The best quarter in the company's history, and yet the most interesting question is the price

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…