Innovative Solutions & Support, Inc. (Nasdaq: ISSC) (“IS&S” or the “Company”), a premier provider of cutting-edge avionics solutions for commercial, business aviation, and military markets, has announced its financial results for the three-month and twelve-month periods ending September 30, 2024.
Fourth Quarter 2024 Highlights
(All comparisons versus the prior-year period unless otherwise noted)
- Net Revenue: $15.4 million, an increase of 18.4% compared to the same quarter last year.
- Gross Profit: $8.5 million, with a gross margin of 55.4%.
- Net Income: $3.2 million, or $0.18 per diluted share.
- Adjusted EBITDA: $5.6 million, up 16.9% from the comparable quarter last year.
- Leverage Ratio: Net debt to trailing twelve-month Adjusted EBITDA was 2.0x as of September 30, 2024.
Full-Year 2024 Highlights
(All comparisons versus the prior-year period unless otherwise noted)
- Net Revenue: $47.2 million, an increase of 35.6% compared to the prior year.
- Gross Profit: $25.9 million, with a gross margin of 54.9%.
- Net Income: $7.0 million, or $0.40 per diluted share.
- Adjusted EBITDA: $13.7 million, up 42.5% from the prior year.
Management Commentary
Shahram Askarpour, Chief Executive Officer of IS&S, remarked:
“IS&S continues to build a cutting-edge avionics business, delivering high-value solutions to commercial air transport, business aviation, and military customers. Our unique product offerings and systems integration expertise make us a preferred partner for fleet modernization and retrofit markets. Our in-house design, manufacturing, installation, and support capabilities ensure our customers receive safe, compliant, and cost-effective solutions that enhance aircraft safety, compliance, and mission readiness.”
Askarpour highlighted FY 2024 as a transformative year for IS&S, noting:
- Significant Growth: The company achieved substantial year-over-year increases in revenue, net income, and EBITDA.
- Autonomous Flight Initiatives: The integration of platforms acquired from Honeywell has bolstered IS&S’s progress toward fully autonomous flights, adding critical technologies to its portfolio.
“Looking ahead to FY 2025, we are well-positioned for another year of profitable growth,” he added.
Fourth Quarter Performance
“During the fourth quarter, we delivered over 18% revenue growth year-over-year, driven by strong demand in military programs and recently acquired product lines. Orders from the U.S. Department of Defense and allied foreign militaries underscore the increasing demand across our military end-markets,” Askarpour noted.
Product Development and Innovation
“New product development remains a top strategic priority. In 2025, we plan to launch the next-generation Utility Management System (UMS2), an AI-capable monitoring and control system featuring integrated neural network capabilities. This platform-agnostic system will enhance cockpit automation and crew efficiency, offering significant growth potential in the aviation market over the coming years,” he continued.
Capital Allocation Strategy
Jeffrey DiGiovanni, Chief Financial Officer of IS&S, commented:
“In FY 2024, we prioritized efficient free cash flow generation and strategic investments to support growth. Over the past 18 months, we completed two product line acquisitions from Honeywell, reduced net leverage, and enhanced our liquidity profile. Increasing our credit facility to $35 million in September has provided additional flexibility for ongoing operations and facility expansion.