Innovative Aerosystems Enters Asset Purchase Agreement with Honeywell
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 02 2026
0mins
Innovative Aerosystems (ISSC) entered into a an asset purchase and perpetual license agreement with Honeywell International (HON) for certain aftermarket parts, intellectual property, and program assets associated with select legacy Honeywell avionics product lines supporting the global Part 23 aircraft fleet. Under the terms of the agreement, ISSC acquired certain contracts, OEM and aftermarket production and repair, and critical operational assets such as specialized tooling and test equipment from Honeywell for supporting legacy navigation/communication radios, autopilot systems, multifunction displays, and transponder technologies installed across a wide range of general aviation aircraft. This strategic expansion strengthens Innovative Aerosystems' ability to provide long-term sustainment, engineering support, and supply continuity for operators, maintainers, and OEM partners worldwide.
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Analyst Views on ISSC
Wall Street analysts forecast ISSC stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 15.870
Low
17.50
Averages
17.50
High
17.50
Current: 15.870
Low
17.50
Averages
17.50
High
17.50
About ISSC
Innovative Solutions and Support, Inc. specializes in engineering, manufacturing, and supply of advanced avionics solutions. The Company's global product reach and customer base span commercial, business and aviation and military markets, catering to both airframe manufacturers and aftermarket services for fixed-wing and rotorcraft applications. Its product portfolio consists of five categories: integrated flight deck systems, COCKPIT/IP, navigation systems, communication systems, sensors and control systems, and advanced flight actuators. Its integrated flight deck systems COCKPIT/IP category includes crew alerting and engine displays, integrated standby instruments and mission displays. Its navigation systems category includes flight management systems, navigation radios and transponders. Its communication systems category includes communication radios, audio panels and radio management units. Its sensors and control systems category includes air data computers and magnetometers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Innovative Aerosystems Q2 2026 Earnings Highlights
- Revenue Growth: Innovative Aerosystems reported net revenues of $22.4 million in Q2 2026, with product sales at $14.3 million and service revenues at $8.1 million, reflecting strong growth in the commercial and business aviation markets despite a $7 million year-over-year decline in F-16 revenues.
- Acquisition Progress: The company completed three new acquisitions during the quarter, projected to contribute $10 million in annual revenue with a gross margin of approximately 50%, further advancing towards its $250 million annual revenue target.
- Future Outlook: Management expects third-quarter revenues to range between $24 million and $26 million, although overall organic revenue growth is anticipated to be essentially flat due to the pull-forward of F-16 production and service revenues.
- Financial Performance: The second quarter gross profit was $11.4 million with a gross margin of 51.1%, and net income was $3.4 million or $0.19 per diluted share, demonstrating effective control over operating expenses.
See More
Innovative Solutions and Support Q2 Earnings Beat Expectations
- Strong Earnings Performance: Innovative Solutions and Support reported a Q2 Non-GAAP EPS of $0.26, beating expectations by $0.07, indicating a sustained enhancement in profitability that is likely to positively impact stock prices.
- Stable Revenue Growth: The company achieved Q2 revenue of $22.4 million, reflecting a 2.3% year-over-year increase and surpassing market expectations by $1.27 million, demonstrating its ability to maintain steady growth in a competitive market.
- Significant Cash Flow Improvement: Operating cash flow reached $2.3 million, up 78% year-over-year, which not only strengthens the company's liquidity but also provides robust funding support for future investments, boosting market confidence.
- Sound Debt Management: As of March 31, 2026, the ratio of net debt to trailing twelve-month adjusted EBITDA stood at 1.7x, reflecting the company's prudent financial leverage management, which helps reduce financing costs and enhances financial flexibility.
See More
Innovative Solutions Set to Announce Q2 Earnings Results
- Earnings Announcement: Innovative Solutions and Support Company (ISSC) is set to announce its Q2 2023 earnings results on May 14 before market open, with consensus EPS estimated at $0.19 and revenue at $21.13 million, reflecting a 3.5% year-over-year decline.
- Earnings Forecast Analysis: Over the past three months, EPS estimates have seen no upward revisions and one downward revision, while revenue estimates have experienced two upward revisions and one downward revision, indicating a cautious market outlook on the company's future performance.
- Market Response: Despite facing growth headwinds, analysts maintain a “Strong Buy” rating on Innovative Aerosystems, reflecting confidence in its long-term potential, especially as Q1 results showed strong growth despite F-16 delivery timing effects.
