Innovative Solutions & Support Reports Third Quarter 2025 Results

Innovative Solutions & Support, Inc., a leading provider of advanced avionic solutions for commercial, business aviation, and military markets, has released its financial results for the third quarter of fiscal year 2025, ending June 30, 2025.

Financial Highlights

For the third quarter of 2025, the company reported significant growth in several key financial metrics:

• Net revenue increased by 105.2% to $24.1 million.
• Gross profit rose to $8.6 million, with a gross margin of 35.6%.
• Net income was $2.4 million, or $0.14 per diluted share.
• Adjusted EBITDA grew by 43.3% to $4.4 million.
• The ratio of net debt to trailing twelve-month Adjusted EBITDA stood at 1.1x as of June 30, 2025.

Business and Operational Highlights

The company's revenue growth was driven by significant contributions from the recently acquired F-16 product line. However, the gross margin was impacted by elevated costs associated with the transition of production from Honeywell to IS&S's Exton facility. Operating expenses increased to $5.1 million, reflecting costs related to the Honeywell acquisition and other incremental expenses.

Strategic Initiatives and Corporate Developments

IS&S completed the construction of its Exton facility, which will enhance manufacturing capacity. The company also secured a new five-year, $100 million syndicated credit facility led by JPMorgan Chase Bank, N.A., providing expanded liquidity and flexibility for future growth initiatives and potential acquisitions.

Management's Perspective

CEO Shahram Askarpour highlighted the company's solid performance, noting the significant revenue and adjusted EBITDA growth. He acknowledged the impact of elevated costs on the F-16 product line but expressed optimism about future cost efficiencies and margin improvements. CFO Jeffrey DiGiovanni emphasized the strategic importance of the new credit facility in supporting the company's long-term growth objectives.

Future Outlook

Management remains confident in achieving the full-year target of growing both revenue and EBITDA by more than 30% compared to fiscal year 2024. The company anticipates additional growth and efficiencies once the transition of F-16 production is complete.

SEC Filing: INNOVATIVE SOLUTIONS & SUPPORT INC [ ISSC ] - 8-K - Aug. 14, 2025