HEICO Corp Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Lawrence Solow - CJS Securities Inc - Analyst : I appreciate the comments on Larry and I'm sure he's smiling down on the real strong free cash flow this quarter. So congrats on that. First question, Eric, I guess, for you. Just on the growth in -- as we look out at FSG, I think we used to do US sort of a high-single, low-double digit grower and growth in mid-teens plus on the core business for about five-plus years. Maybe the first couple were COVID recovery. But just trying to -- as we look out, it feels like all the positives continue to align in your direction. But could you just help us just kind of bucket what these drivers? Clearly, the market is growing nicely, but I don't know if growth has accelerated above historical levels where we are today. But is it just your expanded parts offering? Is it market share? Is it just more acceptance of your parts? Just trying to -- if you could just bucket those multiple positives that's been driving your business. Eric Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Flight Support Group Sure, Larry, I'd be happy to do that. And thank you very much for your kind comments. Yes, we're sure dad would be very, very happy with these results. I'm sure he is. So you're right, the organic growth has been tremendous. And frankly, it's even surprised us and me. I've always been optimistic, and I've always thought that we would continue to outgrow the market, but we continue to do so in a much more meaningful way. So you're right. Why is that? I think it's a number of things. Number one, of course, we want to be grateful for the rising tide environment in the industry. So that's been terrific and that's been very strong for us. But I think the other thing that's been really good is the value proposition that HEICO offers our customers. The thing that LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 19, 2025 / 2:00PM, HEI.N - Q4 2025 HEICO Corp Earnings Call perhaps I'm most proud about is that we've had 16% organic growth in this quarter and another 5% acquired on top of that for a total of 21% sales growth. But operating income increased 30%, and at the same time, our customers are incredibly happy in getting huge value from us. So we've been able to drive operating income, if you will, primarily off of the organic sales growth, and our customers are still very happy. So I think that speaks to a tremendous sales opportunity that we have really in all of our businesses, whether it's in the PMA parts, repair, distribution, specialty manufacturing, defense, the same. And I'm talking over on the Flight Support Group side, and then, of course, on the ETG, more growth opportunity there. But I really think it's the value proposition that we offer combined with our decentralized and very entrepreneurial structure. I get e-mails before -- after we announced the earnings from a number of different people within HEICO, and -- basically thanking me for the incredible results. And I turn around and say, no, yes, we've been very good on capital allocation, but they are the ones who really deliver these results. We're just reporting the results that they deliver. And it's as a result of being very intimate with their product line, understanding their customers, the whole competitive dynamic. So I think that as there are more aircraft out there and there's increased demand in both commercial aircraft as well as defense products and missile interceptors, I think that we are just incredibly well positioned. So look, the organic growth has surprised me. That's one of the reasons why we don't give guidance, because we don't know where it's going to be. We just know at HEICO that we've got 11,000 people come to work every day, put their heads down and work as hard as they possibly can, and frankly, the results are the results, so -- but I do think that the value proposition is tremendous. And I guess, lastly, one of the other things that I think we've seen over the last number of years is that other manufacturers are increasing their prices substantially. And I think that just further supports the HEICO value proposition. So we're -- I think we're just in a great place right now.

Question: Lawrence Solow - CJS Securities Inc - Analyst : All right, great. I appreciate it. Thanks for the color. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 19, 2025 / 2:00PM, HEI.N - Q4 2025 HEICO Corp Earnings Call

Question: Ronald Epstein - Bofa Merrill Lynch Asset Holdings Inc - Analyst : And again, you know, my condolences about your father. The -- on the quarter itself, let's just do a couple quick things. How are things looking for M&A as we go into 2026? Victor Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Electronic Technologies Group Very strong. I mean, we're working on a lot of opportunities. I would say, each quarter, we seem to feel like it can't get any busier. Our pipeline is busier and busier. But that's exactly what happened at -- in this past quarter, and actually in recent weeks since the quarter ended. So we've got a lot we're working on, a lot that we're looking at. Of course, as you know, Ron, it doesn't happen until it closes. And there's just a lot of work, a lot of diligence. We're extraordinarily discerning in what we'll buy. But there, we're fortunate in that we are known as a great home for sellers, particularly entrepreneur, founder-managers, and others who are really going to take care of the businesses, not only honor the legacy but keep the entrepreneurial environment. So there's a lot of opportunity for us. We'll see what we're able to mine out but we're cautiously optimistic. Eric Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Flight Support Group And Ron, I would also just add to that. So we started really our acquisition program in earnest about '27 years ago. And we really acquired, I don't know, 110 companies and we really have a track record. It's not just 1-, 2-, 3-, 5-, 10-year track record. It's a very, very long track record in DNA which is embedded in the company. So when we talk to sellers, I think we're viewed in a very, very different light and as a result, we've got just a tremendous -- we've got a lot of bandwidth, and we also have a lot of different sellers who really view us as the buyer of choice. So I think we're in a really good position there.

