Astronics Corporation • 130 Commerce Way • East Aurora, NY • 14052-2164
FOR IMMEDIATE RELEASE
Astronics Corporation Reports
2025 Third Quarter Financial Results
•Third quarter sales increased 3.8% to $211.4 million driven by Aerospace growth of 8.5% to $192.7 million
•Third quarter net loss was $11.1 million, reflecting $32.6 million in refinancing-related charges; adjusted EBITDA1 was $32.7 million, or 15.5% of sales
•Aerospace operating margin was 16.2% and adjusted operating margin1 was 16.7%
•Solid quarterly bookings of $210.4 million and backlog of $646.7 million
•Generated $34.2 million in cash from operations
•Refinancing activities included the issuance of a convertible bond during the third quarter and the initiation of a cash flow revolver subsequent to quarter end
•Expect fourth quarter revenue to be $225 to $235 million, resulting in 2025 revenue expectation of $847 to $857 million
EAST AURORA, NY, November 4, 2025 – Astronics Corporation (Nasdaq: ATRO) (“Astronics” or the “Company”), a leading supplier of advanced technologies and products to the global aerospace, defense, and other mission critical industries, today reported financial results for the three and nine months ended September 27, 2025.
Peter J. Gundermann, Chairman, President and Chief Executive Officer, commented, “We had a solid third quarter, demonstrating continued operational progress to meet strong customer demand with revenue stabilizing above $200 million per quarter. Strong sales supported operating margin expansion, reflecting both meaningful operating leverage on increased volume and the impact of our profitability initiatives. Recent refinancing actions provide us with enhanced financial flexibility and greater liquidity to support our business while minimizing potential dilution in the future. The refinancing combined with the market demand we are experiencing sets us up for a strong finish to 2025 and an exciting 2026.”
1 Adjusted EBITDA, adjusted EBITDA margin, and adjusted segment operating margin are Non-GAAP financial measures. Please see the reconciliation of GAAP to non-GAAP financial measures in the tables that accompany this release.
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
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Third Quarter Results | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| ($ in thousands) | September 27, 2025 | | September 28, 2024 | | % Change | | September 27, 2025 | | September 28, 2024 | | % Change |
| | | | | | | | | | | |
| Sales | $ | 211,447 | | | $ | 203,698 | | | 3.8 | % | | $ | 622,061 | | | $ | 586,886 | | | 6.0 | % |
| Gross Profit | $ | 64,511 | | | $ | 55,224 | | | 16.8 | % | | $ | 178,187 | | | $ | 158,306 | | | 12.6 | % |
| Gross Margin | 30.5 | % | | 27.1 | % | | | | 28.6 | % | | 27.0 | % | | |
| Income from Operations | $ | 23,055 | | | $ | 8,374 | | | 175.3 | % | | $ | 40,950 | | | $ | 17,590 | | | 132.8 | % |
| Operating Margin % | 10.9 | % | | 4.1 | % | | | | 6.6 | % | | 3.0 | % | | |
| | | | | | | | | | | |
| Loss on Settlement of Debt | $ | 32,644 | | | $ | 6,987 | | | | | $ | 32,644 | | | $ | 6,987 | | | |
| Net Loss | $ | (11,098) | | | $ | (11,738) | | | 5.5 | % | | $ | (256) | | | $ | (13,383) | | | 98.1 | % |
| Net Loss % | (5.2) | % | | (5.8) | % | | | | — | % | | (2.3) | % | | |
| | | | | | | | | | | |
Adjusted Operating Income2 | $ | 25,931 | | | $ | 19,589 | | | 32.4 | % | | $ | 66,833 | | | $ | 37,701 | | | 77.3 | % |
Adjusted Operating Margin %2 | 12.3 | % | | 9.6 | % | | | | 10.7 | % | | 6.4 | % | | |
| Adjusted Net Income2 | $ | 19,404 | | | $ | 12,163 | | | 59.5 | % | | $ | 50,118 | | | $ | 21,287 | | | 135.4 | % |
Adjusted EBITDA2 | $ | 32,718 | | | $ | 27,059 | | | 20.9 | % | | $ | 88,865 | | | $ | 64,927 | | | 36.9 | % |
Adjusted EBITDA Margin %2 | 15.5 | % | | 13.3 | % | | | | 14.3 | % | | 11.1 | % | | |
Third Quarter 2025 Results (compared with the prior-year period, unless noted otherwise)
Growth in sales was driven by the Aerospace segment’s continued strength in demand primarily from the Commercial Transport market. Aerospace sales increased $15.2 million, or 8.5%, which more than offset a $7.4 million decline in Test Systems sales.
Gross profit increased $9.3 million to $64.5 million, or 30.5% of sales, an improvement over gross margin of 27.1% in the comparator quarter, primarily attributable to higher volume, pricing initiatives and improved productivity. Third quarter gross profit in the prior year was negatively impacted by a $3.5 million atypical warranty reserve.
Tariff expense in the current quarter was approximately $4 million. Based on current tariff rates in effect today, Astronics believes the potential incremental impact to annual costs of materials related to direct and known indirect effects is in the range of $15 million to $20 million before mitigation and assuming no exemptions for aerospace-related products. The Company believes that certain actions including pass-through pricing, supply chain restructuring, duty drawbacks, the implementation of free trade zones, and other operational adjustments will significantly reduce the anticipated impacts of tariffs over time. The Company expects that tariff rates will remain in flux in the near future and will refine its strategy as the situation becomes more stable.
In the third quarter of 2025, selling, general and administrative expenses (“SG&A”) decreased $3.1 million. Litigation-related expenses were down $4.3 million, somewhat offset by $1.2 million in higher legal and accounting expenses related to acquisitions. R&D was down $2.3 million reflecting the timing of projects. The prior-year period was negatively impacted by $1.3 million in reserves related to the bankruptcy filing of an Aerospace customer.
