Company: HEI-A
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0000046619-25-000046
Chunk: 65

Company: HEICO CORP
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 2
Chunk 65
---
2025 increased by 15% to a record $2,128.0 million, up from net sales of $1,851.8 million in the first six months of fiscal 2024.  The increase in consolidated net sales principally reflects an increase of $214.3 million (a 17% increase) to a record $1,480.2 million in net sales of the FSG and an increase of $67.2 million (an 11% increase) to a record $672.5 million in net sales of the ETG.  The net sales increase in the FSG reflects strong organic growth of 14% and net sales of $42.9 million contributed by fiscal 2025 and 2024 acquisitions.  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 $127.1 million, $30.7 million, and $13.5 million, respectively.  The net sales increase in the ETG reflects strong organic growth of 7% and net sales of $19.3 million contributed by fiscal 2024 and 2025 acquisitions.  The ETG's organic net sales growth is mainly attributable to increased demand for its space, defense, and aerospace products resulting in net sales increases of $20.6 million, $15.0 million, and $9.5 million, respectively, partially offset by a decrease in demand for its medical products resulting in a net sales decrease of $3.1 million.  Sales price changes were not a significant contributing factor to the change in net sales of the FSG and ETG in the first six months of fiscal 2025.

Gross Profit and Operating Expenses

Our consolidated gross profit margin improved to 39.6% in the first six months of fiscal 2025, up from 38.8% in the first six months of fiscal 2024 principally reflecting a 1.4% increase in the FSG’s gross profit margin, partially offset by a .2% decrease in the ETG's gross profit margin.  The increase in the FSG's gross profit margin principally reflects the previously mentioned net sales growth across all of its product lines, inclusive of a more favorable mix of defense products within its specialty products product line.  Total new product research and development expenses included within our consolidated cost of sales were $56.3 million in the first six months of fiscal 2025,