olivLaw · US equity research
HEICO Corporation HEI
Aircraft Engines & Engine Parts · SIC 3724 · Vertical: Aircraft Engines & Engine Parts (SIC 3724)
HEICO Corporation is the world's largest maker of FAA-approved replacement parts for jet engines and aircraft components outside the original equipment manufacturers, and a leading maker of electronics for aviation, defense and space. Net sales reached a record 4485.0 million USD in fiscal 2025, and organic growth remained strong in the first nine months of fiscal 2026, pointing to sustained demand across aerospace.
At the close of 04 Nov 2026, HEICO Corporation (HEI) stock was 337.67 USD (−0.01% on the day), with market capitalisation 9.1 bn USD, P/E 56.1 on diluted EPS of 6.01 USD over the last 12 months, dividend yield 0.07%, beta 0.84, 52-week range 260.99–374.67 USD. Latest reported quarter (Q3 2026): revenue of 1.4 bn USD (+23.1% YoY), net income of 235.4 m USD (+32.8% YoY), diluted EPS 1.67 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 69.1
- strong (55–70)
- Bollinger (20, 2)
- 282.19 – 338.23
- in the upper half of the band · %B 0.99 · band width 18.1%
- SMA 50 / 200
- 311.33 / 318.90
- mixed trend
- MACD (12, 26, 9)
- 6.27 / 1.59
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +12.0% | −1.1% | +13.1 pp | — |
| 3 months | −7.9% | −0.5% | −7.5 pp | — |
| 6 months | +13.9% | +4.4% | +9.5 pp | — |
| Year to date | +4.4% | +12.3% | −8.0 pp | — |
| 1 year | +6.8% | +13.5% | −6.7 pp | +13.3% |
| 3 years | +108.4% | +76.4% | +32.0 pp | +218.2% |
| 5 years | +132.2% | +63.7% | +68.5 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 31 Jul 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.0 bn | 1.0 bn | 1.1 bn | 1.1 bn | 1.2 bn | 1.2 bn | 1.4 bn | 1.4 bn |
| Cost of revenue | 619.8 m | 624.6 m | 660.0 m | 690.4 m | 723.6 m | 723.6 m | 806.2 m | 832.1 m |
| Research & development | 28.5 m | 27.6 m | 28.7 m | 31.9 m | 32.7 m | 31.9 m | 36.4 m | 36.1 m |
| SG&A | 175.2 m | 178.9 m | 189.7 m | 192.1 m | 206.8 m | 195.1 m | 219.1 m | 225.8 m |
| Operating income | 218.6 m | 226.8 m | 248.2 m | 265.0 m | 279.0 m | 259.9 m | 350.4 m | 355.2 m |
| Depreciation & amortisation | 44.7 m | 46.2 m | 48.9 m ≈ | 49.8 m ≈ | 51.2 m | 51.0 m | 56.6 m ≈ | 58.7 m ≈ |
| Interest expense | 35.4 m | 32.5 m | 32.9 m | 31.7 m | 32.9 m | 29.5 m | 34.2 m | 35.9 m |
| Pre-tax income | 183.9 m | 195.3 m | 215.9 m | 235.0 m | 247.4 m | 231.5 m | 317.5 m | 320.6 m |
| Income tax | 33.0 m | 13.7 m | 45.4 m | 44.3 m | 44.6 m | 26.7 m | 67.2 m | 66.1 m |
| Net income | 139.7 m | 168.0 m | 156.8 m | 177.3 m | 188.3 m | 190.2 m | 233.8 m | 235.4 m |
| Diluted EPS | 0.99 ≈ | 1.20 | 1.12 | 1.26 | 1.33 ≈ | 1.35 | 1.66 | 1.67 |
