EX-99.1 2 ex99120251231pr.htm EX-99.1 Document
Exhibit 99.1
atrocorp_image1a11a.jpg
Astronics Corporation • 130 Commerce Way • East Aurora, NY • 14052-2164
FOR IMMEDIATE RELEASE
Astronics Corporation Reports Strong
Fourth Quarter Finish to 2025
•Fourth quarter sales grew 15.1% to a record $240.1 million driven by record Aerospace sales of $219.6 million, a 16.5% year over year increase
•Achieved fourth quarter net income of $29.6 million, or $0.78 per diluted share; adjusted EBITDA1 was $45.7 million, or 19.0% of sales
•Aerospace operating margin expanded to 19.0%, bolstered by favorable mix; adjusted Aerospace operating margin1 was 19.8%
•Booked $257.2 million in orders; ended 2025 with record backlog of $674.5 million
•Solid cash generation with $27.6 million in cash from operations in the quarter and $74.8 million for the year
•Maintained 2026 revenue guidance at $950 million to $990 million
EAST AURORA, NY, February 24, 2026 – Astronics Corporation (Nasdaq: ATRO) (“Astronics” or the “Company”), a leading supplier of advanced technologies and products to the global aerospace, defense, and other mission critical industries, today reported financial results for the three and twelve months ended December 31, 2025. Financial results include the acquisition of Bühler Motor Aviation (“BMA”) on October 13, 2025.
Peter J. Gundermann, Chairman, President and Chief Executive Officer, commented, “We made excellent progress in 2025 and ended the year with a strong fourth quarter. Robust demand across our aerospace markets drove record sales in the quarter. In addition, the acquisition of BMA advanced our market leadership position in seat actuation and other motion systems for aircraft. Our growth is translating well to stronger profitability. Operating margin expanded nicely on higher volumes and was supported as well by pricing initiatives, operating efficiencies and favorable mix. We also generated strong cash flow from operations of $27.6 million in the quarter. We ended 2025 with record backlog, better operating efficiencies, lower cost debt and a solid liquidity position, all of which positions us well for the opportunities we see in 2026.”
1 Adjusted EBITDA, adjusted EBITDA margin, and adjusted segment operating margin are Non-GAAP financial measures. Please see the reconciliation of GAAP to non-GAAP financial measures in the tables that accompany this release.
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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
February 24, 2026
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Fourth Quarter Results
Three Months EndedYear Ended
($ in thousands)December 31, 2025December 31, 2024% ChangeDecember 31, 2025December 31, 2024% Change
Sales$240,067 $208,540 15.1 %$862,128 $795,426 8.4 %
Gross profit$79,971 $62,122 28.7 %$258,158 $220,428 17.1 %
Gross margin33.3 %29.8 %29.9 %27.7 %
Income from operations$35,462 $8,876 299.5 %$76,412 $26,466 188.7 %
Operating margin %
14.8 %4.3 %8.9 %3.3 %
Loss on settlement of debt$— $3,161 $32,644 $10,148 
Net income (loss)$29,615 $(2,832)1,145.7 %$29,359 $(16,215)281.1 %
Net income (loss) %12.3 %(1.4)%3.4 %(2.0)%
Adjusted operating income2
$38,330 $23,837 60.8 %$105,163 $61,538 70.9 %
Adjusted operating margin %2
16.0 %11.4 %12.2 %7.7 %
Adjusted net income2$28,516 $16,849 69.2 %$78,634 $38,136 106.2 %
Adjusted EBITDA2
$45,673 $31,539 44.8 %$134,538 $96,466 39.5 %
Adjusted EBITDA margin %2
19.0 %15.1 %15.6 %12.1 %
Fourth Quarter 2025 Results (compared with the prior-year period, unless noted otherwise)
Growth in sales was driven by continued strength in demand for the Aerospace segment primarily from the Commercial Transport market. Aerospace sales increased $31.0 million, or 16.5%, and Test Systems sales increased $0.5 million.
Gross profit increased $17.8 million to $80.0 million, or 33.3% of sales, a 350 basis point expansion over gross margin of 29.8% in the comparator quarter. Margin expansion was driven by higher volume, favorable mix, pricing actions including some true up pricing recovery, improved productivity, and the benefit of Test Systems’ restructuring initiatives. This more than offset a $2.9 million increase in tariff expense.
