Innovative Solutions And Support Inc Dossier
Qualitative Analysis
Business overview
Innovative Solutions & Support, Inc., doing business as Innovative Aerosystems ("IA") (NASDAQ: ISSC), is a leading systems integrator specializing in the design, development, manufacture, and supply of advanced flight guidance, autothrottle, and cockpit display systems. Headquartered in Exton, Pennsylvania, the company serves commercial transport, military, and business aviation markets globally, catering to both original equipment manufacturers (OEMs) and aftermarket retrofit services. Its extensive product portfolio includes integrated NextGen avionics suites, flight management systems, flat panel primary and flight navigational displays, autothrottles, engine instrument displays, mission computers, and precise air data instruments. Supported by a robust portfolio of patents and high aircraft certification standards, IA is at the forefront of meeting the aerospace industry's demand for sophisticated, cost-effective, and technologically advanced products.
Research as of 20 Jun 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
Rebranded the company from Innovative Solutions & Support, Inc. to Innovative Aerosystems (IA) in October 2025 to reflect its focus on integrating advanced avionics with intelligent system designs.
Expected impact: Aims to drive the company toward its long-term target of $250 million in annual revenue and Adjusted EBITDA margins of 25% to 30%.
Expanded the Exton manufacturing facility by adding 40,000 square feet of capacity, bringing the total footprint to 85,000 square feet.
Expected impact: Increases manufacturing capacity by more than 300% (three-fold) to support commercial growth, defense contracts, and the integration of acquired Honeywell and Moog product lines.
Completed the integration of the NetSuite ERP system to build a data-centric culture of efficiency and automate business processes.
Expected impact: Improves operating leverage, helping to scale the business efficiently and reduce operating expenses as a percentage of sales.
Mergers, Acquisitions & Partnerships
Recent deals and strategic collaborations
Recent Acquisitions
Acquisition of assets and licensing rights related to Honeywell's autopilot and avionic systems to expand the company's flight controls portfolio and integrated cockpit avionics platform.
Financial impact: Added $18.1 million in intangible assets and $3.8 million in goodwill; expected to contribute to the projected $10 million combined annual revenue from recent deals.
Acquired an exclusive license to manufacture, upgrade, and repair various generations of military Display Generators and Flight Control Computers from Honeywell, strengthening the company's position in the global military aviation market.
Financial impact: Significantly expanded military capabilities and contributed to the growth of defense-related revenues.
Acquisition of the S-TEC Model 3100 general aviation fixed-wing autopilot product line from Moog to expand integrated flight control capabilities and strengthen the advanced avionics portfolio.
Financial impact: Added $1.89 million in intangible assets and $3.81 million in goodwill; expected to support recurring aftermarket revenue.
Strategic Partnerships
Critical strategic partnership involving multiple licensing agreements (including Communication/Navigation lines in July 2024 and Display Generators in October 2024) that allow IA to manufacture, upgrade, and repair legacy Honeywell products.
Terms: Structured as asset purchases and exclusive licensing agreements funded through PNC Bank credit facilities.