• Heico is like a generic drug manufacturer, but for FAA-approved aircraft parts.
• Heico is a smaller, aerospace and electronics-focused conglomerate, similar to Roper Technologies or Danaher.

• FAA-Approved Aircraft Replacement Parts: Manufactures commercial, military, and business jet aircraft replacement parts that meet Federal Aviation Administration (FAA) standards.
• Specialized Electronic Components: Designs and produces a wide range of electronic, electro-optical, and microwave products for defense, space, medical, and industrial applications.
• Aircraft Component Repair & Overhaul Services: Provides maintenance, repair, and overhaul services for various aircraft components.

Heico (HEI) primarily sells its products and services to other companies (Business-to-Business, or B2B) across various industries. While Heico's annual reports indicate that no single customer accounted for 10% or more of its consolidated net sales, its major customer base can be categorized as follows, with illustrative examples of public companies that it likely serves within these segments:

• Aerospace & Defense Prime Contractors: These companies integrate Heico's specialized electronic components, subsystems, and aerospace parts into larger platforms such as military aircraft, spacecraft, missiles, and naval systems. Examples of such public companies include:

  • Lockheed Martin (NYSE: LMT)
  • The Boeing Company (NYSE: BA)
  • RTX Corporation (NYSE: RTX) - formerly Raytheon Technologies
  • Northrop Grumman Corporation (NYSE: NOC)
  • General Dynamics Corporation (NYSE: GD)

• Commercial Airlines and Cargo Operators: Heico's Flight Support Group provides replacement parts (PMA parts) and repair and overhaul services for a wide range of commercial aircraft. This category includes numerous passenger airlines and cargo carriers globally, such as:

  • Delta Air Lines (NYSE: DAL)
  • American Airlines Group (NASDAQ: AAL)
  • United Airlines Holdings (NASDAQ: UAL)
  • Federal Express Corporation (NYSE: FDX)
  • United Parcel Service (NYSE: UPS)

• Aircraft Maintenance, Repair, and Overhaul (MRO) Facilities: These facilities are crucial intermediaries that service aircraft for various operators and often procure parts and services from suppliers like Heico. Examples of major MRO providers include:

  • Safran S.A. (EPA: SAF)
  • Lufthansa Technik (part of Deutsche Lufthansa AG, ETR: LHA)
  • ST Engineering Aerospace (part of Singapore Technologies Engineering Ltd, SGX: S63)

• Government Agencies: Primarily national defense organizations, which procure Heico's specialized electronic and electro-optical products for various defense applications, often through prime contractors. An example is the U.S. Department of Defense (no public symbol).

• Medical Equipment Manufacturers and Industrial Companies: Heico's Electronic Technologies Group supplies components and systems for advanced medical devices and a variety of industrial applications. Examples of medical device companies include:

  • Medtronic plc (NYSE: MDT)
  • Johnson & Johnson (NYSE: JNJ) (for their medical device segment)

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Laurans A. Mendelson Executive Chairman of the Board

Laurans A. Mendelson has served as Executive Chairman of the Board of HEICO Corporation since May 2025, and previously as Chairman and Chief Executive Officer (CEO) since 1990. He, along with his sons Eric and Victor, assumed management control of HEICO in 1990 when it was a small public company with a market value of about $25 million, transforming it into a major international aerospace and electronics company. Mr. Mendelson is a co-founder and has been the Managing Director of Mendelson International Corporation, a private investment company that is a shareholder of HEICO, since 1987. Before his involvement with HEICO, he worked at Arthur Andersen & Company and was engaged in the real estate industry in South Florida, becoming a significant condominium developer. He is a Certified Public Accountant.

Eric A. Mendelson Co-Chief Executive Officer and Co-Chairman of the Board

Eric A. Mendelson has served as Co-Chief Executive Officer and Co-Chairman of the Board of HEICO Corporation since May 2025, and as Co-President since October 2009. He is also the President and Chief Executive Officer of HEICO's Flight Support Group, which he founded in 1993. Mr. Mendelson joined HEICO in 1990 and played a critical role, along with his father and brother, in the company's significant growth. He is recognized internationally as the pioneer of HEICO's FAA-approved alternative aircraft parts strategy. He has overseen 51 acquisitions for the Flight Support Group.

