Astronics misses Q2 sales estimates
Overview
Astronics Q2 sales rise 3.3% but miss analyst expectations, per LSEG data
Aerospace segment sales grow 9.4%, driving overall revenue increase
Co raises 2025 revenue guidance, reflecting confidence in future performance
Outlook
Astronics raises lower end of 2025 revenue guidance to $840 mln-$860 mln
Company expects $15 mln-$20 mln tariff impact before mitigation
75% of $645.4 mln backlog expected as revenue in next 12 months
2025 capital expenditures planned at $40 mln-$50 mln
Result Drivers
AEROSPACE GROWTH - Record Aerospace sales driven by strong demand in Commercial Transport market, particularly for cabin power and inflight entertainment products
TEST SYSTEMS DECLINE - Test Systems sales impacted by revisions of estimated costs to complete long-term contracts, reducing recognized revenue
SIMPLIFICATION INITIATIVES - Aerospace segment operating margin affected by charges related to simplification initiatives, including footprint rationalization and product portfolio shaping
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $204.68 mln | $208.30 mln (2 Analysts) |
Q2 Net Income | $1.31 mln | ||
Q2 Adjusted EBITDA | $25.41 mln | ||
Q2 Adjusted EBITDA Margin | 12.4% | ||
Q2 Gross Profit | $52.83 mln | ||
Q2 Operating Margin | 2.3% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy."
Wall Street's median 12-month price target for Astronics Corp is $34.00, about 5.4% below its August 5 closing price of $35.84
The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 18 three months ago
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