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Investor Presentation September 2025
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Privileged & Confidential SAFE HARBOR STATEMENT 2 This presentation contains highly confidential and proprietary information regarding Innovative Solutions & Support (“ISSC” or the “Company”) and their strategy and organization. This confidential presentation is provided to you on the condition that you agree that you will hold it in strict confidence and not reproduce,disclose, forward or distribute it to any third party in whole or in part without ISSC’s prior written consent. This presentation contains forward-looking statements that are based on ISSC’s current expectations or forecasts of future events as well as a number of assumptions, estimates and projections concerning future events. These statements can be identified by the use of forward-looking words, including “may,” “expect,” “anticipate,” “potential,” “forecast,” “likely,” “could,” “plan,” “project,” “believe,” “estimate,” “intend,” “will,” “should” or other similar words. Forward-looking statements are prepared in good faith based upon assumptions that are believed by management to be reasonable at the time such forward-looking statements are prepared, it being understood and agreed that forward-looking statements are not a guarantee of future performance and actual results may differ from the results discussed in or implied by the forward-looking statements and such differences may be material. These forward-looking statements involve risks, uncertainties, changes in circumstances, assumptions and other important factors, many of which are beyond management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance on the forward-looking statements. Forward-looking statements speak only as of the date the statements are made. ISSC assumes no obligation and expressly disclaims any obligation to update or revise forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. In addition, this presentation includes certain non-GAAP financial measures. Non-GAAP financial measures are not measures of financial performance in accordance with U.S. generally accepted accounting principles (“GAAP”) and may exclude items that are significant in understanding and assessing the Company’s financial results. Because not all companies calculate non-GAAP financial measures identically (or at all), the information presented herein may not be comparable to other similarly titled measures used by other companies. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation, or as a substitute for our results as reported under GAAP. A reconciliation of non-GAAP financial measures to the nearest comparable GAAP amounts have been provided in the appendix. Statements contained herein describing documents and agreements are summaries only and such summaries are qualified in their entirety by reference to such documents and agreements. You acknowledge that neither the Company nor any of its affiliates, or any of its or their stockholders, subsidiaries, affiliates or associates, or any of their respective directors, officers, partners, employees, representatives, financing sources and advisors (the “Relevant Parties”) shall have any liability to youor any other person for furnishing the information contained herein or for any action taken or decision made by you in purported reliance on such information. No Relevant Party is making any representation or warranty as to the accuracy or completeness of the information contained in this document, and no Relevant Party shall have any liability to you or any other person for failingto furnish any other information now or in the future known to or in possession of any Relevant Party or have any obligation to update or supplement any information previously provided to you with any additional information. The furnishing of the information contained in this document shall not, under any circumstances, create any implication that there has been no change in the information set forth herein or in the affairs of the Company and its subsidiaries and affiliates since the date of such information or the date it was furnished. The presentation does not constitute or form part of, and should not be construed as an offer or the solicitation of an offer to subscribe for or purchase the securities referenced herein (the “Securities”), and nothing contained therein shall form the basis of or be relied on in connection with any contract or commitment whatsoever, nor does it constitute a recommendation regarding the Securities. Any decision to purchase the Securities should be made solely on the basis of the information that may be contained in an offering memorandum produced in connection with the offering of the Securities. Prospective investors are required to make their own independent investigations and appraisals of the business and financial condition of ISSC and the nature of the Securities before taking any investment decision with respect thereto. The offering memorandum may contain information different from the information contained herein. The offer and sale of Securities has not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and the Securities may not be offered or sold in the United States or to U.S. persons unless so registered, or an exemption from the registration requirements of the Securities Act is available.
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Privileged & Confidential BUSINESS OVERVIEW SECTION
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Privileged & Confidential What we do ISSC is a US based Original Equipment Manufacturer (OEM) that designs, develops, and manufactures sophisticated, reliable and cost-effective avionics solutions and services for the aviation industry ABOUT ISSC High Value Air Transport Quality – Made in the USA 4 ISSC Expertise Why customers choose ISSC • Systems integration • Flight Management, monitoring, command and control systems • Full compliment of smart displays • Extensive range of aircraft sensors • Flight Control Systems • Autothrottle • Control surface actuation • Maintenance, Repair and Overhaul • Global customer support • A leader in all aviation market verticals • Decades of proven experience • Industry leading infrastructure and facilities • A high-performance culture with a track record of innovation • All U.S. based operations accelerates time to market, mitigates supply risk Founded 1988 NASDAQ: ISSC +70% 2022-2024 Revenue Growth +80% 2022-2024 EBITDA Growth +140 bps 2022-2024 EBITDA margin expansion 1.1x Net leverage as of 6/30/25 Solutions Providers to Leading Brands
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Privileged & Confidential OUR UNIQUE VALUE PROPOSITION Why customers choose ISSC 5 Our systems integration expertise positions us as a preferred partner of choice in fleet modernization ISSC provides high value, cost effective integrated avionics solutions for forward fit and retrofit markets for all aviation market verticals We provide advanced retrofits for legacy systems. ISSC specializes in retrofitting older aircraft with state-of-the-art avionics, such as Flat Panel Display Systems and Autothrottles, significantly improving functionality and compliance with current aviation standards. Efficiency and Environmental Impact. Our diverse product portfolio, including our fuel-efficient Autothrottle Systems, help operators reduce fuel consumption and emissions, aligning with industry sustainability goals and saving operational costs. Customizable, Scalable Solutions. We offer modular avionics systems that can be tailored to specific aircraft types and operational needs, allowing airlines to make targeted, scalable upgrades. ISSC provides integrated fleet modernization and retrofit solutions, providing performance, safety, and efficiency of both commercial and military aircraft.
