At a glance
Heico Corporation is worth $43.16B, about 63 times its fiscal 2025 earnings. Revenue grew 16.3% to $4.49B in fiscal 2025, with 15.4% kept as profit; over 5 years it has grown 20.2% a year. It pays a 0.08% dividend yield, raised every year for at least 9 years, and returned $135.9M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −2.2% over the past year with dividends reinvested and +17.1% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 52.4% in the 2020 crash (S&P 500: 33.7%) and 18.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 1 month after the lows.
The business in plain English
HEICO makes replacement parts and specialized electronics for aviation, defense and space. It believes it is the world's largest maker of Federal Aviation Administration (FAA)-approved jet engine and aircraft replacement parts, apart from the original equipment manufacturers (OEMs) that build engines and planes, and their subcontractors. In the fiscal year ended October 31, 2025, sales were $4.49 billion and net income was $690.4 million.
The Flight Support Group produced 69.5% of fiscal 2025 sales. Its core business is redesigning OEM parts and selling functionally equivalent versions for less than OEMs such as General Electric, Pratt & Whitney and Rolls-Royce charge. Each part first needs a Parts Manufacturer Approval (PMA) from the FAA. HEICO has about 20,000 approved parts and adds roughly 400 to 550 a year. It also repairs, overhauls and distributes parts, and supplies military aircraft parts, mainly to the US Department of Defense.
The Electronic Technologies Group made the other 30.5% by selling niche electronics such as power supplies, memory chips and antennas. About 51% of its fiscal 2025 sales came from military agencies, defense contractors and satellite makers. North America accounted for 61.9% of company sales and non-US customers for 38.1%. Acquisitions are a big part of its growth: HEICO has bought about 107 businesses since 1990.
Price history
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HEI -2.2% over the year to Oct 27, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Flight Support Group | $3.12B | 69.5% |
| Electronic Technologies Group | $1.37B | 30.5% |
By geography
| North America | $2.78B | 61.9% |
| Non-US | $1.71B | 38.1% |
Latest results
- In Q3 FY2026 (ended Jul 31, 2026), revenue was $1.41B, up 23.1% from a year earlier, and net income was $235.4M (+32.8%).
- For fiscal 2025, revenue was $4.49B (+16.3% year over year; +20.2% a year from FY2020 to FY2025) with a 15.4% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +20.2% good |
|---|---|
| Operating margin | 22.7% good |
| Free cash flow margin | 19.2% good |
| Return on equity (FY2025) | 16% good |
| Return on assets (FY2025) | 8.1% good |
| Net cash (cash minus debt) | $-2.30B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.79B | $314.0M | $386.2M |
| FY2021 | $1.87B | $304.2M | $407.9M |
| FY2022 | $2.21B | $351.7M | $435.9M |
| FY2023 | $2.97B | $403.6M | $399.3M |
| FY2024 | $3.86B | $514.1M | $614.1M |
| FY2025 | $4.49B | $690.4M | $861.4M |
Valuation snapshot
| Market value | $43.16B |
|---|---|
| P/E ratio | 63 |
| Dividend yield | 0.08% |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| HEI price data to Oct 27, 2026 | -4.5% | -2.2% | +25.3% | +17.1% | +24.7% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -4.5% |
| 2025 | +36.2% |
| 2024 | +33.0% |
| 2023 | +16.6% |
| 2022 | +6.7% |
| 2021 | +9.1% |
| 2020 | +16.2% |
| 2019 | +47.5% |
| 2018 | +28.5% |
| 2017 | +53.0% |
| 2016 | +42.3% |
| 2015 | -9.8% |
| 2014 | +5.1% |
| 2013 | +63.2% |
| 2012 | +4.0% |
| 2011 | +43.6% |
| 2010 | +44.3% |
| 2009 | +14.5% |
| 2008 | -28.6% |
| 2007 | +40.4% |
| 2006 | +50.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 58.7% over that stretch · deepest drop along the way 61.4%, back to its old high 18.6 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 48.6% over that stretch · deepest drop along the way 52.4%, back to its old high 7.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 0.3% over that stretch · deepest drop along the way 18.8%, back to its old high 1.2 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 9 open-market purchases ($2.4M) and 2 sales ($471K).
| Date | Insider | Type | Value |
|---|---|---|---|
| Mar 4, 2026 | Nandakumar Cheruvatath Director | buy | $1000K |
| Jun 10, 2026 | Bradley K Rowen Chief Accounting Officer | sell | $320K |
| Oct 8, 2026 | Victor H Mendelson Co-COB and Co-CEO, Director | buy | $175K |
| Oct 8, 2026 | Thomas M Culligan Director | buy | $175K |
| Oct 8, 2026 | Mark H Hildebrandt Director | buy | $175K |
Who owns it
Large shareholders (13G filings)
| PRINCIPAL GLOBAL INVESTORS | 8.6% | Jun 30, 2026 |
| T. Rowe Price Associates, Inc. | 5.8% | Jun 30, 2026 |
| Vanguard Capital Management | 5.61% | Mar 31, 2026 |
| Capital International Investors | 5.1% | Mar 31, 2026 |
| BlackRock, Inc. | 5.1% | Mar 31, 2025 |
| Capital World Investors | 4.5% | Mar 31, 2026 |
ETFs with the most weight in HEI
| MISL First Trust Indxx Aerospace & Defense ETF | 4.63% |
| CWS AdvisorShares Focused Equity ETF | 4.36% |
| ROKT SPDR S&P Kensho Final Frontiers ETF | 4.32% |
| PRN Invesco Dorsey Wright Industrials Momentum ETF | 4.31% |
| XAR SPDR S&P Aerospace & Defense ETF | 3.89% |
| NBDS Neuberger Berman Disrupters ETF | 3.54% |
| GCAD Gabelli Commercial Aerospace and Defense ETF | 3.32% |
| POWA Invesco Bloomberg Pricing Power ETF | 2.47% |
What could go wrong
- OEMs could squeeze its cheaper-parts model. HEICO sells cheaper alternatives to parts from General Electric, Pratt & Whitney and Rolls-Royce, rivals with greater resources. New OEM patents or designs it cannot match, or bundled service deals, could shrink that opening.
