Astronics (ATRO) Q4 2025 earnings summary

Executive summary

• Fourth quarter revenue reached a record $240.1 million, up 15.1% year-over-year, driven by strong Aerospace demand, operational execution, and the acquisition of Bühler Motor Aviation.

• Operating income margin hit 14.8% and adjusted EBITDA margin reached 19%, both post-pandemic records, supported by efficiency, pricing, and productivity initiatives.

• Bookings totaled $257.2 million for a book-to-bill of 1.07, with year-end backlog at a record $674.5 million.

• Net income was $29.6 million, or $0.78 per diluted share, compared to a loss in the prior year.

• Cash from operations was $27.6 million for the quarter and $74.8 million for the year.

Financial highlights

• Full-year sales grew 8.4% to $862.1 million; Q4 gross profit increased nearly 29% to $80 million, with gross margin expanding to 33.3% in Q4 and 29.9% for the year.

• Q4 operating income rose to $35.5 million from $8.9 million a year ago; adjusted operating income was $38.3 million.

• Adjusted net income for Q4 was $28.5 million, or $0.75 per diluted share, up 62.5% year-over-year.

• Interest expense declined 18.5% due to refinancing; tax expense fell due to a valuation allowance reversal.

• Capital expenditures were $11.8 million in Q4 and $31.7 million for the year.

Outlook and guidance

• 2026 revenue guidance is $950–$990 million, representing 12.5%–15% growth over 2025.

• Q1 2026 sales expected between $220–$230 million, with second-half quarterly sales above $250 million.

• Approximately 79% of year-end backlog expected to convert to revenue in the next 12 months.

• Margin expansion expected to continue, targeting sustainable high teens operating margins.

• Planned 2026 capital expenditures of $40–$50 million, plus $14–$18 million for ERP implementation.