olivLaw · US equity research
Innovative Solutions & Support, Inc. (dba Innovative Aerosystems) IA
Services-Computer Programming Services · SIC 7371 · Vertical: Services-Computer Programming Services (SIC 7371)
Innovative Aerosystems (formerly Innovative Solutions & Support, now trading as IA) is a systems integrator of avionics that designs, builds and services cockpit displays, navigation systems and actuators for commercial, business and military aviation. The company is in a phase of accelerated growth through acquisitions and OEM contracts, which makes concentration of customers and its ability to integrate acquired Honeywell assets worth assessing, with net sales reaching 84.3 million USD in fiscal 2025.
At the close of 04 Nov 2026, Innovative Solutions & Support, Inc. (dba Innovative Aerosystems) (IA) stock was 19.76 USD (−7.49% on the day), with market capitalisation 353.7 m USD, P/E 18.8 on diluted EPS of 1.05 USD over the last 12 months, dividend yield 7.59%, beta 1.59, 52-week range 8.32–30.56 USD. Latest reported quarter (Q3 2026): revenue of 26.7 m USD (+10.7% YoY), net income of 4.5 m USD (+83.7% YoY), diluted EPS 0.25 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 48.4
- neutral
- Bollinger (20, 2)
- 18.41 – 21.51
- in the lower half of the band · %B 0.43 · band width 15.5%
- SMA 50 / 200
- 19.39 / 20.57
- mixed trend
- MACD (12, 26, 9)
- 0.43 / 0.36
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +3.3% | −1.1% | +4.4 pp | — |
| 3 months | −4.5% | −0.5% | −4.1 pp | — |
| 6 months | −9.0% | +4.4% | −13.4 pp | — |
| Year to date | +4.3% | +12.3% | −8.0 pp | — |
| 1 year | +123.3% | +13.5% | +109.7 pp | −42.9% |
| 3 years | +169.9% | +76.4% | +93.5 pp | −43.3% |
| 5 years | +172.6% | +63.7% | +108.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 15.4 m | 16.0 m | 21.9 m | 24.1 m | 22.2 m | 21.8 m | 22.4 m | 26.7 m |
| Cost of revenue | 6.9 m | 9.4 m | 10.7 m | 15.6 m | 8.2 m | 9.9 m | 10.9 m | 12.9 m |
| Gross profit | 8.5 m | 6.6 m | 11.3 m | 8.6 m | 14.1 m | 11.9 m | 11.4 m | 13.8 m |
| Research & development | 1.1 m | 1.1 m | 867.2 k | 916.8 k | 1.1 m | 1.3 m | 1.8 m | 1.9 m |
| SG&A | 3.1 m | 4.2 m | 3.4 m | 4.2 m | 4.7 m | 4.3 m | 4.7 m | 5.9 m |
| Operating income | 4.4 m | 1.3 m | 7.0 m | 3.5 m | 8.2 m | 6.3 m | 4.9 m | 6.0 m |
| Depreciation & amortisation | 660.7 k | 1.4 m | 637.6 k ≈ | 820.4 k ≈ | 908.7 k | 1.0 m | 859.7 k ≈ | 1.4 m ≈ |
| Interest expense | 233.0 k | 427.1 k | 387.3 k | 407.5 k | 503.3 k | 496.1 k | 508.9 k | 1.0 m |
| Pre-tax income | 4.1 m | 921.9 k | 6.6 m | 3.1 m | 9.3 m | 5.9 m | 4.4 m | 5.0 m |
| Income tax | 901.7 k | 185.7 k | 1.3 m | 667.7 k | 2.2 m | 1.8 m | 1.0 m | 527.8 k |
| Net income | 3.2 m | 736.2 k | 5.3 m | 2.4 m | 7.1 m | 4.1 m | 3.4 m | 4.5 m |
| Diluted EPS | 0.18 ≈ | 0.04 | 0.30 | 0.14 | 0.39 ≈ | 0.22 | 0.19 | 0.25 |
| Operating cash flow | 445.3 k | 1.8 m | 1.3 m ≈ | 7.2 m ≈ | 3.0 m | 8.2 m | 2.3 m ≈ | 5.1 m ≈ |
| Capex | 145.9 k | 261.4 k | 1.6 m ≈ | 3.7 m ≈ | 1.0 m | 1.1 m | 1.6 m ≈ | 475.5 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 30 percentile of its own 33-quarter history (min 9.7, median 22.4, max 255.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 13.9 m | 17.6 m | 21.6 m | 23.0 m | 27.7 m | 34.8 m | 47.2 m | 84.3 m |
