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Free cash flow margin has expanded to 22.8% in Q3 2026, with operating cash flow consistently exceeding net income, indicating high earnings quality and efficient cash conversion.
HEICO Corporation (HEI) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Cash from Operations | 1.11B | 934.27M | 672.37M | 448.74M | 467.86M | 444.08M | 409.13M | 437.38M | 328.49M | 274.88M | 249.18M | 172.86M | 190.69M | 131.84M | 138.59M | 125.52M | 101.72M | 75.82M | 73.16M | 57.45M | 46.91M | 35.81M | 44.05M | 27.88M | 23.29M | 16.53M | 12.13M | 8M | 9.5M | 1.7M | 1.7M |
| Operating CF Margin % | - | 20.83% | 17.43% | 15.12% | 21.19% | 23.8% | 22.89% | 21.28% | 18.48% | 18.03% | 18.11% | 14.54% | 16.84% | 13.07% | 15.44% | 16.41% | 16.49% | 14.08% | 12.56% | 11.31% | 11.96% | 13.28% | 20.42% | 15.8% | 13.53% | 9.65% | 5.98% | 5.66% | 9.96% | 2.67% | 4.91% |
| Operating CF Growth % | 123.59% | 38.95% | 49.84% | -4.09% | 5.35% | 8.54% | -6.46% | 33.15% | 19.5% | 10.31% | 44.15% | -9.35% | 44.64% | -4.87% | 10.41% | 23.4% | 34.16% | 3.63% | 27.35% | 22.47% | 31% | -18.71% | 58% | 19.73% | 40.87% | 36.25% | 51.65% | -15.79% | 458.82% | 0% | -76.06% |
| Net Income | 847.72M | 745.55M | 559.09M | 444.38M | 390.62M | 329.76M | 335.86M | 359.74M | 285.69M | 207.66M | 176.15M | 153.56M | 138.77M | 124.56M | 106.67M | 95.45M | 72.36M | 44.63M | 48.51M | 39.01M | 31.89M | 22.81M | 20.63M | 12.22M | 15.23M | 15.83M | 26.32M | 16.3M | 10.5M | 7M | 9.9M |
| Depreciation & Amortization | 217.58M | 196.08M | 175.33M | 130.04M | 96.33M | 93.02M | 88.56M | 83.5M | 77.19M | 64.82M | 60.28M | 47.91M | 47.76M | 36.79M | 30.66M | 18.54M | 17.6M | 14.97M | 15.05M | 12.17M | 10.56M | 7.41M | 6.78M | 5.08M | 4.53M | 10.59M | 9.78M | 6.1M | 2.8M | 1.6M | 2.1M |
| Stock-Based Compensation | 34.44M | 34.38M | 18.77M | 15.47M | 12.65M | 9.06M | 10.13M | 10.33M | 9.28M | 7.42M | 6.43M | 6.05M | 6.43M | 5.12M | 3.95M | 2.65M | 1.35M | 181K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -17.02M | -48.56M | -22M | -26.53M | 8.88M | -15.63M | -6M | -6.39M | -12.98M | -11.1M | -9.19M | -7.08M | -16.75M | -5.79M | 10.33M | 7.73M | 1.82M | -2.65M | 3.62M | 2.82M | 2.56M | 3.03M | 4.13M | 3.52M | 3.92M | 760K | -175K | 0 | -300K | -500K | -1M |
| Other Non-Cash Items | 26.44M | 31.17M | 62.55M | -10.79M | 5.38M | 13.58M | 14.28M | 9.54M | 8.32M | 10.62M | 9.45M | 2.71M | -6.82M | 1.41M | 2.15M | 4.72M | 1.97M | -1.27M | 22.96M | 19.41M | 13.88M | 7.96M | 6.05M | 2.36M | 3.04M | 2.29M | -12.26M | 3.4M | 1.4M | -200K | -5.6M |
| Working Capital Changes | -48.07M | -24.35M | -121.37M | -103.85M | -46M | 14.3M | -33.71M | -19.34M | -39.02M | 8.87M | 16.59M | -30.29M | 21.3M | -30.26M | -2.02M | 4.12M | 6.63M | 2.86M | -17.13M | -15.96M | -11.98M | -5.4M | 6.47M | 4.04M | -1.85M | -12.94M | -11.52M | -17.8M | -4.9M | -6.2M | -3.7M |
