# EDGAR Filing Document

**Accession Number:** 0000008063
**File Stem:** 0000008063-25-000055
**Filing Date:** 2025-8
**Character Count:** 65236
**Document Hash:** caa2abb9cd9289896aa83500c01c1bc4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000008063-25-000055.hdr.sgml**: 20250806

**ACCESSION NUMBER**: 0000008063-25-000055

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250806

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250806

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ASTRONICS CORP
- **CENTRAL INDEX KEY:** 0000008063
- **STANDARD INDUSTRIAL CLASSIFICATION:** AIRCRAFT PART & AUXILIARY EQUIPMENT, NEC [3728]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 160959303
- **STATE OF INCORPORATION:** NY
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-07087
- **FILM NUMBER:** 251190013

**BUSINESS ADDRESS:**
- **STREET 1:** 130 COMMERCE WAY
- **STREET 2:** -
- **CITY:** EAST AURORA
- **STATE:** NY
- **ZIP:** 14052-2164
- **BUSINESS PHONE:** 716-805-1599

**MAIL ADDRESS:**
- **STREET 1:** 130 COMMERCE WAY
- **STREET 2:** -
- **CITY:** EAST AURORA
- **STATE:** NY
- **ZIP:** 14052-2164

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ASTRONICS LUMINESCENT INC
- **DATE OF NAME CHANGE:** 19711209

?xml version='1.0' encoding='ASCII'? atro-20250806

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **August 6, 2025**

**ASTRONICS CORPORATION**

(Exact name of registrant as specified in its charter)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **New York** | **New York** | **0-7087** | **0-7087** | **16-0959303** |
| (State of Other Jurisdiction of Incorporation) | (State of Other Jurisdiction of Incorporation) | (Commission File Number) | (Commission File Number) | (I.R.S. Employer Identification No.) |
| | **130 Commerce Way** <br>**East Aurora, New York** | **130 Commerce Way** <br>**East Aurora, New York** | **14052** | **14052** |
| | (Address of principal executive offices) | (Address of principal executive offices) | (Zip Code) | (Zip Code) |

---

Registrant's telephone number, including area code: **(716) 805-1599**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Common Stock, $.01 par value per share | ATRO | The NASDAQ Stock Market LLC |

---

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02 Results of Operations and Financial Condition.**

On August 6, 2025, Astronics Corporation issued a news release announcing its second quarter financial results for 2025. A copy of the news release is attached as Exhibit 99.1.

The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing. The information in this report including the exhibit hereto, shall not be deemed to be "filed" for purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

**Item 9.01 Financial Statements and Exhibits.**

---

| | |
|:---|:---|
| <u>Exhibit</u> | <u>Description</u> |
| <u>[99.1](ex99120250628-pr.htm)</u> | News Release of Astronics Corporation dated August 6, 2025 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | | **Astronics Corporation** |
| Dated: | August 6, 2025 | By: | <u>/s/ Nancy L. Hedges</u> |
|  |  | Name: | Nancy L. Hedges |
|  |  |  | Vice President and Chief Financial Officer |
|  |  |  | Vice President and Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![atrocorp_image1a11a.jpg](atrocorp_image1a11a.jpg)

***Astronics Corporation • 130 Commerce Way • East Aurora, NY • 14052-2164***

FOR IMMEDIATE RELEASE

**Astronics Corporation Reports<br>Record Aerospace Segment Sales in 2025 Second Quarter**

*•* ***Second quarter sales increased 3.3% to $204.7 million driven by Aerospace growth of 9.4% to a record $193.6 million***

*•* ***Second quarter net income was $1.3 million, or $0.04 per diluted share; adjusted EBITDA***<sup>1</sup> ***was $25.4 million, or 12.4% of sales***

***• Aerospace operating margin was 9.3% including investments in simplification initiatives and legal fee reimbursement; adjusted operating margin***<sup>1</sup> ***was 16.3%***

*•* ***Test Systems restructuring cost savings masked by $6.9 million impact to profitability from estimated cost to complete adjustments***

*•* ***Solid quarterly bookings of $177.0 million and backlog of $645.4 million***

*•* ***Raised lower end of revenue guidance to range of $840 million to $860 million for 2025***

***EAST AURORA, NY, August 6, 2025 –*** Astronics Corporation (Nasdaq: ATRO) ("Astronics" or the "Company"), a leading supplier of advanced technologies and products to the global aerospace, defense, and other mission critical industries, today reported financial results for the three and six months ended June 28, 2025.

