Astronics NASDAQ: ATRO executives highlighted improving demand trends across commercial aerospace and several defense-related growth programs during a presentation and fireside chat at the CJS Winter New Ideas Conference. CEO Peter Gunderman was joined by CFO Nancy Hedges and IR representative Deb Pawlowski.
Company profile and end-market mix
Gunderman said Astronics has a market capitalization of around $2.3 billion and noted the stock has been “trading at or near all-time highs” over the prior six months. He added that Astronics has two classes of stock, with Class B shares convertible to common shares at any time, and said the company is “largely institutionally owned at about 85%.”
Operationally, Astronics reports two segments and is “largely an aerospace business,” with roughly 90% of revenue typically tied to aerospace. Within that aerospace exposure, Gunderman described the company’s revenue mix as approximately:
- Commercial aerospace: about 70%
- Defense and government: about 20% (split between military aircraft and the company’s test business)
- General aviation/business jets: about 10%
He said the commercial aerospace concentration helped explain the company’s pandemic-era revenue decline and subsequent recovery.
Revenue recovery, backlog, and 2026 outlook
Gunderman said Astronics generated about $773 million in revenue pre-pandemic before bottoming at $445 million. He described 2021 through 2024 as a period of significant recovery, averaging about 18% growth, including roughly 28% growth in 2023. For 2025, he provided a preliminary revenue figure of around $860 million, characterizing the year as high single-digit growth and a continued recovery for the income statement and balance sheet. He also said cash generation improved as 2025 progressed and noted refinancing activity.
On the most recent quarter, Gunderman said preliminary fourth-quarter revenue was in the “high $230 million” range (236–239 million), which he described as an all-time record for the company.
Looking ahead, management reiterated preliminary 2026 top-line guidance calling for 10% to 15% revenue growth. Gunderman said the range reflected a maturing bottoms-up planning process and stated the company had “pretty good line of sight to the high end” of the range, while describing the lower end as conservative given the early stage of the year.
He also pointed to backlog as a key indicator of demand, saying Astronics entered 2026 with a preliminary backlog of $669 million, which he described as essentially an all-time high on an annual basis. He contrasted that with pre-pandemic periods when revenue approached $700 million to almost $800 million with backlog around $440 million.
In-flight entertainment and connectivity as a core growth driver
Gunderman emphasized Astronics’ exposure to in-flight entertainment and connectivity (IFEC), saying roughly half of the company’s business involves cabin electronics supporting passenger entertainment and connectivity systems. He said Astronics supplies hardware used in onboard entertainment, power and charging, wireless access points and file servers, and interfaces that support satellite connectivity systems.
He said Astronics sells to around 200 airlines globally and works with entertainment and connectivity ecosystem partners, naming Panasonic, Thales, Safran, Viasat, Inmarsat, SES, and Intelsat as examples. Gunderman said the company has positioned itself as a “one-stop shop” for a broad range of hardware needs, calling its product breadth a competitive advantage.
He also highlighted aftermarket potential, arguing that IFEC systems are upgraded more frequently than most aircraft systems. Gunderman said commercial aircraft interiors are typically replaced every five to seven years, creating ongoing retrofit opportunities, even as overall aircraft production rises.
OEM production rates and key watch items
In discussing industry tailwinds, Gunderman described rising aircraft production expectations at Boeing and Airbus, while acknowledging persistent supply-chain complexity. He said Boeing’s 737 production improved during 2025 from roughly 20 aircraft per month early in the year to the high 30s, with FAA permission to go to 42, and said Boeing has plans to move closer to 50 per month during 2026. He also said Airbus is running the A320 in the low 50s per month with aspirations to reach the 70s, while widebody programs such as the Boeing 787 and Airbus A350 are running mid-single digits per month with targets in the low double digits.
Gunderman said Astronics trimmed its internal assumptions somewhat versus OEM targets, but remained comfortable with its growth outlook. He also stated the company has “plenty of capacity” to support higher build rates if the OEMs execute.
One specific planning “watch item,” he said, involves a delayed U.S. Army-related program tied to the company’s test operation. Gunderman said the program was awarded “literally a couple of years ago,” but that timing has shifted, citing impacts from a government shutdown and the year-end holidays. He said Astronics expected activation at the end of the first quarter but had not received firm guidance, and added it could slip to the second quarter. He estimated the program could contribute up to roughly $20 million of revenue in 2026 at maximum, making it helpful but “not going to make or break” the year.
Defense growth: FLRAA program and emerging eVTOL/drone opportunities
Gunderman also detailed Astronics’ role on Bell’s V-280 FLRAA program, the U.S. Army’s planned replacement for the Black Hawk. He described Astronics as a “true side-by-side partner” responsible for the electrical system after the generators, including power conditioning, distribution, and circuit breakers powering systems such as avionics, navigation, HVAC, weapons, and life support.
He said the development program is expected to be funded at approximately $90 million to $95 million, with Astronics about $30 million through the effort and planning another roughly $40 million of work in 2026, with completion expected in the first half of 2027. Gunderman said shipset content is still being finalized and may not be complete until about halfway through 2026, but the company is currently estimating approximately $1 million of content per aircraft.
On program accounting, Gunderman said Astronics did not book margin on the FLRAA work performed in 2025 because a final EMD contract had not been signed, and work proceeded under smaller short-term contracts. He said once the final contract is signed, the company expects a catch-up entry—potentially in the first quarter or second quarter—followed by margin recognition on incremental progress during 2026, though he cautioned margins would not match typical aerospace levels.
Gunderman also said the Army has discussed accelerating production by moving it earlier than the traditional schedule, potentially starting aircraft builds alongside flight testing. While he noted this approach is not common and carries risk, he said Astronics would be prepared to support an accelerated ramp.
Finally, Gunderman discussed opportunities in drones and eVTOL aircraft, framing Astronics’ advantage around advanced electrical systems such as electronic circuit breakers that enable monitoring and remote control—capabilities relevant to remotely piloted or autonomous aircraft. He said the company is interacting broadly across the defense and startup ecosystem but that many programs remain early-stage and, in some cases, classified.
On eVTOL, Gunderman said Astronics is pursuing a commercial off-the-shelf approach, providing certification support on a fee basis and working with many industry participants, though he noted the company is not working with Joby. He said eVTOL is not a major part of the 2026 plan, estimating total revenue tied to the market at roughly $5 million to $10 million, while describing it as a potential future opportunity as certification pathways develop.
About Astronics NASDAQ: ATRO
Astronics Corporation NASDAQ: ATRO is a global leader in the design and manufacture of advanced technologies primarily for the aerospace, defense and semiconductor industries. Headquartered in East Aurora, New York, the company was founded in 1968 and has grown through a combination of internal development and strategic acquisitions. Astronics operates multiple business units focused on power conversion, distribution and control; cabin electronics and connectivity; aircraft lighting and safety solutions; and automated test systems.
The company's aerospace products include onboard power generation and management systems, in-flight entertainment and connectivity hardware, LED and fluorescent lighting for aircraft cabins and cockpits, and safety equipment such as escape slide power units.
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