Astronics Q2 2023 Earnings Report
Key Takeaways
Astronics Corporation reported a strong second quarter with sales up 35% year-over-year and 11% sequentially, driven by the recovery in the commercial aerospace industry. Bookings reached pre-pandemic levels, resulting in a record backlog. The company expects a strong second half of 2023 and an even stronger 2024.
Sales for the quarter were $174.5 million, up 35% over prior year, and 11% sequentially.
Bookings totaled $207.1 million.
Record backlog of $611.1 million.
Aerospace segment sales increased 45% to $158.4 million; bookings were $188.8 million.
Astronics
Astronics
Astronics Revenue by Segment
Forward Guidance
Revenue guidance for 2023 is unchanged at $640 million to $680 million with expectations of achieving the higher end of the range. Planned capital expenditures for 2023 are expected to be in the range of $7 million to $12 million.
Positive Outlook
- Demand remains strong.
- Supply chain, though imperfect, continues to improve.
- Line of sight to the high end of our range based on existing backlog and the established momentum of our revenue ramp.
- Expect margins to continue to improve with expected increases in volume.
- Year end to be busy with shipments and continued demand strength, setting up for another strong year of improvement in 2024.
Challenges Ahead
- Modest risk with the supply chain
- Timing of major Test segment contract awards.
- Elevated inventory levels
- Inefficiencies in the supply chain.
- Liquidity during the second quarter was tighter than expected
Revenue & Expenses
Visualization of income flow from segment revenue to net income