Peter J. Gundermann, Chairman, President and Chief Executive Officer, commented, "We had a very solid second quarter and demonstrated continued progress as revenue stabilizes above $200 million per quarter. We also took some actions that will improve our future earnings power. After a company-wide review of our product portfolio, we took the action to step away from a couple of product lines that have proven to be low margin and low growth. We also took a meaningful increase in our estimate to complete for some projects in our Test business, which masked the progress we have made restructuring that business in recent quarters. These actions will allow us to simplify our business and focus on efforts that promise the greatest returns. Combined with the supportive market conditions we are experiencing, we believe we are well positioned for the future as we look to finish strong in 2025 and beyond."

<sup>1</sup> *Adjusted EBITDA, adjusted EBITDA margin, and adjusted operating margin are Non-GAAP financial measures. Please see the reconciliation of GAAP to non-GAAP financial measures in the tables that accompany this release.*

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 2**

**<u>Second Quarter Results</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
| ***($ in thousands)*** | **<u>June 28, 2025</u>** | **<u>June 29, 2024</u>** | **<u>% Change</u>** | **<u>June 28, 2025</u>** | **<u>June 29, 2024</u>** | **<u>% Change</u>** |
| **Sales** | $204678 | $198114 | 3.3% | $410614 | $383188 | 7.2% |
| **Gross Profit** | $52827 | $55568 | (4.9)% | $113676 | $103082 | 10.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;*Gross Margin* | *25.8 %* | *28.0 %* |  | *27.7 %* | *26.9 %* |  |
| **Income from Operations** | $4758 | $7550 | (37.0)% | $17895 | $9216 | 94.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;*Operating Margin %* | *2.3 %* | *3.8 %* |  | *4.4 %* | *2.4 %* |  |
| **Net Income (Loss)** | $1314 | $1533 | (14.3)% | $10842 | $(1645) | 759.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;*Net Income (Loss) %* | *0.6 %* | *0.8 %* |  | *2.6 %* | *(0.4) %* |  |
| **Adjusted Net Income<sup>2</sup>** | $13741 | $7210 | 90.6% | $30714 | $9124 | 236.6% |
| **Adjusted EBITDA**<sup>2</sup> | $25408 | $20243 | 25.5% | $56147 | $37868 | 48.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;*Adjusted EBITDA Margin %*<sup>2</sup> | *12.4 %* | *10.2 %* |  | *13.7 %* | *9.9 %* |  |

---

*<u>Second Quarter 2025 Results (compared with the prior-year period, unless noted otherwise)</u>*

Growth in sales was driven by the Aerospace segment's continued strength in demand primarily from the Commercial Transport market. Aerospace sales increased $16.7 million, or 9.4%, which more than offset a $10.1 million decline in Test Systems sales. Consolidated sales were negatively impacted by $6.4 million due to revisions of estimated costs to complete certain long-term mass transit contracts in the Test Systems segment.

Gross profit decreased $2.7 million to $52.8 million, or 25.8% of sales. As noted above, a revision of estimated costs to complete certain long-term mass transit contracts in the Test Systems segment resulted in a $6.9 million impact on gross profit. Additionally, simplification initiatives in the Aerospace segment, including costs related to footprint rationalization and product portfolio shaping activities, resulted in $5.8 million in charges within cost of products sold during the quarter. Adjusted gross profit<sup>2</sup> for the 2025 second quarter was $59.7 million, or 29.2% of sales, an improvement over 28.0% in the comparator quarter, primarily attributable to higher volume and improving productivity.

In the second quarter of 2025, the $2.7 million increase in selling, general and administrative expenses ("SG&A") included a $3.5 million legal fee reimbursement charge relating to the patent infringement dispute in the UK, partially offset by a $1.7 million decrease in litigation-related legal expenses. R&D was down $2.6 million reflecting the timing of projects.

