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Astronics Corporation Reports 12% Sales Growth for First Quarter 2026May 12, 2026 4:15 PM
Business Wire First quarter sales increased 12.0% to $230.6 million Achieved first quarter net income of $25.5 million, or $0.67 per diluted share; adjusted EBITDA1 was $37.9 million, or 16.4% of sales Aerospace operating margin expanded to 16.5%; adjusted Aerospace operating margin1 was 17.4% Record quarterly bookings of $290.4 million for book-to-bill of 1.26 and record backlog of $734.3 million Generated $10.6 million in cash from operations Increasing 2026 revenue guidance to a range of $970 million to $1 billion Astronics Corporation (Nasdaq: ATRO) (“Astronics” or the “Company”), a leading supplier of advanced technologies and products to the global aerospace, defense, and other mission critical industries, today reported financial results for the three months ended April 4, 2026. Financial results include the acquisition of Bühler Motor Aviation (“BMA”) on October 13, 2025. Peter J. Gundermann, Chairman, President and Chief Executive Officer, commented, “We are off to a strong start in 2026 with strong growth, expanded margins and record bookings and backlog. Our team’s focus on operational execution combined with higher volume delivered adjusted EBITDA1 margin of 16.4%. Demand across markets for our products remains robust, as evidenced by record bookings that were driven by strength in both Aerospace and Test. Our activity level is expected to pick up noticeably in the coming quarters and we believe we are well-positioned to capitalize on the opportunities ahead.” First Quarter Results Three Months Ended ($ in thousands) April 4, 2026 March 29, 2025 % Change Sales $ 230,619 $ 205,936 12.0 % Gross profit $ 75,133 $ 60,849 23.5 % Gross margin 32.6 % 29.5 % Income from operations $ 27,230 $ 13,137 107.3 % Operating margin % 11.8 % 6.4 % Net income $ 25,540 $ 9,528 168.1 % Net income % 11.1 % 4.6 % Adjusted operating income2 $ 29,560 $ 22,619 30.7 % Adjusted operating margin %2 12.8 % 11.0 % Adjusted net income2 $ 22,501 $ 16,973 32.6 % Adjusted EBITDA2 $ 37,901 $ 30,739 23.3 % Adjusted EBITDA margin %2 16.4 % 14.9 % First Quarter 2026 Results (compared with the prior-year period, unless noted otherwise) Growth in sales was driven by the Aerospace segment’s continued strength in demand primarily from the Commercial Transport market. Aerospace sales increased $22.4 million, or 11.7%, while Test Systems sales grew $2.2 million, or 15.4%. Gross profit increased $14.3 million to $75.1 million, or 32.6% of sales, an improvement over gross margin of 29.5% in the comparator quarter. Gross profit growth and margin expansion were primarily attributable to higher volume, improved productivity, and a $2.8 million catch-up of profit on the MV-75 program based on revised program estimates. This was partially offset by a $1.7 million increase in tariff expenses. In the prior year, first quarter consolidated sales and gross profit was negatively impacted by a $1.9 million revision of estimated costs to complete a long-term mass transit contract in the Test Systems segment. Selling, general and administrative expenses (“SG&A”) decreased $0.8 million. Litigation-related expenses were down $1.2 million, and the prior-year period included a $6.2 million reserve adjustment to the damage award relating to the patent infringement dispute in the UK. Appeals to the UK damage award are scheduled to be heard in July 2026. These decreases were mostly offset by higher wages and benefits, higher incentive-based compensation expenses driven by increased profitability, and incremental expenses related to the acquired BMA business. R&D was up $1.0 million reflecting the timing of projects. Operating margin expanded 540 basis points and adjusted operating margin2 expanded 180 basis points as a result of higher volume and improved productivity in the Aerospace segment, coupled with savings from the recent Test Systems cost rationalization activities. Interest expense was down $0.8 million, or 25.8%, on lower rates following the September 2025 refinancing activities. Tax benefit in the quarter of $0.8 million was related to a $2.7 million discrete adjustment for the expected benefit of a stock-based compensation deduction, a valuation allowance reversal, and research and development costs expected to be expensed. Tax expense in the prior year period was partially offset by a $1.1 million discrete adjustment to reverse certain federal and state deferred tax liabilities. Consolidated net income of $0.67 per diluted share improved from $0.26 per diluted share in the prior-year period from stronger operating profit, lower interest expense and lower tax. Adjusted EBITDA2 increased 23.3% to $37.9 million, and adjusted EBITDA margin2 expanded 150 basis points to 16.4% of consolidated sales. Record bookings of $290.4 million in the quarter resulted in a book-to-bill ratio of 1.26:1. For the trailing twelve months, bookings totaled $935.1 million and the book-to-bill ratio was 1.05:1. Backlog at the end of the quarter was $734.3 million, the highest in the Company’s history. Aerospace Segment Review (compared with the prior-year period, unless noted otherwise) Aerospace segment sales of $213.8 million increased $22.4 million, or 11.7%. Sales in the Commercial Transport market increased $18.9 million, or 13.7%. Growth was primarily related to increased demand for seat motion and lighting and safety products. General Aviation sales increased $6.2 million, or 40.7%, to $21.4 million due to higher inflight entertainment & connectivity (“IFEC”) product sales to the VVIP market. Military Aircraft sales remained consistent with the prior-year period. Other sales decreased $2.9 million as the Company has wound down its non-core contract manufacturing arrangements. Aerospace segment operating profit of $35.3 million, or 16.5% of sales, improved over the prior-year period reflecting the leverage gained on higher volume, improving production efficiencies, the cumulative catch-up of profit on the MV-75 program based on revised program estimates, and a $7.0 million decrease in litigation-related expenses and legal reserve adjustments related to the UK patent dispute previously discussed. Adjusted Aerospace operating profit2 increased 20.0% to $37.2 million, or 17.4% of sales, a 120-basis point expansion over the comparator quarter. Aerospace bookings were $264.4 million for a book-to-bill ratio of 1.24:1. Record backlog for the Aerospace segment was $651.4 million at quarter end. Mr. Gundermann commented, “Our Aerospace business had a solid first quarter with our second-highest quarterly sales total, trailing only the preceding fourth quarter. Strong sales led to a 16.5% operating margin. Market demand for our products remains strong and we are well positioned to set new records in the coming periods.” Test Systems Segment Review (compared with the prior-year period, unless noted otherwise) Test Systems segment sales of $16.8 million were up $2.2 million from the comparator quarter in 2025. Segment sales in the prior-year period were negatively impacted by a $1.9 million revision of estimated costs to complete a certain long-term mass transit Test contract reducing revenue recognized in the period. Test Systems segment operating profit was $0.4 million, compared with an operating loss of $2.2 million in the first quarter of 2025. Test Systems profitability, while improving, continues to be negatively affected by mix and under absorption of fixed costs at current volume levels. Bookings for the Test Systems segment in the quarter were $26.1 million. The book-to-bill ratio for the quarter was 1.55:1. Backlog for the Test Systems segment was $83.0 million at quarter end. Mr. Gundermann commented, “Results in our Test business continue to confirm that our significant cost-cutting and efficiency actions have been effective, and we expect results to improve significantly as the radio test program for the U.S. Army begins. We understand that a production award is on track to be issued in the coming weeks, with the production phase of the program accelerating in the second half of the year.” Balance Sheet and Liquidity Cash provided by operations in the first quarter of 2026 was $10.6 million, reflecting higher cash earnings offset by higher working capital requirements, including higher inventory levels to support anticipated revenue growth in the coming quarters. Capital expenditures in the quarter were $11.2 million. Elevated capital expenditures reflect necessary catch-up investments on previously deferred spending as well as the