ISSC Soars: Net Sales Up 78.6%, Net Income Jumps 123.3% in FY25

TL;DR

**ISSC is flying high with massive sales and profit growth, making it a strong buy for aerospace exposure despite a slight backlog dip.**

AI Summary

INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC) reported robust financial performance for the fiscal year ended September 30, 2025, with net sales surging by 78.6% to $84.3 million, up from $47.2 million in the prior fiscal year. Net income more than doubled, increasing by 123.3% to $15.6 million, compared to $7.0 million in fiscal year 2024. The company rebranded to Innovative Aerosystems on October 6, 2025, signaling a strategic evolution. Key business developments include the selection of its ThrustSense Autothrottle system by the US Army for C-12 (B200) aircraft, with deliveries commencing in September 2024. Additionally, ISSC secured a multi-million dollar production contract from a major aerospace company for its 19" Multifunction Display (MFD) with Integrated Mission Computer in August 2024, expanding its OEM partnerships with companies like Pilatus, Textron, and Boeing. Despite strong sales growth, backlog decreased to $77.4 million at September 30, 2025, from $89.2 million in the prior year, which included $74.3 million from a September 27, 2024 acquisition. The company anticipates recognizing approximately 44% of its current backlog as revenue over the next 12 months.

Why It Matters

ISSC's impressive financial growth, with net sales up 78.6% and net income up 123.3%, signals strong demand for its avionics solutions in both commercial and military sectors. This performance, coupled with strategic contract wins like the US Army's adoption of ThrustSense Autothrottle and a new OEM deal for its 19" MFD, positions ISSC as a growing player in the competitive aerospace market. For investors, this indicates potential for continued revenue expansion and profitability, while employees benefit from a stable and expanding business. Customers gain access to advanced, integrated flight solutions, enhancing aircraft performance and safety, particularly as the company leverages its systems integration expertise against larger competitors like Honeywell and Collins Aerospace.

Risk Assessment

Risk Level: medium — The risk level is medium due to significant customer concentration and reliance on third-party suppliers. The filing states, "We serve a limited number of customers and face customer concentration risk," and "The Company relies on third-party suppliers for components of its products, including several sole source suppliers." This dependency on a few customers and suppliers, coupled with potential supply chain disruptions, introduces notable operational and financial vulnerabilities.

Analyst Insight

Investors should consider ISSC's strong financial performance and strategic contract wins as indicators of growth potential. However, they should closely monitor customer concentration and supply chain risks, as these could impact future results. A deeper dive into the specific terms and duration of key contracts, especially with the US Army and major aerospace OEMs, would provide further clarity on revenue stability.

Financial Highlights

revenue

$84.3 million

net Income

$15.6 million

revenue Growth

+78.6%

Revenue Breakdown

Key Numbers

• $84.3 million — Net Sales for FY2025 (Increased by 78.6% from $47.2 million in FY2024)
• $15.6 million — Net Income for FY2025 (Increased by 123.3% from $7.0 million in FY2024)
• $77.4 million — Backlog at September 30, 2025 (Decreased from $89.2 million at September 30, 2024)
• 78.6% — Year-over-year increase in net sales (Reflects significant growth in the fiscal year ended September 30, 2025)
• 123.3% — Year-over-year increase in net income (Indicates substantial improvement in profitability for FY2025)
• 44% — Portion of backlog expected to be recognized as revenue (Over the next 12 months)
• 92% — Portion of backlog expected to be recognized as revenue (Over the next 24 months)
• $81.8 million — Aggregate market value of common stock held by non-affiliates (As of March 31, 2025)
• 17,752,354 — Outstanding shares of common stock (As of November 30, 2025)
• $74.3 million — Acquired backlog (Included in September 30, 2024 backlog due to September 27, 2024 acquisition)

Key Players & Entities

• INNOVATIVE SOLUTIONS & SUPPORT INC (company) — Registrant
• Innovative Aerosystems (company) — New trade name adopted October 6, 2025
• US Army (company) — Customer for ThrustSense Autothrottle system
• Pilatus (company) — OEM partner for PC-24
• Textron (company) — OEM partner for King Air 260/360
• Boeing (company) — OEM partner for KC-46A, KC-767, T-7A
• United States Department of Defense (regulator) — Customer for flight solutions and equipment
• Nasdaq Stock Market, LLC (regulator) — Exchange where common stock is registered
• ThrustSense Autothrottle (company) — Company product selected by US Army
• COCKPIT/IP (company) — Company product, Integrated Flight Deck Systems