Question: Ronald Epstein - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Got it. And then maybe just one last one for me. And -- how's it working on -- you guys had mentioned last year about doing PMA parts for defense. How's that going? Is there any progress on that front? Eric Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Flight Support Group Ron, this is Eric. So yes, there has been progress on that front. But as we always said, it was really going to be more of a medium-term project. As you know, it takes a little bit of time for the government to do all the stuff that they got to do, but we think that there's a very, very big opportunity there for us, and we're quite excited about it.

Question: Peter Arment - Robert W. Baird & Co Inc - Analyst : Nice results. Eric, you talked a little bit about defense and missile defense. If I remember correctly, defense in space is roughly about a quarter of the FSG segment. Do you see that mix changing much, just given all the growth you're highlighting? Eric Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Flight Support Group I think actually, it's going to probably remain pretty consistent because we have so much growth over on the commercial side that they're doing a great job keeping up with the huge growth over on defense. So I think it's probably going to be somewhat consistent going forward. But I do think that there are massive opportunities for us over on the defense side. And as these -- as our customers become more familiar with our broad capabilities -- and by the way, not only our long-time large defense customers who we continue to support and have a great relationship with, but also the defense tech community, we're doing a lot of work for those guys as well and delivering huge value. We've got design capability, manufacturing capability across a very wide array of products. We're able to solve all sorts of complex problems for them. And so I think that that's just going to continue to be a big opportunity for us, along with the launch business. We've grown -- we don't -- we're very careful at HEICO, we don't talk about specific programs, specific customers, because, frankly, we don't want to give a road map to our competitors on what we're doing. And we say, just look at our results. But I can tell you that there have been very well-known companies coming into HEICO, into our specialty products group, into our other manufacturing businesses, asking to help solve some of this country's major, major problems. And we've -- really, I'm super proud of our team. So I think there's a big opportunity there. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 19, 2025 / 2:00PM, HEI.N - Q4 2025 HEICO Corp Earnings Call

Question: Peter Arment - Robert W. Baird & Co Inc - Analyst : Terrific. Thanks again, guys. Happy holidays.

Question: Ken Herbert - RBC Capital Markets Inc - Analyst : Very nice results. Maybe, Eric, just to start, you've grown FSG margins pretty substantially, about 300 basis points from '21 to -- or '22 to '25. I can appreciate part of that's been mixed with Wencor. You've also seen some opportunities on pricing in other areas. How do we think about FSG margins into fiscal '26 and beyond? And is there any reason we don't see a continued pace of improvement? Eric Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Flight Support Group Ken, so thank you for your question. And yeah, I would -- while we don't give guidance, you're right, we've grown margins substantially. And at the same time, the thing that I'm really proud about is we've kept our customers very happy at that -- while doing that simultaneously. I do think there's continued margin opportunity for us, continued margin expansion as we have basically greater absorption of our, what I'll call, our fixed costs, whether it's in cost of sales or SG&A. I do think that we've got additional leverage there. We've made a number of significant investments over the last number of years to broaden our manufacturing and design and distribution capabilities. And so I think we'll continue to see improved margins there. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 19, 2025 / 2:00PM, HEI.N - Q4 2025 HEICO Corp Earnings Call It's hard for me to guess what that is because the truth is I really don't know. As I mentioned, I think, before, we've got this great decentralized organization and they all submit budgets, which tend to be on the, let's just say, very conservative side. So it's very hard for me to predict going forward what it's going to be. But I just know that at the end of the day, they end up outperforming. So I think Carlos may have some additional thoughts on that.

