Deep Dive - Record After Record at Heico
This week, we delve deeper into the serial acquirer Heico Corporation (New York: HEI-A). The American company, active in the aftermarket for aircraft parts, has recently posted 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 in the earnings call: management spoke with conviction and pride about the results and about the future. The word record was mentioned 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 then had a market value of approximately USD 25 million and focused on a single aviation product. Under their leadership, the company has grown into an international enterprise 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 risen to a value of USD 102.5 million by October 2024. In 35 years, the shares have achieved an average return of 23% per year.
