HEI

HEICO is a textbook quality compounder. Revenue has more than doubled in four years ($1.87B FY2021 → $4.49B FY2025) and net income has grown even faster ($304M → $690M), with FY2025 alone delivering +16.3% revenue, +23.6% operating income, +34.3% net income and +33.5% diluted EPS. Earnings are outpacing the top line, which signals genuine operating leverage and margin expansion, not just bolt-on revenue. Operating cash flow of $934M (+39%) dwarfs the modest $72.9M capex, so this growth is self-funding and cash-generative. The two-segment model — FSG (FAA-approved jet-engine/aircraft replacement parts, repair/overhaul, plus a leading military-parts supplier to the DoD) and ETG (defense/aerospace electronics) — gives diversified exposure across commercial-aftermarket and defense demand, and the MD&A confirms fiscal 2025 was further boosted by recent acquisitions, HEICO's proven serial-acquirer engine.

The balance sheet looks sturdy: equity of $4.31B (+18.4%), liabilities/equity of just 0.85x, current assets ($2.36B) covering current liabilities ($832M) nearly 3x, and a long string of retained earnings ($3.65B). Returns are solid at 16% ROE and a 22.7% operating margin. Note a data caveat: the only long-term-debt figure provided is stamped FY2010 ($14.1M), so the current debt load is effectively unavailable here — HEICO funds acquisitions partly with debt, so I would not assume the balance sheet is as nearly debt-free as that stale line implies.