Astronics Corporation Reports 2024 Fourth Quarter and Full Year Financial Results

Rhea-AI Summary

Astronics (ATRO) reported its Q4 and full-year 2024 financial results, with Q4 sales increasing 6.8% to $208.5 million and full-year sales up 15.4% to $795.4 million. The company posted a Q4 net loss of $2.8 million, though adjusted EBITDA was $31.5 million (15.1% of sales).

The Aerospace segment achieved record Q4 sales of $188.5 million, up 12%, driven by increased airline demand for cabin power and inflight entertainment products. Q4 bookings were $195.9 million, with 2024 total bookings of $808.1 million and a record year-end backlog of $599.2 million.

Notable challenges included a $4.8 million reserve for a UK patent infringement dispute ruling, requiring approximately $11.9 million in payments, and a $3.2 million loss on debt extinguishment. The company maintains its 2025 revenue guidance at $820-860 million, with Q1 2025 projected sales of $190-205 million.

Positive

• Record Aerospace segment Q4 sales of $188.5M, up 12%
• Strong 2024 bookings of $808.1M with 1.02:1 book-to-bill ratio
• Record year-end backlog of $599.2M
• Q4 adjusted EBITDA margin improved to 15.1%
• Full year 2024 sales grew 15.4% to $795.4M

Negative

• Q4 net loss of $2.8M
• $11.9M patent infringement payment required
• $3.2M loss on debt extinguishment
• Test Systems segment sales declined $6.6M
• Net debt of $156.6M as of Q4 2024

Insights

Financial Analyst

Astronics reported mixed Q4 2024 results with notable revenue growth but bottom-line challenges. Q4 sales increased 6.8% to $208.5 million, with full-year sales up 15.4% to $795.4 million, marking their third consecutive year of double-digit growth.

Despite this growth, the company posted a Q4 net loss of $2.8 million due to several unusual expenses: a $4.8 million reserve for a UK patent infringement judgment, $1.7 million in warranty charges, and a $3.2 million loss on debt extinguishment. Adjusted EBITDA was strong at $31.5 million (15.1% of sales).

The Aerospace segment continues to drive performance with record sales of $188.5 million (up 11.7%), primarily from increased airline demand for cabin power and IFEC products. Adjusted Aerospace operating margin improved to 16.0%, showing operational leverage despite headwinds.

Test Systems segment struggled with sales down $6.6 million, though restructuring initiatives should deliver $4-5 million in annual savings beginning Q1 2025.

Financially, Astronics strengthened its balance sheet by issuing $165 million in Convertible Senior Notes and repaying its $54.9 million Term Loan. The company maintained 2025 revenue guidance of $820-860 million, projecting continued but more moderate growth of approximately 6%.

With a record year-end backlog of $599.2 million, improved liquidity, and ongoing margin expansion, Astronics appears positioned for sustainable growth despite near-term headwinds including the Boeing production pause and legal challenges.

Manufacturing Operations Expert

Astronics' operational performance shows important efficiency improvements despite complex headwinds. The company achieved a 25.2% adjusted gross margin in Q4, representing a substantial 31.4% year-over-year improvement, demonstrating meaningful production optimization.

The company's ability to generate $26.4 million in Q4 operating cash flow signals improving working capital management and operational discipline. This cash generation strength is particularly notable given the company's need to navigate Boeing's 737 production pause, which directly impacted commercial lighting and safety product sales.

Productivity enhancements are driving margin expansion across the business, with adjusted Aerospace operating margins reaching 16.0% - approaching management's stated mid-teens target. The systematic facility consolidation strategy continues with the closure of a third Test facility in two years, optimizing the footprint while reducing fixed costs.

The planned $35-40 million capital expenditure for 2025 represents a strategic investment in capacity expansion and long-overdue modernization after years of constrained spending. This indicates management's confidence in future demand and recognizes the need for infrastructure investment to support the $599.2 million backlog.

Supply chain conditions appear to be stabilizing after years of disruption, which should further enhance production consistency. The warranty reserve increase related to a field modification requirement suggests potential quality control challenges with a new product launch that bears monitoring, though the company appears to be addressing this proactively.

These operational improvements provide a solid foundation for Astronics to leverage its 1.02:1 book-to-bill ratio into sustainable profitable growth, particularly as production volumes increase across their commercial aviation programs.

• Fourth quarter sales increased 6.8% to $208.5 million; sales for 2024 were up 15.4% to $795.4 million
• Fourth quarter net loss was $2.8 million; adjusted EBITDA¹ was $31.5 million, or 15.1% of sales
• Aerospace segment fourth quarter sales increased 12% to a record $188.5 million
• Cash flow from operations was $26.4 million in the quarter and $30.6 million for the year
• Bookings in the quarter were $195.9 million; 2024 bookings totaled $808.1 million
• 2025 revenue guidance maintained at $820 million to $860 million

EAST AURORA, N.Y.--(BUSINESS WIRE)-- 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, 2024.

