Company: HEI-A
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0000046619-25-000062
Chunk: 60

Company: HEICO CORP
Filing Date: 2025-08-27
Form: 10-Q
Item: Item 8
Chunk 60
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 our revolving credit facility will be sufficient to fund our cash requirements for at least the next twelve months.

Operating Activities

Net cash provided by operating activities was $638.9 million in the first nine months of fiscal 2025 and consisted primarily of net income from consolidated operations of $542.8 million, depreciation and amortization expense of $144.9 million (a non-cash item), net changes in other long-term liabilities and assets related to the HEICO Corporation Leadership Compensation Plan (the "LCP") of $23.0 million (principally participant deferrals and employer contributions), $18.3 million in share-based compensation expense (a non-cash item), and $14.2 million in employer contributions to the HEICO Savings and Investment Plan (a non-cash item), partially offset by an $88.5 million increase in net working capital and a $28.8 million deferred income tax benefit.  The increase in net working capital is inclusive of a $60.2 million increase in inventories to support an increase in consolidated backlog, a $36.1 million increase in accounts receivable resulting from increased net sales and the timing of collections, and a $27.7 million decrease in income taxes payable, partially offset by $28.9 million increase in trade accounts payable.  

Net cash provided by operating activities increased by $172.2 million (a 37% increase) in the first nine months of fiscal 2025, up from $466.7 million in the first nine months of fiscal 2024.  The increase is principally attributable to a $134.6 million increase in net income from consolidated operations and a $44.5 million decrease in net working capital, principally reflecting a lower investment in inventories.

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Investing Activities

Net cash used in investing activities totaled $697.7 million in the first nine months of fiscal 2025 and related primarily to acquisitions of $629.9 million, capital expenditures of $46.0 million, and LCP funding of $21.7 million.  Further details regarding our fiscal 2025 acquisitions may be found in Note 2, Acquisitions, of the Notes to Condensed Consolidated Financial Statements.

Financing Activities

Net cash provided by financing activities in the first nine months of fiscal 2025 totaled $155.2 million.  During the first nine months of fiscal 2025, we borrowed $495.0 million under our revolving credit facility and received $11.7 million in proceeds from stock option exercises