Jan Inglebreck's questions to HEICO Corp (HEI) leadership • Q1 2025
Question
Jan Inglebreck of Baird asked for an updated view on HEICO's positioning within defense markets amid Pentagon contract reviews and inquired about the medium-term impact of rising OEM build rates on Flight Support Group margins.
Answer
Victor Mendelson, Co-President, sees nice opportunities in defense, particularly in missile defense and space-based programs, where HEICO's cost-saving solutions are beneficial. Eric Mendelson, Co-President, added that while the defense opportunity is significant, it's not a fiscal '25 story. Regarding OEM build rates, he expressed no concern, citing the aging fleet, high maintenance costs of new aircraft, and HEICO's broad offering of both OEM and alternative parts.