About HEICO

HEICO Corporation, through its subsidiaries (HEICO), designs, manufactures and sells aerospace, defense and electronic related products and services throughout the United States (U.S.) and internationally. The company's customer base is primarily the aviation, defense, space, medical, telecommunications and electronics industries. The company manufactures Federal Aviation Administration (FAA)-approved jet engine and aircraft component replacement parts, other than the original equipment manufacturers (OEMs) and their subcontractors. Segments The company's business consists of two segments, Flight Support Group and Electronic Technologies Group. The Flight Support Group Flight Support Group (FSG), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their collective subsidiaries, accounted for 60% of the company's net sales in fiscal 2023. The FSG uses proprietary technology to design and manufacture jet engine and aircraft component replacement parts for sale at lower prices than those manufactured by OEMs. These parts are approved by the FAA and are the functional equivalent of parts sold by OEMs. In addition, the FSG repairs, overhauls and distributes jet engine and aircraft components, avionics and instruments for domestic and foreign commercial air carriers and aircraft repair companies, as well as military and business aircraft operators. The FSG also manufactures and sells specialty parts as a subcontractor for aerospace and industrial original equipment manufacturers and the United States (U.S.) government. Additionally, the FSG is a leading supplier, distributor, and integrator of military aircraft parts and support services primarily to the U.S. Department of Defense, defense prime contractors, and foreign military organizations allied with the U.S. Further, the FSG is a leading manufacturer of advanced niche components and complex composite assemblies for commercial aviation, defense, and space applications. The FSG also engineers, designs and manufactures thermal insulation blankets and parts, as well as removable/reusable insulation systems for aerospace, defense, commercial and industrial applications; manufactures expanded foil mesh for lightning strike protection in fixed and rotary wing aircraft; distributes aviation electrical interconnect products and electromechanical parts; overhauls industrial pumps, motors, and other hydraulic units with a focus on the support of legacy systems for the U.S. Navy; and performs tight-tolerance machining, brazing, fabricating, and welding services for aerospace, defense and other industrial applications. The Electronic Technologies Group Electronic Technologies Group (ETG), consisting of HEICO Electronic Technologies Corp. and its subsidiaries, accounted for 40% of the company's net sales in fiscal 2023. The ETG derived approximately 49% of its net sales in fiscal 2023, from the sale of products and services to the U.S. and foreign military agencies, prime defense contractors and both commercial and defense satellite and spacecraft manufacturers. The ETG collectively designs, manufactures and sells various types of electronic, data and microwave, and electro-optical products, including infrared simulation and test equipment, laser rangefinder receivers, electrical power supplies, back-up power supplies, power conversion products, underwater locator beacons, emergency locator transmission beacons, flight deck annunciators, panels, and indicators, electromagnetic and radio frequency interference shielding and filters, high power capacitor charging power supplies, amplifiers, traveling wave tube amplifiers, photodetectors, amplifier modules, microwave power modules, flash lamp drivers, laser diode drivers, arc lamp power supplies, custom power supply designs, cable assemblies, high voltage power supplies, high voltage interconnection devices and wire, high voltage energy generators, high frequency power delivery systems; memory products, including three-dimensional microelectronic and stacked memory, static random-access memory (SRAM), and electronically erasable programmable read-only memory (EEPROM); harsh environment electronic connectors and other interconnect products, radio frequency (RF) and microwave amplifiers, transmitters, and receivers and integrated assemblies, sub-assemblies and components; RF sources, detectors and controllers, wireless cabin control systems, solid state power distribution and management systems, crashworthy and ballistically self-sealing auxiliary fuel systems, nuclear radiation detectors, communications and electronic intercept receivers and tuners, fuel level sensing systems, high-speed interface products that link devices, high performance active antenna systems and airborne antennas for commercial and military aircraft, precision guided munitions, other defense applications and commercial uses; silicone material for a variety of demanding applications; precision power analog monolithic, hybrid and open frame components; high-reliability ceramic-to-metal feedthroughs and connectors, technical surveillance countermeasures (TSCM) equipment to detect devices used for espionage and information theft; rugged small-form factor embedded computing solutions; custom high power filters and filter assemblies; test sockets and adapters