Astronics Corporation reported significant financial improvements for the nine months ended September 28, 2024, compared to the same period in the previous year. Total consolidated sales reached $586.9 million, a notable increase of 18.8% from $493.9 million in the nine months ended September 30, 2023. The growth was primarily driven by the Aerospace segment, which generated $518.2 million in sales, up from $436.2 million, reflecting a robust demand in commercial transport and military aircraft sectors.
Gross profit for the nine-month period also saw a substantial rise, totaling $118.3 million, compared to $80.8 million in the prior year, resulting in a gross margin improvement from 16.4% to 20.2%. Operating income turned positive at $17.6 million, a significant recovery from an operating loss of $14.5 million in the previous year. However, the company still reported a net loss of $13.4 million, reduced from a loss of $33.4 million in the same period last year, translating to a basic loss per share of $0.38, compared to $1.02.
In the third quarter alone, sales increased by 25% to $203.7 million, driven by a $35.5 million rise in Aerospace sales. The gross profit for Q3 was $42.7 million, up from $20.6 million, with a gross margin of 21.0%. The operating profit for the quarter was $8.4 million, a turnaround from a loss of $14.5 million in Q3 2023.
Strategically, Astronics has made significant moves to strengthen its financial position. In July 2024, the company amended its revolving credit facility, increasing the borrowing limit to $200 million and extending the maturity to July 2027. Additionally, a new $55 million Term Loan Facility was established, also maturing in July 2027. The company fully repaid approximately $84.5 million in outstanding debt from a previous term loan, funded by the new credit facilities.
The company faced challenges, including customer bankruptcies that led to reserves of $2.2 million in Q3 2024, impacting the Aerospace segment's operating profit. Despite these challenges, Astronics reported a total backlog of $611.9 million as of September 28, 2024, indicating a strong pipeline for future revenue.
Overall, Astronics Corporation's financial performance reflects a recovery trajectory, with improved sales, profitability, and strategic financial management aimed at enhancing operational efficiency and addressing market challenges.
About ASTRONICS CORP
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