Company: HEI-A
Filing Date: 2025-02-28
Form Type: 10-Q
Source: 0000046619-25-000015
Chunk: 55

Company: HEICO CORP
Filing Date: 2025-02-28
Form: 10-Q
Item: Item 2
Chunk 55
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 million in the first quarter of fiscal 2024.  The increase in consolidated operating income principally reflects a $30.0 million increase (a 22% increase) to a record $166.1 million in operating income of the FSG and a $21.1 million increase (a 38% increase) to $76.5 million in operating income of the ETG.  The increase in operating income of the FSG and ETG principally reflects the previously mentioned net sales growth, SG&A efficiencies realized from the net sales growth, and the improved gross profit margin at each operating segment. 

Our consolidated operating income as a percentage of net sales improved to 22.0% in the first quarter of fiscal 2025, up from 20.1% in the first quarter of fiscal 2024.  The increase in consolidated operating income as a percentage of net sales principally reflects an increase in the ETG's operating income as a percentage of net sales to 23.1% in the first quarter of fiscal 2025, up from 19.3% in the first quarter of fiscal 2024 and an increase in the FSG’s operating income as a percentage of net sales to 23.3% in the first quarter of fiscal 2025, up from 22.0% in the first quarter of fiscal 2024.  The increase in the ETG's operating income as a percentage of net sales principally reflects a 2.8% impact from lower SG&A expenses as a percentage of net sales, mainly due to the previously mentioned efficiencies realized from the net sales growth, as well as the previously mentioned improved gross profit margin.  The increase in the FSG's operating income as a percentage of net sales principally reflects the previously mentioned improved gross profit margin and a .7% impact from a decrease in SG&A expenses as a percentage of net sales, primarily driven by the previously mentioned efficiencies.

Interest Expense

Interest expense decreased to $32.5 million in the first quarter of fiscal 2025, down from $38.6 million in the first quarter of fiscal 2024.  The decrease in interest expense was principally due to a decrease in the amount of outstanding debt.

Other Income  

Other income in the first quarter of fiscal 2025 and 2024 was not material.

Income Tax Expense 

Our effective tax rate decreased to 7.0% in the first quarter of fiscal 2025, down from 11.8% in the first quarter of fiscal 202