| Change in Receivables | -90.74M | -82.09M | -19.52M | -77.24M | -33.42M | -26.92M | 55.12M | -17.39M | -28.57M | 2.85M | -15.96M | -22.57M | 7M | -16.59M | -5.78M | -5.33M | -10.68M | 15.21M | -4.75M | -13.79M | -5.02M | -6.85M | -6.19M | -101K | 3.42M | 1.19M | -11.57M | -5.4M | -3.8M | -2.7M | 200K |
| Change in Inventory | -63.06M | -44.85M | -132.93M | -124.78M | -89.19M | -10.12M | -28.32M | -30.08M | -49.45M | -21.2M | -14.42M | -10.19M | 126K | -14.88M | -7.48M | -9.4M | 6.36M | -87K | -16.6M | -14.7M | -13.15M | -10.11M | 3.58M | 3.71M | -3M | -6.77M | -7.47M | -12.2M | -4.6M | -2.9M | -3.3M |
| Change in Payables | 48.63M | 27.59M | -9.82M | 10.97M | 25.57M | 6.91M | -30.33M | -3.85M | 17.4M | 6.39M | 4.07M | 3.17M | 2.51M | -23K | 4.27M | 7.26M | 125K | -5.62M | 808K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.11B | -731.69M | -293.2M | -2.48B | -395.83M | -183.45M | -199.04M | -280.65M | -113.51M | -444.81M | -297.62M | -186.01M | -25.19M | -241.31M | -212.71M | -103.9M | -48.26M | -81.3M | -42.33M | -61.19M | -67.56M | -45.9M | -34.17M | -5.21M | -11.38M | -45.88M | 14.74M | -121.5M | -55.4M | -200K | 5.6M |
| Capital Expenditures | -80.95M | -72.89M | -58.26M | -49.43M | -31.98M | -36.18M | -22.94M | -28.94M | -41.87M | -26M | -30.86M | -18.25M | -16.41M | -18.33M | -15.26M | -9.45M | -8.88M | -10.25M | -13.46M | -12.89M | -9.96M | -8.27M | -5.74M | -3.77M | -5.85M | -6.93M | -8.66M | -119.1M | -51.8M | -3.6M | -3.2M |
| CapEx % of Revenue | 1.56% | 1.63% | 1.51% | 1.67% | 1.45% | 1.94% | 1.28% | 1.41% | 2.36% | 1.7% | 2.24% | 1.54% | 1.45% | 1.82% | 1.7% | 1.23% | 1.44% | 1.9% | 2.31% | 2.54% | 2.54% | 3.07% | 2.66% | 2.14% | 3.4% | 4.04% | 4.27% | 84.29% | 54.3% | 5.65% | 9.25% |
| Acquisitions | -1.02B | -629.83M | -219.29M | -2.42B | -347.31M | -136.5M | -163.94M | -240.84M | -59.77M | -418.26M | -263.81M | -166.78M | -8.74M | -222.64M | -197.28M | -94.66M | -39.06M | -71.07M | -29.04M | -48.37M | -58.12M | -41.5M | -28.1M | -1.55M | -4.51M | -61.21M | -24.8M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -4.46M | -49.42M | -15.65M | -13.24M | -16.54M | -10.77M | 3.74M | 2.83M | -365K | -552K | -2.94M | -973K | -40K | -342K | -161K | 201K | -325K | 20K | 166K | 59K | 520K | 3.88M | -335K | 85K | -1.54M | 15.21M | 48.21M | 0 | 300K | 3.4M | 5.9M |
| Cash from Financing | -25.92M | -150.68M | -389.39M | 2.07B | -33.83M | -558.97M | 137.74M | -159.72M | -207.53M | 175.87M | 56.77M | 27.34M | -160.12M | 103.21M | 78.43M | -10.67M | -54.19M | -278K | -22.5M | 3.58M | 20.29M | 15.22M | -13.99M | -22.89M | -11.7M | 28.88M | -28.1M | 110.9M | 30.3M | 11.6M | -900K |
| Debt Issued (Net) | 493.51M | -55M | -248.92M | 2.16B | 50M | -505M | 177M | 30M | -148M | 213.12M | 90M | 41.7M | -47M | 246M | 91M | 22M | -41M | 18M | -17.98M | 0 | 19M | 16M | -14M | -24M | -11.03M | 26.97M | -28.21M | 43.6M | 23M | 1.4M | -2M |