Astronics Segment Sales and Bookings (Graphic: Business Wire)

Peter J. Gundermann, Chairman, President and Chief Executive Officer, commented, “2024 was another year of solid progress ending with a strong fourth quarter. For the quarter, we achieved near record sales despite Boeing’s 737 production pause. The higher volume and improved operating efficiencies resulted in higher margins, with an adjusted EBITDA margin¹ of 15.1%. We generated strong cash flow from operations of $26.4 million in the quarter. The quarter closed a year of 15% sales growth, our third year in a row of substantial double-digit growth. Our margins improved steadily through the year and demand remained robust, resulting in an ending backlog of $599 million. Our strong backlog, improving operating efficiencies, stabilizing supply chain, and our improved liquidity position from our recent financing activities position us well for the opportunities we see in 2025.”

Fourth Quarter Results

	Three Months Ended									Year Ended
($ in thousands)	December 31, 2024			December 31, 2023			% Change			December 31, 2024			December 31, 2023			% Change
Sales	$	208,540		$	195,292		6.8	%		$	795,426		$	689,206		15.4	%
Gross profit	$	50,054		$	39,973		25.2	%		$	168,342		$	120,796		39.4	%
Gross margin		24.0	%		20.5	%					21.2	%		17.5	%
Income (loss) from operations	$	8,876		$	7,782		14.1	%		$	26,466		$	(6,671	)	496.7	%
Operating margin %		4.3	%		4.0	%					3.3	%		(1.0	)%
Net gain on sale of businesses	$	—		$	—					$	—		$	3,427
Loss on extinguishment of debt	$	3,161		$	—					$	10,148		$	—
Net (loss) income	$	(2,832	)	$	6,976		(140.6	)%		$	(16,215	)	$	(26,421	)	38.6	%
Net (loss) income %		(1.4	)%		3.6	%					(2.0	)%		(3.8	)%
Adjusted net income2	$	16,849		$	6,511		158.8	%		$	38,136		$	2,619		1,356.1	%
Adjusted EBITDA2	$	31,539		$	24,830		27.0	%		$	96,466		$	55,579		73.6	%
Adjusted EBITDA margin %2		15.1	%		12.7	%					12.1	%		8.1	%

Fourth Quarter 2024 Results (compared with the prior-year period, unless noted otherwise)

Growth in sales were driven by the Aerospace segment due to continued strength in demand primarily from the Commercial Transport market. Aerospace sales were up $19.8 million, or 11.7%, which more than offset the $6.6 million decline in Test Systems sales on lower defense revenue.

Higher volume and improving productivity drove gross profit up $10.1 million to $50.1 million, or 24.0% of sales. Adjusted gross profit² of $52.5 million, or 25.2% of sales, increased $12.6 million, or 31.4%. Somewhat offsetting the improvements in volume, mix and productivity, were a $1.7 million true-up to the warranty reserve related to a new product launch that requires a field modification and an additional $0.8 million charge related to the Aerospace customer bankruptcy, both of which were initially reported in the third quarter.

In the fourth quarter of 2024, the $9.0 million increase in selling, general and administrative expenses (“SG&A”) included a $4.8 million reserve for the previously announced damage award that was related to a patent infringement dispute in the UK. Also accounting for the increase was a $2.2 million increase in litigation-related legal expenses and $1.4 million in restructuring-related severance charges incurred in our Test Systems segment.

On February 21, 2025, the UK High Court of Justice rendered a decision in the Company’s long-running patent infringement dispute in that jurisdiction. The ruling requires payment of approximately $11.9 million and, as a result, SG&A expense in the quarter reflects the true-up of the legal reserves for that matter. Any additional amounts required to be paid by the Company related to certain other factors peripheral to the damages award will be determined at follow-up hearings expected to occur in the first half of 2025. The Company expects that payment of the final liability will be required in the second quarter of 2025, and that an appeal, if any, would likely be heard in early 2026.

Despite the reserve increase resulting from the infringement ruling, consolidated operating income increased $1.1 million as leverage from higher volume helped to offset the unusual expenses. On an adjusted basis, operating income² for the 2024 fourth quarter doubled to $23.8 million, and adjusted operating margin² expanded 550 basis points to 11.4%.

Impacting net income was $3.2 million for the loss on extinguishment of debt which included the call premium of $1.3 million on our previous term loan and the write-off of $1.9 million of associated deferred financing costs.

Tax expense of $3.4 million was primarily due to a valuation allowance applied against the deferred tax asset associated with research and development costs that are required to be capitalized for tax purposes, compared with a tax benefit of $5.4 million in the prior year period.

