Core Insights - Astronics Corporation is focused on providing advanced technologies primarily for the aerospace, defense, and semiconductor industries, with a significant emphasis on in-flight entertainment and connectivity systems [17]. Group 1: Business Overview - The company operates in two segments: Aerospace, which constitutes the majority of revenue, and Test, which consistently represents about 10% of revenue [4]. - Approximately 70% of Astronics' revenue is derived from commercial aerospace, with 21% from government sources and 10% from general aviation [4]. Group 2: Product Strategy - Astronics' strategy revolves around three major product areas, with in-flight entertainment and connectivity accounting for roughly half of sales [3]. - The company has a strong focus on retrofit opportunities in cabin electronics, as in-flight entertainment systems typically have a lifecycle of five to seven years compared to the 25 to 30-year lifecycle of aircraft [2]. Group 3: Financial Performance - For Q4, the company expects revenue to be between $236 million and $239 million, with bookings anticipated at approximately $257 million [9]. - The preliminary year-end backlog is reported at $669 million, which is elevated compared to pre-pandemic levels [10]. - Adjusted net income for the third quarter rose to $19.4 million, or $0.49 per diluted share, reflecting improved profitability [12]. Group 4: Recent Developments - Astronics is involved in the U.S. Army's Future Long Range Assault Aircraft (FLRAA) program, providing the entire electrical distribution system, with expected content valued at over $1 million per aircraft [6]. - The company has also engaged in multiple electric aircraft development programs and is not overly reliant on this market [6]. Group 5: Capital Structure and Financing - The company refinanced its convertible debt, issuing $225 million of 0% interest convertible bonds and repurchasing about 80% of its 5.5% convertible notes [13]. - Astronics transitioned to a $300 million cash-flow revolver, enhancing liquidity and reducing administrative burdens [14].

Summary of Astronics Conference Call Company Overview - **Company Name**: Astronics - **Market Cap**: Approximately $2.3-$2.4 billion [2] - **Stock Performance**: Up about 300% over the last 12 months [3] - **Share Structure**: 31 million common shares (1 vote per share) and 4 million B shares (10 votes per share) [3] Business Segments - **Aerospace Segment**: Dominates with about 70% of total volume, focusing on military, commercial, transport, and private aircraft [4] - **Test Segment**: Accounts for about 10% of overall volume, facing challenges during the pandemic [4][9] Key Products and Services - **In-Flight Entertainment and Connectivity**: Represents roughly 50% of sales, with a significant aftermarket component due to the long lifecycle of aircraft [6][12] - **Lighting Systems**: Major player in aircraft lighting, dependent on production rates [7] - **Flight-Critical Electrical Power**: Emerging growth area with significant opportunities, particularly in military applications [8][19] Market Dynamics - **COVID-19 Impact**: Sales were significantly affected during the pandemic but have rebounded strongly [5] - **Growth Expectations**: Anticipated volume growth of 10%-15% for 2026 compared to 2025 [5] - **Order Backlog**: Preliminary year-end backlog of $669 million, elevated compared to historical norms [29] Financial Performance - **Q4 Revenue Expectations**: Projected to be between $236 million and $239 million [27] - **Gross Margin**: 30.5% for Q3, with aerospace segment margins around 31% [30] - **Operating Profit**: Increased to about $26 million, benefiting from operational leverage [30] - **Adjusted EBITDA**: Increased by 21% to $32.7 million, reflecting improved profitability [32] Strategic Initiatives - **Acquisitions**: Recent acquisitions include an FAA certification capability and a seat motion company in Germany [22][23] - **Cost Reduction**: Ongoing efforts to improve the test segment's performance through cost-cutting measures [31] Future Outlook - **Production Rates**: Positive outlook due to Boeing and Airbus ramping up production, which is crucial for Astronics [39][40] - **New Programs**: Involvement in the FLRAA program for the U.S. Army, expected to generate significant revenue [19][41] - **Market Trends**: Focus on small aircraft and drones, with ongoing development in electric aircraft [20] Risks and Challenges - **Supply Chain Issues**: Previous aerospace supply chain challenges have led to longer lead times, but these are normalizing [28] - **Litigation Expenses**: Noted decrease in litigation expenses benefiting operating profit [30] Conclusion - Astronics is positioned for growth with a strong order backlog, strategic acquisitions, and a focus on high-demand segments in aerospace and defense. The company is navigating post-pandemic recovery while capitalizing on emerging opportunities in electrical systems and in-flight connectivity.

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Needham Growth Conference January 13, 2026 Nasdaq: ATRO Peter J. Gundermann, Chairman, President & CEO Nancy L. Hedges, Vice President & CFO astronics.com Safe Harbor Statement This presentation contains forward-looking statements as defined by the Securities Exchange Act of 1934. One can identify these forward-looking statements by the use of the words "expect," "anticipate," "plan," "may," "will," "estimate," "feeling" or other similar expressions and include all statements with regard to the Company's pr ...

