ASTRONICS CORP SEC 10-Q Report
Astronics Corp, a leading provider of advanced technologies for the global aerospace and defense industries, has released its Form 10-Q report for the third quarter of 2025. The report highlights significant financial improvements and robust operational performance, driven by strong demand in the Aerospace segment and strategic initiatives to enhance efficiency.
Financial Highlights
Sales: Astronics Corp reported sales of $410.6 million, primarily driven by the continued strength in demand from the Aerospace segment, especially within the Commercial Transport market.
Gross Profit: The company achieved a gross profit of $113.7 million, reflecting a gross margin of 27.7%, an improvement from 26.9% in the prior year. This increase is attributed to higher sales volume.
Income from Operations: Income from operations rose to $17.9 million, up from $9.2 million in the previous year, indicating enhanced operational efficiency.
Net Income: Astronics Corp reported a net income of $10.8 million, a significant turnaround from a net loss of $1.6 million in the prior year. This improvement is due to stronger profitability and lower interest expenses.
Diluted EPS: The diluted earnings per share (EPS) increased to $0.30, compared to a loss of $0.05 per share in the prior year, reflecting the company's improved financial performance.
Business Highlights
Aerospace Segment Performance: The Aerospace segment experienced a 13.0% increase in sales, driven by strong demand in the Commercial Transport and Military Aircraft markets. This growth was primarily attributed to increased demand for cabin power and inflight entertainment & connectivity products.
Test Systems Segment Performance: The Test Systems segment saw a decline in sales due to revisions of estimated costs to complete certain long-term mass transit Test contracts, resulting in reduced revenue recognized during the period.
Product Line Revenue Breakdown: Within the Aerospace segment, Electrical Power & Motion products generated $195.2 million, Lighting & Safety products $102.7 million, and Avionics $65.3 million in sales, reflecting strong demand across these product lines.
Geographical Performance: Astronics Corp has principal operations in the United States, Canada, and France, with engineering offices in Ukraine and India, indicating a broad geographical footprint supporting its Aerospace and Test Systems segments.
Operational Challenges: The company faced challenges such as supply chain pressures, material availability, and cost increases, which impacted operational efficiency. These challenges were addressed through simplification initiatives and restructuring activities.
Future Outlook: The company anticipates continued growth in the Aerospace segment driven by new aircraft production and upgrades. The Test Systems segment is expected to benefit from new and follow-on business opportunities, despite current challenges.
Simplification Initiatives: The Aerospace segment undertook simplification activities, including footprint rationalization and portfolio shaping, resulting in charges within the cost of products sold.
Legal Proceedings Impact: The company incurred significant legal expenses related to a patent infringement dispute in the UK, impacting the Aerospace segment's operating profit.
Backlog and Bookings: The company's backlog increased to $645.4 million, with a book-to-bill ratio of 1.11:1 for the first half of 2025, indicating strong future demand.
New Production Launches: The company is expanding its facility, which contributed to higher capital expenditures in the first half of 2025, supporting future growth in production capacity.
SEC Filing: ASTRONICS CORP [ ATRO ] - 10-Q - Aug. 07, 2025