Question: Ken Herbert - RBC Capital Markets Inc - Analyst : That's helpful, Carlos. Thank you. And if I could, Eric, just one more question. It seems like each time this year we have a debate around better deliveries out of Boeing and Airbus and the implications of what that could mean for aftermarket spending. Can you just comment on what you're seeing with airlines today as they think about 2026 around aircraft retirements, obviously fuel prices are low, continued use of legacy or older assets. Just what's your view on aftermarket fundamentals into 2026? Eric Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Flight Support Group Yeah, it's a great question. And we've got the utmost respect for Boeing and Airbus. And we think that -- as well, of course, Embraer. And we think that they're going to get a lot of the supply chain issues worked out. These are phenomenal companies that put out the best products, unbelievable products, and the world really needs them, and they will get all those -- their situation worked out. So then the question is what happens to the rest of the aftermarket there on the order aircraft. And we think that the order aircraft will continue to be in very good demand. You can see what the retirement rates have been. And again, you've got this older fleet that is a very large fleet, which is continuing to age one year per year and consume a massive amount of parts. So we think that we're in very good position. Again, we're long-term investors, if you will, citizens, residents in the stock. And so if there's a dip, things move up and down a little bit, it doesn't change our view on it. So we're -- for us, we don't really look at the, if you will, the quarter to quarter and sort of the micro moves. We're looking out saying the airlines recognize that there's massive need coming down the road, they need more suppliers. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 19, 2025 / 2:00PM, HEI.N - Q4 2025 HEICO Corp Earnings Call We're there to fill that opportunity on both the independent side as well as the OEM align side, it's whatever our customers want. And so I think we're in a good position, but it should remain quite strong, to answer your question.

Question: Sheila Kahyaoglu - Jefferies LLC - Analyst : Maybe if I could start, and I want to give you guys condolences on Larry, because I think we're also lucky to have known him and he's impacted all of our lives in some ways. Maybe going back to the performance for '25, it's been (inaudible) the quarter as well. Eric, I wanted to ask you, I know everybody's harped on FSG growth and just because it's accelerated in the quarter. If you could give us any detail on maybe the parts of the business that you think will outperform as we head into fiscal '26. And also you've announced some pretty new transactions like EthosEnergy recently and another transaction. So can you talk about how those fit into the broader, both Wencor and the broader FSG? Eric Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Flight Support Group Sure. I would be happy to. And Sheila, thank you also for the very nice comments about dad, and he always respected you and your fellow analysts and really enjoyed his time very much with you all. And so thank you for that. As far as for the subsectors within Flight Support that are going to outperform, I mean, I'm sorry to sound like a broken record, but I think it's really across the board. It's in everything that we're doing. We're seeing strength across the board. So I wouldn't say that there's one area in particular. We are very excited -- you bring up Ethos, and we're very excited about that because they're strong in the IGT market. And of course, you've got all these industrial gas turbines, of which some are aeroderivatives, supporting the AI power demand. And there's, as you know, there's a massive amount of power that has to be created. And these IGTs are, industrial gas turbines, are expected to play a major role there. So we think that we're in very, very good position to help Ethos continue to support their program. And we think that there is just a tremendous amount of opportunity. We like the people very much. They have three different facilities. It's a very decentralized organization, very entrepreneurial. I think there's going to be a big increase in demand on the various components that they overhaul. And we think that it's just a great addition to Wencor. Wencor has been, as HEICO has been, Wencor has been very successful in their markets. And we allocate out the acquisitions according to bandwidth and who's got time and capacity to be able to take on these acquisitions. We're really happy that Wencor has got the talent and the technical ability to help drive that business forward. And we think that we'd get very good performance out of it. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 19, 2025 / 2:00PM, HEI.N - Q4 2025 HEICO Corp Earnings Call

Question: Sheila Kahyaoglu - Jefferies LLC - Analyst : Got it. Sure. Sorry, Victor. I forgot Robertson was in the ETG. Thank you.

Question: John Godyn - Citi Infrastructure Investments LLC - Analyst : I wanted to -- I completely appreciate that we've gone away from annual guidance a long time ago in HEICO. But at the same time, every few years, you guys reiterate that 15% to 20% net income growth kind of multiyear target. And we've had a couple of years of amazing net income growth. And I'd just kind of offer the observation that consensus expectations are for a very sharp deceleration over the next few years. And I just wanted to kind of revisit this idea, take the temperature. How do you feel about 15% to 20% as sort of the multiyear growth number from here a target? And is there anything that you're seeing that suggests a sharp deceleration in growth rates is likely? Eric Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Flight Support Group So John, first of all, thank you very much for your question. This is Eric. I'd be happy to answer that. As you know, the 15% to 20% has always been an aspirational number. The company is designed in a decentralized way, but rolling up into groups. So we can harness the individual and entrepreneurial efforts of our people in the businesses and combine them with technology, market access, capital that the larger groups bring. So I can tell you that all of the subsidiaries have organic growth targets that are consistent with the numbers that you mentioned. And we believe that on the acquisition side, we are in a very good position and continue to be the buyer of choice. The important -- obviously, the important metric for us is EBITDA, which is really operating income plus intangibles amortization due to purchase accounting, because that's really a made-up number, if you will. But I think in terms of growing our [EBITDA], nothing has changed LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 19, 2025 / 2:00PM, HEI.N - Q4 2025 HEICO Corp Earnings Call going forward. Obviously, as we get bigger, it may become more difficult. But of course, as we've gotten bigger, we've hit the numbers and it's become easier. So all I can tell you is we remain very focused and I think we're in a good position going forward. As far as giving guidance -- for us to give guidance, as I've mentioned, is very difficult because our subsidiaries tend to give very conservative guidance to us and then we have to add a number on top of that, and who knows what that number is going to be. But I can tell you, Victor and I spend a lot of time out in the field with our businesses. We're aware of all the technology they're developing. Carlos is out there as well. And I think the future is going to be very good for us, and we're going to continue to outgrow the market. So nothing has changed with our focus on outgrowing the market.

