033~~466,~~214~~046		23,~~342~~033,~~766~~214
Operating income	$~~824~~1,~~455~~018,998		$~~625~~824,~~339~~455
Net sales by segment:
Net sales by segment and intersegment:
Flight Support Group	$23,~~639~~117,~~354~~277		$12,~~770~~639,~~185~~354
Electronic Technologies Group	1,~~263~~413,~~626~~120		1,~~225~~263,~~222~~626
Intersegment sales	(45,~~311~~353)		(2745,~~302~~311)
	$3,857,669		$2,968,105
	$4,485,044		$3,857,669
Operating income by segment:
Operating income by segment and corporate and other:
Flight Support Group	$~~593~~750,~~074~~395		$~~387~~593,~~297~~074
Electronic Technologies Group	~~288~~324,~~193~~952		~~285~~288,~~053~~193
Other, primarily corporate	(56,~~812~~349)		(4756,~~011~~812)
	$824,455		$625,339
	$1,018,998		$824,455
Net sales	100.0	%	100.0	%
Gross profit	3839.98	%	38.9	%
Selling, general and administrative expenses	17.61	%	17.86	%
Operating income	2122.47	%	21.14	%
Interest expense	(32.9	%)	(23.59	%)
Other income	.1	%	.1	%
Income tax expense	3.13	%	3.71	%
Net income attributable to noncontrolling interests	1.2	%	1.42	%
Net income attributable to HEICO	1315.34	%	13.63	%

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Comparison of Fiscal ~~2024~~2025 to Fiscal ~~2023~~2024

Net Sales

Our consolidated net sales in fiscal ~~2024~~2025 increased by 3016% to a record $34,~~857~~485.70 million, up from net sales of $23,~~968~~857.17 million in fiscal ~~2023~~2024. The increase in consolidated net sales principally reflects an increase of $~~869~~477.29 million (aan 4918% increase) to a record $23,~~639~~117.43 million in net sales of the FSG and an increase of $38149.45 million (a 312% increase) to a record $1,~~263~~413.61 million in net sales of the ETG. The net sales increase in the FSG reflects strong organic growth of 14% and net sales of $~~643~~110.56 million contributed by fiscal ~~2023~~2025 and 2024 acquisitions ~~as well as strong organic growth of 13%~~. The FSG's organic net sales growth reflects increased demand within its aftermarket replacement parts, repair and overhaul parts and services, and specialty products product lines resulting in net sales increases of $~~172~~263.19 million, $3367.58 million and $2035.16 million, respectively. The net sales increase in the ETG ~~includes~~reflects ~~$40.7~~strong ~~million~~organic ~~contributed~~growth byof ~~fiscal~~7% ~~2023~~ and ~~2024~~net ~~acquisitions,~~sales ~~partially~~of $63.9 ~~offset~~million contributed by afiscal 2%2025 ~~organic~~and ~~net~~2024 ~~sales decline~~acquisitions. The ETG's organic net sales ~~decline~~growth is mainly attributable to ~~decreased~~increased demand for its defense, space, other electronics, and ~~medical~~aerospace products resulting in net sales ~~decreases~~increases of $4529.06 million, $28.4 million, $20.6 million, and $1416.02 million, respectively, partially offset by ~~increased~~decreased demand for its ~~defense~~medical ~~and aerospace~~ products resulting in a net sales ~~increases~~decrease of $249.4 million ~~and $12~~.~~9 million, respectively.~~ Sales price changes were not a significant contributing factor to the change in net sales of the FSG and ETG in fiscal ~~2024~~2025.

Our net sales in fiscal ~~2024~~2025 and ~~2023~~2024 by market consisted of approximately 5658% and 4856% from the commercial aviation industry, respectively, 3231% and 3532% from the defense and space industries, respectively, and 1211% and 1712% from other industrial markets including electronics, medical and telecommunications, respectively.

Gross Profit and Operating Expenses

Our consolidated gross profit margin ~~was~~improved 38to 39.98% in ~~both~~ fiscal ~~2024~~2025, ~~and~~up ~~2023~~from ~~and~~38.9% ~~reflects~~in ~~increases~~fiscal of2024, principally reflecting a 1.5% increase in ~~both~~ the FSG’'s ~~and ETG’s~~ gross profit margin. The increase in the FSG's gross profit margin principally reflects the previously mentioned ~~higher~~ net sales growth within ~~our~~its ~~aftermarket replacement parts and~~ repair and overhaul parts and services product ~~lines. The~~line ~~increase~~and ina ~~the~~more ~~ETG's~~favorable ~~gross~~product ~~profit~~mix ~~margin~~within ~~principally reflects~~ the ~~previously~~specialty ~~mentioned higher net sales of defense and aerospace~~ products, ~~partially~~product ~~offset by the previously mentioned decrease in net sales of other electronics and medical products~~line. Total new product research and development expenses included within our consolidated cost of sales were $~~111~~120.39 million in fiscal ~~2024~~2025, up from $95111.83 million in fiscal ~~2023~~2024.

Our consolidated selling, general and administrative ("SG&A") expenses were $~~677~~767.35 million in fiscal ~~2024~~2025, as compared to $~~528~~677.13 million in fiscal ~~2023~~2024. The increase in consolidated SG&A expenses principally reflects $~~118~~31.40 million attributable to our fiscal ~~2023~~2025 and 2024 acquisitions, ~~inclusive of~~ $3222.98 million ofdue ~~intangible~~to ~~asset~~changes ~~amortization expense. Additionally, the increase~~ in ~~consolidated SG&A expenses includes costs incurred to support~~ the ~~previously~~estimated ~~mentioned~~fair ~~net~~value ~~sales growth resulting in increases~~ of ~~$23.7~~accrued ~~million~~contingent ~~and~~consideration, $1017.25 million inof ~~other~~higher ~~general and administrative expenses and~~ other selling expenses, ~~respectively,~~and a $915.16 million increase in share-based compensation expense.

Our consolidated SG&A expenses as a percentage of net sales improved to 17.1% in fiscal 2025, down from 17.6% in fiscal 2024. The decrease in consolidated SG&A expenses as a

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~~million~~percentage ~~prior~~of ~~year~~net ~~impact~~sales ~~from~~principally ~~the~~reflects ~~amendment~~efficiencies ~~and~~realized ~~termination~~from ofthe apreviously ~~contingent~~mentioned ~~consideration~~net ~~agreement~~sales ~~pertaining~~growth, topartially aoffset ~~fiscal~~by ~~2021 acquisition and~~ a $7.65% ~~million~~impact ~~increase~~from inthe ~~performance-based~~previously ~~compensation~~mentioned ~~expense,~~changes ~~partially~~in ~~offset~~the byestimated afair ~~$19.8~~value ~~million~~of ~~decrease~~accrued incontingent ~~acquisition costs~~consideration.

Our consolidated SG&A expenses as a percentage of net sales decreased to 17.6% in fiscal 2024, down from 17.8% in fiscal 2023. The decrease in consolidated SG&A expenses as a percentage of net sales principally reflects a .7% impact from the previously mentioned lower acquisition costs, partially offset by a .3% impact from both the previously mentioned higher intangible asset amortization expense and amendment and termination of a contingent consideration agreement.

Operating Income

Our consolidated operating income increased by 3224% to a record $~~824~~1,019.50 million in fiscal ~~2024~~2025, up from $~~625~~824.35 million in fiscal ~~2023~~2024. The increase in consolidated operating income principally reflects a $~~205~~157.83 million increase (a 5327% increase) to a record $~~593~~750.14 million in operating income of the FSG and a $336.18 million increase (a 113% increase) to a record $~~288~~325.20 million in operating income of the ETG. The increase in operating income of the FSG principally reflects the previously mentioned net sales growth, ~~a $15.0 million decrease in acquisition costs and the previously mentioned~~ improved gross profit margin, ~~partially~~and ~~offset~~SG&A ~~by a $36.6 million increase in intangible asset amortization~~ expense, aefficiencies ~~$15.9~~realized ~~million increase in performance-based compensation expense and a $9.1 million prior year impact~~ from the ~~previously~~net ~~mentioned~~sales ~~termination of a contingent consideration agreement~~growth. The increase in operating income of the ETG principally reflects the previously mentioned net sales growth and ~~improved~~SG&A ~~gross~~expense ~~profit~~efficiencies ~~margin,~~realized ~~partially~~from ~~offset~~the bynet asales ~~lower level of SG&A efficiencies~~growth.

Our consolidated operating income as a percentage of net sales improved to 2122.47% in fiscal ~~2024~~2025, up from 21.14% in fiscal ~~2023~~2024. The increase in consolidated operating income as a percentage of net sales principally reflects an increase in the FSG’s operating income as a percentage of net sales to 2224.51% in fiscal ~~2024~~2025, up from 2122.95% in fiscal ~~2023~~2024, ~~partially~~and ~~offset~~an ~~by a~~increase ~~decrease~~ in the ETG's operating income as a percentage of net sales to 2223.80% in fiscal ~~2024~~2025, asup ~~compared~~from ~~to 23~~22.38% in fiscal ~~2023~~2024. The increase in the FSG’s operating income as a percentage of net sales principally reflects ~~a .9% impact from lower acquisition costs, a .5% impact from~~ the previously mentioned improved gross profit margin ~~and a~~ .4% impact from lower performance-based compensation expense as a percentage of net sales, partially offset by a .7% impact from the previously mentioned higher intangible asset amortization expense and a .5% prior year impact from the previously mentioned amendment and termination of a contingent consideration agreement. The decrease in the ETG's operating income as a percentage of net sales principally reflects a 1.0% impact from an increase in SG&A expenses as a percentage of net sales principally reflecting the previously mentioned lower level of efficiencies, which was partially offset by the previously mentioned improved gross profit margin.

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Interest Expense

Interest expense ~~increased~~decreased to $~~149~~129.39 million in fiscal ~~2024~~2025, asdown ~~compared~~from to $73149.03 million in fiscal ~~2023~~2024. The ~~increase~~decrease in interest expense was principally due to ana ~~increase~~lower inweighted-average ~~the~~interest ~~amount~~rate ofon borrowings outstanding ~~debt~~under ~~related~~our torevolving ~~fiscal~~credit ~~2023~~facility ~~acquisitions~~and a decrease in the amount of outstanding debt.

Other Income

Other income in fiscal ~~2024~~2025 and ~~2023~~2024 was not material.

Income Tax Expense

Our effective tax rate decreased to 1716.56% in fiscal ~~2024~~2025, down from 2017.05% in fiscal ~~2023~~2024. The decrease in our effective tax rate principally reflects a larger tax benefit from stock option exercises recognized in the first quarter of fiscal ~~2024~~2025. We recognized a discrete tax benefit from stock option exercises in ~~both~~ the first quarter of fiscal ~~2024~~2025 and ~~2023~~2024 of $1327.62 million and $613.26 million, respectively. Additionally, the decrease in our effective tax rate reflects a larger favorable impact from tax-exempt unrealized gains in the cash surrender values of life insurance policies related to the HEICO Leadership Compensation Plan (the “LCP”) in fiscal 2024, net of the nondeductible portion of the related gains in the LCP accounts of certain executive officers, as well as increased foreign-derived intangible income, which is subject to a lower tax rate.

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Net Income Attributable to Noncontrolling Interests

Net income attributable to noncontrolling interests relates to the 20% noncontrolling interest held by Lufthansa Technik AG in HEICO Aerospace Holdings Corp. and the noncontrolling interests held by others in certain subsidiaries of the FSG and ETG. Net income attributable to noncontrolling interests was $4555.02 million in fiscal ~~2024~~2025, as compared to $4045.80 million in fiscal ~~2023~~2024. The increase in net income attributable to noncontrolling interests principally reflects improved operating results of certain subsidiaries of the FSG and ETG in which noncontrolling interests are held.

Net Income Attributable to HEICO

Net income attributable to HEICO increased by 2734% to a record $~~514~~690.14 million, or $34.6790 per diluted share, in fiscal ~~2024~~2025, up from $~~403~~514.61 million, or $23.9167 per diluted share, in fiscal ~~2023~~2024, principally reflecting the previously mentioned higher consolidated operating income~~, partially offset by the previously mentioned higher interest expense~~.

Outlook

AsLooking ~~we look~~ ahead to fiscal ~~2025~~2026, we anticipate net sales growth in both the FSG and ETG, driven ~~primarily~~ by organic growth ~~supported~~from byincreased ~~strong~~ demand for the majority of our products~~. Additionally,~~ weas ~~plan~~well toas ~~drive~~ growth through our ~~recently~~recent ~~completed~~ acquisitions. We ~~while~~will ~~positioning~~continue ~~ourselves~~ to ~~capitalize~~pursue onselective ~~potential~~acquisition opportunities ~~from~~to ~~future~~complement ~~acquisitions~~this growth. Our disciplined financial management remains dedicated to creating long-term shareholder value through a balanced combination of making strategic acquisitions and organic expansion, while maintaining financial resilience and flexibility.

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priorities include advancing the development of new products and services, further expanding market penetration, and maintaining our financial strength and flexibility, all with a strong emphasis on delivering long-term value to our shareholders.

Inflation

We have generally experienced increases in our costs of labor, materials and services consistent with overall rates of inflation. The impact of such increases on net income attributable to HEICO has been generally minimized by efforts to lower costs through manufacturing efficiencies and cost reductions as well as selective price increases.

Liquidity and Capital Resources

The following table summarizes our capitalization (in thousands):

	As of October 31,
	2024	2023
	2025	2024
Cash and cash equivalents	$~~162~~217,~~103~~781	$~~171~~162,~~048~~103
Total debt (including current portion)	2,~~229~~167,~~374~~945	2,~~478~~229,~~078~~374
Shareholders’ equity	34,~~697~~379,~~406~~175	3,~~193~~697,~~151~~406
Total capitalization (debt plus equity)	56,~~926~~547,~~780~~120	5,~~671~~926,~~229~~780
Total debt to total capitalization	3833%	4438%

Our principal uses of cash include acquisitions, capital expenditures, interest payments, cash dividends, distributions to noncontrolling interests and working capital needs. Capital expenditures in fiscal 2025 are anticipated to be approximately $65 to $70 million. We finance our activities primarily from our operating and financing activities, including borrowings under our revolving credit facility. 39

As of December 18, 2024, we had approximately $995 million of unused committed availability under the terms of our revolving credit facility. Based on our current outlook, we believe that net cash provided by operating activities and available borrowings under our revolving credit facility will be sufficient to fund our cash requirements for at least the next twelve months.Index

Our principal uses of cash include acquisitions, interest payments, capital expenditures, cash dividends, distributions to noncontrolling interests and working capital needs. Capital expenditures in fiscal 2026 are anticipated to be approximately $80 to $90 million. We finance our activities primarily from our operating and financing activities, including borrowings under our revolving credit facility.

As of December 19, 2025, we had approximately $1,078 million of unused committed availability under the terms of our revolving credit facility. Based on our current outlook, we believe that net cash provided by operating activities and available borrowings under our revolving credit facility will be sufficient to fund our cash requirements for at least the next twelve months.

Operating Activities

Net cash provided by operating activities was $~~672~~934.43 million in fiscal ~~2024~~2025 and consisted primarily of net income from consolidated operations of $~~559~~745.16 million, depreciation and amortization expense of $~~175~~196.31 million (a non-cash item), ~~net changes of~~ $5334.54 million ~~included~~ in ~~the~~share-based ~~"Other"~~compensation ~~caption~~expense (~~principally~~a ~~the receipt of advance deposits on certain long~~non-~~term~~cash ~~customer contracts~~item), net changes in other long-term liabilities and assets related to the HEICO Corporation Leadership Compensation Plan (the "LCP") of $2123.65 million (principally participant deferrals and employer contributions), and $720.54 million ofin ~~intangible~~employer ~~asset~~contributions ~~impairment~~to ~~expense~~the HEICO Savings and Investment Plan (a non-cash item), partially offset by a $58.7 million increase in net working capital and a $48.6 million deferred income tax benefit (a non-cash item). The increase in net working capital is inclusive of a $75.6 million increase in accounts receivable resulting from increased net sales and timing of collections, and a $44.9 million increase in inventories to support an increase in consolidated backlog, partially offset by a $44.6 million increase in accrued expenses and other current liabilities and a $15.4 million decrease in prepaid expenses and other current assets.

Net cash provided by operating activities increased by $261.9 million (a 39% increase) in fiscal 2025, up from $672.4 million in fiscal 2024. The increase is principally attributable to a $186.5 million increase in net income from consolidated operations, an $84.3 million decrease in net working capital, principally reflecting a lower investment in inventories, a $22.8 million increase in accrued contingent consideration, a $20.7 million increase in depreciation and amortization expense and a $15.6 million increase in share-based compensation expense, partially offset by a $42.7 million decrease in the "Other" caption mainly from a larger receipt of advance long-term customer deposits in fiscal 2024 and a $26.6 million increase in deferred income tax benefits.

Net cash provided by operating activities was $672.4 million in fiscal 2024 and consisted primarily of net income from consolidated operations of $559.1 million, depreciation and amortization expense of $175.3 million (a non-cash item), net changes of $53.5 million included in the "Other" caption (principally the receipt of advance deposits on certain long-term customer contracts), net changes in other long-term liabilities and assets related to the LCP of $21.6 million (principally participant deferrals and employer contributions), and $7.5 million of intangible asset impairment expense (a non-cash item), partially offset by a $143.0 million

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~~cash item), partially offset by a $143.0 million~~ increase in net working capital. The increase in net working capital principally reflects a $132.9 million increase in inventories to support an increase in consolidated backlog.

Net cash provided by operating activities increased by $223.6 million (a 50% increase) in fiscal 2024, up from $448.7 million in fiscal 2023. The increase is principally attributable to a $114.7 million increase in net income from consolidated operations, a $63.5 million increase in the "Other" caption mainly from the previously mentioned receipt of advance long-term customer deposits in fiscal 2024, a $45.3 million increase in depreciation and amortization expense, a $9.1 million prior year impact from the amendment and termination of a contingent consideration agreement, an $8.1 million increase in net changes in other long-term liabilities and assets related to the LCP and a $7.5 million impact from intangible asset impairment expense, partially offset by a $25.6 million increase in net working capital mainly reflecting a $50.5 million increase in accrued expenses and other current liabilities and a $28.6 million increase in prepaid expenses and other current assets partially offset by a $44.8 million decrease in accounts receivable.

Net cash provided by operating activities was $448.7 million in fiscal 2023 and consisted primarily of net income from consolidated operations of $444.4 million, depreciation and amortization expense of $130.0 million (a non-cash item), $15.5 million in share-based compensation expense (a non-cash item) and $15.3 million in employer contributions to the HEICO Savings and Investment Plan (a non-cash item), partially offset by a $117.4 million increase in net working capital, a $26.5 million deferred income tax benefit (a non-cash item), and a $9.1 million impact from the amendment and termination of a contingent consideration agreement (a non-cash item). The increase in net working capital is inclusive of a $124.8 million increase in inventories to support an increase in consolidated backlog and a $65.6 million increase in accounts receivable resulting from the previously mentioned higher net sales and the timing of collections, partially offset by a $72.6 million increase in accrued expenses and other current liabilities principally from a higher level of accrued performance based-compensation due to the improved operating results and an increase in contract liabilities.

Investing Activities

Net cash used in investing activities totaled $~~293~~731.27 million in fiscal ~~2024~~2025 and related primarily to acquisitions of $~~219~~629.38 million, capital expenditures of $5872.39 million, and LCP funding of $1933.90 million. Further details regarding our acquisitions may be found in Note 2, Acquisitions, of the Notes to Consolidated Financial Statements.

Net cash used in investing activities totaled $~~2,484~~293.52 million in fiscal ~~2023~~2024 and related primarily to acquisitions of $~~2,421~~219.83 million, capital expenditures of $4958.43 million, and LCP funding of $1819.9 million.

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Financing Activities

Net cash used in financing activities in fiscal 2025 totaled $150.7 million. During fiscal 2025, we made $550.0 million of payments on our revolving credit facility, $38.5 million of distributions to noncontrolling interests, paid $32.0 million of cash dividends on our common stock, and redeemed $22.4 million of common stock related to stock option exercises, partially offset by $495.0 million of borrowings on our revolving credit facility to fund certain fiscal 2025 acquisitions.

Net cash used in financing activities in fiscal 2024 totaled $389.4 million. During fiscal 2024, we made $365.0 million of payments on our revolving credit facility and $34.3 million of distributions to noncontrolling interests, redeemed $29.9 million of common stock related to stock option exercises, paid $29.1 million of cash dividends on our common stock and $26.6 million to acquire certain noncontrolling interests, and made $24.8 million of contingent consideration payments and $13.9 million of net payments on short-term debt, partially offset by $130.0 million of borrowings on our revolving credit facility to fund certain fiscal 2024 acquisitions.

Net cash provided by financing activities in fiscal 2023 totaled $2,065.0 million. During fiscal 2023, we borrowed $1,964.0 million under our revolving credit facility and received $1,189.5 million in proceeds from the issuance of senior unsecured notes, which were partially offset by $989.0 million in payments made on our revolving credit facility, $36.6 million of distributions to noncontrolling interests, $27.4 million of cash dividends on our common stock, redemptions of common stock related to stock option exercises aggregating $14.8 million, $12.6 million of contingent consideration payments, and $10.1 million paid of debt issuance costs.

