AstroNova, Inc. announced a comprehensive restructuring plan aimed at generating $3 million in annualized cost savings by the end of fiscal year 2026. This initiative includes a reduction of approximately 10% of the company's global workforce, primarily within the Product Identification (PI) segment, and a realignment of its MTEX operation in Portugal.
The company also reported preliminary unaudited revenues of approximately $37.4 million for the fourth quarter of fiscal 2025, compared to $39.6 million in the prior-year quarter. AstroNova expects to record a $13.4 million non-cash goodwill impairment charge related to the PI segment, largely associated with its MTEX business, reflecting the challenges of the acquisition.
In a critical financial move, AstroNova successfully executed a waiver and amendment of its revolving credit facility and term loans with Bank of America. This amendment waives certain covered covenants as of January 31, 2025, provides for relaxed financial covenant ratios during fiscal 2026, and reduces term loan payments for fiscal 2026, offering crucial financial flexibility.
As part of the restructuring, AstroNova has cut approximately 70% of the MTEX product portfolio to focus on higher-margin offerings and integrated all MTEX sales, marketing, and customer support functions into its global teams. The company also provided fiscal year 2026 guidance, projecting revenues in the range of $160 million to $165 million and an Adjusted EBITDA margin of 8.5% to 9.5%.
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