Investor interest in aviation aftermarket assets has remained steady through a broader slowdown in M&A and is heating up even as high interest rates continue.
Parts-supply specialist Heico is seeing some customers cut back on purchasing, but broader aftermarket demand remains strong amid continued new-equipment delivery struggles.
Large backlogs, a robust air travel market, and recent supply chain disruptions boosting demand for servicing of legacy aircraft bode well for the aftermarket.
HEICO Corporation had a strong fiscal third quarter as its revenue rose 27% to a record $722.9 million and operating income increased 16% to $149.4 million.
The aftermarket has seen some big mergers recently, such as Heico’s purchase of Wencor. Editors discuss why mergers are picking up and the outlook for more.
Heico’s strategy has been affirmed by Fitch Ratings, which gave the PMA parts manufacturer investment grade status with its first rating of the company.