As a result, consolidated net loss was $2.8 million, or $(0.08) per diluted share, compared with net income of $7.0 million, or $0.20 per diluted share, in the prior-year period. Adjusted net income² increased $10.3 million to $16.8 million. Per diluted share, adjusted net income² more than doubled to $0.48.

Adjusted EBITDA² increased 27% to $31.5 million, and was 15.1% of consolidated sales, primarily as a result of increased profitability from higher sales.

Bookings were $195.9 million in the quarter. For the year, bookings totaled $808.1 million, resulting in a book-to-bill ratio of 1.02:1. Backlog at the end of the quarter was $599.2 million, the highest recorded for any year-end in the Company’s history.

Aerospace Segment Review (refer to sales by market and segment data in accompanying tables)

Aerospace Fourth Quarter 2024 Results (compared with the prior-year period, unless noted otherwise)

Record Aerospace segment sales of $188.5 million were up $19.8 million, or 11.7%. The improvement was driven by a 13.5% increase, or $16.7 million, in Commercial Transport sales. Growth was primarily related to increased demand by airlines for cabin power and inflight entertainment & connectivity (“IFEC”) products which are in the Electrical Power & Motion and Avionics product groups. This was somewhat offset by lower sales of commercial lighting and safety products resulting from the Boeing strike.

Military Aircraft sales increased $7.2 million, or 41.6%, to $24.5 million driven by increased demand for Lighting & Safety products as well as progress on the FLRAA program. General Aviation sales decreased $2.5 million, or 12.3%, to $17.7 million.

Aerospace segment operating profit of $16.8 million, or 8.9% of sales, improved over the prior-year period despite a $4.8 million true-up in legal reserves related to the previously discussed UK judgment, an increase of $3.0 million in litigation-related legal expenses, $1.7 million in warranty expense related to the previously-mentioned field modification, and a non-cash reserve associated with a customer bankruptcy of $1.0 million. Adjusted Aerospace operating profit² was $30.2 million, or 16.0% of sales, reflecting the leverage gained on higher volume and improving production efficiencies.

Aerospace bookings were $182.5 million for a book-to-bill ratio of 0.97:1. Backlog for the Aerospace segment was $537.6 million at the end of 2024.

Mr. Gundermann commented, “Our Aerospace business continues to accelerate nicely, with consistent double-digit growth in revenue. Operating margin expansion validates the strong operating leverage of the business while 16.0% adjusted operating profit margin² demonstrates solid progress towards our mid-teens target level. Demand remains strong with total bookings for the year of $733 million for a book-to-bill of 1.04, supporting our expectation of continued growth in 2025.”

Test Systems Segment Review (refer to sales by market and segment data in accompanying tables)

Test Systems Fourth Quarter 2024 Results (compared with the prior-year period, unless noted otherwise)

Test Systems segment sales were $20.0 million, down $6.6 million from a strong comparator quarter in 2023.

Test Systems segment operating loss was slightly below break-even, consistent with the fourth quarter of 2023. Additional restructuring initiatives were implemented in the 2024 fourth quarter, which are expected to provide annualized savings of approximately $4 million to $5 million, beginning in the first quarter of 2025. During the quarter, the closure of a third Test facility in the last two years was substantially completed. Operating loss for the fourth quarter includes $1.4 million in severance expense and the impact of contribution margin lost on lower sales volume. Adjusted operating profit margin² was 7.3%, an improvement over the 2.5% of the comparator quarter, demonstrating the benefit from the restructuring initiatives implemented during 2024.

Bookings for the Test Systems segment in the quarter were $13.4 million, for a book-to-bill ratio of 0.67:1 for the quarter. Backlog was $61.7 million at the end of 2024.

Mr. Gundermann commented, “Our Test business initiated further restructuring during the fourth quarter to focus on the most critical initiatives going forward, including the radio test program for the U.S. Army, which is expected to enter volume production in the second half of 2025.”

Liquidity and Financing

Cash provided by operations in the fourth quarter of 2024 was $26.4 million, primarily the result of improved working capital management and higher non-cash adjustments impacting net income, including loss on debt extinguishment and legal expense and reserve increases. Cash on hand at the end of the quarter was $18.4 million. Capital expenditures in the quarter were $3.2 million and $8.4 million for the full year. Net debt was $156.6 million, down from $161.2 million at December 31, 2023.

On November 25, 2024, the Company amended the ABL Revolving Credit Facility, increasing the revolving credit line to $220 million with an interest rate of SOFR plus 2.75% to 3.25% (an increase of 0.25% to each such applicable margin). The Company had $10 million drawn on the facility at the end of 2024.

On December 3, 2024, the Company issued $165 million aggregate principal amount of 5.500% Convertible Senior Notes. The Notes will mature on March 15, 2030, unless earlier converted, redeemed or repurchased. The Company has the flexibility to settle the Notes in stock, cash or a combination of both. The Company’s intention is to minimize dilution by net share settling the Notes whenever possible.