- Strategic Partnership Update: Innovative Aerosystems has signed a deal with Honeywell to acquire avionics assets, further enhancing its competitive position in the aerospace sector, which is expected to positively impact future financial performance.
See More
Innovative Aerosystems Acquires Honeywell Avionics Assets
- Acquisition Deal: Innovative Aerosystems (ISSC) has signed an agreement with Honeywell International (HON) to acquire legacy avionics assets, including aftermarket parts, intellectual property, and program rights for Part 23 aircraft, which is expected to significantly enhance its product portfolio.
- Competitive Edge: CEO Shahram Askarpour stated that this deal strengthens the company's cockpit avionics platform and enhances its end-to-end support capabilities for a growing customer base, positioning the company more favorably in a competitive market.
- Financial Performance: Despite facing growth headwinds, Innovative Solutions reported strong growth in its Q1 2026 earnings, indicating sustained investment in the avionics sector and robust market demand.
- Small-Cap Stock Outlook: Following the earnings season, Innovative Aerosystems is rated a Strong Buy, reflecting its competitiveness among small-cap industrial stocks, particularly in the context of positive EPS surprises that further attract investor interest.
See More
ISSC Stock Trend Investment Analysis
- Price Uptrend: Innovative Solutions and Support, Inc. (ISSC) has seen a remarkable 134.7% price increase over the past 12 weeks, reflecting sustained investor confidence in its potential upside, indicating strong short-term performance prospects.
- Stable Short-Term Performance: The stock has gained 33.7% in the last four weeks, further confirming the continuity of its price trend, which may attract additional capital inflows as investor confidence strengthens.
- High Trading Signal: Currently trading at 86.6% of its 52-week high-low range, ISSC hints at a potential breakout, drawing attention from investors seeking short-term gains and enhancing market enthusiasm for the stock.
- Strong Fundamental Support: With a Zacks Rank of #2 (Buy), ISSC ranks in the top 20% of over 4,000 stocks, and its average broker recommendation of #1 (Strong Buy) indicates high analyst optimism about its near-term performance, reinforcing its investment appeal.
See More
Top Small-Cap Stocks with Positive EPS Surprises in Q4
- Strong Small-Cap Performance: As the Q4 earnings season nears its end, Allegiant Travel Company (ALGT) leads the list with a Strong Buy rating of 4.93, indicating robust performance in the passenger airline sector and likely attracting increased investor interest.
- Diverse Industry Representation: The list features a variety of sectors, including consumer finance, pharmaceuticals, and industrial machinery, reflecting the resilience of small-cap stocks in different market environments and potentially offering investors diversified opportunities.
- Year-to-Date Gains: Nektar Therapeutics (NKTR) has surged 61.83% year-to-date, while The Gorman-Rupp Company (GRC) and Innovative Aerosystems, Inc. (ISSC) have gained 36.69% and 32.29%, respectively, showcasing strong growth potential for these companies in the market.
- Quantitative Rating System: Seeking Alpha's Quant Ratings rank stocks based on critical metrics such as valuation, growth, stock momentum, and profitability, with ratings above 3.5 considered bullish, reflecting optimistic market sentiment towards these small-cap stocks.
See More
Innovative Aerosystems Q2 2026 Earnings Highlights
- Revenue Growth: Innovative Aerosystems reported net revenues of $22.4 million in Q2 2026, with product sales at $14.3 million and service revenues at $8.1 million, reflecting strong growth in the commercial and business aviation markets despite a $7 million year-over-year decline in F-16 revenues.
- Acquisition Progress: The company completed three new acquisitions during the quarter, projected to contribute $10 million in annual revenue with a gross margin of approximately 50%, further advancing towards its $250 million annual revenue target.
- Future Outlook: Management expects third-quarter revenues to range between $24 million and $26 million, although overall organic revenue growth is anticipated to be essentially flat due to the pull-forward of F-16 production and service revenues.
- Financial Performance: The second quarter gross profit was $11.4 million with a gross margin of 51.1%, and net income was $3.4 million or $0.19 per diluted share, demonstrating effective control over operating expenses.
See More
Innovative Solutions and Support Q2 Earnings Beat Expectations
- Strong Earnings Performance: Innovative Solutions and Support reported a Q2 Non-GAAP EPS of $0.26, beating expectations by $0.07, indicating a sustained enhancement in profitability that is likely to positively impact stock prices.
- Stable Revenue Growth: The company achieved Q2 revenue of $22.4 million, reflecting a 2.3% year-over-year increase and surpassing market expectations by $1.27 million, demonstrating its ability to maintain steady growth in a competitive market.
