Astronics (ATRO) AI Stock Analysis

• Market Cap: $2.35B
• Dividend Yield: N/A
• Average Volume (3M): 604.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: 6.19%
• EPS Growth: 52.10%
• Country: US
• Employees: 2,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.49
• Shares Outstanding: 31,619,410
• 10 Day Avg. Volume: 656,194
• 30 Day Avg. Volume: 604,899
• 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: 0.83
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 8.52
• Enterprise Value/Ebitda: 49.11
• 1Y Price Target: $73.33
• Price Target Upside: 13.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $70.00 ▲(8.01% Upside)

The score is primarily supported by improving operating performance and strong cash generation, reinforced by a positive earnings outlook (better margins, strong backlog, and growth guidance). These strengths are moderated by balance-sheet leverage and ongoing profitability concerns, while technicals are bullish but appear stretched. Valuation remains a clear weak point due to negative earnings and no dividend support.

Positive Factors

Strong backlog and bookings

A $647M backlog with book-to-bill at 1.0 provides multi-quarter revenue visibility and production planning certainty. This durable ordership base supports steady top-line delivery, helping stabilize manufacturing cadence, supplier contracts, and near-term margin expansion.

Material improvement in operating margins

Operating margin and adjusted EBITDA gains reflect structural cost management and operating leverage, not just one-off items. Sustained higher margins improve cash generation capacity, fund reinvestment, and provide a path to consistent profitability if volume trends continue.

Stronger cash generation and refinancing actions

Refinancing actions plus improving free cash flow materially strengthen liquidity and lower near-term interest exposure. This durable improvement in funding flexibility supports organic growth, targeted M&A, and reduces rollover risk across economic cycles.

Negative Factors

High financial leverage

A debt-to-equity ratio near 3.5 denotes elevated leverage that constrains financial flexibility. High indebtedness raises refinancing and covenant risk during downturns, limits capital allocation choices, and increases sensitivity of results to interest costs and operational hiccups over the coming quarters.

Negative net profitability

Despite revenue recovery, a negative net margin indicates the company still isn't delivering bottom-line profits. Persistent net losses erode equity, hamper return metrics, and make sustained reinvestment, debt paydown, or shareholder distributions contingent on continued margin improvement.

Test Systems weakness and revenue concentration

A declining Test Systems business increases earnings volatility and highlights reliance on the Aerospace segment for revenue. Heavy concentration in aerospace exposures makes results sensitive to OEM cycles and aftermarket trends, reducing diversification benefits until Test recovers.

Astronics Business Overview & Revenue Model

Company Description

Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. It operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems, electrical power generation systems, distribution and seat motions systems, aircraft structures, avionics products, system certification, and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers to OEMs; and aircraft operators, such as airlines; suppliers to the aircraft operators; and branches of the U.S. Department of Defense. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the aerospace and defense, and communications and mass transit industries; and provides wireless communication testing for the civil land mobile radio market, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. The company was incorporated in 1968 and is headquartered in East Aurora, New York.

How the Company Makes Money

Astronics generates revenue through the sale of its aerospace and defense products and services. The Aerospace segment contributes the majority of the company’s revenue, driven by contracts with commercial and military aircraft manufacturers, as well as aftermarket services and retrofitting of existing aircraft. The Test Systems segment earns revenue through the sale of testing equipment and solutions to semiconductor manufacturers and aerospace clients. Key revenue streams include product sales, service contracts, and long-term agreements with major aerospace companies. Additionally, partnerships with leading aircraft manufacturers and defense contractors enhance the company’s market reach and stability, contributing significantly to its earnings.

Astronics Financial Statement Overview

Summary

Astronics shows strong revenue growth and improved gross margins, but profitability remains a challenge with negative net margins. The balance sheet indicates increased leverage, raising financial risk concerns. However, strong cash flow generation provides some financial stability.

Income Statement

Astronics has shown a strong revenue growth rate of 94.2% TTM, indicating a significant recovery and expansion. The gross profit margin improved to 27.5% TTM, reflecting better cost management. However, the net profit margin remains negative at -0.37% TTM, highlighting ongoing profitability challenges. The EBIT margin is positive at 2.96% TTM, but the EBITDA margin has decreased to 2.54% TTM, suggesting some operational inefficiencies.

Balance Sheet

The debt-to-equity ratio has increased significantly to 3.48 TTM, indicating high leverage and potential financial risk. Return on equity is negative at -1.43% TTM, reflecting challenges in generating returns for shareholders. The equity ratio stands at 15.96% TTM, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

Free cash flow has grown by 40.2% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.49 TTM, showing a reasonable conversion of earnings into cash. The free cash flow to net income ratio is 0.69 TTM, suggesting that the company is generating cash flow despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	830.60M	795.43M	689.21M	534.89M	444.91M	502.59M
Gross Profit	228.24M	168.34M	120.80M	71.54M	65.36M	96.84M
EBITDA	39.58M	50.93M	19.43M	-2.27M	-4.68M	18.17M
Net Income	-3.09M	-16.21M	-26.42M	-35.75M	-25.58M	-115.78M
Balance Sheet
Total Assets	682.19M	648.76M	649.00M	615.03M	609.14M	619.75M
Cash, Cash Equivalents and Short-Term Investments	13.48M	9.29M	11.31M	13.78M	29.76M	40.41M
Total Debt	379.39M	193.87M	197.88M	178.41M	181.80M	197.45M
Total Liabilities	573.28M	392.67M	399.48M	375.11M	352.53M	349.37M
Stockholders Equity	108.91M	256.10M	249.52M	239.92M	256.60M	270.37M
Cash Flow
Free Cash Flow	51.28M	22.14M	-31.59M	-35.99M	-11.56M	29.88M
Operating Cash Flow	74.33M	30.57M	-23.95M	-28.31M	-5.53M	37.34M
Investing Cash Flow	-27.66M	-8.43M	-4.11M	14.39M	3.18M	-5.80M
Financing Cash Flow	-33.97M	-14.53M	25.43M	-1.41M	-7.50M	-24.58M

Astronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 64.81 is above the 20-day moving average (MA) of 56.75, above the 50-day MA of 52.88, and above the 200-day MA of 39.01, indicating a bullish trend. The MACD of 3.52 indicates Negative momentum. The RSI at 80.75 is Negative, neither overbought nor oversold. The STOCH value of 94.35 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	73 Outperform	$6.43B	95.16	4.36%	0.89%	-0.37%	-34.97%
ATRO	65 Neutral	$2.35B	-515.62	-1.72%	―	6.19%	52.10%
DCO	65 Neutral	$1.61B	-46.76	-5.27%	―	3.16%	-213.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRCY	62 Neutral	$5.62B	-172.33	-2.24%	―	8.63%	72.72%
AIR	60 Neutral	$3.84B	38.22	6.86%	―	17.59%	-56.15%

Astronics Corporate Events

Astronics Announces New $300 Million Credit Facility

On October 22, 2025, Astronics Corporation announced the establishment of a new $300 million senior secured, cash flow-based revolving credit facility, replacing its previous asset-based facility. This new facility, maturing in October 2030, enhances Astronics’ financial flexibility and borrowing capacity to support growth initiatives in the commercial aerospace and defense markets, reflecting the company’s strong financial performance and improved capital structure.

The most recent analyst rating on (ATRO) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Astronics stock, see the ATRO Stock Forecast page.