Revolving Credit Facility

In November 2017, we entered into a $1.3 billion Revolving Credit Facility Agreement ("Credit Facility") with a bank syndicate. The Credit Facility may be used to finance acquisitions and for working capital and other general corporate purposes, including capital expenditures. In December 2020, we entered into an amendment to increase the capacity by $200 million to $1.5 billion. In April 2022, we entered into an amendment to extend the maturity date of our Credit Facility by one year to November 2024 and to replace the Eurocurrency Rate with Adjusted Term SOFR as an election in which borrowings under the Credit Facility accrue interest, as such capitalized terms are defined in the Credit Facility. In July 2023, we entered into a third amendment to our Credit Facility, to, among other things, (i) increase the capacity by $500 million to $2.0 billion, (ii) extend the maturity date to July 2028, and (iii) increase the applicable rate with respect to certain total leverage ratio tiers in the pricing ~~grid. The Credit Facility includes a feature that will allow us to increase the capacity by $750 million to become a $2.75 billion facility through increased commitments from existing lenders.~~

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~~Total Leverage Ratio)~~grid. The Credit Facility ~~also~~ includes a ~~$200~~feature ~~million~~that ~~sublimit~~will ~~for~~allow ~~swingline~~us ~~borrowings~~to ~~and~~increase ~~$100 million sublimits for borrowings made in foreign currencies and for letters of credit. Outstanding principal, accrued and unpaid interest and other amounts payable under~~ the ~~Credit~~capacity ~~Facility~~by ~~may~~$750 bemillion ~~accelerated~~to ~~upon~~become ~~an event of default, as such events are described in the Credit Facility. The Credit Facility is unsecured and contains covenants that require, among other things, the maintenance of~~ a ~~Total Leverage Ratio and an Interest Coverage Ratio, as such capitalized terms are defined in the Credit Facility~~$2. We75 ~~were~~billion infacility ~~compliance~~through ~~with~~increased ~~all~~commitments ~~financial~~from ~~and~~existing ~~nonfinancial covenants of the Credit Facility as of October 31, 2024~~lenders.

Borrowings under the Credit Facility accrue interest at our election of the Base Rate or Adjusted Term SOFR, plus in each case, the Applicable Rate (based on the Company’s Total Leverage Ratio), as such capitalized terms are defined in the Credit Facility. The Base Rate for any day is a fluctuating rate per annum equal to the highest of (i) the Prime Rate; (ii) the Federal Funds Rate plus .50%; and (iii) Adjusted Term SOFR for an Interest Period of one month plus 100 basis points. Adjusted Term SOFR is the rate per annum equal to Term SOFR plus a Term SOFR Adjustment of .10%; provided that Adjusted Term SOFR as so determined shall never be less than 0%. The Applicable Rate for SOFR Loans ranges from 1.125% to 2.00%. The Applicable Rate for Base Rate Loans ranges from .125% to 1.00%. A fee is charged on the amount of the unused commitment ranging from .15% to .35% (depending on the Company’s Total Leverage Ratio). The Credit Facility also includes a $200 million sublimit for swingline borrowings and $100 million sublimits for borrowings made in foreign currencies and for letters of credit. Outstanding principal, accrued and unpaid interest and other amounts payable under the Credit Facility may be accelerated upon an event of default, as such events are described in the Credit Facility. The Credit Facility is unsecured and contains covenants that require, among other things, the maintenance of a Total Leverage Ratio and an Interest Coverage Ratio, as such capitalized terms are defined in the Credit Facility. We were in compliance with all financial and nonfinancial covenants of the Credit Facility as of October 31, 2025.

Senior Unsecured Notes

On July 27, 2023, we completed the public offer and sale of senior unsecured notes, which consisted of $600 million principal amount of 5.25% Senior Notes due August 1, 2028 (the "2028 Notes") and $600 million principal amount of 5.35% Senior Notes due August 1, 2033 (the "2033 Notes" and, collectively with the 2028 Notes, the "Notes"). Interest on the Notes is payable semi-annually in arrears on February 1 and August 1 of each year, and commenced on February 1, 2024. The 2028 Notes and 2033 Notes each have an effective interest rate of 5.5%. The Notes are fully and unconditionally guaranteed on a senior unsecured basis by all of our existing and future subsidiaries that guarantee our obligations under the Credit Facility (the “Guarantor Group”). We were in compliance with all covenants related to the Notes as of October 31, 2025.

Other Obligations and Commitments

The holders of equity interests in certain of our subsidiaries have rights (“Put Rights”) that require us to provide cash consideration for their equity interests (the “Redemption Amount”) at fair value or at a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. As of October 31, ~~2024~~2025, management’s estimate of the aggregate Redemption Amount of all Put Rights that we could be required to pay is approximately $~~366~~467.24 million, which is included within redeemable noncontrolling interests in our Consolidated Balance Sheet. The estimated aggregate Redemption Amount of the Put Rights that are currently puttable, previously put, or becoming puttable during fiscal 2025 is approximately $194.2 million, of which approximately $91.0 million would be payable in fiscal 2025 should all of the eligible associated noncontrolling interest holders elect to exercise their Put Rights during fiscal 2025. See Note 13, Redeemable Noncontrolling Interests, of the Notes to Consolidated Financial Statements for further information.

~~See Note 5, Short-Term and Long-Term Debt, of the Notes to Consolidated Financial Statements for information regarding our long-term debt obligations.~~42

See Note 8, Fair Value Measurements, of the Notes to Consolidated Financial Statements for information pertaining to contingent consideration obligations. As of October 31, 2024, the estimated fair value of contingent consideration payable in fiscal 2025 was $8.4 million.

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puttable during fiscal 2026 is approximately $191.4 million, of which approximately $94.6 million would be payable in fiscal 2026 should all of the eligible associated noncontrolling interest holders elect to exercise their Put Rights during fiscal 2026. See Note 13, Redeemable Noncontrolling Interests, of the Notes to Consolidated Financial Statements for further information.

See Note 5, Long-Term Debt, of the Notes to Consolidated Financial Statements for information regarding our long-term debt obligations.

See Note 8, Fair Value Measurements, of the Notes to Consolidated Financial Statements for information pertaining to contingent consideration obligations. As of October 31, 2025, none of the estimated fair value of contingent consideration was payable in fiscal 2026.

See Note 9, Leases, of the Notes to Consolidated Financial Statements for information pertaining to future minimum lease payments relating to the Company’s operating and finance lease obligations.

Guarantor Group Summarized Financial Information

The Notes were issued pursuant to an Indenture, dated as of July 27, 2023 (the “Base Indenture”), between HEICO and certain of its subsidiaries (collectively, the "Subsidiary Guarantors") and Truist Bank, as trustee (the “Trustee”), as supplemented by a First Supplemental Indenture, dated as of July 27, 2023 (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), between us, the Subsidiary Guarantors and the Trustee. The Notes are direct, unsecured senior obligations of HEICO and rank equally in right of payment with all of our existing and future senior unsecured indebtedness. Each Subsidiary Guarantor is owned either directly or indirectly by the Company and jointly and severally guarantee our obligations under the Notes. None of the Subsidiary Guarantors are organized outside of the U.S. A list of the Subsidiary Guarantors is set forth in Exhibit 22 to this Annual Report on Form 10-K.

Under the Indenture, holders of the Notes will be deemed to have consented to the release of a subsidiary guarantee provided by a subsidiary guarantor, without any action required on the part of the Trustee or any holder of the Notes, upon such subsidiary guarantor ceasing to guarantee or to be an obligor with respect to the Credit Facility. Accordingly, if the lenders under the Credit Facility release a subsidiary guarantor from its guarantee of, or obligations as a borrower under, the Credit Facility, the obligations of the subsidiary guarantors to guarantee the Notes will immediately terminate. If any of our future subsidiaries incur obligations under the Credit Facility while the Notes are outstanding, then such subsidiary will be required to guarantee the Notes.

In addition, a subsidiary guarantor will be released and relieved from all its obligations under its subsidiary guarantee in the following circumstances, each of which is permitted by the indenture:

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•upon the sale or other disposition (including by way of consolidation or merger), in one transaction or a series of related transactions, of a majority of the total voting stock of such subsidiary guarantor (other than to us or any of our affiliates); or

•upon the sale or disposition of all or substantially all the property of such subsidiary guarantor (other than to any of our affiliates or another subsidiary guarantor);

provided, however, that, in each case, such transaction is permitted by the Credit Facility and after giving effect to such transaction, such subsidiary guarantor is no longer liable for any subsidiary guarantee or other obligations in respect of the Credit Facility. The subsidiary guarantee of a subsidiary guarantor also will be released if we exercise our legal defeasance, covenant defeasance option or discharge the Indenture.

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We conduct our operations almost entirely through our subsidiaries. Accordingly, the Guarantor Group’s cash flow and ability to service any guaranteed registered debt securities will depend on the earnings of our subsidiaries and the distribution of those earnings to the Guarantor Group, including the earnings of the non-guarantor subsidiaries, whether by dividends, loans or otherwise. Holders of the guaranteed registered debt securities will have a direct claim only against the Guarantor Group.

The following tables include summarized financial information for the Guarantor Group (in thousands). The information for the Guarantor Group is presented on a combined basis, excluding intercompany balances and transactions between us and the Guarantor Group and excluding investments in and equity in the earnings of non-guarantor subsidiaries. The Guarantor Group’s amounts due from, amounts due to, and transactions with non-guarantor subsidiaries have been presented in separate line items. The consolidating schedules are provided in accordance with the reporting requirements of Rule 13-01 under SEC Regulation S-X for the issuer and guarantor subsidiaries.

			As of
			October 31, 2024
			October 31, 2025
Current assets (excluding net intercompany receivable from non-guarantor subsidiaries)			$1,~~642~~927,~~341~~805
Noncurrent assets			45,~~627~~280,~~711~~470
Net intercompany receivable from/ (payable to) non-guarantor subsidiaries			~~243~~260,~~421~~672
Current liabilities (excluding net intercompany payable to non-guarantor subsidiaries)			~~546~~721,~~677~~365
Noncurrent liabilities			2,~~793~~751,~~193~~782
Redeemable noncontrolling interests			~~243~~337,~~277~~818
Noncontrolling interests			4963,~~900~~792

			Year ended
			October 31, 2024
Net sales			$3,216,400
Gross profit			1,230,374
Operating income			697,691
Net income from consolidated operations			559,493
Net income attributable to HEICO			525,970

			Year ended
			October 31, 2024
Intercompany net sales			$12,493
Intercompany management fee			3,319
Intercompany interest income			8,738
Intercompany dividends			94,359

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			Year ended
			October 31, 2025
Net sales			$3,808,827
Gross profit			1,487,664
Operating income			879,170
Net income from consolidated operations			739,571
Net income attributable to HEICO			695,407


			Year ended
			October 31, 2025
Intercompany net sales			$13,182
Intercompany management fee			4,236
Intercompany interest income			9,488
Intercompany dividends			99,327

Critical Accounting Estimates

We believe that the following are our most critical accounting estimates, which require management to make judgments about matters that are inherently uncertain.

Assumptions utilized to determine fair value in connection with business combinations, contingent consideration arrangements and in goodwill and intangible assets impairment tests are highly judgmental. If there is a material change in such assumptions or if there is a material change in the conditions or circumstances influencing fair value, we could be required to recognize a material impairment charge. See Item 1A., Risk Factors, for a list of factors which may cause our actual results to differ materially from anticipated results.

Valuation of Inventory

Inventory is reported at the lower of cost or net realizable value, determined using either the first-in, first-out method or the average cost basis. Any losses are recognized entirely in the period of identification.

We regularly assess the carrying value of inventory, considering factors such as its physical condition, sales trends, and anticipated future demand to estimate provisions for slow-moving, obsolete, or damaged inventory. Our inventory valuation reserves are established through analysis and estimates that consider many factors such as current order levels, forecasted demand, market conditions, and expected product life cycles. Changes in business or economic conditions, consumer confidence, market dynamics, demand fluctuations, evolving technology, or inaccurate demand projections may necessitate adjustments to these reserves. Should actual market conditions deviate from management's expectations, additional provisions for excess and obsolete inventory could be required and may be material to our results of operations. Changes ~~in estimates did not have a material effect on net income from consolidated operations in fiscal 2024, 2023 and 2022.~~

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in estimates did not have a material effect on net income from consolidated operations in fiscal 2025, 2024 and 2023.

Business Combinations

We allocate the purchase price of acquired entities to the underlying tangible and identifiable intangible assets acquired and liabilities and any noncontrolling interests assumed based on their estimated fair values, with any excess recorded as goodwill. Determining the fair value of assets acquired and liabilities and noncontrolling interests assumed requires management’s judgment and often involves the use of significant estimates and assumptions. For example, the fair value of intangible assets acquired considers forecasts of future cash flows, revenue, earnings, royalty rates, discount rates and asset lives. We determine the fair values of intangible assets acquired generally in consultation with third-party valuation advisors.

As part of the agreement to acquire certain subsidiaries, we may be obligated to pay contingent consideration should the acquired entity meet certain earnings objectives subsequent to the date of acquisition. As of the acquisition date, contingent consideration is recorded at fair value as determined ~~through~~using ~~the use of~~ a probability-based scenario analysis approach. Under this method, a set of discrete potential future subsidiary earnings is determined using internal estimates based on various revenue growth rate assumptions for each scenario. A probability of likelihood is then assigned to each discrete potential future earnings estimate and the resultant contingent consideration is calculated and discounted using a weighted average discount rate reflecting the credit risk of HEICO. Changes in either the revenue growth rates, related earnings or the discount rate could result in a material change to the amount of contingent consideration accrued. As of October 31, 2025 and 2024, $46.2 million and $30.2 million of contingent consideration was accrued within our Consolidated Balance Sheets, respectively. During fiscal 2025, 2024 and 2023, such fair value measurement adjustments resulted in net increases (decreases) to SG&A expenses of $12.9 million, ($9.9) million and ($.7) million, respectively. For further information regarding our contingent consideration arrangements, see Note 8, Fair Value Measurements, of the Notes to Consolidated Financial Statements.

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this method, a set of discrete potential future subsidiary earnings is determined using internal estimates based on various revenue growth rate assumptions for each scenario. A probability of likelihood is then assigned to each discrete potential future earnings estimate and the resultant contingent consideration is calculated and discounted using a weighted average discount rate reflecting the credit risk of HEICO. Changes in either the revenue growth rates, related earnings or the discount rate could result in a material change to the amount of contingent consideration accrued. As of October 31, 2024 and 2023, $30.2 million and $71.1 million of contingent consideration was accrued within our Consolidated Balance Sheets, respectively. During fiscal 2024, 2023 and 2022, such fair value measurement adjustments resulted in net decreases to SG&A expenses of ($9.9) million, ($.7) million and ($7.6) million, respectively. For further information regarding our contingent consideration arrangements, see Note 8, Fair Value Measurements, of the Notes to Consolidated Financial Statements.

Valuation of Goodwill and Other Intangible Assets

We test goodwill for impairment annually as of October 31, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may exceed its fair value. When testing goodwill for impairment, we may perform a qualitative assessment as the initial step for all or selected reporting units. We are also allowed to bypass the qualitative analysis and perform a quantitative analysis if desired.

When performing the qualitative test, we consider factors including, but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for our products and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, and overall financial performance. If, after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we proceed to a quantitative impairment test. When performing the quantitative impairment test, we compare the fair value of each of our reporting units to its carrying value to determine potential impairment and an impairment loss is recognized in the amount by which the carrying value of a reporting unit’s goodwill exceeds its fair value. The fair values of our reporting units are determined using a weighted average of a market approach and an income approach. The market approach estimates the value of reporting units by comparing to guideline public companies or guideline transactions. Various valuation multiples are calculated utilizing financial data of companies that are economically and operationally similar resulting in ranges of multiples. Judgmental adjustments are often necessary to ensure comparability. The selection of the appropriate multiple within a range requires judgement, considering various qualitative and quantitative factors. Changes in assumptions or estimates could materially affect the estimated fair value of our reporting units and the potential for impairment. The income approach estimates fair value by taking estimated future cash flows that are based on internal projections and other assumptions deemed reasonable by management and discounting them using an estimated weighted average cost of capital. Assumptions used in the analysis include estimated future revenues and expenses, the weighted average cost of working capital, capital expenditures, and other variables. The discount rate utilized for each reporting unit is indicative of the return an investor would expect to receive for investing in such a business. Based on the annual goodwill impairment test as of October 31,

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When performing the quantitative impairment test, we compare the fair value of each of our reporting units to its carrying value to determine potential impairment and an impairment loss is recognized in the amount by which the carrying value of a reporting unit’s goodwill exceeds its fair value. The fair values of our reporting units are determined using a weighted average of a market approach and an income approach. The market approach estimates the value of reporting units by comparing to guideline public companies or guideline transactions. Various valuation multiples are calculated utilizing financial data of companies that are economically and operationally similar resulting in ranges of multiples. Judgmental adjustments are often necessary to ensure comparability. The selection of the appropriate multiple within a range requires judgment, considering various qualitative and quantitative factors. Changes in assumptions or estimates could materially affect the estimated fair value of our reporting units and the potential for impairment. The income approach estimates fair value by taking estimated future cash flows that are based on internal projections and other assumptions deemed reasonable by management and discounting them using an estimated weighted average cost of capital. Assumptions used in the analysis include estimated future revenues and expenses, the weighted average cost of working capital, capital expenditures, and other variables. The discount rate utilized for each reporting unit is indicative of the return an investor would expect to receive for investing in such a business. Based on the annual goodwill impairment test as of October 31, 2025, 2024 and 2023, we determined there was no impairment of our goodwill. The fair value of each of our reporting units calculated as part of our quantitative impairment test significantly exceeded its carrying value as of October 31, 2025.

We test each non-amortizing intangible asset (principally trade names) for impairment annually as of October 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. To derive the fair value of our trade names, we utilize an income approach, which relies upon management's assumptions of royalty rates, projected revenues and discount rates. We also test each amortizing intangible asset for impairment if events or circumstances indicate that the asset might be impaired. The test consists of determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the undiscounted future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. The determination of fair value requires us to make a number of estimates, assumptions and judgments of underlying factors such as projected revenues and related earnings as well as discount rates. Based on the intangible impairment tests conducted, we recognized no impairment loss in fiscal 2025, an aggregate impairment loss of $7.5 million during fiscal 2024, and an immaterial impairment loss in fiscal 2023. The impairment loss we recognized in fiscal 2024 related to the write-down of trade names at two ETG subsidiaries due to a reduction in the expected future cash flows associated with such intangible assets. The impairment loss was recorded as a component of SG&A expenses in the Company's Consolidated Statement of Operations. See Note 8, Fair Value Measurements, for additional information regarding the Company’s fiscal 2024 impairment loss.

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2024, 2023 and 2022, we determined there was no impairment of our goodwill. The fair value of each of our reporting units calculated as part of our quantitative impairment test significantly exceeded its carrying value as of October 31, 2024.

We test each non-amortizing intangible asset (principally trade names) for impairment annually as of October 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. To derive the fair value of our trade names, we utilize an income approach, which relies upon management's assumptions of royalty rates, projected revenues and discount rates. We also test each amortizing intangible asset for impairment if events or circumstances indicate that the asset might be impaired. The test consists of determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the undiscounted future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. The determination of fair value requires us to make a number of estimates, assumptions and judgments of underlying factors such as projected revenues and related earnings as well as discount rates. Based on the intangible impairment tests conducted, we recognized an aggregate impairment loss of $7.5 million during fiscal 2024, an immaterial impairment loss in fiscal 2023 and no impairment loss in fiscal 2022. The impairment loss we recognized in fiscal 2024 related to the write-down of trade names at two ETG subsidiaries due to a reduction in the expected future cash flows associated with such intangible assets. The impairment loss was recorded as a component of SG&A expenses in the Company's Consolidated Statement of Operations. See Note 8, Fair Value Measurements, for additional information regarding the Company’s fiscal 2024 impairment loss.

New Accounting Pronouncements

See Note 1, Summary of Significant Accounting Policies - New Accounting Pronouncements, of the Notes to Consolidated Financial Statements for additional information.

Forward-Looking Statements

Certain statements in this report constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained herein that are not clearly historical in nature may be forward-looking and the words “anticipate,” “believe,” “expect,” “estimate” and similar expressions are generally intended to identify forward-looking statements. Any forward-looking statement contained herein, in press releases, written statements or other documents filed with the Securities and Exchange Commission or in communications and discussions with investors and analysts in the normal course of business through meetings, phone calls and conference calls, concerning our operations, economic performance and financial condition are subject to risks, uncertainties and contingencies. We have based these forward-looking statements on our current expectations and projections about future events. All forward-looking statements involve risks and uncertainties, many of which are beyond our control, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Also, forward-looking statements are based upon management’s estimates of fair values and of future costs, using currently available information. Therefore, actual results may differ materially from those expressed in or implied by those forward-looking statements. Factors that could cause such differences include, among others:

48•The severity, magnitude and duration of public health threats;

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costs, using currently available information. Therefore, actual results may differ materially from those expressed in or implied by those forward-looking statements. Factors that could cause such differences include:

•The severity, magnitude and duration of public health threats, such as the COVID-19 pandemic;

•Our liquidity and the amount and timing of cash generation;

•Lower commercial air travel, airline fleet changes or airline purchasing decisions, which could cause lower demand for our goods and services;

•Product specification costs and requirements, which could cause an increase toin our costs to complete contracts;

•Governmental and regulatory demands, export policies and restrictions, reductions in defense, space or homeland security spending by U.S. and/or foreign customers or competition from existing and new competitors, which could reduce our sales;

•Our ability to introduce new products and services at profitable pricing levels, which could reduce our sales or sales growth;

•Product development or manufacturing difficulties, which could increase our product development and manufacturing costs and delay sales;

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•Cybersecurity events or other disruptions of our information technology systems could adversely affect our business; and

•Our ability to make acquisitions, including obtaining any applicable domestic and/or foreign governmental approvals, and achieve operating synergies from acquired businesses; customer credit risk; interest, foreign currency exchange and income tax rates; and economic conditions, including the effects of inflation, within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues.

