Financial Results Innovative Solutions & Support Announces Q4 and Full-Year 2024 Financial Results
Innovative Solutions & Support, Inc. (Nasdaq: ISSC) (“IS&S” or the “Company”), a leading provider of advanced avionics solutions for the commercial, business aviation, and military markets, has unveiled its financial results for the fourth quarter and full-year periods ending September 30, 2024. The company posted impressive growth across key financial metrics, showcasing its continued success in delivering cutting-edge technologies to diverse aviation sectors.
Fourth Quarter 2024 Financial Performance
For the fourth quarter of 2024, IS&S reported a solid financial performance, with net revenue reaching $15.4 million, representing a year-over-year increase of 18.4%. This growth was driven by robust demand across military programs and the integration of recently acquired product lines.
The company’s gross profit for the quarter was $8.5 million, reflecting a healthy gross margin of 55.4%. Net income for the period totaled $3.2 million, or $0.18 per diluted share. Additionally, IS&S delivered strong operational results, with Adjusted EBITDA reaching $5.6 million, up 16.9% from the same period financial results last year.
From a leverage standpoint, IS&S demonstrated financial strength, with a net debt to trailing twelve-month Adjusted EBITDA ratio of 2.0x as of September 30, 2024. This marks a continued trend of improving financial health and operational efficiency.
Full-Year 2024 Financial Results
For the full year ending September 30, 2024, IS&S achieved impressive growth across key financial metrics. Net revenue surged to $47.2 million, an increase of 35.6% compared to the prior year. The company’s gross profit totaled $25.9 million, with a gross margin of 54.9%.
Net income for the year was $7.0 million, or $0.40 per diluted share, reflecting strong profitability. The company’s Adjusted EBITDA for the year was $13.7 million, an increase of 42.5% from the previous year, underscoring the effectiveness of IS&S’s growth Financial Results strategy and operational initiatives.
Management’s Insight on FY 2024 Performance
Shahram Askarpour, Chief Executive Officer of IS&S, expressed his satisfaction with the company’s performance during FY 2024 financial results: “IS&S continues to build a cutting-edge avionics business, delivering high-value solutions to commercial air transport, business aviation, and military customers. Our ability to integrate advanced systems and offer turnkey solutions makes us a preferred partner in the fleet modernization and retrofit markets.”
Askarpour highlighted the significance of FY Financial Results 2024, noting that the year was transformative for IS&S. He emphasized the company’s significant year-over-year growth in revenue, net income, and EBITDA, which have positioned IS&S for continued success. Furthermore, Askarpour noted the strategic impact of the company’s acquisitions, particularly its integration of platforms from Honeywell, which have advanced IS&S’s autonomous flight initiatives.
Looking ahead, Askarpour expressed confidence in the company’s future prospects: “With our growing portfolio of advanced technologies and a solid pipeline of projects, we are well-positioned to achieve another year of profitable growth in FY financial results 2025.”
Strong Q4 Performance Drives Year-End Success
The fourth quarter performance was a key driver of IS&S’s strong full-year results. In particular, the company saw heightened demand from military programs, especially from the U.S. Department of Defense and allied foreign militaries. These orders underscore the growing demand for IS&S’s products and solutions across military end-markets.
“We delivered strong revenue growth in Q4, driven by expanding military contracts and the successful integration of new product lines,” said Askarpour. “This demand reflects the increasing value of our innovative avionics solutions for both commercial and defense customers.”
Product Innovation and Future Plans
Innovation continues to be a central focus for IS&S. The company is committed to developing advanced products that address the evolving needs of the aviation industry. As part of its strategic growth plan, IS&S is set to launch the next-generation Utility Management System (UMS2) in 2025. This AI-capable system, which features integrated neural network capabilities, is designed to enhance cockpit automation and improve crew efficiency.
The UMS2 represents a significant opportunity for IS&S, as it is expected to have wide applications across the aviation sector, offering substantial growth potential in the coming years. Askarpour added, “This new system is a major step forward in enhancing the safety, efficiency, and operational readiness of aviation fleets.”
Capital Allocation Strategy and Financial Outlook
Jeffrey DiGiovanni, Chief Financial Officer of IS&S, provided additional insights into the company’s financial strategy for FY 2024: “We’ve focused on generating strong free cash flow and making strategic investments to support our continued growth. Over the past 18 months, we’ve successfully acquired two product lines from Honeywell, reduced our net leverage, and enhanced our liquidity position.”
To further strengthen its financial flexibility, IS&S increased its credit facility to $35 million in September, providing additional resources for ongoing operations and facility expansion.
With a strong financial foundation and a growing portfolio of innovative products, IS&S is poised for continued success in FY 2025. The company’s focus on autonomous flight initiatives, military programs, and next-generation avionics systems positions it well for sustained growth and market leadership in the years ahead.