The company also reported improved profitability in the quarter. Gundermann said operating income margin was 14.8% and adjusted EBITDA was 19% , which he called post-pandemic records. Astronics generated $27.6 million in cash from operations in the quarter and ended the period with $231 million of available liquidity after completing a planned transition from an asset-based lending facility to a cash flow-based revolving credit facility. Chairman, President and CEO Peter Gundermann said fourth-quarter reven ...

Astronics (NasdaqGS:ATRO) Q4 2025 Earnings call February 24, 2026 04:45 PM ET Company ParticipantsDeborah Pawlowski - Senior Managing DirectorNancy Hedges - CFOPeter Gundermann - Chairman, President, and CEOWilliam Gildea - Equity Research AssociateConference Call ParticipantsGautam Khanna - Aerospace & Defense Equity AnalystGreg Palm - Senior Research AnalystMichael Ciarmoli - Managing Director and Equity Research Analyst of Aerospace & DefenseOperatorGreetings, welcome to the Astronics Corporation fourth ...

Astronics (NasdaqGS:ATRO) Q4 2025 Earnings call February 24, 2026 04:45 PM ET Company ParticipantsDeborah Pawlowski - Senior Managing DirectorNancy Hedges - CFOPeter Gundermann - Chairman, President, and CEOWilliam Gildea - Equity Research AssociateConference Call ParticipantsGautam Khanna - Aerospace & Defense Equity AnalystGreg Palm - Senior Research AnalystMichael Ciarmoli - Managing Director and Equity Research Analyst of Aerospace & DefenseOperatorGreetings, welcome to the Astronics Corporation fourth ...

Astronics (NasdaqGS:ATRO) Q4 2025 Earnings call February 24, 2026 04:45 PM ET Speaker5Greetings, welcome to the Astronics Corporation fourth quarter and fiscal year 2025 financial results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Deborah Pawlowski, Investor Relations for Astronics. Than ...

Core Insights - Astronics Corporation's Aerospace segment is the primary revenue driver, contributing 89% of total revenues in 2024 and 93% in the first nine months of 2025, indicating strong demand across various markets [1][8] Group 1: Aerospace Segment Performance - The Aerospace segment focuses on designing and manufacturing products for the global aerospace industry, with revenue growth of 17% in 2024 and 11% in the first nine months of 2025, driven by sales in Commercial Transport and Military Aircraft markets [2][3] - Favorable demand conditions in both defense and commercial aerospace are supported by rising global defense budgets and increased airline investments in cabin upgrades, which align with Astronics' core product offerings [3] Group 2: Financial Metrics and Growth Indicators - The backlog for Astronics reached $572.5 million, a 6.5% increase from year-end 2024, enhancing revenue visibility and production planning [4][8] - Operating margin expanded by 360 basis points year over year in the first nine months of 2025, reflecting improved profitability due to rising Aerospace volumes [4] - Astronics shares have increased by 41.5% year to date, outperforming the industry, and the stock is currently trading at a price-to-sales ratio of 2.85, significantly lower than the industry average of 12.62, indicating undervaluation [7][10][8] Group 3: Future Estimates - The Zacks Consensus Estimate for Astronics' first-quarter 2026 EPS remains stable at 0.63, with similar stability for the current year estimate of 1.87, suggesting consistent performance expectations [11][12]

Key Takeaways ATRO's Q4 earnings are projected to rise 31.3% from the prior year quarter.Astronics' Aerospace unit, about 90% of revenues, likely gained on air travel demand.ATRO shares have surged 291.3% in a year, outpacing its industry and the sector.Astronics Corporation (ATRO) is slated to release fourth-quarter 2025 results on Feb. 24, 2026, after market close.The Zacks Consensus Estimate for earnings is pegged at 63 cents per share, suggesting an improvement of 31.3% from the prior-year quarter’s rep ...

Key Takeaways ATRO is expected to post 25% year-over-year EPS growth in Q4 on solid Aerospace sales.Astronics projects Q4 revenues of $225 and $235M, aided by Commercial Transport and Military Aircraft demand.ATRO benefits from backlog growth, margin expansion and lower interest and R&D expenses.Astronics Corporation (ATRO) is expected to witness an improvement in its bottom line when it reports fourth-quarter 2025 results. The Zacks Consensus Estimate for ATRO’s fourth-quarter earnings is pegged at 60 cent ...

Core Insights - Astronics Corporation (ATRO) emphasizes research and development (R&D) as a key driver of long-term growth and competitiveness, essential for winning and retaining long-term contracts through technological differentiation [1][4] Demand Conditions - Astronics is benefiting from favorable demand in both defense and commercial aerospace, with rising global defense budgets increasing military aircraft program demand and airlines investing in cabin upgrades due to expanding air travel [2] Financial Performance - Innovation through continuous R&D has led to stronger financial performance, evidenced by backlog growth and stabilizing margins in the Aerospace segment, with R&D expenses reported at $52.1 million in 2024 and $32.8 million in the first nine months of 2025 [3][8] Strategic Importance of R&D - R&D is deemed a strategic necessity for Astronics, driving cost efficiency, pricing power, product differentiation, and margin expansion, thereby positioning the company for sustained long-term value creation [4] Peer Comparison - Other companies like Kratos Defense & Security Solutions (KTOS) and Rocket Lab USA, Inc (RKLB) also prioritize R&D for long-term competitiveness, with Kratos focusing on unmanned systems and Rocket Lab on next-generation launch vehicles [5][6] Stock Performance - Astronics shares have increased by 126.4% over the past six months, outperforming the industry, and the stock is currently trading at a price-to-sales multiple of 2.83, significantly lower than the industry average of 12.48 [7][9] Revenue and Earnings Estimates - The Zacks Consensus Estimate predicts a 12.5% year-over-year increase in revenues for 2026 and a 36.4% increase in earnings, with recent upward adjustments in estimates for the first quarter of 2026 and 2026 earnings [10][11]

