Innovative Solutions and Support
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
Yellow, because the business fundamentally works while one material operating question stays open. In its favor: five consecutive profitable years, revenue up from $23.0 million to $84.3 million, $12.3 million of free cash flow in nine months, customer concentration halved from 52 to 21 percent, and a management team that has beaten its own quarterly guidance three times in a row. Against that stands the central open question of this analysis: the acquired product lines contributed $2.3 million of revenue over nine months against roughly $10 million a year announced, and the company's own pro forma table shows a like-for-like decline of 7.7 percent in revenue and 19.8 percent in net income. Add to that the fact that the record gross margin is a mix effect of a military business that fell $4.9 million and is meant to grow again. Red would be wrong: there is no evidence of a threat to the substance of the company, equity is clearly positive, operating cash flow is solidly positive and the credit facility runs to July 2030. The price — roughly $379 million of market capitalization on August 27, 2026 at a price-to-earnings ratio near 20 — is a price argument, not a quality argument, and does not move the rating. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Innovative Aerosystems is a consistently profitable niche avionics supplier that has almost quadrupled revenue in four years and halved its customer concentration. But the earnings jump in the quarter ended June 30, 2026 rests on a 10.5 percent tax rate, a depressed prior-year quarter and a military business that shrank by $4.9 million; the company's own pro forma table shows a decline on a like-for-like basis. What remains open is whether the acquisitions of the past three years bring the business they promised. Not investment advice.
Growth and profitability
Revenue up from $23.0 million in fiscal 2021 to $84.3 million in fiscal 2025 and net income from $5.1 million to $15.6 million, profitable in each of those five years. The nine months through June 30, 2026 added $70.9 million of revenue and $12.0 million of net income.
Guidance track record
Three quarterly guides beaten in a row: $18m to $20m guided and $21.8m delivered; $20m to $22m guided and $22.4m delivered; $24m to $26m guided and $26.7m delivered (earnings calls of December 18, 2025, February 12, 2026, May 14, 2026 and August 13, 2026). The F-16 dip announced in August 2025 and the recovery that followed also played out as described.
Quality of the earnings jump
Net income for the quarter ended June 30, 2026 rose 83.7 percent while pre-tax income rose only 61.2 percent — the difference comes from an effective tax rate of 10.5 percent instead of 21.5 percent, about three cents per share. The prior-year quarter was depressed by the F-16 production move, and the adjusted figure adds back $1,299,934 as amortization while the filing reports $911,678 for it.
Contribution from acquisitions
The acquired businesses contributed just $2.3 million of net sales in the nine months through June 30, 2026, against roughly $10 million a year announced in May 2026. The pro forma table in the same filing shows $71.0 million instead of $77.0 million of revenue and $10.3 million instead of $12.8 million of net income on a like-for-like basis.
Balance sheet and leverage
Equity of $77.20 million at June 30, 2026, roughly 80 percent of it goodwill and intangible assets. Total debt of $54.5 million against $23.3 million a year earlier, plus $24.5 million for Aydin Displays on July 21, 2026. Set against that: $12.3 million of free cash flow in nine months and a credit facility running to July 2030.
Market position and concentration
Customer concentration has fallen sharply — the largest buyer accounted for 21 percent of net sales in the quarter ended June 30, 2026 against 52 percent a year earlier. The F-16 program still represented 36.7 percent of consolidated net sales in fiscal 2025 and remains the largest program per the annual report.
Worth Noting
Trigger for this analysis: the quarterly report (10-Q) for the period ended June 30, 2026, filed August 13, 2026, together with the earnings release (8-K, Exhibit 99.1) of the same day.
Data basis: annual and quarterly figures come from the annual report (10-K) for fiscal 2025 (filed December 23, 2025) and the quarterly reports for the periods ended December 31, 2025, March 31, 2026 and June 30, 2026. Price, market capitalization and valuation figures are as of August 27, 2026.
Possible confusion: the company has traded under the ticker "IA" since August 18, 2026 and does business as Innovative Aerosystems, but its legal name remains Innovative Solutions and Support, Inc. (CIK 0000836690). Older sources filed under "ISSC" refer to the same entity. There is no connection to the similarly named software firm "Innovative Solutions" or to Aerojet Rocketdyne.
