Astronics (ATRO) TD Cowen 47th Annual Aerospace & Defense Conference summary

Business overview and market positioning

• Focuses 90%–92% on aerospace, with commercial, military, business jet, and test segments; test systems represent 8%–10%.

• Half of business comes from in-flight entertainment and connectivity, serving over 200 airlines and all major OEMs.

• Major product lines include aircraft lighting, flight-critical electrical power, avionics, and test solutions for commercial, military, business, and drone markets.

• Expanded capabilities through acquisitions like Envoy Aerospace and Bühler Motor Aviation, targeting $20–$25M in 2026 revenue from the latter.

• Positioned on high-profile programs such as FLRAA, MQ-25, and eVTOL, with multiple development programs underway.

Financial performance and growth drivers

• Achieved Q3 2025 sales of $830.6M TTM, with preliminary 2025 revenue of $924M and bookings of $950–$990M.

• Q4 revenue reached $230–$240M, establishing a new base for 2026.

• Q3 2025 adjusted EBITDA margin reached 15.5%, with Q4 2025 expected at or above 18% and full-year 2025 at or above 15%.

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

• Backlog remains at record levels, supported by improved supply chain and strong book-and-ship business.

Product and technology trends

• IFEC in-seat power systems power over 2 million seats on 290+ airlines, with ~90% market share in widebody and ~65% in narrowbody aircraft.

• Retrofit business is strong, driven by airlines' need to upgrade in-flight entertainment and power systems every 5–7 years.

• Constant technology churn in connectivity, with adaptability to LEO, KU, and KA satellite systems.

• Anticipates wireless charging as the next evolution in cabin power solutions.

• Acts as a liaison between consumer electronics and airlines to anticipate and integrate new technologies.