The Company repaid in full all outstanding indebtedness on its Term Loan Facility, which consisted of a repayment of principal of approximately $54.9 million, plus accrued but unpaid interest, fees and expenses, including a call premium of $1.3 million, which satisfied all of the Company’s indebtedness obligations thereunder.

2025 Outlook

The Company expects 2025 revenue to be approximately $820 million to $860 million. The midpoint of this range would be a 6% increase over 2024 sales. Sales in the first quarter are projected to be approximately $190 million to $205 million, with subsequent quarters stepping up from there.

Backlog at December 31, 2024 was $599.2 million, a record year-end level.

Planned capital expenditures for 2025 are expected to be in the range of $35 million to $40 million. The higher level of expenditure is driven by a planned facility consolidation, additional capacity to handle anticipated growth and to compensate for constrained investment in recent years.

Mr. Gundermann concluded, “2024 was another year of strong double-digit growth for Astronics. We have averaged approximately 22% per year for the last three years. We expect growth to moderate in 2025, but margin improvement to continue. We begin the year with a strengthened balance sheet, an improving margin profile, and a record backlog. The signs are strong that 2025 will be a very good year for the Company.”

Fourth Quarter 2024 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 13751261. The telephonic replay will be available from 8:45 p.m. on the day of the call through Tuesday, March 18, 2025. 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, 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 2025 outlook, sales in the first quarter of 2025, the amount of capital expenditures for 2025, statements regarding the strategy of the Company and its outlook, the timing for the occurrence of the pending consequential hearing, the timing for the payment by Astronics of the final liability with respect to the infringement dispute with Lufthansa Technik AG, and the timing as to when any further appeal, if any, will occur. 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 and simulation 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

ASTRONICS CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS DATA
(Unaudited, $ in thousands except per share data)
	Three Months Ended							Year Ended
	12/31/2024			12/31/2023				12/31/2024			12/31/2023
Sales	$	208,540		$	195,292			$	795,426		$	689,206
Cost of products sold		158,486			155,319				627,084			568,410
Gross profit		50,054			39,973				168,342			120,796
Gross margin		24.0	%		20.5	%			21.2	%		17.5	%
Selling, general and administrative		41,178			32,191				141,876			127,467
SG&A % of sales		19.7	%		16.5	%			17.8	%		18.5	%
Income (loss) from operations		8,876			7,782				26,466			(6,671	)
Operating margin		4.3	%		4.0	%			3.3	%		(1.0	)%
Net gain on sale of business		—			—				—			3,427
Loss on extinguishment of debt		3,161			—				10,148			—
Other expense (income)		973			301				2,187			(261	)
Interest expense, net		4,166			5,947				21,998			23,328
Income (loss) before tax		576			1,534				(7,867	)		(26,311	)
Income tax expense (benefit)		3,408			(5,442	)			8,348			110
Net (loss) income	$	(2,832	)	$	6,976			$	(16,215	)	$	(26,421	)
Net (loss) income %		(1.4	)%		3.6	%			(2.0	)%		(3.8	)%
Basic (loss) earnings per share:	$	(0.08	)	$	0.20			$	(0.46	)	$	(0.80	)
Diluted (loss) earnings per share:	$	(0.08	)	$	0.20			$	(0.46	)	$	(0.80	)
Weighted average diluted shares outstanding (in thousands)		35,255			34,512				35,037			33,104

ASTRONICS CORPORATION
RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA
(Unaudited, $ in thousands)
	Consolidated
	Three Months Ended								Year Ended
	12/31/2024				12/31/2023				12/31/2024				12/31/2023
Net (loss) income	$	(2,832	)		$	6,976			$	(16,215	)		$	(26,421	)
Add back (deduct):
Interest expense		4,166				5,947				21,998				23,328
Income tax expense (benefit)		3,408				(5,442	)			8,348				110
Depreciation and amortization expense		5,894				6,346				24,466				26,104
Equity-based compensation expense		2,157				1,595				8,571				7,198
Early retirement penalty waiver		624				—				624				—
Non-cash annual stock bonus accrual3		—				2,806				—				2,806
Non-cash 401K contribution and quarterly bonus accrual		—				2,776				3,454				6,549
Restructuring-related charges including severance		1,411				—				2,444				564
Legal reserve, settlements and recoveries		4,762				—				4,430				(2,532	)
Litigation-related legal expenses		6,066				3,826				19,746				17,850
Equity investment accrued payable write-off		—				—				—				(1,800	)
Net gain on sale of business		—				—				—				(3,427	)
Loss on extinguishment of debt		3,161				—				10,148				—
Non-cash reserves for customer bankruptcy		1,032				—				3,235				11,074
Warranty reserve		1,690				—				5,217				—
Deferred liability recovery		—				—				—				(5,824	)
Adjusted EBITDA	$	31,539			$	24,830			$	96,466			$	55,579
Sales	$	208,540			$	195,292			$	795,426			$	689,206
Adjusted EBITDA margin %		15.1	%			12.7	%			12.1	%			8.1	%

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.

