Company: HEI-A
Filing Date: 2025-02-28
Form Type: 10-Q
Source: 0000046619-25-000015
Chunk: 54

Company: HEICO CORP
Filing Date: 2025-02-28
Form: 10-Q
Item: Item 2
Chunk 54
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G's organic net sales growth is mainly attributable to increased demand for its defense, space and aerospace products resulting in net sales increases of $16.1 million, $13.5 million and $4.9 million, respectively, partially offset by a slight decrease in demand for its other electronics and medical products.  Sales price changes were not a significant contributing factor to the change in net sales of the FSG and ETG in the first quarter of fiscal 2025.

Gross Profit and Operating Expenses 

Our consolidated gross profit margin improved to 39.4% in the first quarter of fiscal 2025, up from 38.7% in the first quarter of fiscal 2024 principally reflecting increases of 1.0% and .6% in the ETG's and FSG’s gross profit margin, respectively.  The increase in the ETG's gross profit margin principally reflects the previously mentioned higher net sales of space, defense and aerospace products, partially offset by the previously mentioned slight decrease in net sales of other electronics and medical products.  The increase in the FSG's gross profit margin principally reflects the previously mentioned higher net sales within our aftermarket replacement parts product line.  Total new product research and development expenses included within our consolidated cost of sales were $27.6 million in the first quarter of fiscal 2025, up from $25.1 million in the first quarter of fiscal 2024.  

Our consolidated selling, general and administrative ("SG&A") expenses were $178.9 million in the first quarter of fiscal 2025, as compared to $166.6 million in the first quarter of fiscal 2024.  The increase in consolidated SG&A expenses principally reflects costs incurred to support the previously mentioned net sales growth resulting in increases of $4.3 million and $3.9 million in selling expenses and general and administrative expenses, respectively, as well as $4.0 million attributable to our fiscal 2024 and 2025 acquisitions.

Our consolidated SG&A expenses as a percentage of net sales improved to 17.4% in the first quarter of fiscal 2025, down from 18.6% in the first quarter 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. 

26

Operating Income

Our consolidated operating income increased by 26% to a record $226.8 million in the first quarter of fiscal 2025, up from $180.2