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    HEICO (HEI) Is Up 10.2% After Earnings Beat And Acquisition Surge Is The Bull Case Changing?

    Simply Wall St·12/25/2025 08:26:08
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    • In December 2025, HEICO reported strong fourth-quarter and full-year 2025 results, with sales rising to US$1,209.41 million for the quarter and US$4.49 billion for the year, alongside higher earnings, a 95th consecutive semiannual dividend of US$0.12 per share, and confirmation of active acquisition spending and a robust deal pipeline.
    • Management signaled that disciplined, earnings-accretive acquisitions remain central to HEICO’s long-term plan, suggesting its recent US$629.8 million of deal activity is part of an ongoing effort to expand product breadth and reinforce its position across commercial aerospace, defense, and electronic technologies.
    • We’ll now examine how HEICO’s strong earnings growth and continued acquisition push could reshape its investment narrative for long-term investors.

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    HEICO Investment Narrative Recap

    To own HEICO, you need to believe that its niche in high-margin aerospace and electronics parts can keep growing through a mix of organic demand and bolt-on deals. The latest earnings and acquisition commentary primarily reinforce that story, though they also underline the short term catalyst of continued acquisition execution and the key risk that heavy reliance on deals could pressure margins if integration or pricing ever falters.

    The full year 2025 results, with US$4,485.04 million in sales and US$690.39 million in net income, tie directly into this catalyst by showing how recent acquisitions and organic demand have both supported growth. Management’s emphasis on a “healthy pipeline” of potential targets and strict accretive criteria makes the acquisition engine even more central to HEICO’s near term narrative and puts more focus on how repeatable that playbook proves to be.

    But while the growth story is compelling, investors should also be aware of how dependent it has become on ongoing acquisitions and what happens if that flywheel slows...

    Read the full narrative on HEICO (it's free!)

    HEICO's narrative projects $5.4 billion revenue and $948.3 million earnings by 2028. This requires 8.0% yearly revenue growth and a $306.5 million earnings increase from $641.8 million today.

    Uncover how HEICO's forecasts yield a $353.00 fair value, a 4% upside to its current price.

    Exploring Other Perspectives

    HEI 1-Year Stock Price Chart
    HEI 1-Year Stock Price Chart

    Three Simply Wall St Community valuations cluster between US$310 and US$353 per share, highlighting how differently individual investors assess HEICO’s earnings power. Set against HEICO’s acquisition driven growth focus, this spread underlines why you may want to compare several views on how sustainable that deal pipeline really is.

    Explore 3 other fair value estimates on HEICO - why the stock might be worth 8% less than the current price!

    Build Your Own HEICO Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your HEICO research is our analysis highlighting 3 key rewards that could impact your investment decision.
    • Our free HEICO research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate HEICO's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.