| Operating cash flow | 205.6 m | 203.0 m | 204.7 m ≈ | 231.2 m ≈ | 295.3 m | 178.6 m | 292.0 m ≈ | 345.3 m ≈ |
| Capex | 16.1 m | 17.3 m | 16.0 m | 12.7 m ≈ | 26.8 m | 13.5 m | 18.1 m | 22.6 m ≈ |
| Dividends paid | 0 | 15.3 m | 0 ≈ | 16.7 m ≈ | 0 | 16.7 m | 0 ≈ | 18.2 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 45 percentile of its own 40-quarter history (min 18.9, median 58.6, max 75.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.8 bn | 2.1 bn | 1.8 bn | 1.9 bn | 2.2 bn | 3.0 bn | 3.9 bn | 4.5 bn |
| Revenue YoY | +16.6% | +15.6% | −13.1% | +4.4% | +18.4% | +34.4% | +30.0% | +16.3% |
| Net income | 259.2 m | 327.9 m | 314.0 m | 304.2 m | 351.7 m | 403.6 m | 514.1 m | 690.4 m |
| Net income YoY | +39.4% | +26.5% | −4.2% | −3.1% | +15.6% | +14.8% | +27.4% | +34.3% |
| Diluted EPS | 1.90 | 2.39 | 2.29 | 2.21 | 2.55 | 2.91 | 3.67 | 4.90 |
| Diluted EPS YoY | +38.7% | +25.8% | −4.2% | −3.5% | +15.4% | +14.1% | +26.1% | +33.5% |
| net % | 14.6% | 16.0% | 17.6% | 16.3% | 15.9% | 13.6% | 13.3% | 15.4% |
| Free cash flow | 286.6 m | 408.4 m | 386.2 m | 407.9 m | 435.9 m | 399.3 m | 614.1 m | 861.4 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Oct 2025
- Cash
- 217.8 m USD
- Financial debt
- 3.4 m USD
- Net debt
- -214.4 m USD
- Equity
- 4.4 bn USD
- Total assets
- 8.5 bn USD
- Debt / equity
- 0.00x
- Current ratio
- 2.83x
- ROE
- 17.1%
- ROA
- 8.6%
- FCF margin
- 19.2%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.8 bn | 1.9 bn | 2.2 bn | 3.0 bn | 3.9 bn | 4.5 bn | SEC (XBRL)· 22 Dec 2025verified |
| Cost of revenue | 1.1 bn | 1.1 bn | 1.3 bn | 1.8 bn | 2.4 bn | 2.7 bn | SEC (XBRL)· 22 Dec 2025verified |
| Gross profit | 682.1 m ≈ | 727.4 m ≈ | 862.8 m ≈ | 1.2 bn ≈ | 1.5 bn ≈ | 1.8 bn ≈ | SEC (XBRL)· 22 Dec 2025derived |
| Research & development | 65.6 m | 68.9 m | 76.1 m | 95.8 m | 111.3 m | 120.9 m | SEC (XBRL)· 22 Dec 2025verified |
| SG&A | 305.5 m | 334.5 m | 365.9 m | 528.1 m | 677.3 m | 767.5 m | SEC (XBRL)· 22 Dec 2025verified |
| Operating income | 376.6 m | 392.9 m | 496.8 m | 625.3 m | 824.5 m | 1.0 bn | SEC (XBRL)· 22 Dec 2025verified |
| Depreciation & amortisation | 88.6 m | 93.0 m | 96.3 m | 130.0 m | 175.3 m | 196.1 m | SEC (XBRL)· 22 Dec 2025verified |
| EBITDA | 465.2 m ≈ | 485.9 m ≈ | 593.2 m ≈ | 755.4 m ≈ | 999.8 m ≈ | 1.2 bn ≈ | SEC (XBRL)· 22 Dec 2025derived |
| Interest expense | 13.2 m | 7.3 m | 6.4 m | 3.8 m | 149.3 m | 129.9 m | SEC (XBRL)· 22 Dec 2025verified |
| Pre-tax income | 364.9 m | 387.1 m | 491.0 m | 555.3 m | 677.6 m | 893.6 m | SEC (XBRL)· 22 Dec 2025verified |
| Income tax | 29.0 m | 57.3 m | 100.4 m | 110.9 m | 118.5 m | 148.0 m | SEC (XBRL)· 22 Dec 2025verified |
