HEI-ANYSEAircraft Engines & Engine PartsUS GAAP · USD

Heico Corporation

HEICO Corp. makes FAA-approved replacement parts for jet engines and aircraft components, and it also designs niche electronic equipment for aviation, defense, space, medical, telecommunications, and industrial markets. The company operates through two segments, Flight Support Group and Electronic Technologies Group, combining aftermarket aerospace parts, repair/overhaul, and specialized electronics with a heavy emphasis on acquisitions and organic growth.

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Revenue4,485m USD
+16.3 %y/y
Operating profit (EBIT)1,019m USD
+23.6 %y/y
EBIT margin22.7%
+1.3 ppy/y
Net income690m USD
+34.3 %y/y
Free cash flow861m USD
+40.3 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

01,0002,0003,0004,0005,000m USD2020: 1,787 m USD2020: EBIT 377 m USD20202021: 1,866 m USD2021: EBIT 393 m USD20212022: 2,208 m USD2022: EBIT 497 m USD20222023: 2,968 m USD2023: EBIT 625 m USD20232024: 3,858 m USD2024: EBIT 824 m USD20242025: 4,485 m USD2025: EBIT 1,019 m USD20254,4851,019
RevenueOperating profit (EBIT)
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Business

Share of revenue
Flight Support Group aftermarket parts55 %

Replacement parts for jet engines and aircraft components sold into the aftermarket.

Flight Support Group repair and overhaul20 %

Repair, overhaul, and related support services for aircraft engines and components.

Electronic Technologies Group aerospace and defense electronics20 %

Electronic equipment and subsystems used in aviation, defense, and space applications.

Electronic Technologies Group industrial and medical electronics5 %

Niche electronic products for medical, telecommunications, scientific, and industrial customers.

Customers

HEICO sells to airlines, repair and overhaul facilities, aftermarket suppliers, OEMs, military users, and a range of industrial electronics customers. Demand is driven by the need for lower-cost certified replacement parts, fast turnaround repair services, and specialized electronics that are difficult to source from large OEMs. The customer base is broad and diversified, with no single customer representing 10% or more of consolidated sales in recent years.

Commercial and cargo airlines

Buy FAA-approved replacement parts and repair/overhaul services to reduce maintenance cost and downtime.

MRO and repair facilities

Buy aircraft components, repair services, and support products for third-party maintenance work.

Defense and military users

Buy specialty aircraft parts and electronic systems for defense, space, and homeland security applications.

OEMs and aftermarket suppliers

Buy components and materials where HEICO can supply certified alternatives or niche parts.

Medical, telecommunications, and industrial customers

Buy specialized electronic products where HEICO competes on design, quality, and reliability.

Strategy

HEICO's strategy is to grow both organically and through acquisitions, using its niche aftermarket position and technical capabilities to gain share from OEMs and other competitors. Management also emphasizes maintaining a strong financial position and flexibility while expanding in defense and other resilient end markets. Recent commentary highlights continued demand across both segments and a focus on integrating acquisitions to accelerate growth.

Organic growth across FSG and ETGShort term

Broad demand supports recurring growth without relying only on acquisitions.

Acquisition-led expansionMedium term

Acquisitions add product lines, customers, and technical capabilities quickly.

Market share gains in aftermarket aerospaceLong term

Certified replacement parts can displace OEM supply and improve pricing power.

Geography

HEICO markets its products and services to approximately 130 countries, and foreign customers accounted for about 38% of consolidated net sales in fiscal 2025. The business is globally distributed, with exposure to international aviation, defense, and industrial demand, while Florida-based facilities add some hurricane and storm exposure to operations. Geography matters because the company depends on cross-border sales, export approvals, and supply chains that can be affected by tariffs, trade restrictions, and geopolitical disruption.

Risks

HEICO faces exposure to aerospace cycles, defense spending, and competition from OEMs, airlines, and independent service providers. Its global footprint also creates sensitivity to export controls, tariffs, foreign exchange, supply chain disruptions, and geopolitical events, while acquisitions add integration and contingent consideration risk. The company also depends on specialized facilities and IT systems, so operational disruptions or cybersecurity incidents could affect production and customer service.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Competition from OEMs and independent service providers1International trade and regulatory restrictions2Supply chain disruption and transportation delays3Cybersecurity and IT system disruption4Acquisition integration and contingent consideration5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Competition from OEMs and independent service providersImpact: HighLikelihood: Medium

    HEICO competes on price, quality, turnaround time, and technical capability in aftermarket parts and repair.

    Exposure: Aftermarket aerospace and repair/overhaul

  2. International trade and regulatory restrictionsImpact: HighLikelihood: Medium

    The company sells into about 130 countries and is exposed to export controls, tariffs, embargoes, and foreign regulations.

    Exposure: Foreign sales and cross-border supply chain

  3. Supply chain disruption and transportation delaysImpact: MediumLikelihood: Medium

    The business depends on timely sourcing and delivery of parts and components to meet customer turnaround expectations.

    Exposure: Manufacturing and repair operations

  4. Cybersecurity and IT system disruptionImpact: MediumLikelihood: Medium

    Operational downtime could impair manufacturing, logistics, and customer service across both segments.

    Exposure: Enterprise systems and production support

  5. Acquisition integration and contingent considerationImpact: MediumLikelihood: Low

    Growth strategy relies on acquisitions, and fair value changes in contingent payments can move SG&A.

    Exposure: M&A and post-acquisition accounting

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Accounting

Judgemental items
Contingent consideration

Acquisition earn-out liabilities are remeasured using scenario-based estimates and discount rates.

Impact: Can materially change SG&A and balance sheet liabilities

Goodwill and intangible asset impairment

Annual impairment testing relies on projected revenues, earnings, and discount rates.

Impact: Could create non-cash charges if expected cash flows weaken

Noncontrolling interests

A 20% interest in HEICO Aerospace Holdings and other minority interests reduce HEICO's attributable earnings.

Impact: Affects net income attributable to HEICO versus consolidated earnings

Acquisition accounting

Recent acquisitions affect revenue growth, margins, and comparability across periods.

Impact: Can change segment mix and reported operating leverage

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Last updated: 24/09/2026