| Equity Issued (Net) | -18.5M | -9.17M | -21.96M | -8.13M | -23.59M | 1.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -307K | -14.3M | -681K | -8.1M | 8.21K | 6.88M | 5.07M | 1.75M | 2.22M | 869K | 238K | 2.43M | 876K | 56.6M | -1M | 1.1M | 1.5M |
| Dividends Paid | -34.89M | -31.97M | -29.07M | -27.37M | -24.47M | -23M | -21.55M | -18.69M | -15.36M | -12.81M | -10.72M | -9.34M | -31.21M | -120.36M | -5.69M | -4.49M | -3.55M | -3.15M | -2.63M | -2.06M | -2M | -1.22M | -1.2M | -1.05M | -1.04M | -941K | -846K | -700K | -600K | -500K | -500K |
| Share Repurchases | -25.33M | -22.39M | -29.91M | -14.85M | -25.95M | -3.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -307K | -14.3M | -681K | -8.1M | 0 | 0 | 0 | 0 | 0 | -120K | -200K | 0 | -105K | -2.6M | -2M | 0 | 0 |
| Other Financing | -466.03M | -54.53M | -89.44M | -62.31M | -35.77M | -32.52M | -17.7M | -171.03M | -44.17M | -24.44M | -22.5M | -5.02M | -81.9M | -22.43M | -6.58M | -13.88M | -8.96M | -18.3M | -1.9M | -1.24M | -1.78M | -1.3M | -1.01M | 1.3M | 140K | 417K | 83K | 11.4M | 8.9M | 9.6M | 100K |
| Net Change in Cash | -20.93M | 55.68M | -8.95M | 31.54M | 31.21M | -298.55M | 349.85M | -2.6M | 7.53M | 9.11M | 9.35M | 13.37M | 4.73M | -5.95M | 3.95M | 10.96M | -624K | -5.39M | 7.62M | -52K | -331K | 5.12M | -4.11M | -218K | 206K | -474K | -1.22M | -2.6M | 30.3M | 11.6M | -900K |
| Free Cash Flow | 1.03B | 861.38M | 614.11M | 399.3M | 435.87M | 407.9M | 386.19M | 408.44M | 286.62M | 248.89M | 218.32M | 154.61M | 174.28M | 113.51M | 123.32M | 116.07M | 92.84M | 65.56M | 59.71M | 44.56M | 36.94M | 27.54M | 38.31M | 24.11M | 17.43M | 9.6M | 3.47M | -111.1M | -42.3M | -1.9M | -1.5M |
| FCF Margin % | 19.9% | 19.21% | 15.92% | 13.45% | 19.74% | 21.86% | 21.61% | 19.87% | 16.12% | 16.32% | 15.86% | 13.01% | 15.39% | 11.25% | 13.74% | 15.17% | 15.05% | 12.18% | 10.25% | 8.77% | 9.42% | 10.21% | 17.76% | 13.66% | 10.13% | 5.61% | 1.71% | -78.63% | -44.34% | -2.98% | -4.34% |
| FCF Growth % | 31.68% | 40.27% | 53.8% | -8.39% | 6.86% | 5.62% | -5.45% | 42.5% | 15.16% | 14% | 41.2% | -11.28% | 53.54% | -7.96% | 6.25% | 25.02% | 41.6% | 9.81% | 33.98% | 20.63% | 34.17% | -28.13% | 58.92% | 38.3% | 81.53% | 176.98% | 103.12% | -162.65% | -2126.32% | -26.67% | -123.81% |
| FCF per Share | 7.29 | 6.12 | 4.38 | 2.87 | 3.16 | 2.96 | 2.81 | 2.97 | 2.10 | 1.84 | 1.64 | 1.17 | 1.32 | 0.87 | 0.95 | 0.89 | 0.72 | 0.51 | 0.46 | 0.35 | 0.29 | 0.22 | 0.31 | 0.19 | 0.13 | 0.08 | 0.03 | -1.09 | -0.47 | -0.06 | -0.05 |
| FCF Conversion (FCF/Net Income) | 1.22x | 1.35x | 1.31x | 1.11x | 1.33x | 1.46x | 1.30x | 1.33x | 1.27x | 1.48x | 1.60x | 1.30x | 1.57x | 1.29x | 1.63x | 1.72x | 1.85x | 1.27x | 1.09x | 1.04x | 1.09x | 1.57x | 2.14x | 2.28x | 1.53x | 1.04x | 0.46x | 0.49x | 0.90x | 0.24x | 0.46x |
| Interest Paid | 0 | 0 | 148.9M | 54.14M | 6.04M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 114.85M | 138.67M | 81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying HEI stock.