2 Adjusted gross profit, adjusted operating income, adjusted operating margin, adjusted segment operating profit, adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted diluted earnings per share (“EPS”) are Non-GAAP financial measures. Please see the reconciliation of GAAP to non-GAAP financial measures in the tables that accompany this release.
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
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Operating margin expansion of 680 basis points and adjusted operating margin2 expansion of 270 basis points was the result of leverage on higher volume, improved productivity in the Aerospace segment, coupled with savings from the recent Test Systems cost rationalization activities.
A $32.6 million Loss on Settlement of Debt was the result of certain costs incurred related to the partial repurchase of convertible notes due 2030 discussed in the Balance Sheet and Liquidity section below, compared to a Loss on Settlement of Debt of $7.0 million in the prior year.
Interest expense was down $3.3 million, or 53.0%, on lower rates following 2024 refinancing activities. Tax benefit in the quarter was $1.2 million compared with a tax expense of $6.6 million in the prior-year period, mostly as a result of a valuation allowance reversal associated with research and development costs that are expected to be expensed for tax purposes in the current year under the One Big Beautiful Bill Act.
Consolidated net loss of $0.31 per diluted share improved from a net loss of $0.34 per diluted share in the prior-year period from the strength in sales and profitability that more than offset the incremental loss on settlement of debt. Adjusted net income2 per share increased $0.15 per diluted share, or 44%, to $0.49 per diluted share, demonstrating the impact of stronger profitability and lower interest expense.
Consolidated adjusted EBITDA2 increased 20.9% to $32.7 million and was 15.5% of consolidated sales. The Company is targeting high teen to 20% or better adjusted EBITDA2 margins.
Bookings of $210.4 million in the quarter resulted in a book-to-bill ratio of 1.00:1. For the trailing twelve months, bookings totaled $863.0 million and the book-to-bill ratio was 1.04:1. Backlog at the end of the quarter was $646.7 million.
Aerospace Segment Review (compared with the prior-year period, unless noted otherwise)
Aerospace segment sales of $192.7 million increased $15.2 million, or 8.5%. Sales in the Commercial Transport market increased $15.4 million, or 11.5%. Growth was primarily related to increased demand by airlines for cabin power, seat motion and system certification products and services. Military Aircraft sales increased $5.9 million, or 27.1%, to $27.6 million, driven by increased demand for lighting and safety products. General Aviation sales decreased $4.2 million, or 23.0%, to $13.9 million due to lower airframe power and inflight entertainment & connectivity (“IFEC”) product sales to the VVIP market due to the timing of programs. Other sales decreased $1.9 million as the Company has wound down its non-core contract manufacturing arrangements.
Aerospace segment operating profit of $31.2 million, or 16.2% of sales, improved over the prior-year period reflecting the leverage gained on higher volume, pricing initiatives, and improving production efficiencies, combined with a $4.4 million decrease in litigation-related expenses. The prior year was impacted by a $3.5 million atypical warranty reserve and a non-cash reserve associated with a customer bankruptcy of $2.2 million. Adjusted Aerospace operating profit2 increased 27.1% to $32.1 million, or 16.7% of sales, a 240-basis point expansion over the comparator quarter.
Aerospace bookings were $191.9 million for a book-to-bill ratio of 1.00:1. Backlog for the Aerospace segment was $572.5 million at quarter end.
Mr. Gundermann commented, “Our Aerospace business had a strong third quarter achieving a 16.2% operating margin, well surpassing our near-term margin target and a testament to its potential. Sales also reflected the consistent improvement in demand we are seeing. We believe the tailwinds driving our Aerospace business will accelerate as we close out 2025 and continue into 2026 and beyond.”
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
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Test Systems Segment Review (compared with the prior-year period, unless noted otherwise)
Test Systems segment sales of $18.7 million were down $7.4 million from the comparator quarter in 2024. The decrease was driven by lower sales of radio test sets in general as full rate production for the U.S. Army program has not yet begun.
Test Systems segment operating profit was near break-even in both periods. Test Systems continues to be negatively affected by mix and under absorption of fixed costs at current volume levels.
Bookings for the Test Systems segment in the quarter were $18.5 million. The book-to-bill ratio was 0.99:1 for the quarter. Backlog for the Test Systems segment was $74.3 million at quarter end.
Mr. Gundermann commented, “Our Test business had a break-even operating profit on relatively low sales, which demonstrates the significant cost-cutting initiatives we have implemented across the business. We expect it will become profitable once our radio test program begins for the U.S. Army. We expect to receive production orders near year-end or shortly thereafter.”
Balance Sheet and Liquidity
Cash provided by operations in the third quarter of 2025 was $34.2 million, reflecting higher cash earnings and lower working capital requirements. Capital expenditures in the quarter were $13.2 million.
Long-term debt, net of cash, increased $164.2 million to $314.4 million at quarter end compared with $150.2 million at the end of 2024. On September 16, 2025, the Company issued $225 million aggregate principal amount of 0% Convertible Senior Notes for net proceeds of approximately $217 million. The Notes will mature on January 15, 2031, unless earlier converted, redeemed or repurchased. The Company will settle the principal in cash and has the flexibility to settle any premium in stock, cash or a combination of both. The conversion price of the 0% Convertible Senior Notes is $54.87; however, as the Company also purchased capped call options, there is no potential dilution unless the stock price exceeds the upper strike price of $83.41.
The Company used net proceeds from the offering in part to repurchase approximately $132.0 million, or 80%, of the aggregate principal amount of its 5.500% Convertible Senior Notes due 2030 and pay the $26.9 million cost for the capped calls. Subsequent to the repurchase, there was $33 million of principal outstanding on the Notes due 2030. Borrowings of $85.0 million under the ABL Revolving Credit Facility and $11.0 million in cash provided the balance of payment for the repurchase of the Notes due 2030. In addition to the costs that were required to be recorded as an expense in the income statement, as discussed above, other repurchase-related costs, including the cost of the capped call, were required to be classified as a reduction of shareholders’ equity. As a result, shareholders’ equity has decreased by $152.4 million.
