Name: AstroNova, Inc. Q4 2025 Earnings Call
Start: 2025-04-14T13:01:00.000Z

Executive Summary

Q4 FY2025 revenue was $37.4M, down 5.6% YoY; GAAP EPS was $(2.07) driven by a $13.4M non‑cash goodwill impairment in the PI segment, while non‑GAAP diluted EPS was $0.06 .
Adjusted EBITDA was $2.8M in Q4 (vs. $5.2M YoY), and backlog ended at $28.3M (vs. $31.4M YoY), reflecting softer PI hardware and delayed defense/Aerospace deliveries .
FY2026 outlook reaffirmed: net revenue $160–$165M and adjusted EBITDA margin 8.5–9.5%; management expects print-engine integration to contribute later in FY26 and continued ToughWriter transition in Aerospace to support margins .
Restructuring actions begun in March (10% workforce reduction, portfolio rationalization at MTEX) targeting $3M annualized savings; 40% of savings expected in FY26 .
No S&P Global Wall Street consensus estimates were available for Q4 FY2025 EPS or revenue; results judged against company pre-announcement (“in line with preliminary expectations”) .

What Went Well and What Went Wrong

What Went Well

Aerospace (ex-Test & Measurement) delivered record FY revenue of $48.9M and 22.8% operating margin, supported by strong installed base and consumables/service mix .
Strategic product roadmap: five next-gen products based on MTEX print engine (QuickLabel 425/435, VersaPrint MULTI-800/1300, VersaPrint 1200) targeting higher consumables attach and margin profile .
Guidance reaffirmed for FY2026, underscoring confidence in print-engine integration and ToughWriter conversion as margin catalysts .
Management quote: “We are laser-focused on integrating MTEX’s transformative technologies… accelerating growth in supplies and service revenue… and driving strong returns on investment.” — Gregory Woods .

What Went Wrong

PI segment GAAP loss due to $13.4M non-cash goodwill impairment largely associated with MTEX; non-GAAP PI operating profit declined to 8.9% of revenue (from 11.1% YoY) as integration challenges and mix weighed on margins .
Aerospace Q4 revenue fell 9.9% YoY to $11.7M on delayed defense orders and deferred deliveries from the Boeing strike; segment operating profit declined to $2.3M (from $3.7M) .
Consolidated gross margin compressed YoY (34.1% vs. 37.2%) on lower revenue and less favorable product mix; adjusted EBITDA decreased to $2.8M (vs. $5.2M YoY) .
Analyst concerns: MTEX profitability ramp slower than expected; higher operating expenses and interest expense pressured non-GAAP EPS vs. prior year .

Financial Results

Consolidated Performance vs Prior Quarters

Metric	Q2 FY2025 (Aug 3, 2024)	Q3 FY2025 (Nov 2, 2024)	Q4 FY2025 (Jan 31, 2025)
Revenue ($USD Millions)	$40.539	$40.422	$37.361
GAAP Gross Margin (%)	35.3%	33.9%	34.1%
Adjusted EBITDA ($USD Millions)	$3.851	$3.228	$2.793
GAAP EPS ($USD)	$(0.04)	$0.03	$(2.07)
Non-GAAP Diluted EPS ($USD)	$0.08	$0.06	$0.06
Backlog ($USD Millions)	$29.9	$27.1	$28.3

Notes:

Q4 GAAP results include $13.4M non-cash goodwill impairment in PI .
Q4 backlog sequentially improved vs. Q3 but below prior year .

Segment Breakdown (Revenue and Segment Operating Profit)

Segment Metric	Q2 FY2025	Q3 FY2025	Q4 FY2025
PI Revenue ($USD Millions)	$27.165	$26.317	$25.679
PI Segment Operating Profit ($USD Millions, GAAP)	$2.348	$1.868	$(11.174) (impairment)
T&M/Aerospace Revenue ($USD Millions)	$13.374	$14.105	$11.683
T&M/Aerospace Segment Operating Profit ($USD Millions, GAAP)	$3.834	$3.251	$2.337

Non-GAAP reference for Q4: PI segment operating profit $2.291M (8.9% margin) and T&M segment operating profit $2.337M .

