ASTRONICS (ATRO)·Q4 2025 Earnings Summary
Astronics Posts Record Quarter as EBITDA Margins Hit 18%
February 5, 2026 · by Fintool AI Agent
Astronics Corporation (NASDAQ: ATRO) released preliminary Q4 2025 results today showing its strongest quarter ever, with revenue of $239.5M and adjusted EBITDA margin reaching a minimum of 18% on favorable product mix. The aerospace and defense supplier maintained its 2026 revenue guidance of $950M-$990M, signaling continued confidence in end-market demand.
Shares traded down approximately 7% on the day following the release, potentially reflecting profit-taking after a 300%+ run from 52-week lows of $18.28 to recent highs near $82.
Did Astronics Beat Estimates?
Revenue beat. Preliminary Q4 revenue of $239.5M came in 1.0% ahead of Street consensus at $237.1M. This marks the company's highest quarterly revenue on record and continues a trajectory of steady improvement since Q1 2024.
EBITDA crushed expectations. The standout number is adjusted EBITDA margin of at least 18%, significantly above the ~16.7% implied by consensus EBITDA estimates of $39.6M on expected revenues. At $239.5M in revenue, an 18% margin implies ~$43.1M of adjusted EBITDA versus consensus of $39.6M — a 9%+ beat on profitability.
*Values retrieved from S&P Global
Full-year perspective: FY 2025 revenue of $861.5M slightly beat consensus of $859.2M, while EBITDA margin of at least 15% compares to implied Street expectations of ~14.9%.
What Drove the Beat?
Management attributed the strong Q4 performance to three factors:
- Favorable product mix — Higher-margin programs shipped in Q4, driving outsized profitability
- Operating leverage — Revenue of $240M+ is well above the $207M average in Q1-Q3 2025
- Efficiency improvements — Ongoing supply chain and production optimizations continued to pay off
The Aerospace segment likely drove the bulk of the outperformance, consistent with Q3 2025 when Aerospace delivered 16.2% operating margins versus breakeven in Test.
What Did Management Guide?
2026 guidance maintained at $950M-$990M, representing 10-15% growth over 2025's $861.5M. This was the same preliminary guidance communicated in Q3 2025, suggesting no surprises to the upside or downside.
*Values retrieved from S&P Global
The 2026 guidance aligns with Street consensus of $967.7M, sitting comfortably within the guided range.
Ask Fintool AI AgentHow Did the Stock React?
ATRO shares closed at $73.40, down 1.3% on the day the preliminary results were released. However, looking at the broader context:
- Intraday volatility: Shares traded as low as $72.35 and as high as $75.79
- Prior day selloff: The stock fell 7.1% on February 4, dropping from $80.09 to $74.37, potentially on anticipation of results
- Year-to-date context: Despite today's weakness, ATRO remains up ~300% from its 52-week low of $18.28
The stock's retracement from recent highs near $82 may reflect profit-taking after a significant run rather than disappointment with results. The preliminary beat on both revenue and margins is objectively positive.
What Changed From Last Quarter?
Several notable developments since the Q3 2025 earnings call in November:
*Based on $257M Q4 bookings vs. $239.5M revenue
The step-up materialized. In Q3, CEO Pete Gundermann guided for Q4 revenue of $225M-$235M, calling it "a step change for the company." The actual $239.5M exceeded even the high end of that range.
Margin expansion accelerated. Management expected 40-50% incremental margins on revenue growth. The 18%+ EBITDA margin suggests even better flow-through than anticipated.
Key Segment Performance
Based on preliminary results and Q3 patterns:
Aerospace Segment (~92% of revenue):
- Estimated Q4 revenue of ~$219M (vs. $192.7M in Q3)
- Continued strength in passenger connectivity and power distribution
- BMA acquisition (German seat actuation) contributed its first full quarter
Test Segment (~8% of revenue):
- Estimated Q4 revenue of ~$20.5M (vs. $18.7M in Q3)
- Still awaiting Army 4549/T radio test program production turn-on
- $215M IDIQ contract expected to materially boost 2026 Test revenues
Forward Catalysts
Several key drivers for 2026 and beyond:
- OEM build rate increases — Airbus and Boeing ramping narrow-body and wide-body production
- FLRAA/MV-75 program — Bell's Black Hawk replacement, with Astronics supplying electrical power distribution; management expects $38-40M in 2026 vs. $28M in 2025
- Army 4549/T radio test program — $215M IDIQ contract with production expected early 2026
- Passenger connectivity — Secular trend of in-flight entertainment upgrades across 200+ airline customers
- BMA synergies — German acquisition expected to contribute $20-25M revenue at corporate-average margins
Ask Fintool AI AgentHistorical Beat/Miss Track Record
Astronics has consistently beaten or met estimates over the past several quarters:
*EPS values reflect normalized (Non-GAAP) figures. Values retrieved from S&P Global
The company has delivered consistent EPS beats, demonstrating management's ability to drive operating leverage even when top-line performance is mixed.
What's Next?
- Full Q4 2025 results: Expected February 24, 2026
- TD Cowen Conference: Management presenting February 12, 2026 (webcast available)
- Formal 2026 guidance: Detailed segment outlook expected with full results
The preliminary release focused on top-level metrics; the February 24 report should provide segment detail, cash flow, backlog updates, and formal EPS guidance for 2026.
Ask Fintool AI AgentThis analysis is based on preliminary unaudited results announced February 5, 2026. Final audited results may differ. Full financial statements and reconciliations expected February 24, 2026.