The refinancing resulted in the elimination of approximately 5.8 million shares of potential dilution. Approximately 1.44 million shares of potential dilution remain under the outstanding 5.500% Convertible Senior Notes due 2030.
Subsequent to the end of the quarter, on October 22, 2025, the Company entered into a new $300 million senior secured, cash flow-based revolving credit facility (the “New Revolver”). The New Revolver matures in October 2030 and replaces the previous ABL Revolving Credit Facility that was scheduled to mature in 2027. The New Revolver, which enhances financial flexibility to support the Company’s growth initiatives, also has an accordion feature, which allows the Company to request incremental commitments of up to $100 million plus additional incremental amounts so long as maximum leverage requirements are met.
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
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The New Revolver will accrue interest at a floating rate equal to SOFR plus the applicable margin ranging from 125 basis points to 213 basis points based on leverage.
The Company had available liquidity of $111.9 million at the end of the third quarter.
Nancy L. Hedges, Chief Financial Officer, commented, “Our execution on the financing events to repurchase 80% of the $165 million of 5.5% Notes due 2030 was a proactive move to both eliminate future potential dilution of almost 5.8 million shares as well as measurably reduce the future cost of conversion. The continued appreciation in our stock price above the $22.89 conversion price was making the cost of future cash settlement very expensive. Given the tailwinds we see in the aerospace and defense industries and the opportunities to meaningfully grow revenue and earnings, we felt this was an opportune time to execute the refinancing and take advantage of current capital markets trends which allowed us to issue a 0% convertible bond. While the accounting treatment was complex, and our balance sheet now has more debt and less equity, the end result is less dilution, lower cost of conversion, lower cost of debt and greater financial flexibility. We believe this was an action that benefits our shareholders both now and in the years to come.”
Updated 2025 Outlook
Astronics expects fourth quarter sales to be in the range of $225 to $235 million, a significant step up from the prior three quarters of the year. Total revenue for the year is expected to be in the range of $847 to $857 million, which would establish a record annual sales level for the Company. The midpoint of the revised range would be a 7.2% increase over 2024 sales.
Backlog at the end of the third quarter was $646.7 million, of which approximately 74% is expected to be recognized as revenue over the next twelve months. Planned capital expenditures in 2025 are expected to be in the range of $40 million to $50 million subject to the timing of spending related to a facility consolidation and build-out for its Seattle operations.
Mr. Gundermann commented, “We expect to have a strong finish to 2025, while establishing a new sales record in the fourth quarter. We anticipate that market conditions will stay strong, and our revenue level will stay elevated through 2026. While we are not ready to issue guidance at this time, our early look suggests we should see low double-digit growth for next year. We believe 2026 will be a very good year for Astronics.”
Third Quarter 2025 Webcast and Conference Call
The Company will host a teleconference today at 4:45 p.m. ET. During the teleconference, management will review the financial and operating results for the period and discuss Astronics’ corporate strategy and outlook. A question-and-answer session will follow.
The Astronics conference call can be accessed by calling (201) 493-6784. The listen-only audio webcast can be monitored at investors.astronics.com. To listen to the archived call, dial
(412) 317-6671 and enter replay pin number 13755702. The telephonic replay will be available from 8:00 p.m. on the day of the call through Tuesday, November 18, 2025. The webcast replay can be accessed via the investor relations section of the Company’s website where a transcript will also be posted once available.
About Astronics Corporation
Astronics Corporation (Nasdaq: ATRO) serves the world’s aerospace, defense, and other mission-critical industries with proven innovative technology solutions. Astronics works side-by-side with customers, integrating its array of power, connectivity, lighting, structures, interiors, and test technologies to solve complex challenges. For over 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
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manufacturers, airlines, military branches, completion centers, and Fortune 500 companies rely on the collaborative spirit and innovation of Astronics. The Company’s strategy is to increase its value by developing technologies and capabilities that provide innovative solutions to its targeted markets.
Safe Harbor Statement
This news release contains forward-looking statements as defined by the Securities Exchange Act of 1934. One can identify these forward-looking statements by the use of the words “expect,” “anticipate,” “plan,” “may,” “will,” “estimate,” “feeling” or other similar expressions and include all statements with regard to the Company’s fourth quarter and full year 2025 outlook, the amount of capital expenditures for 2025, the amount of the impact of tariffs on costs for materials to the Company and level of mitigation potential with respect thereto, the amount of backlog to be recognized as revenue over the next twelve months, the strength and length of time associated with tailwinds for the Aerospace segment, the achievement of profitability in the Test segment, elevated revenue in 2026 that approaches double digits, and statements regarding the strategy of the Company and its outlook. Forward-looking statements also include all statements related to achieving any revenue or profitability expectations, expectations of continued growth, the level of liquidity, the level of cash generation, the level of demand by customers and markets and the amount of expected capital expenditures. Because such statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. Important factors that could cause actual results to differ materially from what may be stated here include the trend in growth with passenger power and connectivity on airplanes, the state of the aerospace and defense industries, the market acceptance of newly developed products, internal production capabilities, the timing of orders received, the status of customer certification processes and delivery schedules, the demand for and market acceptance of new or existing aircraft which contain the Company’s products, the impact of regulatory activity and public scrutiny on production rates of a major U.S. aircraft manufacturer, the need for new and advanced test equipment, customer preferences and relationships, the effectiveness of the Company’s supply chain, and other factors which are described in filings by Astronics with the Securities and Exchange Commission. Except as required by applicable law, the Company assumes no obligation to update forward-looking information in this news release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.
Use of Non-GAAP Financial Metrics and Additional Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Astronics provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. Astronics management uses these measures for reviewing the financial results of Astronics for budget planning purposes and for making operational and financial decisions. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, help investors evaluate Astronics core operating and financial performance and business trends consistent with how management evaluates such performance and trends.