ASTRONICS CORPORATION
RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT
(Unaudited, $ in thousands)
	Consolidated
	Three Months Ended								Year Ended
	12/31/2024				12/31/2023				12/31/2024				12/31/2023
Gross profit	$	50,054			$	39,973			$	168,342			$	120,796
Add back (deduct):
Warranty reserve		1,690				—				5,217				—
Non-cash reserves for customer bankruptcy		794				—				1,703				3,601
Deferred liability recovery		—				—				—				(5,824	)
Adjusted gross profit	$	52,538			$	39,973			$	175,262			$	118,573
Sales	$	208,540			$	195,292			$	795,426			$	689,206
Gross margin		24.0	%			20.5	%			21.2	%			17.5	%
Adjusted gross margin		25.2	%			20.5	%			22.0	%			17.2	%

Adjusted Gross Profit is defined as gross profit as reported, adjusted for certain items. Adjusted Gross Profit Margin is defined as Adjusted Gross Profit divided by sales. Adjusted Gross Profit and Adjusted Gross Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Gross Profit and Adjusted Gross Profit Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Gross Profit and Adjusted Gross Profit 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 gross profit and gross profit margin to the historical periods’ gross profit, as well as facilitates a more meaningful comparison of the Company’s gross profit and gross profit margin to that of other companies.

NOTE: Reconciliation of gross profit to adjusted gross profit for prior quarters can be found in the Supplemental Prior Period Tables at https://investors.astronics.com/.

ASTRONICS CORPORATION
RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME
(Unaudited, $ in thousands)
	Consolidated
	Three Months Ended								Year Ended
	12/31/2024				12/31/2023				12/31/2024				12/31/2023
Income (loss) from operations	$	8,876			$	7,782			$	26,466			$	(6,671	)
Add back (deduct):
Restructuring-related charges including severance		1,411				—				2,444				564
Legal reserve, settlements and recoveries		4,762				—				4,430				(2,532	)
Litigation-related legal expenses		6,066				3,826				19,746				17,850
Non-cash reserves for customer bankruptcy		1,032				—				3,235				11,074
Warranty reserve		1,690				—				5,217				—
Deferred liability recovery		—				—				—				(5,824	)
Adjusted operating income	$	23,837			$	11,608			$	61,538			$	14,461
Sales	$	208,540			$	195,292			$	795,426			$	689,206
Operating margin		4.3	%			4.0	%			3.3	%			(1.0	)%
Adjusted operating margin		11.4	%			5.9	%			7.7	%			2.1	%

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.

NOTE: Reconciliation of operating income to adjusted operating income for prior quarters can be found in the Supplemental Prior Period Tables at https://investors.astronics.com/.

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 Ended								Year Ended
	12/31/2024				12/31/2023				12/31/2024				12/31/2023
Net (loss) income	$	(2,832	)		$	6,976			$	(16,215	)		$	(26,421	)
Add back (deduct):
Amortization of intangibles		3,143				3,321				12,871				13,898
Restructuring-related charges including severance		1,411				—				2,444				564
Early retirement penalty waiver		624				—				624				—
Legal reserve, settlements and recoveries		4,762				—				4,430				(2,532	)
Litigation-related legal expenses		6,066				3,826				19,746				17,850
Equity investment accrued payable write-off		—				—				—				(1,800	)
Net gain on sale of business		—				—				—				(3,427	)
Loss on extinguishment of debt		3,161				—				10,148				—
Non-cash reserves for customer bankruptcy		1,032				—				3,235				11,074
Warranty reserve		1,690				—				5,217				—
Deferred liability recovery		—				—				—				(5,824	)
Normalize tax rate4		(2,208	)			(7,612	)			(4,364	)			(763	)
Adjusted net income	$	16,849			$	6,511			$	38,136			$	2,619
Weighted average diluted shares outstanding (in thousands)		35,255				34,512				35,037				33,104
Diluted earnings (loss) per share	$	(0.08	)		$	0.20			$	(0.46	)		$	(0.80	)
Adjusted diluted earnings per share	$	0.48			$	0.19			$	1.09			$	0.08

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.

NOTE: Reconciliation of net income to adjusted net income for prior quarters can be found in the Supplemental Prior Period Tables at https://investors.astronics.com/.