FAQ

Risk Factors

• Backlog Fluctuation [medium — market]: Backlog decreased to $77.4 million from $89.2 million year-over-year, partly due to the inclusion of $74.3 million in acquired backlog in the prior year. While 44% of current backlog is expected within 12 months, a significant decrease could impact near-term revenue recognition.
• Supply Chain and Production [medium — operational]: As a vertically integrated provider, the company relies on its manufacturing capabilities. Disruptions in the supply chain or production issues could impact the ability to fulfill orders, especially with multi-million dollar contracts from major aerospace companies.
• Government Contracts [medium — regulatory]: The company secures contracts with the US Army and allied foreign militaries. Changes in government spending priorities, defense budgets, or regulatory compliance requirements could adversely affect revenue from these sources.
• OEM Partnership Dependence [medium — market]: The company has expanded OEM partnerships with companies like Pilatus, Textron, and Boeing. A significant loss of business from a key OEM partner could materially impact sales and profitability.
• Cybersecurity Threats [medium — operational]: As a provider of avionics and systems, the company's products and internal systems are potential targets for cybersecurity threats. A breach could lead to intellectual property theft, operational disruptions, or reputational damage.

Industry Context

The avionics market serves commercial air transport, general aviation, and military sectors. Key trends include the integration of advanced digital systems, increasing demand for safety and efficiency features, and the growing importance of cybersecurity. Companies like ISSC compete by offering specialized solutions for both new aircraft (OEM) and retrofitting existing fleets, with a growing emphasis on integrated mission capabilities.

Regulatory Implications

As a supplier to the US Department of Defense and allied militaries, ISSC must adhere to stringent government procurement regulations and quality standards. Changes in defense spending or evolving military requirements could impact contract awards and ongoing business. Cybersecurity regulations are also critical given the nature of avionics systems.

What Investors Should Do

1. Monitor backlog conversion rate.
2. Assess impact of rebranding to Innovative Aerosystems.
3. Track new OEM contract wins and military awards.
4. Evaluate competitive positioning in the avionics market.

Key Dates

• 2024-09-30: Fiscal Year End — Reported net sales of $84.3 million and net income of $15.6 million, representing significant year-over-year growth.
• 2024-09-27: Acquisition Completed — Added $74.3 million in backlog, impacting the prior year's backlog figures.
• 2024-08-01: Multi-million Dollar Production Contract Awarded — Secured a significant contract for its 19" Multifunction Display with Integrated Mission Computer from a major aerospace company.
• 2024-09-01: ThrustSense Autothrottle Deliveries Began — Commenced deliveries of the ThrustSense Autothrottle system for US Army C-12 (B200) aircraft.
• 2025-10-06: Company Rebranded — Changed trade name from Innovative Solutions & Support, Inc. to Innovative Aerosystems, signaling strategic evolution.

Glossary

Avionics

The electronic systems used on aircraft, spacecraft, and satellites. They include communication, navigation, flight control, and display systems. (ISSC designs, develops, manufactures, sells, and services avionics products and systems.)

OEM

Original Equipment Manufacturer. A company that manufactures products based on a design or brand provided by another company. (ISSC expands its OEM partnerships, supplying products to major aerospace companies like Pilatus, Textron, and Boeing.)

Backlog

The total value of orders that have been received but not yet fulfilled. It represents future revenue potential. (The company's backlog decreased to $77.4 million, with 44% expected to be recognized as revenue in the next 12 months.)

Systems Integrator

A company that combines subsystems into a larger system and ensures that those subsystems function together. (ISSC leverages its systems integration capabilities to provide high-performance avionics products and systems.)

ThrustSense Autothrottle

An automated system that controls engine thrust to maintain a desired speed or power setting during flight. (This is a key product for ISSC, selected by the US Army for installation on C-12 (B200) aircraft.)

Multifunction Display (MFD)

A display screen in an aircraft cockpit that can show various types of information, such as navigation, engine data, and weather. (ISSC secured a multi-million dollar contract for its 19" MFD with Integrated Mission Computer.)

Year-Over-Year Comparison

Fiscal year 2025 demonstrated exceptional performance for ISSC, with net sales nearly doubling to $84.3 million and net income more than doubling to $15.6 million, a significant acceleration from FY2024. This growth was fueled by key contract wins and product deployments. However, the company's backlog saw a decrease, partly due to the prior year's acquisition, which investors should monitor for future revenue implications. No new significant risks were highlighted in the provided text, but existing operational and market risks remain relevant.

Key Financial Figures

• $84.3 m — mber 30, 2025, we reported net sales of $84.3 million, an increase of 78.6% on a year-o
• $47.2 million — of 78.6% on a year-over-year basis from $47.2 million in the fiscal year ended September 30,
• $15.6 m — d September 30, 2024, and net income of $15.6 million, an increase of 123.3% on a year-
• $7.0 million — f 123.3% on a year-over-year basis from $7.0 million in the fiscal year ended September 30,
• $77.4 million — At September 30, 2025, our backlog was $77.4 million compared with $89.2 million at Septembe
• $89.2 million — backlog was $77.4 million compared with $89.2 million at September 30, 2024. Backlog at Septe
• $74.3 million — Backlog at September 30, 2024 included $74.3 million of acquired backlog as a result of the

