Core Insights - Innovative Solutions & Support, Inc. (ISSC) reported significant financial growth in Q2 2025, with revenue more than doubling year-over-year to $21.9 million and net income surging 300% to $5.3 million [7] Financial Performance - Adjusted EPS for Q2 was $0.30, compared to $0.07 in Q2 2024 [7] - Adjusted EBITDA increased 219% to $7.7 million, compared to $2.4 million in Q2 2024 [7] - Operating expenses rose modestly to $4.3 million, representing 19.6% of revenue, with SG&A falling from 36.7% year-over-year [4] Operational Analysis - Military sales now account for 40-50% of total revenue, up from less than 10% in 2022, driven by $10.8 million from Honeywell-related programs and organic defense contracts [3] - Gross margin rebounded to 51.4%, up from 41.4% in Q1 2025, as Honeywell integration costs subsided [5] Strategic Developments - The Exton facility expansion is on track to triple capacity by mid-2025, positioning ISSC for over $250 million in revenue potential [5] - Backlog stood at $80 million as of quarter-end, excluding long-term OEM programs [14] 2025 Outlook - Revenue growth is expected to exceed 30%, with military revenue projected to exceed 40% of total sales by FY 2025 year-end [8] - EBITDA margins are expected to sustain above 30% as scale benefits offset defense mix headwinds [9]