In the fourth quarter of 2025, selling, general and administrative expenses (“SG&A”) decreased $7.3 million primarily from a $9.0 million reduction in legal reserves and litigation-related expenses, somewhat offset by SG&A associated with the acquired BMA business and higher legal and accounting expenses related to the acquisition. R&D was $1.4 million lower reflecting the timing of projects.
Higher gross profit and reduced SG&A resulted in operating margin of 14.8% compared with 4.3% in the prior-year period. Adjusted operating margin2 expanded 450 basis points.
Interest expense was down $0.8 million, or 18.5%, on lower rates following 2025 refinancing activities. The fourth quarter included $0.6 million in expense related to the write-off of deferred financing fees related to two exiting revolving credit facility lenders, classified within interest expense.
Tax expense in the quarter was $2.6 million compared with $3.4 million in the prior-year period, mostly because of a valuation allowance reversal associated with research and development costs that are expected to be expensed for tax purposes in the current year under the One Big Beautiful Bill Act.
2 Adjusted operating income, adjusted operating margin, adjusted segment operating profit, adjusted segment operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted diluted earnings per share (“EPS”) are Non-GAAP financial measures. Please see the reconciliation of GAAP to non-GAAP financial measures in the tables that accompany this release.
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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
February 24, 2026
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Consolidated net income of $0.78 per diluted share improved from a net loss of $0.08 per diluted share in the prior-year period due to stronger operating profit and lower interest expense. Adjusted diluted earnings per share2 increased $0.29 per diluted share, or 62.5%, to $0.75 per diluted share. Adjusted EBITDA2 increased 44.8% to $45.7 million, and adjusted EBITDA margin2 expanded 390 basis points to 19.0% of consolidated sales.
Bookings were up 31.3% to $257.2 million in the quarter. For the year, bookings grew 14.4% to $924.4 million with a book-to-bill ratio of 1.07:1. Backlog at the end of the quarter was $674.5 million, the highest recorded in Company’s history.
Aerospace Segment Review (compared with the prior-year period, unless noted otherwise)
Record Aerospace segment sales of $219.6 million were up $31.0 million, or 16.5%. Sales in the Commercial Transport market grew $26.1 million, or 18.5%. Growth was primarily related to increased demand by airlines for cabin power, seat motion, lighting and safety and system certification products and services, partially offset by lower demand for avionics products. Military Aircraft sales increased $3.6 million, or 14.5%, to $28.0 million, driven by pricing initiatives, increased demand for lighting and safety products, and continued progress on MV-75 engineering efforts. General Aviation sales were up $4.6 million, or 26.0%, to $22.3 million due to higher inflight entertainment & connectivity (“IFEC”) product sales to the VVIP market. Other sales were down $3.2 million as the Company has wound down its non-core contract manufacturing arrangements.
Aerospace segment operating profit of $41.7 million, or 19.0% of sales, measurably improved over the prior-year period reflecting the leverage gained on higher volume, favorable mix, pricing initiatives, and improving production efficiencies. The quarter also benefitted from a $9.3 million decrease in litigation-related reserves and expenses. Adjusted Aerospace operating profit2 increased 44.1% to $43.6 million, or 19.8% of sales, a 380-basis point expansion over the comparator quarter.
Aerospace bookings were up 30.1% to $237.3 million for a book-to-bill ratio of 1.08:1. Backlog for the Aerospace segment was $600.8 million at the end of 2025 which was an 11.8% increase over backlog at the end of 2024 and a 5.0% increase over the trailing third quarter.
Mr. Gundermann commented, “Our Aerospace business had a strong fourth quarter with record sales that led to a 19.0% operating margin, surpassing our near-term margin target and a testament to its potential. In addition to higher volume, profitability benefitted from a favorable mix within our VVIP market as well as with some recovery related to pricing initiatives. We have very strong tailwinds supporting our Aerospace business that we believe will continue to drive strong results in 2026 and beyond.”
Test Systems Segment Review (compared with the prior-year period, unless noted otherwise)
Test Systems segment sales were $20.5 million, up $0.5 million from the comparator quarter in 2024.
Test Systems segment operating profit was $1.1 million compared with slightly below break-even in the fourth quarter of 2024. The comparator quarter included $1.4 million in expenses related to simplification and restructuring activities which contributed to the profit improvement at this sales level. Test Systems continued to be negatively affected by mix and under absorption of fixed costs at current volume levels.