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
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FINANCIAL TABLES FOLLOW
| | | | | | | | |
| For more information, contact: | | |
| | |
| Company: | | Investor Relations: |
| Nancy L. Hedges, Chief Financial Officer | | Deborah K. Pawlowski, Alliance Advisors LLC |
| Phone: (716) 805-1599 | | Phone: (716) 843-3908 |
| Email: nancy.hedges@astronics.com | | Email: dpawlowski@allianceadvisors.com |
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
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| | | | | | | | | | | | | | | | | | | | | | | |
ASTRONICS CORPORATION |
| CONSOLIDATED STATEMENT OF OPERATIONS DATA |
| (Unaudited, $ in thousands except per share amounts) |
| | | |
| Three Months Ended | | Nine Months Ended |
| 9/27/2025 | | 9/28/2024 | | 9/27/2025 | | 9/28/2024 |
Sales | $ | 211,447 | | | $ | 203,698 | | | $ | 622,061 | | | $ | 586,886 | |
| Cost of products sold | 146,936 | | | 148,474 | | | 443,874 | | | 428,580 | |
Gross profit3 | 64,511 | | | 55,224 | | | 178,187 | | | 158,306 | |
Gross margin | 30.5 | % | | 27.1 | % | | 28.6 | % | | 27.0 | % |
| | | | | | | |
| Research and development expenses | 10,210 | | | 12,481 | | | 32,849 | | | 40,018 | |
| Selling, general and administrative | 31,246 | | | 34,369 | | | 104,388 | | | 100,698 | |
SG&A % of sales | 14.8 | % | | 16.9 | % | | 16.8 | % | | 17.2 | % |
| | | | | | | |
| Income from operations | 23,055 | | | 8,374 | | | 40,950 | | | 17,590 | |
Operating margin | 10.9 | % | | 4.1 | % | | 6.6 | % | | 3.0 | % |
| | | | | | | |
| | | | | | | |
| Loss on settlement of debt | 32,644 | | | 6,987 | | | 32,644 | | | 6,987 | |
| Other (income) expense | (185) | | | 343 | | | (562) | | | 1,214 | |
| Interest expense, net | 2,920 | | | 6,217 | | | 9,167 | | | 17,832 | |
| Loss before tax | (12,324) | | | (5,173) | | | (299) | | | (8,443) | |
| Income tax (benefit) expense | (1,226) | | | 6,565 | | | (43) | | | 4,940 | |
| Net loss | $ | (11,098) | | | $ | (11,738) | | | $ | (256) | | | $ | (13,383) | |
| Net loss % of sales | (5.2) | % | | (5.8) | % | | — | % | | (2.3) | % |
| | | | | | | |
| Basic loss per share: | $ | (0.31) | | | $ | (0.34) | | | $ | (0.01) | | | $ | (0.38) | |
| Diluted loss per share:4 | $ | (0.31) | | | $ | (0.34) | | | $ | (0.01) | | | $ | (0.38) | |
| | | | | | | |
Weighted average diluted shares outstanding (in thousands) | 35,423 | | | 35,011 | | | 35,372 | | | 34,961 | |
3 During the first quarter of 2025, the Company changed its financial statement presentation of research and development costs. These costs were previously included within Cost of Products Sold and were a factor in arriving at Gross Profit. The prior period amounts for Cost of Product Sold and Gross Profit have been adjusted from their original presentation for comparability purposes.
4 All outstanding stock options, unvested restricted stock and shares potentially issuable upon conversion of the Company’s convertible notes have been excluded from the computation of diluted earnings per share because the effect of their inclusion would be anti-dilutive.
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
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| | | | | | | | | | | |
ASTRONICS CORPORATION |
| CONSOLIDATED BALANCE SHEETS |
($ in thousands) |
| (unaudited) | | |
| 9/27/2025 | | 12/31/2024 |
| ASSETS | | | |
Cash and cash equivalents | $ | 13,479 | | | $ | 9,285 | |
| Restricted cash | 6,101 | | | 9,143 | |
| Accounts receivable, net of allowance for estimated credit losses | 188,630 | | | 191,446 | |
Inventories | 197,290 | | | 199,741 | |
| Prepaid expenses and other current assets | 27,149 | | | 16,557 | |
| | | |
| Total current assets | 432,649 | | | 426,172 | |
| Property, plant and equipment, net of accumulated depreciation | 96,635 | | | 80,687 | |
| Operating right-of-use assets | 33,769 | | | 23,609 | |
| Other assets | 8,297 | | | 7,763 | |
| Intangible assets, net of accumulated amortization | 51,083 | | | 52,477 | |
| Goodwill | 59,760 | | | 58,056 | |
| Total assets | $ | 682,193 | | | $ | 648,764 | |
| | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | |
| Current liabilities: | | | |
| | | |
| Accounts payable | $ | 51,683 | | | $ | 42,960 | |
| Current operating lease liabilities | 6,019 | | | 4,697 | |
| Accrued expenses and other current liabilities | 66,597 | | | 81,004 | |
| Customer advances and deferred revenue | 26,709 | | | 27,491 | |
| | | |
| Total current liabilities | 151,008 | | | 156,152 | |
| Long-term debt | 334,019 | | | 168,669 | |
| Long-term operating lease liabilities | 39,349 | | | 20,508 | |
| Other liabilities | 48,909 | | | 47,338 | |
| Total liabilities | 573,285 | | | 392,667 | |
| Shareholders’ equity: | | | |
| Common stock | 381 | | | 380 | |
| Accumulated other comprehensive loss | (2,020) | | | (3,863) | |
| Other shareholders’ equity | 110,547 | | | 259,580 | |
| Total shareholders’ equity | 108,908 | | | 256,097 | |
| Total liabilities and shareholders’ equity | $ | 682,193 | | | $ | 648,764 | |
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November 4, 2025
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| | | | | | | | | | | |
| ASTRONICS CORPORATION |
| CONSOLIDATED CASH FLOWS DATA |
| | | |
| Nine Months Ended |
| (Unaudited, $ in thousands) | 9/27/2025 | | 9/28/2024 |
| Cash flows from operating activities: | | | |
| Net loss | $ | (256) | | | $ | (13,383) | |
