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Jun 28
Astronics Q2 2025 Earnings Report
Astronics reported record Aerospace segment sales and improved adjusted profitability in the second quarter of 2025, despite challenges in the Test Systems segment.
Key Takeaways
Astronics Corporation delivered a solid second quarter in 2025, with total sales increasing by 3.3% to $204.7 million, primarily driven by a record 9.4% growth in the Aerospace segment. Net income was $1.3 million, or $0.04 per diluted share, while adjusted EBITDA reached $25.4 million, representing 12.4% of sales. The Test Systems segment faced profitability challenges due to estimated cost to complete adjustments, masking restructuring savings. The company also raised the lower end of its 2025 revenue guidance.
Second quarter sales increased 3.3% to $204.7 million, with Aerospace segment sales reaching a record $193.6 million, up 9.4%.
Net income for the quarter was $1.3 million ($0.04 per diluted share), while adjusted EBITDA was $25.4 million, or 12.4% of sales.
The Test Systems segment's profitability was significantly impacted by a $6.9 million adjustment for estimated costs to complete certain long-term contracts.
Quarterly bookings were $177.0 million, resulting in a book-to-bill ratio of 0.86:1, and total backlog stood at $645.4 million.
Astronics
Astronics
Astronics Revenue by Segment
Astronics Revenue by Geographic Location
Revenue by Segment
Aerospace Revenue
CapyFin.comTest Systems Revenue
CapyFin.comRevenue by Geographic Location
Commercial Transport Revenue
CapyFin.comMilitary Aircraft Revenue
CapyFin.comGeneral Aviation Revenue
CapyFin.comOther Revenue
CapyFin.comGovernment & Defense Revenue
CapyFin.com Forward Guidance
Astronics raised the lower end of its 2025 revenue guidance to a range of $840 million to $860 million, indicating confidence in accelerating activity in the second half of the year, despite potential delays in a U.S. Army radio test program.
Positive Outlook
- Raised lower end of 2025 revenue guidance to $840 million, up from $820 million, with a midpoint increase of $10 million.
- Aerospace business is accelerating, expected to compensate for potential delays in the U.S. Army Radio Test Program.
- Business continues to strengthen, including workforce efficiency and supply chain dependability.
- Near-record backlog of $645.4 million, with approximately 75% expected to be recognized as revenue over the next twelve months.
- Expectation of a stronger close to 2025 with accelerating momentum into 2026 for the Test Systems business after EAC adjustment.
Challenges Ahead
- Potential six-to-eight-week delay in the production phase of the U.S. Army radio test program, possibly sliding into early 2026.
- Ongoing monitoring of the evolving tariff situation, with potential incremental impact to annual costs of materials estimated between $15 million to $20 million before mitigation.
- Test Systems segment continues to be negatively affected by mix and under absorption of fixed costs at current volume levels.
- The deep dive into major long-term Test programs will continue into the third quarter.
- Tariff rates are expected to remain in flux in the near future, requiring ongoing strategy refinement.
Revenue & Expenses
Visualization of income flow from segment revenue to net income