Astronics (ATRO) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: N/A
• Average Volume (3M): 912.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 10.99%
• EPS Growth: 69.85%
• Country: US
• Employees: 2,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.04
• Shares Outstanding: 31,073,830
• 10 Day Avg. Volume: 606,085
• 30 Day Avg. Volume: 912,363
• PEG Ratio: 0.81
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 25.26
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.70
• Enterprise Value/Gross Profit: 6.77
• Enterprise Value/Ebitda: 21.48
• 1Y Price Target: $37.00
• Price Target Upside: -15.99% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: $37.00 ▼(-15.99% Downside)

Astronics' overall score is driven by strong revenue growth and operational improvements, as well as positive technical indicators. However, profitability challenges and valuation concerns weigh on the score. The earnings call provided a positive outlook, but ongoing challenges in certain segments and external cost impacts remain.

Astronics Business Overview & Revenue Model

Company Description

Astronics Corporation (ATRO) is a leading provider of advanced technologies for the aerospace and defense industries. The company operates in two primary segments: Aerospace and Test Systems. Astronics designs and manufactures a wide range of products including lighting systems, electrical power generation and distribution systems, and test solutions for both commercial and military aircraft, as well as ground and airborne test equipment.

How the Company Makes Money

Astronics generates revenue through multiple streams, primarily from the sale of its aerospace products and test systems. The Aerospace segment contributes the bulk of the company's revenue, where it sells systems and components to aircraft manufacturers and operators. This includes both original equipment manufacturer (OEM) sales and aftermarket services, where the company provides maintenance, repair, and overhaul services. The Test Systems segment generates revenue from selling test equipment and solutions, primarily to the defense and aerospace sectors. Additionally, strategic partnerships with major aircraft manufacturers and defense contractors enhance Astronics' revenue potential, as they often lead to long-term contracts and continuous demand for their products.

Astronics Financial Statement Overview

Summary

Astronics shows strong revenue growth and operational improvements with better margins and reduced leverage. However, challenges remain in achieving net profitability and generating positive returns on equity. Cash flow generation is a strength, but growth is a concern.

Income Statement

Astronics has shown a significant improvement in its gross profit margin, increasing from 13.37% in 2022 to 25.09% in TTM 2025, indicating better cost management and pricing strategies. The revenue growth rate is impressive at 80.4% TTM, showcasing strong top-line growth. However, the company is still struggling with profitability, as evidenced by a negative net profit margin of -0.45% TTM, although this is an improvement from previous years. The EBIT and EBITDA margins have improved to 5.13% and 7.91% respectively, suggesting operational improvements. Overall, the income statement reflects positive growth trends but ongoing challenges in achieving net profitability.

Balance Sheet

The debt-to-equity ratio has slightly improved to 0.72 TTM from 0.76 in 2024, indicating a marginal reduction in leverage. However, the return on equity remains negative at -1.43% TTM, reflecting ongoing challenges in generating returns for shareholders. The equity ratio stands at 41.99% TTM, suggesting a moderate level of financial stability. While there are signs of improvement, the balance sheet still reflects potential risks due to high leverage and negative returns.

Cash Flow

Astronics has demonstrated a decline in free cash flow growth at -10.40% TTM, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is 0.35 TTM, showing some ability to convert income into cash. The free cash flow to net income ratio is relatively strong at 0.75 TTM, suggesting that despite net losses, the company is managing to generate free cash flow. Overall, the cash flow statement indicates some strengths in cash generation but highlights the need for improvement in growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	822.85M	795.43M	689.21M	534.89M	444.91M	502.59M
Gross Profit	206.47M	168.34M	120.80M	71.54M	65.36M	96.84M
EBITDA	65.11M	50.93M	19.43M	-2.27M	-4.68M	18.96M
Net Income	-3.73M	-16.21M	-26.42M	-35.75M	-25.58M	-115.78M
Balance Sheet
Total Assets	646.69M	648.76M	633.79M	615.03M	609.14M	619.75M
Cash, Cash Equivalents and Short-Term Investments	13.46M	9.29M	4.76M	13.78M	29.76M	40.41M
Total Debt	195.81M	193.87M	197.88M	164.00M	163.00M	173.00M
Total Liabilities	375.12M	392.67M	384.27M	375.11M	352.53M	349.37M
Stockholders Equity	271.57M	256.10M	249.52M	239.92M	256.60M	270.37M
Cash Flow
Free Cash Flow	36.05M	22.14M	-31.59M	-35.99M	-11.56M	29.88M
Operating Cash Flow	47.80M	30.57M	-23.95M	-28.31M	-5.53M	37.34M
Investing Cash Flow	-11.74M	-8.43M	-4.11M	14.39M	3.18M	-5.80M
Financing Cash Flow	-27.88M	-14.53M	25.43M	-1.41M	-7.50M	-24.58M

Astronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATRO, the sentiment is Positive. The current price of 44.04 is above the 20-day moving average (MA) of 40.80, above the 50-day MA of 37.11, and above the 200-day MA of 27.41, indicating a bullish trend. The MACD of 2.03 indicates Negative momentum. The RSI at 66.71 is Neutral, neither overbought nor oversold. The STOCH value of 90.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATRO.

Astronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HXL	74 Outperform	$5.04B	58.85	5.66%	1.04%	1.92%	-15.47%
DCO	73 Outperform	$1.39B	35.37	5.65%	―	2.42%	72.72%
AIR	68 Neutral	$3.12B	108.93	2.31%	―	17.59%	-56.15%
MRCY	63 Neutral	$4.60B	-117.75	-2.57%	―	9.19%	72.88%
ATRO	62 Neutral	$1.58B	―	-1.41%	―	10.99%	69.85%
SPR	43 Neutral	$4.66B	-1.98	81.63%	―	-2.60%	-94.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Astronics Corporate Events

Astronics Announces $210 Million Convertible Notes Offering

On September 9, 2025, Astronics Corporation announced its intention to offer $210 million in convertible senior notes due 2031 in a private offering to institutional buyers, with an option for an additional $15 million. The proceeds will be used for capped call transactions to mitigate share dilution and to repurchase a portion of its 5.500% convertible senior notes due 2030. The company also plans to replace its existing credit agreement with a new cash flow-based revolving credit facility to provide more operational flexibility. These financial maneuvers are expected to impact the market price of Astronics’ common stock and notes, potentially affecting noteholders’ conversion abilities and the trading price of the stock.