Victor H. Mendelson Co-Chief Executive Officer and Co-Chairman of the Board

Victor H. Mendelson has served as Co-Chief Executive Officer and Co-Chairman of the Board of HEICO Corporation since May 2025, and as Co-President since October 2009. He is also the President and Chief Executive Officer of HEICO's Electronic Technologies Group, which he founded in 1996. Mr. Mendelson became associated with HEICO in 1990 after he identified the company as an investment opportunity for his family while he was a college student. He served as the company's General Counsel from 1993 until 2008. He also served as the Chief Operating Officer of HEICO's former MediTek Health Corporation subsidiary from 1995 until its profitable sale in 1996. He has overseen numerous acquisitions and two successful divestitures for the company.

Carlos L. Macau Jr. Executive Vice President, Chief Financial Officer, and Treasurer

Carlos L. Macau Jr. has served as Executive Vice President, Chief Financial Officer, and Treasurer of HEICO Corporation since June 2012. Prior to joining HEICO, Mr. Macau was an Audit Partner at Deloitte & Touche LLP from 2000 to 2012. He has over two decades of financial and accounting experience, having served various public and private manufacturing and service clients across a wide range of industries. While at Deloitte, he served as HEICO's lead client services partner for five years. Mr. Macau is a Certified Public Accountant.

Bradley K. Rowen Chief Accounting Officer and Assistant Treasurer

Bradley K. Rowen was appointed Chief Accounting Officer and Assistant Treasurer of HEICO Corporation, effective February 2025. He joined HEICO in 2011 and has held several positions within the company, including Assistant Corporate Controller and Director of Financial Reporting, before his most recent role as Senior Director of Corporate Accounting and Finance. Before joining HEICO, Mr. Rowen gained experience at PwC as an Audit and Assurance Manager. He is a Certified Public Accountant.

Heico (symbol: HEI) faces several key risks to its business, primarily stemming from the cyclical nature of its core markets, intense competition, and stringent regulatory environments.

1. Cyclical Nature of Aerospace and Defense Markets: Heico's business is heavily dependent on the commercial aerospace and defense sectors, which are inherently cyclical. Fluctuations such as significant declines in air travel, shifts in airline purchasing decisions, or reductions in U.S. and foreign defense spending can directly impact the demand for Heico's parts and services. The Electronic Technologies Group (ETG), for instance, is sensitive to the "lumpy" nature of government spending.
2. Competition and OEM Insourcing: The company faces substantial competitive pressure, including the risk of original equipment manufacturers (OEMs) insourcing parts production and the threat posed by advancements in additive manufacturing (3D printing). These factors could erode Heico's traditional aftermarket parts business model and diminish its pricing power.
3. Governmental and Regulatory Compliance: Heico operates in a highly regulated industry and is subject to various governmental and regulatory demands globally. Non-compliance with these regulations could lead to the withdrawal, suspension, or revocation of authorizations and approvals necessary for its operations. Additionally, the denial of export licenses could significantly curtail Heico's international sales, adversely affecting its business.

HEICO Corporation (NYSE: HEI) operates through two primary business segments: the Flight Support Group (FSG) and the Electronic Technologies Group (ETG).

Flight Support Group (FSG)

The Flight Support Group specializes in designing, manufacturing, repairing, overhauling, and distributing jet engine and aircraft component replacement parts, including FAA-approved aftermarket parts, for commercial and military aircraft. This segment also provides repair and overhaul services and distributes original equipment parts.

The addressable market for HEICO's Flight Support Group, specifically the global commercial aircraft aftermarket parts market, was valued at approximately USD 44.3 billion in 2024. This market is projected to reach USD 72.3 billion by 2033, growing at a compound annual growth rate (CAGR) of 5.3%. North America constitutes a significant portion of this market, holding approximately 35.4% of the global share in 2025, with the United States being a dominant country within the region.

