​Wall Street Bullish on Innovative Solutions and Support, Inc. (ISSC) Amid Growing Avionics Opportunities

Innovative Solutions and Support Inc. (NASDAQ:ISSC) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 18, Innovative Aerosystems reported strong fourth‑quarter and full‑year fiscal 2025 results, underscoring solid execution across its commercial, business aviation, and defense programs. Fourth‑quarter revenue rose 44.6% to $22.2 million, supported by higher throughput and contributions from recently acquired Honeywell product lines.

Gross margin improved to 63.2%, and net income more than doubled to $7.1 million. For the full year, revenue climbed 78.6% to $84.3 million, while Adjusted EBITDA increased to $24.8 million. The company ended the year with $21.7 million in net debt and total liquidity of $77.7 million.

Management described fiscal 2025 as a year of meaningful operational progress, driven by investments in manufacturing capacity, engineering, sales, and digital infrastructure. The company completed its rebranding to Innovative Aerosystems and advanced several strategic initiatives, including integrating F‑16 production into its Exton facility and rolling out a new ERP system. A major milestone was the launch of the Liberty Flight Deck, a customizable cockpit platform designed for commercial, cargo, business aviation, and military aircraft, which drew strong interest at its October unveiling.

Looking ahead, the company expects to build on the foundation laid over the past three years. Backlog ended the year at $77.4 million, supported by steady order activity across core programs. Innovative Aerosystems reaffirmed its long‑term goal of reaching $250 million in revenue and a 25–30% Adjusted EBITDA margin by fiscal 2029, supported by both organic growth and targeted acquisitions.

Innovative Solutions and Support, Inc. (NASDAQ:ISSC) designs, manufactures, and services advanced cockpit systems and avionics for military, commercial, and business aircraft. It also offers integrated flight displays, air data systems, auto throttles (ThrustSense), and engine monitoring.

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Disclosure: None. This article is originally published at Insider Monkey.