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Privileged & Confidential OUR DEDICATED FOCUS ON COCKPIT AUTOMATION Aviation domain expertise within design, sourcing, manufacturing and support 6 Benefits of Systems Integration Expertise • 100% in-house design, testing and manufacturing • We continue to invest in new product development as we build a next-generation portfolio of in-demand solutions • Culture of innovation - one in four employees are engineers • ISSC possesses every discipline in-house, through ground up, and sources from a world-wide network of commercially available components. Supply chain disruption has not affected our production. • We enter into long-term supply agreements and uses its relationships with long-term suppliers to improve product quality and availability and reduce delivery times and product costs • 100% U.S. based manufacturing footprint • Manufacturing process enables a substantially reduced cycle time, high yield and cost advantage • Our manufacturing activities consist primarily of assembling, testing components and subassemblies and integrating them into finished systems • Full-service integration and repair capabilities, worldwide, any time availability mobile installation and support teams, • Engineering based organization; engineers design, build and offer technical support for our products. Our customers talk to the people who’ve built and designed our product not a call center. Step 2 Materials Sourcing and Procurement Step 3 Precision Manufacturing Step 1 Product Engineering and Design Step 4 Technical support & installation Improved system performance Ease of installation Reduced aircraft downtime during maintenance Reduced system complexity Our vertically integrated model provides for increased efficiency, quality control, reduced procurement risk, and accelerated time to market for our customers.
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Privileged & Confidential OUR SPECIALIZED PRODUCT PORTFOLIO Our system integration provides customers with a one-stop solution 7 Affordable RSVM Mandate High Demand Significant Market Capture Adding capability and flexibility to solid avionics foundation as well as systems integration Present and Beyond Expanding the display and control applications into other areas of strength Standalone Reduce aircraft out of service Reduce Pilot training Add more capability to Baseline Aircraft Product Evolution Timeline Air Data Flat Panels Systems Integration NextGen Pre-2000s 2001 2005 2009 2015 2025+ Systems integration provides a complete, optimal solution by selecting best in class equipment. The ISSC advantage is that the company was rooted in the aftermarket cockpit upgrades and developed Data Concentrators that allow interface with all equipment installed in airplanes. Expertise: Extensive experience across platforms and technologies. Dedicated installation teams for quick turn times to visit facility, upgrade and have aircraft certified. Tailored Solutions: Customized integrations to meet specific needs. Proven Success: A track record of delivering outstanding results. Future-Proof Designs: Scalable solutions that grow with technology. Customer Focus: Collaborative approach aligned with customer goals.