consolidation of operations and capacity improvement in a new Seattle facility. The Company expects to be free cash flow positive for the remainder of the year. Long-term debt was relatively unchanged at quarter-end at $334.9 million. The Company had available liquidity of $231.8 million at quarter-end, including $19.1 million in available cash. 2026 Outlook Astronics expects 2026 revenue for the year to be in the range of $970 million to $1 billion, which would surpass the record level sales of 2025. The midpoint of the revised range would be a 14% increase over 2025 sales. Record backlog at the end of the first quarter was $734.3 million, of which approximately 81% is expected to drive revenue over the next twelve months. Mr. Gundermann concluded, “We expect second quarter sales of $245 million to $250 million, which will be a new record for the Company, and we expect our revenue rate in the second half to rise further from there. Demand remains strong for our products and capabilities, and all indications point to a very strong 2026 for our Company.” Planned capital expenditures in 2026 are expected to be in the range of $40 million to $45 million driven largely by costs associated with the Seattle operation consolidation, which will conclude in the second quarter. In addition, the Company is in the early phases of implementing a new global resource planning system. Astronics expects to spend approximately $15 million to $17 million on this project in 2026, excluding reallocated internal operating costs. Approximately $2 million to $3 million of the investment will be incremental operating expense with the remainder to be capitalized and reported as a cash outflow from operations. The total cost of the project over five years, excluding reallocated internal operating expenses, is expected to be approximately $35 million to $40 million of which $25 million is expected to be capitalized. First Quarter 2026 Webcast and Conference Call The Company will host a teleconference today at 4:45 p.m. ET. During the teleconference, management will review the financial and operating results for the period and discuss Astronics’ corporate strategy and outlook. A question-and-answer session will follow. The Astronics conference call can be accessed by calling (201) 493-6784. The listen-only audio webcast can be monitored at investors.astronics.com. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13759858. The telephonic replay will be available from 8:00 p.m. on the day of the call through Tuesday, May 26, 2026. The webcast replay can be accessed via the investor relations section of the Company’s website where a transcript will also be posted once available. About Astronics Corporation Astronics Corporation (Nasdaq: ATRO) serves the world’s aerospace, defense, and other mission-critical industries with proven innovative technology solutions. Astronics works side-by-side with customers, integrating its array of power, connectivity, lighting, structures, interiors, and test technologies to solve complex challenges. For over 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe manufacturers, airlines, military branches, completion centers, and Fortune 500 companies rely on the collaborative spirit and innovation of Astronics. The Company’s strategy is to increase its value by developing technologies and capabilities that provide innovative solutions to its targeted markets. Safe Harbor Statement This news release contains forward-looking statements as defined by the Securities Exchange Act of 1934. One can identify these forward-looking statements by the use of the words “expect,” “anticipate,” “plan,” “may,” “will,” “estimate,” “feeling” or other similar expressions and include all statements with regard to the Company’s 2026 outlook including the level of activity in coming quarters, the expectation of setting new records in coming periods, the timing of the receipt of production orders for U.S. Army radio test set program, the level of profitability contribution from the Test segment with its onset, and the rate of revenue growth in the second half of 2026. The forward-looking statements also include all statements related to achieving any revenue or profitability expectations, expectations of continued growth, the level of liquidity, the level of cash generation and free cash flow, the level of demand by customers and markets and the amount of expected capital expenditures, the amount of investment in an ERP system, the amount of backlog to be recognized as revenue over the next twelve months, and statements regarding the amount of opportunities available to be executed. Because such statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. Important factors that could cause actual results to differ materially from what may be stated here include the trend in growth with passenger power and connectivity on airplanes, the state of the aerospace and defense industries, the market acceptance of newly developed products, internal production capabilities, the timing of orders received, the status of customer certification processes and delivery schedules, the demand for and market acceptance of new or existing aircraft which contain the Company’s products, the impact of regulatory activity and public scrutiny on production rates of a major U.S. aircraft manufacturer, the need for new and advanced test equipment, customer preferences and relationships, the effectiveness of the Company’s supply chain and execution on opportunities, and other factors which are described in filings by Astronics with the Securities and Exchange Commission. Except as required by applicable law, the Company assumes no obligation to update forward-looking information in this news release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise. Use of Non-GAAP Financial Metrics and Additional Financial Information In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Astronics provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. Astronics management uses these measures for reviewing the financial results of Astronics for budget planning purposes and for making operational and financial decisions. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, help investors evaluate Astronics core operating and financial performance and business trends consistent with how management evaluates such performance and trends. FINANCIAL TABLES FOLLOW ASTRONICS CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS DATA (Unaudited, $ in thousands except per share amounts) Three Months Ended 4/4/2026 3/29/2025 Sales $ 230,619 $ 205,936 Cost of products sold 155,486 145,087 Gross profit 75,133 60,849 Gross margin 32.6 % 29.5 % Research and development expenses 12,089 11,067 Selling, general and administrative 35,814 36,645 SG&A % of sales 15.5 % 17.8 % Income from operations 27,230 13,137 Operating margin 11.8 % 6.4 % Other expense (income) 109 (187 ) Interest expense, net 2,336 3,150 Income before tax 24,785 10,174 Income tax (benefit) expense (755 ) 646 Net income $ 25,540 $ 9,528 Net income % of sales 11.1 % 4.6 % Basic earnings per share: $ 0.71 $ 0.27 Diluted earnings per share:3 $ 0.67 $ 0.26 Weighted average diluted shares outstanding (in thousands) 38,223 42,957 ASTRONICS CORPORATION CONSOLIDATED BALANCE SHEETS ($ in thousands) (unaudited) 4/4/2026 12/31/2025 ASSETS Cash and cash equivalents $ 11,867 $ 18,180 Accounts receivable, net of allowance for estimated credit losses 217,024 204,672 Inventories 211,945 196,860 Prepaid expenses and other current assets 27,792 18,027 Total current assets 468,628 437,739 Property, plant and equipment, net of accumulated depreciation 115,481 107,078 Operating right-of-use assets 32,626 32,269 Other assets 13,742 11,316 Intangible assets, net of accumulated amortization 52,320 55,353 Goodwill 64,346 62,923 Total assets $ 747,143 $ 706,678 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 55,873 $ 41,080 Current operating lease liabilities 5,986 5,802 Accrued expenses and other current liabilities 66,183 68,324 Customer advances and deferred revenue 29,666 26,069 Total current liabilities 157,708 141,275 Long-term debt 334,885 334,451 Long-term operating lease liabilities 38,239 38,101 Other liabilities 54,609 52,777 Total liabilities 585,441 566,604 Shareholders’ equity: Common stock 386 385 Accumulated other comprehensive loss (5,438 ) (4,410 ) Other shareholders’ equity 166,754 144,099 Total shareholders’ equity 161,702 140,074 Total liabilities and shareholders’ equity $ 747,143 $ 706,678 ASTRONICS CORPORATION CONSOLIDATED CASH FLOWS DATA Three Months Ended (Unaudited, $ in thousands) 4/4/2026 3/29/2025 Cash