For further information on these and other factors that potentially could materially affect our financial results, see Item 1A, Risk Factors. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

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Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

We have exposure to interest rate risk, mainly related to our revolving credit facility, which has variable interest rates. Interest rate risk associated with our variable rate debt is the potential increase in interest expense from an increase in interest rates. Based on our aggregate outstanding variable rate debt balance of $~~1,015.0~~960 million as of October 31, ~~2024~~2025, a hypothetical 10% increase in interest rates would not have a material effect on our results of operations, financial position or cash flows. We also maintain a portion of our cash and cash equivalents in financial instruments with original maturities of three months or less. These financial instruments are subject to interest rate risk and will decline in value if interest rates increase. Due to the short duration of these financial instruments, a hypothetical 10% increase in interest rates as of October 31, 2025 would not have a material effect on our results of operations, financial position or cash flows.

Due to the short duration of these financial instruments, a hypothetical 10% increase in interest rates as of October 31, 2024 would not have a material effect on our results of operations, financial position or cash flows.

Foreign Currency Risk

We have several foreign subsidiaries that utilize a functional currency other than the U.S. dollar, or principally the Euro. Accordingly, changes in exchange rates between such foreign currencies and the U.S. dollar will affect the translation of the financial results of our foreign subsidiaries into the U.S. dollar for purposes of reporting our consolidated financial results. A hypothetical 10% weakening in the exchange rate of the Euro to the U.S. dollar as of October 31, ~~2024~~2025 would not have a material effect on our results of operations, financial position or cash flows.

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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

HEICO CORPORATION AND SUBSIDIARIES

INDEX TO FINANCIAL STATEMENTS

						Page
Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)						5251
Consolidated Balance Sheets as of October 31, 2024 and 2023						55
Consolidated Balance Sheets as of October 31, 2025 and 2024						54
Consolidated Statements of Operations for the years ended October 31, 2024, 2023 and 2022						56
Consolidated Statements of Operations for the years ended October 31, 2025, 2024 and 2023						55
Consolidated Statements of Comprehensive Income for the years endedOctober 31, 2024, 2023 and 2022						57
Consolidated Statements of Comprehensive Income for the years endedOctober 31, 2025, 2024 and 2023						56
Consolidated Statements of Shareholders’ Equity for the years ended October 31, 2024, 2023 and 2022						58
Consolidated Statements of Shareholders’ Equity for the years ended October 31, 2025, 2024 and 2023						57
Consolidated Statements of Cash Flows for the years ended October 31, 2024, 2023 and 2022						60
Consolidated Statements of Cash Flows for the years ended October 31, 2025, 2024 and 2023						59
Notes to Consolidated Financial Statements						6160
Financial Statement Schedule II - Valuation and Qualifying Accounts for the years ended October 31, 2024, 2023 and 2022						124
Financial Statement Schedule II - Valuation and Qualifying Accounts for the years ended October 31, 2025, 2024 and 2023						124

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

HEICO Corporation

Hollywood, Florida

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of HEICO Corporation and subsidiaries (the "Company") as of October 31, ~~2024~~2025 and ~~2023~~2024, the related consolidated statements of operations, comprehensive income, shareholders' equity, and cash flows, for each of the three years in the period ended October 31, ~~2024~~2025, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of October 31, ~~2024~~2025 and ~~2023~~2024, and the results of its operations and its cash flows for each of the three years in the period ended October 31, ~~2024~~2025, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of October 31, ~~2024~~2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated December 1922, ~~2024~~2025, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

5251

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Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the Finance/ Audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Inventories, net - Flight Support Group - Refer to Notes 1 and 3 to the financial statements

Critical Audit Matter Description

Inventory is stated at the lower of cost or net realizable value. The Company periodically evaluates the carrying value of inventory, which requires management to make significant estimates and assumptions related to sales patterns and expected future demand in order to estimate the amount necessary to write down any slow moving or obsolete inventory. Changes in the assumptions related to future demand and sales patterns could have a significant impact on the valuation of finished goods inventory for certain of the Company’s distribution and aftermarket parts business units in the Flight Support Group operating segment.

Given the magnitude of the inventory balances at these business units, coupled with the judgments necessary to project sales patterns and expected future demand within these business units, auditing such estimates required a high degree of auditor judgment and an increased extent of effort when performing audit procedures and evaluating the results of those procedures.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the expected future demand and sales patterns used by management to estimate the valuation reserve on inventory included the following, among others:

•We tested the effectiveness of controls, including those related to evaluating the reasonableness of expected future demand and sales patterns.

•We evaluated the reasonableness of management’s assumptions of future demand and sales patterns by performing the following:

◦Utilized historical inventory usage data to analyze the relationship between the inventory valuation reserve calculated, the inventory on hand, and the sales trends over time.

5352

Index

◦Compared management’s assumptions to available external market data for certain inventory items.

•We evaluated the accuracy and completeness of the valuation reserve by developing an expectation of the reserve balance at the business unit level and comparing it to the recorded balance.

•We tested changes in the inventory valuation reserve and evaluated whether such changes were the result of the sale or write -off of inventory parts or the result of changes in the significant assumptions used to develop the valuation reserve.

/s/ DELOITTE & TOUCHE LLP

Miami, Florida

December 1922, ~~2024~~2025

We have served as the Company's auditor since 1990.

5453

Index

HEICO CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

	As of October 31,
	2024	2023
	2025	2024
ASSETS
Current assets:
Cash and cash equivalents	$~~162~~217,~~103~~781	$~~171~~162,~~048~~103
Accounts receivable, net	~~538~~637,~~487~~615	~~509~~538,~~075~~487
Contract assets	~~112~~119,~~235~~257	~~111~~112,~~702~~235
Inventories, net	1,~~170~~295,~~949~~336	1,~~013~~170,~~680~~949
Prepaid expenses and other current assets	7886,~~518~~377	4978,~~837~~518
Total current assets	2,~~062~~356,~~292~~366	12,~~855~~062,~~342~~292
Property, plant and equipment, net	~~339~~431,~~034~~710	~~321~~339,~~848~~034
Goodwill	3,~~380~~661,~~295~~624	3,~~274~~380,~~327~~295
Intangible assets, net	1,~~334~~471,~~774~~440	1,~~357~~334,~~281~~774
Other assets	~~476~~579,~~427~~294	~~386~~476,~~265~~427
Total assets	$78,~~592~~500,~~822~~434	$7,~~195~~592,~~063~~822
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt and current maturities of long-term debt	$4,107	$17,801
Current maturities of long-term debt	$3,358	$4,107
Trade accounts payable	~~198~~231,~~429~~040	~~205~~198,~~893~~429
Accrued expenses and other current liabilities	~~427~~577,~~781~~624	~~433~~427,~~101~~781
Income taxes payable	3319,~~534~~982	833,~~547~~534
Total current liabilities	~~663~~832,~~851~~004	~~665~~663,~~342~~851
Long-term debt, net of current maturities	2,~~225~~164,~~267~~587	2,~~460~~225,~~277~~267
Deferred income taxes	~~114~~107,~~156~~186	~~131~~114,~~846~~156
Other long-term liabilities	~~525~~550,~~986~~124	~~379~~525,~~640~~986
Total liabilities	3,~~529~~653,~~260~~901	3,~~637~~529,~~105~~260
Commitments and contingencies (Note 16)
Redeemable noncontrolling interests (Note 13)	~~366~~467,~~156~~358	~~364~~366,~~807~~156
Shareholders’ equity:
Preferred Stock, $.01 par value per share; 10,000 shares authorized; none issued	—	—
Common Stock, $.01 par value per share; 150,000 shares authorized;54,986 and 54,721 shares issued and outstanding	550	547
Common Stock, $.01 par value per share; 150,000 shares authorized; 55,143 and 54,986 shares issued and outstanding	551	550
Class A Common Stock, $.01 par value per share; 150,000 shares authorized; 83,827 and 83,507 shares issued and outstanding	838	835
Class A Common Stock, $.01 par value per share; 150,000 shares authorized; 84,198 and 83,827 shares issued and outstanding	842	838
Capital in excess of par value	~~599~~650,~~399~~667	~~578~~599,~~809~~399
Deferred compensation obligation	78,~~272~~096	67,~~318~~272
HEICO stock held by irrevocable trust	(78,~~272~~096)	(67,~~318~~272)
Accumulated other comprehensive loss	(26,076)	(40,180)
Accumulated other comprehensive income (loss)	5,581	(26,076)
Retained earnings	3,~~062~~647,~~166~~678	23,~~605~~062,~~984~~166
Total HEICO shareholders’ equity	34,~~636~~305,~~877~~319	3,~~145~~636,~~995~~877
Noncontrolling interests	6073,~~529~~856	4760,~~156~~529
Total shareholders’ equity	34,~~697~~379,~~406~~175	3,~~193~~697,~~151~~406
Total liabilities and equity	$78,~~592~~500,~~822~~434	$7,~~195~~592,~~063~~822

The accompanying notes are an integral part of these consolidated financial statements.

5554

Index

HEICO CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

Year ended October 31,

2024

2023

2022

2025

2024

2023

Net sales

$34,~~857~~485,~~669~~044

$23,~~968~~857,~~105~~669

$2,~~208~~968,~~322~~105

Operating costs and expenses:

Cost of sales

2,~~355~~698,~~943~~580

12,~~814~~355,~~617~~943

1,~~345~~814,~~563~~617

Selling, general and administrative expenses

~~677~~767,~~271~~466

~~528~~677,~~149~~271

~~365~~528,~~915~~149

Total operating costs and expenses

3,~~033~~466,~~214~~046

23,~~342~~033,~~766~~214

12,~~711~~342,~~478~~766

Operating income

~~824~~1,~~455~~018,998

~~625~~824,~~339~~455

~~496~~625,~~844~~339

Interest expense

(~~149~~129,~~313~~877)

(72149,~~984~~313)

(672,~~386~~984)

Other income

24,~~444~~433

2,~~928~~444

~~565~~2,928

Income before income taxes and noncontrolling interests

~~677~~893,~~586~~554

~~555~~677,~~283~~586

~~491~~555,~~023~~283

Income tax expense

~~118~~148,~~500~~000

~~110~~118,~~900~~500

~~100~~110,~~400~~900

Net income from consolidated operations

~~559~~745,~~086~~554

~~444~~559,~~383~~086

~~390~~444,~~623~~383

Less: Net income attributable to noncontrolling interests

4455,~~977~~169

4044,~~787~~977

3840,~~948~~787

Net income attributable to HEICO

$~~514~~690,~~109~~385

$~~403~~514,~~596~~109

$~~351~~403,~~675~~596

Net income per share attributable to HEICO shareholders:

Basic

$34.7197

$23.9471

$2.5994

Diluted

$34.6790

$23.9167

$2.5591

Weighted average number of common shares outstanding:

Basic

~~138~~139,~~455~~048

~~137~~138,~~185~~455

~~136~~137,~~010~~185

Diluted

140,~~198~~771

~~138~~140,~~905~~198

138,~~037~~905

The accompanying notes are an integral part of these consolidated financial statements.

5655

Index

HEICO CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

Year ended October 31,

2024

2023

2022

2025

2024

2023

Net income from consolidated operations

$~~559~~745,~~086~~554

$~~444~~559,~~383~~086

$~~390~~444,~~623~~383

Other comprehensive income (loss):

Other comprehensive income:

Foreign currency translation adjustments

1332,~~983~~063

613,~~905~~983

~~(40~~6,~~078)~~905

Unrealized gain on defined benefit pension plan, net of tax

554

368

Unrealized (loss) gain on defined benefit pension plan, net of tax

(200)

554

Amortization of unrealized loss on defined benefit pension plan, net of tax

523

5652

6556

Total other comprehensive income (loss)

14,589

7,020

(39,645)

Total other comprehensive income

31,866

14,589

7,020

Comprehensive income from consolidated operations

~~573~~777,~~675~~420

~~451~~573,~~403~~675

~~350~~451,~~978~~403

Net income attributable to noncontrolling interests

4455,~~977~~169

4044,~~787~~977

3840,~~948~~787

Foreign currency translation adjustments attributable to noncontrolling interests

~~485~~209

~~701~~485

~~(1,698)~~701

Comprehensive income attributable to noncontrolling interests

4555,~~462~~378

4145,~~488~~462

3741,~~250~~488

Comprehensive income attributable to HEICO

$~~528~~722,~~213~~042

$~~409~~528,~~915~~213

$~~313~~409,~~728~~915

The accompanying notes are an integral part of these consolidated financial statements.

5756

Index

HEICO CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

For the Years Ended October 31, 2025 and 2024

(in thousands, except per share data)


		HEICO Shareholders' Equity
	Redeemable Noncontrolling Interests	Common Stock	Class A Common Stock	Capital in Excess of Par Value	Deferred Compensation Obligation	HEICO Stock Held by Irrevocable Trust	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Noncontrolling Interests	Total Shareholders' Equity
Balances as of October 31, 2024	$366,156	$550	$838	$599,399	$7,272	($7,272)	($26,076)	$3,062,166	$60,529	$3,697,406
Comprehensive income	40,425	—	—	—	—	—	31,657	690,385	14,953	736,995
Cash dividends ($.23 per share)	—	—	—	—	—	—	—	(31,968)	—	(31,968)
Share-based compensation expense	—	—	—	34,381	—	—	—	—	—	34,381
Issuance of common stock to HEICO Savings and Investment Plan	—	1	1	18,858	—	—	—	—	—	18,860
Proceeds from stock option exercises	—	1	2	13,209	—	—	—	—	—	13,212
Issuance of common stock for an acquisition	—	—	1	10,122	—	—	—	—	—	10,123
Redemptions of common stock related to stock option exercises	—	(1)	—	(22,385)	—	—	—	—	—	(22,386)
Distributions to noncontrolling interests	(36,571)	—	—	—	—	—	—	—	(1,626)	(1,626)
Noncontrolling interests assumed related to acquisitions	27,904	—	—	—	—	—	—	—	—	—
Acquisitions of noncontrolling interests	(5,773)	—	—	—	—	—	—	—	—	—
Adjustments to redemption amount of redeemable noncontrolling interests	72,417	—	—	—	—	—	—	(72,417)	—	(72,417)
Deferred compensation obligation	—	—	—	—	824	(824)	—	—	—	—
Other	2,800	—	—	(2,917)	—	—	—	(488)	—	(3,405)
Balances as of October 31, 2025	$467,358	$551	$842	$650,667	$8,096	($8,096)	$5,581	$3,647,678	$73,856	$4,379,175


		HEICO Shareholders' Equity
	Redeemable Noncontrolling Interests	Common Stock	Class A Common Stock	Capital in Excess of Par Value	Deferred Compensation Obligation	HEICO Stock Held by Irrevocable Trust	Accumulated Other Comprehensive Loss	Retained Earnings	Noncontrolling Interests	Total Shareholders' Equity
Balances as of October 31, 2023	$364,807	$547	$835	$578,809	$6,318	($6,318)	($40,180)	$2,605,984	$47,156	$3,193,151
Comprehensive income	31,134	—	—	—	—	—	14,104	514,109	14,328	542,541
Cash dividends ($.21 per share)	—	—	—	—	—	—	—	(29,069)	—	(29,069)
Issuance of common stock to HEICO Savings and Investment Plan	—	1	1	15,994	—	—	—	—	—	15,996
Share-based compensation expense	—	—	—	18,775	—	—	—	—	—	18,775
Proceeds from stock option exercises	—	3	3	7,945	—	—	—	—	—	7,951
Redemptions of common stock related to stock option exercises	—	(1)	(1)	(29,910)	—	—	—	—	—	(29,912)
Distributions to noncontrolling interests	(33,478)	—	—	—	—	—	—	—	(955)	(955)
Acquisitions of noncontrolling interests	(26,567)	—	—	—	—	—	—	—	—	—
Noncontrolling interests assumed related to acquisitions	8,783	—	—	—	—	—	—	—	—	—
Adjustments to redemption amount of redeemable noncontrolling interests	29,143	—	—	—	—	—	—	(29,143)	—	(29,143)
Deferred compensation obligation	—	—	—	—	954	(954)	—	—	—	—
Other	(7,666)	—	—	7,786	—	—	—	285	—	8,071
Balances as of October 31, 2024	$366,156	$550	$838	$599,399	$7,272	($7,272)	($26,076)	$3,062,166	$60,529	$3,697,406

		HEICO Shareholders' Equity
	Redeemable Noncontrolling Interests	Common Stock	Class A Common Stock	Capital in Excess of Par Value	Deferred Compensation Obligation	HEICO Stock Held by Irrevocable Trust	Accumulated Other Comprehensive Loss	Retained Earnings	Noncontrolling Interests	Total Shareholders' Equity
Balances as of October 31, 2022	$327,601	$545	$821	$397,337	$5,297	($5,297)	($46,499)	$2,253,932	$42,170	$2,648,306
Comprehensive income	29,565	—	—	—	—	—	6,319	403,596	11,923	421,838
Cash dividends ($.20 per share)	—	—	—	—	—	—	—	(27,370)	—	(27,370)
Issuance of common stock for an acquisition	—	—	11	161,362	—	—	—	—	—	161,373
Issuance of common stock to HEICO Savings and Investment Plan	—	—	—	13,677	—	—	—	—	—	13,677
Share-based compensation expense	—	—	—	15,475	—	—	—	—	—	15,475
Proceeds from stock option exercises	—	2	3	6,708	—	—	—	—	—	6,713
Redemptions of common stock related to stock option exercises	—	—	—	(14,847)	—	—	—	—	—	(14,847)
Distributions to noncontrolling interests	(29,654)	—	—	—	—	—	—	—	(6,937)	(6,937)
Acquisitions of noncontrolling interests	(1,059)	—	—	(1,674)	—	—	—	—	—	(1,674)
Noncontrolling interests assumed related to acquisitions	12,137	—	—	—	—	—	—	—	—	—
Adjustments to redemption amount of redeemable noncontrolling interests	23,866	—	—	—	—	—	—	(23,866)	—	(23,866)
Deferred compensation obligation	—	—	—	—	1,021	(1,021)	—	—	—	—
Other	2,351	—	—	771	—	—	—	(308)	—	463
Balances as of October 31, 2023	$364,807	$547	$835	$578,809	$6,318	($6,318)	($40,180)	$2,605,984	$47,156	$3,193,151

The accompanying notes are an integral part of these consolidated financial statements.

5857

Index

HEICO CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

		HEICO Shareholders' Equity
	Redeemable Noncontrolling Interests	Common Stock	Class A Common Stock	Capital in Excess of Par Value	Deferred Compensation Obligation	HEICO Stock Held by Irrevocable Trust	Accumulated Other Comprehensive Loss	Retained Earnings	Noncontrolling Interests	Total Shareholders' Equity
Balances as of October 31, 2021	$252,587	$543	$812	$320,747	$5,297	($5,297)	($8,552)	$1,949,521	$33,868	$2,296,939
Comprehensive income (loss)	27,442	—	—	—	—	—	(37,947)	351,675	9,808	323,536
Cash dividends ($.18 per share)	—	—	—	—	—	—	—	(24,466)	—	(24,466)
Issuance of common stock for an acquisition	—	—	6	74,999	—	—	—	—	—	75,005
Issuance of common stock to HEICO Savings and Investment Plan	—	—	1	11,416	—	—	—	—	—	11,417
Share-based compensation expense	—	—	—	12,646	—	—	—	—	—	12,646
Proceeds from stock option exercises	—	3	3	2,346	—	—	—	—	—	2,352
Redemptions of common stock related to stock option exercises	—	(1)	(1)	(25,944)	—	—	—	—	—	(25,946)
Distributions to noncontrolling interests	(23,607)	—	—	—	—	—	—	—	(1,485)	(1,485)
Acquisitions of noncontrolling interests	(12,150)	—	—	3,415	—	—	—	—	—	3,415
Noncontrolling interests assumed related to acquisitions	56,770	—	—	—	—	—	—	—	—	—
Adjustments to redemption amount of redeemable noncontrolling interests	22,798	—	—	—	—	—	—	(22,798)	—	(22,798)
Other	3,761	—	—	(2,288)	—	—	—	—	(21)	(2,309)
Balances as of October 31, 2022	$327,601	$545	$821	$397,337	$5,297	($5,297)	($46,499)	$2,253,932	$42,170	$2,648,306

For the Year Ended October 31, 2023

(in thousands, except per share data)


		HEICO Shareholders' Equity
	Redeemable Noncontrolling Interests	Common Stock	Class A Common Stock	Capital in Excess of Par Value	Deferred Compensation Obligation	HEICO Stock Held by Irrevocable Trust	Accumulated Other Comprehensive Loss	Retained Earnings	Noncontrolling Interests	Total Shareholders' Equity
Balances as of October 31, 2022	$327,601	$545	$821	$397,337	$5,297	($5,297)	($46,499)	$2,253,932	$42,170	$2,648,306
Comprehensive income	29,565	—	—	—	—	—	6,319	403,596	11,923	421,838
Cash dividends ($.20 per share)	—	—	—	—	—	—	—	(27,370)	—	(27,370)
Issuance of common stock for an acquisition	—	—	11	161,362	—	—	—	—	—	161,373
Issuance of common stock to HEICO Savings and Investment Plan	—	—	—	13,677	—	—	—	—	—	13,677
Share-based compensation expense	—	—	—	15,475	—	—	—	—	—	15,475
Proceeds from stock option exercises	—	2	3	6,708	—	—	—	—	—	6,713
Redemptions of common stock related to stock option exercises	—	—	—	(14,847)	—	—	—	—	—	(14,847)
Distributions to noncontrolling interests	(29,654)	—	—	—	—	—	—	—	(6,937)	(6,937)
Acquisitions of noncontrolling interests	(1,059)	—	—	(1,674)	—	—	—	—	—	(1,674)
Noncontrolling interests assumed related to acquisitions	12,137	—	—	—	—	—	—	—	—	—
Adjustments to redemption amount of redeemable noncontrolling interests	23,866	—	—	—	—	—	—	(23,866)	—	(23,866)
Deferred compensation obligation	—	—	—	—	1,021	(1,021)	—	—	—	—
Other	2,351	—	—	771	—	—	—	(308)	—	463
Balances as of October 31, 2023	$364,807	$547	$835	$578,809	$6,318	($6,318)	($40,180)	$2,605,984	$47,156	$3,193,151

The accompanying notes are an integral part of these consolidated financial statements.

