Innovative Solutions reports Q3 EPS 14c vs 9c last year

Reports Q3 revenue $24.14M vs. $11.77M last year. Reports Q3 new orders were $16.9M and backlog as of June 30 was $72.4M. Reports free cash flow $3.52M. “We delivered solid third quarter results, highlighted by revenue growth of 105% to $24.1 million and adjusted EBITDA growth of 43% to $4.4 million,” stated Shahram Askarpour, CEO of IS&S. “Our gross margin was impacted by elevated costs on the F-16 product line as Honeywell incurred extra expenses in order to expedite the building of safety stock ahead of fully transitioning production to ISSC. However, once the transition is completed, we expect to realize product level and operational cost efficiencies that will improve gross margins in the latter quarters of fiscal 2026. Based on our solid year-to-date results, we remain on track to achieve our full year target of growing both revenue and EBITDA by more than 30% compared to fiscal year 2024.”