Astronics (US:ATRO)2025-11-04 21:17Financial Performance - Third quarter sales increased 3.8% to $211.4 million, driven by Aerospace growth of 8.5% to $192.7 million[4]. - Third quarter net loss was $11.1 million, reflecting $32.6 million in refinancing-related charges; adjusted EBITDA was $32.7 million, or 15.5% of sales[4]. - Gross profit increased 16.8% to $64.5 million, with a gross margin improvement to 30.5%[5]. - Operating income for Q3 2025 was $23.1 million, with an operating margin of 10.9%, compared to 4.1% in Q3 2024[37]. - Net loss for Q3 2025 was $11.1 million, or 5.2% of sales, compared to a net loss of $11.7 million, or 5.8% of sales, in Q3 2024[37]. - Adjusted EBITDA for the three months ended September 27, 2025, was $32,718 thousand, representing a margin of 15.5%, up from 13.3% in the prior year[52]. - Adjusted net income for the three months ended September 27, 2025, was $19,404 thousand, compared to $12,163 thousand for the same period in 2024[57]. Sales and Revenue Outlook - The company expects fourth quarter revenue to be between $225 million and $235 million, leading to a total revenue expectation of $847 to $857 million for 2025[4][26]. - Q3 2025 sales were $211.4 million, a 3.4% increase from $203.7 million in Q3 2024[37]. - Total consolidated sales for the nine months ended September 27, 2025, were $622,061 thousand, representing a 6.0% increase from $586,886 thousand in the prior year[46]. - Aerospace segment sales increased by 11.5% to $577,726 thousand for the nine months ended September 27, 2025, compared to $518,135 thousand in the same period of 2024[46]. Backlog and Bookings - Solid quarterly bookings of $210.4 million resulted in a backlog of $646.7 million[4]. - Backlog at the end of Q3 2025 was $646.7 million, with approximately 74% expected to be recognized as revenue over the next twelve months[27]. - The company reported a backlog of $646,723 thousand as of September 27, 2025, compared to $599,229 thousand at the end of the previous quarter[50]. Cost and Expenses - Interest expense decreased by 53.0% to $3.0 million due to lower rates following refinancing activities[12]. - The company recorded a loss on settlement of debt amounting to $32,644 thousand for the nine months ended September 27, 2025[44]. - Interest expense for the nine months ended September 27, 2025, was $9,167 thousand, a decrease from $17,832 thousand in the same period of 2024[44]. Capital Expenditures and Debt - Planned capital expenditures for 2025 are expected to be between $40 million and $50 million[27]. - Long-term debt rose significantly to $334.0 million from $168.7 million at the end of 2024[40]. - Capital expenditures for the nine months ended September 27, 2025, were $19,860 thousand, up from $5,244 thousand in the prior year[42]. Cash Flow - The company generated $34.2 million in cash from operations during the third quarter[4]. - The company generated net cash provided by operating activities of $47,172 thousand for the nine months ended September 27, 2025, compared to $4,149 thousand in the prior year[42]. Market Outlook - The company anticipates a significant reduction in future dilution due to the repurchase of 80% of its 5.5% Convertible Senior Notes due 2030[21]. - The company anticipates low double-digit growth for 2026, indicating a strong market outlook[28]. - The company is focused on developing technologies and capabilities to provide innovative solutions to its targeted markets[31].