5958

Index

HEICO CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Year ended October 31,

2024

2023

2022

2025

2024

2023

Operating Activities:

Net income from consolidated operations

$~~559~~745,~~086~~554

$~~444~~559,~~383~~086

$~~390~~444,~~623~~383

Adjustments to reconcile net income from consolidated operations to net cash provided by operating activities:

Depreciation and amortization

~~175~~196,~~331~~076

~~130~~175,~~043~~331

96130,~~333~~043

Share-based compensation expense

1834,~~775~~381

1518,~~475~~775

1215,~~646~~475

Employer contributions to HEICO Savings and Investment Plan

1720,~~617~~441

1517,~~276~~617

1215,~~180~~276

Impairment of intangible assets

7,500

—

Increase (decrease) in accrued contingent consideration, net

12,920

(9,884)

(686)

Deferred income tax (benefit) provision

(22,002)

(26,531)

8,876

Impairment of intangible assets

—

7,500

—

Decrease in accrued contingent consideration, net

(9,884)

(686)

(7,631)

Amendment and termination of contingent consideration agreement

—

(9,057)

Payment of contingent consideration

(62,~~203~~190)

(6,~~299~~203)

—(6,299)

Amendment and termination of contingent consideration agreement

—

(9,057)

—

Deferred income tax benefit

(48,565)

(22,002)

(26,531)

Changes in operating assets and liabilities, net of acquisitions:

Increase in accounts receivable

(2075,~~815~~576)

(6520,~~595~~815)

(2965,~~272~~595)

Decrease (increase) in contract assets

1,294

(11,642)

(4,148)

(Increase) decrease in contract assets

(6,510)

1,294

(11,642)

Increase in inventories

(~~132~~44,~~934~~850)

(~~124~~132,~~782~~934)

(89124,~~186~~782)

(Increase) decrease in prepaid expenses and other current assets

(23,029)

5,599

(10,077)

Decrease (increase) in prepaid expenses and other current assets

15,423

(23,029)

5,599

(Decrease) increase in trade accounts payable

(9,823)

10,975

25,567

Increase (decrease) in trade accounts payable

27,593

(9,823)

10,975

Increase in accrued expenses and other current liabilities

2244,~~095~~605

7222,~~589~~095

3472,~~122~~589

Increase (decrease) in income taxes payable

20,220

(4,505)

11,597

(Decrease) increase in income taxes payable

(19,427)

20,220

(4,505)

Net changes in other long-term liabilities and assets related to HEICO Leadership Compensation Plan

2123,~~618~~533

1321,~~512~~618

1513,~~398~~512

Other

5310,~~524~~858

~~(10~~53,~~020)~~524

~~828~~(10,020)

Net cash provided by operating activities

~~672~~934,~~370~~266

~~448~~672,~~735~~370

~~467~~448,~~856~~735

Investing Activities:

Acquisitions, net of cash acquired

(~~219~~629,~~293~~828)

(2219,~~421,788~~293)

(~~347~~2,~~308~~421,788)

Capital expenditures

(5872,~~261~~886)

(4958,~~434~~261)

(3149,~~982~~434)

Investments related to HEICO Leadership Compensation Plan

(1932,~~910~~958)

(1819,~~892~~910)

(1518,~~300~~892)

Other

43,~~264~~981

54,~~647~~264

(15,~~239)~~647

Net cash used in investing activities

(~~293~~731,~~200~~691)

(2293,~~484,467~~200)

(~~395~~2,~~829~~484,467)

Financing Activities:

Payments on revolving credit facility

(~~365~~550,000)

(~~989~~365,000)

(~~212~~989,000)

Proceeds from issuance of senior unsecured notes

—

~~1,189,452~~—

—1,189,452

Borrowings on revolving credit facility

~~130~~495,000

1130,~~964,~~000

~~262~~1,964,000

Distributions to noncontrolling interests

(3438,~~318~~484)

(3634,~~591~~318)

(2536,~~092~~591)

Redemptions of common stock related to stock option exercises

(29,912)

(14,847)

(25,946)

Cash dividends paid

(31,968)

(29,069)

(27,370)

Cash dividends paid

(29,069)

(27,370)

(24,466)

Redemptions of common stock related to stock option exercises

(22,386)

(29,912)

(14,847)

Acquisitions of noncontrolling interests

(26,567)

(2,733)

(8,735)

Payment of contingent consideration

(5,954)

(24,797)

(12,610)

Payment of contingent consideration

(24,797)

(12,610)

(320)

Acquisitions of noncontrolling interests

(5,773)

(26,567)

(2,733)

Payments on short-term debt, net

~~(13,924)~~—

(113,~~593~~924)

—(1,593)

Debt issuance costs

—

~~(10,060)~~—

(110,~~010~~060)

Proceeds from stock option exercises

713,~~951~~212

67,~~713~~951

26,~~352~~713

Other

(34,~~757~~324)

(~~312~~3,757)

(~~616~~312)

Net cash (used in) provided by financing activities

(~~389~~150,~~393~~677)

2(389,~~065,049~~393)

~~(33~~2,~~833)~~065,049

Effect of exchange rate changes on cash

13,~~278~~780

21,~~227~~278

(62,~~988)~~227

Net (decrease) increase in cash and cash equivalents

(8,945)

31,544

31,206

Net increase (decrease) in cash and cash equivalents

55,678

(8,945)

31,544

Cash and cash equivalents at beginning of year

~~171~~162,~~048~~103

~~139~~171,~~504~~048

~~108~~139,~~298~~504

Cash and cash equivalents at end of year

$~~162~~217,~~103~~781

$~~171~~162,~~048~~103

$~~139~~171,~~504~~048

The accompanying notes are an integral part of these consolidated financial statements.

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HEICO CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

HEICO Corporation, through its principal subsidiaries consisting of HEICO Aerospace Holdings Corp. (“HEICO Aerospace”), HEICO Flight Support Corp. ("HFSC") and HEICO Electronic Technologies Corp. (“HEICO Electronic”) and their respective subsidiaries (collectively, the “Company”), is principally engaged in the design, manufacture and sale of aerospace, defense and electronic -related products and services throughout the United States ("U.S.") and internationally. The Company’s customer base is primarily the aviation, defense, space, medical, telecommunications and electronics industries.

Basis of Presentation

The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace and HFSC and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic and its subsidiaries.

In The ~~Note~~consolidated 15financial statements include the financial accounts of HEICO Corporation and its direct subsidiaries, ~~Operating~~all ~~Segments~~of which are wholly owned except for HEICO Aerospace, which is 20% owned by Lufthansa Technik AG ("LHT"), the ~~Company’s~~technical ~~long-lived~~services ~~asset~~subsidiary ~~amounts~~of ~~for~~Lufthansa ~~fiscal~~German ~~years~~Airlines. HFSC ~~2023~~consolidates seven subsidiaries which are 74%, 82%, 84%, 85.1%, 89%, 95%, and ~~2022~~96% ~~have~~owned, ~~been~~respectively, ~~adjusted~~three tosubsidiaries ~~align~~that ~~with~~are ~~the~~each ~~current~~90% ~~year~~owned ~~presentation~~and four subsidiaries that are each 80.1% owned. In addition, HEICO Aerospace consolidates a joint venture, which is 84% owned. HEICO Electronic consolidates four subsidiaries that are each 80.1% owned, two subsidiaries that are each 75% owned, two subsidiaries that are each 92.5% owned, and ~~now~~seven ~~include~~subsidiaries ~~the~~which ~~Company's~~are ~~operating~~80.4%, ~~lease~~82.5%, ~~right-~~90%, 90.7%, 92.4%, 92.7%, and 95.9% owned, respectively. Certain subsidiaries of~~-use~~ ~~assets~~HEICO ~~for~~Electronic ~~those~~consolidate ~~periods~~subsidiaries that are less than wholly owned. See Note 13, Redeemable Noncontrolling Interests. All intercompany balances and transactions are eliminated.

The consolidated financial statements include the financial accounts of HEICO Corporation and its direct subsidiaries, all of which are wholly owned except for HEICO Aerospace, which is 20% owned by Lufthansa Technik AG ("LHT"), the technical services subsidiary of Lufthansa German Airlines. HFSC consolidates six subsidiaries which are 74%, 82%, 84%, 90.1%, 89% and 96% owned, respectively, two subsidiaries that are each 90% owned and five subsidiaries that are each 80.1% owned. In addition, HEICO Aerospace consolidates a joint venture, which is 84% owned. HEICO Electronic consolidates four subsidiaries that are each 80.1% owned, two subsidiaries that are each 75% owned, and nine subsidiaries which are 80.4%, 82.5%, 87.9%, 88.8%, 90%, 90.7%, 92.5%, 92.7% and 95.9% owned, respectively. Certain subsidiaries of HEICO Electronic consolidate subsidiaries that are less than wholly owned. See Note 13, Redeemable Noncontrolling Interests. All intercompany balances and transactions are eliminated.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

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revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

For purposes of the consolidated financial statements, the Company considers all highly liquid investments such as U.S. Treasury bills and money market funds with an original maturity of three months or less at the time of purchase to be cash equivalents.

Accounts Receivable

Accounts receivable consist of amounts billed and currently due from customers. The valuation of accounts receivable requires that the Company set up an allowance for estimated uncollectible accounts and record a corresponding charge to bad debt expense. The Company estimates uncollectible receivables based on such factors as its prior experience, its appraisal of a customer’s ability to pay, age of receivables outstanding and economic conditions within and outside of the aviation, defense, space, medical, telecommunications and electronics industries.

Contract Assets and Contract Liabilities

Contract assets (unbilled receivables) represent revenue recognized on contracts using an over-time recognition model in excess of amounts invoiced to the customer. Contract liabilities (deferred revenue) represent customer advances and billings in excess of revenue recognized and are included within accrued expenses and other current liabilities and other long-term liabilities in the Company’s Consolidated Balance Sheets. See Note 6, Revenue, for additional information regarding the Company's contract assets and contract liabilities.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and trade accounts receivable. The Company places its temporary cash investments with high credit quality financial institutions and limits the amount of credit exposure to any one financial institution. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising the Company’s customer base and their dispersion across many different geographical regions. The Company performs ongoing credit evaluations of its customers, but does not generally require collateral to support customer receivables.

Inventory

Inventory is stated at the lower of cost or net realizable value, with cost being determined on the first-in, first-out or the average cost basis. Losses, if any, are recognized fully in the period when they are identified. The Company periodically evaluates the carrying value of inventory, giving consideration to factors such as its physical condition, sales patterns and expected future demand in order to estimate the amount necessary to write down any slow moving, obsolete or damaged inventory. These estimates could vary significantly from actual amounts based upon future economic conditions, customer inventory levels or competitive factors that were not foreseen or did not exist when the estimated write-downs were made. In

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damaged inventory. These estimates could vary significantly from actual amounts based upon future economic conditions, customer inventory levels or competitive factors that were not foreseen or did not exist when the estimated write-downs were made. In accordance with industry practice, all inventories are classified as a current asset including portions with long production cycles, some of which may not be realized within one year.

Property, Plant and Equipment

Property, plant and equipment is recorded at cost. Depreciation and amortization is generally provided on the straight-line method over the estimated useful lives of the various assets. The Company’s property, plant and equipment is generally depreciated over the following estimated useful lives:


Buildings and improvements	10	to	40	years
Machinery and equipment	3	to	10	years
Leasehold improvements	2	to	20	years
Tooling	2	to	5	years

The costs of major additions and improvements are capitalized. Leasehold improvements are amortized over the shorter of the leasehold improvement’s useful life or the lease term.

Repairs and maintenance costs are expensed as incurred. Upon an asset's disposition, its cost and related accumulated depreciation are removed from the financial accounts and any resulting gain or loss is reflected within earnings.

Leases

The Company’s lease arrangements primarily pertain to manufacturing facilities, office buildings, equipment, land and vehicles. The Company evaluates whether a contractual arrangement that provides it with control over the use of an asset is, or contains, a lease at the inception date. The term of a lease is inclusive of any option to renew, extend, or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company classifies a lease as operating or finance using the classification criteria set forth in Accounting Standards Codification ("ASC") Topic 842. HEICO recognizes lease right-of-use (“ROU”) assets and corresponding lease liabilities as of the lease commencement date based on the present value of the lease payments over the lease term. The discount rate used to calculate the present value of the Company’s leases is based on HEICO’s incremental borrowing rate and considers credit risk, the lease term and other available information as of the commencement date since the leases do not provide a readily determinable implicit rate. Variable lease payments that depend on an index or a rate are included in the determination of ROU assets and lease liabilities using the index or rate at the lease commencement date. Variable lease payments that do not depend on an index or rate or resulting from changes in an index or rate subsequent to the lease commencement date, are recorded as lease expense in the period in which the obligation for the payment is incurred. The Company’s ROU assets are increased by any prepaid lease payments and initial direct costs and reduced by any lease incentives. The Company’s leases do not contain any material residual value guarantees or restrictive covenants. See Note 9, Leases, for additional information regarding the Company’s accounting policy for leases.

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contain any material residual value guarantees or restrictive covenants. See Note 9, Leases, for additional information regarding the Company’s accounting policy for leases.

Business Combinations

The Company allocates the purchase price of acquired entities to the underlying tangible and identifiable intangible assets acquired and liabilities and any noncontrolling interests assumed based on their estimated fair values, with any excess recorded as goodwill. The operating results of acquired businesses are included in the Company’s results of operations beginning as of their effective acquisition dates. Acquisition costs were not material in fiscal ~~2024~~2025 and ~~2022~~2024. Acquisition costs totaled $25.4 million in fiscal 2023 of which $21.6 million was recorded as a component of selling, general and administrative ("SG&A") expenses and $3.8 million was recorded to interest expense in the Company's Consolidated Statement of Operations. See Note 2, Acquisitions, for additional information regarding the Company's fiscal 2023 acquisition costs.

For contingent consideration arrangements, a liability is recognized at fair value as of the acquisition date with subsequent fair value adjustments recorded in operations. Additional information regarding the Company's contingent consideration arrangements may be found in Note 2, Acquisitions, and Note 8, Fair Value Measurements.

Goodwill and Other Intangible Assets

The Company tests goodwill for impairment annually as of October 31, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may exceed its fair value. When testing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the estimated fair value of a reporting unit is less than its carrying amount. If the Company elects to perform a qualitative assessment and determine that an impairment is more-likely-than-not, the Company is then required to perform a quantitative impairment test, otherwise no further analysis is required. The Company may ~~also may~~ elect not to perform a qualitative assessment and, instead, proceed directly to a quantitative impairment test. When performing the quantitative impairment test, the Company compares the fair value of each of its reporting units to its carrying value to determine potential impairment and an impairment loss is recognized in the amount by which the carrying value of a reporting unit’s goodwill exceeds its fair value. The fair values of the Company's reporting units are determined by using a weighted average of a market approach and an income approach. Under the market approach, fair values are estimated using published market multiples for comparable companies. The Company calculates fair values under the income approach by taking estimated future cash flows that are based on internal projections and other assumptions deemed reasonable by management and discounting them using an estimated weighted average cost of capital.

The Company’s intangible assets not subject to amortization consist principally of its trade names. The Company’s intangible assets subject to amortization are amortized on the straight-line method (except for customer relationships, which are amortized on an accelerated method) over the following estimated useful lives:

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straight-line method (except for customer relationships, which are amortized on an accelerated method) over the following estimated useful lives:


Customer relationships	3	to	17	years
Intellectual property	3	to	22	years
Other	5	to	19	years

Amortization expense of intellectual property is recorded as a component of cost of sales and amortization expense of customer relationships is recorded as a component of SG&A expenses in the Company’s Consolidated Statements of Operations. The Company tests each non-amortizing intangible asset for impairment annually as of October 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. To derive the fair value of its trade names, the Company utilizes an income approach, which relies upon management's assumptions of royalty rates, projected revenues and discount rates. The Company also tests each amortizing intangible asset for impairment if events or circumstances indicate that the asset might be impaired. The test consists of determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the undiscounted future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The determination of fair value requires management to make a number of estimates, assumptions and judgments of such factors as projected revenues and earnings and discount rates.

Customer Rebates and Credits

The Company records accrued customer rebates and credits as a component of accrued expenses and other current liabilities in its Consolidated Balance Sheets. These amounts generally relate to discounts negotiated with customers as part of certain sales contracts that are usually tied to sales volume thresholds. The Company accrues customer rebates and credits as a reduction within net sales as the revenue is recognized based on the estimated level of discount rate expected to be earned by each customer over the life of the contractual rebate period (generally one year). Accrued customer rebates and credits are monitored by management and discount levels are updated at least quarterly.

Product Warranties

Product warranty liabilities are estimated at the time of shipment and recorded as a component of accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets. The amount recognized is based on historical claims experience.

Defined Benefit Pension Plan

In connection with a prior acquisition, the Company assumed a frozen qualified defined benefit pension plan (the "Plan"). The Plan's benefits are based on employee compensation and years of service; however, the accrued benefit for Plan participants was fixed as of the date of acquisition. The Company uses an actuarial valuation to determine the projected benefit obligation of the Plan and records the difference between the fair value of the Plan's assets and

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~~acquisition. The Company uses an actuarial valuation to determine~~ the projected benefit obligation ~~of the Plan and records the difference between the fair value of the Plan's assets and the projected benefit obligation~~ as of October 31 in other long-term liabilities in its Consolidated Balance Sheets, but reclassifies any excess funded amounts to other long-term assets. Additionally, any actuarial gain or loss that arises during a fiscal year that is not recognized as a component of net periodic pension income or expense is recorded as a component of other comprehensive income or (loss), net of tax. The following table presents the fair value of the Plan's assets and projected benefit obligation as of October 31, for each of the last two fiscal years (in thousands):

	As of October 31,
	2024	2023
	2025	2024
Fair value of plan assets	$1110,~~165~~842	$1011,~~025~~165
Projected benefit obligation	9,~~875~~621	9,~~592~~875
Funded status	$1,~~290~~221	$~~433~~1,290

Revenue Recognition

The Company recognizes revenue when it transfers control of a promised good or service to a customer in an amount that reflects the consideration it expects to receive in exchange for the good or service. The Company’s performance obligations are satisfied and control is transferred either at a point- in- time or over- time. The majority of the Company’s revenue is recognized at a point- in- time when control is transferred, which is generally evidenced by the shipment or delivery of the product to the customer, a transfer of title, a transfer of the significant risks and rewards of ownership, and customer acceptance. For certain contracts under which the Company produces products with no alternative use and for which it has an enforceable right to recover costs incurred plus a reasonable profit margin for work completed to date and for certain other contracts under which the Company creates or enhances a customer-owned asset while performing repair and overhaul services, control is transferred to the customer over- time. The Company recognizes revenue using an over- time recognition model for these types of contracts.

The Company accounts for a contract with a customer when it has approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance, and it is probable that the Company will collect the consideration to which it is entitled to receive. Customer payment terms related to the sale of products and the rendering of services vary by Company subsidiary and product line. The time between receipt of payment and recognition of revenue for satisfaction of the related performance obligation is not significant.

