INNOVATIVE SOLUTIONS & SUPPORT (ISSC) Company Report

Innovative Aerosystems (formerly Innovative Solutions and Support) reported strong financial results for Q4 2025, with revenue increasing 45% year-over-year to $22 million, net income of $7.1 million, and Adjusted EBITDA of $9.6 million, up 71%. For the full year, revenue reached $84 million, up nearly 80%, with net income of $15.6 million and Adjusted EBITDA of $25 million, up over 80%.
The company's backlog as of September 30, 2025, was approximately $77 million, driven by new orders of approximately $27 million in Q4 2025.
Key strategic accomplishments include rebranding to Innovative Aerosystems, successfully integrating and resuming full-scale production for the F-16 program, and making significant progress on new product developments like the UMS-2 platform and Liberty Flight Deck.
Innovative Aerosystems secured a new five-year $100 million committed credit agreement to support its long-term growth strategy, which targets $250 million in revenue and Adjusted EBITDA margins of 25% to 30%.
For Q1 Fiscal 2026, the company expects revenues between $18 million-$20 million, with organic revenue growth anticipated to be more modest due to a pull-forward of F-16 related revenue into FY2025. A $1.8 million one-time Employee Retention Tax Credit benefit was recognized in Q4 2025.

Dec 18, 2025, 3:00 PM

Transcript

Innovative Aerosystems (ISSC) Reports Strong Q4 and Full Year 2025 Results, Sets Long-Term Targets, and Expands Credit Facility

ISSC

Earnings

Guidance Update

Debt Issuance

Innovative Aerosystems (ISSC) reported strong Fiscal Year 2025 revenue of $84 million, an increase of nearly 80% year-over-year, with net income of $15.6 million or $0.88 per diluted share, and Adjusted EBITDA of $25 million, up over 80%. For the fourth quarter, revenue increased 45% to $22 million, with net income of $7.1 million or $0.39 per diluted share, and Adjusted EBITDA of $9.6 million, a 71% increase.
The company established long-term targets of $250 million in revenue and Adjusted EBITDA margins between 25% and 30%, anticipating high single-digit organic revenue growth. For Q1 2026, revenues are expected to be in the range of $18-$20 million.
Innovative Aerosystems secured a new five-year $100 million committed credit agreement with J.P. Morgan Chase, providing an additional $65 million in liquidity and an option for up to $25 million more, bringing the total potential facility to $125 million.
Richard Silfen was appointed as an independent director, expanding the board to seven directors.

Dec 18, 2025, 3:00 PM

Transcript

Innovative Aerosystems Reports Strong Q4 and Full Year Fiscal 2025 Results, Rebrands, and Outlines Strategic Growth

ISSC

Earnings

Revenue Acceleration/Inflection

New Projects/Investments

Innovative Aerosystems (formerly Innovative Solutions and Support) reported strong Fiscal 2025 results, with full-year revenue of $84 million, up nearly 80% from the previous year, and Adjusted EBITDA of $25 million, an increase of over 80%. For Q4 2025, revenue increased 45% year over year to $22 million, with net income of $7.1 million and Adjusted EBITDA of $9.6 million.
The company rebranded to Innovative Aerosystems to better reflect its strategic focus on advanced avionics solutions. Key operational achievements include the successful integration and resumption of full-scale production for the F-16 program in their external facility , and significant progress on new products like the UMS-2 platform for autonomous flight and the Liberty Flight Deck.
Innovative Aerosystems expanded its engineering team by more than 50% in recent years and tripled its production capacity in 2025. The company also secured a new five-year $100 million committed credit agreement, providing $65 million in additional liquidity to support organic growth and strategic acquisitions.
For Q1 2026, the company expects revenues to be in the range of $18-$20 million. Long-term targets include $250 million in revenue and Adjusted EBITDA margins of 25% to 30%, driven by high single-digit organic growth and disciplined acquisitions.
The company recognized a one-time $1.8 million gross benefit related to the Employee Retention Tax Credit in Q4 2025.