Bookings for the Test Systems segment in the quarter were $19.9 million, for a book-to-bill ratio of 0.97:1 for the quarter. Backlog was $73.7 million at the end of 2025.
Mr. Gundermann commented, “Our Test business generated operating profit on relatively low sales, which demonstrates the significant cost-cutting initiatives we have implemented across the business. We expect its level of profitability will meaningfully improve once production for the U.S. Army radio test program begins. At this time, we believe we will receive production orders for that program early in the second quarter or soon thereafter.”
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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
February 24, 2026
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Balance Sheet and Liquidity
Cash provided by operations in the fourth quarter of 2025 was $27.6 million, reflecting higher cash earnings, offset by higher working capital requirements associated with increased order volume. Capital expenditures in the quarter were $11.8 million and $31.7 million for the full year. Elevated capital expenditures in 2025 reflect the investments made on previously deferred spending as well as the consolidation of operations in a new Seattle facility.
Long-term debt, net of cash, increased $168.2 million to $324.8 million at the end of 2025 compared with $156.6 million. Debt was higher due to the refinancing actions that resulted in the repurchase of 80% of the $165 million 5.5% convertible bonds. The refinancing was accomplished through the issue of $225 million of 0% convertible bonds and included the purchase of a capped call.
On October 22, 2025, the Company entered into a new $300 million senior secured, cash flow-based revolving credit facility (the “New Revolver”) which matures in October 2030. The New Revolver includes a $100 million accordion feature which can be incrementally expanded if maximum leverage requirements are met.
The Company had available liquidity of $230.9 million including $18.2 million in cash at the end of 2025.
2026 Outlook
The Company expects 2026 revenue to be approximately $950 million to $990 million. The midpoint of this range would be a 13% increase over 2025 sales. The Company expects first quarter revenue to be approximately $220 million to $230 million, up 9% at the midpoint of the range over the prior-year period.
Backlog at December 31, 2025 was a record $674.5 million, of which approximately 79% is expected to be recognized as revenue over the next twelve months. Planned capital expenditures in 2026 are expected to be in the range of $40 million to $50 million and include the remaining costs associated with the Seattle operation consolidation. In addition, the Company plans to invest approximately $14 million to $18 million in 2026 for the implementation of a global enterprise resource planning system. The investment will be reported as a cash outflow from operations, rather than as a capital expenditure.
Mr. Gundermann concluded, “We expect 2026 will be another very strong year with double digit growth, weighted slightly toward the second half. Our future is very bright. We have a long runway of opportunities on which to execute and are very excited about 2026 and beyond. We are also striving to consistently deliver high-teens operating margins for the consolidated business which should be realizable with the expected improvement with the Test business. In all, we expect we will continue to create more value for our customers, shareholders and the Astronics team.”
Fourth Quarter 2025 Webcast and Conference Call
The Company will host a teleconference today at 4:45 p.m. ET. During the teleconference, management will review the financial and operating results for the period and discuss Astronics’ corporate strategy and outlook. A question-and-answer session will follow.
The Astronics conference call can be accessed by calling (201) 493-6784. The listen-only audio webcast can be monitored at investors.astronics.com. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13758335. The telephonic replay will be available from 8:00 p.m. on the day of the call through Tuesday, March 10, 2026. The webcast replay can be accessed via the investor relations section of the Company’s website where a transcript will also be posted once available.
About Astronics Corporation
Astronics Corporation (Nasdaq: ATRO) serves the world’s aerospace, defense, and other mission-critical industries with proven innovative technology solutions. Astronics works side-by-side with customers,
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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
February 24, 2026
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integrating its array of power, connectivity, lighting, structures, interiors, and test technologies to solve complex challenges. For over 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe manufacturers, airlines, military branches, completion centers, and Fortune 500 companies rely on the collaborative spirit and innovation of Astronics. The Company’s strategy is to increase its value by developing technologies and capabilities that provide innovative solutions to its targeted markets.