KPIs and Balance Sheet/Liquidity

KPI	Q2 FY2025	Q3 FY2025	Q4 FY2025
Bookings ($USD Millions)	$35.8	$37.6	—
Liquidity ($USD Millions)	>$20.0	$14.7	$9.7
Funded Debt ($USD Millions)	—	$48.9	$46.7
Free Cash Flow ($USD Millions)	—	—	$2.4

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Revenue	FY2026	$160–$165M (provided Mar 20, 2025)	$160–$165M (reaffirmed Apr 14, 2025)	Maintained
Adjusted EBITDA Margin	FY2026	8.5%–9.5% (provided Mar 20, 2025)	8.5%–9.5% (reaffirmed Apr 14, 2025)	Maintained
Adjusted EBITDA Margin	FY2025	9%–10% (Q2 update)	Guidance withdrawn in Q3	Withdrawn
Revenue Growth (organic)	FY2025	Mid-single-digit (Q2 reaffirmed)	Guidance withdrawn in Q3	Withdrawn
OI&E, Tax Rate, OpEx specifics	FY2026	Not provided	Not provided	—

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 FY25)	Previous Mentions (Q3 FY25)	Current Period (Q4 FY25)	Trend
MTEX integration and profitability	Slow start; revenue <$0.8M; non-GAAP gross margin 6.8%; EBITDA margin guide trimmed to 9–10% for FY25	Integration more time/resource intensive; MTEX operating loss $1.1M; costs rising; guidance withdrawn	Restructuring, portfolio simplification; $3M annual savings; PI goodwill impairment; integration/accounting overhaul	Improving operations mid-FY26
Aerospace/ToughWriter transition	Strong demand; margin tailwinds; conversion underway	Transition plan to 89% shipments by FY2027; royalty cost drop post FY2028	ToughWriter transition continued; OEM/airlines shifting; margin benefit expected	Positive long-term
Defense/Boeing timing	Supply chain shortages resolved vs. Q1	Boeing strike delayed shipments	Delayed defense order and strike deferments hit Q4 revenue	Normalizing FY26
Print engine technology/next-gen products	MTEX tech to integrate across PI	Plan retrofit into installed base; broaden applications	Five next-gen products; higher consumables usage; over-the-air updates	Launches through FY26
Balance sheet/liquidity/leverage	Liquidity >$20M; funded debt rose post-acquisition	Liquidity $14.7M; funded debt $48.9M	Liquidity $9.7M; funded debt down to $46.7M; revolver reduced to $25M	Deleveraging focus

Management Commentary

“We are reorganizing and realigning [MTEX]… overhauled the finance and accounting processes… aligning leadership and driving accountability… strategically refocused the product portfolio to prioritize high‑margin opportunities.” — Gregory Woods .
“Net revenue for the fourth quarter was down 5.6% to $37.4 million… GAAP results included a $13.4 million noncash goodwill impairment charge related to the PI segment… non‑GAAP operating income came in at $1.4 million.” — Thomas DeByle .
“For fiscal ’26, we are anticipating net revenue in the range of $160 million to $165 million… adjusted EBITDA margin… 8.5% to 9.5%.” — Thomas DeByle .
“We’re taking decisive action to reduce debt and improve cash flow through an inventory reduction program.” — Gregory Woods .

Q&A Highlights

The published Q4 FY2025 transcript contains prepared remarks and closing comments; no Q&A content was included in the available transcript versions .

Estimates Context

S&P Global consensus: No Wall Street consensus data available for Q4 FY2025 revenue or EPS for ALOT; # of estimates not returned. Values retrieved from S&P Global.*
Company indicated Q4 revenue was “in line with preliminary expectations,” so no beat/miss determination vs. consensus could be made .

Key Takeaways for Investors

Near-term earnings volatility reflects PI impairment and MTEX integration; non-GAAP profitability remains positive but compressed, with EBITDA down sequentially and YoY .
Aerospace remains a structural margin lever via ToughWriter mix shift and eventual royalty roll-off; expect defense order timing normalization and easier comps as FY26 progresses .
FY2026 guide is intact; execution on print-engine launches and consumables control are critical catalysts for margin expansion in 2H FY26 .
Restructuring (10% workforce reduction, product rationalization) should underpin OpEx control and PI margin recovery; 40% of $3M savings targeted in FY26 .
Liquidity tightened with revolver reduction; management prioritizing inventory reduction and debt paydown—watch working capital and cash conversion in upcoming quarters .
With no consensus estimates, trading may hinge on qualitative catalysts (product launches, restructuring progress, defense timing) and sequential trend improvement rather than “beat/miss” optics .
Board refresh adds financial acumen; governance supports transformation through the MTEX integration and strategic pivot .

AstroNova, Inc. (ALOT)·Q4 2025 Earnings Summary