Is ATRO's Q1 2025 forecast achievable?
4/3/2025 03:19pm
Astronics Corporation's (ATRO) Q1 2025 forecast appears to be achievable based on the following points:
1. **Strong Q4 Performance**: ATRONICS reported a strong fourth quarter (Q4) with sales increasing by 6.8% year-over-year (YoY) to $208.5 million, surpassing market expectations.
2. **Positive Outlook for 2025**: The company maintained its 2025 revenue guidance of $820 million to $860 million, indicating a positive outlook for the upcoming quarter.
3. **Record Backlog and Improving Margins**: ATRONICS ended 2024 with a record year-end backlog of $599.2 million, which provides visibility into continued growth. The company also expects margins to improve in 2025, with an adjusted EBITDA margin of 15.1%.
4. **Financial Stability**: ATRONICS reported cash flow from operations of $26.4 million in Q4 2024, and $30.6 million for the year, indicating financial stability and the ability to support growth initiatives.
In conclusion, ATRONICS's Q1 2025 forecast appears to be achievable given the company's strong Q4 performance, positive outlook for 2025, record backlog, improving margins, and financial stability.