Short answer
Heico Corp (HEI) filed its fiscal 2018 10-K annual report with the SEC on Dec 20, 2018. It reported revenue of $1.8B (+16.6% year over year) and net income of $259M.
- Top risk flagged: FAA certification and approvals: revocation or suspension could halt aircraft-parts manufacturing, repair and overhaul operations
FY2018 key financial metrics · XBRL
- Revenue
- $1.8B
- +16.6% YoY
- Net income
- $259M
- +39.4% YoY
- Operating margin
- 21.2%
- +1.1 pp YoY
- Gross margin
- 10.5%
- −0.0 pp YoY
- EPS (diluted)
- $1.90
- −11.2% YoY
- ROE
- 18.5%
- +2.5 pp YoY
- Operating cash flow
- $328M
- +19.5% YoY
Source: XBRL data from the Heico Corp (HEI) FY2018 10-K on SEC EDGAR. USD.
Heico Corp FY2018 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core model: niche aerospace replacement parts, repair services and mission-critical electronics sold below OEM pricing
- 2018 emphasis: active antenna systems and self-sealing auxiliary fuel systems, including businesses acquired during fiscal 2018
- Strategic positioning: continued PMA-driven penetration of OEM replacement markets, with approximately 300 to 500 new parts annually
- R&D investment: $57.5 million in 2018, comprising $21.3 million in Flight Support and $36.2 million in Electronic Technologies
- Backlog expansion: $783 million versus $654 million, with Electronic Technologies rising to $472 million and Flight Support to $311 million
Management Discussion & Analysis
- Revenue $1,777.7M, up 17% YoY from $1,524.8M, led by ETG up 22% to $701.8M
- Operating margin 21.2% vs 20.1%, net income $259.2M vs $186.0M
- Best segment ETG: operating income $204.5M, margin 29.1% vs 27.4%
- Worst segment FSG: operating margin 18.8% vs 18.5%, despite sales reaching $1,097.9M
- Operating cash flow $328.5M, acquisitions $59.8M, fiscal 2019 capex target approximately $48M
- Fiscal 2019 outlook: higher sales and net income, with risks from commercial aviation demand and defense spending cuts
Risk Factors
- FAA certification and approvals: revocation or suspension could halt aircraft-parts manufacturing, repair and overhaul operations
- Foreign-customer exposure: 37% of fiscal 2018 consolidated net sales generated internationally across approximately 115 countries
- Supplier vulnerability: long-lead components and raw materials may require costly customer or regulatory recertification after supplier changes
- OEM competition: jet-engine and aircraft-component manufacturers could bundle products and services or reduce prices
- Intangible-asset concentration: goodwill and intangibles represented approximately 61% of total assets as of October 31, 2018
Generated from the filing text; verify against the original. How to read a 10-K
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