| Net income | 314.0 m | 304.2 m | 351.7 m | 403.6 m | 514.1 m | 690.4 m | SEC (XBRL)· 22 Dec 2025verified |
| Diluted EPS | 2.29 | 2.21 | 2.55 | 2.91 | 3.67 | 4.90 | SEC (XBRL)· 22 Dec 2025verified |
| Weighted average diluted shares | 137.3 m | 137.9 m | 138.0 m | 138.9 m | 140.2 m | 140.8 m | SEC (XBRL)· 22 Dec 2025verified |
| Dividend per share | 0.16 | 0.17 | 0.18 | 0.20 | 0.21 | 0.23 | SEC (XBRL)· 22 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 406.9 m | 108.3 m | 139.5 m | 171.0 m | 162.1 m | 217.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Receivables | 210.4 m | 244.9 m | 294.8 m | 509.1 m | 538.5 m | 637.6 m | SEC (XBRL)· 27 Feb 2026verified |
| Inventories | 463.2 m | 478.1 m | 582.5 m | 1.0 bn | 1.2 bn | 1.3 bn | SEC (XBRL)· 22 Dec 2025verified |
| Current assets | 1.2 bn | 937.4 m | 1.2 bn | 1.9 bn | 2.1 bn | 2.4 bn | SEC (XBRL)· 22 Dec 2025verified |
| Property, plant & equipment, net | 168.8 m | 193.6 m | 225.9 m | 321.8 m | 339.0 m | 431.7 m | SEC (XBRL)· 22 Dec 2025verified |
| Goodwill | 1.4 bn | 1.5 bn | 1.7 bn | 3.3 bn | 3.4 bn | 3.7 bn | SEC (XBRL)· 22 Dec 2025verified |
| Intangibles (excl. goodwill) | 579.0 m | 582.3 m | 733.3 m | 1.4 bn | 1.3 bn | 1.5 bn | SEC (XBRL)· 22 Dec 2025verified |
| Total assets | 3.5 bn | 3.5 bn | 4.1 bn | 7.2 bn | 7.6 bn | 8.5 bn | SEC (XBRL)· 22 Dec 2025verified |
| Accounts payable | 76.2 m | 85.5 m | 116.6 m | 205.9 m | 198.4 m | 231.0 m | SEC (XBRL)· 22 Dec 2025verified |
| Short-term debt | 1.0 m | 1.5 m | 1.7 m | 17.8 m | 4.1 m | 3.4 m | SEC (XBRL)· 29 May 2026verified |
| Current liabilities | 241.2 m | 294.9 m | 420.9 m | 665.3 m | 663.9 m | 832.0 m | SEC (XBRL)· 22 Dec 2025verified |
| Total liabilities | 1.3 bn | 948.9 m | 1.1 bn | 3.6 bn | 3.5 bn | 3.7 bn | SEC (XBRL)· 22 Dec 2025verified |
| Equity | 2.0 bn | 2.3 bn | 2.6 bn | 3.2 bn | 3.7 bn | 4.4 bn | SEC (XBRL)· 22 Dec 2025verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 409.1 m | 444.1 m | 467.9 m | 448.7 m | 672.4 m | 934.3 m | SEC (XBRL)· 22 Dec 2025verified |
| Capex | 22.9 m | 36.2 m | 32.0 m | 49.4 m | 58.3 m | 72.9 m | SEC (XBRL)· 22 Dec 2025verified |
| Free cash flow | 386.2 m ≈ | 407.9 m ≈ | 435.9 m ≈ | 399.3 m ≈ | 614.1 m ≈ | 861.4 m ≈ | SEC (XBRL)· 22 Dec 2025derived |
| Investing cash flow | -199.0 m | -183.5 m | -395.8 m | -2.5 bn | -293.2 m | -731.7 m | SEC (XBRL)· 22 Dec 2025verified |
| Financing cash flow | 137.7 m | -559.0 m | -33.8 m | 2.1 bn | -389.4 m | -150.7 m | SEC (XBRL)· 22 Dec 2025verified |
| Dividends paid | 21.6 m | 23.0 m | 24.5 m | 27.4 m | 29.1 m | 32.0 m | SEC (XBRL)· 22 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 76 / 100
A scoring methodology on indicators and valuation, not investment advice.
