Robert Spingarn's questions to HEICO Corp (HEI) leadership • Q3 2024
Question
Robert Spingarn asked about the drivers of the Flight Support Group's (FSG) accelerated organic growth, signs of airline overcapacity, the impact of OEM production delays, and the current M&A pipeline.
Answer
Eric Mendelson, Co-President, attributed FSG's 15% organic growth to strong market execution and the broadened product line from the Wencor and Honeywell display acquisitions, noting no signs of an airline-driven slowdown. He confirmed OE build rate softness was offset by defense strength. Laurans Mendelson, Chairman and CEO, described the M&A pipeline as "very full," particularly with non-private equity deals, creating a "buyer's market" for HEICO. CFO Carlos Macau stated the consolidated organic growth was just over 7%.