Astronics Corporation reported third‑quarter 2025 revenue of $211.4 million, up 3.8% from $204.5 million a year earlier, and an operating margin of 10.9%, a jump from 4.1% in the same quarter last year. The company’s adjusted operating income rose 32.4% to $25.9 million, while adjusted EBITDA increased 20.9% to $32.7 million. The earnings beat analyst expectations by $0.07 per share, a 16.7% surprise, driven by disciplined cost management and a favorable mix shift toward higher‑margin aerospace contracts.
The Aerospace segment was the primary engine of growth, generating $192.7 million in sales—an 8.5% increase—and delivering a 16.2% operating margin. In contrast, the Test Systems segment saw sales fall 47.8% to $18.7 million and posted an operating loss of $6.7 million. Management attributed the decline to a lag in full‑rate production of radio test sets for a U.S. Army program and a contraction in mass‑transit contracts, underscoring the segment’s sensitivity to large‑order cycles.
Astronics raised its full‑year revenue guidance to $847 million–$857 million, up from the prior $820 million–$860 million range, and projected fourth‑quarter sales of $225 million–$235 million. The company also highlighted a backlog of $646.7 million and announced capital‑expenditure plans of $40 million–$50 million to support facility consolidation and capacity expansion, signaling confidence in sustained demand.
The company completed a significant refinancing package that included the issuance of $225 million in 0% convertible senior notes and the repurchase of 80% of its $165 million 5.5% convertible notes due 2030. CFO Nancy Hedges explained that the transaction reduced potential dilution of nearly 5.8 million shares, lowered future conversion costs, and improved financial flexibility, thereby strengthening the balance sheet for continued investment in high‑margin aerospace opportunities.
After the results were released, investors reacted with a modest after‑hours decline of 1.68%, citing the slight revenue miss against consensus estimates. The earnings beat, however, was highlighted as a positive indicator of operational resilience amid a challenging Test Systems environment.
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