Question: John Godyn - Citi Infrastructure Investments LLC - Analyst : Very clear. Thank you, guys.

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Those were nice comments about your father. It was great to be able to work with him. Just staying on these FSG margins a bit, Carlos, you talked about mix. I guess when we look at the incremental being better in '25 than '24, are you able to parse out the pieces of that? How much of it was that mix, and can you tell us what those mix items are and what you expect them to do next year, and how much of it was any change in pricing philosophy?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay, that's a really helpful color. Yeah, I mean, I think obviously you want to have some conservatism in what you're saying about the forward, but your -- the operating margin is still pretty far below the gross margin. So just all else equal, if you're growing volumes, you would have your normal incrementals and be able to just expand margins over time. Obviously, it's not always all else equal, but okay. Can you size how much revenue you generate from missile and missile defense? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 19, 2025 / 2:00PM, HEI.N - Q4 2025 HEICO Corp Earnings Call

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : Okay. And then how do you expect capital deployed towards acquisitions in '26 to compare to '25, size-wise?

Question: Noah Poponak - Goldman Sachs Group Inc - Analyst : I appreciate all the detail. Thank you so much.

Question: Tony Bancroft - Gabelli International Gold Fund Ltd - Analyst : Obviously, pass along my condolences to Mr. Mendelson. He really was the best of the best and he's going to be sorely missed here at Gabelli. With the Ethos acquisition, like you discussed, it's sort of in one way is sort of going outside your scope of traditional M&A, but another way, obviously, there's a lot of adjacencies. Is -- with the backdrop of the amount of strong growth looking into -- going forward, is there maybe a sort of a new world order or a new outlook on where you would go across aerospace in a sense or maybe other areas of high growth? Maybe you could talk about -- there's so many opportunities out there, and as a sense, whether you're seeing strength there. Maybe you could talk about anything that could be outside your typical adjacencies. Eric Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Flight Support Group Sure. Tony, so first of all, thank you very much for your nice comments about dad, and he always enjoyed his time with you and Mario and held you in the highest regard, both of you. And as far as Ethos, we really like the IGT area. We've been in the IGT area through a number of our businesses for a number of years -- for decades. And we like growing, as we say, into adjacent white spaces where we understand the technology, whether it's the engineering or the operations of the turbine, whether it's the manufacturing or the repair technology, distribution. We think that there's a lot of point of commonality. It's not -- some of them are aeroderivatives so they're very, very similar to the aero side. But other ones are pure industrial gas turbines, very, very large machines. And we think that we understand that space quite well. There's going to be a lot of tailwind for a long period of time. We think we can add a lot of value. Our initial approach there is to go into that market with a very much OEM aligned strategy, and try to continue to develop and grow that. But we think it's just another very good business for us to enter. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 19, 2025 / 2:00PM, HEI.N - Q4 2025 HEICO Corp Earnings Call Victor Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Electronic Technologies Group And Tony, this is Victor. Adding to that, that's really been our history. If you look back over time, when we started out and we took over HEICO, it essentially had one product, right, the combustion chamber and the JT8D engine, and PMA part, that was it for the most part, and did some machining and milling. And over the years, we've stepped very carefully, but I think very intentionally and successfully into, as Eric would say, these white space adjacencies, and it's worked out very nicely. So our product offering today is vastly expanded. It doesn't look anything like it used to but it's happened over time. The saying about boiling the frog is, in a sense, applicable here, that we just do this carefully, slowly, a lot of singles and doubles, no bet the company situations, but we just keep at it. And so I would expect we'll continue doing that. We don't have any other specifics or data that we can share at this point on exactly where we're going, but you can rest assured that they will be sensible and they will be somehow connected to what we're already doing.