Safe Harbor Statement
This news release 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 2026 and first quarter revenue outlook, the amount of revenue in the second half of 2026, the ability to deliver high-teens operating margins for the consolidated business, the amount of capital expenditures for 2026 as well as the amount of investment in an ERP system, the amount of backlog to be recognized as revenue over the next twelve months, the strength and length of time associated with tailwinds for the Aerospace segment, the timing of the receipt of production orders for U.S. Army radio test set program and the level of profitability contribution from the Test segment with its onset, the amount of opportunities available to be executed, the ability to achieve high-teen operating margins on a consolidated basis consistently, and statements regarding the strategy of the Company and its outlook. Forward-looking statements also include all statements related to achieving any revenue or profitability expectations, expectations of continued growth, the level of liquidity, the level of cash generation, the level of demand by customers and markets and the amount of expected capital expenditures. Because such statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. Important factors that could cause actual results to differ materially from what may be stated here include the trend in growth with passenger power and connectivity on airplanes, the state of the aerospace and defense industries, the market acceptance of newly developed products, internal production capabilities, the timing of orders received, the status of customer certification processes and delivery schedules, the demand for and market acceptance of new or existing aircraft which contain the Company’s products, the impact of regulatory activity and public scrutiny on production rates of a major U.S. aircraft manufacturer, the need for new and advanced test equipment, customer preferences and relationships, the effectiveness of the Company’s supply chain, and other factors which are described in filings by Astronics with the Securities and Exchange Commission. Except as required by applicable law, the Company assumes no obligation to update forward-looking information in this news release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.
Use of Non-GAAP Financial Metrics and Additional Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Astronics provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. Astronics management uses these measures for reviewing the financial results of Astronics for budget planning purposes and for making operational and financial decisions. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, help investors evaluate Astronics core operating and financial performance and business trends consistent with how management evaluates such performance and trends.
FINANCIAL TABLES FOLLOW
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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
February 24, 2026
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For more information, contact:
Company:Investor Relations:
Nancy L. Hedges, Chief Financial OfficerDeborah K. Pawlowski, Alliance Advisors LLC
Phone: (716) 805-1599Phone: (716) 843-3908
Email: nancy.hedges@astronics.comEmail: dpawlowski@allianceadvisors.com


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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
February 24, 2026
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ASTRONICS CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS DATA
(Unaudited, $ in thousands except per share data)


Three Months EndedYear Ended
12/31/202512/31/202412/31/202512/31/2024
Sales$240,067 $208,540 $862,128 $795,426 
Cost of products sold160,096 146,418 603,970 574,998 
Gross profit379,971 62,122 258,158 220,428 
Gross margin33.3 %29.8 %29.9 %27.7 %
Research and development expenses10,626 12,068 43,475 52,086 
Selling, general and administrative33,883 41,178 138,271 141,876 
SG&A % of sales14.1 %19.7 %16.0 %17.8 %
Income from operations35,462 8,876 76,412 26,466 
Operating margin14.8 %4.3 %8.9 %3.3 %
Loss on settlement of debt— 3,161 32,644 10,148 
Other (income) expense(176)973 (738)2,187 
Interest expense, net3,394 4,166 12,561 21,998 
Income (loss) before tax32,244 576 31,945 (7,867)
Income tax expense2,629 3,408 2,586 8,348 
Net income (loss)$29,615 $(2,832)$29,359 $(16,215)
Net income (loss) %12.3 %(1.4)%3.4 %(2.0)%
Basic earnings (loss) per share:$0.83 $(0.08)$0.83 $(0.46)
Convertible notes interest expense, net 358 — — — 
Net income (loss) - diluted$29,973 $(2,832)$29,359 $(16,215)
Diluted earnings (loss) per share:$0.78 $(0.08)$0.81 $(0.46)
Weighted average diluted shares
     outstanding (in thousands)4
38,481 35,255 36,463 35,037 
3 During the first quarter of 2025, the Company changed its financial statement presentation of research and development costs. These costs were previously included within Cost of Products Sold and were a factor in arriving at Gross Profit. The prior period amounts for Cost of Product Sold and Gross Profit have been adjusted from their original presentation for comparability purposes.
4 In addition to incremental shares from stock awards, weighted average diluted shares for the quarter ended December 31, 2025 reflects 1.442 million shares underlying the remaining 5.5% convertible bonds. For the year ended December 31, 2025, the diluted EPS calculation excludes the effect of the 5.5% Notes because the effect is anti-dilutive.