- Significant Cash Flow Improvement: Operating cash flow reached $2.3 million, up 78% year-over-year, which not only strengthens the company's liquidity but also provides robust funding support for future investments, boosting market confidence.
- Sound Debt Management: As of March 31, 2026, the ratio of net debt to trailing twelve-month adjusted EBITDA stood at 1.7x, reflecting the company's prudent financial leverage management, which helps reduce financing costs and enhances financial flexibility.
See More
Innovative Solutions Set to Announce Q2 Earnings Results
- Earnings Announcement: Innovative Solutions and Support Company (ISSC) is set to announce its Q2 2023 earnings results on May 14 before market open, with consensus EPS estimated at $0.19 and revenue at $21.13 million, reflecting a 3.5% year-over-year decline.
- Earnings Forecast Analysis: Over the past three months, EPS estimates have seen no upward revisions and one downward revision, while revenue estimates have experienced two upward revisions and one downward revision, indicating a cautious market outlook on the company's future performance.
- Market Response: Despite facing growth headwinds, analysts maintain a “Strong Buy” rating on Innovative Aerosystems, reflecting confidence in its long-term potential, especially as Q1 results showed strong growth despite F-16 delivery timing effects.
- Strategic Partnership Update: Innovative Aerosystems has signed a deal with Honeywell to acquire avionics assets, further enhancing its competitive position in the aerospace sector, which is expected to positively impact future financial performance.
See More
Innovative Aerosystems Acquires Honeywell Avionics Assets
- Acquisition Deal: Innovative Aerosystems (ISSC) has signed an agreement with Honeywell International (HON) to acquire legacy avionics assets, including aftermarket parts, intellectual property, and program rights for Part 23 aircraft, which is expected to significantly enhance its product portfolio.
- Competitive Edge: CEO Shahram Askarpour stated that this deal strengthens the company's cockpit avionics platform and enhances its end-to-end support capabilities for a growing customer base, positioning the company more favorably in a competitive market.
- Financial Performance: Despite facing growth headwinds, Innovative Solutions reported strong growth in its Q1 2026 earnings, indicating sustained investment in the avionics sector and robust market demand.
- Small-Cap Stock Outlook: Following the earnings season, Innovative Aerosystems is rated a Strong Buy, reflecting its competitiveness among small-cap industrial stocks, particularly in the context of positive EPS surprises that further attract investor interest.
See More
ISSC Stock Trend Investment Analysis
- Price Uptrend: Innovative Solutions and Support, Inc. (ISSC) has seen a remarkable 134.7% price increase over the past 12 weeks, reflecting sustained investor confidence in its potential upside, indicating strong short-term performance prospects.
- Stable Short-Term Performance: The stock has gained 33.7% in the last four weeks, further confirming the continuity of its price trend, which may attract additional capital inflows as investor confidence strengthens.
- High Trading Signal: Currently trading at 86.6% of its 52-week high-low range, ISSC hints at a potential breakout, drawing attention from investors seeking short-term gains and enhancing market enthusiasm for the stock.
- Strong Fundamental Support: With a Zacks Rank of #2 (Buy), ISSC ranks in the top 20% of over 4,000 stocks, and its average broker recommendation of #1 (Strong Buy) indicates high analyst optimism about its near-term performance, reinforcing its investment appeal.
See More
Top Small-Cap Stocks with Positive EPS Surprises in Q4
- Strong Small-Cap Performance: As the Q4 earnings season nears its end, Allegiant Travel Company (ALGT) leads the list with a Strong Buy rating of 4.93, indicating robust performance in the passenger airline sector and likely attracting increased investor interest.
- Diverse Industry Representation: The list features a variety of sectors, including consumer finance, pharmaceuticals, and industrial machinery, reflecting the resilience of small-cap stocks in different market environments and potentially offering investors diversified opportunities.
- Year-to-Date Gains: Nektar Therapeutics (NKTR) has surged 61.83% year-to-date, while The Gorman-Rupp Company (GRC) and Innovative Aerosystems, Inc. (ISSC) have gained 36.69% and 32.29%, respectively, showcasing strong growth potential for these companies in the market.
- Quantitative Rating System: Seeking Alpha's Quant Ratings rank stocks based on critical metrics such as valuation, growth, stock momentum, and profitability, with ratings above 3.5 considered bullish, reflecting optimistic market sentiment towards these small-cap stocks.
See More
