EXTON, PA — Innovative Solutions & Support, Inc. (Nasdaq: ISSC) reported a strong financial performance for the second quarter of fiscal 2025, highlighted by a 104% increase in revenue to $21.9 million and a 219% rise in adjusted EBITDA, reaching $7.7 million. The results demonstrate sustained momentum driven by growth in the F-16 product line, air transport market demand, and contributions from the acquired Honeywell military product line.
“Our positive momentum carried over into the second quarter of fiscal 2025, with revenues more than doubling and EBITDA seeing triple-digit growth,” said Shahram Askarpour, IS&S’s Chief Executive Officer. “This strong performance reflects contributions from key growth initiatives and investments in infrastructure to enhance our defense and military capabilities.”
Gross profit for the quarter jumped to $11.3 million, a 102% year-over-year increase, with a gross margin of 51.4%. Net income rose to $5.3 million, or $0.30 per diluted share, up from $1.2 million, or $0.07 per share, in the same period last year. Additionally, operating expenses as a percentage of revenue decreased to 19.6% from 36.7%, underscoring significant operating leverage as IS&S scales its business.
IS&S advanced multiple strategic priorities during the second quarter, including the integration of Honeywell military product lines into its facilities. The company also continued construction to expand its Exton-based facility, which will triple capacity and is on track to be completed by mid-2025.
The successful roll-out of a NetSuite Enterprise Resource Planning system further bolstered operational efficiency. “With our current cash balance and availability under our credit facility over $8.8 million, IS&S remains in a strong financial position to support ongoing operations and growth,” said Jeffrey DiGiovanni, Chief Financial Officer of IS&S.
Orders during the quarter totaled $20.8 million, while backlog reached $79.6 million as of March 31, 2025. This excludes substantial orders tied to long-term programs with OEM customers, including contributions from aircraft such as the Pilatus PC-24, Boeing T-7 Red Hawk, and Lockheed F-16.
Looking ahead, IS&S is committed to meeting both short-term financial targets and long-term growth objectives. “We are building a scalable platform equipped to deliver integrated avionics solutions for commercial and military customers alike,” said Askarpour. “The momentum in our business gives us confidence as we further expand our capabilities to meet evolving market demands.”
With its robust financial results, operational progress, and strategic investments, IS&S solidifies its position as a key player in the aviation and defense sectors while maintaining a foundation for sustained growth.
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