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HEICO makes replacement parts and repairs for airplanes, plus electronic gear for aerospace and defense.
HEICO sells the unglamorous but essential stuff that keeps airplanes flying. It has two main businesses: a flight-support segment, which is the big one at roughly three-quarters of sales, and an electronic-technologies segment, which makes up the rest. The flight-support side sells replacement parts and repair services for planes — everything from engine components to avionics — mostly to airlines, repair shops, and military customers. The electronic side builds things like power supplies and radio-frequency gear for aerospace, defense, and medical equipment. The whole point is that HEICO sells the spare parts airlines need to keep planes in the air, which is a steady business because planes break and need fixing no matter what the economy does.
Here's where it gets interesting. Airlines used to be forced to buy replacement parts only from the original aircraft maker, which charged whatever it wanted. HEICO figured out how to design and certify its own versions of those parts, called PMA parts, and sell them for less. The parts meet the same safety standards but cost maybe 20% to 40% less. Airlines love that because parts and repairs are a huge chunk of their costs. Think of it as the generic-drug version of airplane parts — same effect, way cheaper, and fully legal. That cost advantage built the whole company. About half the flight-support revenue comes from aftermarket parts and repairs, and HEICO has grown by buying up small, family-run aerospace suppliers and letting them keep running themselves.
The company was founded in 1957 by William Heinzerling, an engineer who rigged up a backyard kiln to make ceramic parts. His sons Laurans and Eric Mendel took over in the 1990s and turned it into the aerospace parts machine it is today. Revenue has grown steadily, hitting around $3.8 billion in the most recent year, with profits rising faster than sales as the business scales. HEICO uses its cash to buy more small companies, pay a small dividend, and repurchase some stock. The main risks are simple: airlines could cut spending in a downturn, regulators could tighten rules on aftermarket parts, and the business depends on planes staying in service for decades. But as long as planes need fixing, HEICO gets paid.
Saved answer · last researched 15 Oct 2026