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

Reuters
2025/12/18
Innovative Solutions & Support Q4 revenue beats estimates, partly helped by military programs

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)

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