Innovative Aerosystems (ISSC) Investor presentation summary

Business overview and value proposition

• Designs, develops, and manufactures advanced avionics for commercial and military aircraft, with all operations based in the U.S.

• Offers integrated fleet modernization and retrofit solutions, including advanced retrofits for legacy aircraft and modular, scalable avionics systems.

• Vertically integrated model ensures efficiency, quality control, and reduced supply chain risk, with 100% in-house design and manufacturing.

• Product portfolio includes autothrottle systems, flat panel displays, flight management, and data concentrators, serving major OEMs and airlines.

• Focus on cockpit automation, systems integration, and customer-centric engineering support.

Strategic acquisitions and market expansion

• Acquired communication, navigation, and inertial technologies from Honeywell in 2023, expanding into high-growth, high-margin markets.

• 2024 acquisition of F-16 display generator and flight control computer enhances military market presence and cross-selling with Lockheed Martin.

• Recent acquisitions include Moog S-TEC Model 3100 autopilot and two Honeywell product lines, strengthening integrated cockpit avionics and electrical power capabilities.

• Expanded platform coverage includes Boeing, Airbus, Gulfstream, Citation, and F-16, with significant global upgrade opportunities.

Financial performance and growth

• Revenue grew from $47.2M in 2023 to $84.3M in 2025, with adjusted EBITDA rising from $13.7M to $24.8M and margin expansion of 190 bps.

• F2Q26 revenue increased 2% to $22.4M, with adjusted EBITDA of $6.8M and free cash flow of $7.7M in 1H26.

• Net leverage at 1.7x post-acquisitions, with $50M in cash and liquidity supporting growth initiatives.

• Strong backlog growth and recurring revenue streams from long-term contracts.