for both engineering and production use of semiconductor devices; radiation assurance services and products; and high reliability (Hi-Rel), complex, passive electronic components and rotary joint assemblies for aerospace and defense applications, in addition to other high-end applications, such as medical and energy uses, including emerging clean energy and electrification applications. Disciplined Acquisition Strategy Acquisitions have been an important element of the company's growth strategy over the past thirty-one years, supplementing its organic growth. The company typically targets acquisition opportunities that allow it to broaden its product offerings, services and technologies while expanding its customer base and geographic presence. Flight Support Group The Flight Support Group serves a broad spectrum of the aviation industry, including commercial airlines and air cargo carriers; repair and overhaul facilities; OEMs; and the U.S. and foreign governments. The FSG competes with the leading industry OEMs and, to a lesser extent, with a number of smaller, independent parts distributors. Historically, the three principal jet engine OEMs, General Electric (including CFM International), Pratt & Whitney and Rolls Royce, have been the sole source of substantially all jet engine replacement parts for their jet engines. The company is adding new products to its line at a rate of approximately 350 to 550 Parts Manufacturer Approvals (PMA or PMAs) per year. The company has developed for its customers approximately 19,500 parts for which PMAs have been received from the FAA. Jet engine and aircraft component replacement parts can be categorized by their ongoing ability to be repaired and returned to service. Jet engine and aircraft component replacement parts are classified within the industry as factory-new; new surplus; overhauled; repairable; and as removed. Factory-New Jet Engine and Aircraft Component Replacement Parts: The FSG engages in the research and development, design, manufacture, and sale of FAA-approved replacement parts that are sold to domestic and foreign commercial air carriers and aircraft repair and overhaul companies. A key element of the company's growth strategy is the continued design and development of an increasing number of PMA replacement parts in order to further penetrate its existing customer base and obtain new customers. The company selects the jet engine and aircraft component replacement parts to design and manufacture through a selection process which analyzes industry information to determine which replacement parts are suitable candidates. Repair and Overhaul Services: The FSG provides repair and overhaul services on selected jet engine and aircraft component parts, as well as on avionics, instruments, composites and flight surfaces of commercial aircraft operated by domestic and foreign commercial airlines. The FSG also provides repair and overhaul services including avionics and navigation systems, as well as subcomponents and other instruments utilized on military aircraft operated by the U.S. government and foreign military agencies and for aircraft repair and overhaul companies. The company's repair and overhaul operations require a high level of expertise, advanced technology and sophisticated equipment. Services include the repair, refurbishment and overhaul of numerous accessories and parts mounted on gas turbine engines and airframes. Components overhauled include fuel pumps, generators, fuel controls, pneumatic valves, starters and actuators, turbo compressors and constant speed drives, hydraulic pumps, valves and actuators, wheels and brakes, composite flight controls, electro-mechanical equipment, auxiliary power unit accessories and thrust reverse actuation systems. Some of the repair and overhaul services provided by the FSG are proprietary repairs approved by an FAA-qualified designated engineering representative (DER) and/or by the owner/operator. The FSG also provides commercial airlines, regional operators, asset management companies and Maintenance, Repair and Overhaul (MRO) providers with high quality niche accessory component exchange services as an alternative to OEMs' spares services. Distribution: The FSG distributes FAA-approved parts, including hydraulic, pneumatic, structural, interconnect, mechanical and electro-mechanical components for the commercial, regional and general aviation markets. The FSG also is a leading supplier, distributor, and integrator of military aircraft parts and support services primarily to the U.S. Department of Defense, defense prime contractors, and foreign military organizations allied with the U.S. Further, the FSG is a leading provider of products and services necessary to maintain up-to-date F-16 fighter aircraft operational capabilities. Manufacture of Specialty Aircraft/Defense Related Parts and Subcontracting for OEMs: The FSG engineers, designs and manufactures thermal insulation blankets and parts, as well as renewable/reusable insulation systems primarily for aerospace, defense, commercial and industrial applications. The FSG also manufactures specialty components and assemblies for sale as a subcontractor for aerospace and industrial original equipment manufacturers and the U.S. government. Additionally, the FSG manufactures