HEI

HEICO is a textbook quality compounder. Revenue has more than doubled in four years ($1.87B FY2021 → $4.49B FY2025) and net income has grown even faster ($304M → $690M), with FY2025 alone delivering +16.3% revenue, +23.6% operating income, +34.3% net income and +33.5% diluted EPS. Earnings are outpacing the top line, which signals genuine operating leverage and margin expansion, not just bolt-on revenue. Operating cash flow of $934M (+39%) dwarfs the modest $72.9M capex, so this growth is self-funding and cash-generative. The two-segment model — FSG (FAA-approved jet-engine/aircraft replacement parts, repair/overhaul, plus a leading military-parts supplier to the DoD) and ETG (defense/aerospace electronics) — gives diversified exposure across commercial-aftermarket and defense demand, and the MD&A confirms fiscal 2025 was further boosted by recent acquisitions, HEICO's proven serial-acquirer engine.

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