flows from operating activities: Net income $ 25,540 $ 9,528 Adjustments to reconcile net income to cash from operating activities: Non-cash items: Depreciation and amortization 5,894 5,588 Amortization of deferred financing fees 607 602 Provisions for non-cash losses on inventory and receivables 1,441 1,728 Equity-based compensation expense 2,556 2,345 Deferred tax expense (benefit) 62 (1,125 ) Operating lease non-cash expense 1,463 1,550 Non-cash litigation provision adjustment — 6,228 Other 681 (214 ) Cash flows from changes in operating assets and liabilities: Accounts receivable (13,420 ) (2,037 ) Inventories (16,404 ) 515 Accounts payable 14,997 2,867 Operating lease liabilities (1,515 ) (1,071 ) Accrued expenses (6,655 ) (11,514 ) Income taxes (982 ) 959 Cloud computing implementation costs (2,370 ) — Customer advance payments and deferred revenue 3,614 2,776 Supplemental retirement plan liabilities (181 ) (101 ) Other assets and liabilities (4,722 ) 2,018 Net cash provided by operating activities 10,606 20,642 Cash flows from investing activities: Capital expenditures (11,160 ) (2,105 ) Net cash used by investing activities (11,160 ) (2,105 ) Cash flows from financing activities: Proceeds from long-term debt 30,000 1,143 Principal payments on long-term debt (30,000 ) (10,000 ) Financing-related costs — (740 ) Stock award activity (5,441 ) (1,730 ) Other (60 ) (44 ) Net cash used by financing activities (5,501 ) (11,371 ) Effect of exchange rates on cash (258 ) 354 (Decrease) increase in cash and cash equivalents and restricted cash (6,313 ) 7,520 Cash and cash equivalents and restricted cash at beginning of period 18,180 18,428 Cash and cash equivalents and restricted cash at end of period $ 11,867 $ 25,948 Supplemental disclosure of cash flow information Non-cash investing activities: Capital expenditures in accounts payable $ 425 $ — Interest paid $ 2,668 $ 2,724 Income taxes refunded, net of payments $ 195 $ 827 ASTRONICS CORPORATION SEGMENT SALES AND PROFIT (Unaudited, $ in thousands) Three Months Ended 4/4/2026 3/29/2025 Sales Aerospace $ 213,843 $ 191,388 Less inter-segment (23 ) (13 ) Total Aerospace 213,820 191,375 Test Systems 16,824 14,592 Less inter-segment (25 ) (31 ) Total Test Systems 16,799 14,561 Total consolidated sales 230,619 205,936 Segment gross profit and margins Aerospace 70,693 58,483 33.1 % 30.6 % Test Systems 4,440 2,366 26.4 % 16.2 % Total gross profit 75,133 60,849 32.6 % 29.5 % Segment operating profit and margins Aerospace 35,332 22,264 16.5 % 11.6 % Test Systems 403 (2,223 ) 2.4 % (15.3 )% Total segment operating profit 35,735 20,041 Interest expense 2,336 3,150 Corporate expenses and other 8,614 6,717 Income before taxes $ 24,785 $ 10,174 Beginning in the current year, the Company reorganized its product line structure to align with changes in internal reporting. Refer to the Supplemental Prior Period Tables within this release for prior-year recast of disaggregation of sales by product line to conform with the updated, current-period presentation. Please refer to the Company’s Quarterly Report on Form 10-Q for the quarter ended April 4, 2026 for additional details. ASTRONICS CORPORATION SALES BY MARKET (Unaudited, $ in thousands) Three Months Ended 2026 YTD 4/4/2026 3/29/2025 % Change % of Sales Aerospace Segment Commercial Transport $ 156,419 $ 137,542 13.7 % 67.8 % Military Aircraft 33,502 33,263 0.7 % 14.5 % General Aviation 21,449 15,243 40.7 % 9.3 % Other 2,450 5,327 (54.0 )% 1.1 % Aerospace Total 213,820 191,375 11.7 % 92.7 % Test Systems Segment Government & Defense 16,799 14,561 15.4 % 7.3 % Total Sales $ 230,619 $ 205,936 12.0 % SALES BY PRODUCT LINE4 (Unaudited, $ in thousands) Three Months Ended Recast 2026 YTD 4/4/2026 3/29/2025 % Change % of Sales Aerospace Segment Inflight Entertainment & Connectivity $ 110,748 $ 103,110 7.4 % 48.1 % Lighting & Safety 52,807 51,957 1.6 % 22.9 % Flight Critical Electrical Power 24,763 21,314 16.2 % 10.7 % Seat Motion 19,879 6,672 197.9 % 8.6 % Other 5,623 8,322 (32.4 )% 2.4 % Aerospace Total 213,820 191,375 11.7 % 92.7 % Test Systems 16,799 14,561 15.4 % 7.3 % Total $ 230,619 $ 205,936 12.0 % ASTRONICS CORPORATION ORDER AND BACKLOG TREND (Unaudited, $ in thousands) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Trailing Twelve Months 6/28/2025 9/27/2025 12/31/2025 4/4/2026 4/4/2026 Sales Aerospace $ 193,626 $ 192,725 $ 219,593 $ 213,820 $ 819,764 Test Systems 11,052 18,722 20,474 16,799 67,047 Total Sales $ 204,678 $ 211,447 $ 240,067 $ 230,619 $ 886,811 Bookings Aerospace $ 150,636 $ 191,859 $ 237,327 $ 264,381 $ 844,203 Test Systems 26,390 18,532 19,902 26,067 90,891 Total Bookings $ 177,026 $ 210,391 $ 257,229 $ 290,448 $ 935,094 Backlog5 Aerospace $ 570,913 $ 572,459 $ 600,803 $ 651,364 Test Systems 74,454 74,264 73,692 82,960 Total Backlog $ 645,367 $ 646,723 $ 674,495 $ 734,324 N/A Book:Bill Ratio Aerospace 0.78 1.00 1.08 1.24 1.03 Test Systems 2.39 0.99 0.97 1.55 1.36 Total Book:Bill 0.86 1.00 1.07 1.26 1.05 ASTRONICS CORPORATION RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (Unaudited, $ in thousands) Consolidated Three Months Ended 4/4/2026 3/29/2025 Net income $ 25,540 $ 9,528 Add back (deduct): Interest expense 2,336 3,150 Income tax (benefit) expense (755 ) 646 Depreciation and amortization expense 5,894 5,588 Equity-based compensation expense 2,556 2,345 Restructuring-related charges including severance — 279 ERP implementation consulting expenses 174 — Legal reserve, settlements and recoveries — 6,228 Litigation-related legal expenses 1,779 2,975 Acquisition-related expenses 186 — Warranty reserve 191 — Adjusted EBITDA $ 37,901 $ 30,739 Sales $ 230,619 $ 205,936 Adjusted EBITDA margin % 16.4 % 14.9 % Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by sales. Adjusted EBITDA and Adjusted EBITDA Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company’s financial statements. ASTRONICS CORPORATION RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME (Unaudited, $ in thousands) Consolidated Three Months Ended 4/4/2026 3/29/2025 Income from operations $ 27,230 $ 13,137 Add back: Restructuring-related charges including severance — 279 ERP implementation consulting expenses 174 — Legal reserve, settlements and recoveries — 6,228 Litigation-related legal expenses 1,779 2,975 Acquisition-related expenses 186 — Warranty reserve 191 — Adjusted operating income $ 29,560 $ 22,619 Sales $ 230,619 $ 205,936 Operating margin 11.8 % 6.4 % Adjusted operating margin 12.8 % 11.0 % Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current periods’ income from operations to the historical periods’ income from operations and operating margin, as well as facilitates a more meaningful comparison of the Company’s income from operations and operating margin to that of other companies. ASTRONICS CORPORATION RECONCILIATION OF NET INCOME AND DILUTED EARNINGS PER SHARE TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (Unaudited, $ in thousands except per share amounts) Consolidated Three Months Ended 4/4/2026 3/29/2025 Net income $ 25,540 $ 9,528 Add back (deduct): Amortization of intangibles 2,887 2,975 Restructuring-related charges including severance — 279 ERP implementation consulting expenses 174 — Legal reserve, settlements and recoveries — 6,228 Litigation-related legal expenses 1,779 2,975 Acquisition-related expenses 186 — Warranty reserve 191 — Normalize tax rate6 (8,256 ) (5,012 ) Adjusted net income $ 22,501 $ 16,973 Weighted average diluted shares outstanding (in thousands) 38,223 42,957 Diluted earnings per share $ 0.67 $ 0.26 Adjusted diluted earnings per share7 $ 0.59 $ 0.44 Adjusted Net Income and Adjusted Diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Net Income and Adjusted Diluted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Net Income and Adjusted Diluted EPS, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current periods’ net income and diluted EPS to the historical periods’ net income and diluted EPS, as well as facilitates a more meaningful comparison of the Company’s net income and diluted EPS to that of other companies. The Company believes that presenting Adjusted Diluted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company’s strategy to grow through acquisitions as well as organically. ASTRONICS CORPORATION RECONCILIATION OF SEGMENT OPERATING PROFIT (LOSS) TO ADJUSTED SEGMENT OPERATING PROFIT (LOSS) (Unaudited, $ in thousands) Three Months Ended 4/4/2026 3/29/2025 Aerospace operating profit $ 35,332 $ 22,264 Restructuring-related charges including severance — 279 ERP implementation consulting expenses 174 — Legal reserve, settlements and recoveries — 6,228 