Heico Corp.

Record Q3 results with strong YoY growth (23% sales, 33% net income) + margin/cash strength - Net sales $1,413.1M (+23% YoY); operating income $355.2M (+34% YoY); net income $235.4M (+33% YoY); EPS $1.67 (vs. $1.26 in Q3 FY25). - Electronic Technologies Group (ETG) hit all-time quarterly highs: operating income +55% and net sales +36% YoY. - Flight Support Group (FSG) also hit all-time highs: operating income +24% and net sales +18% YoY. - Consolidated EBITDA $415.2M (+31% YoY) and net debt/EBITDA improved to 1.57x (from 1.60x).

Organic growth is broad-based and supported by strong demand/backlog - FSG: 12% organic sales growth across all product lines; management also emphasized ~20% organic operating income growth (investors’ key profitability metric). - ETG: 18% organic net sales growth; demand strengthening tied to “other electronics/defense/aerospace products,” with higher aerospace mix helping margins. - Bookings/backlog described as strong and expanding, with customers requesting expediting/pull-forward and then continuing to place additional orders (i.e., not behaving like a simple timing shift).

Margins expanding; “cash margins” outperform GAAP due to intangibles amortization - FSG operating margin 25.9% (up from 24.7%); management noted acquisition-related intangible amortization consumed ~200 bps, but cash margin/EBITDA ~28.5% (vs. 27.4% prior year). - ETG operating margin 26.0% (up from 22.8%); intangibles consumed ~390 bps, with cash margin ~29.9% (vs. 26.6% in Q3 FY25). - Surprising/positive investor takeaway: despite large GAAP intangible amortization, cash margins are very high and rising, reinforcing management’s “earnings are opinion, cash flow is fact” framing.