Astronics (ATRO) CJS Securities 26th Annual "New Ideas for the New Year” Investor Conference summary

Company Overview and Market Position

• Market cap around $2.3 billion, trading near all-time highs, with 85% institutional ownership.

• Operates mainly in aerospace (90%-92% of sales), with 70% exposure to commercial aerospace and 20% to defense/government.

• Unrivaled breadth in in-flight entertainment and connectivity hardware, serving 200+ airlines and major OEMs, with ~90% market share in widebody and 65% in narrowbody aircraft.

• Diversified customer base includes over 280 airlines and major aerospace manufacturers.

• Strong presence in in-seat power, lighting, safety, and flight-critical electrical power, with leadership in aircraft lighting.

Growth Drivers and Financial Outlook

• 2021-2024 saw 18% average annual growth, with 2023 at 28%; 2026 guidance is for 10%-15% revenue growth.

• Revenue recovery is complete, with 2025 preliminary revenue at $924 million and 2026 guidance of $950–$990 million.

• Q4 2025 revenue reached a record $236-239 million, reflecting strong tailwinds.

• Gross margin improved to 30.5% in Q3 2025, with adjusted EBITDA margin at 15.5% and adjusted diluted EPS at $0.49.

• Free cash flow for the first nine months of 2025 was $27.3 million, with $169 million in total liquidity as of November 2025.

Strategic Programs and Diversification

• FLRAA program with Bell is a major defense growth driver, with $40 million expected in 2026 and $1 million per aircraft in content.

• Recent acquisitions of Envoy Aerospace and Bühler Motor Aviation expand certification services and premium seating motion control capabilities.

• Test business expects a significant contract to boost revenue from $70-80 million to $100 million+ in 2026 or 2027.

• Emerging opportunities in drones and eVTOL, with multiple development programs and typical shipset content ranging from $50k to $300k.

• Commercial off-the-shelf solutions position the company for scalable growth in emerging aviation markets.