AstroNova NASDAQ: ALOT reported higher fiscal first-quarter revenue and improved profitability, driven primarily by strength in its Aerospace segment, as management said the company is benefiting from commercial aircraft demand, growing orders and internal cost controls.
On the company’s fiscal 2027 first-quarter earnings call, President and CEO Jorik Ittmann said AstroNova had “a solid start” to the year, continuing momentum from the second half of the prior year. He cited greater sales, marketing and operating discipline as contributors to the improved results.
Revenue rose to $39.4 million from $37.7 million in the year-earlier quarter and $37.5 million in the fiscal fourth quarter, according to Chief Financial Officer Tom DeByle. He said tariff mitigation actions contributed approximately $0.7 million to quarterly revenue, while foreign currency translation added a $0.6 million benefit.
Aerospace Segment Drives Growth
AstroNova’s Aerospace segment was the main contributor to the quarter’s sales growth. DeByle said Aerospace revenue increased 16.3% year over year to $13.3 million. Commercial aircraft sales rose 46%, supported by higher build rates, while strength in regional and business jet aircraft helped lift hardware revenue by $2.5 million, or 38%, from the prior-year period.
Ittmann said the company’s ToughWriter printer platform is benefiting from favorable industry conditions. He noted that commercial aircraft build rates are projected to increase over the next several years and said AstroNova has captured “a significant share” of that opportunity with ToughWriter printers.
Management also highlighted aftermarket service as an area of focus. Ittmann said the company is working to improve service processes to increase throughput and capture more of what he described as attractive aftermarket business.
Orders also showed notable strength in Aerospace. DeByle said Aerospace orders totaled $19.5 million in the quarter, producing a book-to-bill ratio of 147%. Aerospace backlog ended the quarter at $18.2 million, more than double the prior-year level.
Product Identification Margins Improve Despite Revenue Dip
In Product Identification, revenue declined modestly from the prior-year period, but management said underlying trends were improving. Ittmann said operating income in the segment doubled, supported by higher and sustained sales of certain legacy products, productivity gains and improved cost control.
DeByle said desktop labeling revenue increased sequentially, while aftermarket revenue remained approximately 82% of Product Identification segment sales. Orders in the segment increased year over year to $26.8 million, and backlog rose sequentially to $14.2 million.
The company continues to manage a transition in its direct-to-package business from a legacy platform to newer products. DeByle said that transition weighed on first-quarter revenue, but management believes it positions AstroNova better over the long term with a stronger technology platform and clearer customer roadmap.
Ittmann said AstroNova is also reshaping its go-to-market strategy in Product Identification. The company recently added a global sales director, who he said is working to better align channel partners with target markets. He identified life sciences, chemical and industrial markets as areas where customers value the technical capabilities and quality of AstroNova’s printers and labels, particularly for regulatory, safety and longevity requirements.
The company also added a global operations director to review manufacturing processes and its operating footprint, Ittmann said.
Margins and Earnings Expand
AstroNova reported gross profit of $14.4 million, up from $12 million in the prior-year quarter. Gross margin expanded 490 basis points to 36.6%. On an adjusted basis, gross margin was 36.9%, up 410 basis points year over year, reflecting higher Aerospace volume, improved mix and operational improvements, DeByle said.
Operating income increased by $1 million to $1.6 million, despite higher legal and professional fees. Non-GAAP operating income rose 70% to $2.6 million. Aerospace non-GAAP operating income was $3.4 million, or 25.6% of segment revenue, while Product Identification non-GAAP operating income more than doubled from the prior-year period.
Net income increased by $0.7 million, or $0.08 per diluted share, compared with a net loss in the prior-year quarter. DeByle said the improvement also reflected lower interest expense, which declined by $0.2 million year over year to $0.7 million due to lower outstanding debt.
Non-GAAP net income was $1.4 million, or $0.19 per diluted share. Adjusted EBITDA increased to $4.1 million, and adjusted EBITDA margin improved to 10.5%.
Cash Flow, Debt Reduction and Backlog
AstroNova generated $3 million in cash from operations during the quarter. Capital expenditures were $36,000, resulting in free cash flow of $3 million, DeByle said.
The company reduced debt by $1.7 million during the quarter to $36 million. Debt was down from $37.7 million at fiscal year-end and $44.8 million a year earlier. Liquidity at quarter-end was $17.4 million, including $4.7 million in cash and cash equivalents and $12.7 million of borrowing capacity on the company’s revolver.
DeByle said stronger cash earnings were partially offset by higher working capital requirements related to receivables timing and inventory needs to support growth. AstroNova’s net debt leverage ratio improved to 2.6 times, which he said was well inside the company’s covenant threshold.
Total orders for the quarter were $46.3 million, up 33% from the prior-year period, with a book-to-bill ratio of 118%. Total backlog ended the quarter at $32.4 million.
Strategic Review Continues
Ittmann said AstroNova’s board continues to evaluate a range of potential strategic alternatives to maximize shareholder value. He said the process is ongoing and that the company would not speculate on timing, outcomes or specific alternatives. AstroNova does not plan to comment further unless the board approves a specific course of action or disclosure is otherwise required.
Management also said the company expects the expiration of a major royalty obligation in the third quarter of fiscal 2027. Ittmann said that is expected to provide approximately $2 million of annualized gross profit benefit beginning in the fourth quarter.
No analysts asked questions during the call’s question-and-answer session. In closing remarks, Ittmann thanked employees for their work and said the company remains focused on executing its operating plan while the board continues its strategic review.
About AstroNova NASDAQ: ALOT
AstroNova, Inc is a global provider of precision graphic communications equipment and identification solutions. The company operates two primary business segments: the NovaTech division, which designs and manufactures high‐speed data acquisition, recording and analysis systems for industrial, power generation, oil and gas, aerospace and defense markets; and the AstroNova division, which offers digital color label printing and packaging solutions under brands such as QuickLabel and RTag. These products are engineered to support mission‐critical applications that require reliable data capture or product identification across complex supply chains.
Headquartered in West Warwick, Rhode Island, AstroNova traces its heritage to the development of ruggedized oscillographs and recording instruments for industrial clients.
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