Core Insights - Astronics Corporation (ATRO) stock has increased by 25.5% in the past month, outperforming the Zacks Aerospace-Defense Equipment industry's growth of 14% and the broader Zacks Aerospace sector's return of 6.9% [1] - Other industry players like Kratos Defense & Security Solutions (KTOS) and Rocket Lab USA, Inc. (RKLB) have also shown strong performance, with KTOS and RKLB shares rising by 35.5% and 44.3%, respectively [2] Company Performance - ATRO's recent gains may attract investor interest, but it is essential to evaluate whether the company's fundamentals can support long-term growth or if the recent rise is temporary [3] - The company has reported preliminary fourth-quarter revenues of $236-$239 million, exceeding guidance, and full-year revenues of approximately $860 million, indicating solid year-over-year growth [5] - Preliminary bookings for the quarter were around $257 million, with full-year orders totaling approximately $924 million [8] Growth Prospects - The Zacks Consensus Estimate for 2026 sales suggests a year-over-year growth of 14.5% [9] - The Zacks Consensus Estimate for 2026 earnings indicates a year-over-year growth of 35% [10] - The preliminary revenue outlook for 2026 is projected at $950-$990 million, driven by sustained defense investments and ongoing airline spending on aircraft upgrades [8] Valuation and Financial Metrics - ATRO's forward 12-month price-to-sales (P/S) ratio is 2.36X, significantly lower than the industry average of 12.81X, indicating a discounted valuation [13] - The company has a current ratio of 2.87, suggesting sufficient capital to meet short-term debt obligations [15] - ATRO's Return on Invested Capital (ROIC) stands at 15.77%, well above the industry average of 3.30%, reflecting efficient capital use [17]

Group 1: Company Performance - Astronics Corporation (ATRO) shares increased by 11.3% to close at $64.81, with trading volume significantly higher than usual [1] - Preliminary results for 2025 indicated strong operating momentum, with fourth-quarter revenue exceeding guidance and full-year revenue showing solid year-over-year growth [3] - The company is expected to report quarterly earnings of $0.55 per share, reflecting a year-over-year increase of 14.6%, and revenues are projected to be $234.83 million, up 12.6% from the previous year [4] Group 2: Industry Context - U.S. President Donald Trump's proposal to increase military spending to $1.5 trillion for 2027 enhances expectations for sustained defense spending, positively impacting aerospace and defense suppliers [2] - Astronics is part of the Zacks Aerospace - Defense Equipment industry, which is currently experiencing positive investor sentiment due to increased defense budget visibility [5] - Woodward (WWD), another company in the same industry, has seen a 1% decrease in stock price but has returned 11.2% over the past month, with its EPS estimate changing by +2.6% over the last month [5][6]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 8, 2026 ASTRONICS CORPORATION (Exact name of registrant as specified in its charter) New York 0-7087 16-0959303 (State of Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.) 130 Commerce Way East Aurora, New York 14052 (Address of principal ...

EAST AURORA, N.Y.--(BUSINESS WIRE)--Astronics Corporation (Nasdaq: ATRO) to Webcast Presentations at the Annual Needham Growth Conference & the CJS Securities Annual New Ideas Conference. ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Astronics Corporation (ATRO) - Astronics Corporation currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [3][4] - The stock has shown a price increase of 2.17% over the past week, outperforming the Zacks Aerospace - Defense Equipment industry, which rose by 1.5% [6] - Over the past month, ATRO's shares have increased by 10.7%, compared to the industry's 5.55% [6] - In the last quarter, ATRO shares have risen by 23.15%, and over the past year, they have gained 254.7%, significantly outperforming the S&P 500's increases of 2.39% and 18.18%, respectively [7] Trading Volume - The average 20-day trading volume for ATRO is 561,510 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, one earnings estimate for ATRO has increased, raising the consensus estimate from $1.65 to $1.82 [10] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions during the same period [10] Conclusion - Given the strong performance metrics and positive earnings outlook, ATRO is positioned as a solid momentum pick and should be considered for investment [12]

Core Insights - The focus on healthy cash flow is becoming increasingly important for investors as they prepare for 2026, emphasizing that consistent cash generation is crucial for sustaining operations, funding growth, and maintaining financial flexibility [1][3] Group 1: Importance of Cash Flow - Profits alone do not guarantee long-term stability; companies with inconsistent cash flows may face challenges even if they are profitable [3] - Positive cash flow indicates an increase in liquid assets, allowing companies to meet obligations, reinvest, and weather downturns, while negative cash flow reduces liquidity and flexibility [5] - Increasing cash flow is essential for future growth, reflecting management's efficiency and reducing reliance on external financing [6] Group 2: Stock Picks Based on Cash Flow - Stocks such as Astronics Corporation (ATRO), Great Lakes Dredge & Dock Corporation (GLDD), Natural Gas Services Group, Inc. (NGS), and Strattec Security Corporation (STRT) are highlighted as strong picks due to improving cash flow trends [2][8] - ATRO is expanding into aircraft lighting integration, with earnings estimates for 2025 and 2026 rising by 10.3% and 8.4%, respectively [9][10] - GLDD's earnings expectations for 2025 and 2026 have increased by 6.9%, supported by strong demand for U.S. dredging operations [10] - NGS has seen earnings estimates improve by 9.5% and 14.1% for 2025 and 2026, respectively, due to its natural gas compression equipment and services [11] - STRT's fiscal 2026 earnings estimate has increased by 23.3%, currently standing at $5.24 per share [12] Group 3: Screening Parameters for Stock Selection - Stocks were screened for those with cash flow in the latest quarter at least equal to the 5-year average cash flow per common share, indicating a positive trend [7] - Additional criteria included a Zacks Rank of 1 (Strong Buy), an average broker rating of 1, a current price of at least $5, and a VGM Score of B or better [8]