Aerospace and defense technology solutions provider Astronics Corporation (NASDAQ: ATRO) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 15.1% year on year to $240.1 million. On the other hand, next quarter’s revenue guidance of $225 million was less impressive, coming in 3.3% below analysts’ estimates. Its non-GAAP profit of $0.75 per share was 25% above analysts’ consensus estimates.

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Company Overview

Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ: ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Astronics grew its sales at an impressive 11.4% compounded annual growth rate. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Astronics’s annualized revenue growth of 11.8% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong.

We can dig further into the company’s revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Astronics’s backlog reached $674.5 million in the latest quarter and averaged 9.1% year-on-year growth over the last two years. Because this number is lower than its revenue growth, we can see the company fulfilled orders at a faster rate than it added new orders to the backlog. This implies Astronics was operating efficiently but raises questions about the health of its sales pipeline.

This quarter, Astronics reported year-on-year revenue growth of 15.1%, and its $240.1 million of revenue exceeded Wall Street’s estimates by 1.2%. Company management is currently guiding for a 9.3% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 12.3% over the next 12 months, similar to its two-year rate. This projection is admirable and implies the market sees success for its products and services.

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Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development.

Astronics was roughly breakeven when averaging the last five years of quarterly operating profits, inadequate for an industrials business.

On the plus side, Astronics’s operating margin rose by 18.4 percentage points over the last five years, as its sales growth gave it immense operating leverage.

In Q4, Astronics generated an operating margin profit margin of 14.8%, up 10.5 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Astronics’s full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it’s at an inflection point.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Astronics, its two-year annual EPS growth of 208% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.

In Q4, Astronics reported adjusted EPS of $0.75, up from $0.48 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Astronics’s full-year EPS of $2.06 to grow 22.3%.

Key Takeaways from Astronics’s Q4 Results

It was good to see Astronics beat analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. On the other hand, its revenue guidance for next quarter missed. Overall, we think this was still a solid quarter with some key areas of upside. Investors were likely hoping for more, and shares traded down 2.5% to $77.49 immediately after reporting.

Big picture, is Astronics a buy here and now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).