Core Viewpoint - Astronics is positioned for significant revenue growth, targeting nearly $1 billion in revenue for the current year, with expectations of 10%-15% growth and improved financial results in 2026, driven by key military and aerospace programs [2][4]. Revenue and Growth Projections - The company reported a revenue low of approximately $445 million in 2021, with an average growth rate of about 18% projected through 2025, tapering to around 8% in 2025 as it refines its cost structure [1] - Management anticipates fourth-quarter revenue to be a record, with expectations of results "much closer to 230" million, ultimately reaching "240" million [1][2] Business Segments and Market Exposure - Astronics operates primarily in the aerospace sector, with roughly 90% of its revenue derived from aerospace and the remaining 10% from its Test segment [3] - The business mix includes approximately 70% commercial transport, 10% military, 10% business jet, and 10% test, highlighting the company's significant exposure to commercial aviation [3] Key Growth Catalysts - Major catalysts include the military FLRAA electrical-distribution program, estimated at $1 million per shipset with a potential of 1,000-2,000 aircraft, and a U.S. Army radio test program valued at $215 million, expected to contribute $40-$50 million in annual revenue starting in H1 2026 [5][14][16] Operational Improvements - About 75% of revenue is expected to ship within a year, with improved lead times attributed to better supply chain conditions, particularly in electronics from Asia [6] - The company has a record backlog, which is notable given the reduction in lead times, indicating strong demand [6] Cabin Electronics and Connectivity - Approximately half of Astronics' business is related to in-flight entertainment and connectivity, working with over 200 airlines and major connectivity providers [7] - The company emphasizes the rapid turnover of cabin technology, creating recurring retrofit opportunities as airlines upgrade to keep pace with consumer electronics [8] Military and Test Segment Developments - The Test segment, valued at $70-$80 million, is now contributing positively after cost reductions, with a focus on a U.S. Army radio test program expected to begin in 2026 [16] - Astronics is transitioning from business jets to military programs, particularly through the FLRAA initiative, which is seen as a major opportunity for growth [14][15] Financial Strategies and Balance Sheet Management - The company recently refinanced its convertible notes, issuing a $225 million 0% convertible note to reduce potential dilution and lower its average cost of debt [18] - Management is focused on strengthening the balance sheet and has entered a new revolving credit facility with a higher limit [19]

Summary of Astronics (NasdaqGS:ATRO) FY Conference Call - February 12, 2026 Company Overview - **Industry**: Aerospace and Defense - **Company**: Astronics - **Business Segments**: - 90% Aerospace - 70% Commercial Transport - 10% Military - 10% Business Jet - 10% Test - **Revenue Expectation**: Projecting top-line revenue approaching $1 billion for the year, with a record fourth quarter reported [6][16] Core Business Insights - **In-Flight Entertainment and Connectivity**: Approximately 50% of revenue comes from in-flight entertainment and connectivity products, catering to over 200 airlines globally [6][7] - **Aircraft Lighting**: Astronics is one of the largest aircraft lighting companies, providing various lighting solutions for both cabin and exterior aircraft needs [7][10] - **Flight Critical Electrical Power**: Focus on advanced electrical systems for small aircraft, with significant opportunities in military programs like FLRAA [10][11] Financial Performance - **Growth Trends**: - Experienced a recovery from pandemic lows, with an average growth of 18% until 2025, followed by an 8% growth in 2025 [25][26] - Fourth quarter revenue increased to approximately $240 million, indicating a new baseline for future growth [27][32] - **Contribution Margins**: Expected contribution margins of 40% on incremental revenue [27][41] Market Dynamics - **Backlog and Lead Times**: - 75% of revenue expected to ship within a year, with a record backlog despite normalizing lead times [35][48] - Improvements in supply chain, particularly in electronics from Asia, have contributed to reduced lead times [49][53] Retrofit Business - **Market Recognition**: Airlines increasingly recognize the importance of in-flight entertainment and connectivity, leading to a strong retrofit market [58][62] - **Opportunity**: Retrofit opportunities are significant due to the shorter life cycles of in-flight entertainment systems compared to traditional aircraft components [75][79] Competitive Landscape - **Connectivity Technologies**: Astronics is adapting to the evolving landscape of connectivity technologies, including LEO satellites, and can work with various providers [106][121] - **Aftermarket Opportunities**: Anticipated aftermarket opportunities for the FLRAA program, similar to long-term production runs seen in other military aircraft [159] M&A Strategy - **Acquisition Approach**: Open to various acquisition strategies, focusing on product line extensions, customer relationships, and market share [166][171] - **Current Focus**: Prioritizing existing opportunities over new acquisitions, with a more robust balance sheet post-pandemic [171][172] Financial Management - **Convertible Debt**: Successfully refinanced convertible debt, reducing potential dilution and improving the balance sheet [185][190] - **Future Plans**: Committed to strengthening the balance sheet and managing dilution risks associated with convertible notes [196][203] Test Systems Segment - **U.S. Army Contract**: Awaiting production turn-on for a test station contract with the U.S. Army, which has faced delays but is expected to proceed soon [208][220] Conclusion - Astronics is positioned for growth in the aerospace sector, with strong demand for in-flight entertainment, retrofit opportunities, and military contracts. The company is focused on leveraging its existing capabilities while managing financial health and exploring strategic acquisitions.