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Sep 27
Astronics Q3 2025 Earnings Report
Astronics reported solid third quarter 2025 financial results with increased sales and improved operating margins.
Key Takeaways
Astronics Corporation delivered a solid third quarter, with sales increasing by 3.8% to $211.4 million, driven primarily by strong growth in the Aerospace segment. The company reported a net loss of $11.1 million, largely due to $32.6 million in refinancing-related charges, but achieved an adjusted EBITDA of $32.7 million, or 15.5% of sales. Operational progress and profitability initiatives led to significant operating margin expansion.
Third quarter sales increased 3.8% to $211.4 million, with Aerospace segment sales growing 8.5% to $192.7 million.
Net loss was $11.1 million, impacted by $32.6 million in refinancing-related charges, while adjusted EBITDA reached $32.7 million.
Aerospace operating margin improved to 16.2%, and adjusted operating margin expanded to 16.7%.
Solid quarterly bookings of $210.4 million resulted in a book-to-bill ratio of 1.00:1, with a total backlog of $646.7 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 expects a strong finish to 2025, with fourth-quarter sales projected to be between $225 million and $235 million, leading to a record annual sales level for the company. The company anticipates continued strong market conditions and elevated revenue through 2026, with early indications suggesting low double-digit growth for the next year.
Positive Outlook
- Fourth quarter revenue expected to be $225 million to $235 million, a significant step up from prior quarters.
- Full-year 2025 revenue expected to be $847 million to $857 million, establishing a new record annual sales level.
- Midpoint of revised 2025 revenue range represents a 7.2% increase over 2024 sales.
- Market conditions are expected to remain strong, with elevated revenue levels continuing through 2026.
- Early outlook for 2026 suggests low double-digit growth.
Challenges Ahead
- Approximately 26% of the current backlog is not expected to be recognized as revenue within the next twelve months.
- Planned capital expenditures for 2025 are substantial, ranging from $40 million to $50 million.
- Tariff expense in the current quarter was approximately $4 million, with potential incremental annual costs of $15 million to $20 million before mitigation.
- Test Systems segment profitability is dependent on the start of the U.S. Army radio test program, which has not yet begun.
- The company is not yet ready to issue formal guidance for 2026, indicating some uncertainty.
Revenue & Expenses
Visualization of income flow from segment revenue to net income