HEICO CORP (HEI)

How they make money

The company 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 maⓘ

Revenue mix

029-10-31iso4217:USDiso4217:USDxbrli:sharesxbrli:sharesxbrli:pureiso4217:CADhei:segment00000466192024-11-012025-10-310000046619hei:HeicoCommonStockMember2024-11-012025-10-310000046619us-gaap:CommonClassAMember2024-11-012025-10-3100000466192025-04-300000046619hei:HeicoCommonStockMember2025-12-190000046619us-gaap:CommonClassAMember2025-12-1900000466192025-10-3100000466192024-10-310000046619hei:HeicoCommonStockMember2024-10-310000046619hei:HeicoCommonStockMember2025-10-310000046619us-gaap:CommonClassAMember2024-10-310000046619us-gaap:CommonClassAMember2025-10-3100000466192023-11-012024-10-3100000466192022-11-012023-10-310000046619heⓘ

Economics & cash

Revenue $4.49B. Gross margin 3.6%. Operating margin 22.7%. FCF (OCF−capex) $861.4M. ted Financial Statements. 35 Index 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 Analysiⓘ

Balance sheet & capital allocation

Cash & equivalents $139.5M; long-term debt (XBRL concept) $14.1M; goodwill $3.66B; SBC $4.4M; diluted/basic shares signal 54.2M shares. ll be distributable ratably among the holders of both classes of common stock. Share Repurchases In 1990, the Company's Board of Directors authorized a share repurchase program, which allows the Company to repurchase shares of Company common stock in the open market or in privately negotiated transactions at the Company's discretion, subject to certain restrictions included in ⓘ

Quality & fragility

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 fund11,940 — — 11,940 Total assets$11,940 $378,930 $— $390,870ⓘ

What management is saying

ally reflecting the previously mentioned higher consolidated operating income. Outlook Looking ahead to fiscal 2026, we anticipate net sales growth in both the FSG and ETG, driven by organic growth from increased demand for the majority of our products as well as growth through our recent acquisitions. We will continue to pursue selective acquisition opportunities to complement this growth. Our disciplined financial management remains dedicated to creating long-term shareholder vaⓘ

Risks that aren’t boilerplate

PART I Item 1.Business 1 Information About Our Executive Officers 16 Item 1A.Risk Factors 17 Item 1B.Unresolved Staff Comments 27 Item 1C.Cybersecurity 27 Item 2.Properties 29 Item 3.Legal Proceedings 29 Item 4.Mine S…ⓘ

cers 16 Item 1A.Risk Factors 17 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 C…ⓘ

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, l…ⓘ

ir 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 confor…ⓘ

e following estimated useful lives: 63 Index Customer relationships3to17years Intellectual property3to22years Other5to19years Amortization expense of intellectual property is recorded as a component of cost of sales a…ⓘ

Open questions

1. Which mix shift (segment / geo / product) actually drove the latest year — and is it durable?
2. How much of FCF is structural vs working-capital / one-time timing?
3. What does capital allocation imply for per-share value after SBC and M&A?
4. Which risk in the filing would change the thesis if it worsened for 2–3 years?