Innovative Aerosystems (ISSC) Investor presentation summary

Business overview and value proposition

• Designs, develops, and manufactures advanced avionics for commercial and military aviation, 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 enhances efficiency, quality, and supply chain resilience, with 100% in-house design, testing, and manufacturing.

• Product portfolio includes autothrottle systems, flat panel displays, flight management, and control systems, with a focus on cockpit automation.

• Systems integration expertise enables tailored solutions, reduced downtime, and future-proof designs for diverse aviation platforms.

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 opportunities.

• Recent acquisition of Moog S-TEC Model 3100 autopilot product line strengthens integrated avionics and flight control offerings.

• Expanded platform reach includes Boeing, Airbus, Gulfstream, Citation, and F-16, serving both commercial and military customers globally.

Financial performance and growth

• Revenue grew 142% from 2023 to 2025, with adjusted EBITDA up 159% and margin expansion of 190 basis points.

• First quarter 2026 revenue increased 36.5% year-over-year, with adjusted EBITDA up 141% to $7.4 million and free cash flow of $7.0 million.

• Adjusted EBITDA margin reached 34% in Q1 2026, up from 19.3% in Q1 2025.

• Net leverage reduced to 0.5x as of December 2025, with $83 million in cash and available liquidity.

• Elevated backlog and strong cash flow support ongoing growth and strategic initiatives.