A performance obligation is a promise within a contract to transfer a distinct good or service to the customer in exchange for payment and is the unit of account for recognizing revenue. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied. The majority of the Company’s contracts have a single performance obligation to transfer goods or services. For contracts with more than one performance obligation, the Company allocates the transaction price to each performance obligation based on its estimated standalone selling price. When standalone selling prices are not available, the transaction price is allocated using an expected

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~~price to each performance obligation based on its estimated standalone selling price. When standalone selling prices are not available, the transaction price is allocated using an expected~~ cost -plus margin approach as pricing for such contracts is typically negotiated on the basis of cost.

The Company accounts for contract modifications prospectively when the remaining goods or services are distinct and on a cumulative catch-up basis when the remaining goods or services are not distinct.

The Company provides assurance type warranties on many of its products and services. Since customers cannot purchase such warranties independently of the products or services under contract and they are not priced separately, warranties are not separate performance obligations.

The Company utilizes the cost-to-cost method as a measure of progress for performance obligations that are satisfied over- time as it believes this input method best represents the transfer of control to the customer. Under this method, revenue for the current period is recorded at an amount equal to the ratio of costs incurred to date divided by total estimated contract costs multiplied by (i) the transaction price, less (ii) cumulative revenue recognized in prior periods. Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation.

Under the cost-to-cost method, the extent of progress toward completion is measured based on the proportion of costs incurred to date to the total estimated costs at completion of the performance obligation. These projections require the Company to make numerous assumptions and estimates relating to items such as the complexity of design and related development costs, performance of subcontractors, availability and cost of materials, labor productivity and cost, overhead, capital costs, and manufacturing efficiency. The Company reviews its cost estimates on a periodic basis, or when circumstances change and warrant a modification to a previous estimate. Cost estimates are largely based on negotiated or estimated purchase contract terms, historical performance trends and other economic projections.

For certain contracts with similar characteristics and for which revenue is recognized using an over- time model, the Company uses a portfolio approach to estimate the amount of revenue to recognize. For each portfolio of contracts, the respective work in process and/or finished goods inventory balances are identified and the portfolio-specific margin is applied to estimate the pro rata portion of the transaction price to recognize in relation to the costs incurred. This approach is utilized only when the resulting revenue recognition is not expected to be materially different than if the accounting was applied to the individual contracts.

Certain of the Company’s contracts give rise to variable consideration when they contain items such as customer rebates, credits, volume purchase discounts, penalties and other provisions that may impact the total consideration the Company will receive. The Company includes variable consideration in the transaction price generally by applying the most likely amount method of the consideration that it expects to be entitled to receive based on an assessment of all available information (i.e., historical experience, current and forecasted performance) and only to the extent it is probable that a significant reversal of revenue recognized will not occur when the uncertainty is resolved. The Company estimates variable

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~~performance) and only to the extent it is probable that a significant reversal of revenue recognized will not occur when the uncertainty is resolved. The Company estimates variable~~ consideration by applying the most likely amount method when there are a limited number of outcomes related to the resolution of the variable consideration. See Note 6, Revenue, for additional information regarding the Company’s revenue recognition policy.

Changes in estimates that result in adjustments to net sales and cost of sales are recognized as necessary in the period they become known on a cumulative catch-up basis. Changes in estimates did not have a material effect on net income from consolidated operations in fiscal ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023.

Stock-Based Compensation

The Company records compensation expense ~~associated~~for ~~with~~ stock options in its Consolidated Statements of Operations based on the grant -date fair value of ~~those~~the awards. The fair value of each stock option on the ~~date of~~ grant date is estimated using the Black-Scholes option-pricing model ~~based~~and on certain valuation assumptions. Expected stock price volatility is ~~based~~derived onfrom the Company’s historical stock prices over the expected life of the option ~~grant~~ and other relevant factors. The risk-free interest rate ~~used~~ is based on the ~~published~~ U.S. Treasury yield curve in effect at the time of ~~the option~~ grant for instruments with a similar ~~life~~term. The dividend yield reflects the Company’s expected dividend yield aton the ~~date of~~ grant date. The expected option life represents the period of time ~~that~~ the ~~stock~~ options are expected to beremain outstanding, ~~taking~~considering ~~into~~both ~~consideration~~ the contractual term of the ~~option~~ grant and ~~employee~~employees’ historical exercise behavior. The Company’s historical ~~rate of~~ forfeiture rate is nominal and therefore ~~not~~excluded ~~included~~from ~~when estimating~~ the grant -date fair value ~~of stock option awards~~estimation. As such, the ~~Company recognizes the~~ impact of forfeitures ~~when~~is recognized as they occur. ~~The Company generally recognizes stock option compensation expense ratably over the award’s vesting period.~~

During fiscal 2025, the Company granted stock options that included a performance condition. Each tranche of these graded-vesting awards is treated as a separate award for valuation purposes, with fair value determined at the grant date using the Black-Scholes model and tranche-specific assumptions. Compensation expense for these awards is recognized using an accelerated attribution method over the requisite service period, based on the assessed probability of achieving the performance condition. If achievement of the performance condition is not considered probable, no expense is recognized until such time that achievement becomes probable. See Note 11, Share-Based Compensation, for additional information.

Income Taxes

Income tax expense includes U.S. and foreign income taxes. Deferred income taxes are provided on elements of income that are recognized for financial reporting purposes in periods different from when recognized for income tax purposes. Deferred tax assets and liabilities are recognized for the tax effects of temporary differences between the financial reporting and income tax bases of assets and liabilities and are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. Tax law and rate changes are reflected in income in the period such changes are enacted. The Company's policy is to recognize interest and penalties related to income tax matters as a component of income tax expense and to treat any tax on Global Intangible Low-Taxed Income ("GILTI") as a current period income tax expense. Further information regarding income taxes can be found in Note 7, Income Taxes.

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Redeemable Noncontrolling Interests

As further detailed in Note 13, Redeemable Noncontrolling Interests, the holders of equity interests in certain of the Company’s subsidiaries have rights (“Put Rights”) that require the Company to provide cash consideration for their equity interests (the “Redemption Amount”) at fair value or at a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. The Put Rights are embedded in the shares owned by the noncontrolling interest holders and are not freestanding.

The Company tracks the carrying cost of such redeemable noncontrolling interests at historical cost plus an allocation of subsidiary earnings based on ownership interest, less dividends paid to the noncontrolling interest holders. Redeemable noncontrolling interests are recorded outside of permanent equity at the higher of their carrying cost or management’s estimate of the Redemption Amount. The initial adjustment to record redeemable noncontrolling interests at the Redemption Amount results in a corresponding decrease to retained earnings. Subsequent adjustments to the Redemption Amount of redeemable noncontrolling interests may result in corresponding decreases or increases to retained earnings, provided any increases to retained earnings may only be recorded to the extent of decreases previously recorded. Adjustments to Redemption Amounts based on fair value will have no effect on net income per share attributable to HEICO shareholders whereas the portion of periodic adjustments to the carrying amount of redeemable noncontrolling interests based solely on a multiple of future earnings that reflect a redemption amount in excess of fair value will affect net income per share attributable to HEICO shareholders. Acquisitions of redeemable noncontrolling interests are treated as equity transactions.

Net Income per Share Attributable to HEICO Shareholders

Basic net income per share attributable to HEICO shareholders is computed by dividing net income attributable to HEICO by the weighted average number of common shares outstanding during the period. Diluted net income per share attributable to HEICO shareholders is computed by dividing net income attributable to HEICO by the weighted average number of common shares outstanding during the period plus potentially dilutive common shares arising from the assumed exercise of stock options, if dilutive. The dilutive impact of potentially dilutive common shares is determined by applying the treasury stock method.

Foreign Currency

All assets and liabilities of foreign subsidiaries that do not utilize the U.S. dollar as its functional currency are translated at period-end exchange rates, while revenue and expenses are translated using average exchange rates for the period. Unrealized translation gains or losses are reported as foreign currency translation adjustments through other comprehensive income or (loss) in shareholders’ equity. Transaction gains or losses related to monetary balances denominated in a currency other than the functional currency are recorded in the Company's Consolidated Statements of Operations.

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Contingencies

Losses for contingencies such as product warranties, litigation and environmental matters are recognized in income when they are probable and can be reasonably estimated. Gain contingencies are not recognized in income until they have been realized.

New Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, “"Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,”" which expands reportable segment disclosure requirements by requiring ~~disclosures~~disclosure of significant ~~reportable~~ segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment'’s profit or loss. The ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment'’s profit or loss in assessing segment performance and ~~deciding~~allocating ~~how to allocate~~ resources. Additionally, ASU 2023-07 requires all segment profit or loss and ~~assets~~asset disclosures to be provided on both an annual and interim basis. The Company adopted ASU 2023-07 ~~is effective for fiscal years beginning after December 15, 2023, or~~ in ~~fiscal~~the ~~2025~~fourth ~~for~~quarter ~~HEICO,~~of ~~and interim reporting periods within~~ fiscal ~~years beginning one year later~~2025. ~~Early adoption is permitted.~~ The adoption of ~~this~~ASU ~~guidance~~2023-07 ~~will~~did not affect the Company'’s consolidated financial position, results of operations, ~~financial position~~ or cash flows. See ~~and~~Note ~~the~~15, ~~Company~~Operating isSegments, ~~currently~~for ~~evaluating~~ the ~~effect~~Company's ~~the~~enhanced ~~guidance~~segment ~~will have on its~~ disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires disclosure of specific categories in the annual effective tax rate reconciliation table and further disaggregation for reconciling items that meet a quantitative threshold. The ASU also requires the disaggregation of income taxes paid by jurisdiction. ASU 2023-09 may be applied either prospectively or retrospectively and is effective for fiscal years beginning after December 15, 2024, or in fiscal 2026 for HEICO. Early adoption is permitted. The adoption of this guidance will not affect the Company's consolidated results of operations, financial position or cash flows and the Company is currently evaluating the effect the guidance will have on its disclosures.

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which requires more detailed disclosures about specified categories of expenses (including purchases of inventory, employee compensation, intangible asset amortization, and depreciation) included in certain expense captions presented on the face of the income statement (such as cost of sales and SG&A expenses). ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, or in fiscal 2028 for HEICO, and interim reporting periods within fiscal years beginning one year later. Early adoption is permitted. The adoption of this guidance will not affect the Company's consolidated results of operations, financial position or cash flows and the Company is currently evaluating the effect the guidance will have on its disclosures.

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2. ACQUISITIONS

Wencor Acquisition

On August 4, 2023, the Company acquired Wencor Group ("Wencor") from affiliates of Warburg Pincus LLC and Wencor’s management (the “Wencor Acquisition”). The Wencor Acquisition was completed pursuant to an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, its newly formed wholly owned subsidiary Magnolia MergeCo Inc. (“Merger Sub”), Jazz Parent, Inc., the owner of Wencor (“Target”), and Jazz Topco GP LLC, solely in its capacity as representative for purposes of certain provisions of the Merger Agreement. Pursuant to the Merger Agreement, Merger Sub merged with and into the Target, and the Target continued as the surviving entity and a wholly owned subsidiary of the Company. Subsequent to the acquisition date, the Company integrated Wencor into the FSG. Wencor is a large commercial and military aircraft aftermarket company offering factory-new FAA-approved aircraft replacement parts, value-added distribution of high-use commercial and military aftermarket parts, and aircraft and engine accessory component repair and overhaul services. Wencor expands the Company’s aftermarket product offerings, enabling the combined company to offer even greater savings and capabilities to its customers, while expanding its new products and services development capacity. The aggregate purchase price consisted of $1.9 billion in cash, subject to certain working capital, debt and other customary adjustments, and 1,137,628 shares of HEICO Class A Common Stock. The cash consideration was paid using proceeds from the Company's revolving credit facility and from the sale of senior unsecured notes. See Note 5, ~~Short-Term and~~ Long-Term Debt, for additional information. The total consideration included an accrual of $17.0 million as of the acquisition date representing the estimated fair value of contingent consideration the Company may have been obligated to pay in accordance with an agreement it assumed related to an acquisition Wencor consummated in fiscal 2023 prior to the Wencor Acquisition. ~~See Note 8, Fair Value Measurements, for additional information regarding the Company’s contingent consideration obligation.~~

The following table summarizes the total consideration for the acquisition of Wencor (in thousands):


Cash paid						$1,923,098
Less: cash acquired						(29,984)
Cash paid, net						1,893,114
Issuance of common stock for an acquisition						161,373
Additional purchase consideration						(121)
Total consideration paid, net						$2,054,366

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Index

The following table summarizes the allocation of the total consideration for the acquisition of Wencor to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands):


Assets acquired:
Goodwill						$1,260,085
Customer relationships						397,400
Intellectual property						120,400
Trade names						53,200
Inventories						250,798
Accounts receivable						105,872
Property, plant and equipment						36,251
Contract assets						5,276
Other assets						30,230
Total assets acquired, excluding cash						2,259,512

Liabilities assumed:
Accrued expenses						63,024
Accounts payable						56,187
Deferred income taxes						56,753
Other liabilities						29,182
Total liabilities assumed						205,146

Net assets acquired, excluding cash						$2,054,366

The primary items that generated the goodwill recognized were the premiums paid by the Company for the future earnings potential of Wencor and the value of its assembled workforce that do not qualify for separate recognition. The weighted-average amortization periods of the customer relationships, intellectual property and trade names acquired are 13 years, 14 years and indefinite, respectively. Acquisition costs associated with the purchase of Wencor totaled $20.0 million in fiscal 2023 and were expensed in the Company's Consolidated Statement of Operations. The acquisition costs were recorded to SG&A expenses with the exception of a $3.8 million fee paid in August 2023 and charged to interest expense upon the termination of the May 14, 2023 commitment letter with Truist Bank and Truist Securities, Inc., as amended, related to a bridge financing to finance a portion of the Wencor Acquisition as such financing was no longer necessary. The operating results of Wencor were included in the Company’s results of operations from the effective acquisition date. The Company's consolidated net sales and net income attributable to HEICO for the fiscal year ended October 31, 2023 includes approximately $185.7 million and $22.6 million, respectively, from the acquisition of Wencor.

Had the acquisition of Wencor occurred as of November 1, 2021, net sales on a pro forma basis for fiscal 2023 would have been $3,476.3 million and net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share

7271

Index

attributable to HEICO shareholders on a pro forma basis for fiscal 2023 would not have been materially different than the reported amounts. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the results of operations that actually would have been achieved if the acquisition had taken place as of November 1, 2021.

The following table presents unaudited pro forma financial information for fiscal 2022 as if the acquisition of Wencor had occurred as of November 1, 2021 (in thousands, except per share data):

Year ended,

October 31, 2022

Net sales

$2,682,328

Net income from consolidated operations

$365,189

Net income attributable to HEICO

$326,241

Net income per share attributable to HEICO shareholders:

Basic

$2.38

Diluted

$2.34

The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the results of operations that actually would have been achieved if the acquisition had taken place as of November 1, 2021. The unaudited pro forma financial information includes adjustments to historical amounts such as increased interest expense associated with debt used to finance the acquisition, the reclassification of acquisition costs associated with the purchase of Wencor from fiscal 2023 to fiscal 2022 and additional amortization expense related to the intangible assets acquired.

Exxelia Acquisition

On January 5, 2023, the Company, through HEICO Electronic, acquired 93.69% of the outstanding common stock and all of the preferred stock of Exxelia International SAS (“Exxelia”). Exxelia designs, manufactures and sells high reliability (“Hi-Rel”), complex, passive electronic components and rotary joint assemblies for mostly aerospace and defense applications, in addition to other high-end applications, such as medical and energy uses, including emerging “clean energy” and electrification applications. The Company believes that this acquisition will further HEICO's strategy of expanding its already wide range of mission-critical and Hi-Rel components for the most demanding applications, as well as provide HEICO with added broad geographic and product diversity, including in the important European market. The majority of the remaining 6.31% interest is owned by certain members of Exxelia's management team. Additionally, as a result of this acquisition, the Company also obtained a 90% ownership interest in Alcon Electronics Pvt. Ltd. (“Alcon”), which is an existing subsidiary of Exxelia. The remaining 10% interest continues to be owned by a certain member of Alcon’s management team. See Note 13, Redeemable Noncontrolling Interests, for additional information. The purchase price of this acquisition was paid in cash, using proceeds from the

Company's revolving credit facility.

Index

The following table summarizes the total consideration for the acquisition of Exxelia (in thousands):


Cash paid						$515,785
Less: cash acquired						(11,789)
Total consideration paid, net						$503,996

As noted above, the Company acquired all of the preferred stock of Exxelia. Pursuant to the terms of the acquisition, Exxelia’s preferred stock accrues dividends at 5.18% per annum.

Index

The following table summarizes the allocation of the total consideration for the acquisition of Exxelia to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed (in thousands):


Assets acquired:
Goodwill						$328,197
Customer relationships						61,943
Intellectual property						44,044
Trade names						21,703
Property, plant and equipment						54,452
Inventories						50,481
Accounts receivable						41,708
Other assets						13,946
Total assets acquired, excluding cash						616,474

Liabilities assumed:
Deferred income taxes						31,327
Accounts payable						21,773
Accrued expenses						18,159
Short-term debt						15,082
Other liabilities						13,982
Total liabilities assumed						100,323

Noncontrolling interests in consolidated subsidiaries						12,155

Net assets acquired, excluding cash						$503,996

The primary items that generated the goodwill recognized were the premiums paid by the Company for the future earnings potential of Exxelia and the value of its assembled workforce that do not qualify for separate recognition, however, benefit both the Company and the noncontrolling interest holders. The fair value of the noncontrolling interests were determined based on the consideration paid by the Company for its controlling ownership interest adjusted for a lack of control that a market participant would consider when estimating the fair value of the noncontrolling interest. The weighted-average amortization periods of the customer relationships, intellectual property and trade names acquired are 15 years, 15 years and indefinite, respectively. Acquisition costs associated with the purchase of Exxelia totaled $5.5 million, of which $5.1 million was incurred in fiscal 2023, and were recorded to SG&A expenses in the Company's Consolidated Statement of Operations. The operating results of Exxelia were included in the Company’s results of operations from the effective acquisition date. The Company's consolidated net sales for the fiscal year ended October 31, 2023 includes approximately $179.0 million from the acquisition of Exxelia. Net income attributable to

7473

Index

based on the consideration paid by the Company for its controlling ownership interest adjusted for a lack of control that a market participant would consider when estimating the fair value of the noncontrolling interest. The weighted-average amortization periods of the customer relationships, intellectual property and trade names acquired are 15 years, 15 years and indefinite, respectively. Acquisition costs associated with the purchase of Exxelia totaled $5.5 million, of which $5.1 million was incurred in fiscal 2023, and were recorded to SG&A expenses in the Company's Consolidated Statement of Operations. The operating results of Exxelia were included in the Company’s results of operations from the effective acquisition date. The Company's consolidated net sales for the fiscal year ended October 31, 2023 includes approximately $179.0 million from the acquisition of Exxelia. Net income attributable to HEICO for the fiscal year ended October 31, 2023 was not materially impacted by the acquisition of Exxelia.

Had the acquisition of Exxelia occurred as of November 1, 2021, net sales ~~on a pro forma basis for fiscal 2023 would not have been materially different than the reported amount and net sales on a pro forma basis for fiscal 2022 would have been $2~~,~~402.5 million. Additionally,~~ net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO shareholders on a pro forma basis for fiscal 2023 ~~and 2022~~ would not have been materially different than the reported amounts. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the results of operations that actually would have been achieved if the acquisition had taken place as of November 1, 2021. The unaudited pro forma financial information includes adjustments to historical amounts such as increased interest expense associated with borrowings to finance the acquisition, the reclassification of acquisition costs associated with the purchase of Exxelia from fiscal 2023 to fiscal 2022, additional amortization expense related to the intangible assets acquired, and inventory purchase accounting adjustments charged to cost of sales as the inventory is sold.

Other Acquisitions

In ~~October~~July ~~2024~~2025, the Company, through ~~a subsidiary of~~ HEICO Electronic, acquired ~~87.9~~100% of the stock of ~~Mid~~Gables ~~Continent Controls~~Engineering, Inc. (~~“MC2”~~"Gables"). ~~The~~Gables ~~remaining~~designs ~~12.1%~~and ~~interest~~manufactures ~~continues~~advanced tosolutions befor ~~owned~~aerospace byplatforms, ~~certain~~including ~~members~~cockpit ofdisplays ~~MC2's~~and ~~management~~other ~~team. See~~avionics ~~Note~~components ~~13,~~such ~~Redeemable~~as ~~Noncontrolling~~navigation, ~~Interests~~audio, ~~for~~surveillance, ~~additional information. MC2 designs~~ and ~~manufacturers~~communication ~~proprietary~~panels ~~in-cabin power and entertainment components and subsystems~~ for ~~business~~a ~~jets. The~~wide ~~purchase~~range ~~price~~ of ~~this acquisition was paid in cash using cash provided by operating activities~~aircraft.

