Astronics Corporation Reports 7.4% Sales Increase and Net Income Turnaround for First Half of 2025

Astronics Corporation reported a significant improvement in its financial performance for the six months ended June 28, 2025, with total sales reaching $410.6 million, a 7.4% increase from $383.2 million in the same period of 2024. The company achieved a net income of $10.8 million, or $0.30 per diluted share, compared to a net loss of $1.6 million, or $(0.05) per diluted share, in the prior year. This turnaround was driven by a strong performance in the Aerospace segment, which saw sales rise by 13.0% to $385.0 million, primarily due to increased demand in the Commercial Transport and Military Aircraft markets.

In contrast, the Test Systems segment experienced a decline in sales, dropping to $25.6 million from $42.6 million in the previous year, largely due to revisions in estimated costs for long-term contracts. The overall gross profit for the first half of 2025 was $113.7 million, reflecting a gross margin of 27.7%, up from 26.9% in the prior year. The increase in gross profit was attributed to higher sales volume and improved production efficiencies, despite incurring $5.8 million in charges related to simplification initiatives in the Aerospace segment.

Operationally, Astronics reported a backlog of $645.4 million as of June 28, 2025, an increase from $599.2 million at the end of 2024. The company’s cash and cash equivalents rose to $13.5 million, up from $9.3 million at the end of 2024. The total liabilities decreased to $375.1 million from $392.7 million, while shareholders' equity increased to $271.6 million from $256.1 million, indicating a strengthening balance sheet. The company also reported a reduction in long-term debt, which fell to $159.3 million from $168.7 million.

Strategically, Astronics completed the acquisition of Envoy Aerospace, LLC, a provider of FAA Organization Designation Authorization services, for approximately $8.3 million. This acquisition is expected to enhance the company’s capabilities within its Aerospace segment. The company continues to focus on operational efficiencies and cost management, particularly in light of ongoing supply chain challenges and inflationary pressures. Looking ahead, Astronics anticipates continued growth driven by strong demand in the aerospace sector, although it remains cautious about potential impacts from geopolitical tensions and economic conditions.