Astronics Corporation

Overview and scope

Astronics provides advanced technologies for the global aerospace, defense, and electronics industries. Its products and services include:

• High-performance electrical power generation, distribution, and motion systems
• Lighting and safety systems
• Avionics products and systems certification
• Aircraft structures
• Automated test systems

Principal operations are in the United States, Canada, France, and Germany, with engineering offices in Ukraine and India. The Ukraine office is small and has not experienced staffing or service disruptions due to the Ukraine–Russia conflict.

Segments and offerings

The company reports two segments:

• Aerospace

  • Designs and manufactures products for the global aerospace and defense industry
  • Product lines: lighting and safety systems; electrical power generation and distribution; seat motion systems; aircraft structures; avionics; systems certification; and related products
  • Customers: airframe OEMs, suppliers to OEMs, airlines and other aircraft operators, and components of the U.S. Department of Defense

• Test Systems

  • Designs, develops, manufactures, and maintains automated test systems supporting aerospace/defense, communications, and mass transit, plus training and simulation devices
  • Customers: OEMs, prime government contractors, and other global customers
  • Pursues large, often multi-year projects

Customers and market exposure

• Boeing is a major customer:
  • ~10.4% of 2025 sales
  • ~10.2% of 2024 sales
  • ~11.0% of 2023 sales
• Test Systems serves a global base of OEMs and prime government contractors
• Approximately 15% of 2025 consolidated sales were to U.S. government-related markets
• About 29% of consolidated 2025 sales were to customers outside the United States

Backlog and order pipeline (as of 12/31/2025)

• Consolidated backlog: $674.5 million (vs. $599.2 million at year-end 2024)
  • Aerospace backlog: $600.8 million
  • Test Systems backlog: $73.7 million

Acquisitions and growth initiatives

• Envoy Aerospace, LLC

  • Acquired June 30, 2025
  • Provides FAA Organization Designation Authorization (ODA) services
  • Purchase price: ~ $8.3 million (net of cash acquired and estimated closing adjustments)
  • Payment schedule: $4.5 million at closing; $2.0 million after the first anniversary; $1.8 million after the second anniversary (milestone-based)

• Bühler Motor Aviation (BMA)

  • Acquired October 13, 2025
  • Manufacturer of aircraft seat actuation systems (actuators, electronics, control panels, pneumatic systems, lighting)
  • Purchase price: ~ $18.0 million (net of cash acquired and closing adjustments)
  • Payment: at closing

Financial position and capital structure (as of 12/31/2025)

• Debt and liquidity

  • Total debt outstanding: ~ $343.0 million
  • Revolving Credit Facility: $300.0 million senior secured cash flow-based facility (as of 10/22/2025), replacing the prior $220.0 million asset-based facility
  • Interest on revolver: Term SOFR plus margin (1.25% to 2.125% depending on Total Net Debt Leverage Ratio)

• Convertible notes

  • 2030 Convertible Senior Notes: $165.0 million issued (5.500%); $132.0 million repurchased in Q3 2025; $33.0 million outstanding as of 12/31/2025
  • 2031 Convertible Senior Notes: $225.0 million issued (no interest). Proceeds were used to repurchase part of the 2030 notes and to enter into capped calls
  • If a fundamental change occurs, holders may require cash repurchase; settlement may be all cash or a mix of cash and stock, subject to limitations

• Covenants and compliance

  • The company was in compliance with all debt covenants under its credit facilities as of 12/31/2025

• Profitability history (selected)

  • 2024 net loss: $16.2 million
  • 2023 net loss: $26.4 million
  • 2025: reported net income

• Research and development

  • R&D expenses: $52.1 million in 2024; $53.7 million in 2023 (reclassified from Cost of Products Sold to a separate line item below Gross Profit; all periods adjusted accordingly)

Employees and global operations

• Total employees (as of 12/31/2025): ~2,700 full-time
  • United States: ~2,100
  • International: ~600
• Approximately 150 non-exempt production employees are subject to collective bargaining agreements

Commercial context

The company’s sales mix and backlog reflect activity across long-cycle government/defense programs and commercial aerospace opportunities, with multi-year project dynamics particularly in Test Systems.

Summary

Astronics designs and manufactures aerospace, defense, and electronics technologies across two segments (Aerospace and Test Systems). It serves OEMs, airlines, defense entities, and government programs worldwide, expanded through two 2025 acquisitions (Envoy Aerospace and Bühler Motor Aviation), and maintains a backlog of roughly $674.5 million to support near- and mid-term demand. The company has concentrated exposure to Boeing, a sizable international footprint with engineering offices abroad, and a capital structure that includes convertible notes and a $300 million revolving facility. It reported net losses in 2024 and 2023 and reported net income in 2025, and continues to invest in R&D and its business.