Consolidated operating income decreased $2.8 million to $4.8 million, or 2.3% of sales. The impact of the revision of estimated costs on operating income was $6.9 million. Adjusted operating income<sup>2</sup> for the 2025 second quarter was $18.3 million, or 8.9% of sales, compared with $12.6 million, or 6.4% of sales, in the 2024 second quarter, which represents margin gain on increased volume and improved productivity in the Aerospace segment, coupled with realized savings from the recent Test Systems cost rationalization activities. The revision of estimated costs were not included as an add back for adjusted operating income<sup>2</sup>.

As a result of the refinancing in December 2024, interest expense was down $2.8 million, or 47.1%. Tax expense in the quarter was $0.5 million compared with a tax benefit of $0.3 million in the prior-year period.

<sup>2</sup> Adjusted gross profit, adjusted operating income, adjusted segment operating profit, adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted diluted earnings per share ("EPS") are Non-GAAP financial measures. Please see the reconciliation of GAAP to non-GAAP financial measures in the tables that accompany this release.

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 3**

Consolidated net income of $1.3 million, or $0.04 per diluted share, compares with net income of $1.5 million, or $0.04 per diluted share, in the prior-year period. Adjusted net income<sup>2</sup> for the 2025 second quarter increased $6.5 million to $13.7 million, or $0.38 per diluted share, resulting from stronger profitability and lower interest expense.

Consolidated adjusted EBITDA<sup>2</sup> increased 25.5% to $25.4 million, and was 12.4% of consolidated sales.

Bookings of $177.0 million in the quarter resulted in a book-to-bill ratio of 0.86:1. For the trailing twelve months, bookings totaled $841.8 million and the book-to-bill ratio was 1.02:1. Backlog at the end of the quarter was $645.4 million.

**Aerospace Segment Review** *(refer to sales by market and segment data in accompanying tables)*

*<u>Aerospace Second Quarter 2025 Results (compared with the prior-year period, unless noted otherwise)</u>*

Record Aerospace segment sales of $193.6 million increased $16.7 million, or 9.4%. Sales in the Commercial Transport market increased $17.2 million, or 13.4%. Growth was primarily related to increased demand by airlines for cabin power and inflight entertainment & connectivity ("IFEC") products. Military Aircraft sales increased $2.7 million, or 10.7%, to $27.4 million, driven by increased demand for lighting and safety products. General Aviation sales decreased $0.6 million, or 3.4%, to $18.4 million due to lower airframe power sales. Other sales decreased $2.5 million as the Company is winding down its non-core contract manufacturing arrangements.

Aerospace segment operating profit of $18.0 million, or 9.3% of sales, decreased over the prior-year period as a result of the previously discussed $6.2 million charge related to simplification initiatives, a $3.5 million legal fee reimbursement charge related to the UK patent dispute, and a $1.0 million warranty expense true-up related to a new product launch that requires a field modification. These were partially offset by a $1.5 million decrease in litigation-related expenses. Adjusted Aerospace operating profit<sup>2</sup> was $31.5 million, or 16.3% of sales, up 300 basis points from the comparator quarter, reflecting the leverage gained on higher volume, pricing initiatives, and improving production efficiencies.

Aerospace bookings were $150.6 million for a book-to-bill ratio of 0.78:1. Backlog for the Aerospace segment was $570.9 million at quarter end.

Mr. Gundermann commented, "Excluding the unusual items in the quarter, our Aerospace business had a strong second quarter. Sales hit a new record and adjusted operating margin<sup>2</sup> showed consistent improvement. The reserves we took are the result of a determined focus on those business initiatives that are most important to our future, which we believe continues to look very positive."

**Test Systems Segment Review** *(refer to sales by market and segment data in accompanying tables)*

*<u>Test Systems Second Quarter 2025 Results (compared with the prior-year period, unless noted otherwise)</u>*

Test Systems segment sales were $11.1 million, down $10.1 million from the comparator quarter in 2024. Segment sales were negatively impacted by $6.4 million due to revisions of estimated costs to complete certain long-term mass transit Test contracts. The revisions resulted in reduced revenue recognized in the respective periods due to lower estimates of the percentage of work completed on the programs.

