HEICO CORP (HEI)

HEICO Corporation, through its subsidiaries, believes it is the world's largest manufacturer of FAA-approved jet engine and aircraft component replacement parts other than the original equipment manufacturers and their subcontractors, and also a leading manufacturer of electronic equipment for the aviation, defense, space, medical, telecommunications and electronics industries. The company operates through two segments. The Flight Support Group (60% of fiscal 2023 net sales) uses proprietary technology to design and manufacture FAA-approved Parts Manufacturer Approval (PMA) replacement parts, sold at lower prices than OEM equivalents, with roughly 19,500 PMA parts developed and 350 to 550 new PMAs added per year.

It also repairs, overhauls and distributes jet engine and aircraft components, avionics and instruments for commercial air carriers, repair companies, and military and business aircraft operators. In addition, it supplies, distributes and integrates military aircraft parts and support services, primarily to the U.S. Department of Defense, defense prime contractors and allied foreign militaries. It manufactures specialty parts as a subcontractor, advanced niche components and composite assemblies, thermal insulation blankets and systems, and expanded foil mesh for lightning strike protection.

It also distributes aviation electrical interconnect and electromechanical parts, overhauls industrial pumps, motors and hydraulic units for the U.S. Navy, and performs tight-tolerance machining, brazing, fabricating and welding. The Electronic Technologies Group (40% of net sales, with about 49% of its sales to military agencies, defense primes and satellite and spacecraft manufacturers) designs and manufactures highly engineered, mission-critical electronic, data, microwave and electro-optical subcomponents for harsh environments. Its products include infrared simulation and test equipment, laser rangefinder receivers and photodetectors, power supplies and emergency back-up power, flight deck annunciators, wireless cabin control and power distribution systems, fuel level sensing, microwave products for satellites and electronic warfare, EMI/RFI shielding and filters, high-speed interface products, high voltage interconnection devices and energy generators, power conversion products, underwater and emergency locator beacons, traveling wave tube amplifiers and microwave power modules, three-dimensional and stacked memory and specialty semiconductors, harsh environment connectors and cable assemblies, RF and microwave assemblies, communications and electronic intercept receivers, and crashworthy auxiliary fuel systems.

Customers span defense, aerospace, medical, telecommunications, industrial and energy markets. HEICO has operated in the aerospace industry for over 65 years and grew net sales from $26.2 million in fiscal 1990 to $2,968.1 million in fiscal 2023, with net income of $403.6 million, through organic growth, increased research and development spending and approximately 98 acquisitions of niche businesses.