Innovative Solutions & Support, Inc. (ISSC) is a Pennsylvania-based company specializing in the design, development, manufacturing, and servicing of advanced avionics systems. The company provides solutions for commercial air transport, general aviation, and military markets, focusing on both retrofit applications and Original Equipment Manufacturers (OEMs). ISSC offers a diverse range of products, including communication systems, sensors, flight actuators, and cockpit display systems, aimed at enhancing aircraft functionality and extending their operational lifespan.
- Communication Systems - Develops communication radios, audio panels, and radio management units for seamless in-flight communication.
- Sensors and Control Systems - Produces air data computers, attitude and heading reference systems, magnetometers, inertial reference units, GPS receivers, utility management systems, and flight control computers for precise aircraft control and navigation.
- Flight Guidance and Cockpit Display Systems - Offers integrated Flight Management Systems (FMS), Auto-Throttle Systems, and advanced GPS receivers for precision navigation and enhanced cockpit functionality.
- Advanced Flight Actuators - Designs linear and rotary smart actuators for controlling aircraft levers and surfaces.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Shahram Askarpour ExecutiveBoard | Chief Executive Officer (CEO) | Dr. Askarpour is the CEO of ISSC since January 2022. Previously, he served as President from March 2012 and as Vice President of Engineering since 2003, bringing extensive aerospace experience to the company. | View Report → | |
Jeffrey DiGiovanni Executive | Chief Financial Officer (CFO) | Jeffrey DiGiovanni is the CFO of Innovative Solutions and Support, Inc. since April 8, 2024. He previously held executive roles at StoneMor Inc. as CFO and Senior Vice President, and at Pine Hill Group as Managing Director. | ||
Denise L. Devine Board | Independent Director | Founder and CEO of FNB Holdings, LLC; Director at Fulton Financial Corporation; Director at Selectquote, Inc.; Board Member at Ben Franklin Technology Partners of Southeastern Pennsylvania | Denise L. Devine was appointed as an independent director at ISSC on January 27, 2025 and serves on the Audit Committee. She brings extensive experience from roles such as Founder and CEO of FNB Holdings, LLC and leadership positions at several other companies. | |
Garry Dean Board | Director | International Captain at Delta Airlines (2015–2020); Commissioner and Vice-Chair of the Community Oversight Board of the Police in Arlington County, Virginia (2021–2024); Appointed by Governor Glenn Youngkin to the Virginia Joint Leadership Council of Veteran’s Service Organizations (2023); Mentor and Advisor to the Chief National Guard Bureau and the Director of the Air National Guard (Since 2016) | Garry Dean has served as a Director at ISSC since 2024 and acts as the Chairman of the Nominating & Corporate Governance Committee. Previously, he built a distinguished career as an international captain at Delta Airlines and held various public service roles. | |
Glen R. Bressner Board | Chairman of the Board | Co-founder and Managing Partner of Activate Venture Partners | Glen R. Bressner has served as Chairman of the Board at ISSC since 1999 and is recognized as a financial expert under Nasdaq and SEC regulations. Previously, he co-founded and is the Managing Partner of Activate Venture Partners, highlighting his extensive experience in corporate governance and venture capital. | |
Roger A. Carolin Board | Director | Director at Amkor Technology, Inc. | Roger A. Carolin has served as a Director at ISSC since 2016 and assumed the role of Chairman of the Audit Committee in June 2023. He has a diverse background, including serving as a Venture Partner at SCP Partners until 2024 and as Co-Founder and CEO of CFM Technologies, Inc., with additional board membership at Amkor Technology, Inc.. | |
Stephen L. Belland Board | Director | CEO of Integrated Connection, LLC; Principal at Clear Rock Advisors | Stephen L. Belland has over 37 years of experience in aerospace and defense and has been serving as a Director at ISSC since 2022. He previously held executive roles at Rockwell Collins and currently serves as CEO of Integrated Connection, LLC and Principal at Clear Rock Advisors. |
- Based on your Q&A discussion, can you provide more detailed guidance on the predictability and magnitude of the Honeywell pull forward, and how this may impact your revenue visibility in Q3 and beyond?
- With military contracts expected to continue representing around 40% of revenue, what specific steps are you taking to mitigate the volatility in gross margins caused by the mix of lower-margin military and higher-margin commercial contracts?
- In light of your Expanding Exton facility, what utilization rate must be achieved to support your targeted mid-30% revenue growth while maintaining the expected EBITDA margin expansion and managing increased CapEx risks?
- Can you elaborate on the long-term impact of the integration costs, including duplicative expenses from acquisitions and inventory adjustments, on your EBITDA margins, especially as you continue to scale operations?
- Given your strategy of potentially acquiring foreign companies to bring production back to the U.S., what are the major operational and integration challenges you foresee, and how will you ensure these acquisitions deliver the intended synergies without disrupting current production?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
This competitor is identified as one of the principal competitors in the markets for the company's products, which are intensely competitive and subject to rapid technological change. | |
This competitor is noted as having substantially greater financial, technical, and human capital resources, as well as greater experience in marketing their products. | |
GE Aerospace | This competitor is highlighted as one of the primary competitors in the aerospace and defense markets, with significant resources and scale. |
Thales Defense & Security, Inc. | This competitor is mentioned as a key player in the competitive landscape for the company's products, which include advanced avionics solutions. |
This competitor is listed among the principal competitors in the aerospace and defense markets, which are characterized by rapid technological advancements. | |
This competitor is identified as one of the main competitors in the markets for the company's products, which require innovation and advanced technology. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Pilatus | Multi-year production contract for PC-24 aircraft | OEM | FY2024: 23% of $47.2M ⇒ $10.856M ( ) Also 23% in FY2023, 22% in FY2022 ( ) |
Textron | Supplies ThrustSense® Autothrottles for King Air 360/260 | OEM | FY2024: 7% of $47.2M ⇒ $3.304M ( ) |
Honeywell | Exclusive licensing agreements for multiple product lines | All | FY2024: 7% of $47.2M ⇒ $3.304M ( ) |
ATSG | Retrofit solutions for cargo operations | Retrofit | FY2023: 12% of total revenue, 22% in FY2022 ( ) |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Honeywell (military display generators & flight control computers) | 2024 | Completed on September 27, 2024 for a $14.2 million cash transaction, this business combination involved the purchase of inventory, equipment, customer documents, and the assignment of contracts along with exclusive and non-exclusive licenses, strategically enhancing IS&S’s military aviation capabilities and operational synergies. |
Honeywell (communication & navigation product lines) | 2024 | Finalized on July 22, 2024 for $4.2 million cash, this asset acquisition expanded IS&S’s product portfolio by obtaining inventory, customer documents, contracts, and intellectual property licenses that foster cross-selling and bolster its presence in the air transport, military, and business aviation segments. |
Honeywell International, Inc. (inertial, communication & navigation product lines) | 2023 | Completed on June 30, 2023 with a $36 million cash transaction financed through a $20 million term loan and a $10 million revolving credit, this acquisition secured perpetual exclusive IP rights and key assets designed to increase revenue by over 40%, expand market reach, and create significant cost synergies. |
Recent press releases and 8-K filings for ISSC.
- 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.
- 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.