Astronics Corporation Awarded $40 million IDIQ Contract to Support U.S. Marine Corps Handheld Radio Test Sets Program

Rhea-AI Summary

Astronics Corporation (Nasdaq: ATRO) has announced a significant contract win through its subsidiary, Astronics Test Systems. The company secured an indefinite delivery/indefinite quantity (IDIQ) award to supply portable radio test equipment for the U.S. Marine Corps' Handheld Radio Test Sets program, valued at approximately $40 million over five years. An initial task order is expected to follow soon. This award highlights Astronics' technological expertise and is expected to drive growth in 2023 and 2024, alongside another anticipated program with the U.S. Army. The portable radio test capability will ensure effective communication systems for military operations.

Positive

• Awarded a $40 million IDIQ contract for portable radio test equipment over five years.
• Expected initial task order to be executed in 2023 and 2024, indicating strong future revenue.
• Validation of innovation and technological expertise in test solutions for military applications.

Negative

• None.

EAST AURORA, N.Y.--(BUSINESS WIRE)-- Astronics Corporation (Nasdaq: ATRO), a leading provider of advanced technologies for global aerospace, defense, and other mission critical industries, announced today that the its wholly owned subsidiary, Astronics Test Systems, has been awarded a firm fixed price, indefinite delivery/indefinite quantity (IDIQ) award to produce portable radio test equipment for the U.S. Marine Corps’ Handheld Radio Test Sets program (“HHRTS”).

The contract is for a five-year term and is valued at approximately $40 million. An initial task order is expected to be issued to Astronics in the coming months to be executed over the remainder of 2023 and 2024.

“We believe this award is validation of our innovation and technological expertise in test solutions and are pleased to have been selected for this critical test platform that will likely be in use for many years,” noted Brian Price, Executive Vice President of Astronics Test Systems. “We are also excited about the TS-4549/T radio test program with the U.S. Army, which we believe will be formalized in the coming months. These two programs together are significant wins for Astronics Test Systems, and we expect will be strong contributors to growth in the latter half of 2023 and even more meaningfully in 2024.”

Under the agreement, Astronics will provide portable radio test capability to the Marines, ensuring communication systems operate as designed in remote and forward deployed positions. To win the program, Astronics leveraged technology developed in recent years and built on its recent down select win with the U.S. Army for the TS-4549/T.

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, 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, militaries, 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.

For more information on Astronics and its solutions, visit Astronics.com.

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” or other similar expressions and include all statements with regard to reaching any revenue expectations, contract award timing or receipt of task orders, rates of growth and the expectations of demand by customers and markets. 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 continued global impact of COVID-19 and related governmental and other actions taken in response, 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 need for new and advanced test and simulation equipment, customer preferences and relationships, and other factors which are described in filings by Astronics with the Securities and Exchange Commission. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230406005205/en/

Company:

David C. Burney

Executive Vice President and CFO

invest@astronics.com

+1.716.805.1599

Investor:

Kei Advisors LLC

Deborah K. Pawlowski

Investor Relations

dpawlowski@keiadvisors.com

+1.716.843.3908

Astronics Tests Systems:

Elizabeth Cortes

Marketing Communications Manager

elizabeth.cortes@astonics.com

+1.407.381.6062

Source: Astronics Corporation

FAQ

What contract did Astronics Corporation receive from the U.S. Marine Corps?

Astronics Corporation secured a $40 million IDIQ contract to provide portable radio test equipment for the Marine Corps' Handheld Radio Test Sets program.

How long is the contract awarded to Astronics Corporation?

The contract is for a five-year term.

What is the expected impact of the contract on Astronics Corporation's growth?

The contract is expected to significantly contribute to growth in the latter half of 2023 and into 2024.

What is the stock symbol for Astronics Corporation?

The stock symbol for Astronics Corporation is ATRO.

When is the initial task order expected to be issued to Astronics?

The initial task order is expected to be issued in the coming months.