Innovative Aerosystems, Inc. (IA) AI Stock Analysis

Innovative Aerosystems, Inc. engages in the engineering, manufacturing, and supply of advanced avionic solutions. The company provides autothrottles, LPV Navigators, standby displays, COM/NAV/surveillance radio management systems, air data solutions, inertial reference systems, and utilities management systems. It also offers flat panel display systems, integrated global navigation systems, global positioning systems, c-130 engine instrument display systems, liberty flight deck, and communications and navigation products. Based in Exton, Pennsylvania, the company operates with 147 employees and serves business aircrafts, commercial airlines, military, virtual cp-pilots, and turbo prop markets.

Between FY2022 and FY2025, annual revenue expanded from $27.7M to $84.3M, reflecting a 3-year revenue CAGR of 44.8%. Top-line growth accelerated from 25.5% in FY2023 and 35.6% in FY2024 to 78.6% in FY2025. Gross margin contracted over this period from 60.1% in FY2022 to 48.1% in FY2025, while operating margin moved from 26.0% to 23.8%. Net income rose from $5.5M in FY2022 to $15.6M in FY2025, lifting EPS from $0.32 to $0.92. For the latest quarter ended June 30, 2026, revenue increased 10.7% year-over-year, and quarterly earnings grew 80.1%.

As of June 30, 2026, Innovative Aerosystems held $10.7M in cash and short-term investments against total debt of $54.3M, resulting in net debt of $43.6M. Total assets stood at $148.0M and shareholders' equity was $77.2M, yielding a debt-to-equity ratio of 0.70. Short-term liquidity remains supported by a current ratio of 2.97. In FY2025, the company delivered operating cash flow of $13.3M and free cash flow of $6.8M after allocating $6.5M to capital expenditures.

At its last close of $19.35 on October 16, 2026, Innovative Aerosystems traded at a trailing P/E of 18.3x and a forward P/E of 9.5x. These compare to a trailing P/E of 24.8x and a forward P/E of 17.2x for the median of its US-listed Industrials peers. The company posted an EV/EBITDA of 11.8x versus the peer median of 13.9x, and a price-to-sales ratio of 3.7x compared to the peer median of 1.5x. Over the past year, the stock returned 73.5%, outperforming the S&P 500 (SPY) return of 16.8%.

All 4 analysts covering Innovative Aerosystems rate the stock as a Strong Buy. Their mean price target of $33.25 represents a 71.8% premium over the last close of $19.35. For the fiscal year ending September 30, 2026, consensus estimates project revenue of $99.7M and EPS of $1.11, representing 23.1% EPS growth. In the following fiscal year, 3 analysts project revenue of $118.6M with EPS declining 2.1% to $1.09. The company has beat EPS estimates in each of the last 4 quarters.

This page is an AI-written research summary of Innovative Aerosystems, Inc. (IA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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