Overview

* Astronics ( ATRO ) Q2 sales rise 3.3% but miss analyst expectations, per LSEG data

* Aerospace segment sales grow 9.4%, driving overall revenue increase

* Co raises 2025 revenue guidance, reflecting confidence in future performance

Outlook

* Astronics ( ATRO ) raises lower end of 2025 revenue guidance to $840 mln-$860 mln

* Company expects $15 mln-$20 mln tariff impact before mitigation

* 75% of $645.4 mln backlog expected as revenue in next 12 months

* 2025 capital expenditures planned at $40 mln-$50 mln

Result Drivers

* AEROSPACE GROWTH - Record Aerospace sales driven by strong demand in Commercial Transport market, particularly for cabin power and inflight entertainment products

* TEST SYSTEMS DECLINE - Test Systems sales impacted by revisions of estimated costs to complete long-term contracts, reducing recognized revenue

* SIMPLIFICATION INITIATIVES - Aerospace segment operating margin affected by charges related to simplification initiatives, including footprint rationalization and product portfolio shaping

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $204.68 $208.30

mln mln (2

Analysts

)

Q2 Net $1.31

Income mln

Q2 $25.41

Adjusted mln

EBITDA

Q2 12.4%

Adjusted

EBITDA

Margin

Q2 Gross $52.83

Profit mln

Q2 2.3%

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the aerospace & defense peer group is "buy."

* Wall Street's median 12-month price target for Astronics Corp ( ATRO ) is $34.00, about 5.4% below its August 5 closing price of $35.84

* The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)