| Adjustments to reconcile net loss to cash from operating activities: | | | |
| Non-cash items: | | | |
| Depreciation and amortization | 16,129 | | | 18,572 | |
| Amortization of deferred financing fees | 1,805 | | | 2,711 | |
| Provisions for non-cash losses on inventory and receivables | 6,062 | | | 8,023 | |
| Equity-based compensation expense | 5,341 | | | 6,414 | |
| Deferred tax benefit | (1,125) | | | — | |
| Loss on settlement of debt | 32,644 | | | 6,987 | |
| | | |
| | | |
| Operating lease non-cash expense | 4,659 | | | 3,869 | |
| Simplification initiative-related non-cash charges | 6,229 | | | — | |
| Non-cash 401K contribution and quarterly bonus accrual | — | | | 3,454 | |
| Non-cash annual stock bonus accrual | — | | | 1,448 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| Other | (756) | | | 2,899 | |
| Cash flows from changes in operating assets and liabilities: | | | |
| Accounts receivable | 5,190 | | | (22,712) | |
| Inventories | (7,140) | | | (19,829) | |
| Accounts payable | 8,271 | | | (3,304) | |
| Accrued expenses | (14,719) | | | 13,517 | |
| Income taxes | (11,513) | | | 798 | |
| Operating lease liabilities | (3,125) | | | (3,777) | |
| Tenant improvement allowance refund | 3,157 | | | — | |
| Customer advance payments and deferred revenue | (2,317) | | | (2,919) | |
| Supplemental retirement plan liabilities | (539) | | | (309) | |
| Other assets and liabilities | (825) | | | 1,690 | |
| Net cash provided by operating activities | 47,172 | | | 4,149 | |
| Cash flows from investing activities: | | | |
| | | |
| Capital expenditures | (19,860) | | | (5,244) | |
| | | |
| Acquisition of business, net of cash acquired | (4,617) | | | — | |
| | | |
| Net cash used by investing activities | (24,477) | | | (5,244) | |
| Cash flows from financing activities: | | | |
| Proceeds from long-term debt | 86,143 | | | 195,978 | |
| Principal payments on long-term debt | (11,143) | | | (187,498) | |
| Proceeds from issuance of convertible debt | 225,000 | | | — | |
| Partial repurchase of 2030 notes | (285,752) | | | — | |
| Payments for capped call transactions | (26,888) | | | — | |
| Financing-related costs | (8,127) | | | (9,073) | |
| Stock award activity | (1,730) | | | (3,219) | |
| | | |
| Other | (109) | | | (96) | |
| | | |
| | | |
| | | |
| | | |
| Net cash used by financing activities | (22,606) | | | (3,908) | |
| Effect of exchange rates on cash | 1,063 | | | 54 | |
| Increase (decrease) in cash and cash equivalents and restricted cash | 1,152 | | | (4,949) | |
| Cash and cash equivalents and restricted cash at beginning of period | 18,428 | | | 11,313 | |
| Cash and cash equivalents and restricted cash at end of period | $ | 19,580 | | | $ | 6,364 | |
| Supplemental disclosure of cash flow information | | | |
| Non-cash investing activities: | | | |
| Capital expenditures in accounts payable | $ | 2,796 | | | $ | — | |
| Interest paid | $ | 7,593 | | | $ | 15,261 | |
| Income taxes refunded, net of payments | $ | 12,636 | | | $ | 3,975 | |
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
Page 11
| | | | | | | | | | | | | | | | | | | | | | | |
| ASTRONICS CORPORATION |
| SEGMENT SALES AND PROFIT |
| (Unaudited, $ in thousands) |
| | |
| Three Months Ended | | Nine Months Ended |
| 9/27/2025 | | 9/28/2024 | | 9/27/2025 | | 9/28/2024 |
| Sales | | | | | | | |
| Aerospace | $ | 192,725 | | | $ | 177,564 | | | $ | 577,760 | | | $ | 518,187 | |
| Less inter-segment | — | | | (10) | | | (34) | | | (52) | |
| Total Aerospace | 192,725 | | | 177,554 | | | 577,726 | | | 518,135 | |
| | | | | | | |
| Test Systems | 18,752 | | | 26,183 | | | 44,685 | | | 68,790 | |
| Less inter-segment | (30) | | | (39) | | | (350) | | | (39) | |
| Total Test Systems | 18,722 | | | 26,144 | | | 44,335 | | | 68,751 | |
| | | | | | | |
| Total consolidated sales | 211,447 | | | 203,698 | | | 622,061 | | | 586,886 | |
| | | | | | | |
| Segment gross profit and margins5 | | | | | | | |
| Aerospace | 60,462 | | | 49,817 | | | 173,836 | | | 148,217 | |
| 31.4 | % | | 28.1 | % | | 30.1 | % | | 28.6 | % |
| Test Systems | 4,049 | | | 5,407 | | | 4,351 | | | 10,089 | |
| 21.6 | % | | 20.7 | % | | 9.8 | % | | 14.7 | % |
| Total gross profit | 64,511 | | | 55,224 | | | 178,187 | | | 158,306 | |
| 30.5 | % | | 27.1 | % | | 28.6 | % | | 27.0 | % |
| Segment operating profit and margins | | | | | | | |
| Aerospace | 31,167 | | | 14,251 | | | 71,470 | | | 45,628 | |
| 16.2 | % | | 8.0 | % | | 12.4 | % | | 8.8 | % |
| Test Systems | (14) | | | (13) | | | (8,947) | | | (8,428) | |
| (0.1) | % | | — | % | | (20.2) | % | | (12.3) | % |
| Total segment operating profit | 31,153 | | | 14,238 | | | 62,523 | | | 37,200 | |
| | | | | | | |
| | | | | | | |
| Loss on settlement of debt | 32,644 | | | 6,987 | | | 32,644 | | | 6,987 | |
| Interest expense | 2,920 | | | 6,217 | | | 9,167 | | | 17,832 | |
| Corporate expenses and other | 7,913 | | | 6,207 | | | 21,011 | | | 20,824 | |
| Loss before taxes | $ | (12,324) | | | $ | (5,173) | | | $ | (299) | | | $ | (8,443) | |
5 During the first quarter of 2025, the Company changed its financial statement presentation of research and development costs. These costs were previously included within Cost of Products Sold and were a factor in arriving at Gross Profit. The prior period amounts for Cost of Product Sold and Gross Profit have been adjusted from their original presentation for comparability purposes.
