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Astronics Corp. (ATRO)
NASDAQ:ATRO
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Astronics
(NASDAQ:ATRO)
Rating:62Neutral
Price Target:
$37.00
▲(0.54% Upside)
Astronics (ATRO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.29B
Dividend YieldN/A
Average Volume (3M)636.01K
Price to Earnings (P/E)―
Beta (1Y)0.84
Revenue Growth10.99%
EPS Growth69.85%
CountryUS
Employees2,500
SectorIndustrials
Sector Strength75
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.04
Shares Outstanding31,073,830
10 Day Avg. Volume706,688
30 Day Avg. Volume636,011
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue1.70
Enterprise Value/Gross Profit6.77
Enterprise Value/Ebitda21.48
Forecast
1Y Price Target
$49.00Price Target Upside33.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Astronics Business Overview & Revenue Model
Company DescriptionAstronics 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 MoneyAstronics 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 Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The call highlighted strong performance in the Aerospace segment with record sales and improved adjusted EBITDA, alongside successful pricing strategies and increased revenue guidance. However, challenges in the Test segment, tariff impacts, restructuring costs, and legal expenses present notable setbacks.Q2-2025 Updates
Positive Updates
Aerospace Segment Record Sales
The Aerospace segment achieved record quarterly sales of $193.6 million, a 9.4% increase year-over-year, driven by strong commercial transport and military sales.
Improved Adjusted EBITDA
Adjusted EBITDA for the quarter was $25.4 million or 12.4% of sales, up from 10.2% in the previous year, reflecting improved profitability from higher volume and productivity in the Aerospace segment.
Positive Book-to-Bill Ratio
The company maintained a positive book-to-bill ratio of 1.11 for the first half of 2025, indicating strong market demand and potential for future growth.
Increased Revenue Guidance
Revenue guidance for 2025 was increased to $840 million to $860 million, up from $820 million to $860 million, reflecting confidence in continued strong performance.
Successful Pricing Increases
The company successfully implemented price increases across various contracts, contributing to improved margin performance.
Negative Updates
Test Segment Challenges
The Test segment experienced a $6.4 million revenue reduction due to an EAC-related adjustment and reported an adjusted operating loss of $6.7 million.
Tariff Impact
The company faces an annualized additional cost impact of $15 million to $20 million due to tariff changes, with mitigation efforts aimed at reducing these costs.
Restructuring Charges
Restructuring charges of $6.2 million were incurred in the Aerospace segment to simplify operations by exiting non-core product lines, leading to inventory write-downs.
UK Patent Dispute Costs
The company incurred $3.5 million in costs related to a partial reimbursement of the plaintiff's legal fees in a UK patent dispute.
Company Guidance
In the second quarter of fiscal year 2025, Astronics Corporation reported sales just under $205 million, marking a 3.3% increase from the same period in 2024, driven by record Aerospace segment sales. Year-to-date sales reached $411 million, up 7.2% from the previous year. Adjusted EBITDA for the quarter was $25.4 million, representing 12.4% of sales, an improvement from the previous year's 10.2%. Despite an EAC-related adjustment of $6.8 million in the Test segment and $6.2 million in restructuring charges in the Aerospace segment, the company maintained a positive outlook. The book-to-bill ratio for the first half of 2025 stood at 1.11, indicating strong market demand. Astronics increased its 2025 revenue guidance to between $840 million and $860 million, with expectations for a stronger second half driven by rising aerospace production rates and Test segment improvements.Astronics Financial Statement Overview
Summary
Astronics is on a recovery path with revenue and cash flow showing positive growth trends. While profitability remains a challenge, the company has demonstrated better cost management and financial stability. Continued focus on improving net income and maintaining cash flow growth will be crucial for long-term success.Income Statement
Astronics has shown a consistent revenue growth, with a TTM (Trailing-Twelve-Months) revenue of $816.3 million, up from $795.4 million in the previous year. Gross profit margin improved to 25.6% in TTM, reflecting better cost management. However, despite these improvements, the company is still struggling with profitability, posting a negative net income of $3.5 million in TTM, although this is a significant improvement from previous losses.65
Positive
Balance Sheet
The debt-to-equity ratio stands at 0.73, indicating moderate leverage. Stockholders' equity increased to $266.8 million, representing 40.3% of total assets, which is a positive sign of financial stability. However, consistent losses in previous years have eroded equity growth, and the company must continue improving its profitability to enhance its financial position.60
Neutral
Cash Flow
Free cash flow has shown significant improvement, growing from $22.1 million to $40.2 million in TTM. The operating cash flow to net income ratio is strong, highlighting efficient cash generation relative to net income. The company has managed to increase its cash reserves, which can support ongoing operations and reduce financial risk.70
Positive
| 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
Positive
36.80
Price Trends
34.29
Positive
31.25
Positive
25.18
Positive
Market Momentum
0.83
Negative
57.78
Neutral
61.37
Neutral
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 36.8 is above the 20-day moving average (MA) of 34.67, above the 50-day MA of 34.29, and above the 200-day MA of 25.18, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 57.78 is Neutral, neither overbought nor oversold. The STOCH value of 61.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATRO.
Astronics Risk Analysis
Astronics disclosed 42 risk factors in its most recent earnings report. Astronics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Astronics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.36B | 34.44 | 5.86% | ― | 2.42% | 72.72% | |
64 Neutral | $10.66B | 15.60 | 8.14% | 2.00% | 2.79% | -14.82% | |
63 Neutral | $4.05B | ― | -2.57% | ― | 9.19% | 72.88% | |
62 Neutral | $1.29B | ― | -1.41% | ― | 10.99% | 69.85% | |
62 Neutral | $12.05B | 155.51 | 5.10% | ― | 14.50% | -29.76% | |
43 Neutral | $1.20B | ― | -320.52% | ― | ― | -30.78% | |
40 Underperform | $1.28B | ― | -45.35% | ― | -10.50% | -230.68% |
* Industrials Sector Average
Performance Comparison
ATRO
Astronics
36.80
16.19
78.55%
AVAV
AeroVironment
238.23
54.50
29.66%
DCO
Ducommun
89.74
27.45
44.07%
MRCY
Mercury Systems
67.47
29.89
79.54%
EVEX
Eve Holding
3.97
1.19
42.81%
RDW
Redwire
8.32
2.25
37.07%
Astronics Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Astronics Holds Annual Shareholders Meeting, Key Decisions Made
Neutral
May 27, 2025
On May 22, 2025, Astronics Corporation held its Annual Meeting of Shareholders, where key decisions were made. Shareholders elected the Board of Directors, ratified Ernst & Young LLP as the independent accounting firm for 2025, and approved an amendment to the 2017 Long Term Incentive Plan to increase available shares. These decisions reflect the company’s strategic direction and governance priorities, potentially impacting its operational focus and stakeholder confidence.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.