Astronics Corp (ATRO) investor relations material

Executive summary

• Quarterly revenue reached $211.4 million, the second highest ever, with Aerospace sales at $192.7 million and Test segment at $18.7 million, driven by broad-based demand and improved supply chain efficiencies.

• Net loss for the quarter was $11.1 million, impacted by $32.6 million in refinancing-related charges, while adjusted EBITDA was $32.7 million (15.5% of sales), the highest since 2020.

• Bookings matched shipments at $210 million for the quarter, with a book-to-bill ratio of 1.0 and backlog at $646.7 million, supporting future revenue.

• Operating margin improved to 10.9% from 4.1% last year; adjusted operating margin reached 12.3%.

• Full-year 2025 revenue guidance was raised to $847–$857 million, with early 2026 outlook suggesting low double-digit revenue growth.

Financial highlights

• Gross profit increased 16.8% year-over-year to $64.5 million, with gross margin at 30.5%.

• Adjusted operating income grew 32.4% to $25.9 million; adjusted net income rose 59.5% to $19.4 million.

• SG&A expense fell by $3.1 million, mainly due to lower litigation costs, but included a $9.7 million reserve for a UK patent dispute.

• Interest expense declined by $3.3 million (53%) due to refinancing.

• Generated $34 million in cash from operations and $21 million in free cash flow for the quarter.

Outlook and guidance

• Q4 revenue expected to rise to $225–$235 million, with Test segment revenue in Q4 forecast at $20–$21 million.

• Full-year 2025 revenue guidance raised to $847–$857 million, a record level.

• 2026 projected to see at least 10% revenue growth, with formal guidance to be issued later.

• Army Test program (4549/T) anticipated to contribute significantly in 2026.

• Management expects continued strength in Aerospace, leveraging core competencies and acquisitions.