advanced niche components and complex composite assemblies for commercial aviation, defense and space applications, manufactures expanded foil mesh, which is integrated into composite aerospace structures for lightning strike protection in fixed and rotary wing aircraft and performs tight-tolerance machining, brazing, fabricating and welding for aerospace, defense and other industrial applications. Electronic Technologies Group The company's Electronic Technologies Group's strategy is to design and manufacture highly-engineered, mission-critical subcomponents that must successfully operate in the harshest environments, for smaller, niche markets, but which are utilized in larger systems - systems like power, targeting, tracking, identification, simulation, testing, communications, lighting, surgical, medical imaging, baggage scanning, telecom and computer systems. These systems are, in turn, often located on another platform, such as aircraft, rotorcraft, satellites, ships, spacecraft, land vehicles, handheld devices and other platforms. Electro-Optical Infrared Simulation and Test Equipment: The ETG is a designer and manufacturer of niche state-of-the-art simulation, testing and calibration equipment used in the development of missile seeking technology, airborne targeting and reconnaissance systems, shipboard targeting and reconnaissance systems, space-based sensors, as well as ground vehicle-based systems. These products include infrared scene projector equipment, such as its MIRAGE IR Scene Simulator, high precision blackbody sources, software, and integrated calibration systems. Simulation equipment allows the U.S. government and allied foreign military to save money on missile testing as it allows infrared-based missiles to be tested on a multi-axis, rotating table instead of requiring the launch of a complete missile. In addition, several large military prime contractors have elected to purchase such equipment from the company instead of maintaining internal staff to do so because it can offer a more cost-effective solution. The company's customers include major the U.S. Department of Defense weapons laboratories and defense prime contractors. Electro-Optical Laser Products: The ETG is a designer and maker of laser rangefinder receivers and other photodetectors used in airborne, vehicular and handheld targeting systems manufactured by major prime military contractors. Most of the company's rangefinder receiver product offering consists of complex and patented products, which detect reflected light from laser targeting systems and allow the systems to confirm target accuracy and calculate target distances prior to discharging a weapon system. Some of these products are also used in laser eye surgery systems for tracking ocular movement. Electro-Optical, Microwave and Other Power Equipment: The ETG produces power supplies, amplifiers and flash lamp drivers used in laser systems for military, medical and other applications that are sometimes utilized with the company's rangefinder receivers. The company also produces emergency back-up power supplies and batteries used on commercial aircraft and business jets for services, such as emergency exit lighting, emergency fuel shut-off, power door assists, cockpit voice recorders and flight computers. Additionally, the company designs, manufactures and repairs flight deck annunciators, panels and indicators. The company designs and manufactures next generation wireless cabin control systems, solid state power distribution and management systems and fuel level sensing systems for business jets and for general aviation, as well as for the military/defense market. The company offers custom or standard designs that solve challenging OEM requirements and meet stringent safety and emissions requirements. The company's power electronics products include capacitor charger power supplies, laser diode drivers, arc lamp power supplies and custom power supply designs. The company's microwave products are used in both commercial and military satellites, spacecraft and in electronic warfare systems. These products, which include isolators, bias tees, circulators, latching ferrite switches and waveguide adapters, are used in satellites and spacecraft to control or direct energy according to operator needs. Additionally, the company's microwave products include custom high power filters and filter assemblies, converters, receivers, transmitters, amplifiers, frequency sources and related sub-systems that address the majority of major satellite frequencies. The company is a leading supplier of the niche products which it designs and manufactures for this market, a market that includes commercial satellites. The company's customers for these products include satellite and spacecraft manufacturers. Electromagnetic Interference (EMI) and Radio-Frequency Interference (RFI) Shielding and Suppression Filters: The ETG designs and manufactures shielding used to prevent electromagnetic energy and radio frequencies from interfering with other devices, such as computers, telecommunication devices, avionics, weapons systems and other electronic equipment. The ETG designs and manufactures EMI/RFI and transient protection solutions for a wide variety of connectors that principally serve customers