Wed, May 7, 7:56 PM (11 days ago)
### Astronics Corporation (ATRO) Q1 2025 Financial Summary **Financial Health and Performance:** - **Revenue:** $205.9 million, up 11.2% from $185.1 million in Q1 2024. - **Gross Profit:** $60.8 million, up 28.1% from $47.5 million in Q1 2024. - **Net Income:** $9.5 million, a significant improvement from a loss of $3.2 million in Q1 2024. - **Earnings Per Share (EPS):** $0.27 basic and $0.26 diluted, compared to a loss of $0.09 in Q1 2024. - **Cash Flow from Operations:** $20.6 million, up from $2.0 million in Q1 2024. **Profit Margins:** - **Gross Margin:** 29.5%, up from 25.7% in Q1 2024. - **Operating Margin:** 6.4%, improved from 0.9% in Q1 2024. **Segment Performance:** - **Aerospace Segment:** Sales increased by 17.0% to $191.4 million, driven by strong demand in Commercial Transport and Military Aircraft markets. Operating profit was $22.3 million, or 11.6% of sales. - **Test Systems Segment:** Sales decreased by 31.8% to $14.6 million due to a $1.9 million revision in estimated costs for a long-term mass transit contract. Operating loss was $2.2 million. **Cash Flow and Liquidity:** - **Cash and Cash Equivalents:** $25.9 million at the end of Q1 2025, up from $6.6 million in Q1 2024. - **Net Debt:** $140.2 million, down from $156.6 million at the end of 2024. - **ABL Revolving Credit Facility:** $1.1 million outstanding, with $187.1 million available for future borrowings. **Future Operations and Uncertainties:** - **Legal Proceedings:** Ongoing patent infringement disputes with Lufthansa Technik AG, with a $18.1 million liability recorded for damages and interest. - **Market Risks:** Exposure to foreign currency exchange rates and potential impacts from trade policies and tariffs. - **Supply Chain and Labor Market Pressures:** Continued challenges in material availability, cost increases, and labor market conditions. **Trends and Outlook:** - **Backlog:** $673.0 million, indicating strong future revenue potential. - **Book-to-Bill Ratio:** 1.36:1 for Q1 2025, suggesting robust order intake. - **Strategic Initiatives:** Focus on increasing profitability through sales growth, cost control, and operational efficiency. **Conclusion:** Astronics Corporation demonstrated strong financial performance in Q1 2025, with significant improvements in revenue, profit margins, and cash flow. The company faces challenges related to legal proceedings, market risks, and supply chain pressures but remains optimistic about future growth opportunities.