Company: HEI-A
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0000046619-25-000062
Chunk: 25

Company: HEICO CORP
Filing Date: 2025-08-27
Form: 10-Q
Item: Item 1
Chunk 25
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in thousands): Nine months ended July 31,Three months ended July 31,2025202420252024Flight Support Group:Aerospace$1,721,374 $1,439,507 $615,053 $499,917 Defense and Space 516,287 449,838 172,286 161,160 Other (1)45,244 58,229 15,322 20,549 Total net sales2,282,905 1,947,574 802,661 681,626 Electronic Technologies Group:Defense and Space 524,577 470,427 182,590 169,670 Other (2)309,864 295,089 104,524 94,647 Aerospace 193,904 161,877 68,749 57,812 Total net sales1,028,345 927,393 355,863 322,129 Intersegment sales (35,617)(30,963)(10,933)(11,509)Total consolidated net sales$3,275,633 $2,844,004 $1,147,591 $992,246 (1)    Principally industrial products.(2)    Principally other electronics and medical products.

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7.     INCOME TAXES

The Company's effective tax rate decreased to 16.0% in the first nine months of fiscal 2025, down from 17.3% in the first nine months of fiscal 2024.  The decrease in the Company's effective tax rate principally reflects a larger tax benefit from stock option exercises recognized in the first quarter of fiscal 2025.  The Company recognized a discrete tax benefit from stock option exercises in the first quarter of fiscal 2025 and 2024 of $27.2 million and $13.6 million, respectively.The Company's effective tax rate increased to 18.9% in the third quarter of fiscal 2025, up from 18.0% in the third quarter of fiscal 2024.  The increase in the Company’s effective tax rate principally reflects the prior year favorable impact from the reversal of accrued contingent consideration associated with a subsidiary acquired by the ETG in a stock acquisition and a larger income tax credit for qualified research and development activities recognized in the third quarter of fiscal 2024.On July 4, 2025, the United States