ASTRONICS CORPORATION
SEGMENT SALES AND PROFIT
(Unaudited, $ in thousands)
	Three Months Ended							Year Ended
	12/31/2024			12/31/2023				12/31/2024			12/31/2023
Sales
Aerospace	$	188,559		$	168,784			$	706,746		$	605,001
Less inter-segment		(10	)		(37	)			(62	)		(171	)
Total Aerospace		188,549			168,747				706,684			604,830
Test Systems		20,084			26,545				88,874			84,376
Less inter-segment		(93	)		—				(132	)		—
Total Test Systems		19,991			26,545				88,742			84,376
Total consolidated sales		208,540			195,292				795,426			689,206
Segment gross profit and margins
Aerospace		45,040			35,202				157,667			104,882
		23.9	%		20.9	%			22.3	%		17.3	%
Test Systems		5,014			4,771				10,675			15,914
		25.1	%		18.0	%			12.0	%		18.9	%
Total gross profit		50,054			39,973				168,342			120,796
Segment operating profit and margins
Aerospace		16,778			14,287				62,406			24,629
		8.9	%		8.5	%			8.8	%		4.1	%
Test Systems		(49	)		(224	)			(8,477	)		(8,745	)
		(0.2	)%		(0.8	)%			(9.6	)%		(10.4	)%
Total segment operating profit		16,729			14,063				53,929			15,884
Net gain on sale of business		—			—				—			3,427
Loss on extinguishment of debt		3,161			—				10,148			—
Interest expense		4,166			5,947				21,998			23,328
Corporate expenses and other		8,826			6,582				29,650			22,294
Income (loss) before taxes	$	576		$	1,534			$	(7,867	)	$	(26,311	)

NOTE: Segment gross profit for prior quarters can be found in the Supplemental Prior Period Tables at https://investors.astronics.com/.

ASTRONICS CORPORATION
RECONCILIATION OF SEGMENT OPERATING PROFIT TO ADJUSTED SEGMENT OPERATING PROFIT
(Unaudited, $ in thousands)
	Three Months Ended								Year Ended
	12/31/2024				12/31/2023				12/31/2024				12/31/2023
Aerospace operating profit	$	16,778			$	14,287			$	62,406			$	24,629
Restructuring-related charges including severance		—				—				237				—
Legal reserve, settlements and recoveries		4,762				—				4,430				(2,532	)
Litigation-related legal expenses		5,966				2,948				19,127				9,727
Non-cash reserves for customer bankruptcy		1,032				—				3,235				11,074
Warranty reserve		1,690				—				5,217				—
Adjusted Aerospace operating profit	$	30,228			$	17,235			$	94,652			$	42,898
Aerospace sales	$	188,549			$	168,747			$	706,684			$	604,830
Aerospace margin		8.9	%			8.5	%			8.8	%			4.1	%
Adjusted Aerospace margin		16.0	%			10.2	%			13.4	%			7.1	%
Test Systems operating loss	$	(49	)		$	(224	)		$	(8,477	)		$	(8,745	)
Restructuring-related charges including severance		1,411				—				2,207				564
Litigation-related legal expenses		100				878				619				8,123
Deferred liability recovery		—				—				—				(5,824	)
Adjusted Test Systems operating profit (loss)	$	1,462			$	654			$	(5,651	)		$	(5,882	)
Test Systems sales	$	19,991			$	26,545			$	88,742			$	84,376
Test Systems margin		(0.2	)%			(0.8	)%			(9.6	)%			(10.4	)%
Adjusted Test Systems margin		7.3	%			2.5	%			(6.4	)%			(7.0	)%

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.

NOTE: Reconciliation of segment operating profit to adjusted segment operating profit for prior quarters can be found in the Supplemental Prior Period Tables at https://investors.astronics.com/.

ASTRONICS CORPORATION
CONSOLIDATED BALANCE SHEETS
($ in thousands)
	(unaudited)
	12/31/2024				12/31/2023
ASSETS
Current assets:
Cash and cash equivalents	$	9,285			$	4,756
Restricted cash		9,143				6,557
Accounts receivable, net of allowance of estimated credit losses		191,446				172,108
Inventories		199,741				191,801
Prepaid and other current assets		16,557				14,560
Total current assets		426,172				389,782
Property, plant and equipment, net of accumulated depreciation		80,687				85,436
Operating right-of-use assets		23,609				27,909
Other assets		7,763				7,035
Intangible assets, net of accumulated amortization		52,477				65,420
Goodwill		58,056				58,210
Total assets	$	648,764			$	633,792
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	—			$	8,996
Accounts payable		42,960				61,134
Accrued payroll and employee benefits		33,409				22,038
Accrued income taxes		6,678				3,045
Current operating lease liabilities		4,697				5,069
Other accrued expenses		40,917				21,023
Customer advances and deferred revenue		27,491				22,029
Total current liabilities		156,152				143,334
Long-term debt		168,669				159,237
Supplemental retirement plan and other liabilities for pension benefits		24,088				29,290
Long-term operating lease liabilities		20,508				24,376
Other liabilities		21,816				26,730
Deferred income taxes		1,434				1,307
Total liabilities		392,667				384,274
Shareholders’ equity:
Common stock		329				314
Convertible Class B stock		51				59
Additional paid-in capital		144,149				129,544
Accumulated other comprehensive loss		(3,863	)			(9,426	)
Retained earnings		192,208				209,753
Treasury stock		(76,777	)			(80,726	)
Total shareholders’ equity		256,097				249,518
Total liabilities and shareholders’ equity	$	648,764			$	633,792

