EXTON, PA — Innovative Solutions & Support, Inc. (Nasdaq: ISSC) posted robust fiscal first quarter results, reporting $16.0 million in revenue, a 71.6% increase compared to the prior year. The growth was fueled by the addition of Honeywell’s military product line and solid performance in the company’s legacy operations.
Gross profit for the quarter reached $6.6 million, with a margin of 41.4%. Net income was $0.7 million, or $0.04 per diluted share, reflecting strong revenue growth, offset by integration costs and investments to support expanding operations. Adjusted EBITDA climbed 24%, reaching $3.1 million.
CEO Shahram Askarpour noted the significant contribution from military programs, which generated $8.0 million of revenue in the quarter compared to $2.0 million in the same period last year. “We expect military revenue to account for more than 40% of our total revenue mix in 2025, up from under 10% just three years ago,” said Askarpour. “Our U.S. manufacturing footprint is a vital advantage in the current policy environment and positions us well to benefit from increased domestic defense spending.”
To support growing demand and achieve operational efficiency, IS&S is significantly expanding its production capacity at its Exton, PA facility, with a planned threefold increase by mid-2025. The integration of F-16 product lines into the facility is expected to boost margins by the second half of the year.
Looking ahead, the company remains focused on developing cutting-edge autonomous flight technology, with its next-generation AI-enabled Utility Management System positioned as a certifiable platform for flight automation. “Entering 2025, we are laser-focused on the opportunities in autonomous flight and continue to prioritize return-driven capital allocation to grow our capabilities in cockpit automation,” added CFO Jeffrey DiGiovanni.
With $81 million in backlog and strategic investments underway, IS&S is poised to capitalize on growth opportunities in high-value defense and commercial avionics markets. “We intend to build on our momentum and pursue additional acquisitions that align with our focus on value creation and market leadership,” concluded Askarpour.
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