--- title: "Innovative Solutions | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 22.37 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286422453.md" datetime: "2026-05-14T13:07:20.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286422453.md) - [en](https://longbridge.com/en/news/286422453.md) - [zh-HK](https://longbridge.com/zh-HK/news/286422453.md) --- # Innovative Solutions | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 22.37 M Revenue: As of FY2026 Q2, the actual value is USD 22.37 M, beating the estimate of USD 21.13 M. EPS: As of FY2026 Q2, the actual value is USD 0.19. EBIT: As of FY2026 Q2, the actual value is USD 5.449 M. ### Second Quarter Fiscal 2026 Financial Highlights #### Revenue Net sales for the three months ended March 31, 2026, were $22.4 million, an increase of 2.0% compared to the prior year period. Revenue from non-F-16 business for the second quarter of 2026 was $18.9 million, representing a 69% increase over the prior-year quarter. F-16 revenue for the second quarter declined by $7 million versus the comparable period. Product net sales for the three months ended March 31, 2026, were $14,310,928, up from $13,180,032 in the prior year. Services net sales for the three months ended March 31, 2026, were $8,054,101, down from $8,756,182 in the prior year. Total net sales for the six months ended March 31, 2026, were $44,172,112, up from $37,904,943 in the prior year. #### Profitability Gross profit for the second quarter of 2026 was $11.4 million, an increase of 1.5% compared to the prior year. Gross margin for the second quarter of 2026 was 51.1%, a slight decrease from 51.4% in the prior year period. Net income for the second quarter was $3.4 million, or $0.19 per diluted share, compared to $5.3 million, or $0.30 per share in the prior year. Adjusted Net Income for the second quarter was $4.8 million, or $0.26 per diluted share, compared to $5.7 million, or $0.32 per share in the prior year. EBITDA for the second quarter was $5.9 million, down from $7.6 million in the prior year. Adjusted EBITDA for the second quarter was $6.8 million, down from $7.7 million in the prior year. Operating income for the three months ended March 31, 2026, was $4,943,415, compared to $6,984,320 in the prior year. Interest expense for the three months ended March 31, 2026, was - $508,860, compared to - $387,318 in the prior year. Income tax expense for the three months ended March 31, 2026, was $1,004,168, compared to $1,265,288 in the prior year. The effective tax rate for the second quarter was 22.6%, up from 19.2% in the prior year. #### Operating Costs Operating expenses for the second quarter of 2026 were $6.5 million, compared to $4.3 million in the prior year. Research and development expenses for the three months ended March 31, 2026, were $1,789,348, compared to $867,228 in the prior year. Selling, general and administrative expenses for the three months ended March 31, 2026, were $4,702,222, compared to $3,415,675 in the prior year. #### Cash Flow Operating cash flow for the second quarter of 2026 was $2.3 million, an increase of 78% compared to the prior year period. Free cash flow for the second quarter of 2026 was $0.7 million. Operating cash flow for the first six months of 2026 was $10.5 million, compared to $3.1 million in the same period last year. Capital expenditures for the first six months of 2026 were $2.7 million, versus $1.8 million in the prior year period. Free cash flow for the first six months of 2026 was $7.7 million, compared to $1.3 million last year. Free cash flow over the trailing twelve-month period was more than $13.2 million. #### Balance Sheet and Liquidity Total debt as of March 31, 2026, was $55.1 million. Cash and cash equivalents as of March 31, 2026, were $6.8 million. Net debt as of March 31, 2026, was $48.3 million, an increase of $22.2 million from the year-ago period. The ratio of Net Debt to trailing twelve-month Adjusted EBITDA was 1.7x as of March 31, 2026, up modestly from 1.4x in the year-ago period. Total available liquidity as of March 31, 2026, was $49.8 million, including $6.8 million in cash and $43 million availability under its credit line. #### Operational Metrics Innovative Aerosystems, Inc. completed three acquisitions in recent months, including autopilot product line technology from Moog and two asset purchase and licensing agreements with Honeywell. These acquisitions are projected to contribute $10 million in annual revenue with a blended gross margin profile of approximately 50%. Innovative Aerosystems, Inc. deployed over $33 million toward strategic investments in the first half of fiscal 2026. New orders in the second quarter of fiscal 2026 were approximately $24.7 million. Backlog as of March 31, 2026, was approximately $87.0 million, up $7.4 million compared to the prior-year period. #### Outlook / Guidance Innovative Aerosystems, Inc. expects its business to continue on a favorable growth trajectory for the balance of the fiscal year. This growth is anticipated to be supported by continued strength across diverse end-markets, momentum in new product launches, and targeted investments. 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