No weighted average diluted shares were associated with the 0% convertible bonds because the average share price for both the quarter and year ended December 31, 2025 was below the $54.87 stated conversion price. Note that because of the capped call, there is no effective dilution to shareholders unless and until the share price exceeds $83.41.
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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
February 24, 2026
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ASTRONICS CORPORATION
CONSOLIDATED BALANCE SHEETS
($ in thousands)
(unaudited)
12/31/202512/31/2024
ASSETS
Current assets:
Cash and cash equivalents$18,180 $9,285 
Restricted cash— 9,143 
Accounts receivable, net of allowance of estimated credit losses204,672 191,446 
Inventories196,860 199,741 
Prepaid and other current assets18,027 16,557 
Total current assets437,739 426,172 
Property, plant and equipment, net of accumulated depreciation107,078 80,687 
Operating right-of-use assets32,269 23,609 
Other assets11,316 7,763 
Intangible assets, net of accumulated amortization55,353 52,477 
Goodwill62,923 58,056 
Total assets$706,678 $648,764 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable$41,080 $42,960 
Current operating lease liabilities5,802 4,697 
Accrued expenses and other current liabilities68,324 81,004 
Customer advances and deferred revenue26,069 27,491 
Total current liabilities141,275 156,152 
Long-term debt334,451 168,669 
Long-term operating lease liabilities38,101 20,508 
Other liabilities52,777 47,338 
Total liabilities566,604 392,667 
Shareholders’ equity:
Common stock385 380 
Accumulated other comprehensive loss(4,410)(3,863)
Other shareholders’ equity144,099 259,580 
Total shareholders’ equity140,074 256,097 
Total liabilities and shareholders’ equity$706,678 $648,764 

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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
February 24, 2026
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ASTRONICS CORPORATION
CONSOLIDATED CASH FLOWS DATA
Year Ended
(Unaudited, $ in thousands)December 31, 2025December 31, 2024
Cash flows from operating activities:
Net income (loss)$29,359 $(16,215)
Adjustments to reconcile net income (loss) to cash from operating activities:
Non-cash items:
Depreciation and amortization21,838 24,466 
Amortization of deferred financing fees3,036 3,194 
Provisions for non-cash losses on inventory and receivables10,011 13,782 
Equity-based compensation expense6,799 8,571 
Deferred tax benefit(1,362)(20)
Loss on settlement of debt32,644 10,148 
Operating lease non-cash expense6,162 5,175 
Simplification initiative-related non-cash charges6,229 — 
Non-cash 401K contribution and quarterly bonus accrual— 3,454 
Non-cash litigation provision adjustment— 4,468 
Other(418)5,807 
Cash flows from changes in operating assets and liabilities:
Accounts receivable(8,102)(21,983)
Inventories(4,435)(21,551)
Accounts payable(3,114)(17,693)
Accrued expenses(15,027)21,987 
Income taxes(7,938)4,498 
Operating lease liabilities(4,573)(5,125)
Tenant improvement allowance refund8,138 — 
Cloud computing implementation costs(1,117)— 
Customer advanced payments and deferred revenue(4,189)5,693 
Supplemental retirement plan liabilities(716)(410)
Other assets and liabilities1,570 2,320 
Net cash provided by operating activities74,795 30,566 
Cash flows from investing activities:
Capital expenditures(31,673)(8,428)
Acquisition of businesses, net of cash acquired(22,075)— 
Net cash used by investing activities(53,748)(8,428)
Cash flows from financing activities:
Proceeds from long-term debt186,143 377,392 
Principal payments on long-term debt(111,143)(374,890)
Proceeds from issuance of convertible debt225,000 — 
Partial repurchase of 2030 notes(285,752)— 
Payments for capped call transactions(26,888)— 
Financing-related costs(10,366)(12,150)
Financing settlement costs— (4,496)
Stock award activity753 (241)
Other(141)(145)
Net cash used by financing activities(22,394)(14,530)
Effect of exchange rates on cash1,099 (493)
(Decrease) increase in cash and cash equivalents and restricted cash(248)7,115 
Cash and cash equivalents and restricted cash at beginning of year18,428 11,313 
Cash and cash equivalents and restricted cash at end of year$18,180 $18,428 
Supplemental disclosure of cash flow information
Interest paid$8,976 $19,238 
Income taxes paid, net of refunds$11,605 $3,537 
Non-cash investing activities:
Capital expenditures in accounts payable$2,025 $— 
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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
February 24, 2026
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ASTRONICS CORPORATION
SEGMENT SALES AND PROFIT
(Unaudited, $ in thousands)
Three Months EndedYear Ended
12/31/202512/31/202412/31/202512/31/2024
Sales
Aerospace$219,593 $188,559 $797,353 $706,746 
Less inter-segment— (10)(34)(62)
Total Aerospace219,593 188,549 797,319 706,684 
Test Systems20,558 20,084 65,243 88,874 
Less inter-segment(84)(93)(434)(132)
Total Test Systems20,474 19,991 64,809 88,742 
Total consolidated sales240,067 208,540 862,128 795,426 
Segment gross profit and margins5
Aerospace74,604 55,909 248,440 204,126 
34.0 %29.7 %31.2 %28.9 %
Test Systems5,367 6,213 9,718 16,302 
26.2 %31.1 %15.0 %18.4 %
Total gross profit79,971 62,122 258,158 220,428 
Segment operating profit and margins
Aerospace41,734 16,778 113,204 62,406 
19.0 %8.9 %14.2 %8.8 %
Test Systems1,102 (49)(7,845)(8,477)
5.4 %(0.2)%(12.1)%(9.6)%
Total segment operating profit42,836 16,729 105,359 53,929 
Loss on settlement of debt— 3,161 32,644 10,148 
Interest expense3,394 4,166 12,561 21,998 
Corporate expenses and other7,198 8,826 28,209 29,650 
Income (loss) before taxes$32,244 $576 $31,945 $(7,867)


5 During the first quarter of 2025, the Company changed its financial statement presentation of research and development costs. These costs were previously included within Cost of Products Sold and were a factor in arriving at Gross Profit. The prior period amounts for Cost of Product Sold and Gross Profit have been adjusted from their original presentation for comparability purposes.
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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
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ASTRONICS CORPORATION
SALES BY MARKET
(Unaudited, $ in thousands)
Three Months EndedYear Ended
2025 YTD
12/31/202512/31/2024% change12/31/202512/31/2024% change% of Sales
Aerospace Segment
Commercial Transport
$166,977 $140,893 18.5  %$599,301 $524,572 14.2  %69.5  %
Military Aircraft28,026 24,474 14.5  %116,276 88,019 32.1  %13.5  %
General Aviation22,302 17,701 26.0  %69,834 74,344 (6.1) %8.1  %
Other
2,288 5,481 (58.3) %11,908 19,749 (39.7) %1.4  %
Aerospace Total219,593 188,549 16.5  %797,319 706,684 12.8  %92.5  %
Test Systems Segment
Government & Defense20,474 19,991 2.4  %64,809 88,742 (27.0) %7.5  %
Total Sales$240,067 $208,540 15.1  %$862,128 $795,426 8.4  %
SALES BY PRODUCT LINE
(Unaudited, $ in thousands)
Three Months EndedYear Ended
2025 YTD
12/31/202512/31/2024% change12/31/202512/31/2024% change% of Sales
Aerospace Segment
Electrical Power & Motion
$113,841 $95,124 19.7  %$410,382 $359,043 14.3  %47.6  %
Lighting & Safety
54,573 44,241 23.4  %208,897 179,403 16.4  %24.2  %
Avionics
31,970 36,467 (12.3) %123,422 120,183 2.7  %14.3  %
Systems Certification
13,227 4,731 179.6  %29,069 17,003 71.0  %3.4  %
Structures
3,694 2,505 47.5  %13,641 11,303 20.7  %1.6  %
Other
2,288 5,481 (58.3) %11,908 19,749 (39.7) %1.4  %
Aerospace Total219,593 188,549 16.5  %797,319 706,684 12.8  %92.5  %
Test Systems Segment20,474 19,991 2.4  %64,809 88,742 (27.0) %7.5  %
Total Sales$240,067 $208,540 15.1  %$862,128 $795,426 8.4  %

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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
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ASTRONICS CORPORATION
ORDER AND BACKLOG TREND
(Unaudited, $ in thousands)
  
Q1
2025
  
Q2
2025
  
Q3
2025
  
Q4
2025
Trailing Twelve
Months
3/29/20256/28/20259/27/202512/31/202512/31/2025
Sales
Aerospace$191,375 $193,626 $192,725 $219,593 $797,319 
Test Systems14,561 11,052 18,722 20,474 64,809 
Total Sales$205,936 $204,678 $211,447 $240,067 $862,128 
Bookings
Aerospace$267,715 $150,636 $191,859 $237,327 $847,537 
Test Systems12,011 26,390 18,532 19,902 76,835 
Total Bookings$279,726 $177,026 $210,391 $257,229 $924,372 
Backlog 6
Aerospace$613,903 $570,913 $572,459 $600,803 
Test Systems59,116 74,454 74,264 73,692 
Total Backlog$673,019 $645,367 $646,723 $674,495 N/A
Book:Bill Ratio
Aerospace1.400.781.001.081.06
Test Systems0.822.390.990.971.19
Total Book:Bill1.360.861.001.071.07

6 Aerospace backlog of approximately $2.4 million and $10.6 million was added in the third and fourth quarters of 2025, respectively, in connection with the acquisitions of Envoy Aerospace and Bühler Motor Aviation.