| Revenue YoY | −17.5% | +26.9% | +22.9% | +6.7% | +20.4% | +25.5% | +35.6% | +78.6% |
| Net income | -3.7 m | 1.9 m | 3.3 m | 5.1 m | 5.5 m | 6.0 m | 7.0 m | 15.6 m |
| Net income YoY | −180.0% | unavailable | +76.7% | +54.9% | +9.1% | +9.1% | +16.1% | +123.3% |
| Diluted EPS | -0.22 | 0.11 | 0.19 | 0.29 | 0.32 | 0.35 | 0.40 | 0.88 |
| Diluted EPS YoY | −181.5% | unavailable | +72.7% | +52.6% | +10.3% | +9.4% | +14.3% | +120.0% |
| net % | -26.4% | 10.5% | 15.1% | 22.0% | 19.9% | 17.3% | 14.8% | 18.5% |
| Free cash flow | -4.3 m | 2.0 m | 4.3 m | 4.3 m | 5.9 m | 1.8 m | 5.1 m | 6.8 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 30 Sept 2025
- Cash
- 2.7 m USD
- Financial debt
- 24.1 m USD
- Net debt
- 21.4 m USD
- Equity
- 64.6 m USD
- Total assets
- 103.4 m USD
- Debt / equity
- 0.37x
- Current ratio
- 3.04x
- ROE
- 28.1%
- ROA
- 16.8%
- FCF margin
- 8.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 21.6 m | 23.0 m | 27.7 m | 34.8 m | 47.2 m | 84.3 m | SEC (XBRL)· 23 Dec 2025verified |
| Cost of revenue | 9.8 m | 10.3 m | 11.1 m | 13.5 m | 21.3 m | 43.8 m | SEC (XBRL)· 23 Dec 2025verified |
| Gross profit | 11.8 m | 12.8 m | 16.7 m | 21.3 m | 25.9 m | 40.5 m | SEC (XBRL)· 23 Dec 2025verified |
| Research & development | 3.0 m | 2.6 m | 2.7 m | 3.1 m | 4.1 m | 4.0 m | SEC (XBRL)· 23 Dec 2025verified |
| SG&A | 6.1 m | 6.3 m | 6.8 m | 10.8 m | 12.1 m | 16.4 m | SEC (XBRL)· 23 Dec 2025verified |
| Operating income | 2.7 m | 3.9 m | 7.2 m | 7.4 m | 9.7 m | 20.1 m | SEC (XBRL)· 23 Dec 2025verified |
| Depreciation & amortisation | 432.2 k | 432.2 k | 368.5 k | 697.9 k | 2.1 m | 3.7 m | SEC (XBRL)· 23 Dec 2025verified |
| EBITDA | 3.2 m ≈ | 4.3 m ≈ | 7.6 m ≈ | 8.1 m ≈ | 11.8 m ≈ | 23.8 m ≈ | SEC (XBRL)· 23 Dec 2025derived |
| Interest expense | — | — | — | 393.3 k | 937.3 k | 1.7 m | SEC (XBRL)· 23 Dec 2025verified |
| Pre-tax income | 3.0 m | 4.0 m | 7.3 m | 7.6 m | 8.9 m | 20.0 m | SEC (XBRL)· 23 Dec 2025verified |
| Income tax | -1.1 m | -1.1 m | 1.8 m | 1.6 m | 1.9 m | 4.3 m | SEC (XBRL)· 23 Dec 2025verified |
| Net income | 3.3 m | 5.1 m | 5.5 m | 6.0 m | 7.0 m | 15.6 m | SEC (XBRL)· 23 Dec 2025verified |
| Diluted EPS | 0.19 | 0.29 | 0.32 | 0.35 | 0.40 | 0.88 | SEC (XBRL)· 23 Dec 2025verified |
| Weighted average diluted shares | 17.1 m | 17.2 m | 17.3 m | 17.4 m | 17.5 m | 17.8 m | SEC (XBRL)· 23 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 12.6 m | 8.3 m | 17.3 m | 3.1 m | 539.0 k | 2.7 m | SEC (XBRL)· 23 Dec 2025verified |
| Receivables | 4.4 m | 4.0 m | 4.3 m | 9.7 m | 12.6 m | 13.0 m | SEC (XBRL)· 23 Dec 2025verified |
| Inventories | 4.3 m | 4.5 m | 5.3 m | 6.1 m | 12.7 m | 25.8 m | SEC (XBRL)· 23 Dec 2025verified |
| Current assets | 33.1 m | 17.7 m | 28.2 m | 34.7 m | 34.7 m | 50.7 m | SEC (XBRL)· 23 Dec 2025verified |
| Property, plant & equipment, net | 8.2 m | 8.1 m | 6.3 m | 7.9 m | 13.4 m | 18.8 m | SEC (XBRL)· 23 Dec 2025verified |
| Goodwill | — | — | — | 3.6 m | 5.2 m | 6.7 m | SEC (XBRL)· 23 Dec 2025verified |
| Intangibles (excl. goodwill) | 112.9 k | 62.5 k | 60.3 k | 16.2 m | 27.0 m | 23.6 m | SEC (XBRL)· 23 Dec 2025verified |