Filing Documents

• issc-20250930x10k.htm (10-K) — 2340KB
• issc-20250930xex4d1.htm (EX-4.1) — 14KB
• issc-20250930xex21.htm (EX-21) — 2KB
• issc-20250930xex23d1.htm (EX-23.1) — 5KB
• issc-20250930xex31d1.htm (EX-31.1) — 13KB
• issc-20250930xex31d2.htm (EX-31.2) — 13KB
• issc-20250930xex32d1.htm (EX-32.1) — 9KB
• 0001104659-25-123847.txt ( ) — 11806KB
• issc-20250930.xsd (EX-101.SCH) — 74KB
• issc-20250930_cal.xml (EX-101.CAL) — 83KB
• issc-20250930_def.xml (EX-101.DEF) — 374KB
• issc-20250930_lab.xml (EX-101.LAB) — 721KB
• issc-20250930_pre.xml (EX-101.PRE) — 605KB
• issc-20250930x10k_htm.xml (XML) — 2202KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 13 Item 1B. Unresolved Staff Comments 28 Item 1C. Cybersecurity 28 Item 2.

Properties

Properties 29 Item 3.

Legal Proceedings

Legal Proceedings 29 Item 4. Mine Safety Disclosures 29 PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29 Item 6. Selected Consolidated Financial Data 30 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 41 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 41 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 79 Item 9A.

Controls and Procedures

Controls and Procedures 79 Item 9B. Other Information 80 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 80 PART III Item 10. Directors, Executive Officers and Corporate Governance 80 Item 11.

Executive Compensation

Executive Compensation 80 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 80 Item 13. Certain Relationships and Related Transactions and Director Independence 81 Item 14. Principal Accounting Fees and Services 81 PART IV Item 15. Exhibits and Financial Statement Schedules 82 Item 16. Form 10-K Summary 85 1 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements are based largely on current expectations and projections about future events and trends affecting the business, are not guarantees of future performance, and involve a number of risks, uncertainties and assumptions that are difficult to predict. In this Annual Report on Form 10-K, the words "anticipates," "believes," "may," "will," "estimates," "continues," "anticipates," "intends," "forecasts," "expects," "plans," "could," "should," "would," "is likely,"" projected," "might," "potential," "preliminary," "provisionally," and similar expressions, as they relate to the business or to its management, are intended to identify forward looking statements, but they are not exclusive means of identifying them. Unless the context otherwise requires, all references herein to "IA," the "Registrant," the "Company," "we," "us" or "our" are to Innovative Solutions and Support, Inc. and its consolidated subsidiaries. ThrustSense and COCKPIT/IP, among others, are trademarks of the Company. All other trademarks appearing herein are held by their respective owners. Subsequent use of the Company's trademarks in this Annual Report on Form 10-K may occur without the applicable superscript symbol ( or TM) in order to facilitate the readability of this Annual Report on Form 10-K and are not a waiver of rights that may be associated with the relevant trademarks. The forward-looking statements in this Annual Report on Form 10-K are only predictions, and actual events or results may differ materially. In evaluating such statements, a number of risks, uncertainties and other factors could cause actual results, performance, financial condition, cash flows, prospects and opportu

Business

Item 1. Business . INTRODUCTION As used in this Annual Report on Form 10-K, unless expressly stated otherwise or the context otherwise requires, the terms "IA" or "the Company", "we", "us" and "our", refers to Innovative Solutions & Support, Inc. dba Innovative Aerosystems and its subsidiaries. Incorporated in Pennsylvania in 1988, IA is a vertically integrated provider of flight solutions and equipment to commercial air transport, general aviation markets, the United States Department of Defense ("DoD") and allied foreign militaries. On October 6, 2025, the Company rebranded and adopted our new trade name, Innovative Aerosystems. We operate in one business segment that designs, develops, manufactures, sells and services avionics products and systems for retrofit applications and Original Equipment Manufacturers ("OEMs"). In the fiscal year ended September 30, 2025, we reported net sales of $84.3 million, an increase of 78.6% on a year-over-year basis from $47.2 million in the fiscal year ended September 30, 2024, and net income of $15.6 million, an increase of 123.3% on a year-over-year basis from $7.0 million in the fiscal year ended September 30, 2024. At September 30, 2025, our backlog was $77.4 million compared with $89.2 million at September 30, 2024. Backlog at September 30, 2024 included $74.3 million of acquired backlog as a result of the September 27, 2024 acquisition. Backlog is converted into sales in future periods as work is performed or deliveries are made. Our backlog does not include additional future orders that may be received under our current OEM contracts. We expect to recognize approximately 44 % of our backlog over the next 12 months and approximately 92% over the next 24 months as revenue, with the remainder recognized thereafter. During the fiscal year ended September 30, 2025, we made important progress on our commercial growth strategy, highlighted by several key awards and contract wins across our commercial, military and b

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