Litigation-related legal expenses 1,511 2,244 Warranty reserve 191 — Adjusted Aerospace operating profit $ 37,208 $ 31,015 Aerospace sales $ 213,820 $ 191,375 Aerospace margin 16.5 % 11.6 % Adjusted Aerospace margin 17.4 % 16.2 % Test Systems operating profit (loss) $ 403 $ (2,223 ) Litigation-related legal expenses 48 731 Adjusted Test Systems operating profit (loss) $ 451 $ (1,492 ) Test Systems sales $ 16,799 $ 14,561 Test Systems margin 2.4 % (15.3 )% Adjusted Test Systems margin 2.7 % (10.2 )% Adjusted Segment Operating Profit is defined as segment operating profit as reported, adjusted for certain items. Adjusted Segment Margin is defined as Adjusted Segment Operating Profit divided by segment sales. Adjusted Segment Operating Profit and Adjusted Segment Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Segment Operating Profit and Adjusted Segment Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Segment Operating Profit and Adjusted Segment Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current periods’ segment operating profit to the historical periods’ segment operating profit and segment margin, as well as facilitates a more meaningful comparison of the Company’s segment operating profit and segment margin to that of other companies. Supplemental Prior Period Tables The following tables provide a prior-year recast of the disaggregation of sales by product line by quarter for the years ending December 31, 2025 and 2024, to conform with the updated, current-period presentation. SALES BY PRODUCT LINE8 (Unaudited, $ in thousands) Recast Three Months Ended Year Ended 2025 YTD 3/29/2025 6/28/2025 9/27/2025 12/31/2025 12/31/2025 % of Sales Aerospace Segment Inflight Entertainment & Connectivity $ 103,110 $ 105,902 $ 105,780 $ 119,447 $ 434,239 50.4 % Lighting & Safety 51,957 56,100 52,807 55,719 216,583 25.1 % Flight Critical Electrical Power 21,314 15,832 16,747 19,813 73,706 8.5 % Seat Motion 6,672 10,217 11,721 18,632 47,242 5.5 % Other 8,322 5,575 5,670 5,982 25,549 3.0 % Aerospace Total 191,375 193,626 192,725 219,593 797,319 92.5 % — Test Systems 14,561 11,052 18,722 20,474 64,809 7.5 % — Total $ 205,936 $ 204,678 $ 211,447 $ 240,067 $ 862,128 100.0 % Recast Three Months Ended Year Ended 2024 YTD 3/30/2024 6/29/2024 9/28/2024 12/31/2024 12/31/2024 % of Sales Aerospace Segment Inflight Entertainment & Connectivity $ 89,620 $ 94,065 $ 94,838 $ 105,156 $ 383,679 48.2 % Lighting & Safety 44,067 48,654 48,874 46,760 188,355 23.7 % Flight Critical Electrical Power 14,396 19,045 17,871 17,056 68,368 8.6 % Seat Motion 6,870 7,353 9,416 11,590 35,229 4.4 % Other 8,685 7,826 6,555 7,987 31,053 3.9 % Aerospace Total 163,638 176,943 177,554 188,549 706,684 88.8 % — Test Systems 21,436 21,171 26,144 19,991 88,742 11.2 % — Total $ 185,074 $ 198,114 $ 203,698 $ 208,540 $ 795,426 100.0 % 1 Adjusted EBITDA, adjusted EBITDA margin, and adjusted segment operating margin are Non-GAAP financial measures. Please see the reconciliation of GAAP to non-GAAP financial measures in the tables that accompany this release. 2 Adjusted operating income, adjusted operating margin, adjusted segment operating profit, adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted diluted earnings per share (“EPS”) are Non-GAAP financial measures. Please see the reconciliation of GAAP to non-GAAP financial measures in the tables that accompany this release. 3 In addition to incremental shares from stock awards, weighted average diluted shares for the quarter ended April 4, 2026 reflects 0.992 million assumed shares underlying the premium on the 0% convertible bonds, to the extent the average stock price for the quarter ($72.38) exceeded the $54.87 conversion price. Note that because of the capped call, there is no effective dilution to shareholders resulting from the 0% convertible bonds unless and until the share price exceeds $83.41. The diluted EPS calculation for the quarter ended April 4, 2026 excludes the effect of the 5.5% Notes because the effect is anti-dilutive. The diluted EPS calculation for the quarter ended March 29, 2025 reflects 7.208 million assumed shares underlying the 5.5% convertible bonds. 4 Inflight Entertainment & Connectivity (“IFEC”) is a combination of the previous Avionics and Systems Certification product lines, as well as cabin power products which were included in the previous Electrical Power & Motion product line. The remainder of the previous Electrical Power & Motion product line is now split into two discrete product lines, Flight Critical Electrical Power and Seat Motion. Lighting and Safety remains consistent and Structures is now reported within Other Aerospace revenue. 5 Aerospace backlog of approximately $2.4 million and $10.6 million was added in the third and fourth quarters of 2025, respectively, in connection with the acquisitions of Envoy Aerospace and Bühler Motor Aviation. 6 Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax. 7 In addition to incremental shares from stock awards, weighted average diluted shares for the quarter ended April 4, 2026 reflects 0.992 million assumed shares underlying the premium on the 0% convertible bonds, to the extent the average stock price for the quarter ($72.38) exceeded the $54.87 conversion price. Note that because of the capped call, there is no effective dilution to shareholders resulting from the 0% convertible bonds unless and until the share price exceeds $83.41. The diluted EPS calculation for the quarter ended April 4, 2026 excludes the effect of the 5.5% Notes because the effect is anti-dilutive. The diluted EPS calculation for the quarter ended March 29, 2025 reflects 7.208 million assumed shares underlying the 5.5% convertible bonds. 8 Inflight Entertainment & Connectivity (“IFEC”) is a combination of the previous Avionics and Systems Certification product lines, as well as cabin power products which were included in the previous Electrical Power & Motion product line. The remainder of the previous Electrical Power & Motion product line is now split into two discrete product lines, Flight Critical Electrical Power and Seat Motion. Lighting and Safety remains consistent and Structures is now reported within Other Aerospace revenue. View source version on businesswire.com: https://www.businesswire.com/news/home/20260512955007/en/ For more information, contact:
Company:
Nancy L. Hedges, Chief Financial Officer
Phone: (716) 805-1599
Email: invest@astronics.com Investor Relations:
Deborah K. Pawlowski, Alliance Advisors LLC
Phone: (716) 843-3908
Email: dpawlowski@allianceadvisors.com Original: Astronics Corporation Reports 12% Sales Growth for First Quarter 2026
US Market News
4 months ago
Astronics Corporation Reports Strong Fourth Quarter Finish to 2025February 24, 2026 4:15 PM
Business Wire
Fourth quarter sales grew 15.1% to a record $240.1 million driven by record Aerospace sales of $219.6 million, a 16.5% year over year increase
Achieved fourth quarter net income of $29.6 million, or $0.78 per diluted share; adjusted EBITDA1 was $45.7 million, or 19.0% of sales
Aerospace operating margin expanded to 19.0%, bolstered by favorable mix; adjusted Aerospace operating margin1 was 19.8%
Booked $257.2 million in orders; ended 2025 with record backlog of $674.5 million
Solid cash generation with $27.6 million in cash from operations in the quarter and $74.8 million for the year
Maintained 2026 revenue guidance at $950 million to $990 million
Astronics Corporation (Nasdaq: ATRO) (“Astronics” or the “Company”), a leading supplier of advanced technologies and products to the global aerospace, defense, and other mission critical industries, today reported financial results for the three and twelve months ended December 31, 2025. Financial results include the acquisition of Bühler Motor Aviation (“BMA”) on October 13, 2025.
Peter J. Gundermann, Chairman, President and Chief Executive Officer, commented, “We made excellent progress in 2025 and ended the year with a strong fourth quarter. Robust demand across our aerospace markets drove record sales in the quarter. In addition, the acquisition of BMA advanced our market leadership position in seat actuation and other motion systems for aircraft. Our growth is translating well to stronger profitability. Operating margin expanded nicely on higher volumes and was supported as well by pricing initiatives, operating efficiencies and favorable mix. We also generated strong cash flow from operations of $27.6 million in the quarter. We ended 2025 with record backlog, better operating efficiencies, lower cost debt and a solid liquidity position, all of which positions us well for the opportunities we see in 2026.”
