Astronics (US:ATRO)2025-05-06 20:19Financial Performance - First quarter 2025 revenue increased by 11.3% to $205.9 million, exceeding the high end of the company's guidance range[4] - Adjusted EBITDA for the first quarter was $30.7 million, representing 14.9% of sales, a 74.4% increase compared to the prior year[11] - Net income for the first quarter was $9.5 million, or $0.26 per diluted share, a significant recovery from a net loss of $3.2 million in the prior year[10] - Gross profit for the quarter was $60.849 million, with a gross margin of 29.5%, an increase from 25.7% in the prior year[38] - Operating income improved to $13.137 million, with an operating margin of 6.4%, up from 0.9% in the same quarter last year[38] - The company reported a total segment operating profit of $20.041 million, significantly higher than $9.018 million in Q1 2024[45] - Interest expense decreased to $3.150 million from $5.759 million year-over-year, indicating improved financial management[38] - The company achieved a net income of $9.528 million, translating to a net income margin of 4.6%, compared to a net loss of $3.178 million in Q1 2024[38] - The trailing twelve months adjusted EBITDA totaled $109,580 thousand, indicating strong operational performance[69] Aerospace Segment Performance - Aerospace segment sales reached a record $191.4 million, up 17% year-over-year, driven by strong demand in the Commercial Transport and Military Aircraft markets[12] - Aerospace sales were a significant driver, contributing $191.375 million, compared to $163.638 million in the previous year, reflecting a growth of 16.9%[45] - The Aerospace segment's operating profit was $22.3 million, or 11.6% of sales, despite legal reserve adjustments related to a patent dispute[14] - The adjusted operating income for the aerospace segment was $31,015,000, with an adjusted aerospace margin of 16.2%, compared to 9.6% in Q1 2024[62] - The backlog for the aerospace segment increased to $613,903,000 as of March 29, 2025, compared to $537,563,000 at the end of Q4 2024[51] Bookings and Backlog - The company achieved record bookings of $279.7 million in the quarter, resulting in a book-to-bill ratio of 1.36:1 and a record backlog of $673.0 million[4] - Total bookings for Q1 2025 were $279,726,000, resulting in a book-to-bill ratio of 1.36, indicating strong demand[51] Cash Flow and Assets - Cash flow from operations was $20.6 million in the first quarter, reflecting improved working capital management[21] - Cash and cash equivalents increased to $24.805 million, up from $9.285 million at the end of 2024[41] - Total assets rose to $662.242 million, compared to $648.764 million at the end of the previous year[41] Guidance and Future Outlook - The company is maintaining its 2025 revenue guidance in the range of $820 million to $860 million, which would represent a 6% increase over 2024 sales[27] - Astronics Corporation is focusing on expanding its aerospace segment and improving operational efficiencies to drive future growth[63] - The company plans to enhance its market presence through strategic expansions and potential acquisitions in the aerospace sector[66] - The company is committed to maintaining a robust pipeline of new products and technologies to drive future growth[66] Segment Challenges - The Test Systems segment reported a sales decline of $6.9 million to $14.6 million, impacted by a revision of estimated costs on a long-term contract[16] - The company experienced a decline in test systems segment sales, which fell to $14,561,000, down 32.1% from $21,436,000 in Q1 2024[49]