Innovative Solutions and Support, Inc
Innovative Solutions & Support Inc. designs, manufactures, sells, and services avionics and flight guidance systems for aircraft OEMs and retrofit customers. Its products include cockpit displays, autothrottles, navigation, communication, and air data systems used in commercial air transport, business aviation, and military applications.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueCockpit/IP® displays, primary flight/navigation displays, and crew alerting systems.
Flight management systems, mission computers, GPS receivers, and inertial products.
Radios, audio panels, radio management units, air data equipment, and transponders.
Autothrottle and primary flight guidance products sold into OEM and retrofit programs.
Customer service, engineering development contracts, and related support services.
Products
Reported · share of revenue- Products64.2 %
- Services35.8 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
The company sells to aircraft OEMs, retrofit centers, aircraft operators, and government customers. Demand comes from both new aircraft production programs and upgrades to in-service fleets, with defense contractors and the U.S. government representing an important retrofit channel. Customer concentration is high, and a limited number of programs and buyers account for a large share of revenue.
Buy avionics and integrated systems for new aircraft builds, including multi-year production programs.
Buy upgrade kits and replacement systems to modernize in-service aircraft for safety, compliance, and efficiency.
Buy avionics for military retrofit programs, often through prime contractors or direct government contracts.
Buy cockpit, navigation, and support products for fleet upgrades and operational reliability.
Buy flight deck and guidance systems to improve aircraft capability and fleet utilization.
Strategy
Management is positioning the company as a systems integrator that combines internally developed products with acquired product lines and licensing opportunities. The strategy is to broaden the product base, leverage engineering and manufacturing capacity, and deepen relationships across OEM and retrofit channels. Recent disclosures also show emphasis on multi-year OEM programs and on expanding service and engineering development revenue.
Adds mature products, expands customer access, and improves utilization of engineering resources.
OEM contracts provide recurring production volume and strengthen platform presence.
Retrofit demand supports recurring upgrades, installed-base monetization, and longer product life cycles.
Geography
The company is headquartered in the United States and says most sales, operating results, and identifiable assets are generated there. It also sells outside the U.S., with net sales outside the United States of $16.4 million in fiscal 2025, indicating a smaller but meaningful international footprint. Geography matters because government and defense contracts, OEM programs, and retrofit channels are concentrated in the U.S., while foreign military and international operator sales add exposure to export and contract-risk dynamics.
Risks
The business is exposed to customer concentration, contract termination rights, and program timing risk because a limited number of customers and contracts drive a large share of revenue. It also faces intense competition from larger avionics suppliers, cybersecurity and technology disruption risk, and execution risk tied to certification, supply chain, and product development schedules.
- Customer concentrationImpact: HighLikelihood: Medium
A small number of customers account for a majority of revenue, so contract loss would materially reduce sales.
Exposure: 57% of fiscal 2025 revenue came from a limited number of customers
- Government contract termination riskImpact: HighLikelihood: Medium
U.S. government and foreign government contracts can be terminated for convenience, limiting expected profit.
Exposure: Retrofit programs with DoD and other agencies
- Competitive pressureImpact: MediumLikelihood: Medium
Large avionics suppliers can compete on price, reliability, engineering, and support.
Exposure: Commercial and defense avionics markets
- Cybersecurity and technology disruptionImpact: MediumLikelihood: Medium
IT systems and customer data are critical to operations and a breach could damage relationships and operations.
Exposure: Internal systems and DoD-related environments
- Program and certification execution riskImpact: MediumLikelihood: Medium
Delays in development, certification, or supplier readiness can defer deliveries and revenue.
Exposure: OEM and retrofit product programs
Accounting
Judgemental itemsDifferent contract types can recognize revenue at different times, affecting quarterly comparability.
Impact: Product sales, services, and engineering development contracts
Obsolescence and slow-moving stock can require write-downs in a niche avionics portfolio.
Impact: Cost of sales and gross margin
Acquired product lines must be tested for impairment if cash flows weaken.
Impact: Non-cash charges and balance sheet carrying values
Purchase accounting for acquired product lines depends on valuation assumptions.
Impact: Amortization expense and future impairment risk
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Last updated: 24/09/2026