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
Page 12
| | | | | | | | | | | | | | | | | | | | | | | | | | |
ASTRONICS CORPORATION |
| SALES BY MARKET |
(Unaudited, $ in thousands) |
| | | | |
| Three Months Ended | | Nine Months Ended | 2025 YTD |
| 9/27/2025 | 9/28/2024 | % Change | | 9/27/2025 | 9/28/2024 | % Change | % of Sales |
| Aerospace Segment | | | | | | | | |
Commercial Transport | $ | 149,209 | | $ | 133,850 | | 11.5 | % | | $ | 432,324 | | $ | 383,679 | | 12.7 | % | 69.6 | % |
Military Aircraft | 27,554 | | 21,685 | | 27.1 | % | | 88,250 | | 63,545 | | 38.9 | % | 14.2 | % |
General Aviation | 13,919 | | 18,077 | | (23.0) | % | | 47,532 | | 56,643 | | (16.1) | % | 7.6 | % |
Other | 2,043 | | 3,942 | | (48.2) | % | | 9,620 | | 14,268 | | (32.6) | % | 1.5 | % |
| Aerospace Total | 192,725 | | 177,554 | | 8.5 | % | | 577,726 | | 518,135 | | 11.5 | % | 92.9 | % |
| | | | | | | | |
| Test Systems Segment | | | | | | | | |
Government & Defense | 18,722 | | 26,144 | | (28.4) | % | | 44,335 | | 68,751 | | (35.5) | % | 7.1 | % |
| | | | | | | | |
| Total Sales | $ | 211,447 | | $ | 203,698 | | 3.8 | % | | $ | 622,061 | | $ | 586,886 | | 6.0 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| SALES BY PRODUCT LINE |
| (Unaudited, $ in thousands) |
| | | | |
| Three Months Ended | | Nine Months Ended | 2025 YTD |
| 9/27/2025 | 9/28/2024 | % Change | | 9/27/2025 | 9/28/2024 | % Change | % of Sales |
| Aerospace Segment | | | | | | | | |
Electrical Power & Motion | $ | 101,295 | | $ | 90,467 | | 12.0 | % | | $ | 296,541 | | $ | 263,919 | | 12.4 | % | 47.8 | % |
Lighting & Safety | 51,654 | | 46,921 | | 10.1 | % | | 154,324 | | 135,162 | | 14.2 | % | 24.8 | % |
Avionics | 26,168 | | 29,151 | | (10.2) | % | | 91,452 | | 83,716 | | 9.2 | % | 14.7 | % |
Systems Certification | 7,938 | | 4,460 | | 78.0 | % | | 15,842 | | 12,272 | | 29.1 | % | 2.5 | % |
Structures | 3,627 | | 2,613 | | 38.8 | % | | 9,947 | | 8,798 | | 13.1 | % | 1.6 | % |
Other | 2,043 | | 3,942 | | (48.2) | % | | 9,620 | | 14,268 | | (32.6) | % | 1.5 | % |
| Aerospace Total | 192,725 | | 177,554 | | 8.5 | % | | 577,726 | | 518,135 | | 11.5 | % | 92.9 | % |
| | | | | | | | |
Test Systems Segment | 18,722 | | 26,144 | | (28.4) | % | | 44,335 | | 68,751 | | (35.5) | % | 7.1 | % |
| | | | | | | | |
| Total Sales | $ | 211,447 | | $ | 203,698 | | 3.8 | % | | $ | 622,061 | | $ | 586,886 | | 6.0 | % | |
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
Page 13
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ASTRONICS CORPORATION |
ORDER AND BACKLOG TREND |
(Unaudited, $ in thousands) |
| | | | | | | | | |
| Q4 2024 | | Q1 2025 | | Q2 2025 | | Q3 2025 | | Trailing Twelve Months |
| 12/31/2024 | | 3/29/2025 | | 6/28/2025 | | 9/27/2025 | | 9/27/2025 |
| Sales | | | | | | | | | |
| Aerospace | $ | 188,549 | | | $ | 191,375 | | | $ | 193,626 | | | $ | 192,725 | | | $ | 766,275 | |
| Test Systems | 19,991 | | | 14,561 | | | 11,052 | | | 18,722 | | | 64,326 | |
| Total Sales | $ | 208,540 | | | $ | 205,936 | | | $ | 204,678 | | | $ | 211,447 | | | $ | 830,601 | |
| | | | | | | | | |
| Bookings | | | | | | | | | |
| Aerospace | $ | 182,474 | | | $ | 267,715 | | | $ | 150,636 | | | $ | 191,859 | | | $ | 792,684 | |
| Test Systems | 13,430 | | | 12,011 | | | 26,390 | | | 18,532 | | | 70,363 | |
| Total Bookings | $ | 195,904 | | | $ | 279,726 | | | $ | 177,026 | | | $ | 210,391 | | | $ | 863,047 | |
| | | | | | | | | |
| Backlog6 | | | | | | | | | |
| Aerospace | $ | 537,563 | | | $ | 613,903 | | | $ | 570,913 | | | $ | 572,459 | | | |
| Test Systems | 61,666 | | | 59,116 | | | 74,454 | | | 74,264 | | | |
| Total Backlog | $ | 599,229 | | | $ | 673,019 | | | $ | 645,367 | | | $ | 646,723 | | | N/A |
| | | | | | | | | |
| Book:Bill Ratio | | | | | | | | | |
| Aerospace | 0.97 | | 1.40 | | 0.78 | | 1.00 | | 1.03 |
| Test Systems | 0.67 | | 0.82 | | 2.39 | | 0.99 | | 1.09 |
| Total Book:Bill | 0.94 | | 1.36 | | 0.86 | | 1.00 | | 1.04 |
| | | | | | | | | |
6 Aerospace backlog of approximately $2.4 million was added in the third quarter of 2025 above related to the acquisition of Envoy Aerospace.