Fourth Quarter Results
Three Months Ended
Year Ended
($ in thousands)
December 31, 2025
December 31, 2024
% Change
December 31, 2025
December 31, 2024
% Change
Sales
$
240,067
$
208,540
15.1
%
$
862,128
$
795,426
8.4
%
Gross profit
$
79,971
$
62,122
28.7
%
$
258,158
$
220,428
17.1
%
Gross margin
33.3
%
29.8
%
29.9
%
27.7
%
Income from operations
$
35,462
$
8,876
299.5
%
$
76,412
$
26,466
188.7
%
Operating margin %
14.8
%
4.3
%
8.9
%
3.3
%
Loss on settlement of debt
$
—
$
3,161
$
32,644
$
10,148
Net income (loss)
$
29,615
$
(2,832
)
1,145.7
%
$
29,359
$
(16,215
)
281.1
%
Net income (loss) %
12.3
%
(1.4
)%
3.4
%
(2.0
)%
Adjusted operating income2
$
38,330
$
23,837
60.8
%
$
105,163
$
61,538
70.9
%
Adjusted operating margin %2
16.0
%
11.4
%
12.2
%
7.7
%
Adjusted net income2
$
28,516
$
16,849
69.2
%
$
78,634
$
38,136
106.2
%
Adjusted EBITDA2
$
45,673
$
31,539
44.8
%
$
134,538
$
96,466
39.5
%
Adjusted EBITDA margin %2
19.0
%
15.1
%
15.6
%
12.1
%
Fourth Quarter 2025 Results (compared with the prior-year period, unless noted otherwise)
Growth in sales was driven by continued strength in demand for the Aerospace segment primarily from the Commercial Transport market. Aerospace sales increased $31.0 million, or 16.5%, and Test Systems sales increased $0.5 million.
Gross profit increased $17.8 million to $80.0 million, or 33.3% of sales, a 350 basis point expansion over gross margin of 29.8% in the comparator quarter. Margin expansion was driven by higher volume, favorable mix, pricing actions including some true up pricing recovery, improved productivity, and the benefit of Test Systems’ restructuring initiatives. This more than offset a $2.9 million increase in tariff expense.
In the fourth quarter of 2025, selling, general and administrative expenses (“SG&A”) decreased $7.3 million primarily from a $9.0 million reduction in legal reserves and litigation-related expenses, somewhat offset by SG&A associated with the acquired BMA business and higher legal and accounting expenses related to the acquisition. R&D was $1.4 million lower reflecting the timing of projects.
Higher gross profit and reduced SG&A resulted in operating margin of 14.8% compared with 4.3% in the prior-year period. Adjusted operating margin2 expanded 450 basis points.
Interest expense was down $0.8 million, or 18.5%, on lower rates following 2025 refinancing activities. The fourth quarter included $0.6 million in expense related to the write-off of deferred financing fees related to two exiting revolving credit facility lenders, classified within interest expense.
Tax expense in the quarter was $2.6 million compared with $3.4 million in the prior-year period, mostly because of a valuation allowance reversal associated with research and development costs that are expected to be expensed for tax purposes in the current year under the One Big Beautiful Bill Act.
Consolidated net income of $0.78 per diluted share improved from a net loss of $0.08 per diluted share in the prior-year period due to stronger operating profit and lower interest expense. Adjusted diluted earnings per share2 increased $0.29 per diluted share, or 62.5%, to $0.75 per diluted share. Adjusted EBITDA2 increased 44.8% to $45.7 million, and adjusted EBITDA margin2 expanded 390 basis points to 19.0% of consolidated sales.
Bookings were up 31.3% to $257.2 million in the quarter. For the year, bookings grew 14.4% to $924.4 million with a book-to-bill ratio of 1.07:1. Backlog at the end of the quarter was $674.5 million, the highest recorded in Company’s history.
Aerospace Segment Review (compared with the prior-year period, unless noted otherwise)
Record Aerospace segment sales of $219.6 million were up $31.0 million, or 16.5%. Sales in the Commercial Transport market grew $26.1 million, or 18.5%. Growth was primarily related to increased demand by airlines for cabin power, seat motion, lighting and safety and system certification products and services, partially offset by lower demand for avionics products. Military Aircraft sales increased $3.6 million, or 14.5%, to $28.0 million, driven by pricing initiatives, increased demand for lighting and safety products, and continued progress on MV-75 engineering efforts. General Aviation sales were up $4.6 million, or 26.0%, to $22.3 million due to higher inflight entertainment & connectivity (“IFEC”) product sales to the VVIP market. Other sales were down $3.2 million as the Company has wound down its non-core contract manufacturing arrangements.
Aerospace segment operating profit of $41.7 million, or 19.0% of sales, measurably improved over the prior-year period reflecting the leverage gained on higher volume, favorable mix, pricing initiatives, and improving production efficiencies. The quarter also benefitted from a $9.3 million decrease in litigation-related reserves and expenses. Adjusted Aerospace operating profit2 increased 44.1% to $43.6 million, or 19.8% of sales, a 380-basis point expansion over the comparator quarter.
Aerospace bookings were up 30.1% to $237.3 million for a book-to-bill ratio of 1.08:1. Backlog for the Aerospace segment was $600.8 million at the end of 2025 which was an 11.8% increase over backlog at the end of 2024 and a 5.0% increase over the trailing third quarter.
Mr. Gundermann commented, “Our Aerospace business had a strong fourth quarter with record sales that led to a 19.0% operating margin, surpassing our near-term margin target and a testament to its potential. In addition to higher volume, profitability benefitted from a favorable mix within our VVIP market as well as with some recovery related to pricing initiatives. We have very strong tailwinds supporting our Aerospace business that we believe will continue to drive strong results in 2026 and beyond.”
Test Systems Segment Review (compared with the prior-year period, unless noted otherwise)
Test Systems segment sales were $20.5 million, up $0.5 million from the comparator quarter in 2024.
Test Systems segment operating profit was $1.1 million compared with slightly below break-even in the fourth quarter of 2024. The comparator quarter included $1.4 million in expenses related to simplification and restructuring activities which contributed to the profit improvement at this sales level. Test Systems continued to be negatively affected by mix and under absorption of fixed costs at current volume levels.
Bookings for the Test Systems segment in the quarter were $19.9 million, for a book-to-bill ratio of 0.97:1 for the quarter. Backlog was $73.7 million at the end of 2025.
Mr. Gundermann commented, “Our Test business generated operating profit on relatively low sales, which demonstrates the significant cost-cutting initiatives we have implemented across the business. We expect its level of profitability will meaningfully improve once production for the U.S. Army radio test program begins. At this time, we believe we will receive production orders for that program early in the second quarter or soon thereafter.”
Balance Sheet and Liquidity
Cash provided by operations in the fourth quarter of 2025 was $27.6 million, reflecting higher cash earnings, offset by higher working capital requirements associated with increased order volume. Capital expenditures in the quarter were $11.8 million and $31.7 million for the full year. Elevated capital expenditures in 2025 reflect the investments made on previously deferred spending as well as the consolidation of operations in a new Seattle facility.
Long-term debt, net of cash, increased $168.2 million to $324.8 million at the end of 2025 compared with $156.6 million. Debt was higher due to the refinancing actions that resulted in the repurchase of 80% of the $165 million 5.5% convertible bonds. The refinancing was accomplished through the issue of $225 million of 0% convertible bonds and included the purchase of a capped call.
On October 22, 2025, the Company entered into a new $300 million senior secured, cash flow-based revolving credit facility (the “New Revolver”) which matures in October 2030. The New Revolver includes a $100 million accordion feature which can be incrementally expanded if maximum leverage requirements are met.
The Company had available liquidity of $230.9 million including $18.2 million in cash at the end of 2025.
2026 Outlook
The Company expects 2026 revenue to be approximately $950 million to $990 million. The midpoint of this range would be a 13% increase over 2025 sales. The Company expects first quarter revenue to be approximately $220 million to $230 million, up 9% at the midpoint of the range over the prior-year period.
Backlog at December 31, 2025 was a record $674.5 million, of which approximately 79% is expected to be recognized as revenue over the next twelve months. Planned capital expenditures in 2026 are expected to be in the range of $40 million to $50 million and include the remaining costs associated with the Seattle operation consolidation. In addition, the Company plans to invest approximately $14 million to $18 million in 2026 for the implementation of a global enterprise resource planning system. The investment will be reported as a cash outflow from operations, rather than as a capital expenditure.