score >= 65 · margin_of_safety >= 0.15 · agreement in ['high', 'medium']
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 9.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation64
- Returns43
- Quality85
- Balance sheet80
- Growth100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 165.42 – 1,071.63 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)705.90 – 1,071.63 (Mid 848.69)WACC 9.3% · starting FCFF 1.1 bn USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -23.7%
- Peers: EV/EBITDA738.45 – 940.06 (Mid 824.74)4 companies used · median multiple 15.0x · quartiles 13.4x – 17.1xRTX, SARO, SIF, TATT
- Peers: P/E165.42 – 182.07 (Mid 172.67)4 companies used · median multiple 28.7x · quartiles 27.5x – 30.3xRTX, SARO, SIF, TATT
- Dividend discount (DDM)outside the aggregate3.02 – 4.06 (Mid 3.47)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Attractive profile · Score 76/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 23.3% | 80 (vs peers) | 10% |
| Net margin · Quality | 16.4% | 80 (vs peers) | 6% |
| FCF conversion · Quality | 121.5% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 26.6% | 100 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | 24.3% | 100 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | -0.2x | 60 (vs peers) | 10% |
| Interest coverage · Balance sheet | 9.4x | 100 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 2.7x | 100 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 56.1x | 0 (vs peers) | 10% |
| EV/EBITDA · Valuation | 6.1x | 100 (vs peers) | 10% |
| FCF yield · Valuation | 11.3% | 100 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 0.4% | 5 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 3.4% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet80/100 · 3/3 factors with a value
- Growth100/100 · 2/2 factors with a value
- Quality85/100 · 3/3 factors with a value
- Returns43/100 · 2/2 factors with a value
- Valuation64/100 · 3/3 factors with a value
Memo
HEICO CORPORATION (HEI). Latest full fiscal year: 2025; data up to 2026-07-31.
Figures computed from the financial statements: revenue 4.5 bn USD in 2025; YoY growth 16.3%; net margin 16.4%; ROE 18.7%; net debt/EBITDA -0.2x.
