Innovative Solutions and Support, Inc. (ISSC), now operating under the name Innovative Aerosystems, reported significant financial growth in its fiscal year ending September 30, 2025. The company achieved net sales of $84.3 million, marking a 78.6% increase from $47.2 million in the previous fiscal year. This surge in revenue was primarily driven by a $29.8 million increase in product sales, largely attributed to the September 2024 acquisition of Honeywell's military display generators and flight control computers. The company also reported a net income of $15.6 million, a 123.3% increase from $7.0 million in the prior year.
The company's backlog at the end of the fiscal year stood at $77.4 million, down from $89.2 million a year earlier. This decrease was influenced by the previous year's backlog, which included $74.3 million from the Honeywell acquisition. The company anticipates recognizing approximately 44% of its backlog as revenue over the next 12 months, with 92% expected to be recognized within 24 months. The operational performance was further supported by a 35.8% increase in selling, general, and administrative expenses, which rose to $16.4 million, reflecting investments in professional services and increased headcount.
Strategically, ISSC has made significant strides in expanding its product offerings and market presence. The company has successfully integrated several Honeywell product lines, enhancing its capabilities in the aerospace sector. Notable contracts include the selection of the ThrustSense® Autothrottle system by the U.S. Army for its C-12 aircraft and a multi-million dollar contract for a 19” Multifunction Display with Integrated Mission Computer. The company has also expanded its manufacturing capacity by over 300% with the completion of a new facility in Exton, Pennsylvania, which is expected to support its growth strategy.
As of September 30, 2025, ISSC employed 147 full-time staff, an increase from 133 the previous year, reflecting its commitment to enhancing operational capabilities. The company continues to focus on the retrofit market, which is expected to grow due to the aging global aircraft fleet. The company’s strategic outlook remains positive, with plans to leverage its expanded product portfolio and manufacturing capabilities to capture a larger share of the aerospace market, particularly in military and commercial aviation sectors.
Looking ahead, ISSC is positioned to benefit from ongoing demand for its advanced avionics solutions, particularly as the aviation industry increasingly seeks to upgrade existing aircraft rather than invest in new models. The company is also exploring further acquisition opportunities to enhance its product offerings and market reach. However, it remains vigilant regarding potential risks, including supply chain disruptions and changes in government spending priorities, which could impact its operations and financial performance.
About INNOVATIVE SOLUTIONS & SUPPORT INC
Innovative Solutions & Support, Inc. designs, manufactures, and services advanced avionics systems for commercial, military, and general aviation markets. Its core products include flight decks, navigation, communication, sensors, and autopilot systems, primarily serving OEMs, defense agencies, and retrofit customers worldwide. The company leverages proprietary technology, strategic acquisitions, and a vertically integrated model to deliver reliable, high-performance aerospace solutions with a focus on retrofit upgrades and system integration.
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