Innovative Solutions and Support (NASDAQ:ISSC) Announces Earnings Results, Beats Estimates By $0.11 EPS

Innovative Solutions and Support (NASDAQ:ISSC) posted its quarterly earnings results on Thursday. The aerospace company reported $0.33 EPS for the quarter, topping analysts’ consensus estimates of $0.22 by $0.11, Zacks reports. The business had revenue of $26.73 million during the quarter, compared to the consensus estimate of $23.98 million. Innovative Solutions and Support had a return on equity of 27.52% and a net margin of 18.82%.

Here are the key takeaways from Innovative Solutions and Support’s conference call:

• Positive Sentiment: Third-quarter revenue rose approximately 11% to $26.7 million, while net income increased to $4.5 million, or $0.25 per diluted share. Gross margin expanded to 51.7% from 35.6%, and adjusted EBITDA grew approximately 75% year over year.
• Positive Sentiment: On an apples-to-apples basis excluding the F-16 comparison and acquisitions, organic growth exceeded 40%, led by commercial aftermarket, business aviation and higher service volumes. Management expects fourth-quarter revenue of approximately $28 million to $30 million.
• Positive Sentiment: The acquisition of Aydin Displays expands IA’s rugged-display capabilities and adds exposure to defense, naval, ground, industrial and medical applications. Management said its acquisition pipeline remains active and expects acquired product lines to ultimately support its approximately 50% gross-margin objective.
• Positive Sentiment: IA won its first OEM program based on the Liberty Flight Deck with a Japanese eVTOL developer, supporting an aircraft backlog of more than 400 units. Engineering is expected to begin in fiscal Q4 2026, with initial production targeted for late 2027 and broader production expected in 2028.
• Neutral Sentiment: Free cash flow reached $12.3 million through the first nine months, but net debt rose to $43.8 million after more than $35 million was deployed toward acquisitions and capital expenditures. Management reported 1.4x net leverage and approximately $53.7 million of cash and credit availability, preserving flexibility for further strategic investments.

Innovative Solutions and Support Stock Performance

ISSC stock traded up $2.63 during mid-day trading on Thursday, reaching $22.76. The company had a trading volume of 670,498 shares, compared to its average volume of 281,321. The company has a quick ratio of 1.53, a current ratio of 3.23 and a debt-to-equity ratio of 0.68. The stock has a market capitalization of $407.18 million, a P/E ratio of 24.21 and a beta of 0.59. Innovative Solutions and Support has a one year low of $8.13 and a one year high of $30.94. The stock’s 50-day simple moving average is $18.50 and its two-hundred day simple moving average is $20.82.

Institutional Trading of Innovative Solutions and Support

A number of large investors have recently modified their holdings of the company. Stifel Financial Corp bought a new stake in shares of Innovative Solutions and Support during the fourth quarter valued at approximately $5,529,000. Marshall Wace LLP grew its holdings in Innovative Solutions and Support by 57.4% in the 4th quarter. Marshall Wace LLP now owns 754,488 shares of the aerospace company’s stock worth $14,290,000 after buying an additional 275,286 shares in the last quarter. Millennium Management LLC grew its holdings in Innovative Solutions and Support by 1,234.9% in the 4th quarter. Millennium Management LLC now owns 280,579 shares of the aerospace company’s stock worth $5,314,000 after buying an additional 259,561 shares in the last quarter. Ancora Advisors LLC acquired a new stake in Innovative Solutions and Support in the 3rd quarter valued at approximately $2,031,000. Finally, Arrowstreet Capital Limited Partnership increased its position in Innovative Solutions and Support by 415.2% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 157,250 shares of the aerospace company’s stock valued at $2,183,000 after acquiring an additional 126,729 shares during the period. Institutional investors and hedge funds own 28.53% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on ISSC shares. Weiss Ratings downgraded Innovative Solutions and Support from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, June 12th. Zacks Research downgraded Innovative Solutions and Support from a “strong-buy” rating to a “hold” rating in a report on Friday, May 15th. Finally, Wall Street Zen lowered Innovative Solutions and Support from a “buy” rating to a “hold” rating in a research report on Saturday, May 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Innovative Solutions and Support presently has a consensus rating of “Buy” and an average price target of $16.25.

Innovative Solutions and Support Company Profile

Innovative Solutions and Support, Inc (NASDAQ: ISSC) is a provider of technology solutions and mission support services to U.S. federal government agencies, with a focus on defense, intelligence, and national security programs. The company delivers integrated program management, systems engineering, and advanced IT infrastructure support designed to enhance operational readiness and maintain secure, scalable environments for mission-critical operations.

Its core service offerings include systems integration, custom software development, data analytics, cybersecurity, and logistics management.