| Total assets | 41.5 m | 27.1 m | 34.7 m | 63.0 m | 82.4 m | 103.4 m | SEC (XBRL)· 23 Dec 2025verified |
| Accounts payable | 790.9 k | 623.6 k | 708.8 k | 1.3 m | 2.3 m | 3.6 m | SEC (XBRL)· 23 Dec 2025verified |
| Short-term debt | — | — | — | 2.0 m | — | 2.4 m | SEC (XBRL)· 23 Dec 2025verified |
| Long-term debt | — | — | — | 17.5 m | 28.0 m | 21.7 m | SEC (XBRL)· 23 Dec 2025verified |
| Current liabilities | 13.6 m | 2.5 m | 3.9 m | 6.4 m | 7.3 m | 16.7 m | SEC (XBRL)· 23 Dec 2025verified |
| Total liabilities | 13.8 m | 2.5 m | 4.0 m | 24.3 m | 35.7 m | 38.8 m | SEC (XBRL)· 23 Dec 2025verified |
| Equity | 27.8 m † | 24.6 m † | 30.7 m † | 38.6 m † | 46.6 m † | 64.6 m † | SEC (XBRL)· 23 Dec 2025verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 4.6 m | 4.6 m | 6.1 m | 2.1 m | 5.8 m | 13.3 m | SEC (XBRL)· 23 Dec 2025verified |
| Capex | 340.7 k | 340.7 k | 161.2 k | 298.4 k | 657.8 k | 6.5 m | SEC (XBRL)· 23 Dec 2025verified |
| Free cash flow | 4.3 m ≈ | 4.3 m ≈ | 5.9 m ≈ | 1.8 m ≈ | 5.1 m ≈ | 6.8 m ≈ | SEC (XBRL)· 23 Dec 2025derived |
| Investing cash flow | -340.7 k | -340.7 k | 2.6 m | -36.2 m | -16.9 m | -6.5 m | SEC (XBRL)· 23 Dec 2025verified |
| Financing cash flow | -19.8 m | -19.8 m | 301.2 k | 19.9 m | 8.5 m | -4.6 m | SEC (XBRL)· 23 Dec 2025verified |
| Dividends paid | 19.8 m | 19.8 m | — | — | — | — | SEC (XBRL)· 22 Dec 2021verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 67 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 353.7 m USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet58
- Quality61
- Valuation52
- Growth96
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.00 – 23.40 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)13.75 – 23.40 (Mid 17.41)WACC 8.7% · starting FCFF 16.2 m USD · terminal value share of EV 76%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 20.4%
- Peers: EV/Sales0.00 – 3.42 (Mid 0.54)9 companies used · median multiple 0.6x · quartiles 0.4x – 1.1xCINT, CTSH, DOX, EPAM, FORTY, MWC, RDNW, WIT, XTIA
- Peers: EV/EBITDA0.00 – 8.18 (Mid 2.91)6 companies used · median multiple 3.2x · quartiles 1.4x – 6.4xCINT, CTSH, EPAM, MWC, RDNW, WIT
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 67/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 54.9% | 37 (on a fixed band) | 11% |
| EBIT margin · Quality | 27.4% | 90 (vs peers) | 9% |
| FCF margin · Quality | 15.3% | 61 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 44.8% | 100 (on a fixed band) | 18% |
| Revenue growth (YoY) · Growth | 78.6% | 87 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | 1.5x | 17 (vs peers) | 7% |
| Current ratio · Balance sheet | 3.0x | 100 (on a fixed band) | 7% |
| EV/Sales · Valuation | 4.3x | 31 (vs peers) | 18% |
| FCF yield · Valuation | 4.0% | 81 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet58/100 · 2/2 factors with a value
- Growth96/100 · 2/2 factors with a value
- Quality61/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/1 factors with a value
- Valuation52/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
INNOVATIVE SOLUTIONS AND SUPPORT, INC. (IA). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 84.3 m USD in 2025; YoY growth 78.6%; net margin 20.5%; ROE 28.5%; net debt/EBITDA 1.5x.