ASTRONICS CORPORATION
CONSOLIDATED CASH FLOWS DATA
	Year Ended
(Unaudited, $ in thousands)	December 31, 2024				December 31, 2023
Cash flows from operating activities:
Net loss	$	(16,215	)		$	(26,421	)
Adjustments to reconcile net loss to cash from operating activities:
Non-cash items:
Depreciation and amortization		24,466				26,104
Amortization of deferred financing fees		3,194				3,023
Provisions for non-cash losses on inventory and receivables		13,782				16,003
Equity-based compensation expense		8,571				7,198
Loss on extinguishment of debt		10,148				—
Deferred tax (benefit) expense		(20	)			146
Operating lease non-cash expense		5,175				5,088
Non-cash 401K contribution and quarterly bonus accrual		3,454				6,549
Non-cash annual stock bonus accrual		—				2,806
Net gain on sale of business, before taxes		—				(3,427	)
Non-cash litigation provision adjustment		4,468				(1,305	)
Non-cash deferred liability recovery		—				(5,824	)
Other		5,807				1,913
Cash flows from changes in operating assets and liabilities:
Accounts receivable		(21,983	)			(31,872	)
Inventories		(21,551	)			(13,283	)
Accounts payable		(17,693	)			(4,495	)
Accrued expenses		21,987				4,634
Income taxes		4,498				(1,949	)
Customer advanced payments and deferred revenue		5,693				(4,835	)
Operating lease liabilities		(5,125	)			(4,880	)
Supplemental retirement plan liabilities		(410	)			(408	)
Other assets and liabilities		2,320				1,285
Net cash provided (used) by operating activities		30,566				(23,950	)
Cash flows from investing activities:
Proceeds on sale of businesses and assets		—				3,537
Capital expenditures		(8,428	)			(7,643	)
Net cash used by investing activities		(8,428	)			(4,106	)
Cash flows from financing activities:
Proceeds from long-term debt		377,392				139,732
Principal payments on long-term debt		(374,890	)			(131,233	)
Stock award and employee stock purchase plan activity		(241	)			2,476
Proceeds from at-the-market stock sales		—				21,269
Financing-related costs		(12,150	)			(6,762	)
Financing extinguishment costs		(4,496	)			—
Other		(145	)			(47	)
Net cash (used) provided by financing activities		(14,530	)			25,435
Effect of exchange rates on cash		(493	)			156
Increase (decrease) in cash and cash equivalents and restricted cash		7,115				(2,465	)
Cash and cash equivalents and restricted cash at beginning of year		11,313				13,778
Cash and cash equivalents and restricted cash at end of year	$	18,428			$	11,313
Supplemental disclosure of cash flow information
Interest paid	$	19,238			$	17,689
Income taxes paid, net of refunds	$	3,537			$	1,964

ASTRONICS CORPORATION
SALES BY MARKET
(Unaudited, $ in thousands)
	Three Months Ended							Year Ended						2024 YTD
	12/31/2024		12/31/2023		% change			12/31/2024		12/31/2023		% change		% of Sales
Aerospace Segment
Commercial Transport	$	140,893	$	124,183	13.5	%		$	524,572	$	432,199	21.4	%	65.9	%
Military Aircraft		24,474		17,282	41.6	%			88,019		61,617	42.8	%	11.1	%
General Aviation		17,701		20,186	(12.3	)%			74,344		80,842	(8.0	)%	9.3	%
Other		5,481		7,096	(22.8	)%			19,749		30,172	(34.5	)%	2.5	%
Aerospace Total		188,549		168,747	11.7	%			706,684		604,830	16.8	%	88.8	%
Test Systems Segment5
Government & Defense		19,991		26,545	(24.7	)%			88,742		84,376	5.2	%	11.2	%
Total Sales	$	208,540	$	195,292	6.8	%		$	795,426	$	689,206	15.4	%

