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Astronics' Aerospace Segment Gains Strength on Rising Demand

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Key Takeaways

  • Astronics' Aerospace revenues hit $193.6M in Q2 2025, rising 9.4% year over year.
  • Demand for cabin power, IFEC and defense lighting products fueled segment growth.
  • Acquisition of Envoy Aerospace strengthens in-house certification capabilities.

Astronics Corporation (ATRO - Free Report) reported strong results for the second quarter of 2025, with its Aerospace segment delivering record revenues of $193.6 million, up 9.4% from the prior-year quarter and being the primary contributor to its 3.3% total revenue growth. This segment’s growth was fueled by higher sales in the commercial transport and military aircraft markets.

While the increasing demand for cabin power and in-flight entertainment & connectivity (IFEC) products boosted commercial transport sales, resilient defense activity bolstered demand for lighting and safety products, aiding military aircraft sales.

Looking ahead, the International Air Transport Association projects global air travel demand to expand 5.8% year over year in 2025. This trend should drive increased investments in cabin upgrades and in-flight connectivity, creating favorable conditions for Astronics’ core commercial aerospace offerings.

In July, the company acquired Envoy Aerospace, an FAA Organizational Designation Authorization services provider, for $8 million. This acquisition will expand Astronics’ regulatory expertise and complement its aerospace product development by enabling faster, in-house certification of new technologies for airline customers.

These strategic initiatives, along with strong underlying industry tailwinds, are expected to help Astronics sustain momentum in its Aerospace segment.

Other Stocks Advancing in Commercial Aerospace

Building on the momentum across aerospace, particularly the commercial aerospace industry, other stocks like RTX Corporation (RTX - Free Report) and The Boeing Company (BA - Free Report) are also making notable progress.

In August 2025, RTX’s Collins Aerospace began providing JetBlue with its FlightAware Foresight predictive analytics platform. This technology utilizes real-time tracking and predictive tools to alert operators about potential delays caused by weather, congestion or other factors. By enabling airlines to make quicker operational adjustments, the platform enhances on-time performance and passenger communication, highlighting RTX’s growing emphasis on digital aviation solutions.

On the other hand, in September 2025, Boeing received significant commercial aircraft orders that strengthened its market position. WestJet placed an order for 60 737-10 and seven 787-9 jets to support its fleet expansion, while Macquarie AirFinance ordered 30 new 737-8 aircraft to grow its leasing portfolio. These developments highlight the steady demand for Boeing’s next-generation planes and its continued importance in global aviation.

ATRO’s Price Performance, Valuation and Estimates

Shares of ATRO have gained 113% in the past year compared with the industry’s 33.3% growth.

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The company shares are trading at a discount, with its forward 12-month Price/Sales being 1.58X compared with its industry’s average of 9.66X.

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The Zacks Consensus Estimate for ATRO’s near-term earnings has improved over the past 60 days.

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Image Source: Zacks Investment Research

ATRO stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.


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