The estimated value range is 0.00–8.18 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 2.91 USD, the price of 19.76 USD leaves a potential of -85.3% (value / price − 1) and a margin of safety of -578.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 67/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EBIT margin: 27.4%
- Revenue CAGR 3Y: 44.8%
- Revenue growth (YoY): 78.6%
- Current ratio: 3.0x
- FCF yield: 4.0%
What contradicts it
- Net debt / EBITDA: 1.5x
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Shareholder yield (distributions).
Versus the vertical median
Services-Computer Programming Services (SIC 7371) · same industry (4-digit SIC) · compared with 32 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| INFYInfosys Limited | 49.6 bn | 16.1 | 29.0% | 16.4% | +3.9% | −30% / −30% |
| ZSZscaler Inc | 36.6 bn | — | -2.9% | -1.9% | +25.4% | −11% / +14% |
| CTSHCognizant Technology Solutions Corporation | 29.4 bn | 12.0 | 17.4% | 11.8% | +7.0% | −15% / −7% |
| VRSNVerisign Inc | 28.5 bn | 33.6 | — | 49.1% | +6.4% | +26% / +50% |
| WITWipro Limited | 22.7 bn | 15.4 | 16.4% | 14.7% | −3.2% | −21% / −11% |
| EPAMEpam Systems, Inc. | 7.1 bn | 18.6 | 11.2% | 7.2% | +15.4% | −27% / −47% |
| DOCSDoximity, Inc. | 6.2 bn | 40.9 | 17.2% | 25.5% | +13.1% | −33% / +49% |
| DOXAmdocs Limited | 4.9 bn | 10.3 | 14.1% | 9.9% | +2.4% | −43% / −48% |
| RGTIRigetti Computing, Inc. | 3.7 bn | — | -43.8% | -1,787.4% | −34.3% | −56% / +958% |
| FORTYFormula Systems (1985) Ltd. | 1.8 bn | 23.4 | 12.2% | 2.9% | +5.2% | −20% / +96% |
| MGRTMega Fortune Co Ltd | 1.6 bn | 698.9 | 21.1% | 16.1% | +233.3% | +1,864% / unavailable |
| PERIPerion Network Ltd. | 446.8 m | — | -1.1% | -1.8% | −11.7% | +12% / −59% |
| MFImF International Limited | 367.8 m | 36.4 | 3.9% | 232.8% | +29.4% | −68% / unavailable |
| IAInnovative Solutions And Support, Inc. | 353.7 m | 18.8 | 28.5% | 20.5% | +78.6% | +123% / +170% |
| GDEVGDEV Inc. | 176.1 m | 2.6 | — | 17.1% | −3.9% | −44% / −57% |
| ATGLAlpha Technology Group Ltd | 146.5 m | — | -184.7% | -952.0% | −40.2% | −61% / −39% |
| MLGOMicroAlgo Inc. | 135.7 m | 1.2 | 7.6% | 30.2% | −20.3% | −61% / −100% |
| MWCMicware Co., Ltd. | 82.0 m | 8.1 | 20.0% | 7.3% | unavailable | unavailable / unavailable |
| PDCPerpetuals.com Ltd | 74.9 m | — | -75.8% | -1,069.9% | −47.0% | −61% / −13% |
| CINTCI&T Inc | 73.8 m | 10.3 | 13.8% | 8.3% | +11.5% | −31% / −40% |
| CYCUCycurion, Inc. | 65.1 m | — | -76.7% | -98.0% | −14.8% | −91% / unavailable |
| XTIAXti Aerospace, Inc. | 37.7 m | — | — | -89.6% | +602.4% | −40% / −100% |
| MNDOMind Cti Ltd | 18.3 m | 6.9 | 11.0% | 13.4% | −9.3% | −24% / −53% |
| CHGAChange Agents Corporation | 17.8 m | — | -606.9% | -643.1% | +6.2% | −97% / −99% |
| RDNWRideNow Group, Inc. | 11.7 m | — | — | -0.8% | −10.5% | +7% / −9% |
1- and 3-year price returns: for IA from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 13.10 Total return -34% · Per year -34% | 23.06 Total return 17% · Per year 17% | 34.59 Total return 75% · Per year 75% |
| 3 years | 15.54 Total return -21% · Per year -8% | 30.50 Total return 54% · Per year 16% | 49.81 Total return 152% · Per year 36% |
| 5 years | 18.44 Total return -7% · Per year -1% | 40.34 Total return 104% · Per year 15% | 71.73 Total return 263% · Per year 29% |
- Exit P/E± 7.62
- Net margin± 5.34
- Annual revenue growth± 3.98