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Privileged & Confidential Compelling Transaction Rationale Communication, Navigation & Inertial Reference Products The exclusive licensing of these product lines from Honeywell is a unique opportunity for the Company to enhance its current offerings in the air transport, military and business aviation markets Significant cost synergy potential, as ISSC leverages its skilled engineering capability and existing manufacturing capacity drive operating leverage improvements Transaction further enhances ISSC’s global reputation for industry-leading price-for-performance value proposition Acquired in Honeywell Transaction PRODUCT ACQUISITION FROM HONEYWELL AEROSPACE In 2023, ISSC acquired communication, navigation and inertial technologies 8 Transaction expands product portfolio within higher growth, high-margin markets, while creating significant cross-selling potential on thousands of air transport, military and commercial aircraft Leading Platforms Served Significant platform expansion opportunity • Boeing 737, 747, 757, 767 • Airbus A300, A310 • Gulfstream V • Citation Audio management units Radio management units VHF communication radios Navigation radios Distance measuring equipment Transponders Inertial reference units
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Privileged & Confidential PRODUCT ACQUISITION FROM HONEYWELL AEROSPACE In 2024, ISSC acquired the Display Generator and Flight Control Computer for the F-16 Platform 9 Compelling Transaction Rationale The exclusive licensing of these product lines from Honeywell is a unique opportunity for the Company to enhance its current offerings in the military market Significant cost synergy potential, as ISSC leverages its skilled engineering capability and existing manufacturing capacity drive operating leverage improvements Transaction further enhances ISSC’s position in the global military aviation market Transaction expands product portfolio within the military markets, while creating significant facility utilization and cross-selling potential with Lockheed Martin
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Privileged & Confidential 10 TRACK RECORD OF EXECUTION Trailing 3-year growth in revenue, EBITDA and margin realization ISSC continues benefit from a combination of favorable secular tailwinds, organic investment in IP , and targeted product acquisitions Revenue Growth ($MM) Adjusted EBITDA ($MM) EBITDA Margin Expansion (%) Free Cash Flow ($MM) $27.7 $34.8 $47.2 2022 2023 2024 $7.7 $9.6 $13.7 2022 2023 2024 27.6% 27.6% 29.0% 2022 2023 2024 $5.9 $1.8 $5.1 2022 2023 2024
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Privileged & Confidential VALUE CREATION ROADMAP ISSC Next Strategy
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Privileged & Confidential VALUE CREATION ROADMAP Introducing ISSC NEXT value creation framework 12 ISSC Next prioritizes commercial growth, sustained operational excellence and disciplined capital allocation ISSC has identified historical challenges to profitable growth Limited economies of scale results in lower operating leverage Focus on pure organic growth limits breath of product lines needed for capturing OEM programs Heavily reliant on cyclical commercial aerospace after-market business Our Past Our Path Forward Sustained Operational Excellence Targeted Commercial Expansion Disciplined Capital Allocation • New product development and line expansion • Cross-selling synergies • New program wins • Expand Military revenues • Increase exposure to OEM platforms • Optimize operating structure • product mix optimization • Increased facility utilization • Supply chain optimization • Improved fixed cost absorption • Reinvest in new product line acquisitions • New product development • Invest in organic growth • Maintain financial flexibility
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Privileged & Confidential INVESTMENT SUMMARY Business transformation underway; focused on long-term value creation 13 Investment Summary Key Catalysts Advanced Avionics specialists offer technical domain expertise Systems integration expertise accelerates time to market, reduces customer TCO Vertically integrated model reduces supply chain risk, leverages culture of innovation Established, long-term OEM and retrofit clients Long-term contracts with recurring revenue streams Expanding addressable market across military and commercial customers Favorable secular trends - aging aircraft fleet, autonomous flight opportunity ISS NEXT provides clear, measurable financial targets around value creation strategy
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Privileged & Confidential F3Q25 PERFORMANCE
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Privileged & Confidential F3Q25 FINANCIAL PERFORMANCE Strong Financial Results and Continued Execution Against Strategic Priorities 15 Strategic Milestones ISS NEXT Third Quarter 2025 Key Highlights • Revenue increased 105% driven by F-16, including pull forward of deliveries ahead of migration to Exton facility • Net income of $0.14 per diluted share up from $0.09 last year • Adjusted EBITDA increased 43% to $4.4 million • Net leverage declined to 1.1x from prior quarter, highlighting ability to quickly de-lever • Construction at Exton facility has been completed, fit-out to be completed in early-fall • Continued progress on Honeywell product integration • Closed on new five-year, $100 million credit facility, providing improved flexibility to execute on growth strategy
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Privileged & Confidential 16 Successful ramp of F- 16 program, strong cash flow, focus on strategic priorities drive 3Q results • Revenue strength driven by F-16 deliveries • EBITDA growth highlights opportunity as military business scales • Elevated backlog demonstrates business momentum and strong future growth outlook F3Q25 PERFORMANCE SUMMARY Strong 3Q Results Highlight Progress on Strategic Priorities 105% y/y Revenue Growth ($MM) 43% y/y Adjusted EBITDA Growth ($MM) EBITDA Margin (%) Backlog Growth ($MM) $11.8 $24.1 3Q24 3Q25 $3.1 $4.4 3Q24 3Q25 26.1% 18.3% 3Q24 3Q25 $9.3 $72.4 3Q24 3Q25