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 4**

Test Systems segment operating loss was $6.7 million, compared with an operating loss of $5.3 million in the second quarter of 2024. The revisions to the estimated costs to complete had a $6.9 million detrimental impact to operating income and masked the savings realized from recent restructuring activities. While Test Systems continues to be negatively affected by mix and under absorption of fixed costs at current volume levels, the second half of 2025 is expected to be improved for revenue and operating income despite a six-to-eight-week delay in a U.S. Army radio test program.

Bookings for the Test Systems segment in the quarter were $26.4 million. The book-to-bill ratio was 2.39:1 for the quarter. Backlog for the Test Systems segment was $74.5 million at quarter end.

Mr. Gundermann commented, "We initiated a deep dive into some of our major long term Test programs in the second quarter and concluded the EAC adjustment was appropriate at this time. The deep dive will continue into the third quarter but we expect we have adequately captured the situation as it stands today. The EAC adjustment unfortunately masks the benefit of certain restructuring steps we have taken in recent quarters. With the EAC adjustment behind us, we believe the business is positioned for a stronger close to 2025 with accelerating momentum as we look forward to 2026."

**<u>Liquidity and Financing</u>**

Cash used by operations in the second quarter of 2025 was $7.6 million after $21.6 million in payments related to the UK patent dispute and $12.0 million in net income tax payments.

Capital expenditures in the quarter were $4.6 million. Long-term debt, net of cash, decreased $4.4 million to $145.8 million at quarter end compared with $150.2 million at the end of the year. The Company had available liquidity of $191.3 million at the end of the second quarter.

**<u>2025 Outlook</u>**

Astronics is raising the lower end of its 2025 revenue guidance to approximately $840 million to $860 million, up from previous guidance of $820 million to $860 million. The midpoint of the revised range would be a 6.9% increase over 2024 sales.

The Company is monitoring the evolving tariff situation closely. Astronics generates approximately 90% of its revenue from operations in the United States, though it has an international supply chain and a global list of customers. Based on the tariff rates in effect today, Astronics believes the potential incremental impact to annual costs of materials related to direct and known indirect effects is in the range of $15 million to $20 million before mitigation. The Company believes that certain actions including pass-through pricing, supply chain restructuring, duty drawbacks, the implementation of free trade zones, and other operational adjustments will significantly reduce the anticipated impacts of tariffs over time. The Company expects that tariff rates will remain in flux in the near future and will refine its strategy as the situation becomes more stable.

Backlog at the end of the second quarter was $645.4 million, of which approximately 75% is expected to be recognized as revenue over the next twelve months. Planned capital expenditures in 2025 are expected to be in the range of $40 million to $50 million.

Mr. Gundermann commented, "The first half of 2025 was very positive for our Company and we believe activity will accelerate as we move into the second half of the year. The production phase of our Radio Test Program for the U.S. Army may slide into early 2026, but our aerospace business is accelerating more than enough to compensate. We are raising our 2025 revenue guidance accordingly by $10 million at the mid-point. Our business continues to strengthen, including the efficiency of our work force and the dependability of our supply chain, and we have a near-record backlog. The signs are positive as we work toward the end of the year."

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 5**

**<u>Second Quarter 2025 Webcast and Conference Call</u>**

The Company will host a teleconference today at 4:45 p.m. ET. During the teleconference, management will review the financial and operating results for the period and discuss Astronics' corporate strategy and outlook. A question-and-answer session will follow.

The Astronics conference call can be accessed by calling (201) 493-6784. The listen-only audio webcast can be monitored at investors.astronics.com. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13754268. The telephonic replay will be available from 8:00 p.m. on the day of the call through Wednesday, August 20, 2025. The webcast replay can be accessed via the investor relations section of the Company's website where a transcript will also be posted once available.