Question: Gavin Parsons - UBS AG - Analyst : I guess maybe sort of along those similar lines, how integrated are the HEICO and Wencor part and repair catalogs, and how long can that be a growth tailwind from cross-selling? Eric Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Flight Support Group Well, they are -- we offer a lot of different products across the businesses. There is some overlap. And it --whatever the customer wants. If they want to buy it from one business or the other, that's fine. If they want to work new development projects with one business or the other, that's fine. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 19, 2025 / 2:00PM, HEI.N - Q4 2025 HEICO Corp Earnings Call As I've said, there's -- I always use the analogy, there are many different types of food out there. And some people may want Italian food or American food or French food, whatever. And at HEICO, we really don't care, as long as we're selling them the product. So I think that there are a lot of additional opportunities to work together, but we've already really taken advantage of those and we've really helped the various businesses forward. And I think you can see in the results, it's really worked out quite well.

Question: Alexandra Mandery - Suntrust Robinson Humphrey Capital Markets - Analyst : This is Alexandra Mandery on for Michael Ciarmoli with Truist Securities. In terms of your PMA portfolio, what is the exposure like in terms of new engines, including the (inaudible), and do you see that as an opportunity including first-time shop visits on the PMA front? Eric Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Flight Support Group Yeah, so we normally don't get into details about specific product types or competitors. But in general, I can tell you that when an engine is new, it tends to be under warranty, and that's not a big opportunity for us over on the PMA side. It may be more so over on the repair side. And it's as those platforms age and customers want alternatives, that's when it sort of comes into focus with us. So I would just sort of leave it at that. And -- but I can tell you that our technology that we use to be able to engineer parts is consistent across all engines, all components. And we're very confident about our ability to technically develop the current generation, the next generation, as far as we're concerned, all within our (inaudible).

Question: Alexandra Mandery - Suntrust Robinson Humphrey Capital Markets - Analyst : Great. Thank you so much.

Question: Gautam Khanna - Cowen and Company LLC - Analyst : My condolences. Larry was a fantastic, kind of a legend in the industry, always very generous of his time. I just had a couple of quick ones. One, I remember asking Larry, probably like seven years ago on an earnings call, how he viewed the Class A stock and just what the -- if there's ever going to be a desire to remove it and just get the common. What are your opinions on that? Victor Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Electronic Technologies Group At the moment, I believe it's status quo. We've talked about the issues over time with dad. And of course, the idea of collapsing them requires an exchange value. And were we to do that at one to one, then we'd have perhaps upset common holders. And if we did that at current market prices, we'd have upset Class A holders. And as you know, the two classes are identical in all respects, except for voting. So, identical, the dividends, the economic benefits, the share of earnings, everything, so they really belong ultimately at the same price. There have been times over the years where they've converged. We do believe at some point they will converge and that the Class A is really sort of a screaming value. And in fact, you may notice that when we recently bought shares or directors, purchase shares every year equal to a certain portion of their retainer. And when they bought the shares, they all bought, I think, all bought Class A common shares. So that really is a screaming value. And I think over time, a rational market will recognize that and push them together. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 19, 2025 / 2:00PM, HEI.N - Q4 2025 HEICO Corp Earnings Call

Question: Gautam Khanna - Cowen and Company LLC - Analyst : Okay. And then just my last one, in terms of pipeline of new PMA parts that are going to be introduced, typically, you guys have given a range, could be as many as 500 in a given year. What does the pipeline look like for '26 in terms of what you're introducing to the market? Eric Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Flight Support Group Yeah. I would say it's consistent with what we've done historically. Really, no change there. We're very happy with the with the number of parts that we've come out with. We've been at a similar number for a number of years. It went up when we bought Wencor. But I think you can see from the numbers that I think our decision has been quite good in that regard. And so I wouldn't see any substantive change.

Question: Cashen Keeler - Exane Bnp Paribas - Analyst : This is Cashen on behalf of Matt today. I guess just going off that last question, just wanted to ask on PMA. How supportive has the FAA been regarding parts approvals there? It seems like everything related to FAA approvals, whether it be interiors or new aircraft, has just taken longer, so has that had any impact on your pipeline of new parts? Eric Mendelson - HEICO Corp - Co-Chairman of the Board, Co-Chief Executive Officer, President and Chief Executive Officer of HEICO Flight Support Group No, we've got a great relationship with the FAA, and we interface with them in many different ways, and I would say it's really business as usual for us. We -- no change there. All is progressing very well for us. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 19, 2025 / 2:00PM, HEI.N - Q4 2025 HEICO Corp Earnings Call