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Privileged & Confidential 17 Strong financial position with current cash balance and availability under our credit facility equaling more than $12 million provide ample liquidity to support our ongoing operations and facility expansion DISCIPLINED BALANCE SHEET MANAGEMENT Strong financial position provides ability to pursue growth objectives Cash and Availability ($MM) Net Leverage Ratio Net Debt ($MM) $20.7 $7.5 $9.0 $8.8 $12.3 3Q24 4Q24 1Q25 2Q25 3Q25 $9.3 $27.5 $25.9 $26.2 $22.7 3Q24 4Q24 1Q25 2Q25 3Q25 0.8x 2.0x 1.8x 1.4x 1.1x 3Q24 4Q24 1Q25 2Q25 3Q25
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Privileged & Confidential APPENDIX
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Privileged & Confidential NON-GAAP FINANCIAL DISCLOSURES EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted earnings per share (“EPS”) and adjusted net cash provided by operating activities (“free cash flow”) are not measures of financial performance under GAAP and should not be considered substitutes for GAAP measures, net income (for EBITDA and adjusted EBITDA), diluted earnings per share (for adjusted diluted EPS) or net cash provided by operating activities (for free cash flow), which the Company considers to be the most directly comparable GAAP measures. These non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, readers should not consider these non-GAAP financial measures in isolation or as substitutes for net income, diluted earnings per share, net cash provided by operating activities or other consolidated income statement data prepared in accordance with GAAP. Other companies in the Company’s industry may define or calculate these non-GAAP financial measures differently than the Company does, and accordingly, these measures may not be comparable to similarly titled measures used by other companies. The Company defines EBITDA as net income before interest, taxes, depreciation, and amortization. The Company believes EBITDA to be relevant and useful information to their investors because it provides additional information in assessing the Company’s financial operating results. The Company’s management uses EBITDA in evaluating operating performance, ability to service debt, and ability to fund capital expenditures and pay dividends. However, EBITDA has certain limitations in that it does not reflect the impact of certain expenses on the Company’s consolidated statements of income, including interest expense, which is a necessary element of the Company’s costs because the Company has borrowed money in order to finance operations, income tax expense, which is a necessary element of costs because taxes are imposed by law, and depreciation and amortization, which are necessary elements of costs because the Company uses capital assets to generate income. EBITDA should be considered in addition to, and not as a substitute for, or superior to, operating income, net income or other measures of financial performance prepared in accordance with U.S. GAAP. Furthermore, the Company’s definition of EBITDA may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of EBITDA to U.S. GAAP net income. The Company defines adjusted EBITDA as net income before interest, taxes, depreciation, amortization, transaction-related acquisition and integration expenses, and non-recurring items. The Company believes that adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to ongoing business performance, and that the presentation of this measure enhances an investor’s understanding of its financial performance. Adjusted EBITDA has important limitations as an analytical tool. For example, adjusted EBITDA: • does not reflect any cash capital expenditure requirements for the assets being depreciated and amortized, which assets may have to be replaced in the future; • does not reflect changes in, or cash requirements for, the Company’s working capital needs; • excludes the impact of certain cash charges resulting from matters the Company considers not to be indicative of its ongoing operations; • does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on the Company’s debt; and • excludes certain tax payments that may represent a reduction in available cash. Free cash flow is calculated as net cash provided by operating activities less capital expenditures. The Company believes that free cash flow is an important financial measure for use in evaluating financial performance because it measures the Company’s ability to generate additional cash from its business operations. A reconciliation of each non-GAAP measure to the most directly comparable GAAP measure is set forth below. .
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Privileged & Confidential NON-GAAP FINANCIAL DISCLOSURES Reconciliation of Net Income to EBITDA and Adjusted EBITDA Three Months Ended June 30, 12 Months Ended September 2025 2024 2022 2023 2024 Net Income $2,443,814 $1,552,520 $5,523,778 $6,027,755 $6,998,380 Income tax expense 667,682 330,511 1,817,831 1,607,517 1,853,180 Interest expense 407,459 172,784 0 393,281 937,309 Depreciation and amortization 820,410 611,155 368,499 697,943 2,097,942 EBITDA $4,339,365 $2,666,970 $7,710,108 $8,726,496 $11,886,811 Acquisition related costs 68,000 175,278 0 710,705 1,172,363 CFO transition, ATM Costs and other strategic initiatives - 233,678 0 156,061 612,907 Adjusted EBITDA $4,407,365 $3,075,926 $7,710,108 $9,593,262 $13,672,081 % margin 18.3% 26.1% 27.8% 27.6% 29.0%
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Privileged & Confidential NON-GAAP FINANCIAL DISCLOSURES Net Debt and Net Debt Leverage Three Months Ended June 30, 2025 2024 Total Debt $ 23,258,511 $ 9,859,074 Cash 601,759 521,041 Net Debt $ 22,656,752 $ 9,338,033 Leverage Ratio 1.1x 0.8.x Free Cash Flow 12 Months Ended September 2022 2023 2024 Operating Cashflow $6,094,440 $2,096,174 $5,796,222 Capital Expenditures 161,230 298,373 657,790 Free Cashflow $5,933,210 $1,797,801 $5,138,432