Company Reports

Heico's fiscal third-quarter results brought 23% revenue and 34% operating profit growth year over year. Excluding businesses acquired in the last year, Heico's consolidated revenue grew organically by around 14% in the period.

Heico exploits the switching costs created by aerospace original equipment manufacturers for their spare parts. OEMs build the hefty cost of research, development, and regulatory airworthiness certification of their products into the prices they charge for servicing and/or replacing them in the aftermarket. Heico reverse-engineers these complex parts at a fraction of the original development cost, gains regulatory approval to sell or install its functionally equivalent parts, and charges around 30%-40% less than the original. The Federal Aviation Administration's parts manufacturer approval is critical, as most aircraft operators can only buy OEM or PMA-certified parts to maintain their aircraft's airworthiness certification. Most operators of the newest aircraft stick with OEM parts because of long-term service contracts with engine OEMs or lease terms aimed at preserving the resale value of aircraft, generally limiting Heico to supply parts for systems in later stages of service.

Heico's fiscal second-quarter results brought 25.3% revenue and 41% operating profit growth year over year. Excluding businesses acquired in the last year, Heico's revenue grew organically by 18% in the period.

Heico exploits the switching costs created by aerospace original equipment manufacturers for their spare parts. OEMs build the hefty cost of research, development, and regulatory airworthiness certification of their products into the prices they charge for servicing and/or replacing them in the aftermarket. Heico reverse-engineers these complex parts at a fraction of the original development cost, gains regulatory approval to sell or install its functionally equivalent parts, and charges around 30%-40% less than the original. The Federal Aviation Administration's parts manufacturer approval is critical, as most aircraft operators can only buy OEM or PMA-certified parts to maintain their aircraft's airworthiness certification. Most operators of the newest aircraft stick with OEM parts because of long-term service contracts with engine OEMs or lease terms aimed at preserving the resale value of aircraft, generally limiting Heico to supply parts for systems in later stages of service.

Heico exploits the switching costs created by aerospace original equipment manufacturers for their spare parts. OEMs build the hefty cost of research, development, and regulatory airworthiness certification of their products into the prices they charge for servicing and/or replacing them in the aftermarket. Heico reverse-engineers these complex parts at a fraction of the original development cost, gains regulatory approval to sell or install its functionally equivalent parts, and charges around 30%-40% less than the original. The Federal Aviation Administration's parts manufacturer approval is critical, as most buyers can only buy OEM or PMA-certified parts to retain the airworthiness certification of their aircraft. Most operators of the newest aircraft stick with OEM parts because of long-term service contracts with engine OEMs or lease terms aimed at preserving the resale value of aircraft, generally limiting Heico to supply parts for systems in later stages of service.

Heico turned in another strong set of results, with 14.4% revenue and 15% operating profit growth year over year in its first fiscal quarter of 2026 (ended in January). An unfavorable product mix and a decline in space products sales slowed organic sales in the electronics business, reducing profit.

Heico turned in another strong set of results, with 19% revenue and 28% operating profit growth year over year in its fourth fiscal quarter (ended in October). Continued strong demand for its aerospace aftermarket parts and services drove 16% organic revenue growth in the flight support group.

Heico exploits the switching costs created by aerospace original equipment manufacturers for their spare parts. OEMs build the hefty cost of research, development, and regulatory airworthiness certification of their products into the prices they charge for servicing and/or replacing them in the aftermarket. Heico reverse-engineers these complex parts at a fraction of the original development cost, gains regulatory approval to sell or install its functionally equivalent parts, and charges around 30%-40% less than the original. The Federal Aviation Administration's parts manufacturer approval is critical, as most buyers can only buy OEM or PMA-certified parts to retain the airworthiness certification of their aircraft. Most operators of the newest aircraft stick with OEM parts because of long-term service contracts with engine OEMs or lease terms aimed at preserving the resale value of aircraft, generally limiting Heico to supply parts for systems in later stages of service.

Heico turned in another strong quarter, with impressive 16% year-over-year revenue and 22% operating profit growth in its third fiscal quarter, which ended in July. Continued strong demand for its aerospace aftermarket parts and services drove 13% organic revenue growth in the flight support group.

Heico exploits the switching costs created by aerospace original equipment manufacturers for their spare parts. OEMs build the hefty cost of research, development and regulatory airworthiness certification of their products into the prices they charge for servicing and/or replacing them in the aftermarket. Heico reverse-engineers these complex parts at a fraction of the original development cost, gains regulatory approval to sell or install its functionally equivalent parts, and charges around 30%-40% less than the original. Known in the United States as FAA parts manufacture authority, or PMA, regulatory approval is critical as most buyers can only buy OEM or PMA certified parts to retain the airworthiness certification of their aircraft. Most operators of the newest aircraft stick with OEM parts because of long-term service contracts with engine OEMs or lease terms aimed at preserving the resale value of aircraft, generally limiting Heico to supply parts for systems in later stages of service.

