Astronics Corporation Reports 15.4% Revenue Growth to $795.4 Million for Fiscal Year 2024

Astronics Corporation reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total sales reaching $795.4 million, a 15.4% increase from $689.2 million in 2023. The company achieved a gross margin of 21.2%, up from 17.5% in the previous year, and an operating income of $26.5 million, compared to a loss of $6.7 million in 2023. Despite these improvements, Astronics recorded a net loss of $16.2 million, an improvement from the $26.4 million loss reported in the prior year, resulting in a diluted loss per share of $0.46.

The company experienced notable growth in its Aerospace segment, which accounted for the majority of sales, totaling $706.7 million, a 16.8% increase from the previous year. This growth was primarily driven by increased demand in the commercial transport market, which saw sales rise by 21.4%. The Test Systems segment also contributed to the overall sales increase, with revenues rising to $88.7 million, up from $84.4 million in 2023. However, the Test Systems segment continued to face challenges, including a $3.5 million revenue reduction due to revised cost estimates on long-term contracts.

Strategically, Astronics completed a refinancing of its credit facilities, increasing its asset-based revolving credit facility to $220 million and issuing $165 million in convertible senior notes. This refinancing is expected to enhance the company's liquidity and financial flexibility. Additionally, the company recorded a $10.1 million loss on extinguishment of debt, which included call premiums and the write-off of deferred financing costs. The company’s backlog at the end of 2024 was $599.2 million, reflecting a slight increase from $586.6 million in 2023, driven by recovering demand in the commercial transport and general aviation markets.

Operationally, Astronics employed approximately 2,500 full-time employees as of December 31, 2024, with a significant portion based in the U.S. The company has maintained a strong focus on research and development, with expenses amounting to $52.1 million in 2024, slightly down from $53.5 million in 2023. The company continues to face challenges related to supply chain pressures, labor costs, and inflation, which could impact future profitability.

Looking ahead, Astronics anticipates continued growth driven by increased aircraft production rates and demand for upgrades in the commercial aviation sector. However, the company remains cautious about potential risks, including reliance on major customers like Boeing, fluctuations in government defense spending, and ongoing legal proceedings related to patent infringement claims. The company’s management is focused on leveraging its technological capabilities and strategic acquisitions to enhance its market position and drive future growth.