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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
February 24, 2026
Page 13    

ASTRONICS CORPORATION
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(Unaudited, $ in thousands)
Consolidated
Three Months EndedYear Ended
12/31/202512/31/202412/31/202512/31/2024
Net income (loss)$29,615 $(2,832)$29,359 $(16,215)
Add back:
Interest expense3,394 4,166 12,561 21,998 
Income tax expense2,629 3,408 2,586 8,348 
Depreciation and amortization expense5,709 5,894 21,838 24,466 
Equity-based compensation expense1,458 2,157 6,799 8,571 
Early retirement penalty waiver— 624 — 624 
Non-cash 401K contribution and quarterly bonus accrual— — — 3,454 
Simplification and restructuring initiatives— 1,411 6,867 2,444 
Legal reserve, settlements and recoveries— 4,762 9,732 4,430 
Litigation-related legal expenses1,875 6,066 8,873 19,746 
Acquisition-related expenses586 — 1,833 — 
Loss on settlement of debt— 3,161 32,644 10,148 
Non-cash reserves for customer bankruptcy— 1,032 — 3,235 
Warranty reserve407 1,690 1,446 5,217 
Adjusted EBITDA$45,673 $31,539 $134,538 $96,466 
Sales$240,067 $208,540 $862,128 $795,426 
Adjusted EBITDA margin %19.0 %15.1 %15.6 %12.1 %
Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by sales. Adjusted EBITDA and Adjusted EBITDA Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company’s financial statements.
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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
February 24, 2026
Page 14    

ASTRONICS CORPORATION
RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME
(Unaudited, $ in thousands)
Consolidated
Three Months EndedYear Ended
12/31/202512/31/202412/31/202512/31/2024
Income from operations$35,462 $8,876 $76,412 $26,466 
Add back:
Simplification and restructuring initiatives— 1,411 6,867 2,444 
Legal reserve, settlements and recoveries— 4,762 9,732 4,430 
Litigation-related legal expenses1,875 6,066 8,873 19,746 
Acquisition-related expenses586 — 1,833 — 
Non-cash reserves for customer bankruptcy— 1,032 — 3,235 
Warranty reserve407 1,690 1,446 5,217 
Adjusted operating income$38,330 $23,837 $105,163 $61,538 
Sales$240,067 $208,540 $862,128 $795,426 
Operating margin14.8 %4.3 %8.9 %3.3 %
Adjusted operating margin16.0 %11.4 %12.2 %7.7 %
Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year’s income from operations to the historical periods’ income from operations and operating margin, as well as facilitates a more meaningful comparison of the Company’s income from operations and operating margin to that of other companies.