**<u>About Astronics Corporation</u>**

Astronics Corporation (Nasdaq: ATRO) serves the world's aerospace, defense, and other mission-critical industries with proven innovative technology solutions. Astronics works side-by-side with customers, integrating its array of power, connectivity, lighting, structures, interiors, and test technologies to solve complex challenges. For over 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe manufacturers, airlines, military branches, completion centers, and Fortune 500 companies rely on the collaborative spirit and innovation of Astronics. The Company's strategy is to increase its value by developing technologies and capabilities that provide innovative solutions to its targeted markets.

**<u>Safe Harbor Statement</u>**

This news release contains forward-looking statements as defined by the Securities Exchange Act of 1934. One can identify these forward-looking statements by the use of the words "expect," "anticipate," "plan," "may," "will," "estimate," "feeling" or other similar expressions and include all statements with regard to the Company's 2025 outlook, the amount of capital expenditures for 2025, the amount of the impact of tariffs on costs for materials to the Company and level of mitigation potential with respect thereto, the amount of backlog to be recognized as revenue over the next twelve months, costs or outcomes of any business reviews or rationalization efforts, and statements regarding the strategy of the Company and its outlook. Forward-looking statements also include all statements related to achieving any revenue or profitability expectations, expectations of continued growth, the level of liquidity, the level of cash generation, the level of demand by customers and markets and the amount of expected capital expenditures. Because such statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. Important factors that could cause actual results to differ materially from what may be stated here include the trend in growth with passenger power and connectivity on airplanes, the state of the aerospace and defense industries, the market acceptance of newly developed products, internal production capabilities, the timing of orders received, the status of customer certification processes and delivery schedules, the demand for and market acceptance of new or existing aircraft which contain the Company's products, the impact of regulatory activity and public scrutiny on production rates of a major U.S. aircraft manufacturer, the need for new and advanced test and simulation equipment, customer preferences and relationships, the effectiveness of the Company's supply chain, and other factors which are described in filings by Astronics with the Securities and Exchange Commission. Except as required by applicable law, the Company assumes no obligation to update forward-looking information in this news release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 6**

**<u>Use of Non-GAAP Financial Metrics and Additional Financial Information</u>**

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Astronics provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. Astronics management uses these measures for reviewing the financial results of Astronics for budget planning purposes and for making operational and financial decisions. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, help investors evaluate Astronics core operating and financial performance and business trends consistent with how management evaluates such performance and trends.

FINANCIAL TABLES FOLLOW

---

| | |
|:---|:---|
| **For more information, contact:** | |
| Company: | Investor Relations: |
| Nancy L. Hedges, Chief Financial Officer | Deborah K. Pawlowski, Alliance Advisors LLC |
| Phone: (716) 805-1599, ext. 159 | Phone: (716) 843-3908 |
| Email: nancy.hedges@astronics.com | Email: dpawlowski@allianceadvisors.com |

