HEICO Corporation

Record Q3 results; strong profitability + margins expanding - Net sales: $1.413B (+23% YoY); consolidated operating income: $355.2M (+34% YoY); net income: $235.4M (+33% YoY) ($1.67/diluted share vs $1.26 in Q3 FY25). - Electronic Technologies Group (ETG) set records: Operating income +55% and Net sales +36% (driven by ~18% organic growth + acquisitions). - Flight Support Group (FSG) set records: Operating income +24% and Net sales +18% (driven by ~12% organic growth + acquisitions).

Cash flow “fact” story: operating cash flow surged and conversion remains very strong - Cash generated from operations: $345M in Q3 (+49% YoY, vs $231.2M), described as ~150% of net income. - Management emphasized they judge performance by cash margins (EBITDA/cash margin) rather than GAAP operating margin affected by amortization of acquisition intangibles. - CFO/management suggested free cash conversion from EBITDA ~70% (noted as likely another year with high conversion) and expects strong free cash generation heading into the year-end, reiterating no “structural” change—more the mix and growth lifting cash.

Balance sheet/liquidity actions: capital structure strengthened to fund M&A - Issued $1.2B senior unsecured notes and used proceeds to repay revolver borrowings. - Amended/extended revolver: maturity to June 2031, committed capital to $2.2B; added feature for capacity increase to $3B (via lender commitments) with additional extension options. - Management framed this as positioning HEICO to continue its long-term growth via acquisitions.