A $90,000 bag of screws reveals the brutal gap between how HEICO and TransDigm squeeze profit from the same captive market, but the company with the cleaner books and stronger moat carries a price that punishes anyone who buys it
Heico (HEI.A) is well positioned to outperform the market, as it exhibits above-average growth in financials.
HEICO, ATI and AAR have been highlighted in this Screen of The Week article.
Heico (HEI.A) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.
As it did last quarter, HEICO again handily beat estimates. But this time, instead of rallying, the stock just yawned. Organic growth remained excellent, and as one analyst said on the earnings call, the company was still "printing money." Core fundamentals that reveal longer-term trends, likewise, remain excellent. But there's a lingering question — How sustainable is the recent super-growth?
HEI highlights broad demand, record backlog and nearly $3B in revolver capacity while keeping near-term margin expectations measured.
HEICO Corporation (HEI) Q3 2026 Earnings Call Transcript
HEI posts strong Q3 results as organic growth and acquisitions drive record profit, higher sales and expanding margins.
HEICO continues to deliver record revenue, operating income, and net income, driven by robust organic growth and strategic acquisitions. HEI's business model leverages recurring aerospace aftermarket demand, niche electronics, and disciplined M&A, supporting premium margins and valuation multiples. Q2 fiscal 2026 saw 25% sales growth, 41% operating income growth, and 290 bps margin expansion, with organic growth across both segments.
HEICO, Axon and AAR have been highlighted in this Industry Outlook article.
I maintain a buy rating on HEICO Corporation as fundamentals strengthen, despite a premium valuation. FSG segment delivers 21% sales growth and margin expansion, driven by resilient global aviation aftermarket demand. ETG segment accelerates with 34% sales growth and margin gains, supported by robust aerospace and defense end markets.
HEICO Corporation (HEI) Q2 2026 Earnings Call Transcript