Mr. Gundermann concluded, “We expect 2026 will be another very strong year with double digit growth, weighted slightly toward the second half. Our future is very bright. We have a long runway of opportunities on which to execute and are very excited about 2026 and beyond. We are also striving to consistently deliver high-teens operating margins for the consolidated business which should be realizable with the expected improvement with the Test business. In all, we expect we will continue to create more value for our customers, shareholders and the Astronics team.”
Fourth Quarter 2025 Webcast and Conference Call
The Company will host a teleconference today at 4:45 p.m. ET. During the teleconference, management will review the financial and operating results for the period and discuss Astronics’ corporate strategy and outlook. A question-and-answer session will follow.
The Astronics conference call can be accessed by calling (201) 493-6784. The listen-only audio webcast can be monitored at investors.astronics.com. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13758335. The telephonic replay will be available from 8:00 p.m. on the day of the call through Tuesday, March 10, 2026. The webcast replay can be accessed via the investor relations section of the Company’s website where a transcript will also be posted once available.
About Astronics Corporation
Astronics Corporation (Nasdaq: ATRO) serves the world’s aerospace, defense, and other mission-critical industries with proven innovative technology solutions. Astronics works side-by-side with customers, integrating its array of power, connectivity, lighting, structures, interiors, and test technologies to solve complex challenges. For over 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe manufacturers, airlines, military branches, completion centers, and Fortune 500 companies rely on the collaborative spirit and innovation of Astronics. The Company’s strategy is to increase its value by developing technologies and capabilities that provide innovative solutions to its targeted markets.
Safe Harbor Statement
This news release contains forward-looking statements as defined by the Securities Exchange Act of 1934. One can identify these forward-looking statements by the use of the words “expect,” “anticipate,” “plan,” “may,” “will,” “estimate,” “feeling” or other similar expressions and include all statements with regard to the Company’s 2026 and first quarter revenue outlook, the amount of revenue in the second half of 2026, the ability to deliver high-teens operating margins for the consolidated business, the amount of capital expenditures for 2026 as well as the amount of investment in an ERP system, the amount of backlog to be recognized as revenue over the next twelve months, the strength and length of time associated with tailwinds for the Aerospace segment, the timing of the receipt of production orders for U.S. Army radio test set program and the level of profitability contribution from the Test segment with its onset, the amount of opportunities available to be executed, the ability to achieve high-teen operating margins on a consolidated basis consistently, and statements regarding the strategy of the Company and its outlook. Forward-looking statements also include all statements related to achieving any revenue or profitability expectations, expectations of continued growth, the level of liquidity, the level of cash generation, the level of demand by customers and markets and the amount of expected capital expenditures. Because such statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. Important factors that could cause actual results to differ materially from what may be stated here include the trend in growth with passenger power and connectivity on airplanes, the state of the aerospace and defense industries, the market acceptance of newly developed products, internal production capabilities, the timing of orders received, the status of customer certification processes and delivery schedules, the demand for and market acceptance of new or existing aircraft which contain the Company’s products, the impact of regulatory activity and public scrutiny on production rates of a major U.S. aircraft manufacturer, the need for new and advanced test equipment, customer preferences and relationships, the effectiveness of the Company’s supply chain, and other factors which are described in filings by Astronics with the Securities and Exchange Commission. Except as required by applicable law, the Company assumes no obligation to update forward-looking information in this news release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.
Use of Non-GAAP Financial Metrics and Additional Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Astronics provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. Astronics management uses these measures for reviewing the financial results of Astronics for budget planning purposes and for making operational and financial decisions. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, help investors evaluate Astronics core operating and financial performance and business trends consistent with how management evaluates such performance and trends.
FINANCIAL TABLES FOLLOW
ASTRONICS CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS DATA
(Unaudited, $ in thousands except per share data)
Three Months Ended
Year Ended
12/31/2025
12/31/2024
12/31/2025
12/31/2024
Sales
$
240,067
$
208,540
$
862,128
$
795,426
Cost of products sold
160,096
146,418
603,970
574,998
Gross profit3
79,971
62,122
258,158
220,428
Gross margin
33.3
%
29.8
%
29.9
%
27.7
%
Research and development expenses
10,626
12,068
43,475
52,086
Selling, general and administrative
33,883
41,178
138,271
141,876
SG&A % of sales
14.1
%
19.7
%
16.0
%
17.8
%
Income from operations
35,462
8,876
76,412
26,466
Operating margin
14.8
%
4.3
%
8.9
%
3.3
%
Loss on settlement of debt
—
3,161
32,644
10,148
Other (income) expense
(176
)
973
(738
)
2,187
Interest expense, net
3,394
4,166
12,561
21,998
Income (loss) before tax
32,244
576
31,945
(7,867
)
Income tax expense
2,629
3,408
2,586
8,348
Net income (loss)
$
29,615
$
(2,832
)
$
29,359
$
(16,215
)
Net income (loss) %
12.3
%
(1.4
)%
3.4
%
(2.0
)%
Basic earnings (loss) per share:
$
0.83
$
(0.08
)
$
0.83
$
(0.46
)
Convertible notes interest expense, net
358
—
—
—
Net income (loss) - diluted
$
29,973
$
(2,832
)
$
29,359
$
(16,215
)
Diluted earnings (loss) per share:
$
0.78
$
(0.08
)
$
0.81
$
(0.46
)
Weighted average diluted shares outstanding (in thousands)4
38,481
35,255
36,463
35,037
ASTRONICS CORPORATION
CONSOLIDATED BALANCE SHEETS
($ in thousands)
(unaudited)
12/31/2025
12/31/2024
ASSETS
Current assets:
Cash and cash equivalents
$
18,180
$
9,285
Restricted cash
—
9,143
Accounts receivable, net of allowance of estimated credit losses
204,672
191,446
Inventories
196,860
199,741
Prepaid and other current assets
18,027
16,557
Total current assets
437,739
426,172
Property, plant and equipment, net of accumulated depreciation
107,078
80,687
Operating right-of-use assets
32,269
23,609
Other assets
11,316
7,763
Intangible assets, net of accumulated amortization
55,353
52,477
Goodwill
62,923
58,056
Total assets
$
706,678
$
648,764
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
41,080
$
42,960
Current operating lease liabilities
5,802
4,697
Accrued expenses and other current liabilities
68,324
81,004
Customer advances and deferred revenue
26,069
27,491
Total current liabilities
141,275
156,152
Long-term debt
334,451
168,669
Long-term operating lease liabilities
38,101
20,508
Other liabilities
