HEICO Corporation (HEI) SEC Filings & Earnings Calls

Interest expense increase

“Interest expense was $35.9 million in the third quarter of fiscal 2026, as compared to $31.7 million in the third quarter of fiscal 2025. The increase in interest expense was principally due to an increase in the amount of outstanding debt” · word for word

Effective tax rate increase

“Our effective tax rate was 20.6 % in the third quarter of fiscal 2026, as compared to 18.9 % in the third quarter of fiscal 2025.” · word for word

Debt refinancing risk mitigated by fixed-rate long-term notes

“Issued $1.2B in senior notes at 4.950% and 5.400% to repay revolver; leverage ratios improving”

Increased leverage from $1.2B debt issuance; interest expense burden.

“$550M 4.950% notes due 2031 and $650M 5.400% notes due 2036”

Covenants limit ability to incur additional secured debt or engage in sale/leaseback.

“limit the Company’s and its subsidiaries’ ability to grant liens to secure indebtedness or engage in sale and leaseback transactions” · word for word

Acquisition integration risk

“Our results of operations for the six and three months ended April 30, 2026 have been affected by the fiscal 2025 acquisitions” · word for word

Interest rate exposure

“Interest expense increased to $34.2 million in the second quarter of fiscal 2026, as compared to $32.9 million in the second quarter of fiscal 2025. The increase in interest expense was principally due to an increase in the amount of outstanding debt” · word for word

Leverage increased due to acquisitions; total debt to net income ratio 3.28x vs 3.14x; net debt to EBITDA 1.74x vs 1.60x.

“total debt to net income attributable to HEICO ratio was 3.28x as of April 30, 2026, as compared to 3.14x as of October 31, 2025; net debt to EBITDA ratio was 1.74x as of April 30, 2026, as compared to 1.60x as of October 31, 2025.” · word for word

ETG margin pressure from product mix

“The decrease in the ETG's gross profit margin principally reflects a less favorable product mix of defense products and the previously mentioned decrease in net sales of space products” · word for word

Space product demand decline

“partially offset by a decrease in demand for its space products resulting in a net sales decrease of $3.4 million.” · word for word

Leverage increased due to acquisition; total debt to net income ratio 3.52x

“Our total debt to net income attributable to HEICO ratio was 3.52x as of January 31, 2026, as compared to 3.14x as of October 31, 2025” · word for word

Key Person Risk

“Sadly, in 2025 we lost three valued members of the HEICO family. ... Laurans A. Mendelson, HEICO’s Executive Chairman of the Board, passed away on September 27, 2025.” · word for word

Acquisition Integration Risk

“In fiscal 2025, HEICO’s acquisition program remained robust, and we completed five high-quality acquisitions and agreed to make two more” · word for word

Aviation Industry Cyclicality

“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.” · word for word

Defense Spending Dependency

“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.” · word for word

Customer Concentration

“Our executive officers and directors have significant influence over our management and direction.” · word for word