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what it is
HEICO sells aerospace, defense, and electronics gear through two segments and 11,100 employees.
how it gets paid
Last year Heico made $4.5B in revenue. jet engine replacement parts was the main engine at $1.44B, or 32% of sales.
why it's growing
Revenue grew 16.3% last year. Revenue rose 14% vs. prior year, and Flight Support sales were $820.0M, up 15%.
what just happened
HEICO posted $1.35 in earnings per share, above the $1.29 estimate, on $1.2B of sales.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
80/100 earnings predictability — you can trust these numbers
67.9x trailing p/e — you're paying up for this one
0.1% dividend yield — cash in your pocket every quarter
12.0% return on capital — nothing to write home about
xvary composite: 83/100 — above average
What they do
HEICO sells aerospace, defense, and electronics gear through two segments and 11,100 employees.
HEICO gets 70% of sales from Flight Support and 30% from Electronic Technologies. That split means your money rides on replacement parts and niche electronics, not one jet order. The business posts a 12.0% return on capital, which means it makes 12 cents of operating profit for every dollar it uses.
How they make money
$4.5B
annual revenue · their business grew +16.3% last year
jet engine replacement parts
$1.44B
+15.0%
aircraft component replacement parts
$1.16B
+15.0%
microwave products
$0.90B
+16.3%
electro-optical products
$1.00B
+16.3%
The products that matter
aftermarket aircraft parts and repair
flight support group
$3.1B · roughly 70% of revenue
this is the business you are really underwriting. sales rose 18% last year to a record $3.1B. if HEI keeps earning a premium, this segment is why.
core earnings engine
aerospace and defense electronics
electronic technologies
~$1.4B · roughly 30% of revenue
the smaller segment still matters because it gives HEI more than one demand stream. in plain English: you are not relying only on airline traffic to make the whole story work.
end-market diversification
certified replacement parts portfolio
faa-approved parts
27.5% operating margin
the metal is ordinary. the approval is not. when replacement parts support a 27.5% operating margin, the quiet part is that certification is doing the pricing work.
certification moat
Key numbers
29.0%
op margin
You keep 29 cents of every sales dollar before interest and taxes. Most industrial names do not.
$411
vl target
sees 24% upside from $332.52. That is the market's own math, not a hype pitch.
14.5%
earnings growth
Projected earnings growth is faster than the past 12.0% pace. That keeps the compounding story alive.
$2.2B
long-term debt
Debt is 4% of capital. That gives the company room if the cycle coughs.
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 2 — safer than 80% of stocks
- price stability 80 / 100
- long-term debt $2.2B (4% of capital)
- net profit margin 17.3% — keeps 17 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
A+ with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in HEI 3 years ago → it's now worth $19,140.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
HEICO posted $1.35 in earnings per share, above the $1.29 estimate, on $1.2B of sales.
Revenue rose 14% vs. prior year, and Flight Support sales were $820.0M, up 15%. The beat was 4.65%, which is small on paper and enough to matter in a 67.9x stock.
$1.2B
revenue
$1.35
earnings per share
4.65%
beat
beat size
The 4.65% beat matters because it supports the idea that 15% segment growth is still feeding the whole company.
-
heico appears poised for double-digit earnings growth in fiscal 2026 (year ends october 31st).robust commercial aerospace demand, along with acquisition-related contributions, should remain highly supportive of comparisons in the coming quarters.
-
we are currently targeting full-year earnings to reach $5.50 a share, representing 12% improvement versus fiscal 2025’s record-setting performance.subscribers should note that heico was slated to report its january-period results just as this issue was going to press.
-
flight support group should continue to do much of the heavy lifting.
-
this is heico’s bread-and-butter business and currently accounts for roughly 70% of the company’s top line.it is primarily focused on the design, manufacture, and repair of jet engine and aircraft component replacement parts, and is widely considered to be among the leaders in the aerospace aftermarket segment.
-
in fiscal 2025, flight support group sales increased 18% from a year ago, to a record high of $3.1 billion.
source: company earnings report, 2026
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What could go wrong
the risk is not that HEI sells bad parts. the risk is that the part of the business investors pay up for — approved aftermarket parts inside flight support — hits friction at the same time margins are already softer. with the stock at 67.9x trailing earnings, even small operational dents can become valuation dents.
med
approval cadence slows
HEI's moat comes from approved replacement parts getting to market. if certification timelines stretch, the moat still exists, but growth arrives later and the premium story loses some speed.
flight support is roughly 70% of revenue, so the biggest business feels that slowdown first.
med
margin slippage stops looking temporary
q1 still delivered record $1.2B revenue and record $190M net income, but operating margin slipped because of mix and acquisitions. if that repeats, the market starts rethinking how premium this business really is.
a 16.0% net margin paired with a 67.9x trailing p/e does not leave much room for repeated compression.
med
growth cools before the valuation does
the current setup assumes strong commercial aerospace demand, acquisition help, and a path to about $5B in revenue with $5.50 in eps. if growth cools first, the multiple becomes the story.
this stock is not priced for a pause. it is priced for another clean year.
between flight support's roughly 70% revenue share and the stock's 67.9x trailing multiple, your real risk is not a collapse. it is a good business producing numbers that are merely good.
source: institutional data · regulatory filings · risk analysis
Pay attention to
valuation
whether eps keeps pace with the stock
$5.50 in fiscal 2026 eps implies about 60.5x forward earnings at today's price. if estimates slip and the share price does not, your downside math gets worse fast.
business mix
flight support staying near 70% of revenue
the record $3.1B flight support business still does most of the work. if growth shifts away from that segment, the moat story gets weaker.
next quarter
whether margins recover after q1
q1 delivered record revenue and record net income, but operating margin still fell. the next print needs to show that was temporary, not the new baseline.
regulatory
approval cadence for new replacement parts
faa approvals are both the moat and the bottleneck. if that approval machine slows, HEI's best business slows with it.
Analyst rankings
short-term outlook
top 20%
outlook rank 2 — in human-speak, analysts still expect HEI to outperform most stocks over the next year.
risk profile
above average
risk rank 2 — the balance sheet and stability profile look better than roughly 80% of stocks.
chart momentum
top 20%
momentum rank 2 — the market has been rewarding the story, not arguing with it.
earnings predictability
80 / 100
management tends to deliver steady numbers. that consistency helps explain why investors tolerate the premium valuation.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 323 buyers vs. 292 sellers in 3q2025. total institutional holdings: 39.1M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$269
$552
$333
current price
$411
target midpoint · +24% from current · 3-5yr high: $450 (+35% · 8% ann'l return)
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