52,777
47,338
Total liabilities
566,604
392,667
Shareholders’ equity:
Common stock
385
380
Accumulated other comprehensive loss
(4,410
)
(3,863
)
Other shareholders’ equity
144,099
259,580
Total shareholders’ equity
140,074
256,097
Total liabilities and shareholders’ equity
$
706,678
$
648,764
ASTRONICS CORPORATION
CONSOLIDATED CASH FLOWS DATA
Year Ended
(Unaudited, $ in thousands)
December 31, 2025
December 31, 2024
Cash flows from operating activities:
Net income (loss)
$
29,359
$
(16,215
)
Adjustments to reconcile net income (loss) to cash from operating activities:
Non-cash items:
Depreciation and amortization
21,838
24,466
Amortization of deferred financing fees
3,036
3,194
Provisions for non-cash losses on inventory and receivables
10,011
13,782
Equity-based compensation expense
6,799
8,571
Deferred tax benefit
(1,362
)
(20
)
Loss on settlement of debt
32,644
10,148
Operating lease non-cash expense
6,162
5,175
Simplification initiative-related non-cash charges
6,229
—
Non-cash 401K contribution and quarterly bonus accrual
—
3,454
Non-cash litigation provision adjustment
—
4,468
Other
(418
)
5,807
Cash flows from changes in operating assets and liabilities:
Accounts receivable
(8,102
)
(21,983
)
Inventories
(4,435
)
(21,551
)
Accounts payable
(3,114
)
(17,693
)
Accrued expenses
(15,027
)
21,987
Income taxes
(7,938
)
4,498
Operating lease liabilities
(4,573
)
(5,125
)
Tenant improvement allowance refund
8,138
—
Cloud computing implementation costs
(1,117
)
—
Customer advanced payments and deferred revenue
(4,189
)
5,693
Supplemental retirement plan liabilities
(716
)
(410
)
Other assets and liabilities
1,570
2,320
Net cash provided by operating activities
74,795
30,566
Cash flows from investing activities:
Capital expenditures
(31,673
)
(8,428
)
Acquisition of businesses, net of cash acquired
(22,075
)
—
Net cash used by investing activities
(53,748
)
(8,428
)
Cash flows from financing activities:
Proceeds from long-term debt
186,143
377,392
Principal payments on long-term debt
(111,143
)
(374,890
)
Proceeds from issuance of convertible debt
225,000
—
Partial repurchase of 2030 notes
(285,752
)
—
Payments for capped call transactions
(26,888
)
—
Financing-related costs
(10,366
)
(12,150
)
Financing settlement costs
—
(4,496
)
Stock award activity
753
(241
)
Other
(141
)
(145
)
Net cash used by financing activities
(22,394
)
(14,530
)
Effect of exchange rates on cash
1,099
(493
)
(Decrease) increase in cash and cash equivalents and restricted cash
(248
)
7,115
Cash and cash equivalents and restricted cash at beginning of year
18,428
11,313
Cash and cash equivalents and restricted cash at end of year
$
18,180
$
18,428
Supplemental disclosure of cash flow information
Interest paid
$
10,056
$
19,238
Income taxes paid, net of refunds
$
11,605
$
3,537
Non-cash investing activities:
Capital expenditures in accounts payable
$
2,025
$
—
ASTRONICS CORPORATION
SEGMENT SALES AND PROFIT
(Unaudited, $ in thousands)
Three Months Ended
Year Ended
12/31/2025
12/31/2024
12/31/2025
12/31/2024
Sales
Aerospace
$
219,593
$
188,559
$
797,353
$
706,746
Less inter-segment
—
(10
)
(34
)
(62
)
Total Aerospace
219,593
188,549
797,319
706,684
Test Systems
20,558
20,084
65,243
88,874
Less inter-segment
(84
)
(93
)
(434
)
(132
)
Total Test Systems
20,474
19,991
64,809
88,742
Total consolidated sales
240,067
208,540
862,128
795,426
Segment gross profit and margins5
Aerospace
74,604
55,909
248,440
204,126
34.0
%
29.7
%
31.2
%
28.9
%
Test Systems
5,367
6,213
9,718
16,302
26.2
%
31.1
%
15.0
%
18.4
%
Total gross profit
79,971
62,122
258,158
220,428
Segment operating profit and margins
Aerospace
41,734
16,778
113,204
62,406
19.0
%
8.9
%
14.2
%
8.8
%
Test Systems
1,102
(49
)
(7,845
)
(8,477
)
5.4
%
(0.2
)%
(12.1
)%
(9.6
)%
Total segment operating profit
42,836
16,729
105,359
53,929
Loss on settlement of debt
—
3,161
32,644
10,148
Interest expense
3,394
4,166
12,561
21,998
Corporate expenses and other
7,198
8,826
28,209
29,650
Income (loss) before taxes
$
32,244
$
576
$
31,945
$
(7,867
)
ASTRONICS CORPORATION
SALES BY MARKET
(Unaudited, $ in thousands)
Three Months Ended
Year Ended
2025 YTD
% of Sales
12/31/2025
12/31/2024
% change
12/31/2025
12/31/2024
% change
Aerospace Segment
Commercial Transport
$
166,977
$
140,893
18.5
%
$
599,301
$
524,572
14.2
%
69.5
%
Military Aircraft
28,026
24,474
14.5
%
116,276
88,019
32.1
%
13.5
%
General Aviation
22,302
17,701
26.0
%
69,834
74,344
(6.1
)%
8.1
%
Other
2,288
5,481
(58.3
)%
11,908
19,749
(39.7
)%
1.4
%
Aerospace Total
219,593
188,549
16.5
%
797,319
706,684
12.8
%
92.5
%
Test Systems Segment
Government & Defense
20,474
19,991
2.4
%
64,809
88,742
(27.0
)%
7.5
%
Total Sales
$
240,067
$
208,540
15.1
%
$
862,128
$
795,426
8.4
%
SALES BY PRODUCT LINE
(Unaudited, $ in thousands)
Three Months Ended
Year Ended
2025 YTD
% of Sales
12/31/2025
12/31/2024
% change
12/31/2025
12/31/2024
% change
Aerospace Segment
Electrical Power & Motion
$
113,841
$
95,124
19.7
%
$
410,382
$
359,043
14.3
%
47.6
%
Lighting & Safety
54,573
44,241
23.4
%
208,897
179,403
16.4
%
24.2
%
Avionics
31,970
36,467
(12.3
)%
123,422
120,183
2.7
%
14.3
%
Systems Certification
13,227
4,731
179.6
%
29,069
17,003
71.0
%
3.4
%
Structures
3,694
2,505
47.5
%
13,641
11,303
20.7
%
1.6
%
Other
2,288
5,481
(58.3
)%
11,908
19,749
(39.7
)%
1.4
%
Aerospace Total
219,593
188,549
16.5
%
797,319
706,684
12.8
%
92.5
%
Test Systems Segment
20,474
19,991
2.4
%
64,809
88,742
(27.0
)%
7.5
%
Total Sales
$
240,067
$
208,540
15.1
%
$
862,128
$
795,426
8.4
%
ASTRONICS CORPORATION
ORDER AND BACKLOG TREND
(Unaudited, $ in thousands)
Q1
2025
Q2
2025
Q3
2025
Q4
2025
Trailing Twelve
Months
3/29/2025
6/28/2025
9/27/2025
12/31/2025
12/31/2025
Sales
Aerospace
$
191,375
$
193,626
$
192,725
$
219,593
$
797,319
Test Systems
14,561
11,052
18,722
20,474
64,809
Total Sales
$
205,936
$
204,678
$
211,447
$
240,067
$
862,128
Bookings
Aerospace
$
267,715
$
150,636
$
191,859
$
237,327
$
847,537
Test Systems
12,011
26,390
18,532
19,902
76,835
Total Bookings
$
279,726
$
177,026
$
210,391
$
257,229
$
924,372
Backlog 6
Aerospace
$
613,903
$
570,913
$
572,459
$
600,803
Test Systems
59,116
74,454
74,264
73,692
Total Backlog
$
673,019
$
645,367
$
646,723
$
674,495
N/A
Book:Bill Ratio
Aerospace
1.40
0.78
1.00
1.08
1.06
Test Systems
0.82
2.39
0.99
0.97
1.19
Total Book:Bill
1.36
0.86
1.00
1.07
1.07
ASTRONICS CORPORATION
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(Unaudited, $ in thousands)
Consolidated
Three Months Ended
Year Ended
12/31/2025
12/31/2024
12/31/2025
12/31/2024
Net income (loss)
$
29,615
$
(2,832
)
$
29,359
$
(16,215
)
Add back:
Interest expense
3,394
4,166
12,561
21,998
Income tax expense
2,629
3,408
2,586
8,348
Depreciation and amortization expense
5,709
5,894
21,838
24,466
Equity-based compensation expense
1,458
2,157
6,799
8,571
Early retirement penalty waiver
—
624
—
624
Non-cash 401K contribution and quarterly bonus accrual
—
—
—
3,454
Simplification and restructuring initiatives
—
1,411
6,867
2,444
Legal reserve, settlements and recoveries
—
4,762
9,732
4,430
Litigation-related legal expenses
1,875
6,066
8,873
19,746
Acquisition-related expenses
586
—
1,833
—
Loss on settlement of debt
—
3,161
32,644
10,148
Non-cash reserves for customer bankruptcy
—
1,032
—
3,235
Warranty reserve
407
1,690
1,446
5,217
Adjusted EBITDA
$
45,673
$
31,539
$
134,538
$
96,466
Sales
$
240,067
$
208,540
$
862,128
$
795,426
Adjusted EBITDA margin %
19.0
%
15.1
%
15.6
%
12.1
%
Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by sales. Adjusted EBITDA and Adjusted EBITDA Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company’s financial statements.
