Company: HEI-A
Filing Date: 2025-12-22
Form Type: 10-K
Source: 0000046619-25-000082
Chunk: 37

Company: HEICO CORP
Filing Date: 2025-12-22
Form: 10-K
Item: Item 1A
Chunk 37
---
 jet engines and aircraft components, we may not be able to re-design and manufacture replacement parts that perform as well as those offered by OEMs or we may not be able to profitably sell our replacement parts at lower prices than the OEMs;

•We may need to expend significant capital to:

-    purchase new equipment and machines,

-    train employees in new methods of production and service, and

-    fund the research and development of new products; and

•Development by our competitors of patents or methodologies that preclude us from the design and manufacture of aircraft replacement parts or electrical and electro-optical 

18

Index

equipment could adversely affect our business, financial condition and results of operations.

    In addition, we may not be able to successfully develop new products, equipment or methods of repair and overhaul service, and failure to do so could have a material adverse effect on our business, financial condition and results of operations.

Intense competition from existing and new competitors may harm our business.

    We face significant competition in each of our businesses.

Flight Support Group

•For jet engine and aircraft component replacement parts, we compete with the industry’s leading jet engine and aircraft component OEMs.

•For the distribution, overhaul and repair of jet engine and aircraft components and avionics and navigation systems as well as the manufacture of specialty aircraft and defense related parts, we compete with:

-    major commercial airlines, many of which operate their own maintenance and overhaul units;

-     OEMs, which manufacture, distribute, repair and overhaul their own and other OEM parts; and 

-     other independent service companies.

Electronic Technologies Group

•For the design and manufacture of various types of electronic, data and microwave, and electro-optical equipment products, we compete in a fragmented marketplace with a number of companies, some of which are well capitalized.

Many of the industries serviced by our operating segments are highly fragmented, have several highly visible leading companies, and are characterized by intense competition.  Some of our OEM competitors have greater name recognition than HEICO, as well as complementary lines of business and financial, marketing and other resources that HEICO does not have.  In addition, OEMs, aircraft maintenance providers, leasing companies and FAA-certificated repair facilities may attempt to bundle their services and product offerings in the supply industry, thereby significantly increasing industry competition.  Moreover, our smaller competitors may be able to offer more attractive pricing of parts as a result of lower labor costs or other factors.  A variety of