- Growth leans heavily on acquisitions. HEICO has made about 107 acquisitions since 1990. Fewer good targets, integration trouble, losing key staff, or paying with new shares that shrink existing owners' stakes could slow growth.
- Air travel slumps hit its biggest segment. The Flight Support Group, 69.5% of fiscal 2025 sales, depends largely on airlines flying. Lower travel demand, fleet changes, or aircraft retired or grounded for long periods could cut sales and make inventory worth less.
- FAA approvals could be suspended or revoked. HEICO's parts business rests on government authorizations such as FAA approvals. Failing to comply with regulations could lead authorities to withdraw, suspend or revoke them, or impose penalties and sanctions.
- Defense and space budget cuts. About 51% of Electronic Technologies Group sales came from military agencies, defense contractors and satellite makers in fiscal 2025. Lower US or foreign defense, space or homeland security spending could reduce revenue.
- Acquired intangibles could be written down. Goodwill (the premium paid for acquired companies) and other intangible assets make up a significant share of HEICO's assets. If acquired businesses underperform, writing down their value would reduce reported profits.
Recent events
- Quarterly results released
- Major agreement signed; New debt or financial obligation; Investor presentation or announcement; Other company announcement
- Major agreement signed
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Executive or board change
- Quarterly results released
For income and retirement investors
HEICO pays a dividend, but it is tiny: the yield was 0.08% as of October 27, 2026. Dividends per share rose from $0.16 in fiscal 2020 to $0.23 in fiscal 2025, about 7.5% a year, extending a streak of at least nine straight annual increases. In fiscal 2025 the company paid out just 4.6% of earnings and 3.7% of free cash flow (cash left after running the business and buying equipment). It bought back no shares in fiscal 2021–2025. So for an income investor, nearly all of the return would have to come from the share price.
The shares fell hard in past downturns: 61.4% in the 2008 financial crisis, not recovering until September 2010, and 52.4% in the 2020 COVID crash, recovering by November 2020. In 2022 they ended the market's January-to-October slide roughly flat, after an 18.8% dip. As a single company, HEICO carries more risk than a diversified fund.
Questions investors ask
How does HEICO make money?
HEICO earns most of its revenue through its Flight Support Group. That group sells FAA-approved jet engine and aircraft replacement parts for less than the original manufacturers charge, and it also repairs, overhauls and distributes parts. It produced 69.5% of the $4.49 billion in sales for the fiscal year ended October 31, 2025. The Electronic Technologies Group supplied the other 30.5%, selling specialized electronics, about half to defense and space customers. In the quarter ended July 31, 2026, total sales rose 23.1% from a year earlier to $1.41 billion.
Who are HEICO's main competitors?
HEICO's main competitors are the original equipment manufacturers, led by jet engine makers General Electric (including CFM International), Pratt & Whitney and Rolls-Royce, which historically supplied nearly all replacement parts for their engines. HEICO wins business by earning FAA Parts Manufacturer Approvals (PMAs) for functionally equivalent parts it sells for less. It has about 20,000 such parts. In repair and overhaul, it also competes with airlines' own maintenance units and independent service firms. Its electronics unit faces many niche rivals, some well funded.
Does HEICO raise its dividend every year?
Yes, as far as its SEC filings show. Dividends per share have risen at least nine years in a row through fiscal 2025, and the streak may be longer. They grew from $0.16 in fiscal 2020 to $0.23 in fiscal 2025, about 7.5% a year. But the dividend is tiny. The yield was 0.08% as of October 27, 2026, and dividends took just 4.6% of fiscal 2025 earnings. HEICO bought back no shares in fiscal 2021–2025.
How much debt does HEICO have?
As of July 31, 2026, HEICO had about $2.54 billion of total debt and $241 million in cash and investments, which leaves net debt of about $2.30 billion. That compares with shareholders' equity of about $4.95 billion and total assets of $9.94 billion. On July 16, 2026, HEICO filed a report disclosing a major agreement and a new debt obligation. Debt adds interest costs, and those weigh more heavily when sales fall in a downturn.
How has HEICO stock performed over the long term?
Strongly over long periods, with sharp swings along the way. As of October 27, 2026, the share price had risen about 24.7% a year over 10 years (809% in total) and 17.1% a year over five years. The 12 months to that date were weaker, with the price down 2.2%. Its worst fall was 61.4%, in the 2008 financial crisis. The stock traded at about 63 times fiscal 2025 earnings (its price-to-earnings ratio). A valuation that high leaves less room for disappointment if growth slows.