The estimated value range is 705.90–940.06 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 824.74 USD, the price of 337.67 USD leaves a potential of 144.2% (value / price − 1) and a margin of safety of 59.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 76/100, methodological classification: attractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 23.3%
- Net margin: 16.4%
- FCF conversion: 121.5%
- Revenue CAGR 3Y: 26.6%
- EPS CAGR 3Y: 24.3%
- Interest coverage: 9.4x
- Current ratio: 2.7x
- EV/EBITDA: 6.1x
- FCF yield: 11.3%
- Payout ratio (FCF): 3.4%
- The price is below the estimated value range
What contradicts it
- P/E (TTM): 56.1x
- Shareholder yield (distributions): 0.4%
Versus the vertical median
Aircraft Engines & Engine Parts (SIC 3724) · same industry (4-digit SIC) · compared with 5 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| RTXRtx Corporation | 267.8 bn | 32.2 | 12.6% | 8.8% | +9.7% | +13% / +144% |
| HONHoneywell International Inc | 72.5 bn | 10.9 | 36.0% | 21.0% | +7.8% | +13% / +18% |
| HEIHeico Corporation | 9.1 bn | 56.1 | 18.7% | 16.4% | +16.3% | +7% / +108% |
| SAROStandardAero, Inc. | 8.5 bn | 26.6 | 12.3% | 5.1% | +15.8% | −2% / unavailable |
| TATTTat Technologies Ltd | 494.3 m | 27.8 | 11.7% | 9.4% | +17.0% | −1% / +293% |
| SIFSIFCO Industries, Inc. | 118.5 m | 29.6 | 10.3% | 4.0% | +6.5% | +201% / +452% |
1- and 3-year price returns: for HEI from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 1,155.81 Total return 243% · Per year 243% | 2,034.05 Total return 503% · Per year 503% | 3,051.07 Total return 804% · Per year 804% |
| 3 years | 1,370.97 Total return 307% · Per year 60% | 2,690.03 Total return 698% · Per year 100% | 4,393.55 Total return 1,203% · Per year 135% |
| 5 years | 1,626.19 Total return 384% · Per year 37% | 3,557.56 Total return 957% · Per year 60% | 6,326.71 Total return 1,778% · Per year 80% |
- Exit P/E± 672.51
- Net margin± 470.76
- Annual revenue growth± 351.09
- Annual dilution± 39.56
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
HEICO Corporation is the world's largest maker of FAA-approved replacement parts for jet engines and aircraft components outside the original equipment manufacturers, and a leading maker of electronics for aviation, defense and space. Net sales reached a record 4485.0 million USD in fiscal 2025, and organic growth remained strong in the first nine months of fiscal 2026, pointing to sustained demand across aerospace.
SWOT
Strengths
- Leading position in independent replacement parts, supported by a large portfolio of FAA approvals and a record of margin expansion.
- Diversification across commercial aviation, defense, space and industrial markets, which reduces dependence on a single cycle.
- Solid organic growth in recent quarters, with rising operating margins in both FSG and ETG.
Weaknesses
- Intangible assets and goodwill make up a very large share of total assets, which could lead to accounting losses if impairment occurs.
- Higher debt and interest costs are a source of vulnerability if financing conditions worsen.
- Reliance on a few key executives and specialized technical staff could affect continuity.
Opportunities
- Continued selective acquisitions could widen the product range and open access to new customers and regions.
- New PMA approvals and DER-approved repairs could open additional replacement parts revenue.
- Electronic products for energy and electrification uses, mentioned by the company, could become a new growth source.
Threats
- A decline in air traffic or aviation demand could reduce sales of parts and services.
- Trade policy changes, tariffs and export restrictions could raise costs or limit access to foreign customers.
- Pressure from large competitors and from airlines bringing maintenance in-house could compress margins.
Risks
- Acquisition strategymedium
The company may fail to integrate acquisitions effectively or obtain acceptable terms, which could slow growth.
- Large intangible asset basehigh
Goodwill and intangible assets make up a major part of total assets, and a significant impairment could affect results.
- International exposuremedium
Sales to foreign customers are significant, and currency swings, sanctions or trade restrictions could hurt profitability.
- Cybersecuritymedium
A security incident could disrupt production and could lead to loss of sensitive data or legal claims.
- Natural disasters in Floridalow
Headquarters and many facilities in Florida are exposed to hurricanes and other weather events, and insurance may not cover all costs.
Investment thesis
What would need to be true (bull case)
- Strong organic growth across all product lines, combined with rising operating margins, shows the company's ability to turn demand into profit.
- A leading position in independent replacement parts and FAA approvals create a technical barrier for competitors.
- Diversification across aviation, defense and space offers a more stable base than a single market cycle.
What would break the thesis
- Goodwill and intangible assets are very large relative to total assets, which makes the balance sheet sensitive to impairments.
- Rising debt and interest costs could limit financial flexibility if demand weakens.
- Growth partly depends on acquisitions, which can be hard to find at reasonable prices and carry integration risk.