Electronic Technologies Group (ETG)

The Electronic Technologies Group focuses on developing and manufacturing electronic, electro-optical, microwave, and infrared components and systems. These products are utilized in mission-critical applications across various industries, including aerospace, defense, space, medical devices, and telecommunications.

The addressable market for HEICO's Electronic Technologies Group, encompassing the global aerospace-defense electronics market, was valued at approximately USD 145.7 billion in 2023. This market is projected to grow to USD 258.3 billion by 2032, with a CAGR of 6.4%. North America holds a significant share in this market, driven by substantial defense budgets and a technologically advanced aerospace industry. The North American aerospace electronics market share was around 29.64% in 2023, with a valuation of USD 58.67 billion.

Here are 3-5 expected drivers of future revenue growth for Heico (symbol: HEI) over the next 2-3 years:

1. Sustained Demand in Commercial Aerospace Aftermarket: Heico's Flight Support Group (FSG) is experiencing and is expected to continue benefiting from robust demand for commercial aerospace products and services, driven by increased commercial air travel and airline fleet expansion and upgrades. This includes strong organic growth in aftermarket parts and repair and overhaul services.
2. Strategic Acquisitions: Heico has a proven track record of pursuing and successfully integrating strategic acquisitions of complementary businesses. This inorganic growth strategy significantly expands their product offerings, market reach, and capabilities within both the Flight Support and Electronic Technologies segments. Recent acquisitions like Wencor have already demonstrated significant contributions to revenue growth.
3. Expansion of Product Offerings and Market Share Gains: The company continuously invests in research and development to introduce new products and technologies across its Flight Support Group (e.g., FAA-approved replacement parts, repair services) and Electronic Technologies Group (e.g., advanced electronic components for defense, space, industrial, medical, and telecommunications). This focus on innovation and expanding product lines is leading to market share gains, particularly in the aftermarket aerospace parts sector.
4. Growth in Defense and Space Markets: Heico's Electronic Technologies Group (ETG) is positioned for continued growth by designing and manufacturing high-performance electronic components and systems for niche defense and space applications. The company has noted high single-digit organic growth in space products and firm bookings and backlogs in European and U.S. defense contracts, indicating sustained demand in these sectors.

Share Repurchases

• As of October 31, 2023, HEICO had an authorization to repurchase up to 4,886,353 shares of its common stock (Class A or Common Stock) under a program initiated in 1990.
• From August 1, 2020, to October 31, 2020, the company did not repurchase any shares under a previously announced buyback plan.

Share Issuance

• In 2023, HEICO issued $150 million in Class A common stock as part of the aggregate consideration for the acquisition of Wencor Group.

Outbound Investments

• HEICO pursues a disciplined acquisition strategy, having completed approximately 98 acquisitions since 1990.
• In 2023, HEICO made its largest acquisition to date, purchasing Wencor Group for $2.05 billion, which included $1.9 billion in cash and $150 million in Class A common stock. This acquisition expanded HEICO's engine-parts portfolio and significantly contributed to its Flight Support Group's sales growth in 2024.
• HEICO completed five acquisitions in fiscal year 2025 (which includes late calendar year 2024), including Gables Engineering, expanding capabilities in avionics, electronics, and aerospace. These acquisitions also included the Aerial Delivery and Descent Devices divisions from Capewell Aerial Systems in 2024 and 90% of Millennium International, LLC in fiscal 2025 (early calendar 2025).

Capital Expenditures

• HEICO's capital expenditures were approximately $22.94 million in fiscal year 2020, $36.18 million in fiscal year 2021, $31.98 million in fiscal year 2022, $49.43 million in fiscal year 2023, and $58.26 million in fiscal year 2024.
• The company projects capital expenditures for fiscal year 2025 to be between $65 million and $70 million.
• Capital expenditures are primarily focused on investments in new machinery, research and development, inventory positions, and facility expansion, including robotics, ERP software systems, inventory management systems, vertical storage, and new CNC milling machines.