Astronics Corporation Reports 11.2% Revenue Growth to $205.9 Million in Q1 2025

Astronics Corporation reported a significant increase in financial performance for the first quarter of 2025, with total sales reaching $205.9 million, up 11.2% from $185.1 million in the same period last year. The company achieved a gross profit of $60.8 million, representing a gross margin of 29.5%, compared to 25.7% in the prior year. Net income for the quarter was $9.5 million, or $0.26 per diluted share, a notable recovery from a net loss of $3.2 million, or $(0.09) per diluted share, in the first quarter of 2024. This turnaround was attributed to increased sales volume and reduced interest expenses following a refinancing of debt.

The Aerospace segment was a key driver of growth, with sales increasing by $27.7 million, or 17.0%, to $191.4 million. This growth was primarily fueled by heightened demand in the Commercial Transport and Military Aircraft markets. In contrast, the Test Systems segment experienced a decline in sales, dropping $6.9 million to $14.6 million, impacted by a revision of estimated costs for a long-term mass transit contract. The overall increase in consolidated sales was also affected by a $1.9 million reduction in revenue due to this contract revision.

Operationally, Astronics reported a backlog of $673.0 million as of March 29, 2025, an increase from $599.2 million at the end of 2024. The company recorded bookings of $279.7 million during the quarter, resulting in a book-to-bill ratio of 1.36:1. The Aerospace segment's backlog stood at $613.9 million, while the Test Systems segment's backlog was $59.1 million. The company continues to focus on expanding its market share and enhancing product adoption rates, particularly in the aerospace sector.

In terms of strategic developments, Astronics has been actively managing its financial structure, including a recent amendment to its asset-based revolving credit facility, which increased borrowing capacity to $220 million. The company also issued $165 million in convertible senior notes, which are expected to enhance liquidity. As of the end of the quarter, cash and cash equivalents totaled $24.8 million, a significant increase from $9.3 million at the end of 2024. The company is committed to maintaining compliance with its financial covenants and expects to leverage its operational cash flow to support ongoing business activities.

Looking ahead, Astronics anticipates continued growth driven by strong demand in the aerospace sector, although it remains cautious about potential challenges such as supply chain pressures and fluctuating market conditions. The company is focused on executing its growth strategy through innovation and strategic acquisitions, while also addressing operational efficiencies to enhance profitability.