What to watch
- Net sales and organic growth trends in FSG and ETGQ4 2026
- Pace and size of newly announced acquisitions2027
- Debt level and total debt to net income rationext 10-K
- Gross margin trend in the replacement parts businessQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
HEICO runs two operating segments: the Flight Support Group (FSG) and the Electronic Technologies Group (ETG). FSG accounted for 70% of net sales in fiscal 2025 1 and covers FAA-approved replacement parts, repair, overhaul and distribution of components for airlines and military operators. ETG accounted for 30% of net sales in the same year 1 and designs electronic, microwave and electro-optical equipment and high-reliability components for aviation, defense, space and medical uses. The company says it has completed approximately 107 acquisitions since 1990 1, and its growth strategy combines disciplined acquisitions with organic product development.
Market context
The company operates in commercial aerospace, defense and space, and other industrial markets. In fiscal 2025, about 58% of net sales came from commercial aviation 1, and about 31% from defense and space 1. Roughly 38% of consolidated net sales were derived from foreign customers 1, and the company markets its products to customers in about 130 countries 1.
Demand for replacement parts and maintenance services is linked to airline activity and fleet age. The available sources show sales continuing to grow in recent quarters, but longer-term developments depend on aviation cycles, which can reduce demand in downturns.
Trends
- Rising demand for replacement partstailwind
The company says increased demand for aftermarket products supported FSG sales in fiscal 2025 1. If air traffic and fleet maintenance stay high, this could continue to support organic growth.
- Defense and space demandmixed
ETG sales were supported by demand for defense, space and aerospace products 1. Defense budgets can directly affect this revenue line, so a change in government funding could affect results.
- Acquisitions as a growth drivermixed
The company states that acquisitions complemented organic growth and that it will continue to pursue them selectively 23. Acquisitions can add revenue but also add debt pressure and the risk of impairing intangible assets.
- Financing and debt costsheadwind
Interest expense rose in the first nine months of fiscal 2026 due to higher debt outstanding 2. The company issued senior notes in the third quarter 3, which could affect financing costs if market conditions change.
Competitive position
The replacement parts market is fragmented and competition is intense. The company says its main competitors include the original engine and component manufacturers, and in electronics it competes with many companies, some well capitalized 1. Smaller competitors may offer more attractive part prices due to lower labor costs 1.
- General Electric (including CFM International)GE
Original engine manufacturer cited as the historical source of substantially all replacement parts for its own engines.
- Pratt & Whitney
Original engine manufacturer competing in the replacement parts and overhaul market.
- Rolls-Royce
Original engine manufacturer named as a dominant supplier of parts for its own engines.
- Airlines with in-house maintenance units
Many airlines run their own overhaul services, creating direct competition for FSG.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- HEICO Corp. (HEI): Record Profits And Bold Bets Power Aerospace Supplier’s SurgeYahoo Finance — News · 03 Sept 2026 · EN
- Heico Q3 Earnings Call HighlightsYahoo Finance — News · 26 Aug 2026 · EN
SEC filings
- Quarterly report27 Aug 2026
- Current report25 Aug 2026Results of operations · Financial statements and exhibits
- Current report16 Jul 2026Material agreement · Creation of a direct financial obligation · Regulation FD disclosure · Other events · Financial statements and exhibits
- Current report17 Jun 2026Material agreement · Financial statements and exhibits
- Quarterly report29 May 2026
- Current report27 May 2026Results of operations · Financial statements and exhibits
- Current report17 Mar 2026Shareholder vote
- Quarterly report27 Feb 2026
- Current report25 Feb 2026Results of operations · Financial statements and exhibits
- Proxy statement30 Jan 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-10-31 · SEC / HEICO Corporation · 22 Dec 2025
- [2] Form 10-Q, quarter ended 2026-07-31 · SEC / HEICO Corporation · 27 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / HEICO Corporation · 25 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.