Heico Corp New — Business Overview
What does HEICO do?
HEICO is an aerospace and defense parts manufacturer built around one core idea: sell FAA-approved replacement parts cheaper than the original equipment makers. Founded in 1957 and headquartered in Hollywood, Florida, HEICO claims to be the world's largest non-OEM manufacturer of FAA-approved jet engine and aircraft component replacement parts. The business has grown from $26.2 million in net sales in fiscal 1990 to $4.49 billion in fiscal 2025, a compound annual growth rate of roughly 16%. HEICO employs approximately 11,100 people across two segments:
| Segment | What it does | Share of fiscal 2025 net sales |
|---|---|---|
| Flight Support Group (FSG) | Designs and manufactures FAA-approved replacement parts for jet engines and airframes at prices below OEM levels; also repairs, overhauls, and distributes aircraft components; supplies military parts and services | 70% |
| Electronic Technologies Group (ETG) | Designs and manufactures highly specialized electronic, microwave, and electro-optical components for aviation, defense, space, medical, and telecommunications applications | 30% |
The ETG leans heavily toward defense and government customers. Approximately 51% of the ETG's net sales in fiscal 2025 came from U.S. and foreign military agencies, prime defense contractors, and satellite or spacecraft manufacturers. Its products range from infrared missile-testing simulators and radar jammers to underwater locator beacons and nuclear radiation detectors — all niche, mission-critical components built for harsh environments.
How does HEICO make money?
HEICO's FSG earns revenue by undercutting OEM prices on parts that airlines and repair shops must buy anyway. When an airline needs a replacement jet engine part, it historically had only one legal source: the original manufacturer. HEICO obtains Parts Manufacturer Approvals (PMAs) from the FAA — regulatory certifications confirming that its parts are the functional equivalent of OEM parts — and then sells those parts at a discount. It adds approximately 400 to 550 new PMAs per year and has accumulated roughly 20,000 approved parts. The FSG also generates revenue from repair and overhaul services, distribution of third-party parts, and subcontract manufacturing for OEMs and the U.S. government.
The ETG earns revenue by selling proprietary, hard-to-replicate components into niche markets where customers cannot easily switch suppliers. Because its products are often designed into a customer's larger system (a radar platform, a satellite, a surgical device), the ETG enjoys recurring demand and limited price competition. Revenue comes from direct product sales rather than a subscription or service model. Combined R&D spending across both segments reached $120.9 million in fiscal 2025 ($43.7M FSG, $77.2M ETG), reflecting HEICO's commitment to continuously expanding its approved product catalog.
Acquisitions are a deliberate and ongoing revenue driver. Since 1990, HEICO has completed approximately 107 acquisitions, each intended to add new products, technologies, or customer relationships in adjacent niches. No single customer accounts for 10% or more of total sales, and the top five customers combined represent only about 20% of revenue, indicating a well-diversified revenue base.
What market does HEICO operate in?
The commercial aviation aftermarket — maintenance, repair, and overhaul — is HEICO's primary hunting ground. Airlines are legally required to maintain their aircraft to strict standards, which creates a steady, non-discretionary demand for replacement parts and repair services regardless of the economic cycle. As the global commercial fleet ages and air travel continues to recover and grow, demand for aftermarket parts tends to increase. The PMA parts niche that HEICO dominates is a structural cost-saving tool for airlines under perpetual pressure to reduce maintenance expenses.
The defense electronics market, which underpins the ETG, is driven by government budgets rather than commercial cycles. Demand for radar, electronic warfare, satellite components, and precision guidance systems is tied to defense spending priorities in the U.S. and allied nations. This provides a degree of counter-cyclicality relative to the commercial aviation side of the business.
Who are HEICO's main competitors?
HEICO's most significant competition in the FSG comes from the very OEMs whose parts it is replacing. The three dominant jet engine OEMs — General Electric (including CFM International), Pratt & Whitney, and Rolls Royce — have historically been the sole-source suppliers of their own engine replacement parts. HEICO competes against them on price, leaning on the fact that its PMA parts are legally interchangeable. HEICO claims to be the largest independent non-OEM supplier in this space, with no named direct PMA competitor of comparable scale.
HEICO's competitive moat in the FSG rests on regulatory barriers and accumulated credibility with the FAA. Obtaining PMAs is time-consuming and technically demanding. Companies with a strong track record with the FAA — like HEICO — reportedly receive faster approvals, making it difficult for new entrants to scale quickly. HEICO also relies on trade secret protection rather than patents for its manufacturing processes, which the company believes is a more durable form of protection. In the ETG, competition comes from a mix of large and small domestic and foreign electronics manufacturers, with competition based on design capability, technology, quality, and price in niche markets with few dominant players.
Where does HEICO operate?
HEICO is primarily a U.S.-based business, but with meaningful international presence through both employees and customers. Of its approximately 11,100 employees, roughly 900 FSG workers and 2,600 ETG workers are employed by foreign subsidiaries — about 32% of total headcount outside the U.S. The company sells to domestic and foreign commercial airlines, foreign military organizations allied with the U.S., and international repair and overhaul facilities. The filing does not break out international revenue as a percentage of total sales.
Supply chain and raw material sourcing is described as broadly available, with tariffs noted but not flagged as a material risk. HEICO purchases high-temperature alloy sheet metal, castings, forgings, electrical components, and composite materials from various vendors. The company notes that global price fluctuations and international trade regulations, including tariffs, have not had and are not currently expected to have a material impact. Products and technologies are subject to U.S. export control laws (ITAR, EAR) and OFAC sanctions, which the company says it actively manages through compliance programs.