Company: HEI-A
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0000046619-25-000062
Chunk: 54

Company: HEICO CORP
Filing Date: 2025-08-27
Form: 10-Q
Item: Item 8
Chunk 54
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 2024.

Our consolidated selling, general and administrative ("SG&A") expenses were $560.6 million in the first nine months of fiscal 2025, as compared to $502.0 million in the first nine months of fiscal 2024.  The increase in consolidated SG&A expenses reflects $21.8 million attributable to our fiscal 2024 and 2025 acquisitions, $19.9 million attributable to changes in the estimated fair value of accrued contingent consideration, $11.1 million of higher performance-based compensation expense and $12.5 million of higher other selling expenses, partially offset by a $6.6 million decrease in other general and administrative expenses.

Our consolidated SG&A expenses as a percentage of net sales improved to 17.1% in the first nine months of fiscal 2025, down from 17.7% in the first nine months of fiscal 2024.  The decrease in consolidated SG&A expenses as a percentage of net sales principally reflects efficiencies realized from the previously mentioned net sales growth, partially offset by a .7% 

30

impact from the previously mentioned changes in the estimated fair value of accrued contingent consideration.

Operating Income

Our consolidated operating income increased by 22% to a record $740.0 million in the first nine months of fiscal 2025, up from $605.8 million in the first nine months of fiscal 2024.  The increase in consolidated operating income principally reflects a $110.9 million increase (a 25% increase) to a record $549.4 million in operating income of the FSG and a $29.0 million increase (a 14% increase) to a record $235.3 million in operating income of the ETG.  The increase in operating income of the FSG principally reflects the previously mentioned net sales growth, improved gross profit margin and SG&A expense efficiencies realized from the net sales growth, partially offset by a $13.9 million impact from changes in the estimated fair value of accrued contingent consideration.  The increase in operating income of the ETG principally reflects the previously mentioned net sales growth and SG&A expense efficiencies realized from the net sales growth, partially offset by the previously mentioned slight decrease in gross profit margin.

Our consolidated operating income as a percentage of net sales improved to 22.6% in the first nine months of fiscal 2025, up from 21.3% in the first nine months of fiscal 2024.  The increase in consolidated operating income as a percentage of net