# HEICO Corporation (HEI)

> Source: Nexqual · https://nexqual.com/HEI · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, HEICO Corporation (HEI), nexqual.com/HEI" · informational, not investment advice.

**Price:** USD 300.02 (+0.57% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 298.31 · day 293.63–300.82 · 52w 256.11–376.86 · market cap $41.9B · NYQ

## Key facts
- Last four reported quarters (through Jul 31, 2026): revenue $5.18B, net income $848M (16.4% margin), free cash flow $1.03B (SEC filings).
- Valuation: P/E 49.5x (avg 62.0x at the last 3 fiscal year-ends), EV/EBITDA 32.1x, net debt $2.30B.
- 4 of 80 tracked superinvestors hold HEI (13F, Q2 2026): 0 new, 1 added, 2 reduced, 1 unchanged.
- Insider open-market sales, last ~7 months: 2 Form 4 filings, $471K; 2 not under a Rule 10b5-1 plan ($471K); 1 by opportunistic insiders (1 outside 10b5-1 plans), 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Insider open-market purchases, last ~7 months: 8 Form 4 filings, $1.4M; 7 by opportunistic insiders, 0 by routine insiders.
- Analysts: Buy (mean 2.29 on a 1–5 scale) (24 analysts), mean target USD 390.7 (range 294–491).
- Total return with dividends: 1Y -5.5% vs S&P 500 +14.9%; 5Y +114.6% vs S&P 500 +80.3%.
- Next earnings: 2026-08-25, EPS estimate USD 1.64, revenue estimate $1.43B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $1.87B | $2.21B | $2.97B | $3.86B | $4.49B | $5.18B |
| Gross profit | $727M | $863M | $1.15B | $1.50B | $1.79B | — |
| Operating income | $393M | $497M | $625M | $824M | $1.02B | $1.24B |
| Net income | $304M | $352M | $404M | $514M | $690M | $848M |
| EPS (diluted) | $2.21 | $2.55 | $2.91 | $3.67 | $4.90 | — |
| Free cash flow | $408M | $436M | $399M | $614M | $861M | $1.03B |
| Gross margin | 39.0% | 39.1% | 38.9% | 38.9% | 39.8% | — |
| Operating margin | 21.1% | 22.5% | 21.1% | 21.4% | 22.7% | 24.0% |
| Net margin | 16.3% | 15.9% | 13.6% | 13.3% | 15.4% | 16.4% |
| Revenue growth | +4.4% | +18.4% | +34.4% | +30.0% | +16.3% | — |
| Cash + short-term investments | $108M | $140M | $171M | $162M | $218M | — |
| Total debt | $235M | $290M | $2.46B | $2.23B | $2.17B | — |
Fiscal years end Oct. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jul 31, 2026)
P/E 49.5x · P/S 8.1x · EV/EBITDA 32.1x · EV/Sales 8.5x · P/FCF 40.7x · P/B 8.5x · FCF yield 2.46% · Earnings yield 2.02% · Dividend yield (paid, TTM) 0.08% · Net debt $2.30B · EV $44.2B
P/E at fiscal year-ends: Oct 2025 64.8x, Oct 2024 66.8x, Oct 2023 54.5x.

## Superinvestors (SEC 13F-HR, Q2 2026)
4 of 80 tracked investors hold HEI. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Francois Rochon | Giverny Capital | 6.38% | $190M | Reduced -0.4% |
| Wallace Weitz | Weitz Investment Management | 3.65% | $52.7M | Added +8.2% |
| Vulcan Value Partners |  | 1.21% | $39.6M | Reduced -13.9% |
| Thomas Gayner | Markel Group | 0.75% | $97.9M | Unchanged |

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 2 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-06-10 | Rowen Bradley K | Chief Accounting Officer | 1,326 | $320K | 57.4% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-04-15 | Neitzel Julie | Director | 676 | $151K | 5.3% | No | Opportunistic (traded every year 2023–2025, no repeating month) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Insider purchases (SEC Form 4, open-market, last ~7 months)
8 purchases, $1.4M. Private placements, offerings, dividend reinvestment and employee stock purchase plan buys are excluded.
| Trade date | Insider | Role | Shares | Value | Avg price | Insider type |
|---|---|---|---|---|---|---|
| 2026-10-08 | Mendelson Victor H | Co-COB and Co-CEO | 795 | $175K | 220.3 | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-10-08 | Culligan Thomas M | Director | 795 | $175K | 220.3 | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-10-08 | Hildebrandt Mark H | Director | 795 | $175K | 220.3 | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-10-08 | Neitzel Julie | Director | 592 | $175K | 294.93 | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-10-08 | Fine Carol F. | Director | 795 | $175K | 220.3 | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-10-08 | Schriesheim Alan | Director | 795 | $175K | 220.3 | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-10-08 | Henriques Adolfo | Director | 795 | $175K | 220.3 | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-10-08 | Cheruvatath Nandakumar | Director | 795 | $175K | 220.3 | Too little history (no open-market trades in 2023–2025) |

