The company was founded in 1940 by Harald Thiis-Evensen in Oslo. The company HQ is now in Porsgrunn.
Isola is organized as a concern with Isola Holding AS as the parent company. The Norwegian magazine Kapital ranked Isola as the 455th largest company in Norway in 2020. Isola has manufacturing locations in Norway and the Czech Republic.
In 2012, Erna Solberg stated that "Isola is an example of how important innovation is for Norwegian industry to secure its competitiveness into the future". A former Isola factory site in Brevik, Norway was sold in 2014 and is being redeveloped for housing. Isola entered into the solar market in 2020 and created a partnership with utility company Skagerak Energi in 2021.