Innovative Solutions and Support Reports 104.3% Revenue Growth to $21.9 Million

Innovative Solutions and Support, Inc. (IS&S) reported significant financial growth in its latest quarterly filing, with net sales for the three months ended March 31, 2025, reaching $21.9 million, a 104.3% increase from $10.7 million in the same period last year. This surge was driven by a substantial rise in product sales, particularly from the September 2024 Honeywell Agreement, which contributed approximately $10.8 million to the total. The company also noted a 49.8% increase in service sales, reflecting growth in engineering development services and customer service sales from the newly acquired product lines.

In terms of profitability, IS&S reported a net income of $5.3 million for the quarter, compared to $1.2 million in the prior year, resulting in a diluted earnings per share of $0.30, up from $0.07. The company's gross profit margin slightly decreased to 51.4% from 52.0%, attributed to changes in product mix and increased military sales. Operating expenses rose to $4.3 million, primarily due to higher selling, general, and administrative costs, which increased by 17.4% year-over-year.

The company’s balance sheet showed total assets of $89.9 million as of March 31, 2025, up from $82.4 million at the end of the previous fiscal year. Current assets increased significantly, driven by higher cash and cash equivalents, which rose to $1.2 million from $539,000. However, current liabilities also increased, leading to a current ratio of 4.87, indicating strong liquidity. The backlog at the end of the quarter was $79.6 million, down from $89.2 million, reflecting the company's ongoing efforts to convert contracts into sales.

Strategically, IS&S has been active in expanding its product offerings through acquisitions, including the recent Honeywell agreements, which have enhanced its capabilities in military display generators and flight control computers. The company anticipates fluctuations in revenue as it transitions production from Honeywell facilities to its own, which may temporarily impact operational performance. Looking ahead, IS&S remains optimistic about its growth trajectory, supported by a robust pipeline of contracts and a commitment to innovation in avionics solutions.

Overall, IS&S's financial performance in the latest quarter reflects a strong recovery and growth trajectory, bolstered by strategic acquisitions and increased demand for its products and services. The company is well-positioned to leverage its expanded capabilities and market presence in the coming quarters.