What happened with IA today?
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Innovative Solutions & Support, which trades as Innovative Aerosystems, supplies equipment that aircraft makers and operators need for cockpit information, navigation, communications and flight control. Historically, most sales have come from upgrading older aircraft rather than equipping new ones. Its offerings include cockpit displays and ThrustSense autothrottles, backed by integration, testing and ongoing support. Product sales provide most revenue; customer support and contracted engineering work also bring in income.
For military programs, the company mainly sells to defense contractors rather than directly to the U.S. Department of Defense. Lockheed Martin is its largest customer and supplies a substantial share of revenue. The F-16 is its largest program, making government orders and funding important to the business. Honeywell also remains a manufacturing partner for acquired military display-generator and flight-control-computer product lines; the company plans to move that production to its own facilities.
Aircraft products need regulatory approvals, and exports of controlled military equipment require government authorization. Production also depends on purchased components, including parts available from only one supplier; replacing them can require redesign and fresh aviation approvals before shipment.
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IA also depends on privately held Pilatus, which supplied 8% of fiscal 2025 revenue by buying utility-management systems for PC-24 aircraft under a multi-year production contract.
IA depends heavily on Lockheed Martin's aircraft-component purchases: its largest customer supplied 36% of fiscal 2025 revenue. Lockheed Martin builds aerospace and defense products mainly for U.S. government agencies and allies, making its aircraft production business the part to watch for IA.
IA's sales and margins depend on Honeywell's production handover of acquired military display generators and flight-control computers; Honeywell also competes in avionics and supplied 7% of IA's fiscal 2024 revenue as a customer. Watch the manufacturing transfer to IA: the expected production surge followed by a temporary halt could cause a revenue spike and then a dip.
Garmin competes with IA for aircraft manufacturers' avionics purchases and older-aircraft upgrades sold through dealers. Its aviation business, rather than its watches or marine electronics, is the relevant business to watch for competition with IA's cockpit displays, navigation and flight-management systems.
Textron's King Air 360 and 260 production provides demand for IA's ThrustSense systems, which automatically control engine thrust, under a multi-year supply agreement. Watch production of those aircraft, not Textron's wider mix of aircraft sales, parts and services.
Boeing buys IA's avionics and supplied 5% of its fiscal 2025 revenue, with the KC-46A program offering potential future production demand. Watch that program's production orders: IA excludes potential future sole-source orders from its reported backlog, so they are not yet booked demand.
Elbit Systems competes with IA to supply airborne systems for new aircraft and upgrades to existing aircraft for defense and commercial customers. Its aircraft-modernization work is particularly relevant because older-aircraft upgrades have historically generated most of IA's sales.
GE Aerospace competes with IA through avionics and aircraft systems sold to governments, militaries and aircraft manufacturers, but engines and engine services dominate its revenue. Watch its Defense & Systems avionics and power-systems business for the overlap with IA, rather than treating overall GE results as a direct comparison.
Honeywell International, Inc. earningsHON
Honeywell's report offers clues about production and the handover in its aerospace business, which affect Innovative Solutions & Support's ability to supply the related products.
If Honeywell discusses the production handover for these products, look for signs of steady progress versus delay or disruption. Smooth progress would support Innovative Solutions & Support's supply of the military display generators and flight-control computers; delays or disruption would make shipment timing and production costs less certain. Honeywell's overall results alone cannot establish how the handover is going, so the conclusion depends on relevant details.
Lockheed Martin Corp. earningsLMT
Lockheed Martin's report will show how its aircraft production is moving, offering a read on demand from Innovative Solutions & Support's largest customer.
Focus on Lockheed Martin's aircraft production activity and orders, not just its total revenue. Steady production and orders would support demand for Innovative Solutions & Support's avionics; slower production or delays would make the company's customer concentration more consequential. Lockheed Martin accounted for 36% of Innovative Solutions & Support's fiscal 2025 revenue, but Lockheed's overall results are not the same as its purchases from IA.
Boeing Company earningsBA
Boeing's report will offer a read on KC-46 production, which could create future avionics demand for Innovative Solutions & Support.
Watch Boeing's comments on KC-46 production progress and follow-on orders. Advancing production and additional orders would strengthen the case for possible future demand for Innovative Solutions & Support; a stall or slowdown would leave that demand uncertain. Even a strong program does not mean IA has won an order: these potential orders are not included in its reported backlog.
Durable Goods Orders MoM (Sep)
Durable goods orders track purchases of long-lasting equipment, including aircraft; stronger aircraft orders can support OEM production and demand for Innovative Aerosystems’ avionics, while weaker orders can reduce product sales.
Expected0.2%Last release-0.1%
If it comes in above expectations
If the reading is above the 0.2% estimate, it is above the previous -0.1%. More orders than expected may lead aircraft OEMs to build more aircraft, increasing demand for the company’s OEM components under multi-year agreements and potentially lifting product revenue.
If it comes in below expectations
Fewer orders than expected may lead aircraft OEMs to scale back production, reducing demand for the company’s OEM components and potentially lowering product revenue.
Elbit Systems Ltd earningsESLT
Elbit Systems' report will show how its aircraft-modernization business is moving, offering a read on customer spending on the older-aircraft upgrades that have long supported Innovative Solutions & Support's avionics sales.
Look at orders or sales in Elbit Systems' aircraft-modernization business. Strength would show that customers are still funding older-aircraft upgrades, while also showing competitors are pursuing those opportunities; weakness would suggest a softer market, not by itself that Innovative Solutions & Support has lost an order. The distinction is between market demand and the projects IA actually wins.
Innovative Solutions & Support earningsThis company
Innovative Solutions & Support's report will show whether product sales growth is turning into profit, not just more revenue.
Read product sales alongside gross margin. Higher product sales with a stable or improving margin would show that the added shipments are contributing profit; higher sales with a weaker margin would suggest product mix or integration costs are consuming the growth. The question is whether the company can turn product growth into a more profitable business.