Dec 18, 2025, 3:00 PM

Transcript

Innovative Aerosystems Reports Strong Fiscal 2025 Fourth Quarter and Full Year Results

ISSC

Earnings

Guidance Update

New Projects/Investments

Innovative Aerosystems (IA) reported net sales of $84.3 million for fiscal year 2025, marking a 78.6% increase compared to the prior year, with fourth-quarter net sales reaching $22.2 million, up 44.6% year-over-year.
For fiscal year 2025, the company achieved net income of $15.6 million, or $0.88 per diluted share, and Adjusted EBITDA of $24.8 million, an 81.6% increase from the prior year.
IA's full-year fiscal 2025 operating cash flow was $13.3 million and free cash flow was $6.8 million. As of September 30, 2025, net debt stood at $21.7 million, resulting in a 0.9x leverage ratio to trailing twelve-month Adjusted EBITDA.
The company introduced a long-term target of $250 million in revenue and a 25-30% Adjusted EBITDA margin by fiscal 2029.
Key strategic initiatives in fiscal 2025 included the rebranding to Innovative Aerosystems, expansion of its Exton manufacturing facility, and the unveiling of the new Liberty Flight Deck (LFD) in October 2025.

Dec 18, 2025, 2:37 PM

8-K

Innovative Aerosystems Reports Strong Fiscal 2025 Fourth Quarter and Full Year Results

ISSC

Earnings

Guidance Update

Revenue Acceleration/Inflection

Innovative Aerosystems (ISSC) reported full-year fiscal 2025 net sales of $84.3 million, an increase of 78.6% year-over-year, with net income of $15.6 million, or $0.88 per diluted share.
For the fourth quarter of fiscal 2025, net sales increased 44.6% year-over-year to $22.2 million, and net income was $7.1 million, or $0.39 per diluted share.
The company achieved Adjusted EBITDA of $24.8 million for the full year, up 81.6%, and $9.6 million for the fourth quarter, up 71.1%.
Innovative Aerosystems introduced a longer-term target of $250 million in revenue and 25-30% Adjusted EBITDA margin by fiscal 2029.
As of September 30, 2025, the company's backlog was $77.4 million, and its net debt to trailing twelve-month Adjusted EBITDA ratio was 0.9x.

Dec 18, 2025, 2:00 PM

Press Release

Innovative Solutions & Support Reports Q3 2025 Results

ISSC

Earnings

Debt Issuance

New Projects/Investments

Innovative Solutions & Support, Inc. (ISSC) reported net revenue of $24.1 million for the fiscal third quarter ended June 30, 2025, representing a 105.2% increase compared to the prior year period. Net income for the quarter was $2.4 million, or $0.14 per diluted share.
The substantial revenue growth was primarily driven by the recently acquired F-16 product line, including deliveries that were pulled forward, and the company anticipates a reduction in F-16 revenues over the next two quarters as finished inventory levels normalize.
In July 2025, the company closed a new five-year, $100 million syndicated credit facility, which replaces its existing $35 million line of credit and provides an additional $65 million in expanded liquidity.
As of June 30, 2025, ISSC had net debt of $22.7 million and a ratio of net debt to trailing twelve-month Adjusted EBITDA of 1.1x.

Aug 14, 2025, 12:00 AM

8-K

ISSC Announces New $100 Million Credit Facility

ISSC

Debt Issuance

New Projects/Investments

Innovative Solutions & Support (ISSC) entered into a new five-year, $100 million committed credit agreement on July 18, 2025, with a lending syndicate led by JPMorgan Chase Bank, N.A..
This new facility replaces the Company's existing $35 million line of credit.
The $100 million credit facility consists of a $30 million secured revolving loan, a $25 million secured term loan, and a $45 million secured delayed draw term facility.
The credit facilities bear interest at Term SOFR plus 175 to 275 basis points, with the applicable margin determined by the Company\u2019s total net leverage ratio.
Proceeds from the initial term loan and revolving facility borrowings were used to refinance the previous facility and pay transaction costs, while future borrowings can be used for working capital, general corporate purposes, and permitted acquisitions.

Jul 22, 2025, 12:00 AM

8-K

Innovative Solutions and Support Inc. Announces Strong Q2 2025 Results and Reaffirms FY25 Guidance

ISSC

Earnings

Guidance Update

New Projects/Investments

Innovative Solutions and Support Inc. (ISSC) reported strong Q2 2025 financial results, with net revenues of $21.9 million, more than double year-over-year, and net income of $5.3 million, an increase of over 300%.
The revenue growth was primarily driven by new military programs, including the F-16 program, and contributions from the recently acquired Honeywell military product line, which contributed $10.8 million to revenue.
The company's backlog stood at approximately $80 million as of March 31, 2025, and it expects at least 40% of its fiscal year 2025 revenue to come from military customers.
ISSC is on track to complete the expansion of its Exton, Pennsylvania facility by mid-2025, which will double its footprint and increase production capabilities by more than threefold, with the new building projected to support up to $250 million in revenue.
The company reaffirmed its fiscal year 2025 guidance, expecting both revenue and EBITDA growth of greater than 30% compared to fiscal year 2024.