In ~~September~~April ~~2024~~2025, the Company, through a subsidiary of HEICO Electronic, acquired ~~92.5~~100% of the ~~stock~~membership interests of ~~Marway~~Rosen ~~Power Solutions~~Aviation, ~~Inc.~~LLC (~~“Marway”~~"Rosen"). ~~The~~Rosen ~~remaining~~designs ~~7.5%~~and ~~interest~~manufactures ~~continues~~in-flight toentertainment beproducts, ~~owned~~principally byin-cabin ~~certain~~displays ~~members~~and ofcontrol ~~Marway's management team. See Note 13~~panels, ~~Redeemable~~for ~~Noncontrolling~~the ~~Interests,~~business ~~for~~and ~~additional~~aviation ~~information~~markets. ~~Marway~~The ~~designs~~purchase ~~and~~price ~~manufacturers~~of ~~power~~this ~~distribution~~acquisition ~~solutions~~was ~~for~~paid ~~mission-critical systems deployed~~ in ~~defense,~~cash ~~aerospace,~~using ~~communications,~~cash ~~test~~provided &by ~~measurement,~~operating ~~and industrial applications on land, air, and~~ activities.

75In January 2025, the Company, through a subsidiary of HFSC, acquired 90% of the membership interests of Millennium International, LLC ("Millennium"). Millennium is an FAA and EASA-certified Part 145 Repair Station, specializing in the repair and support of new generation and legacy avionics systems and components. Millennium offers comprehensive repair, overhaul, retrofit, and exchange services to its customers that include aircraft OEMs, fleet operators, repair businesses, and avionics brokers. The remaining 10% interest continues to be owned by certain members of Millennium’s management team. See Note 13, Redeemable Noncontrolling Interests, for additional information. The total consideration includes an accrual of $11.5 million as of the acquisition date representing the estimated fair value of contingent consideration the Company may be obligated to pay should Millennium meet a certain earnings objective following the acquisition. See Note 8, Fair Value Measurements, for additional information regarding the Company’s contingent consideration obligation. The purchase price of this acquisition was principally paid in cash using proceeds from the Company's revolving credit facility and cash provided by operating activities, as well as through the issuance of 53,186 shares of HEICO Class A Common Stock.

In December 2024, the Company, through a subsidiary of HFSC, entered into an exclusive license agreement and acquired certain assets to support the Boeing 777 AIMS (Airplane Information Management System) and Boeing 737NG/P-8/E-7 VIA (Versatile Integrated Avionics) product lines from Honeywell International. Honeywell's AIMS for the Boeing 777 and VIA for the Boeing 737NG/P-8/E-7 are integrated avionics systems providing cockpit displays, maintenance diagnostics, and flight management functions. The transaction provides the HFSC subsidiary with the exclusive capability to produce, sell, and repair Boeing 777 AIMS and Boeing 737NG/P-8/E-7 VIA hardware systems. The purchase price of this

Index

acquisition was paid in cash using proceeds from the Company's revolving credit facility and cash provided by operating activities.

In November 2024, the Company, through a subsidiary of HEICO Electronic, acquired 70% of the stock of SVM Private Limited ("SVM"). SVM designs and manufactures high-performance electronic passive components and subsystems, including critical magnetic components and busbars, that serve the healthcare and industrial end-markets. The remaining 30% interest continues to be owned by a certain member of SVM's management team. See Note 13, Redeemable Noncontrolling Interests, for additional information. The purchase price of this acquisition was paid in cash using cash provided by operating activities.

In October 2024, the Company, through a subsidiary of HEICO Electronic, acquired 87.9% of the stock of Mid Continent Controls, Inc. (“MC2”). The remaining 12.1% interest continues to be owned by certain members of MC2's management team. See Note 13, Redeemable Noncontrolling Interests, for additional information. MC2 designs and manufactures proprietary in-cabin power and entertainment components and subsystems for business jets. The purchase price of this acquisition was paid in cash using cash provided by operating activities.

In September 2024, the Company, through a subsidiary of HEICO Electronic, acquired 92.5% of the stock of Marway Power Solutions, Inc. (“Marway”). The remaining 7.5% interest continues to be owned by certain members of Marway's management team. See Note 13, Redeemable Noncontrolling Interests, for additional information. Marway designs and manufactures power distribution solutions for mission-critical systems deployed in defense, aerospace, communications, test & measurement, and industrial applications on land, air, and

sea. The purchase price of this acquisition was paid in cash using cash provided by operating activities.

In August 2024, the Company, through a subsidiary of HFSC, acquired the Aerial Delivery and Descent Devices divisions of Capewell Aerial Systems ("Capewell"). Capewell designs, manufactures and distributes emergency descent devices ("EDDs"), personnel and cargo

parachute products, heavy airdrop platforms, and other highly-engineered products. Capewell is a critical supplier to OEMs, end-users, and distributors.

In December 2023, the Company, through a subsidiary of HFSC, entered into an exclusive license and acquired certain assets from Honeywell International for the capability to support the Boeing 737NG/777 Cockpit Display and Legacy Displays product lines. The transaction provides the HFSC subsidiary with the exclusive capability to produce, sell, and repair Boeing 737NG/777 Cockpit Displays as well as other Legacy Displays for the Boeing 717, ATR, and select business and general aviation aircraft. As part of this transaction, in May 2024, the same HFSC subsidiary completed an additional arrangement with Honeywell International under which it acquired licenses and certain assets to further enhance the manufacturing of new products, including screens for a military variant of the Boeing 737NG/777 Cockpit Display and Legacy Displays. The purchase price of the May 2024 transaction was paid in cash using cash provided by operating activities.

Index

In March 2023, the Company, through a subsidiary of HEICO Electronic, entered into an exclusive license and acquired certain assets for the Aircraft Emergency Locator Transmitter (“ELT”) product line from Honeywell International. ELTs provide critical emergency transmission signals in the event of aircraft impact on land or water to enable first responders to locate the aircraft. The transaction provides the HEICO Electronic subsidiary with all rights to produce, sell and repair both fixed and portable Honeywell ELTs, as well as various support equipment. The purchase price of this acquisition was paid in cash using cash provided by operating activities.

InUnless ~~September~~otherwise ~~2022~~noted, the ~~Company,~~purchase ~~through~~price ~~a subsidiary~~ of ~~HEICO~~each ~~Electronic, acquired 100%~~ of the ~~stock~~aforementioned ofacquisitions ~~TRAD~~was ~~Tests~~paid ~~& Radiations SAS (“TRAD”). TRAD specializes~~ in ~~radiation engineering~~cash, ~~including~~principally ~~test~~using ~~and~~proceeds ~~simulation~~from ofthe ~~radiation~~Company's ~~effects~~revolving oncredit ~~electronic components and materials~~facility, ~~developing~~ and ~~providing~~is ~~software~~not ~~for~~material ~~radiation~~or ~~testing~~significant ~~and~~to ~~effects~~the ~~modeling,~~Company's ~~and~~consolidated ~~sourcing/screening~~financial ~~radiation tolerant and radiation hardened components~~statements. ~~The purchase price of this acquisition was paid in cash using cash provided by operating activities.~~

InThe ~~September~~following ~~2022,~~table ~~the~~summarizes ~~Company, through a subsidiary of HEICO Electronic, acquired 80.36% of~~ the ~~stock~~aggregate oftotal ~~Ironwood~~consideration ~~Electronics, Inc. ("Ironwood"). Ironwood designs and manufactures high performance test sockets and adapters~~ for ~~both~~the ~~engineering and production use of semiconductor devices. The remaining 19.64% interest continues to be owned by certain members of Ironwood~~Company's ~~management~~other ~~team. See~~acquisitions ~~Note~~based ~~13,~~on ~~Redeemable~~the ~~Noncontrolling~~year ~~Interests, for additional information. The total consideration includes an accrual~~ of ~~$6.4 million as of the~~ acquisition ~~date~~(in ~~representing the estimated fair value of contingent consideration the Company may have been obligated to pay if Ironwood met certain earnings objectives following the~~ thousands):


	Year ended October 31,
	2025	2024	2023
Cash paid	$638,670	$221,233	$20,000
Less: cash acquired	(8,876)	(2,061)	—
Cash paid, net	629,794	219,172	20,000
Issuance of common stock for an acquisition	10,123	—	—
Contingent consideration	11,509	—	—
Additional purchase consideration	(1,545)	4,959	—
Total consideration	$649,881	$224,131	$20,000

Index

~~acquisition. See~~The ~~Note~~following 8,table ~~Fair~~summarizes ~~Value~~the ~~Measurements,~~allocation ~~for~~of ~~additional~~the ~~information~~aggregate ~~regarding~~total consideration for the Company’'s ~~contingent~~other ~~consideration~~acquisitions ~~obligation.~~ to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed (in thousands, and based on the year of acquisition):

In August 2022, the Company, through HEICO Electronic, acquired 100% of the stock of Sensor Systems, Inc. ("Sensor"). Sensor designs and manufactures airborne antennas for commercial and military applications. The purchase price of this acquisition was paid for with a proportional combination of cash using proceeds from the Company's revolving credit facility and 576,338 shares of HEICO Class A Common Stock.


	Year ended October 31,
	2025	2024	2023
Assets acquired:
Goodwill	$265,167	$99,303	$8,246
Customer relationships	149,387	54,580	8,740
Property, plant and equipment	91,157	4,872	58
Intellectual property	91,125	39,690	2,870
Inventories	75,224	23,820	86
Trade names	30,646	10,900	—
Accounts receivable	20,299	7,058	—
Other assets	11,189	2,123	—
Total assets acquired, excluding cash	734,194	242,346	20,000

Liabilities assumed:
Deferred income taxes	39,348	2,730	—
Accrued expenses	11,375	5,115	—
Accounts payable	1,944	1,147	—
Other liabilities	3,696	485	—
Total liabilities assumed	56,363	9,477	—

Noncontrolling interests in consolidated subsidiaries	27,950	8,738	—

Net assets acquired, excluding cash	$649,881	$224,131	$20,000

InThe ~~August~~following ~~2022,~~table summarizes the ~~Company,~~weighted ~~through~~average aamortization ~~subsidiary~~period of ~~HEICO Electronic, acquired 100% of~~ the ~~stock~~definite-lived ofintangible ~~Charter~~assets ~~Engineering,~~acquired ~~Inc.~~in ~~("Charter"). Charter~~connection ~~designs~~with ~~and manufactures a complete line of RF and Microwave coaxial switches for~~ the ~~aerospace,~~Company's ~~defense,~~fiscal ~~commercial~~2025, ~~Automated~~2024 ~~Test Equipment ("ATE"),~~ and ~~instrumentation~~other ~~markets. The~~2023 ~~purchase~~acquisitions ~~price of this acquisition was paid~~ (in ~~cash using cash provided by operating activities.~~years):

In July 2022, the Company, through a subsidiary of HFSC, acquired 96% of the stock of Accurate Metal Machining, Inc. ("Accurate"). Accurate is a manufacturer of high-reliability components and assemblies. The remaining 4% interest continues to be owned by certain members of Accurate’s management team. See Note 13, Redeemable Noncontrolling Interests, for additional information. The total consideration includes an accrual of $13.1 million as of the acquisition date representing the estimated fair value of contingent consideration the Company may be obligated to pay should Accurate meet certain earnings objectives following the acquisition. See Note 8, Fair Value Measurements, for additional information regarding the Company’s contingent consideration obligation.


	Year ended October 31,
	2025	2024	2023
Customer relationships	11	11	8
Intellectual property	12	11	8

InThe ~~March~~allocation ~~2022,~~of the ~~Company,~~total ~~through~~consideration afor ~~subsidiary~~the offiscal ~~HFSC,~~2025 ~~acquired~~acquisitions ~~74%~~to of the ~~membership~~tangible ~~interests~~and ofidentifiable ~~Pioneer~~intangible ~~Industries,~~assets ~~LLC~~acquired ~~("Pioneer"). Pioneer~~and isliabilities ~~a specialty distributor of spares for military aviation, marine,~~ and ~~ground~~noncontrolling ~~platforms. The~~interests ~~remaining~~assumed ~~26%~~is ~~interest~~preliminary ~~continues~~until tothe beCompany ~~owned~~obtains byfinal ~~certain~~information ~~members~~regarding oftheir ~~Pioneer's~~fair ~~management team~~values. ~~See Note 13~~However, ~~Redeemable Noncontrolling Interests, for additional information. The total consideration includes an accrual of $9.8 million as of~~ the ~~acquisition~~Company ~~date~~does ~~representing~~not ~~the~~expect ~~estimated~~any ~~fair~~adjustment ~~value~~to ofsuch ~~contingent~~allocations ~~consideration~~to ~~the Company may~~ be ~~obligated~~material to ~~pay~~the ~~should~~Company's ~~Pioneer~~consolidated ~~meet~~financial ~~a certain earnings objective following the acquisition~~statements. ~~See~~The ~~Note~~allocation 8,of ~~Fair~~the ~~Value~~total ~~Measurements,~~consideration for ~~additional information regarding~~ the ~~Company’s~~fiscal ~~contingent~~2024 ~~consideration obligation.~~

In March 2022, the Company, through a subsidiary of HEICO Electronic, acquired 100% of the stock of Flight Microwave Corporation ("Flight Microwave"). Flight Microwave is a designer and manufacturer of custom high power filters and filter assemblies used in space and defense applications. The purchase price of this acquisition was paid in cash using cash provided by operating activities.

Unless otherwise noted, the purchase price of each of the above referenced other acquisitions was paid in cash, principally using proceeds from the Company's revolving credit facility, and is not material or significant to the Company's consolidated financial statements.

Index

acquisitions to the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed is final and inclusive of any measurement period adjustments made during the respective subsequent fiscal year, which were immaterial. The ~~following~~primary ~~table~~items ~~summarizes~~that generated the ~~aggregate~~goodwill ~~total~~recognized ~~consideration~~were the premiums paid by the Company for the future earnings potential of the businesses acquired and the value of their assembled workforces that do not qualify for separate recognition, which, in the case of Millennium, SVM, MC2 and Marway benefit both the Company's ~~other~~and ~~acquisitions~~the noncontrolling interest holders. The fair value of the noncontrolling interests in these entities was determined based on the ~~year~~consideration paid by the Company for its controlling ownership interest adjusted for a lack of ~~acquisition~~control ~~(in~~that ~~thousands):~~a market participant would consider when estimating the fair value of the noncontrolling interest.

	Year ended October 31,
	2024	2023	2022
Cash paid	$221,239	$20,000	$348,606
Less: cash acquired	(2,154)	—	(1,815)
Cash paid, net	219,085	20,000	346,791
Issuance of common stock for an acquisition	—	—	75,005
Contingent consideration	—	—	29,732
Additional purchase consideration	5,028	—	5,758
Total consideration	$224,113	$20,000	$457,286

The operating results of the fiscal 2025, 2024, and other fiscal 2023 acquisitions were included in the Company’s results of operations as of each effective acquisition date. The amount of net sales and earnings of the fiscal 2025, 2024, and other fiscal 2023 acquisitions included in the Consolidated Statement of Operations for the respective acquisition fiscal year is not material. Had the fiscal 2025 acquisitions occurred as of November 1, 2023, net sales, net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO on a pro forma basis for fiscal 2025 and 2024 would not have been materially different than the reported amounts. Had the fiscal 2024 acquisitions occurred as of November 1, 2022, net sales, net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO on a pro forma basis for fiscal 2024 and 2023 would not have been materially different than the reported amounts. Had the other fiscal 2023 acquisition occurred as of November 1, 2021, net sales, net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO on a pro forma basis for fiscal 2023 would not have been materially different than the reported amounts.

The following table summarizes the allocation of the aggregate total consideration for the Company's other acquisitions to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed (in thousands, and based on the year of acquisition):

	Year ended October 31,
	2024	2023	2022
Assets acquired:
Goodwill	$99,237	$8,246	$244,620
Customer relationships	54,580	8,740	131,479
Intellectual property	39,690	2,870	45,165
Trade names	10,900	—	41,784
Inventories	23,517	86	23,974
Accounts receivable	7,057	—	24,353
Property, plant and equipment	5,154	58	25,974
Contract assets	—	—	10,607
Other assets	1,128	—	5,965
Total assets acquired, excluding cash	241,263	20,000	553,921
Liabilities assumed:
Deferred income taxes	2,678	—	21,684
Accrued expenses	3,966	—	10,146
Accounts payable	1,238	—	7,575
Other liabilities	485	—	560
Total liabilities assumed	8,367	—	39,965
Noncontrolling interests in consolidated subsidiaries	8,783	—	56,670
Net assets acquired, excluding cash	$224,113	$20,000	$457,286

Index

The following table summarizes the weighted average amortization period of the definite-lived intangible assets acquired in connection with the Company's other fiscal 2024, 2023 and 2022 acquisitions (in years):

	Year ended October 31,
	2024	2023	2022
Customer relationships	11	8	15
Intellectual property	11	8	13

The allocation of the total consideration for the fiscal 2024 acquisitions to the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed is preliminary until the Company obtains final information regarding their fair values. However, the Company does not expect any adjustment to such allocations to be material to the Company's consolidated financial statements. The allocation of the total consideration for the other fiscal 2023 and fiscal 2022 acquisitions to the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed is final and inclusive of any measurement period adjustments made during the respective subsequent fiscal year, which were immaterial. The primary items that generated the goodwill recognized were the premiums paid by the Company for the future earnings potential of the businesses acquired and the value of their assembled workforces that do not qualify for separate recognition, which, in the case of MC2, Marway, Ironwood, Accurate and Pioneer benefit both the Company and the noncontrolling interest holders. The fair value of the noncontrolling interests in these entities was determined based on the consideration paid by the Company for its controlling ownership interest adjusted for a lack of control that a market participant would consider when estimating the fair value of the noncontrolling interest.

The operating results of the fiscal 2024, other fiscal 2023, and fiscal 2022 acquisitions were included in the Company’s results of operations as of each effective acquisition date. The amount of net sales and earnings of the fiscal 2024, other fiscal 2023, and fiscal 2022 acquisitions included in the Consolidated Statement of Operations for the respective acquisition fiscal year is not material. Had the fiscal 2024 acquisitions occurred as of November 1, 2022, net sales, net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO on a pro forma basis for fiscal 2024 and 2023 would not have been materially different than the reported amounts. Had the other fiscal 2023 acquisition occurred as of November 1, 2021, net sales, net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO on a pro forma basis for fiscal 2023 and 2022 would not have been materially different than the reported amounts. Had the fiscal 2022 acquisitions occurred as of November 1, 2020, net sales on a pro forma basis for fiscal 2022 would have been $2,325.2 million and net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO shareholders on a pro forma basis for fiscal 2022 would not have been materially different than the reported amounts.

Index

3. SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable

As of October 31,

(in thousands)

~~2024~~2025

~~2023~~2024

Accounts receivable

$~~550~~647,~~281~~864

$~~521~~550,~~696~~281

Less: Allowance for doubtful accounts

(1110,~~794~~249)

(1211,~~621~~794)

Accounts receivable, net

$~~538~~637,~~487~~615

$~~509~~538,~~075~~487

~~Inventories~~78

	As of October 31,
(in thousands)	2024	2023
Finished products	$684,578	$622,395
Work in process	99,107	79,789
Materials, parts, assemblies and supplies	387,264	311,496
Inventories, net of valuation reserves	$1,170,949	$1,013,680

Property, Plant and Equipment

	As of October 31,
(in thousands)	2024	2023
Land	$19,974	$19,706
Buildings and improvements	217,554	202,499
Machinery, equipment and tooling	422,500	386,602
Construction in progress	35,432	25,867
	695,460	634,674
Less: Accumulated depreciation and amortization	(356,426)	(312,826)
Property, plant and equipment, net	$339,034	$321,848

The amounts set forth above include tooling costs having a net book value of $7.0 million and $6.5 million as of October 31, 2024 and 2023, respectively. Amortization expense on capitalized tooling was $2.3 million, $2.3 million and $2.5 million in fiscal 2024, 2023 and 2022, respectively.

Depreciation and amortization expense, exclusive of tooling, on property, plant and equipment was $49.1 million, $40.3 million and $30.3 million in fiscal 2024, 2023 and 2022, respectively.

Index

Inventories


	As of October 31,
(in thousands)	2025	2024
Finished products	$715,286	$684,578
Work in process	119,611	99,107
Materials, parts, assemblies and supplies	460,439	387,264
Inventories, net of valuation reserves	$1,295,336	$1,170,949

Property, Plant and Equipment


	As of October 31,
(in thousands)	2025	2024
Land	$85,134	$19,974
Buildings and improvements	255,776	217,554
Machinery, equipment and tooling	476,735	422,500
Construction in progress	21,812	35,432
	839,457	695,460
Less: Accumulated depreciation and amortization	(407,747)	(356,426)
Property, plant and equipment, net	$431,710	$339,034

The amounts set forth above include tooling costs having a net book value of $7.6 million and $7.0 million as of October 31, 2025 and 2024, respectively. Amortization expense on capitalized tooling was $2.2 million, $2.3 million and $2.3 million in fiscal 2025, 2024 and 2023, respectively.

Depreciation and amortization expense, exclusive of tooling, on property, plant and equipment was $54.4 million, $49.1 million and $40.3 million in fiscal 2025, 2024 and 2023, respectively.

