Astronics Corporation, a supplier of advanced technology products for the global aerospace industry, is maintaining its 2025 revenue guidance, despite global uncertainty surrounding the Trump administration’s proposed import tariffs.
The company has announced strong Q1 2025 financial results with sales increasing by 11.3 per cent year-on-year to USD 206 million, pushing net income to USD 9.5 million, compared to a net loss of USD 3.2 million in the first quarter of 2024.
The company achieved bookings of USD 280 million in the quarter, resulting in a book-to-bill ratio of 1.36x and a backlog of USD 673 million at quarter-end.
Peter Gundermann, Chief Executive Officer, said first quarter results represented “a very strong start to 2025” with revenue higher than expected and margin expansion due to increased sales and efficiency.
Gundermann said he was confident of a good year ahead, and that the company plans to recognise approximately 76% of its current backlog as revenue over the next 12 months.
Planned capital expenditure in 2025 is expected to be between USD 35 million and USD 50 million.
Regarding the impact of tariffs, Gunderman told journalists on the earnings call: “We need to see what the tariff structure will be before we pull the trigger on [mitigation plans] but we are considering all kinds of alternatives to be up to speed when the time comes.”
He added that during the previous Trump presidency, Astronics moved a large number of its contractors away from China and approximately 90% of revenue now comes from US operations but the company still has an international supply chain and global customer base.
He said that, based on current tariff rates, the estimated potential incremental impact on annual material costs is in the range of USD 10 million to 20 million before mitigation.
Astronics also provided an update on its long-running patent infringement cases, with particular emphasis on the UK court proceedings which it estimates will cost a total of between USD 22 and 23 million in damages, legal fees and interest.
“We’re thrilled with the damages ruling which could have been a whole lot worse based on what the plaintiffs were asking for. We’re not so pleased with the interest charges but, given the damages ruling, we’ll live with it,” Gunderman said.
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