Jeff Van Sinderen's questions to INNOVATIVE SOLUTIONS & SUPPORT (ISSC) leadership • Q3 2025
Question
Jeff Van Sinderen of B. Riley Securities inquired about the normalized gross margin outlook, the company's target net leverage ratio, and the specifics of its acquisition strategy, including the M&A pipeline and target types.
Answer
CFO Jeffrey DiGiovanni stated that the company targets a gross margin in the mid-40% range, dependent on product mix, and is comfortable with a net leverage ratio around 3x for acquisitions. CEO Shahram Askarpour added that the M&A pipeline includes potential divestitures from Honeywell, which are typically auctions, as well as ongoing dialogues with smaller avionics companies.