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Sep 28, 2024
Astronics Q3 2024 Earnings Report
Reported a 25% increase in sales and improved profitability driven by growth and implemented initiatives.
Key Takeaways
Astronics Corporation reported a 25% increase in sales to $203.7 million in the third quarter of 2024, the highest quarterly level since Q1 2019. The company's adjusted EBITDA grew by 207% to $27.1 million, with Aerospace segment adjusted operating margin at 14.2%. However, the company experienced a net loss of $11.7 million, which included $7.0 million in refinancing costs, though adjusted net income was $12.2 million.
Sales increased by $40.8 million to $203.7 million, marking the highest quarterly sales since Q1 2019.
Aerospace operating income reached $14.3 million, with an adjusted operating income of $25.3 million, representing 14.2% of sales.
Net loss was $11.7 million, or $0.34 per diluted share, including a $7.0 million impact from refinancing costs; adjusted net income was $12.2 million, or $0.35 per diluted share.
Adjusted EBITDA grew by 207% to $27.1 million, 13.3% of sales, up $18.2 million over the prior-year period and $6.8 million over trailing second quarter.
Astronics
Astronics
Astronics Revenue by Segment
Revenue by Segment
Aerospace Revenue
CapyFin.comTest Systems Revenue
CapyFin.com Forward Guidance
The company expects fourth quarter sales of $190 million to $210 million and is adjusting its 2024 revenue guidance to $777 million to $797 million.
Positive Outlook
- Closing in on another year of strong double-digit growth.
- Assuming we attain the mid-point of the range for 2024, we will have averaged 21% growth over each of the last three years.
- Profitability has benefited from the growth
- Profitability has benefited from the many improvement initiatives we have implemented over the last several years
- 2025 will see a continuation of these trends.
Challenges Ahead
- Company considered the broad range of factors affecting the business, including the work stoppage at Boeing, in issuing its guidance.
- The company expects fourth quarter sales of $190 million to $210 million
- Legal Proceedings: The UK court fully upheld the subject patent and found that the Company was infringing. A damages hearing was conducted in October 2024 and a ruling is expected later this year or early in 2025.
- Astronics reserved $7.4 million to cover anticipated damages, but the plaintiff is seeking damages of up to approximately $105 million, excluding interest.
- Based on UK legal practices, the Company expects that some amount of damages may be due in early 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income