Accrued Expenses and Other Current Liabilities

	As of October 31,
(in thousands)	~~2024~~2025	~~2023~~2024
Accrued employee compensation and related payroll taxes	$~~202~~240,~~273~~546	$~~181~~196,~~906~~503
Contract liabilities	83,903	87,556
Leadership Compensation Plan short-term liabilities	103,520	5,770
Accrued customer rebates and credits	24,291	24,508
Contract liabilities	79,529	83,903
Current operating lease liabilities	23,422	20,503
Accrued customer rebates and credits	30,695	24,291
Accrued interest	17,462	18,705
Current operating lease liabilities	25,736	23,422
Contingent consideration	8,437	37,305
Accrued interest	16,690	17,462
Other	6780,~~993~~908	6276,~~618~~430
Accrued expenses and other current liabilities	$~~427~~577,~~781~~624	$~~433~~427,~~101~~781

The increase in accrued employee compensation and related payroll taxes principally reflects a higher level of accrued performance-based compensation resulting from the improved consolidated operating results. See Note 8, Fair Value Measurements, for additional information regarding the Company's contingent consideration obligations. The total customer rebates and credits deducted within net sales in fiscal 2024, 2023 and 2022 was $12.0 million, $9.4 million and $7.6 million, respectively. 79

Other Long-Term Assets and Liabilities

The Company provides eligible employees, officers and directors of the Company the opportunity to voluntarily defer base salary, bonus payments, commissions, long-term incentive awards and directors fees, as applicable, on a pre-tax basis through the HEICO Corporation Leadership Compensation Plan (the “LCP”), a nonqualified deferred compensation plan that conforms to Section 409A of the Internal Revenue Code. The Company matches 50% of the first 6% of base salary deferred by each participant. Director fees that would otherwise be payable in Company common stock may be deferred into the LCP, and, when distributable, are distributed in actual shares of Company common stock. The deferred compensation obligation associated with Company common stock is recorded as a component of shareholders’ equity at cost and subsequent changes in fair value are not reflected in operations or shareholders’ equity of the Company. Further, while the Company has no obligation to do so, the LCP also provides the Company the opportunity to make discretionary contributions. The Company’s matching contributions and any discretionary contributions are subject to vesting and forfeiture provisions set forth in the LCP. Company contributions to the LCP charged to income in fiscal 2024, 2023 and 2022 totaled $11.1 million, $9.2 million and $7.2 million, respectively. The aggregate liabilities of the LCP were $315.0 million and $226.2 million as of October 31, 2024 and 2023, respectively, and are classified within other long-term liabilities and accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets. The assets of the LCP, totaling $317.2 million and $233.5 million as of October 31, 2024 and 2023, respectively, are classified within other assets in the Company's Consolidated Balance Sheets and principally represent cash surrender values of life insurance policies that are held within an irrevocable trust

Index

~~that~~The ~~may~~increase bein ~~used~~accrued toemployee ~~satisfy~~compensation ~~the~~and related payroll taxes principally reflects higher employer payroll tax obligations arising from withholding requirements on stock option exercises and a higher level of ~~the~~accrued ~~LCP~~performance-based compensation resulting from improved consolidated operating results. ~~Additional~~The ~~information~~increase ~~regarding~~in the ~~assets~~HEICO ofCorporation Leadership Compensation Plan (the "LCP") ~~may~~short-term liabilities primarily reflects the reclassification from other long-term liabilities of amounts expected to be ~~found~~distributed to certain participants in ~~Note~~fiscal 82026 as a result of participant-related events during fiscal 2025 and prior participant distribution elections. See “Other Long-Term Assets and Liabilities” below for additional information regarding the LCP. The total customer rebates and credits deducted within net sales for fiscal 2025, ~~Fair~~2024, ~~Value~~and ~~Measurements~~2023 were $15.9 million, $12.0 million, and $9.4 million, respectively.

Other Long-Term Assets and Liabilities

The Company provides eligible employees, officers and directors of the Company the opportunity to voluntarily defer base salary, bonus payments, commissions, long-term incentive awards and director fees, as applicable, on a pre-tax basis through the LCP, a nonqualified deferred compensation plan that conforms to Section 409A of the Internal Revenue Code. The Company matches 50% of the first 6% of base salary deferred by each participant. Director fees that would otherwise be payable in Company common stock may be deferred into the LCP, and, when distributable, are distributed in actual shares of Company common stock. The deferred compensation obligation associated with Company common stock is recorded as a component of shareholders’ equity at cost and subsequent changes in fair value are not reflected in operations or shareholders’ equity of the Company. Further, while the Company has no obligation to do so, the LCP also provides the Company the opportunity to make discretionary contributions. The Company’s matching contributions and any discretionary contributions are subject to vesting and forfeiture provisions set forth in the LCP. Company contributions to the LCP charged to income in fiscal 2025, 2024 and 2023 totaled $7.0 million, $11.1 million and $9.2 million, respectively. The aggregate liabilities of the LCP were $385.7 million and $315.0 million as of October 31, 2025 and 2024, respectively, and are classified within other long-term liabilities and accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets. The assets of the LCP, totaling $390.9 million and $317.2 million as of October 31, 2025 and 2024, respectively, are classified within other assets in the Company's Consolidated Balance Sheets and principally represent cash surrender values of life insurance policies that are held within an irrevocable trust that may be used to satisfy the obligations of the LCP. Additional information regarding the assets of the LCP may be found in Note 8, Fair Value Measurements.

Research and Development Expenses

The amount of new product research and development ("R&D") expenses included in cost of sales is as follows (in thousands):

	Year ended October 31,
	2024	2023	2022
	2025	2024	2023
R&D expenses	$~~111~~120,~~265~~942	$95111,~~773~~265	$7695,~~061~~773

~~Accumulated Other Comprehensive Loss~~80

Changes in the components of accumulated other comprehensive loss during fiscal 2024 and 2023 are as follows (in thousands):

	Foreign Currency Translation	Defined Benefit Pension Plan	AccumulatedOther Comprehensive Loss
Balances as of October 31, 2022	($45,369)	($1,130)	($46,499)
Unrealized gain	6,204	59	6,263
Amortization of unrealized loss	—	56	56
Balances as of October 31, 2023	(39,165)	(1,015)	(40,180)
Unrealized gain	13,498	554	14,052
Amortization of unrealized loss	—	52	52
Balances as of October 31, 2024	($25,667)	($409)	($26,076)

Index

Accumulated Other Comprehensive Income (Loss)

Changes in the components of accumulated other comprehensive income (loss) during fiscal 2025 and 2024 are as follows (in thousands):


	Foreign Currency Translation	Defined Benefit Pension Plan	Accumulated Other Comprehensive Income (Loss)
Balances as of October 31, 2023	($39,165)	($1,015)	($40,180)
Unrealized gain	13,498	554	14,052
Amortization of unrealized loss	—	52	52
Balances as of October 31, 2024	(25,667)	(409)	(26,076)
Unrealized gain (loss)	31,854	(200)	31,654
Amortization of unrealized loss	—	3	3
Balances as of October 31, 2025	$6,187	($606)	$5,581

4. GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill by operating segment during fiscal ~~2024~~2025 and ~~2023~~2024 are as follows (in thousands):

	Segment		Consolidated
	FSG	ETG	Totals
Balances as of October 31, 2022	$561,961	$1,110,464	$1,672,425
Balances as of October 31, 2023	$1,824,305	$1,450,022	$3,274,327
Goodwill acquired	1,260,507	335,630	1,596,137
Foreign currency translation adjustments	2,793	2,394	5,187
Adjustments to goodwill	(956)	1,534	578
Balances as of October 31, 2023	1,824,305	1,450,022	3,274,327
Goodwill acquired	57,978	41,259	99,237
Foreign currency translation adjustments	696	5,643	6,339
Adjustments to goodwill	(421)	813	392
Balances as of October 31, 2024	$1,882,558	$1,497,737	$3,380,295
Goodwill acquired	111,764	153,403	265,167
Foreign currency translation adjustments	2,832	13,264	16,096
Adjustments to goodwill	24	42	66
Balances as of October 31, 2025	$1,997,178	$1,664,446	$3,661,624

The goodwill acquired during fiscal ~~2024~~2025 and ~~2023~~2024 pertains to the acquisitions consummated in those respective years as described in Note 2, Acquisitions, and represents the residual value after the allocation of the total consideration to the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed. Foreign currency translation adjustments are included in other comprehensive income ~~(loss)~~ in the Company's Consolidated Statements of Comprehensive Income. The adjustments to goodwill in fiscal ~~2024~~2025 and ~~2023~~2024 represent immaterial measurement period adjustments to the allocation of the purchase consideration of the respective prior year acquisitions. The Company estimates that approximately $80113 million and $~~131~~82 million of the goodwill acquired in fiscal ~~2024~~2025 and ~~2023~~2024, respectively, will be deductible for income tax purposes. Based on the annual test for goodwill ~~impairment as of October 31, 2024, the Company determined there was no impairment of its goodwill.~~

~~Identifiable intangible assets consist of the following (in thousands):~~81

	As of October 31, 2024			As of October 31, 2023
	GrossCarryingAmount	AccumulatedAmortization	NetCarryingAmount	GrossCarryingAmount	AccumulatedAmortization	NetCarryingAmount
Amortizing Assets:
Customer relationships	$1,013,847	($307,531)	$706,316	$967,090	($227,089)	$740,001
Intellectual property	471,516	(137,188)	334,328	448,336	(121,503)	326,833
Other	8,575	(7,708)	867	8,685	(7,404)	1,281
	1,493,938	(452,427)	1,041,511	1,424,111	(355,996)	1,068,115
Non-Amortizing Assets:
Trade names	293,263	—	293,263	289,166	—	289,166
	$1,787,201	($452,427)	$1,334,774	$1,713,277	($355,996)	$1,357,281

Index

impairment as of October 31, 2025, the Company determined there was no impairment of its goodwill.

Identifiable intangible assets consist of the following (in thousands):


	As of October 31, 2025			As of October 31, 2024
	Gross Carrying Amount	Accumulated Amortization	Net Carrying Amount	Gross Carrying Amount	Accumulated Amortization	Net Carrying Amount
Amortizing Assets:
Customer relationships	$1,131,443	($373,100)	$758,343	$1,013,847	($307,531)	$706,316
Intellectual property	540,836	(153,783)	387,053	471,516	(137,188)	334,328
Other	8,651	(8,127)	524	8,575	(7,708)	867
	1,680,930	(535,010)	1,145,920	1,493,938	(452,427)	1,041,511
Non-Amortizing Assets:
Trade names	325,520	—	325,520	293,263	—	293,263
	$2,006,450	($535,010)	$1,471,440	$1,787,201	($452,427)	$1,334,774

The increase in the gross carrying amount of customer relationships, intellectual property, and trade names as of October 31, 2025 compared to October 31, 2024 principally relates to such intangible assets recognized in connection with the fiscal 2025 acquisitions (see Note 2, Acquisitions, for additional information).

During fiscal 2024, the Company recognized impairment losses aggregating $7.5 million from the write-down of trade names at two ETG subsidiaries due to a reduction in the expected future cash flows associated with each such intangible asset. The impairment losses were recorded as a component of SG&A expenses in the Company's Consolidated Statement of Operations. See Note 8, Fair Value Measurements, for additional information regarding the Company’s impairment losses.

As further disclosed in Note 2, Acquisitions, the following table summarizes the weighted average amortization period of the definite-lived intangible assets acquired in total and by major asset class in connection with the Company's fiscal ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023 acquisitions (in years):

	Year ended October 31,
	2024	2023	2022
	2025	2024	2023
Customer relationships	11	1311	1513
Intellectual property	1112	1411	1314
Total	11	1311	1413

Amortization expense related to intangible assets was $~~122~~137.39 million, $85122.93 million and $6285.59 million in fiscal ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023, respectively. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $~~122~~141.58 million in fiscal ~~2025~~2026, $~~116~~136.87 million in fiscal ~~2026~~2027, $~~112~~130.01 million in fiscal ~~2027~~2028, $~~106~~124.0 million in fiscal ~~2028~~2029, $~~100~~116.58 million in fiscal ~~2029~~2030 and $~~483~~496.75 million thereafter.

~~5. SHORT-TERM AND LONG-TERM DEBT~~82

~~A subsidiary of the Company acquired in fiscal 2023 ended its short-term borrowing arrangements in the first quarter of fiscal 2024 during which it made net payments of $13.9 million.~~Index

5. LONG-TERM DEBT

Long-term debt consists of the following (in thousands):

	As of October 31,
	2024	2023
	2025	2024
Borrowings under revolving credit facility	$1960,~~015,~~000	$1,~~250~~015,000
2028 senior unsecured notes	600,000	600,000
2033 senior unsecured notes	600,000	600,000
Finance leases and notes payable (1)	2617,~~133~~890	2826,~~024~~133
Less: Debt discount and debt issuance costs	(119,~~759~~945)	(1311,~~478~~759)
	2,229,374	2,464,546
	2,167,945	2,229,374
Less: Current maturities of long-term debt	(43,~~107~~358)	(4,~~269~~107)
	$2,225,267	$2,460,277
	$2,164,587	$2,225,267

(1) See Note 9, Leases, for additional information regarding the Company's finance leases.

Index

Revolving Credit Facility

The Company's borrowings under its revolving credit facility ("Credit Facility") mature in fiscal 2028. As of October 31, ~~2024~~2025 and ~~2023~~2024, the weighted average interest rate on borrowings under the Company's Credit Facility was 65.3% and 6.73%, respectively. The Credit Facility contains both financial and non-financial covenants. As of October 31, ~~2024~~2025, the Company was in compliance with all such covenants.

In November 2017, the Company entered into a $1.3 billion Credit Facility with a bank syndicate. The Credit Facility may be used to finance acquisitions and for working capital and other general corporate purposes, including capital expenditures. In December 2020, the Company entered into an amendment to increase the capacity by $200 million to $1.5 billion. In April 2022, the Company entered into an amendment to extend the maturity date of its Credit Facility by one year to November 2024 and to replace the Eurocurrency Rate with Adjusted Term SOFR as an election in which borrowings under the Credit Facility accrue interest, as such capitalized terms are defined in the Credit Facility. In July 2023, the Company entered into a third amendment to its Credit Facility, to, among other things, (i) increase the capacity by $500 million to $2.0 billion, (ii) extend the maturity date to July 2028, and (iii) increase the applicable rate with respect to certain total leverage ratio tiers in the pricing grid. The Credit Facility includes a feature that will allow the Company to increase the capacity by $750 million to become a $2.75 billion facility through increased commitments from existing lenders. The Company incurred $6.7 million of debt issuance costs in fiscal 2023 related to the third amendment of the Credit Facility, which were classified as other assets in the Company's Consolidated Balance Sheet and are being amortized to SG&A expenses in the Company's Consolidated Statement of Operations over the remaining term of the Credit Facility.

Borrowings under the Credit Facility accrue interest at the Company’s election of the Base Rate or Adjusted Term SOFR, plus in each case, the Applicable Rate (based on the Company’s Total Leverage Ratio) as such capitalized terms are defined in the Credit Facility. The Base Rate for any day is a fluctuating rate per annum equal to the highest of (i) the Prime Rate; (ii) the Federal Funds Rate plus .50%; and (iii) Adjusted Term SOFR for an Interest Period of one month plus 100 basis points. Adjusted Term SOFR is the rate per annum equal to Term SOFR plus a Term SOFR Adjustment of .10%; provided that Adjusted Term SOFR as so determined shall never be less than 0%. The Applicable Rate for SOFR Loans ranges from 1.125% to 2.00%. The Applicable Rate for Base Rate Loans ranges from .125% to 1.00%. A fee is charged on the amount of the unused commitment ranging from .15% to .35% (depending on the Company’s Total Leverage Ratio). The Credit Facility also includes a $200 million sublimit for swingline borrowings and $100 million sublimits for borrowings made in foreign currencies and for letters of credit. Outstanding principal, accrued and unpaid interest and other amounts payable under the Credit Facility may be accelerated upon an event of default, as such events are described in the Credit Facility. The Credit Facility is unsecured and contains covenants that require, among other things, the maintenance of a Total Leverage Ratio and an Interest Coverage Ratio, as such capitalized terms are defined in the Credit Facility. 83

Index

Senior Unsecured Notes

On July 27, 2023, the Company completed the public offer and sale of senior unsecured notes, which consisted of $600 million principal amount of 5.25% Senior Notes due August 1, 2028 (the "2028 Notes") and $600 million principal amount of 5.35% Senior Notes due August 1, 2033 (the "2033 Notes" and, collectively with the 2028 Notes, the "Notes"). The Company used the net proceeds from the sale of the Notes to repay the outstanding borrowings under its Credit Facility and to fund a portion of the purchase price of the Wencor Acquisition. See Note 2, Acquisitions, for additional information. Interest on the Notes is payable semi-annually in arrears on February 1 and August 1 of each year, and commenced on February 1, 2024. The 2028 Notes and 2033 Notes each have an effective interest rate of 5.5%.

The Notes were issued pursuant to an Indenture, dated as of July 27, 2023 (the “Base Indenture”), between the Company and certain of its subsidiaries (collectively, the "Subsidiary Guarantors") and Truist Bank, as trustee (the “Trustee”), as supplemented by a First Supplemental Indenture, dated as of July 27, 2023 (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), between the Company, Subsidiary Guarantors and the Trustee. The Notes are direct, unsecured senior obligations of the Company and rank equally in right of payment with all of the Company's existing and future senior unsecured indebtedness.

The Notes are fully and unconditionally guaranteed on a senior unsecured basis by all of the Company's existing and future subsidiaries that guarantee the Company's obligations under the Credit Facility (the "Guarantor Group"). The Company may redeem the Notes at any time in whole, or from time to time in part, prior to the applicable par call date at the applicable redemption price described in the Indenture. On or after the applicable par call date, the Notes will be redeemable, at the Company’s option, at any time in whole, or from time to time in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest on the Notes to be redeemed to, but excluding, the date of redemption. The Company may be required to make an offer to purchase the Notes upon the occurrence of a “change of control triggering event” as described in the Indenture.

The Indenture includes certain customary covenants that, among other things, limit the Company’s and its restricted subsidiaries’ ability to grant liens to secure indebtedness or engage in sale and leaseback transactions and the Company’s ability to merge or consolidate with, or convey, transfer or lease all or substantially all of its assets to, a third party, as further described in the Indenture. Each of these limitations is subject to certain important qualifications and exceptions. The Indenture also includes certain customary events of default. The occurrence of an event of default will either automatically, in certain instances, or upon declaration by the Trustee or the holders of at least 25% in aggregate principal amount of the Notes at the time outstanding, in other instances, cause the acceleration of the amounts due under the Notes. As of October 31, 2024, the Company was in compliance with all such covenants.84

The Company received net proceeds of $1,189.5 million from the issuance of the Notes, which was net of a debt discount and underwriting fees. The Company also incurred an

Index

~~additional~~at ~~$3.4 million~~a ofredemption ~~debt~~price ~~issuance~~equal ~~fees~~to ~~related~~100% toof the ~~Notes. The~~principal ~~aggregate~~amount ~~debt~~of ~~discount~~the ~~and~~Notes ~~debt~~to ~~issuance~~be ~~costs~~redeemed ofplus ~~$13.9 million~~accrued ~~are~~and ~~classified~~unpaid asinterest aon ~~contra~~the ~~liability~~Notes ~~within~~to ~~long-term~~be ~~debt~~redeemed into, ~~the~~but ~~Company's~~excluding, ~~Consolidated~~the ~~Balance~~date ~~Sheet~~of ~~and~~redemption. The ~~are~~Company ~~being~~may ~~amortized~~be required to ~~interest~~make ~~expense~~an inoffer ~~the~~to ~~Company's~~purchase ~~Consolidated~~the ~~Statement~~Notes ofupon ~~Operations~~the ~~over~~occurrence ~~the~~of ~~respective~~a ~~term~~“change of ~~each~~control ~~senior~~triggering ~~note~~event” ~~using~~as ~~the~~described ~~effective~~in ~~interest~~the ~~method~~Indenture.

The ~~following~~Indenture ~~table~~includes ~~sets~~certain ~~forth~~customary ~~the~~covenants ~~carrying~~that, ~~value~~among other things, limit the Company’s and ~~estimated~~its ~~fair~~restricted ~~value~~subsidiaries’ ofability to grant liens to secure indebtedness or engage in sale and leaseback transactions and the Company’s ~~Notes~~ability to merge or consolidate with, ~~which~~or ~~are~~convey, ~~classified~~transfer asor ~~Level~~lease 1all ~~financial~~or ~~instruments~~substantially all of its assets to, a third party, as further described in the ~~fair~~Indenture. Each ~~value~~of ~~hierarchy~~these ~~(in~~limitations ~~thousands)~~is subject to certain important qualifications and exceptions. The ~~Company~~Indenture ~~estimated~~also ~~the~~includes ~~fair~~certain ~~value~~customary events of ~~the~~default. The ~~Notes~~occurrence of an event of default will either automatically, in certain instances, or upon declaration by ~~taking~~the Trustee or the ~~weighted~~holders ~~average~~of at least 25% in aggregate principal amount of ~~market~~the ~~quotes~~Notes ~~for~~at the ~~exact~~time ~~security~~outstanding, ~~that~~in ~~was~~other ~~actively~~instances, ~~traded~~cause onthe ~~October~~acceleration ~~31,~~of ~~2024~~the ~~and~~amounts due under the Notes. As of October 31, ~~2023~~2025, the Company was in compliance with all such covenants.

