Astronics delivers strong Q4 on aerospace demand

Astronics Corporation reported financial results for the fourth quarter (Q4) of 2025, with sales growth driven by sustained demand within its Aerospace segment, primarily from the Commercial Transport market. Aerospace sales increased by US$31.0 million, or 16.5%, while Test Systems sales rose by US$0.5 million.

Gross profit increased by US$17.8 million to US$80.0 million in Q4, representing 33.3% of sales and a 350 basis point improvement on the 29.8% gross margin reported in the comparator quarter. Margin expansion was driven by higher volumes, favourable mix, pricing actions — including certain true-up pricing recoveries — improved productivity, and the benefits of Test Systems’ restructuring initiatives. These gains more than offset a US$2.9 million increase in tariff expenses.

Selling, general and administrative (SG&A) expenses decreased by US$7.3 million in Q4, primarily due to a US$9.0 million reduction in legal reserves and litigation-related costs. This was partially offset by SG&A expenses associated with the acquired BMA business and higher legal and accounting costs related to the acquisition. Research and development expenditure declined by US$1.4 million, reflecting project timing.

Higher gross profit and lower SG&A resulted in an operating margin of 14.8%, compared with 4.3% in the prior-year period. Adjusted operating margin expanded by 450 basis points.

Interest expense decreased by US$0.8 million, or 18.5%, reflecting lower interest rates following refinancing activities undertaken in 2025. The quarter included US$0.6 million in expense related to the write-off of deferred financing fees associated with two existing revolving credit facility lenders, recorded within interest expense.

Tax expense for Q4 was US$2.6 million, compared with US$3.4 million in the prior-year period, primarily due to a valuation allowance reversal linked to research and development costs expected to be expensed for tax purposes in the current year under the One Big Beautiful Bill Act.

Consolidated net income was US$0.78 per diluted share, compared with a net loss of US$0.08 per diluted share in the prior-year period, reflecting stronger operating performance and lower interest expense. Adjusted diluted earnings per share increased by US$0.29, or 62.5%, to US$0.75 per diluted share. Adjusted EBITDA rose 44.8% to US$45.7 million, with adjusted EBITDA margin expanding by 390-basis points to 19.0% of consolidated sales.

Quarterly bookings increased 31.3% to US$257.2 million. For the full year, bookings grew 14.4% to US$924.4 million, representing a book-to-bill ratio of 1.07:1. Backlog at quarter-end stood at US$674.5 million — the highest level in the company’s history.