- Annual dilution± 0.45
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Innovative Aerosystems (formerly Innovative Solutions & Support, now trading as IA) is a systems integrator of avionics that designs, builds and services cockpit displays, navigation systems and actuators for commercial, business and military aviation. The company is in a phase of accelerated growth through acquisitions and OEM contracts, which makes concentration of customers and its ability to integrate acquired Honeywell assets worth assessing, with net sales reaching 84.3 million USD in fiscal 2025 1.
SWOT
Strengths
- The company holds a substantial patent portfolio and solid systems integration experience, letting it offer complete solutions to customers 1.
- Long-standing relationships with OEM and military customers create recurring contracts and a fairly predictable revenue base 1.
- Recent growth in free cash flow and a leverage ratio reported against EBITDA point to a solid funding capacity 23.
Weaknesses
- Revenue is concentrated in a few large customers, especially Lockheed Martin, which exposes the company to changes in programmes 1.
- Margins and revenue have fluctuated significantly from quarter to quarter, and the military production transfer added variations that are hard to predict 1.
- Net debt has risen after acquisitions, and the company relies on its credit line to fund investment 3.
Opportunities
- Integrating recent acquisitions, including Aydin Displays, could extend the offer into naval and ground defence 3.
- The first production award for the Liberty Flight Deck platform, tied to an eVTOL developer, could open new markets in emerging aviation 3.
- Demand for cockpit automation and autonomy could support growth of next-generation products 1.
Threats
Risks
- Customer concentrationhigh
Dependence on a small number of large customers could seriously affect revenue if a major programme is delayed or terminated 1.
- Acquisition integrationhigh
Integrating the Honeywell product lines and Aydin Displays could generate unexpected costs or the loss of key personnel 13.
- Revenue volatilitymedium
Quarterly revenue varies significantly, and the production transition could produce peaks and dips that are hard to anticipate 12.
- Indebtedness and fundingmedium
Total debt and the credit line could limit financial flexibility if cash flow declines 3.
- Certification and compliancemedium
Delays in obtaining regulatory approvals for new products could postpone receipts and could lead to sanctions 1.
Investment thesis
What would need to be true (bull case)
- If revenue growth from products and services continues and margins hold up, the company could reach its long-term annual revenue objective 3.
- Recent acquisitions and new contracts, including for the Liberty Flight Deck platform, could widen the customer base and diversify revenue 3.
- Improving free cash flow could support investment and debt reduction without limiting the growth strategy 3.
What would break the thesis
- If a major customer reduces orders, revenue could fall quickly given the current concentration of the customer base 1.
- Integration of acquisitions could prove harder than expected, which could reduce synergies and affect margins 13.
- Rising net debt could limit the company's ability to finance further acquisitions if the market weakens 3.