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
Page 14
| | | | | | | | | | | | | | | | | | | | | | | |
| ASTRONICS CORPORATION |
| RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
| (Unaudited, $ in thousands) |
| | | | | | | |
| Consolidated |
| Three Months Ended | | Nine Months Ended |
| 9/27/2025 | | 9/28/2024 | | 9/27/2025 | | 9/28/2024 |
| Net loss | $ | (11,098) | | | $ | (11,738) | | | $ | (256) | | | $ | (13,383) | |
| Add back (deduct): | | | | | | | |
| Interest expense | 2,920 | | | 6,217 | | | 9,167 | | | 17,832 | |
| Income tax (benefit) expense | (1,226) | | | 6,565 | | | (43) | | | 4,940 | |
| Depreciation and amortization expense | 5,163 | | | 6,041 | | | 16,129 | | | 18,572 | |
| Equity-based compensation expense | 1,439 | | | 1,772 | | | 5,341 | | | 6,414 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Non-cash 401K contribution and quarterly bonus accrual | — | | | — | | | — | | | 3,454 | |
| Simplification and restructuring initiatives | 359 | | | 259 | | | 6,867 | | | 1,033 | |
| Legal reserve, settlements and recoveries | — | | | (332) | | | 9,732 | | | (332) | |
| | | | | | | |
| | | | | | | |
| Litigation-related legal expenses | 1,270 | | | 5,558 | | | 6,998 | | | 13,680 | |
| Acquisition-related expenses | 1,247 | | | — | | | 1,247 | | | — | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Loss on settlement of debt | 32,644 | | | 6,987 | | | 32,644 | | | 6,987 | |
| Non-cash reserves for customer bankruptcy | — | | | 2,203 | | | — | | | 2,203 | |
| Warranty reserve | — | | | 3,527 | | | 1,039 | | | 3,527 | |
| | | | | | | |
| Adjusted EBITDA7 | $ | 32,718 | | | $ | 27,059 | | | $ | 88,865 | | | $ | 64,927 | |
| | | | | | | |
| Sales | $ | 211,447 | | | $ | 203,698 | | | $ | 622,061 | | | $ | 586,886 | |
| Adjusted EBITDA margin % | 15.5 | % | | 13.3 | % | | 14.3 | % | | 11.1 | % |
Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by sales. Adjusted EBITDA and Adjusted EBITDA Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company’s financial statements.
7 In the first quarter 2024, it was assumed that annual incentive compensation would be paid in stock, and thus such amount ($1.4 million) was presented as an addback for Adjusted EBITDA purposes. In the fourth quarter of 2024, it was concluded that all annual incentive compensation amounts would be paid in cash, and thus the addback for the full year 2024 was eliminated. For comparative purposes, the addback was retrospectively removed from the calculation of Adjusted EBITDA for the nine months ended September 28, 2024.
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
Page 15
| | | | | | | | | | | | | | | | | | | | | | | |
ASTRONICS CORPORATION |
| RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME |
| (Unaudited, $ in thousands) |
| | | | | | | |
| Consolidated |
| Three Months Ended | | Nine Months Ended |
| 9/27/2025 | | 9/28/2024 | | 9/27/2025 | | 9/28/2024 |
| Income from operations | $ | 23,055 | | | $ | 8,374 | | | $ | 40,950 | | | $ | 17,590 | |
| Add back: | | | | | | | |
| Simplification and restructuring initiatives | 359 | | | 259 | | | 6,867 | | | 1,033 | |
| Legal reserve, settlements and recoveries | — | | | (332) | | | 9,732 | | | (332) | |
| Litigation-related legal expenses | 1,270 | | | 5,558 | | | 6,998 | | | 13,680 | |
| Acquisition-related expenses | 1,247 | | | — | | | 1,247 | | | — | |
| Non-cash reserves for customer bankruptcy | — | | | 2,203 | | | — | | | 2,203 | |
| Warranty reserve | — | | | 3,527 | | | 1,039 | | | 3,527 | |
| | | | | | | |
| Adjusted operating income | $ | 25,931 | | | $ | 19,589 | | | $ | 66,833 | | | $ | 37,701 | |
| | | | | | | |
| Sales | $ | 211,447 | | | $ | 203,698 | | | $ | 622,061 | | | $ | 586,886 | |
| | | | | | | |
| Operating margin | 10.9 | % | | 4.1 | % | | 6.6 | % | | 3.0 | % |
| Adjusted operating margin | 12.3 | % | | 9.6 | % | | 10.7 | % | | 6.4 | % |
Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current periods’ income from operations to the historical periods’ income from operations and operating margin, as well as facilitates a more meaningful comparison of the Company’s income from operations and operating margin to that of other companies.
