AstroNova's Q4 2025: Unpacking Contradictions in MTEX Integration and Aerospace Growth Expectations

These are the key contradictions discussed in AstroNova's latest 2025Q4 earnings call, specifically including: MTEX integration progress and impact on financial results, Aerospace segment performance, and expectations for growth:



Challenges and Restructuring:
- AstroNova, Inc. faced a challenging fiscal year 2025, with issues including a tough integration of the MTEX acquisition, lower demand due to the Boeing strike, and delays in large defense industry orders.
- In response, the company executed a restructuring plan expected to deliver $3 million in annual cost savings and rightsized its product portfolio to focus on higher-margin, higher-growth products.

Aerospace Segment Performance:
- The Aerospace segment posted record full year operating profit of 22.8%, with a five-year compound annual growth rate of 17.4%.
- Growth was driven by the transition to higher-margin ToughWriter branded printers, which are expected to make up 86% of total printer deliveries by the end of the fiscal year.

MTEX Acquisition and Integration:
- The MTEX acquisition presented challenges, requiring the company to reorganize and realign the business, address operational issues, and improve accountability.
- Despite these hurdles, AstroNova is planning to leverage MTEX's technologies and manufacturing capabilities, with expectations of market share gains and unique supply sourcing opportunities in fiscal 2026.

Financial Results and Guidance:
- Net revenue for the fourth quarter was down 5.6% to $37.4 million, reflecting lower sales in both segments.
- For fiscal 2026, the company anticipates net revenue in the range of $160 million to $165 million, representing a year-over-year growth of 7.4% at the midpoint, driven by the integration of new print engine and ink technology and transition to ToughWriter printers.