within the aerospace and defense markets. The company's products include a patented line of shielding applied directly to circuit boards and a line of gasket-type shielding applied to computers and other electronic equipment. The company's customers consist essentially of medical, electronics, telecommunications, and defense equipment producers. High-Speed Interface Products: The ETG designs and manufactures advanced high-technology, high-speed interface products utilized in homeland security, defense, medical research, astronomical and other applications across numerous industries. High Voltage Interconnection Devices: The ETG designs and manufactures high and very high voltage interconnection devices, cable assemblies and wire for the medical equipment, defense and other industrial markets. Among others, the company's products are utilized in aircraft missile defense, fighter pilot helmet displays, avionics systems, medical applications, wireless communications, and industrial applications including high voltage test equipment and underwater monitoring systems. High Voltage Advanced Power Electronics: The ETG designs and manufactures a patented line of high voltage energy generators for medical, baggage inspection and industrial imaging systems. The company also produces high voltage power supplies found in satellite communications, CT scanners and in medical and industrial x-ray systems. Power Conversion Products: The ETG designs and provides innovative power conversion products principally serving the high-reliability military, space and commercial avionics end-markets. These high density, low profile and lightweight DC-to-DC converters and electromagnetic interference filters, which include thick film hermetically sealed hybrids, military commercial-off-the-shelf and custom designed and assembled products, have become the primary specified components of their kind on a generation of complex military, space and avionics equipment. Underwater Locator Beacons and Emergency Locator Transmission Beacons: The ETG designs and manufactures Underwater Locator Beacons (ULBs) used to locate aircraft Cockpit Voice Recorders and Flight Data Recorders, marine ship Voyage Recorders and various other devices, which have been submerged under water. ULBs are required equipment on all U.S. FAA and European Aviation Safety Agency (EASA) approved Flight Data and Cockpit Voice Recorders used in aircraft and on similar systems utilized on large marine shipping vessels. The ETG also designs and manufactures Emergency Locator Transmission Beacons for the commercial aviation and defense markets. Upon activation, these safety-critical devices transmit a distress signal to alert search and rescue operations of the aircraft's location. Traveling Wave Tube Amplifiers (TWTAs) and Microwave Power Modules (MPMs): The ETG designs and manufactures TWTAs and MPMs predominately used in radar, electronic warfare, on-board jamming and countermeasure systems in aircraft, ships and detection platforms deployed by the U.S. and allied non-U.S. military forces. Memory Products and Specialty Semiconductors: The ETG designs, manufactures and markets three-dimensional microelectronic and stacked memory products, including memories, Point of Load (POL) voltage converters and peripherals, industrial memories, and complex System-in-Package (SiP) solutions. The products' patented designs provide high reliability memory and circuitry in a unique and stacked form, which saves space and weight. These products are principally integrated into larger subsystems equipping satellites and spacecraft and are also utilized in medical equipment. Additionally, the ETG designs and manufactures specialty semiconductors and offers a well-developed line of processors, as well as static random-access memory (SRAM) and electronically erasable programmable read-only memory (EEPROM) products utilized on a diverse array of military, space, and medical platforms. Harsh Environment Connectivity Products and Custom Molded Cable Assemblies: The ETG designs and manufactures high performance, high reliability and harsh environment electronic connectors and other interconnect products. These products include connectors, jacks and plugs, cables, patch panels and switches utilized in aviation, broadcast/audio, defense, industrial, medical and other equipment. RF and Microwave Products: The ETG designs and manufactures RF and microwave amplifiers, transmitters and receivers to support military communications on unmanned aerial systems, other aircraft, helicopters and ground-based data/communications systems. The ETG designs and manufactures state-of-the-art RF and microwave integrated assemblies, sub-assemblies and components used in a broad range of demanding defense applications operating in harsh environments including space. High Performance Communications and Electronic Intercept Receivers and Tuners: The ETG designs and manufactures innovative, high performance receiver and radio frequency digitizer products for military and intelligence applications. Crashworthy and Ballistically Self-Sealing Auxiliary Fuel Systems: The ETG designs and manufactures mission-extending, crashworthy and ballistically self-sealing auxiliary fuel systems for military rotorcraft. High Performance Active Antenna Systems