Overview

• Avionic solutions provider's fiscal Q1 revenue rose 36.5%, beating analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company completed integration of F-16 component production into Exton facility

Outlook

• Company expects improved manufacturing efficiencies from F-16 production integration

• Innovative Solutions & Support maintains long-term revenue target of $250 mln

• Company anticipates ramp in defense-related revenue in fiscal 2026

Result Drivers

• COMMERCIAL AVIATION DEMAND - Revenue growth driven by increased demand in commercial aviation aftermarket and services

• F-16 PRODUCTION INTEGRATION - Integration of F-16 component production into Exton facility completed, expected to improve efficiencies

• CASH FLOW IMPROVEMENT - Significant increase in free cash flow due to capital-light business model and disciplined financial management

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$21.80 mln	$18.55 mln (5 Analysts)
Q1 Adjusted EPS	Beat	$0.25	$0.10 (3 Analysts)
Q1 EPS		$0.22
Q1 Net Income		$4.10 mln
Q1 Gross Profit		$11.90 mln
Q1 Orders		$19 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 $24.00, about 26.4% above its February 11 closing price of $18.98

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw99hNPFa

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