Financial Data and Key Metrics Changes - Fourth quarter revenue increased by 45% year over year to $22 million, with full year revenue reaching $84 million, up nearly 80% from the previous year [5][6] - Fourth quarter net income was $7.1 million or $0.39 per diluted share, compared to $3.2 million or $0.18 per diluted share in the prior year [25] - Adjusted EBITDA for the fourth quarter was $9.6 million, a 71% increase from the previous year, while full year adjusted EBITDA was $25 million, up just over 80% [6][7] Business Line Data and Key Metrics Changes - Product sales in the fourth quarter were $14.3 million, up from $9.8 million in the same period last year, driven by strong demand in the air transport sector [22] - Service revenue was $7.9 million, including $300,000 from the F-16 program and an increase of $1.3 million in non-recurring engineering services [22] - Gross profit for the fourth quarter was $14.1 million, up from $8.5 million, resulting in a gross margin of 63.2%, up from 55.4% in the prior year [23] Market Data and Key Metrics Changes - The company reported a backlog of approximately $77 million as of September 30, 2025, with new orders in the fourth quarter totaling around $27 million [25][26] - The air transport market and business aviation sectors contributed significantly to revenue growth, with increased demand noted in the retrofit market [47] Company Strategy and Development Direction - The company rebranded to Innovative Aerosystems to better reflect its focus on advanced avionics solutions for various aviation markets [4] - The strategic framework includes a long-term target of $250 million in revenue with adjusted EBITDA margins of 25% to 30%, driven by both organic and inorganic growth [7][18] - Key growth initiatives include new product development, cross-selling, and expansion of military capabilities, particularly with the F-16 program [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to benefit from foundational investments made in recent years, with expectations for continued profitable growth [19] - The outlook for Fiscal 2026 anticipates organic revenue growth to be more modest due to the pull forward of revenues related to the F-16 platform [29][30] - The company plans to drive growth through market share gains, new product development, and disciplined organic growth strategies [30] Other Important Information - The company completed a five-year $100 million credit agreement, providing improved liquidity and flexibility for strategic initiatives [17] - Significant investments were made in engineering and infrastructure to support growth, including the expansion of the Exton facility [15][16] Q&A Session Summary Question: Is the strength in sales driven by military programs related to the F-16? - Management clarified that the strength is not solely from the F-16, with contributions also from the C-130 and other Boeing programs [32][33] Question: What are the assumptions underpinning the $250 million revenue target? - The target assumes high single-digit organic growth, supported by a disciplined acquisition strategy [35] Question: What did customers like most about the Liberty Flight Deck? - Customers appreciated the customizable design and the ability to meet specific needs without significant non-recurring engineering costs [40][41] Question: What should be expected in terms of capital expenditures in the next year? - Management indicated that major shifts in capital expenditures are not expected following the completion of the Exton facility expansion [60]

Financial Data and Key Metrics Changes - Fourth quarter revenue increased by 45% year over year to $22 million, with full year revenue reaching $84 million, up nearly 80% from the previous year [5][24] - Fourth quarter net income was $7.1 million or $0.39 per diluted share, compared to $3.2 million or $0.18 per diluted share in the prior year [5][24] - Adjusted EBITDA for the fourth quarter was $9.6 million, a 71% increase from the previous year, with full year adjusted EBITDA at $25 million, up just over 80% [5][6][24] Business Line Data and Key Metrics Changes - Product sales in the fourth quarter were $14.3 million, up from $9.8 million, driven by strong demand in the air transport sector [21] - Service revenue was $7.9 million, including $300,000 from the F-16 program and an increase of $1.3 million in non-recurring engineering services [22] - Gross profit for the fourth quarter was $14.1 million, a 65% increase from $8.5 million in the same period last year, with a gross margin of 63.2%, up from 55.4% [22][23] Market Data and Key Metrics Changes - New orders in the fourth quarter were approximately $27 million, with a backlog of about $77 million as of September 30, 2025 [24][25] - The company expects to return to normal production levels for the F-16 in the first half of Fiscal 2026, following a pause in production [20] Company Strategy and Development Direction - The company rebranded to Innovative Aerosystems to reflect its focus on advanced avionics solutions for various aviation markets [4] - The strategic framework includes a long-term target of $250 million in revenue and adjusted EBITDA margins of 25% to 30% [7][19] - Key growth initiatives include new product development, expansion of military capabilities, and enhancements to integrated avionics solutions [8][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver profitable growth, supported by a solid financial position and favorable end-market trends [19] - The company anticipates organic revenue growth to be more modest in Fiscal 2026 due to the pull forward of revenues related to the F-16 platform [27][28] Other Important Information - The company completed a new five-year $100 million credit agreement, providing additional liquidity to support growth and acquisitions [17] - Significant investments were made in engineering and infrastructure to support future growth, including a 50% increase in the engineering team [12][16] Q&A Session Summary Question: Is the strength in sales driven by the F-16 or other military programs? - Management clarified that the strength is not solely related to the F-16, with contributions from the C-130 and other Boeing programs [29][30] Question: What are the assumptions underpinning the $250 million revenue target? - The target assumes high single-digit organic growth, supplemented by a disciplined acquisition strategy [30] Question: What is the outlook for gross margins? - Management projected EBITDA margins in the range of 25% to 30%, driven by growth and operating expense management [31] Question: What feedback was received on the Liberty Flight Deck? - Customers appreciated the customization options and the ability to meet specific needs without significant non-recurring engineering costs [32][33] Question: What contributed to the strong Q4 results? - Increased demand in the retrofit market and a comeback in business aviation were noted as key contributors [35] Question: What is the expected revenue trajectory for the next year? - Management did not provide specific forward-looking guidance but emphasized the focus on achieving the $250 million revenue target [42]