Company: HEI-A
Filing Date: 2025-12-22
Form Type: 10-K
Source: 0000046619-25-000082
Chunk: 39

Company: HEICO CORP
Filing Date: 2025-12-22
Form: 10-K
Item: Item 1A
Chunk 39
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communication and information systems failure, political unrest or similar events.  Our corporate headquarters and facilities located in Florida are particularly susceptible to hurricanes, storms, tornadoes or other natural disasters that could disrupt our operations, delay production and shipments, and result in large expenses to repair or replace the facility or facilities.  Should insurance or other risk transfer mechanisms, such as our existing disaster recovery and business continuity plans, be insufficient to recover all costs, we could experience a material adverse effect on our business, financial condition and results of operations.

20

We are subject to the risks associated with sales to foreign customers, which could harm our business.

    We market our products and services to approximately 130 countries, with approximately 38% of our consolidated net sales in fiscal 2025 derived from sales to foreign customers.  We expect that sales to foreign customers will continue to account for a significant portion of our revenues in the foreseeable future.  As a result, we are subject to risks of doing business internationally, including the following:

•Fluctuations in currency exchange rates;

•Geopolitical unrest, war, terrorism and other acts of violence; 

•Volatility in foreign political, regulatory, and economic environments;

•Ability to obtain required export licenses or approvals;

•Uncertainty of the ability of foreign customers to finance purchases;

•Uncertainties and restrictions concerning the availability of funding credit or guarantees;

•Imposition of taxes, export controls, tariffs, embargoes and other trade restrictions;

•Compliance with a variety of international laws, as well as U.S. laws affecting the activities of U.S. companies abroad such as the U.S. Foreign Corrupt Practices Act; and

•Transportation delays and other supply chain disruptions.

    While the impact of these factors is difficult to predict, any one or more of these factors may have a material adverse effect on our business, financial condition and results of operations.

Cybersecurity events or other disruptions of our information technology systems could adversely affect our business.

    We rely on information technology systems, some of which are managed by third parties, to process, transmit and store electronic information, and to manage or support a variety of critical business processes and activities.  We also collect and store sensitive data, including confidential business information and personal data that are subject to privacy and security laws and regulations.  Certain of our businesses that perform work for the U.S. Department of Defense are also required to comply with applicable cybersecurity standards, including the Department of Defense’s Cybersecurity Maturity Model Certification (“