and Airborne Antennas: The ETG designs and produces high performance active antenna systems and airborne antennas for commercial and military aircraft, precision guided munitions, and other defense applications and commercial uses. Nuclear Radiation Detectors: The ETG designs and manufactures highly sensitive, reliable and easy-to-use nuclear radiation detectors for law enforcement, homeland security and military applications. Specialty Silicone Products: The ETG designs and manufactures silicone material for a variety of demanding applications used in aerospace, defense, research, oil and gas, testing, pharmaceuticals and other markets. High-End Power Amplifiers: The ETG designs and manufactures precision power analog monolithic, hybrid and open frame components for a certain wide range of defense, industrial, measurement, medical and test applications. High-Reliability (Hi-Rel) Ceramic-to-Metal Feedthroughs and Connectors: The ETG designs and manufactures high-reliability ceramic-to-metal feedthroughs and connectors for demanding environments within the industrial, life science, medical, research, semiconductor, and other markets. Technical Surveillance Countermeasures (TSCM) Equipment: The ETG designs and manufactures TSCM equipment to detect devices used for espionage and information theft serving government agencies, law enforcement, corporate security personnel and TSCM professionals worldwide. High-end Radio Frequency Receivers and Sources: The ETG designs and manufactures RF Sources, Detectors and Controllers for a certain wide range of aerospace and defense applications. Rugged, Small-Form-Factor Embedded Computing Solutions: The ETG designs and manufactures rugged, small-form-factor embedded computing solutions that are primarily used in rugged commercial and industrial, aerospace and defense, transportation, and smart energy applications. High Performance Test Sockets and Adapters: The ETG designs and manufactures higher performance test sockets and adapters for both engineering and production use of semiconductor devices. Radiation Engineering: The ETG offers radiation assurance services and products used in testing and simulating radiation effects on electronic components and materials. Hi-Rel, Passive Electronic Components and Rotary Joint Assemblies. The ETG offers Hi-Rel, complex, passive electronic components and rotary joint assemblies for mostly aerospace and defense applications, in addition to other high-end applications, such as medical and energy uses, including emerging clean energy and electrification applications. Distribution, Sales, Marketing and Customers Each of the company's operating segments independently conducts distribution, sales and marketing efforts directed at their respective customers and industries and, in some cases, collaborates with other operating divisions and subsidiaries within its group for cross-marketing efforts. Sales and marketing efforts are conducted primarily by in-house personnel and, to a lesser extent, by independent manufacturers' representatives. Generally, the company's in-house sales personnel receive a base salary plus commissions and manufacturers' representatives receive a commission based on sales. The company is also a member of various trade and business organizations related to the commercial aviation industry, such as the Aerospace Industries Association, which it refers to as AIA, the leading trade association representing the nation's manufacturers of commercial, military and business aircraft, aircraft engines and related components and equipment. The company sells its products to a broad customer base consisting of domestic and foreign commercial and cargo airlines, repair and overhaul facilities, other aftermarket suppliers of aircraft engine and airframe materials, OEMs, domestic and foreign military units, electronic manufacturing services companies, manufacturers for the defense industry, as well as medical, telecommunications, scientific, and industrial companies. Net sales to the company's five largest customers accounted for approximately 18% of total net sales in the year ended October 31, 2023 (fiscal 2023). Research and Development For the year ended October 31, 2023, the company's research and development expenses included $95.8 million. Raw Materials The company is subject to rules promulgated by the Securities Exchange Commission pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding the use of certain materials (tantalum, tin, gold, and tungsten), known as conflict minerals, which are mined from the Democratic Republic of the Congo and adjoining countries. Environmental Regulation The company's operations are subject to extensive, and frequently changing, federal, state and local environmental laws and substantial related regulation by government agencies, including the Environmental Protection Agency. Other Regulation The company is also subject to a variety of other regulations, including work-related and community safety laws. The Occupational Safety and Health Act of 1970 mandates general requirements for safe workplaces for all employees and established the Occupational Safety and Health Administration (OSHA) in the Department of Labor. History HEICO Corporation was founded in 1957. The company was incorporated in 1957.