Deep Dive – Record after record at Heico
This week we take a deeper dive into the serial acquirer Heico Corporation (New York: HEI-A). The American company, active in the aftermarket for aircraft parts, has recently posted yet another record quarter. Net profit rose to USD 177.3 million (+30%), operating profit to USD 502.1 million (+22%) and revenue to USD 1,147.6 million (+16%).
The sentiment was clearly palpable during the earnings call: management spoke with conviction and pride about the results as well as about the future. The word "record" came up remarkably often.
Heico has a strong track record under the leadership and ownership of the Mendelson family. In 1990, Laurans A. "Larry" Mendelson and his sons, Eric and Victor, took over the leadership of Heico, which at the time had a market value of around USD 25 million and focused on a single aviation product. Under their leadership, the company has grown into an international business with a market value of nearly USD 45 billion and an extensive product portfolio.
An investment of USD 100,000 in Heico in 1990, when the Mendelson family took control, had grown to a value of USD 102.5 million by October 2024. Over 35 years, the shares have delivered an average annual return of 23%.
This article was originally written in Dutch and automatically translated into English with the help of AI. In case of any difference, the Dutch original prevails.
