Astronics (NasdaqGS:ATRO) Q4 2025 Earnings call February 24, 2026 04:45 PM ET Speaker5Greetings, welcome to the Astronics Corporation fourth quarter and fiscal year 2025 financial results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Deborah Pawlowski, Investor Relations for Astronics. Than ...

Summary of Astronics (NasdaqGS:ATRO) FY Conference Call - February 12, 2026 Company Overview - **Industry**: Aerospace and Defense - **Company**: Astronics - **Business Segments**: - 90% Aerospace - 70% Commercial Transport - 10% Military - 10% Business Jet - 10% Test - **Revenue Expectation**: Projecting top-line revenue approaching $1 billion for the year, with a record fourth quarter reported [6][16] Core Business Insights - **In-Flight Entertainment and Connectivity**: Approximately 50% of revenue comes from in-flight entertainment and connectivity products, catering to over 200 airlines globally [6][7] - **Aircraft Lighting**: Astronics is one of the largest aircraft lighting companies, providing various lighting solutions for both cabin and exterior aircraft needs [7][10] - **Flight Critical Electrical Power**: Focus on advanced electrical systems for small aircraft, with significant opportunities in military programs like FLRAA [10][11] Financial Performance - **Growth Trends**: - Experienced a recovery from pandemic lows, with an average growth of 18% until 2025, followed by an 8% growth in 2025 [25][26] - Fourth quarter revenue increased to approximately $240 million, indicating a new baseline for future growth [27][32] - **Contribution Margins**: Expected contribution margins of 40% on incremental revenue [27][41] Market Dynamics - **Backlog and Lead Times**: - 75% of revenue expected to ship within a year, with a record backlog despite normalizing lead times [35][48] - Improvements in supply chain, particularly in electronics from Asia, have contributed to reduced lead times [49][53] Retrofit Business - **Market Recognition**: Airlines increasingly recognize the importance of in-flight entertainment and connectivity, leading to a strong retrofit market [58][62] - **Opportunity**: Retrofit opportunities are significant due to the shorter life cycles of in-flight entertainment systems compared to traditional aircraft components [75][79] Competitive Landscape - **Connectivity Technologies**: Astronics is adapting to the evolving landscape of connectivity technologies, including LEO satellites, and can work with various providers [106][121] - **Aftermarket Opportunities**: Anticipated aftermarket opportunities for the FLRAA program, similar to long-term production runs seen in other military aircraft [159] M&A Strategy - **Acquisition Approach**: Open to various acquisition strategies, focusing on product line extensions, customer relationships, and market share [166][171] - **Current Focus**: Prioritizing existing opportunities over new acquisitions, with a more robust balance sheet post-pandemic [171][172] Financial Management - **Convertible Debt**: Successfully refinanced convertible debt, reducing potential dilution and improving the balance sheet [185][190] - **Future Plans**: Committed to strengthening the balance sheet and managing dilution risks associated with convertible notes [196][203] Test Systems Segment - **U.S. Army Contract**: Awaiting production turn-on for a test station contract with the U.S. Army, which has faced delays but is expected to proceed soon [208][220] Conclusion - Astronics is positioned for growth in the aerospace sector, with strong demand for in-flight entertainment, retrofit opportunities, and military contracts. The company is focused on leveraging its existing capabilities while managing financial health and exploring strategic acquisitions.

Summary of Astronics Corp (ATRO) FY Conference Call - August 27, 2025 Company Overview - **Company**: Astronics Corp (ATRO) - **Market Capitalization**: Just above $1 billion [4] - **Stock Structure**: Two classes of stock; Class B shares have 10 votes, common shares have 1 vote [4] - **Ownership**: Strong institutional and insider ownership [4] Business Segments - **Aerospace Segment**: 90% of revenue, primarily from commercial aerospace [5][6] - **Test Segment**: 10% of revenue [5] - **Major Markets**: - Commercial aerospace (largest market) - Defense and government (20% of recent sales) - General aviation (8%) [6] Financial Performance - **Sales Decline**: Revenue dropped from $770 million in 2019 to $445 million during the pandemic [7] - **Recovery**: Strong bookings and backlog near record highs indicate recovery [8] - **Recent Sales**: Q2 sales were approximately $204.7 million, with $193.6 million from the aerospace segment [39] - **Bookings**: Q2 bookings were $177 million, lower due to timing but demand remains robust [40] - **Backlog**: Elevated at $645 million, mostly deliverable within 12 months [41] - **Gross Profit**: Q2 GAAP gross profit was $52.8 million, impacted by an EAC adjustment [42] - **Adjusted Metrics**: Adjusted net income increased to $13.7 million, with adjusted EBITDA rising 25.5% to $25.4 million [45] Strategic Focus Areas 1. **In-Flight Entertainment and Connectivity**: Represents half of the business, with a dominant market share in passenger power systems [10][18] 2. **Aircraft Lighting**: Largest aerospace lighting company, involved in military, commercial, and private aircraft [12] 3. **Flight Critical Electrical Power**: Focus on high-tech systems for smaller aircraft, utilizing electronic circuit breakers [24][28] 4. **Test Systems**: Includes military radio tests and subway systems, with significant contracts in progress [34][36] Key Programs and Opportunities - **FLRAA Program**: Involvement in the US Army's Future Long Range Assault Aircraft, expected to be a significant revenue driver [30][59] - **Boeing and Airbus Production Rates**: Increased production rates for both companies are expected to positively impact revenue [60][62] Challenges and Risks - **Tariffs and Supply Chain**: Current tariffs could impact the business by approximately $20 million, with significant portions coming from Malaysia and China [50][51] - **Rare Earth Materials**: Sourcing challenges for rare earths used in products, but potential redesigns are being explored [53][55] - **Market Conditions**: The test segment has faced challenges due to reduced ridership in transit systems, but long-term opportunities are anticipated [37] Financial Position - **Liquidity**: Total liquidity of approximately $191 million, providing flexibility for growth investments [48] - **CapEx Expectations**: Elevated CapEx of $40 to $50 million for 2025 to support growth initiatives [47] Conclusion - **Outlook**: Positive visibility into the next five years, with expectations for improved performance and value delivery for shareholders [48]