Stock Watch
This analysis is as of August 29, 2026. Stock Watch will tell you what's changed at ISSC since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 8.30 $ to 30.60 $ · Last price: 21.00 $ (As of: August 24, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Aerospace & Defense
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Innovative Solutions and Support ISSC | 0.4 | – | 13.7 | 54.9 | – | 78.6 | 81.1 |
| Space Exploration Technologies Corp. SPCX | 1,172.1 | – | 511.6 | 51.9 | – | – | – |
| GE Aerospace GE | 326.7 | 40.1 | 27.6 | 31.1 | 20.2 | 18.5 | 8.8 |
| RTX Corporation RTX | 254.2 | 36.5 | 18.5 | 20.3 | 13.2 | 9.7 | 24.1 |
| The Boeing Company BA | 155.3 | 78.7 | 25.5 | 4.7 | 1.7 | 34.5 | -8.2 |
| Lockheed Martin Corporation LMT | 124.1 | 26.0 | 13.6 | 11.8 | 11.0 | 5.7 | 16.7 |
| General Dynamics Corporation GD | 96.7 | 22.8 | 15.1 | 15.4 | 10.5 | 10.1 | 11.4 |
| Howmet Aerospace Inc HWM | 90.3 | 52.0 | 34.8 | 36.0 | 28.2 | 11.1 | 22.0 |
| Northrop Grumman Corporation NOC | 73.6 | 16.6 | 11.8 | 20.1 | 11.7 | 2.2 | -7.7 |
| Median of companies shown | 124.1 | 36.5 | 18.5 | 20.3 | 11.7 | 10.6 | 14.0 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 28 | 2 | 2 | 0.12 | 4 | 33 | 36 |
| 2017 | 17 | 0 | 5 | 0.27 | 6 | 38 | 41 |
| 2018 | 14 | -4 | -4 | -0.22 | -2 | 34 | 38 |
| 2019 | 18 | 2 | 2 | 0.11 | 2 | 36 | 39 |
| 2020 | 22 | 3 | 3 | 0.19 | 2 | 28 | 42 |
| 2021 | 23 | 4 | 5 | 0.29 | 5 | 25 | 27 |
| 2022 | 28 | 7 | 6 | 0.32 | 6 | 31 | 35 |
| 2023 | 35 | 7 | 6 | 0.35 | 2 | 39 | 63 |
| 2024 | 47 | 10 | 7 | 0.40 | 6 | 47 | 82 |
| 2025 | 84 | 20 | 16 | 0.88 | 13 | 65 | 103 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.04 | -30.40 | 16 | 71.60 | 4.60 | 2 | 2 |
| 2025: Q1 | 0.30 | 341.70 | 22 | 104.20 | 24.30 | 1 | 0 |
| 2025: Q2 | 0.14 | 57.40 | 24 | 105.20 | 10.10 | 7 | 4 |
| 2025: Q3 | 0.40 | 123.60 | 22 | 44.60 | 32.00 | 3 | 2 |
| 2025: Q4 | 0.23 | 451.50 | 22 | 36.60 | 18.60 | 8 | 7 |
| 2026: Q1 | 0.19 | -35.60 | 22 | 2.00 | 15.40 | 2 | 1 |
| 2026: Q2 | 0.25 | 78.60 | 27 | 10.80 | 16.90 | 5 | 5 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 3 of our scanner strategies — each hit links to the scanner.
Earnings & Surprises
Momentum & Trend
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 09/30/2026 | 1.13 | 1.07 – 1.18 | 97 | 24.8% | 2 |
| 09/30/2027 | 1.03 | 0.98 – 1.09 | 113 | -8.2% | 4 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 11.4% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $14.3M |
|---|---|
| Market cap | $375.0M |
| Free cash flow in year ten | $42.1M |
| Terminal value as a share of market value | 59.1% |
For comparison: over the past five years free cash flow grew by 26.8% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
In den sechs ausgewerteten SEC-Berichten (vier Quartalsberichte, zwei Geschäftsberichte) kommen die Begriffe „artificial intelligence“ und „machine learning“ nicht vor. Das Unternehmen beschreibt nur einen Markttrend zu zunehmend autonomem Fliegen und ein Cockpit, das die Pilotenbelastung senken soll — eine KI-Umsatzquelle, ein operativer KI-Einsatz oder ein KI-Risikofaktor sind in den Berichten nicht belegt.
View the full file — quotes, sources, reviewed filings
Filings Reviewed: 10-Q 2026-08-13 · 10-Q 2026-05-15 · 10-Q 2026-02-13 · 10-Q 2025-08-14 · 10-K 2025-12-23 · 10-K 2024-12-30
Rated on August 28, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 44.8%
- More than 10% revenue growth is expected for the coming year 8.6%
- Share count grows by less than 3% a year 1.1%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 86.7%
- Gross margin at 40% or higher and without meaningful erosion 45.4%
- Goodwill from acquisitions does not grow faster than revenue 6.5%
- Net debt below twice EBITDA 0.8 x EBITDA
- Operating cash flow covers the profits of the last three years -7 m
- Return on capital at 15% or higher, or up versus two years ago 23.2%
- Insiders hold at least 10% or are net buyers 18.6%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
8/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 13.0%
- Exp. sales growth 3Y > 5% 15.6%
- EBIT growth 10Y > 5% 26.4%
- Exp. EBIT growth 3Y > 5% 8.5%
- Net debt < 4x EBIT 1.1x
- EBIT positive, 10Y straight 8
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% 45.5%
- ROCE > 15% 23.1%
- Expected return > 10% 10.5%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
The company
About the Company
Innovative Aerosystems, Inc. befasst sich mit der Konstruktion, Herstellung und Lieferung fortschrittlicher Avioniklösungen.
- Employees
- 147
- Headquarters
- Exton, PA
- Address
- 720 Pennsylvania Drive, 19341-1129 Exton, United States
- Phone
- 610 646 9800
- Website
- iascorp.com
- IPO Date
- 08/04/2000
- ISIN
- US45769N1054
- Stock Split
- 3:2 on 07/08/2005
Management
| Name | Title | Birth Year |
|---|---|---|
| Shahram Askarpour | President, CEO & Director | 1957 |
| Jeffrey DiGiovanni | Chief Financial Officer | 1978 |
| Larry Riddle | VP of Sales & Marketing | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 08/13/2026 INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC): Results of Operations and Financial Condition; Financial Statements and Exhibits SEC ↗
- 07/21/2026 INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC): Entry into a Material Definitive Agreement; Completion of Acquisition or Disposition of Assets; Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant; Other Events; Financial Statements and Exhibits SEC ↗
Data as of: August 24, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.