Astronics vs. Heico: Which Aerospace Tech Stock Has More Lift in 2025?

Aparajita Dutta June 30, 2025

BA ATRO HEI

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Key Takeaways

Astronics posted 11.3% Q1 sales growth, led by a 13.3% rise in commercial transport and 94.8% military gains.
Heico saw 14% organic sales growth in its Flight Support unit and 4% in Electronic Technologies in fiscal Q2.
ATRO and HEI face supply-chain headwinds, but both show rising EPS estimates and strong solvency positions.

Increasing commercial aircraft production, driven by steadily growing global air traffic, combined with robust growth in aftermarket services, is fueling demand for aerospace technology stocks, such as Astronics Corporation (ATRO - Free Report) and HEICO Corporation (HEI - Free Report) . Simultaneously, heightened geopolitical tensions are prompting increased defense budgets worldwide, thereby driving demand for advanced avionics, electronic and power systems, as well as other aerospace components for varied combat aircraft, which are supplied by both ATRO and HEI.

Astronics focuses on designing and manufacturing advanced technologies in electrical power, lighting, connectivity, and cabin electronics, serving both commercial airlines and military customers. Its niche offerings in inflight entertainment and power systems cater to the growing need for smarter, more connected aircraft cabins. HEICO, by contrast, is the world's largest independent aerospace parts manufacturer and supplier of jet engines and aircraft components.

As aerospace electrification, digitalization, and global fleet expansion draw investor interest, a question arises: Which company offers better returns and resilience to its stakeholders? A comparative evaluation of ATRO and HEI's fundamentals should help determine which stock presents greater upside potential.

How Do Financial Stability & Growth Catalysts Stack up for ATRO vs HEI?

Astronics ended March 2025 with a cash and cash equivalent of $26 million. While its long-term debt totaled $160 million, as of March 2025-end, its current debt was nil. So, it is safe to conclude that the stock boasts a solid solvency position in the near term, which should enable it to duly meet its capital expenditure target of $35-$40 million in 2025. A major part of this investment is expected to be dedicated to new product innovations to effectively expand core competency in its existing business. This financial stability should also bolster ATRO’s strategy of enhancing its value through strategic acquisitions.

In contrast, Heico’s cash and cash equivalents, as of April 30, 2025, totaled $0.24 billion, which improved sequentially. The company’s long-term debt, as of April 30, 2025, was $2.27 billion, while its current debt was $0.04 billion. So, it is safe to conclude that Heico holds a strong solvency position in the short run, which should offer the stock the flexibility to carry on its disciplined acquisition strategy, which has always been part of its growth story.

With respect to growth drivers, the steadily improving air passenger traffic worldwide (for the past couple of years), following a major setback during the initial years of the COVID-19 pandemic, has been playing the role of the primary growth catalyst for both ATRO and HEI. Evidently, Astronics registered an 11.3% year-over-year sales improvement in first-quarter 2025, partially backed by a solid 13.3% surge in its sales to the commercial transport market. Heico’s Flight Support group unit recorded a solid 14% organic sales growth, during fiscal second-quarter 2025, owing to continued increase in commercial aerospace product sales.

Sales growth for defense-related aerospace parts and equipment, backed by increasing defense product acquisition trend worldwide, has also been contributing to both ATRO and HEI’s top-line performance. Notably, an impressive 94.8% improvement in sales to the military aircraft market partially drove the 11.3% year-over-year overall sales improvement for ATRO in the first quarter of 2025. On the other hand, increased demand for defense products played a vital role in HEI’s Electronic Technologies Group unit’s organic sales growth of 4% in the fiscal second quarter.

Risks of Investing in ATRO vs HEI:

With ATRO and HEI operating in the broader aerospace sector, both stocks face industry-specific challenges that investors should consider before investing in them.

In 2025, while both Boeing (BA - Free Report) and Airbus have signaled intentions to increase aircraft production rates compared to 2024, actual growth so far has been slower than anticipated and remains below pre-pandemic levels. This shortfall is primarily due to ongoing supply-chain disruptions, an issue that continues to affect component suppliers like ATRO and HEI. Given that both companies count Boeing and Airbus among their key OEM clients, the limited availability of critical parts and the resulting delays in aircraft assembly could suppress demand for the specialized equipment and systems supplied by ATRO and HEI. Consequently, this may weigh on their commercial aerospace revenue growth in the near term.

Moreover, the recently imposed U.S. import tariffs on many of the nation’s trading partners could cause long-term disruptions in global trade, with the aerospace sector being no exception, thus further exacerbating this sector’s supply-chain challenges. This, in turn, may negatively impact the commercial aerospace business of both ATRO and HEI.

How Do Zacks Estimates Compare for ATRO & HEI?

The Zacks Consensus Estimate for ATRO’s 2025 sales and earnings per share (EPS) implies an improvement of 6.4% and 37.6%, respectively, from the year-ago quarter’s reported figures. ATRO’s near-term EPS estimates have shown an upward movement over the past 60 days.