What to watch
- Revenue and gross margin trend after the Aydin Displays integrationQ4 2026
- Status of military production transferred from Honeywell to Extonfiscal 2027
- Backlog level and new orders relative to quarterly revenueQ4 2026
- Trend in the ratio of net debt to trailing adjusted EBITDAnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Founded in Pennsylvania in 1988, the company describes itself as a vertically integrated provider of flight solutions and equipment for commercial air transport, general aviation, the US Department of Defense and allied militaries 1. It operates in one segment that designs, develops, manufactures and sells avionics for retrofit applications and original equipment manufacturers 1. It rebranded as Innovative Aerosystems on October 6, 2025 1.
The product portfolio has five categories: integrated cockpit systems COCKPIT/IP, navigation systems, communication systems, sensors and control systems, and advanced flight actuators 1. The model combines in-house design and manufacture with third-party technologies, and the company reported 171 US and international patents as of September 30, 2025 1.
Its customer base is concentrated: in fiscal 2025 Lockheed Martin accounted for 36% of revenue, with Pilatus and Boeing the next largest customers at 8% and 5% 1. The company acquired product lines from Honeywell in June 2023, July 2024 and September 2024, and completed the acquisition of Aydin Displays in July 2026 13.
Segments
Market context
The aircraft retrofit market has grown as operators try to extend the life of ageing fleets, and the company says most of its sales have historically come from this segment 1. Military customers and defence contractors are the main retrofit targets, with commercial and business operators adding demand 1. The average age of the global commercial fleet, at 14.8 years in late 2024, supports demand for retrofit equipment 1.
The industry is moving toward cockpits with more information and, over time, greater autonomy, and demand for integrated displays tends to replace analog instruments 1. The market is highly competitive, and the ability to obtain certifications and meet changing standards can condition access to new markets 1.
Trends
- Ageing fleets needing modernisationtailwind
Older aircraft need more modern avionics for safety and compliance, which could sustain demand for retrofit products 1.
- Replacement of analog instruments by integrated displaystailwind
Operators are moving from clusters of mechanical instruments to integrated display systems, a shift that could expand the market for flat panel products 1.
- Supply chain and cost pressureheadwind
Disruptions in the global supply chain and raw material price increases have affected lead times and costs, and tariff changes have added uncertainty 12.
- Dependence on military contracts and Honeywell transitionmixed
Rising military sales and the move of production from Honeywell facilities to Exton may cause short-term revenue swings but also consolidation opportunities 1.
Competitive position
The company says it competes with suppliers of competitive products and with vertically integrated primes, naming Honeywell Aerospace, Collins Aerospace, GE Aerospace, Thales Defense & Security, Elbit Systems and Garmin as principal competitors 1. The main competitive criteria are product quality, reliability, price, engineering capability and delivery timeliness 1.
The advantages it cites are vertical integration, systems integration expertise and retrofit specialisation, and it argues long-term customer relationships lead to recurring contracts 1. Being smaller than many rivals, it could be exposed to price pressure and to new entrants with large financial resources 1.
- Honeywell AerospaceHON
Main competitor named by the company and seller of several product lines IA acquired 1.
- Collins Aerospace
Avionics systems supplier listed among the company's principal competitors 1.
- GE AerospaceGE
Maker of aviation engines and systems, named as a competitor 1.
- GarminGRMN
General aviation avionics maker identified as a competitor in navigation systems 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report (amendment)07 Oct 2026Acquisition or disposition of assets · Financial statements and exhibits
- Current report (amendment)04 Sept 2026Shareholder vote
- Quarterly report13 Aug 2026
- Current report13 Aug 2026Results of operations · Financial statements and exhibits
- Current report21 Jul 2026Material agreement · Acquisition or disposition of assets · Creation of a direct financial obligation · Other events · Financial statements and exhibits
- Quarterly report15 May 2026
- Current report14 May 2026Results of operations · Financial statements and exhibits
- Current report17 Apr 2026Shareholder vote
- Current report02 Apr 2026Material agreement · Acquisition or disposition of assets · Other events · Financial statements and exhibits
- Proxy statement13 Mar 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-09-30 · SEC / Innovative Solutions & Support, Inc. (dba Innovative Aerosystems) · 23 Dec 2025
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Innovative Solutions & Support, Inc. (dba Innovative Aerosystems) · 13 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Innovative Solutions & Support, Inc. (dba Innovative Aerosystems) · 13 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.