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
Page 16
| | | | | | | | | | | | | | | | | | | | | | | |
ASTRONICS CORPORATION |
RECONCILIATION OF NET LOSS AND DILUTED LOSS PER SHARE
TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE |
| (Unaudited, $ in thousands except per share amounts) |
| | | | | | | |
| Consolidated |
| Three Months Ended | | Nine Months Ended |
| 9/27/2025 | | 9/28/2024 | | 9/27/2025 | | 9/28/2024 |
| | | | | | | |
| | | | | | | |
| Net income (loss) | $ | (11,098) | | | $ | (11,738) | | | $ | (256) | | | $ | (13,383) | |
| Add back (deduct): | | | | | | | |
| Amortization of intangibles | 2,676 | | | 3,188 | | | 8,596 | | | 9,728 | |
| Simplification and restructuring initiatives | 359 | | | 259 | | | 6,867 | | | 1,033 | |
| Legal reserve, settlements and recoveries | — | | | (332) | | | 9,732 | | | (332) | |
| Litigation-related legal expenses | 1,270 | | | 5,558 | | | 6,998 | | | 13,680 | |
| Acquisition-related expenses | 1,247 | | | — | | | 1,247 | | | — | |
| | | | | | | |
| | | | | | | |
| Loss on settlement of debt | 32,644 | | | 6,987 | | | 32,644 | | | 6,987 | |
| Non-cash reserves for customer bankruptcy | — | | | 2,203 | | | — | | | 2,203 | |
| Warranty reserve | — | | | 3,527 | | | 1,039 | | | 3,527 | |
| | | | | | | |
| Normalize tax rate8 | (7,694) | | | 2,511 | | | (16,749) | | | (2,156) | |
| Adjusted net income | $ | 19,404 | | | $ | 12,163 | | | $ | 50,118 | | | $ | 21,287 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Weighted average diluted shares outstanding (in thousands) | 35,423 | | | 35,011 | | | 35,372 | | | 34,961 | |
| Adjusted weighted average diluted shares outstanding (in thousands)9 | 42,868 | | | 35,696 | | | 43,133 | | | 35,538 | |
| | | | | | | |
| | | | | | | |
| Diluted loss per share | $ | (0.31) | | | $ | (0.34) | | | $ | (0.01) | | | $ | (0.38) | |
| Adjusted diluted earnings per share10 | $ | 0.49 | | | $ | 0.34 | | | $ | 1.28 | | | $ | 0.60 | |
Adjusted Net Income and Adjusted Diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Net Income and Adjusted Diluted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Net Income and Adjusted Diluted EPS, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current periods’ net income and diluted EPS to the historical periods’ net income and diluted EPS, as well as facilitates a more meaningful comparison of the Company’s net income and diluted EPS to that of other companies. The Company believes that presenting Adjusted Diluted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company’s strategy to grow through acquisitions as well as organically.
8 Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.
9 Includes outstanding equity compensation and shares potentially issuable under the Company’s 5.5% convertible notes. No amounts are includable for the Company’s 0% convertible notes because only the premium is potentially issuable in shares, and the instrument is not currently in the money.
10 Net income for purposes of calculating adjusted diluted earnings per share includes addback of interest expense on the 5.5% convertible notes, net of income taxes, as required under the if-converted method.
Astronics Corporation Reports 2025 Third Quarter Financial Results
November 4, 2025
Page 17
| | | | | | | | | | | | | | | | | | | | | | | |
ASTRONICS CORPORATION |
RECONCILIATION OF SEGMENT OPERATING PROFIT (LOSS)
TO ADJUSTED SEGMENT OPERATING PROFIT (LOSS) |
| (Unaudited, $ in thousands) |
| | |
| Three Months Ended | | Nine Months Ended |
| 9/27/2025 | | 9/28/2024 | | 9/27/2025 | | 9/28/2024 |
| | | | | | | |
| Aerospace operating profit | $ | 31,167 | | | $ | 14,251 | | | $ | 71,470 | | | $ | 45,628 | |
| Simplification and restructuring initiatives | — | | | 237 | | | 6,508 | | | 237 | |
| Legal reserve, settlements and recoveries | — | | | (332) | | | 9,732 | | | (332) | |
| Litigation-related legal expenses | 982 | | | 5,405 | | | 5,902 | | | 13,161 | |
| Non-cash reserves for customer bankruptcy | — | | | 2,203 | | | — | | | 2,203 | |
| Warranty reserve | — | | | 3,527 | | | 1,039 | | | 3,527 | |
| Adjusted Aerospace operating profit | $ | 32,149 | | | $ | 25,291 | | | $ | 94,651 | | | $ | 64,424 | |
| | | | | | | |
| Aerospace sales | $ | 192,725 | | | $ | 177,554 | | | $ | 577,726 | | | $ | 518,135 | |
| | | | | | | |
| Aerospace margin | 16.2 | % | | 8.0 | % | | 12.4 | % | | 8.8 | % |
| Adjusted Aerospace margin | 16.7 | % | | 14.2 | % | | 16.4 | % | | 12.4 | % |
| | | | | | | |
| Test Systems operating loss | $ | (14) | | | $ | (13) | | | $ | (8,947) | | | $ | (8,428) | |
| Simplification and restructuring initiatives | 359 | | | 22 | | | 359 | | | 796 | |
| Litigation-related legal expenses | — | | | 153 | | | 808 | | | 519 | |
| | | | | | | |
| Adjusted Test Systems operating profit (loss) | $ | 345 | | | $ | 162 | | | $ | (7,780) | | | $ | (7,113) | |
| | | | | | | |
| Test Systems sales | $ | 18,722 | | | $ | 26,144 | | | $ | 44,335 | | | $ | 68,751 | |
| | | | | | | |
| Test Systems margin | (0.1) | % | | — | % | | (20.2) | % | | (12.3) | % |
| Adjusted Test Systems margin | 1.8 | % | | 0.6 | % | | (17.5) | % | | (10.3) | % |
Adjusted Segment Operating Profit is defined as segment operating profit as reported, adjusted for certain items. Adjusted Segment Margin is defined as Adjusted Segment Operating Profit divided by segment sales. Adjusted Segment Operating Profit and Adjusted Segment Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Segment Operating Profit and Adjusted Segment Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Segment Operating Profit and Adjusted Segment Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current periods’ segment operating profit to the historical periods’ segment operating profit and segment margin, as well as facilitates a more meaningful comparison of the Company’s segment operating profit and segment margin to that of other companies.
