Nasdaq:ATRO
ASTRONICS CORP
A growing electronics manufacturer specializing in aerospace and defense systems that recently achieved profitability with $29.4M net income.
Key Metrics
Investment Thesis
Bull Case
The stock presents a compelling turnaround story with revenue growing steadily from $534.9M in 2022 to $862.1M in 2025 and achieving consistent profitability. Strong operating cash flow of $74.8M provides the liquidity needed for strategic acquisitions, evidenced by recent $22.1M acquisition activity.
Bear Case
Despite recent profits, the company carries a substantial retained earnings deficit of $216.7M which may signal lingering structural inefficiencies or past operational failures. The significant non-operating loss of $-44.5M and heavy debt obligations could weigh on future margins if economic conditions deteriorate.
About ASTRONICS CORP
ASTRONICS CORP (ATRO) is a leading provider of advanced electronic systems and components serving the aerospace, defense, and commercial markets. The company leverages its robust engineering capabilities to deliver high-reliability solutions across global supply chains, with revenue reaching $862.1M in 2025.
Analysis
Management Discussion
Management successfully guided the company through a turnaround, transforming a loss-making operation into a profitable one with net profit of $29.4M in 2025. Despite this achievement, the cash flow from financing activities showed an outflow of $-22.4M, suggesting active capital management or debt refinancing efforts.
Industry Overview
The aerospace and defense electronics industry is characterized by high barriers to entry, stringent regulatory requirements, and a demand for reliable, long-lasting components. Companies in this sector often face cyclical demand driven by government spending and commercial aviation trends, impacting revenue stability.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $534.9M | $689.2M | $795.4M | $862.1M |
| Cost of Revenue | $463.4M | $568.4M | $627.1M | $604.0M |
| Gross Profit | $71.5M | $120.8M | $168.3M | $258.2M |
| Operating Expenses | $101.6M | $127.5M | $141.9M | $181.7M |
| Operating Income | $-30.0M | $-6.7M | $26.5M | $76.4M |
| R&D | $48.3M | $53.5M | $52.1M | $43.5M |
| G&A | $101.6M | $127.5M | $141.9M | $138.3M |
| Stock-Based Comp | $6.5M | $7.2M | $8.6M | $6.8M |
| D&A | $27.8M | $26.1M | $24.5M | $21.8M |
| Depreciation | $12.0M | $12.2M | $11.5M | $10.2M |
| Amortization | $14.9M | $13.9M | $12.9M | $11.5M |
| Other OpEx | $-48.3M | $-53.5M | $-52.1M | $0 |
| Non-Operating Income | $251.0K | $-19.6M | $-34.3M | $-44.5M |
| Pre-Tax Income | $-29.8M | $-26.3M | $-7.9M | $31.9M |
| Income Tax | $6.0M | $110.0K | $8.3M | $2.6M |
| Continuing Ops | $-35.7M | $-26.4M | $-16.2M | $29.4M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-35.7M | $-26.4M | $-16.2M | $29.4M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-35.7M | $-26.4M | $-16.2M | $29.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $365.3M | $389.8M | $426.2M | $437.7M |
| Cash & Equivalents | — | $4.8M | $9.3M | $18.2M |
| Accounts Receivable | $147.8M | $172.1M | $191.4M | $204.7M |
| Inventory | $188.0M | $191.8M | $199.7M | $196.9M |
| Prepaid Expenses | $15.7M | $14.6M | $16.6M | $18.0M |
| Other Current Assets | $13.8M | $6.6M | $9.1M | $0 |
| Long-Term Assets | $249.7M | $244.0M | $222.6M | $268.9M |
| PP&E (Net) | $90.7M | $85.4M | $80.7M | $107.1M |
| Intangibles | $79.3M | $65.4M | $52.5M | $55.4M |
| Goodwill | $58.2M | $58.2M | $58.1M | $62.9M |
| Operating Leases | $13.0M | $27.9M | $23.6M | $32.3M |
| Other LT Assets | $8.6M | $7.0M | $7.8M | $11.3M |
| Total Assets | $615.0M | $633.8M | $648.8M | $706.7M |
| Current Liabilities | $151.6M | $143.3M | $156.2M | $141.3M |
| Accounts Payable | $64.2M | $61.1M | $43.0M | $41.1M |
| Current Debt | $4.5M | $9.0M | $0 | — |
| Current Leases | $4.4M | $5.1M | $4.7M | $5.8M |
| Deferred Revenue | $32.6M | $22.0M | $27.5M | $26.1M |
| Taxes Payable | $6.4M | $3.0M | $6.7M | $1.4M |
| Other Current Liab | $39.5M | $43.1M | $74.3M | $66.9M |
| Long-Term Liabilities | $223.5M | $240.9M | $236.5M | $425.3M |
| Long-Term Debt | $159.5M | $159.2M | $168.7M | $334.5M |
| LT Operating Leases | $9.9M | $24.4M | $20.5M | $38.1M |
| Other LT Liab | $54.1M | $57.3M | $47.3M | $52.8M |
| Total Liabilities | $375.1M | $384.3M | $392.7M | $566.6M |
| Shareholders' Equity | $239.9M | $249.5M | $256.1M | $140.1M |
| Retained Earnings | $240.4M | $209.8M | $192.2M | $216.7M |
| AOCI | $-9.5M | $-9.4M | $-3.9M | $-4.4M |
| Total L&E | $615.0M | $633.8M | $648.8M | $706.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-35.7M | $-26.4M | $-16.2M | $29.4M |
| Non-Cash Adjustments | $-117.6M | $-34.3M | $-8.5M | $65.5M |
| Working Capital Changes | $125.1M | $36.8M | $55.3M | $-20.0M |
| Cash from Operations | $-28.3M | $-23.9M | $30.6M | $74.8M |
| Cash from Investing | $14.4M | $-4.1M | $-8.4M | $-53.7M |
| Debt Issuances | $125.8M | $139.7M | $377.4M | — |
| Debt Repayments | $124.8M | $131.2M | $374.9M | $111.1M |
| Share Buybacks | $0 | — | — | — |
| Cash from Financing | $-1.4M | $25.4M | $-14.5M | $-22.4M |
| FX Effect | $-641.0K | $156.0K | $-493.0K | $1.1M |
| Net Change in Cash | $-16.0M | $-2.5M | $7.1M | $-248.0K |
| Beginning Cash | $29.8M | $13.8M | $11.3M | $18.4M |
| Ending Cash | $13.8M | $11.3M | $18.4M | $18.2M |
Frequently Asked Questions
How does ASTRONICS CORP make money?
The company's revenue is primarily driven by specialized electronic components for the aerospace and defense sectors, supported by commercial applications. Financials indicate a diversified product mix where cost of revenue was $604.0M against total revenue of $862.1M, reflecting significant scale in system integration.
What are the main risks for ATRO?
Investors should monitor the high level of current liabilities ($141.3M) against current assets ($437.7M) to assess short-term liquidity pressures. Significant non-operating losses of $-44.5M suggest potential exposure to volatile market conditions or foreign exchange impacts. Additionally, the company has a retained earnings deficit of $216.7M, indicating historical profitability challenges that could constrain future dividend policies.
What is ATRO's competitive advantage?
ASTRONICS CORP benefits from substantial accumulated goodwill ($62.9M) indicating strong brand equity and customer loyalty within niche markets. The company maintains a healthy cash position relative to operations, generating $74.8M in operating cash flow while managing long-term debt of $334.5M effectively.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.