Innovative Solutions and Support, Inc. Reports Strong Fourth Quarter and Full-Year 2024 Results

Innovative Solutions and Support, Inc. (NASDAQ: ISSC) recently released its financial results for the three and twelve-month periods ending on September 30, 2024. The leading provider of advanced avionic solutions for commercial, business aviation, and military markets showcased substantial growth in various key financial metrics during this period.

For the fourth quarter of 2024, the company reported a net revenue of $15.4 million, marking an 18.4% increase compared to the same quarter in the previous year. Gross profit for the quarter stood at $8.5 million, with a gross margin of 55.4%. Net income was recorded at $3.2 million, translating to $0.18 earnings per diluted share. Adjusted EBITDA for the quarter reached $5.6 million, showing a 16.9% improvement over the previous year.

In terms of full-year highlights for 2024, Innovative Solutions and Support reported a net revenue of $47.2 million, reflecting an impressive 35.6% growth over the prior year. The gross profit for the year amounted to $25.9 million, with a gross margin of 54.9%. Net income for the year totaled $7.0 million, equating to $0.40 earnings per diluted share. The company’s adjusted EBITDA for the year was $13.7 million, marking a notable 42.5% increase over the previous year.

In a statement, Shahram Askarpour, Chief Executive Officer of IS&S, highlighted the company’s strategic focus on providing high-value avionics solutions to its diverse customer base. The successful integration of acquired platforms, particularly those from Honeywell, has propelled Innovative Solutions and Support forward, positioning it as a preferred partner in the aviation market.

Askarpour further emphasized the company’s commitment to innovation and growth, particularly mentioning the upcoming launch of the next-generation Utility Management System, UMS2. The integration of artificial intelligence capabilities into this system is expected to enhance crew efficiency, offering significant growth potential for the company in the coming years.

Jeffrey DiGiovanni, Chief Financial Officer of IS&S, reiterated the focus on disciplined capital allocation aimed at maximizing returns on invested capital. He highlighted the company’s efforts in generating efficient free cash flow and increasing financial flexibility to support growth initiatives.

The company’s performance in the fourth quarter of 2024 showcased substantial revenue growth, driven by new military programs and synergies from acquired product lines. Gross margin improvement was noted, although offset by higher depreciation and amortization expenses resulting from acquisitions.

As of September 30, 2024, IS&S reported total debt of $28.0 million, with net debt standing at $27.5 million. The company’s cash and cash equivalents were $0.5 million, with total cash and available credit line of approximately $7.5 million.

In conclusion, Innovative Solutions and Support, Inc. envisions sustained value creation in the future, supported by its commitment to growth, operational efficiency, and disciplined capital allocation strategies.

The company is slated to host a conference call on Thursday, December 19, 2024, at 5:00 PM ET to discuss these results in further detail.

Please note that this news piece is based on the text of the 8-K SEC filing for Innovative Solutions and Support, Inc. and the attached exhibit 99-1.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Innovative Solutions and Support’s 8K filing here.

Innovative Solutions and Support Company Profile

Innovative Solutions and Support, Inc, a systems integrator, designs, develops, manufactures, sells, and services flight guidance, autothrottles, and cockpit display systems in the United States and internationally. It offers flat panel display systems that replicate the display of analog or digital displays on one screen and replace existing displays in legacy aircraft, as well as used for security monitoring on-board aircraft and as tactical workstations on military aircraft; and flight deck management system, a navigation and performance computer that upgrade for commercial air transport aircraft.