## Analysts
Consensus Buy (mean 2.29 on a 1–5 scale), 24 analysts; mean target USD 390.7 (low 294, high 491).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-19 | Morgan Stanley | Target lowered | Equal-Weight | $365 → $345 |
| 2026-10-09 | TD Cowen | Target lowered | Hold | $350 → $330 |
| 2026-09-30 | Wells Fargo | Target lowered | Equal-Weight | $350 → $335 |
| 2026-09-15 | Guggenheim | Initiated | Neutral |  |
| 2026-09-02 | Morgan Stanley | Target lowered | Equal-Weight | $370 → $365 |
| 2026-08-28 | Citigroup | Target raised | Buy | $429 → $441 |
| 2026-08-27 | Jefferies | Target raised | Buy | $425 → $430 |
| 2026-08-27 | UBS | Target raised | Neutral | $382 → $396 |
| 2026-08-19 | Deutsche Bank | Target raised | Buy | $403 → $421 |
| 2026-08-13 | Citigroup | Target raised | Buy | $410 → $429 |
| 2026-07-01 | Citigroup | Target raised | Buy | $403 → $410 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -5.5% | +114.6% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -5.5% | +16.4% |
| Volatility (annualized) | 32.0% | 26.7% |
| Max drawdown | -27.1% (Jan 2026→Apr 2026) | -25.3% (Jan 2026→Apr 2026) |

## Peers (Aerospace & Defense)
LHX (L3Harris Technologies, Inc.) USD 254.23 +2.70% · ESLT (Elbit Systems Ltd.) USD 743.22 +0.07% · HONA (Honeywell Aerospace Inc.) USD 163.02 +0.34% · AXON (Axon Enterprise, Inc.) USD 414.6 +2.98% · RKLB (Rocket Lab Corporation) USD 51.22 -4.56% · TDG (Transdigm Group Incorporated) USD 1,141.74 +1.09%

## More
Full page: https://nexqual.com/HEI · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in HEI's own 10-K filed 2025-12-22 (https://www.sec.gov/Archives/edgar/data/46619/000004661925000082/hei-20251031.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Customer | Millennium Group International Holdings Ltd (MGIH) | "Millennium offers comprehensive repair, overhaul, retrofit, and exchange services to its customers that include aircraft OEMs, fleet operators, repair businesses, and avionics brokers." |
| Partner | Boeing (BA) | "In December 2024, the Company, through a subsidiary of HFSC, entered into an exclusive license agreement and acquired certain assets to support the Boeing 777 AIMS (Airplane Information Management System) and Boeing 737N…" |
| Partner | Honeywell (HON) | "In December 2024, the Company, through a subsidiary of HFSC, entered into an exclusive license agreement and acquired certain assets to support the Boeing 777 AIMS (Airplane Information Management System) and Boeing 737N…" |

## Revenue by business segment (quarter ended 2026-07-31)

| Line | Revenue | Share | YoY | Operating income | Op. margin |
|---|---|---|---|---|---|
| Flight Support Group | $947.8M | 67.1% | +18.1% | $245.3M | 25.9% |
| Electronic Technologies Group | $483.5M | 34.2% | +35.9% | $125.6M | 26.0% |
| Total revenue | $1.41B | 100% | — | $355.2M | 25.1% |

## Revenue by product line (quarter ended 2026-07-31)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Aftermarket Replacement Parts | $556.3M | 39.4% | +14.4% |
| Electronic Components for Defense, Space and Aerospace | $392.4M | 27.8% | +35.0% |
| Repair and Overhaul Parts and Services | $248.6M | 17.6% | +23.5% |
| Specialty Products | $142.9M | 10.1% | +24.2% |
| Other Electronic Components | $91.1M | 6.4% | +39.7% |
| Total revenue | $1.41B | 100% | — |

## Revenue by region (fiscal year ended 2025-10-31)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| North America | $2.78B | 61.9% | +14.7% |
| Non Us | $1.71B | 38.1% | +18.9% |
| Total revenue | $4.49B | 100% | — |

## Company outlook (8-K filed 2026-08-25)

- "We continue to forecast strong cash flow from operations for fiscal 2026."
- "For the remainder of fiscal 2026, we expect increased net sales at both the Flight Support Group and Electronic Technologies Group to continue to be supported by underlying demand for our products and contributions from recent acquisitions."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-10-31) | $1.64 | $1.56 | +4.9% | $1.43B | 20 |
| Next quarter (ends 2027-01-31) | $1.61 | $1.57 | +2.8% | $1.38B | 10 |
| Current fiscal year (ends 2026-10-31) | $6.36 | $6.11 | +4.1% | $5.41B | 22 |
| Next fiscal year (ends 2027-10-31) | $7.23 | $6.93 | +4.3% | $6.02B | 20 |

## Options: expected move (Cboe, 15-min delayed)

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 31.0% | ±7.0% |
| 2026-12-18 | 56 | 35.4% | ±11.1% |
| 2027-01-15 | 84 | 33.8% | ±13.0% |
| 2027-02-19 | 119 | 32.3% | ±14.8% |
| 2027-05-21 | 210 | 32.5% | ±19.7% |