HEICO Corporation (HEI) generated $934.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
HEICO Corporation (HEI) generated $861.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
HEICO Corporation (HEI) spent $72.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, HEICO Corporation (HEI) returned $32.0M to shareholders via cash dividends and spent $22.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Acquisition integration risk
Metrics are mathematically derived from official filings.
Earnings Quality Exceeds Reported Net Income
Operating cash flow has consistently exceeded net income, with the OCF/NI ratio averaging 1.33 over the last ten quarters, indicating high-quality earnings and strong cash conversion.
The persistent premium of operating cash flow over net income suggests that HEICO's reported profits are backed by tangible cash generation, not accounting adjustments. This strong conversion is likely driven by the company's high-margin, aftermarket business model and disciplined working capital management, providing a solid foundation for funding its acquisition-driven growth strategy.
FCF Margin Expansion Outpaces Net Income
Free cash flow margin has expanded from 13.4% in Q2 2024 to 22.8% in Q3 2026, demonstrating that the company's profitability is translating into accelerating cash generation.
The FCF margin trajectory is particularly impressive as it has expanded faster than the net income margin, indicating that the company is not only growing profitably but also becoming more efficient at converting those profits into free cash. This trend supports the thesis that HEICO's growth is self-funding and that its capital intensity remains low relative to its earnings power.
Minimal Capital Intensity Preserves Cash
Capital expenditures have remained consistently low at approximately 1.5% of revenue, allowing the vast majority of operating cash flow to be available for strategic deployment.
The consistently low CapEx/Revenue ratio, averaging around 1.5%, underscores the asset-light nature of HEICO's business model, which relies on specialized engineering and regulatory expertise rather than heavy manufacturing infrastructure. This low capital intensity is a key structural advantage, as it means the company can grow its earnings and cash flow without requiring proportionate reinvestment in fixed assets.
Acquisition-Fueled Growth Strategy
The company has deployed over $1.8 billion in net cash for acquisitions over the last ten quarters, using its robust free cash flow to fund a consistent roll-up strategy.
The cash flow statement reveals a clear and consistent pattern of using free cash flow to fund bolt-on acquisitions, which is the primary engine of HEICO's long-term growth. The minimal dividends and negligible share repurchases indicate that management is prioritizing reinvestment into the business for compounding returns, a strategy that appears well-supported by the company's strong cash generation and low leverage.
Cumulative Cash Surplus Validates Model
Over the last ten quarters, cumulative operating cash flow of $2.31 billion has exceeded cumulative net income of $1.75 billion by $560 million, confirming the durability of the cash generation model.
This significant cumulative surplus of cash over reported earnings is a powerful indicator of the underlying health of the business. It suggests that the company's accounting earnings are conservative and that the core operations are generating more cash than the income statement alone would imply, providing a substantial buffer for strategic investments and weathering potential downturns.
Cash Flow Statement Obscures Acquisition Costs
The cash flow statement does not fully disclose the impact of acquisition-related costs, such as integration expenses and inventory step-up charges, which may temporarily depress reported operating cash flow.
While the cash flow statement shows strong conversion, investors should be aware that acquisition-related accounting can create noise. The amortization of intangible assets and potential inventory step-up charges from recent deals are non-cash items that affect net income but not operating cash flow, potentially making the OCF/NI ratio appear stronger than the underlying operational cash generation in quarters with significant M&A activity.