ASTRONICS CORPORATION
RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME
(Unaudited, $ in thousands)
Consolidated
Three Months Ended
Year Ended
12/31/2025
12/31/2024
12/31/2025
12/31/2024
Income from operations
$
35,462
$
8,876
$
76,412
$
26,466
Add back:
Simplification and restructuring initiatives
—
1,411
6,867
2,444
Legal reserve, settlements and recoveries
—
4,762
9,732
4,430
Litigation-related legal expenses
1,875
6,066
8,873
19,746
Acquisition-related expenses
586
—
1,833
—
Non-cash reserves for customer bankruptcy
—
1,032
—
3,235
Warranty reserve
407
1,690
1,446
5,217
Adjusted operating income
$
38,330
$
23,837
$
105,163
$
61,538
Sales
$
240,067
$
208,540
$
862,128
$
795,426
Operating margin
14.8
%
4.3
%
8.9
%
3.3
%
Adjusted operating margin
16.0
%
11.4
%
12.2
%
7.7
%
Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year’s income from operations to the historical periods’ income from operations and operating margin, as well as facilitates a more meaningful comparison of the Company’s income from operations and operating margin to that of other companies.
ASTRONICS CORPORATION
RECONCILIATION OF NET INCOME AND DILUTED EARNINGS PER SHARE
TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE
(Unaudited, $ in thousands, except per share amounts)
Consolidated
Three Months Ended
Year Ended
12/31/2025
12/31/2024
12/31/2025
12/31/2024
Net income (loss)
$
29,615
$
(2,832
)
$
29,359
$
(16,215
)
Add back (deduct):
Amortization of intangibles
2,909
3,143
11,505
12,871
Simplification and restructuring initiatives
—
1,411
6,867
2,444
Early retirement penalty waiver
—
624
—
624
Legal reserve, settlements and recoveries
—
4,762
9,732
4,430
Litigation-related legal expenses
1,875
6,066
8,873
19,746
Acquisition-related expenses
586
—
1,833
—
Loss on settlement of debt
—
3,161
32,644
10,148
Non-cash reserves for customer bankruptcy
—
1,032
—
3,235
Warranty reserve
407
1,690
1,446
5,217
Normalize tax rate7
(6,876
)
(2,208
)
(23,625
)
(4,364
)
Adjusted net income
$
28,516
$
16,849
$
78,634
$
38,136
Convertible notes interest, net
358
590
5,409
590
Adjusted net income - diluted
$
28,874
$
17,439
$
84,043
$
38,726
Weighted average diluted shares outstanding (in thousands)8
38,481
35,255
36,463
35,037
Adjusted weighted average diluted shares outstanding (in thousands)8
38,481
37,779
41,903
36,022
Diluted earnings (loss) per share
$
0.78
$
(0.08
)
$
0.81
$
(0.46
)
Adjusted diluted earnings per share9
$
0.75
$
0.46
$
2.01
$
1.08
Adjusted Net Income and Adjusted Diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Net Income and Adjusted Diluted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Net Income and Adjusted Diluted EPS, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year’s net income and diluted EPS to the historical periods’ net income and diluted EPS, as well as facilitates a more meaningful comparison of the Company’s net income and diluted EPS to that of other companies. The Company believes that presenting Adjusted Diluted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company’s strategy to grow through acquisitions as well as organically.
ASTRONICS CORPORATION
RECONCILIATION OF SEGMENT OPERATING PROFIT TO ADJUSTED SEGMENT OPERATING PROFIT
(Unaudited, $ in thousands)
Three Months Ended
Year Ended
12/31/2025
12/31/2024
12/31/2025
12/31/2024
Aerospace operating profit
$
41,734
$
16,778
$
113,204
$
62,406
Simplification and restructuring initiatives
—
—
6,508
237
Legal reserve, settlements and recoveries
—
4,762
9,732
4,430
Litigation-related legal expenses
1,409
5,966
7,311
19,127
Non-cash reserves for customer bankruptcy
—
1,032
—
3,235
Warranty reserve
407
1,690
1,446
5,217
Adjusted Aerospace operating profit
$
43,550
$
30,228
$
138,201
$
94,652
Aerospace sales
$
219,593
$
188,549
$
797,319
$
706,684
Aerospace margin
19.0
%
8.9
%
14.2
%
8.8
%
Adjusted Aerospace margin
19.8
%
16.0
%
17.3
%
13.4
%
Test Systems operating profit (loss)
$
1,102
$
(49
)
$
(7,845
)
$
(8,477
)
Simplification and restructuring initiatives
—
1,411
359
2,207
Litigation-related legal expenses
186
100
994
619
Adjusted Test Systems operating profit (loss)
$
1,288
$
1,462
$
(6,492
)
$
(5,651
)
Test Systems sales
$
20,474
$
19,991
$
64,809
$
88,742
Test Systems margin
5.4
%
(0.2
)%
(12.1
)%
(9.6
)%
Adjusted Test Systems margin
6.3
%
7.3
%
(10.0
)%
(6.4
)%
Adjusted Segment Operating Profit is defined as segment operating profit as reported, adjusted for certain items. Adjusted Segment Margin is defined as Adjusted Segment Operating Profit divided by segment sales. Adjusted Segment Operating Profit and Adjusted Segment Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Segment Operating Profit and Adjusted Segment Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Segment Operating Profit and Adjusted Segment Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year’s segment operating profit to the historical periods’ segment operating profit and segment margin, as well as facilitates a more meaningful comparison of the Company’s segment operating profit and segment margin to that of other companies.
1 Adjusted EBITDA, adjusted EBITDA margin, and adjusted segment operating margin are Non-GAAP financial measures. Please see the reconciliation of GAAP to non-GAAP financial measures in the tables that accompany this release.
2 Adjusted operating income, adjusted operating margin, adjusted segment operating profit, adjusted segment operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted diluted earnings per share (“EPS”) are Non-GAAP financial measures. Please see the reconciliation of GAAP to non-GAAP financial measures in the tables that accompany this release.
3 During the first quarter of 2025, the Company changed its financial statement presentation of research and development costs. These costs were previously included within Cost of Products Sold and were a factor in arriving at Gross Profit. The prior period amounts for Cost of Product Sold and Gross Profit have been adjusted from their original presentation for comparability purposes.
4 In addition to incremental shares from stock awards, weighted average diluted shares for the quarter ended December 31, 2025 reflects 1.442 million shares underlying the remaining 5.5% convertible bonds. For the year ended December 31, 2025, the diluted EPS calculation excludes the effect of the 5.5% Notes because the effect is anti-dilutive.
No weighted average diluted shares were associated with the 0% convertible bonds because the average share price for both the quarter and year ended December 31, 2025 was below the $54.87 stated conversion price. Note that because of the capped call, there is no effective dilution to shareholders unless and until the share price exceeds $83.41.
5 During the first quarter of 2025, the Company changed its financial statement presentation of research and development costs. These costs were previously included within Cost of Products Sold and were a factor in arriving at Gross Profit. The prior period amounts for Cost of Product Sold and Gross Profit have been adjusted from their original presentation for comparability purposes.
6 Aerospace backlog of approximately $2.4 million and $10.6 million was added in the third and fourth quarters of 2025, respectively, in connection with the acquisitions of Envoy Aerospace and Bühler Motor Aviation.
7 Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.
8 In addition to incremental shares from stock awards, weighted average diluted shares for the quarter ended December 31, 2025 reflects 1.442 million shares underlying the remaining 5.5% convertible bonds. For the year ended December 31, 2025, the diluted EPS calculation excludes the effect of the 5.5% Notes because the effect is anti-dilutive.
No weighted average diluted shares were associated with the 0% convertible bonds because the average share price for both the quarter and year ended December 31, 2025 was below the $54.87 stated conversion price. Note that because of the capped call, there is no effective dilution to shareholders unless and until the share price exceeds $83.41.
9 Net income for purposes of calculating adjusted diluted earnings per share includes addback of interest expense on the 5.5% convertible notes, net of income taxes, as required under the if-converted method.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260224562769/en/
For more information, contact:
Company:
Nancy L. Hedges, Chief Financial Officer
Phone: (716) 805-1599
Email: nancy.hedges@astronics.com
Investor Relations:
Deborah K. Pawlowski, Alliance Advisors LLC
Phone: (716) 843-3908
Email: dpawlowski@allianceadvisors.com
Original: Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
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