While the world debates AI models, HEICO is quietly raking in profits from aircraft spare parts, defense electronics, and space hardware—and it does so with a consistency that has delivered over 20% annualized returns to shareholders since 1990. In Q2 of fiscal year 2026, the company reported record net income of $233.8 million (+49% YoY), beat EPS estimates by nearly 25%, and delivered organic growth of over 18%.

The HEICO investment thesis rests on three pillars: first, the company holds structural dominance in the PMA aftermarket, where it is the only company in the world to operate the largest portfolio of FAA-approved replacement parts for aircraft engines—with a 15–40% price difference compared to OEM supplies. Second, the Electronic Technologies Group (ETG) is benefiting from a record defense spending cycle and—to a limited but tangible extent—from the AI infrastructure boom through high-reliability electronic components. Third, HEICO’s acquisition machine has transformed the…