Astronics (ATRO) CJS Securities 25th Annual “New Ideas for the New Year” Investor Conference summary

Company overview and recent performance

• Focuses on aerospace (90% of sales) and test equipment (10%), with strong exposure to commercial transport, business jets, and military aircraft.

• Revenues rebounded from a pandemic low of $445M to nearly $800M in 2024, averaging over 20% annual growth in the last three years.

• Growth is expected to moderate in 2025, with revenue guidance of $820M–$860M, representing mid-single digit growth.

• Supply chain and labor challenges have eased, improving operational efficiency and stability.

Key programs and growth opportunities

• Won the $250M U.S. Army Radio Test Program, with full-rate production expected by late 2025.

• Major partner in the U.S. Army FLRAA program, developing electrical power systems for the Black Hawk replacement; significant long-term revenue potential.

• Business jet and commercial transport segments show upside potential due to growing backlogs and production rates.

• FLRAA engineering revenue of ~$45M expected to be split between 2025 and 2026; production phase could yield $1M+ per shipset.

• Radio Test Program to contribute $10M in engineering and $10–$15M in Q4 2025 production, pending timely orders.

Supply chain, tariffs, and inflation

• Electronics supply chain has improved, with much contract manufacturing shifted from China to other countries.

• Industry is better prepared to handle inflation and potential tariffs, with more flexible contract terms and willingness to renegotiate.

• Tariffs or geopolitical risks could be inflationary, but the industry is expected to adapt and protect margins.