Aug 13, 2026 earnings call — Acquisition and eVTOL contract drive strong quarter
Revenue was $20.7 million in Q3 with gross margin of 51.7%.
Revenue $0.0B (est $0.0B) · EPS $0.33 (est $0.22) · Next-quarter revenue outlook $0.0B–$0.0B
Key quotes
"In July, we announced the acquisition of Aiden Displays a leading developer and manufacturer of rugged display technologies serving defense, industrial, and other mission critical aerospace applications."
"Under the agreement, IA will develop the main display and avionics architecture on the eVTOL aircraft program."
"This is our fourth consecutive quarter with gross margins of at least 50%."
Analyst Q&A 3
eVTOL program win and supply chain
Q (Robert Brooks · Northland): He asked how the eVTOL sale happened and how long the sales process took, and whether the $50 million assumes all 400-plus units. He also asked what factors won the deal and whether their supply chain is affected.
A: They said the sales process has been about a year. They said they cannot comment on the contract value right now but know the customer has about 400 weapons in the backlog and that the $50 million assumes all 400-plus get shipped out. They said Liberty's customizable displays made the product attractive and their supply chain is different because they build circuit cards in house and qualify key components from multiple suppliers.
"That contract value is assuming all 400-plus get shipped out." — Shahram Askarpour (CEO)
50% gross margin outlook; new markets
Q (Josh Sullivan · Jones Trading Company): He asked how to think about the ~50% gross margin run rate going forward after acquisitions. He also asked whether the medical instrument exposure came with the acquisition and about regulatory or FAA opportunities from Farnborough, like altimeters.
A: They said prior guidance was around 45% to 50% and that margins will vary quarter to quarter by product mix, but around 50% is where they are heading. They said insourcing of circuit cards is ongoing and should make gross margins more uniform, and they are focused on EBITDA margins of 25% to 30%. They said Aiden has a small portion of revenue from medical instruments which opens opportunities, and that the FAA 5G-friendly radar altimeter mandate does not benefit them because they do not have a radar altimeter, though radar altimeters are on their acquisition radar.
"I think that is kind of where we have we have guidance we have given before was somewhere around 45% to 50%." — Shahram Askarpour (CEO)
growth drivers, F-16 ramp, eVTOL opportunity
Q (Greg Palm · Craig Hallum): He asked what drove the 40% organic growth across end markets and whether the F-16 ramp was faster or one-time. He also asked if the $50 million contracted value is tied to the 400 orders, whether they are sole source, and how big the air mobility/eVTOL opportunity is.
A: They said aging fleets increased replacement and repair services and that UMS2 shipments helped business aviation; military (besides F-16) and commercial air transport also contributed. They said last quarter's F-16 was down due to a mission display generator transition and this quarter was the first full production quarter, and they are hitting about $5 million per quarter which they think is sustainable. On the eVTOL program they said $50 million was a nominal number based on the 400 orders, they will be part of baseline certification and typically become sole source, the current phase is engineering development, and the air mobility market is large with many players where their ability to customize quickly is an advantage.
"And so, you know, we are hitting that $5 million range per quarter." — Shahram Askarpour (CEO)