Joao Santos's questions to HEICO Corp (HEI) leadership • Q1 2025
Question
Joao Santos of UBS asked for the portfolio split between long-term agreements and annually re-priceable contracts, and also inquired about the company's pricing power in the aftermarket segment.
Answer
Eric Mendelson, Co-President, estimated the split between long-term agreements and annually re-priceable contracts is roughly 50-50. He reiterated that HEICO has significant pricing opportunity but chooses not to fully exploit it, preferring to maintain fair prices for customers while ensuring cost increases are covered. He stated, "frankly, we're leaving a lot of money on the table."