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Astronics (ATRO) investor relations material
Astronics TD Cowen 47th Annual Aerospace & Defense Conference summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Business overview and market positioning
Focuses 90% on aerospace, with 70% in commercial transport, 10% military, 10% business jet, and 10% test segments.
Expects top-line revenue near $1 billion, with 10%-15% growth and improved income in 2026.
Half of business comes from in-flight entertainment and connectivity, serving over 200 airlines and all major OEMs.
Major product lines include aircraft lighting and flight critical electrical power for small aircraft, military, and drones.
Test segment contributes $70-$80 million, with a significant U.S. Army radio test contract expected to add $40-$50 million annually starting first half of 2026.
Financial performance and growth drivers
Q4 was a record quarter, continuing a trend of strong growth since the pandemic low of $445 million in 2021.
Average growth of 18% up to 2025, with 8% in 2025 as margins improved.
Q4 revenue reached $230-$240 million, establishing a new base for 2026.
75% of revenue ships within a year, with a mix of book-and-ship business.
Backlog remains at record levels, supported by improved supply chain, especially electronics from Asia.
Product and technology trends
Retrofit business is strong, driven by airlines' need to upgrade in-flight entertainment and power systems every 5-7 years.
Wide-body aircraft have higher penetration of seat-back displays; narrow-body offers significant aftermarket opportunity.
Constant technology churn in connectivity, with adaptability to LEO, KU, and KA satellite systems.
Anticipates wireless charging as the next evolution in cabin power solutions.
Acts as a liaison between consumer electronics and airlines to anticipate and integrate new technologies.
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