	October 31, 2024		October 31, 2023
	Carrying Value	Fair Value	Carrying Value	Fair Value
2028 Notes	$595,267	$609,376	$594,158	$579,762
2033 Notes	592,974	605,917	592,364	552,594
Total	$1,188,241	$1,215,293	$1,186,522	$1,132,356

The Company received net proceeds of $1,189.5 million from the issuance of the Notes, which was net of a debt discount and underwriting fees. The Company also incurred an additional $3.4 million of debt issuance fees related to the Notes. The aggregate debt discount and debt issuance costs of $13.9 million are classified as a contra liability within long-term debt in the Company's Consolidated Balance Sheet and are being amortized to interest expense in the Company's Consolidated Statement of Operations over the respective term of each senior note using the effective interest method.

The following table sets forth the carrying value and estimated fair value of the Company’s Notes, which are classified as Level 1 financial instruments in the fair value hierarchy (in thousands). The Company estimated the fair value of the Notes by taking the weighted average of market quotes for the exact security that was actively traded on October 31, 2025 and October 31, 2024.


	As of October 31, 2025		As of October 31, 2024
	Carrying Value	Fair Value	Carrying Value	Fair Value
2028 Notes	$596,437	$617,904	$595,267	$609,376
2033 Notes	593,618	624,320	592,974	605,917
Total	$1,190,055	$1,242,224	$1,188,241	$1,215,293

Index

6. REVENUE

Contract Balances

Contract assets (unbilled receivables) represent revenue recognized on contracts using an over- time recognition model in excess of amounts invoiced to the customer. Contract liabilities (deferred revenue) represent customer advances and billings in excess of revenue recognized and are included within accrued expenses and other current liabilities and other long-term liabilities in the Company’s Consolidated Balance Sheets.

~~Changes~~The infollowing table presents the Company’s contract assets and liabilities ~~during fiscal 2024 and 2023 are as follows~~ (in thousands):

	October 31, 2024	October 31, 2023	Change
	As of October 31,
Contract assets, current	$112,235	$111,702	$533
	2025	2024
Contract liabilities, current	83,903	87,556	(3,653)
Contract assets, current	$119,257	$112,235
Contract liabilities, long-term	61,843	—	61,843
Contract liabilities, current	(79,529)	(83,903)
Total contract liabilities	145,746	87,556	58,190
Contract liabilities, long-term	(84,714)	(61,843)
Net contract (liabilities) assets	($33,511)	$24,146	($57,657)
Total contract liabilities	(164,243)	(145,746)
Net contract liabilities	($44,986)	($33,511)

The increase in the Company's total contract liabilities during fiscal ~~2024~~2025 principally reflects the receipt of advance deposits on certain customer contracts, mainly at the FSG.

87The amount of revenue that the Company recognized during fiscal 2025 that was included in contract liabilities as of the beginning of fiscal 2025 was $74.9 million.

Index

The amount of revenue that the Company recognized during fiscal 2024 that was included in contract liabilities as of the beginning of fiscal 2024 was $60.4 million.

Remaining Performance Obligations

Backlog, which the Company believes to be the equivalent of its remaining performance obligations, represents contractually committed, or firm customer orders. As of October 31, ~~2024~~2025, the Company had $12,~~924~~107.56 million of remaining performance obligations associated with firm contracts pertaining to many of the products offered by the FSG and ETG. The Company will recognize net sales as these obligations are satisfied. The Company expects to recognize $1,~~178~~358.17 million of this amount during fiscal ~~2025~~2026 and $~~746~~748.49 million thereafter, of which ~~a little~~ more than half is expected to occur in fiscal ~~2026~~2027.

Index

Disaggregation of Revenue

The following table summarizes the Company’s net sales by product line for each operating segment (in thousands):

Year Ended October 31,

2024

2023

2022

2025

2024

2023

Flight Support Group:

Aftermarket replacement parts (1)

$1,~~658~~922,~~431~~323

$1,~~040~~658,~~502~~431

$~~694~~1,~~900~~040,502

Repair and overhaul parts and services (2)

~~593~~748,~~237~~849

~~366~~593,~~566~~237

~~264~~366,~~986~~566

Specialty products (3)

~~387~~446,~~686~~105

~~363~~387,~~117~~686

~~295~~363,~~326~~117

Total net sales

23,~~639~~117,~~354~~277

12,~~770~~639,~~185~~354

1,~~255~~770,~~212~~185

Electronic Technologies Group:

Electronic component parts primarily for defense, space and aerospace equipment (4)

1,~~004~~142,~~511~~207

~~918~~1,~~374~~004,511

~~672~~918,~~147~~374

Electronic component parts for equipment in various other industries (5)

~~259~~270,~~115~~913

~~306~~259,~~848~~115

~~300~~306,~~328~~848

Total net sales

1,~~263~~413,~~626~~120

1,~~225~~263,~~222~~626

~~972~~1,~~475~~225,222

Intersegment sales

(45,~~311~~353)

(2745,~~302~~311)

(1927,~~365~~302)

Total consolidated net sales

$34,~~857~~485,~~669~~044

$23,~~968~~857,~~105~~669

$2,~~208~~968,~~322~~105

(1) Includes various jet engine and aircraft component replacement parts.

(2) Includes primarily the sale of parts consumed in various repair and overhaul services on selected jet engine and aircraft components, avionics, instruments, composites and flight surfaces of commercial and military aircraft.

(3) Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, expanded foil mesh, emergency descent devices, personnel and cargo parachute products, and missile hardware and components, as well as machining, brazing, fabricating and welding services.

88(4) Includes various component parts such as electro-optical infrared simulation and test equipment, electro-optical laser products, electro-optical, microwave and other power equipment, high-speed interface products, power conversion products, power distribution solutions, underwater locator beacons, emergency locator transmission beacons, traveling wave tube amplifiers, microwave power modules, a wide variety of memory products and radio frequency (RF) and microwave products, crashworthy and ballistically self-sealing auxiliary fuel systems, high performance communications and electronic intercept receivers and tuners, high performance active antenna systems and airborne antennas, technical surveillance countermeasures (TSCM) equipment, custom high power filters and filter assemblies, radiation assurance services and products, and high-reliability, complex, passive electronic components and rotary joint assemblies, proprietary in-cabin power and entertainment components and subsystems, and cockpit displays and other avionics components.

Index

foil mesh as well as machining, brazing, fabricating and welding services generally to original equipment manufacturers, and emergency descent devices and personnel and cargo parachute products.

(4) Includes various component parts such as electro-optical infrared simulation and test equipment, electro-optical laser products, electro-optical, microwave and other power equipment, high-speed interface products, power conversion products, power distribution solutions, underwater locator beacons, emergency locator transmission beacons, traveling wave tube amplifiers, microwave power modules, a wide variety of memory products and radio frequency (RF) and microwave products, crashworthy and ballistically self-sealing auxiliary fuel systems, high performance communications and electronic intercept receivers and tuners, high performance active antenna systems and airborne antennas, technical surveillance countermeasures (TSCM) equipment, custom high power filters and filter assemblies, radiation assurance services and products, and high-reliability, complex, passive electronic components and rotary joint assemblies, and proprietary in-cabin power and entertainment components and subsystems.

(5) Includes various component parts such as electromagnetic and radio frequency interference shielding, high voltage interconnection devices, high voltage advanced power electronics, harsh environment connectivity products, custom molded cable assemblies, silicone material for a variety of demanding applications, and rugged small form-factor embedded computing solutions, and high performance test sockets and adaptors.

The following table summarizes the Company’s net sales by industry for each operating segment (in thousands):

Year ended October 31,

2024

2023

2022

2025

2024

2023

Flight Support Group:

Aerospace

$12,~~960~~369,~~705~~255

$1,~~257~~960,~~650~~705

$~~876~~1,~~254~~257,650

Defense and Space

~~600~~686,~~806~~865

~~434~~600,~~229~~806

~~316~~434,~~460~~229

Other (1)

7761,~~843~~157

7877,~~306~~843

6278,~~498~~306

Total net sales

23,~~639~~117,~~354~~277

12,~~770~~639,~~185~~354

1,~~255~~770,~~212~~185

Electronic Technologies Group:

Defense and Space

~~650~~716,~~647~~550

~~603~~650,~~414~~647

~~545~~603,~~384~~414

Other (2)

~~394~~421,~~932~~011

~~438~~394,~~189~~932

~~340~~438,~~311~~189

Aerospace

~~218~~275,~~047~~559

~~183~~218,~~619~~047

86183,~~780~~619

Total net sales

1,~~263~~413,~~626~~120

1,~~225~~263,~~222~~626

~~972~~1,~~475~~225,222

Intersegment sales

(45,~~311~~353)

(2745,~~302~~311)

(1927,~~365~~302)

Total consolidated net sales

$34,~~857~~485,~~669~~044

$23,~~968~~857,~~105~~669

$2,~~208~~968,~~322~~105

(1) Principally industrial products.

(2) Principally other electronics and medical products.

8988

Index

7. INCOME TAXES

The components of income before income taxes and noncontrolling interests are as follows (in thousands):

Year ended October 31,

2024

2023

2022

2025

2024

2023

Domestic

$~~596~~814,~~060~~178

$~~479~~596,~~990~~060

$~~429~~479,~~329~~990

Foreign

8179,~~526~~376

7581,~~293~~526

6175,~~694~~293

Income before taxes and noncontrolling interests

$~~677~~893,~~586~~554

$~~555~~677,~~283~~586

$~~491~~555,~~023~~283

The components of the provision for income taxes on income before income taxes and noncontrolling interests are as follows (in thousands):

Year ended October 31,

2024

2023

2022

2025

2024

2023

Current:

Federal

$97148,~~164~~908

$9697,~~492~~164

$6396,~~861~~492

State

1923,~~195~~114

1819,~~225~~195

1318,~~015~~225

Foreign

24,~~143~~543

2224,~~714~~143

1422,~~648~~714

140,502

137,431

91,524

196,565

140,502

137,431

Deferred:

Federal

(1738,~~038~~000)

(1917,~~049~~038)

8(19,~~154~~049)

State

(27,~~911~~615)

(42,~~311~~911)

1(4,~~129~~311)

Foreign

(2,~~053~~950)

(32,~~171~~053)

(~~407~~3,171)

(22,002)

(26,531)

8,876

(48,565)

(22,002)

(26,531)

Total income tax expense

$~~118~~148,~~500~~000

$~~110~~118,~~900~~500

$~~100~~110,~~400~~900

A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows:

	Year ended October 31,
	2024		2023		2022
	2025		2024		2023
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal income tax benefit	2.50	%	2.5	%	2.65	%
Foreign-derived intangible income deduction	(2.4	%)	(1.9	%)	(1.9	%)
Tax benefit related to stock option exercises	(3.0	%)	(2.0	%)	(1.1	%)
Tax-exempt (gains) losses on corporate-owned life insurance policies	(2.3	%)	(.6	%)	2.8	%
Foreign-derived intangible income deduction	(2.5	%)	(2.4	%)	(1.9	%)
Research and development tax credits	(2.1.8	%)	(12.91	%)	(1.59	%)
Tax benefit related to stock option exercises	(2.0	%)	(1.1	%)	(3.6	%)
Tax-exempt gains on corporate-owned life insurance policies	(1.2	%)	(2.3	%)	(.6	%)
Nondeductible compensation	21.23	%	12.42	%	1.24	%
Other, net	.68	%	.6	%	(.26	%)
Effective tax rate	1716.56	%	2017.05	%	20.40	%

Index

The Company's effective tax rate decreased to 16.6% in fiscal 2025, down from 17.5% in fiscal 2024. The decrease in the Company's effective tax rate principally reflects a larger tax benefit from stock option exercises recognized in the first quarter of fiscal 2025. The Company recognized a discrete tax benefit from stock option exercises in the first quarter of fiscal 2025 and 2024 of $27.2 million and $13.6 million, respectively.

The Company's effective tax rate decreased to 17.5% in fiscal 2024, down from 20.0% in fiscal 2023. The decrease in the Company's effective tax rate reflects a larger tax benefit from stock option exercises recognized in the first quarter of fiscal 2024. The Company recognized a discrete tax benefit from stock option exercises in the first quarter of fiscal 2024 and 2023 of $13.6 million and $6.2 million, respectively. Additionally, the decrease in the Company's effective tax rate reflects a larger favorable impact from tax-exempt unrealized gains in the cash surrender values of life insurance policies related to the LCP in fiscal 2024, net of the nondeductible portion of the related gains in the LCP accounts of certain executive officers, as well as increased foreign-derived intangible income, which is subject to a lower tax rate.

On July 4, 2025, the U.S. enacted H.R. 1, commonly referred to as the One Big Beautiful Bill Act (the “Act”), which introduced significant changes to U.S. tax law. Key provisions include the reinstatement of 100% bonus depreciation for qualified property placed in service after January 19, 2025, immediate expensing of domestic R&D expenditures (effective in fiscal 2026 for HEICO), and changes to the methodology for Foreign-Derived Intangible Income (“FDII”) and Global Intangible Low-Tax Income ("GILTI") (effective in fiscal 2027 for HEICO). The Act did not have a significant impact on the Company’s fiscal 2025 consolidated financial statements and the Company will continue to evaluate its potential impact on its future consolidated financial statements.

As a result of the Tax Cuts and Jobs Act, the Company began capitalizing R&D costs beginning in fiscal 2023 and amortizing them over five years for income tax purposes. In accordance with one of the provisions of the Act, the Company expects to immediately expense domestic R&D costs for income tax purposes beginning in fiscal 2026 and will elect to deduct the remaining unamortized domestic R&D costs that were capitalized over a two-year period ending in fiscal 2027.

The Company files income tax returns in the U.S. federal jurisdiction and in multiple state jurisdictions. The Company is also subject to income taxes in certain jurisdictions outside the U.S., none of which are individually material to the accompanying consolidated financial statements. Generally, the Company is no longer subject to U.S. federal, state or foreign examinations by tax authorities for years prior to fiscal 2021. One of the Company's foreign subsidiaries files income tax returns in The Netherlands and Thailand where the statute of limitations is open for its fiscal 2015 returns.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company believes that it is more likely than not that it will

Index

~~The~~generate ~~Company's~~sufficient ~~effective~~future ~~tax~~taxable ~~rate~~income ~~decreased~~ to ~~17.5%~~utilize inall ~~fiscal 2024, down from 20.0% in fiscal 2023. The decrease in the Company's effective tax rate reflects a larger tax benefit from stock option exercises recognized in the first quarter~~ of ~~fiscal~~its ~~2024. The~~deferred ~~Company recognized a discrete~~ tax ~~benefit~~assets ~~from stock option exercises in both the first quarter of fiscal 2024~~ and ~~2023~~has oftherefore ~~$13.6 million~~not ~~and~~recorded ~~$6.2 million, respectively. Additionally, the decrease in the Company's effective tax rate reflects~~ a ~~larger~~valuation ~~favorable~~allowance ~~impact~~on ~~from~~any ~~tax-exempt~~such unrealized gains in the cash surrender values of life insurance policies related to the HEICO Leadership Compensation Plan (the “LCP”) in fiscal 2024, net of the nondeductible portion of the related gains in the LCP accounts of certain executive officers, as well as increased foreign-derived intangible income, which is subject to a lower tax rateasset.

~~The~~Significant ~~Company's~~components ~~effective~~of ~~tax rate decreased to 20.0% in fiscal 2023, down from 20.4% in fiscal 2022. The decrease in~~ the Company'’s ~~effective~~deferred tax ~~rate~~assets ~~principally~~and ~~reflects~~liabilities aare ~~favorable impact from tax-exempt unrealized gains in the cash surrender values of life insurance policies related to the LCP in fiscal 2023~~ as ~~compared~~follows ~~to tax-exempt unrealized losses recognized~~ (in fiscal 2022. This was partially offset by a larger tax benefit from stock option exercises recognized in the first quarter of fiscal 2022 and the portion of acquisition costs associated with fiscal 2023 acquisitions that were not deductible for income tax purposes. The Company recognized a discrete tax benefit from stock option exercises in both the first quarter of fiscal 2023 and 2022 of $6.2 million and $17.8 million, respectively.thousands):

The Company files income tax returns in the U.S. federal jurisdiction and in multiple state jurisdictions. The Company is also subject to income taxes in certain jurisdictions outside the U.S., none of which are individually material to the accompanying consolidated financial statements. Generally, the Company is no longer subject to U.S. federal, state or foreign examinations by tax authorities for years prior to fiscal 2020. One of the Company's foreign subsidiaries files income tax returns in The Netherlands and Thailand where the statute of limitations is open for its fiscal 2015 returns.


	As of October 31,
	2025	2024
Deferred tax assets:
Inventories	$107,395	$92,498
Deferred compensation plan liability	67,433	57,016
Capitalized research and development costs	65,424	48,820
Operating lease liabilities	28,384	28,270
Contract liabilities (deferred revenue)	15,724	6,146
Share-based compensation	14,797	11,387
Performance-based compensation accrual	10,060	8,183

Other	18,030	21,657
Total deferred tax assets	327,247	273,977

Deferred tax liabilities:
Goodwill and other intangible assets	(358,691)	(330,624)
Property, plant and equipment	(45,834)	(27,701)
Operating lease right-of-use assets	(27,022)	(26,766)
Other	(2,886)	(3,042)
Total deferred tax liabilities	(434,433)	(388,133)
Net deferred tax liability	($107,186)	($114,156)

~~Deferred~~As ~~income~~of ~~taxes~~October ~~reflect~~31, 2025 and 2024, the ~~net~~Company’s ~~tax~~liability ~~effects~~for ofgross ~~temporary~~unrecognized ~~differences~~tax ~~between~~benefits ~~the~~related ~~carrying~~to ~~amounts~~uncertain oftax ~~assets~~positions was $8.9 million and ~~liabilities~~$6.5 ~~for~~million, ~~financial~~respectively, ~~reporting~~of ~~purposes~~which $7.0 million and ~~the~~$5.1 ~~amounts~~million, ~~used~~respectively, ~~for~~would decrease the Company’s income tax ~~purposes. The~~expense ~~Company~~and ~~believes~~effective ~~that~~income ittax israte ~~more~~if ~~likely~~the ~~than~~tax ~~not~~benefits ~~that~~were itrecognized. A ~~will~~reconciliation ~~generate~~of ~~sufficient~~the ~~future~~activity ~~taxable~~related ~~income~~ to ~~utilize~~the ~~all~~liability offor ~~its~~gross ~~deferred~~unrecognized tax ~~assets~~benefits ~~and~~during ~~has~~fiscal ~~therefore~~2025 ~~not~~and ~~recorded~~2024 ais ~~valuation~~as ~~allowance~~follows on(in ~~any such asset.~~thousands):


	Year ended October 31,
	2025	2024
Balance as of beginning of year	$6,451	$4,363
Increases related to current year tax positions	3,182	2,521
Increases related to prior year tax positions	—	88
Decreases related to prior year tax positions	(120)	—
Lapses of statutes of limitations	(628)	(521)
Balance as of end of year	$8,885	$6,451

Index

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	As of October 31,
	2024	2023
Deferred tax assets:
Inventories	$92,498	$85,560
Deferred compensation plan liability	57,016	44,882
Capitalized research and development costs	48,820	29,142
Operating lease liabilities	28,270	26,771
Share-based compensation	11,387	10,665
Performance-based compensation accrual	8,183	6,632
Contract liabilities (deferred revenue)	6,146	2,885
Interest expense limitation carryforward	4,869	24,770
Other	16,788	19,092
Total deferred tax assets	273,977	250,399
Deferred tax liabilities:
Goodwill and other intangible assets	(330,624)	(324,774)
Property, plant and equipment	(27,701)	(28,533)
Operating lease right-of-use assets	(26,766)	(25,620)
Other	(3,042)	(3,318)
Total deferred tax liabilities	(388,133)	(382,245)
Net deferred tax liability	($114,156)	($131,846)

As a result of the Tax Cuts and Jobs Act, the Company began capitalizing research and development costs beginning in fiscal 2023, which are now amortized over five years for income tax purposes.

As of October 31, 2024 and 2023, the Company’s liability for gross unrecognized tax benefits related to uncertain tax positions was $6.5 million and $4.4 million, respectively, of which $5.1 million and $3.4 million, respectively, would decrease the Company’s income tax expense and effective income tax rate if the tax benefits were recognized. A reconciliation of the activity related to the liability for gross unrecognized tax benefits during fiscal 2024 and 2023 is as follows (in thousands):

	Year ended October 31,
	2024	2023
Balances as of beginning of year	$4,363	$3,503
Increases related to current year tax positions	2,521	1,356
Increases related to prior year tax positions	88	214
Lapses of statutes of limitations	(521)	(710)
Balance as of end of year	$6,451	$4,363

Index

8. FAIR VALUE MEASUREMENTS

The Company's assets and liabilities that were measured at fair value on a recurring basis are set forth by level within the fair value hierarchy in the following tables (in thousands):


	As of October 31, 2025
	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets:
Deferred compensation plan:
Corporate-owned life insurance	$—	$378,930	$—	$378,930
Money market fund	11,940	—	—	11,940
Total assets	$11,940	$378,930	$—	$390,870

Liabilities:
Contingent consideration	$—	$—	$46,198	$46,198

As of October 31, 2024

Quoted Prices
in Active Markets for Identical Assets
(Level 1)

Significant
Other Observable Inputs
(Level 2)

Significant Unobservable Inputs
(Level 3)

Total

Assets:

Deferred compensation plan:

Filing Compare · HEICO CORP