Innovative Solutions & Support Q4 revenue beats estimates, partly helped by military programs

Innovative Solutions and Support

18/12/2025 14:13

Overview

Avionic solutions provider's fiscal Q4 revenue rose 44.6%, beating analyst expectations

Adjusted EBITDA for fiscal Q4 increased 71.1%, driven by favorable sales mix

Company unveiled Liberty Flight Deck, expected to drive future growth

Outlook

Company targets $250 mln revenue and 25-30% adjusted EBITDA margin by fiscal 2029

Company anticipates profitable growth in fiscal 2026 due to recent investments

Liberty Flight Deck expected to drive growth across multiple aircraft types

Result Drivers

MILITARY PROGRAMS - Revenue growth driven by momentum in military programs and synergies from Honeywell acquisitions

SALES MIX - Favorable sales mix contributed to higher gross margins and improved operating leverage

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Total Net Sales
Beat
$22.2 mln
$18.09 mln (4 Analysts)
Q4 EPS
$0.39
Q4 Net Income
$7.1 mln
Q4 Gross Profit
$14.1 mln
Q4 Orders
$27.20 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for Innovative Solutions and Support Inc is $16.25, about 47.9% above its December 17 closing price of $10.99

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBwbpMrMJa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)