Heico turned in impressive 15% year-over-year revenue and 19% operating profit growth in its second fiscal quarter, which ended in April. Continued strong demand for its aerospace and defense aftermarket parts and repair services led results.

Heico exploits the switching costs created by aerospace original equipment manufacturers for their spare parts. OEMs build the hefty cost of research, development and regulatory airworthiness certification of their products into the prices they charge for servicing and/or replacing them in the aftermarket. Heico reverse-engineers these complex parts at a fraction of the original development cost, gains regulatory approval to sell or install its functionally equivalent parts, and charges around 30%-40% less than the original. Known in the United States as FAA parts manufacture authority, or PMA, regulatory approval is critical as most buyers can only buy OEM or PMA certified parts to retain the airworthiness certification of their aircraft. Most operators of the newest aircraft stick with OEM parts because of long-term service contracts with engine OEMs or lease terms aimed at preserving the resale value of aircraft, generally limiting Heico to supply parts for systems in later stages of service.

President Donald Trump imposed new tariffs on imports from US global trading partners with the stated aim of boosting domestic manufacturing. Aerospace firms are among the US' most globally integrated manufacturers and include the country's largest exporters, which complicates matters.

Heico exploits the switching costs created by aerospace original equipment manufacturers for their spare parts. OEMs typically build the hefty cost of research and development and regulatory airworthiness certification of their products into the prices they charge for servicing and/or replacing them in the aftermarket. Heico reverse-engineers these complex parts at a fraction of the original development cost, gains regulatory approval to sell or install its functionally equivalent parts, and charges around 30%-40% less than the original. Known in the United States as FAA parts manufacture authority, or PMA, regulatory approval is critical as most buyers can only buy OEM or PMA certified parts to retain the airworthiness certification of their aircraft. Most operators of newer aircraft stick with OEM parts because of long-term service contracts with engine OEMs or lease terms aimed at preserving the resale value of the aircraft, generally limiting Heico to supply parts for aircraft and systems in later stages of their service life.

Both Heico's flight services and electronic technologies segments contributed to overall sales growing 15% to exceed $1 billion while operating income rose 26% to $226.8 million resulting in 22.0% operating margin in first fiscal quarter of 2025, nearly 2 percentage points higher than a year ago.

Heico exploits the switching costs created by aerospace original equipment manufacturers for their spare parts. OEMs typically build the hefty cost of research and development and regulatory airworthiness certification of their products into the prices they charge for servicing and/or replacing them in the aftermarket. Heico reverse-engineers these complex parts at a fraction of the original development cost, gains regulatory approval to sell or install its functionally equivalent parts, and charges around 30%-40% less than the original. Known in the United States as FAA parts manufacture authority, or PMA, regulatory approval is critical as most buyers can only buy OEM or PMA certified parts to retain the airworthiness certification of their aircraft. Most operators of newer aircraft stick with OEM parts because of long-term service contracts with engine OEMs or lease terms aimed at preserving the resale value of the aircraft, generally limiting Heico to supply parts for aircraft and systems in later stages of their service life.

Heico delivered fourth-quarter and fiscal 2024 results that show ongoing strength in its aerospace aftermarket and specialized defense equipment businesses. Its $825 million operating income grew by 32% for the year and provided a 21.4% operating margin.

We assess whether trade policy between large aircraft manufacturers will likely flare up based on President-elect Donald Trump's previous administration policy and 2024 campaign positions.

Heico's third-quarter 2024 operating margins came within a hair's breadth of our overall expectations, though the flight support group segment delivered $80 million more revenue and $30 million more operating profit than we anticipated. That outperformance was more or less offset in the quarter by slower growth in the electronic technologies group. We reined in our medium-term profit growth forecast for the electronic technologies segment, which offset the time value of money and left our fair value estimate at $173. We see the shares as overvalued by the market.

Heico exploits the switching costs created by aerospace original equipment manufacturers for their spare parts. OEMs typically build the hefty cost of research and development and regulatory airworthiness certification of their products into the prices they charge for servicing and/or replacing them in the aftermarket. Heico reverse-engineers these complex parts at a fraction of the original development cost, gains regulatory approval to sell or install its functionally equivalent parts, and charges around 30%-40% less than the original. Known in the United States as FAA parts manufacture authority, or PMA, regulatory approval is critical as most buyers can only buy OEM or PMA certified parts to retain the airworthiness certification of their aircraft. Most operators of newer aircraft stick with OEM parts because of long-term service contracts with engine OEMs or lease terms aimed at preserving the resale value of the aircraft, generally limiting Heico to supply parts for aircraft and systems in later stages of their service life.