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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
February 24, 2026
Page 15    
ASTRONICS CORPORATION
RECONCILIATION OF NET INCOME AND DILUTED EARNINGS PER SHARE
TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE
(Unaudited, $ in thousands, except per share amounts)
Consolidated
Three Months EndedYear Ended
12/31/202512/31/202412/31/202512/31/2024
Net income (loss)$29,615 $(2,832)$29,359 $(16,215)
Add back (deduct):
Amortization of intangibles2,909 3,143 11,505 12,871 
Simplification and restructuring initiatives— 1,411 6,867 2,444 
Early retirement penalty waiver— 624 — 624 
Legal reserve, settlements and recoveries— 4,762 9,732 4,430 
Litigation-related legal expenses1,875 6,066 8,873 19,746 
Acquisition-related expenses586 — 1,833 — 
Loss on settlement of debt— 3,161 32,644 10,148 
Non-cash reserves for customer bankruptcy— 1,032 — 3,235 
Warranty reserve407 1,690 1,446 5,217 
Normalize tax rate7(6,876)(2,208)(23,625)(4,364)
Adjusted net income$28,516 $16,849 $78,634 $38,136 
Convertible notes interest, net358 590 5,409 590 
Adjusted net income - diluted$28,874 $17,439 $84,043 $38,726 
Weighted average diluted shares outstanding (in thousands)8
38,481 35,255 36,463 35,037 
Adjusted weighted average diluted shares outstanding (in thousands)838,481 37,779 41,903 36,022 
Diluted earnings (loss) per share$0.78 $(0.08)$0.81 $(0.46)
Adjusted diluted earnings per share9$0.75 $0.46 $2.01 $1.08 
Adjusted Net Income and Adjusted Diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Net Income and Adjusted Diluted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Net Income and Adjusted Diluted EPS, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year’s net income and diluted EPS to the historical periods’ net income and diluted EPS, as well as facilitates a more meaningful comparison of the Company’s net income and diluted EPS to that of other companies. The Company believes that presenting Adjusted Diluted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company’s strategy to grow through acquisitions as well as organically.
7 Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.
8 In addition to incremental shares from stock awards, weighted average diluted shares for the quarter ended December 31, 2025 reflects 1.442 million shares underlying the remaining 5.5% convertible bonds. For the year ended December 31, 2025, the diluted EPS calculation excludes the effect of the 5.5% Notes because the effect is anti-dilutive.
No weighted average diluted shares were associated with the 0% convertible bonds because the average share price for both the quarter and year ended December 31, 2025 was below the $54.87 stated conversion price. Note that because of the capped call, there is no effective dilution to shareholders unless and until the share price exceeds $83.41.
9 Net income for purposes of calculating adjusted diluted earnings per share includes addback of interest expense on the 5.5% convertible notes, net of income taxes, as required under the if-converted method.
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Astronics Corporation Reports Strong Fourth Quarter Finish to 2025
February 24, 2026
Page 16    
ASTRONICS CORPORATION
RECONCILIATION OF SEGMENT OPERATING PROFIT TO ADJUSTED SEGMENT OPERATING PROFIT
(Unaudited, $ in thousands)
Three Months EndedYear Ended
12/31/202512/31/202412/31/202512/31/2024
Aerospace operating profit$41,734 $16,778 $113,204 $62,406 
Simplification and restructuring initiatives— — 6,508 237 
Legal reserve, settlements and recoveries— 4,762 9,732 4,430 
Litigation-related legal expenses1,409 5,966 7,311 19,127 
Non-cash reserves for customer bankruptcy— 1,032 — 3,235 
Warranty reserve407 1,690 1,446 5,217 
Adjusted Aerospace operating profit$43,550 $30,228 $138,201 $94,652 
Aerospace sales$219,593 $188,549 $797,319 $706,684 
Aerospace margin19.0 %8.9 %14.2 %8.8 %
Adjusted Aerospace margin19.8 %16.0 %17.3 %13.4 %
Test Systems operating profit (loss)$1,102 $(49)$(7,845)$(8,477)
Simplification and restructuring initiatives— 1,411 359 2,207 
Litigation-related legal expenses186 100 994 619 
Adjusted Test Systems operating profit (loss)$1,288 $1,462 $(6,492)$(5,651)
Test Systems sales$20,474 $19,991 $64,809 $88,742 
Test Systems margin5.4 %(0.2)%(12.1)%(9.6)%
Adjusted Test Systems margin6.3 %7.3 %(10.0)%(6.4)%
Adjusted Segment Operating Profit is defined as segment operating profit as reported, adjusted for certain items. Adjusted Segment Margin is defined as Adjusted Segment Operating Profit divided by segment sales. Adjusted Segment Operating Profit and Adjusted Segment Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Segment Operating Profit and Adjusted Segment Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Segment Operating Profit and Adjusted Segment Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year’s segment operating profit to the historical periods’ segment operating profit and segment margin, as well as facilitates a more meaningful comparison of the Company’s segment operating profit and segment margin to that of other companies.




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