SALES BY PRODUCT LINE
(Unaudited, $ in thousands)
	Three Months Ended							Year Ended						2024 YTD
	12/31/2024		12/31/2023		% change			12/31/2024		12/31/2023		% change		% of Sales
Aerospace Segment
Electrical Power & Motion	$	95,124	$	82,337	15.5	%		$	359,043	$	268,049	33.9	%	45.1	%
Lighting & Safety		44,241		40,467	9.3	%			179,403		157,434	14.0	%	22.6	%
Avionics		36,467		30,106	21.1	%			120,183		113,117	6.2	%	15.1	%
Systems Certification		4,731		6,423	(26.3	)%			17,003		26,255	(35.2	)%	2.1	%
Structures		2,505		2,318	8.1	%			11,303		9,803	15.3	%	1.4	%
Other		5,481		7,096	(22.8	)%			19,749		30,172	(34.5	)%	2.5	%
Aerospace Total		188,549		168,747	11.7	%			706,684		604,830	16.8	%	88.8	%
Test Systems Segment5		19,991		26,545	(24.7	)%			88,742		84,376	5.2	%	11.2	%
Total Sales	$	208,540	$	195,292	6.8	%		$	795,426	$	689,206	15.4	%

ASTRONICS CORPORATION
ORDER AND BACKLOG TREND
(Unaudited, $ in thousands)
	Q1 2024		Q2 2024		Q3 2024		Q4 2024		Trailing Twelve Months
	3/30/2024		6/29/2024		9/28/2024		12/31/2024		12/31/2024
Sales
Aerospace	$	163,638	$	176,943	$	177,554	$	188,549	$	706,684
Test Systems		21,436		21,171		26,144		19,991		88,742
Total Sales	$	185,074	$	198,114	$	203,698	$	208,540	$	795,426
Bookings
Aerospace	$	184,149	$	192,515	$	173,569	$	182,474	$	732,707
Test Systems		19,986		26,359		15,597		13,430		75,372
Total Bookings	$	204,135	$	218,874	$	189,166	$	195,904	$	808,079
Backlog
Aerospace6	$	532,051	$	547,623	$	543,638	$	537,563
Test Systems		73,586		78,774		68,227		61,666
Total Backlog	$	605,637	$	626,397	$	611,865	$	599,229		N/A
Book:Bill Ratio
Aerospace		1.13		1.09		0.98		0.97		1.04
Test Systems		0.93		1.25		0.60		0.67		0.85
Total Book:Bill		1.10		1.10		0.93		0.94		1.02

_______________________
¹ Adjusted EBITDA and adjusted EBITDA margin are Non-GAAP financial measures. Please see the reconciliation of GAAP to non-GAAP financial measures in the tables that accompany this release.
² Adjusted gross profit, adjusted gross margin, 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.
³ The sum of the four discrete quarters for the year ended December 31, 2024 does not sum to the zero balance shown for the full year. In the first quarter of 2024, it was assumed that annual incentive compensation would be paid in stock, and thus such amount ($1.4 million) was presented as an addback for Adjusted EBITDA purposes. In the fourth quarter of 2024, it was concluded that all annual incentive compensation amounts would be paid in cash, and thus the addback for the full year has been eliminated. A reconciling adjustment has not been made to the quarter ended December 31, 2024 as it is deemed unnecessarily distortive to the Adjusted EBITDA measure for the quarter.
⁴ Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.
⁵ Test Systems sales in the year ended December 31, 2023 included a $5.8 million reversal of a deferred revenue liability recorded with a previous acquisition.
⁶ In October of 2024, a customer reported within the Aerospace segment declared bankruptcy. Aerospace and Total Backlog included $9.3 million related to that customer. In the table and bar chart presented above, Aerospace and Total Bookings was reduced by $9.3 million, in the periods in which the original bookings occurred. While the customer has not cancelled those orders and seeks to reorganize and continue operations, we have removed all outstanding backlog until additional information is available to confirm whether those orders are expected to be satisfied. For a customer bankruptcy that occurred during 2023, Aerospace and Total Bookings of $2.6 million and $17.2 million was removed in second and third quarters of 2021, respectively. 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250304643339/en/

For more information, contact:

Company:

Nancy L. Hedges, Chief Financial Officer

Phone: (716) 805-1599, ext. 159

Email: nancy.hedges@astronics.com

Investor Relations:

Deborah K. Pawlowski, Alliance Advisors LLC

Phone: (716) 843-3908

Email: dpawlowski@allianceadvisors.com

Source: Astronics Corporation

FAQ

What were Astronics (ATRO) Q4 2024 financial highlights?

Q4 sales grew 6.8% to $208.5M, with Aerospace segment up 12% to $188.5M. Net loss was $2.8M, but adjusted EBITDA reached $31.5M (15.1% of sales).

How much will ATRO pay for the UK patent infringement ruling in 2024?

Astronics must pay approximately $11.9M, with payment expected in Q2 2025. Additional amounts may be determined in first half 2025 hearings.

What is Astronics (ATRO) revenue guidance for 2025?

ATRO maintains 2025 revenue guidance of $820-860M, with Q1 projected at $190-205M.

What was ATRO's backlog value at the end of 2024?

Backlog reached $599.2M at end of 2024, the highest recorded year-end backlog in company history.