---

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 7**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** |
| **<u>CONSOLIDATED STATEMENT OF OPERATIONS DATA</u>** | **<u>CONSOLIDATED STATEMENT OF OPERATIONS DATA</u>** | **<u>CONSOLIDATED STATEMENT OF OPERATIONS DATA</u>** | **<u>CONSOLIDATED STATEMENT OF OPERATIONS DATA</u>** | **<u>CONSOLIDATED STATEMENT OF OPERATIONS DATA</u>** |
| *(Unaudited, $ in thousands except per share amounts)* | *(Unaudited, $ in thousands except per share amounts)* | *(Unaudited, $ in thousands except per share amounts)* | *(Unaudited, $ in thousands except per share amounts)* | *(Unaudited, $ in thousands except per share amounts)* |
|  | **<u>Three Months Ended</u>** | **<u>Three Months Ended</u>** | **<u>Six Months Ended</u>** | **<u>Six Months Ended</u>** |
|  | **6/28/2025** | **6/29/2024** | **6/28/2025** | **6/29/2024** |
| **Sales** | $204678 | $198114 | $410614 | $383188 |
| Cost of products sold | 151851 | 142546 | 296938 | 280106 |
| Gross profit<sup>3</sup> | 52827 | 55568 | 113676 | 103082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Gross margin*** | ***25.8*** *%*** | ***28.0*** *%*** | ***27.7*** *%*** | ***26.9*** *%*** |
| Research and development expenses | 11572 | 14214 | 22639 | 27537 |
| Selling, general and administrative | 36497 | 33804 | 73142 | 66329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***SG&A % of sales*** | ***17.8*** *%*** | ***17.1*** *%*** | ***17.8*** *%*** | ***17.3*** *%*** |
| Income from operations | 4758 | 7550 | 17895 | 9216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Operating margin*** | ***2.3*** *%*** | ***3.8*** *%*** | ***4.4*** *%*** | ***2.4*** *%*** |
| Other (income) expense | (190) | 435 | (377) | 871 |
| Interest expense, net | 3097 | 5856 | 6247 | 11615 |
| Income (loss) before tax | 1851 | 1259 | 12025 | (3270) |
| Income tax expense (benefit) | 537 | (274) | 1183 | (1625) |
| **Net income (loss)** | $**1314** | $**1533** | $**10842** | $**(1645)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Net income (loss) % of sales*** | ***0.6*** *%*** | ***0.8*** *%*** | ***2.6*** *%*** | ***(0.4)*** *%*** |
| Basic earnings (loss) per share: | $0.04 | $0.04 | $0.31 | $(0.05) |
| Diluted earnings (loss) per share: | $0.04 | $0.04 | $0.30 | $(0.05) |
| Weighted average diluted shares outstanding (in thousands) | 36368 | 35547 | 36059 | 34936 |

---

<sup>3</sup> During the first quarter of 2025, the Company changed its financial statement presentation of research and development costs. These costs were previously included within Cost of Products Sold and were a factor in arriving at Gross Profit. The prior period amounts for Cost of Product Sold and Gross Profit have been adjusted from their original presentation for comparability purposes.

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 8**

---

| | | |
|:---|:---|:---|
| **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** |
| **<u>CONSOLIDATED BALANCE SHEETS</u>** | **<u>CONSOLIDATED BALANCE SHEETS</u>** | **<u>CONSOLIDATED BALANCE SHEETS</u>** |
| *($ in thousands)* | *($ in thousands)* | *($ in thousands)* |
|  | *(unaudited)* |  |
|  | **6/28/2025** | **12/31/2024** |
| **<u>ASSETS</u>** |  |  |
| Cash and cash equivalents | $13460 | $9285 |
| Restricted cash |  | 9143 |
| Accounts receivable, net of allowance for estimated credit losses | 187270 | 191446 |
| Inventories | 194311 | 199741 |
| Prepaid expenses and other current assets | 23668 | 16557 |
| &nbsp;&nbsp;&nbsp;Total current assets | 418709 | 426172 |
| Property, plant and equipment, net of accumulated depreciation | 83207 | 80687 |
| Operating right-of-use assets | 32025 | 23609 |
| Other assets | 7917 | 7763 |
| Intangible assets, net of accumulated amortization | 46687 | 52477 |
| Goodwill | 58143 | 58056 |
| **Total assets** | $**646688** | $**648764** |
| **<u>LIABILITIES AND SHAREHOLDERS' EQUITY</u>** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $45969 | $42960 |
| &nbsp;&nbsp;&nbsp;Current operating lease liabilities | 5041 | 4697 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 59712 | 81004 |
| &nbsp;&nbsp;&nbsp;Customer advances and deferred revenue | 27161 | 27491 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 137883 | 156152 |
| Long-term debt | 159276 | 168669 |
| Long-term operating lease liabilities | 31494 | 20508 |
| Other liabilities | 46464 | 47338 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 375117 | 392667 |
| Shareholders' equity: |  |  |
| Common stock | 381 | 380 |
| Accumulated other comprehensive loss | (1404) | (3863) |
| Other shareholders' equity | 272594 | 259580 |
| Total shareholders' equity | 271571 | 256097 |
| **Total liabilities and shareholders' equity** | $**646688** | $**648764** |

---

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 9**

---

| | | |
|:---|:---|:---|
| **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** |
| **<u>CONSOLIDATED CASH FLOWS DATA</u>** | **<u>CONSOLIDATED CASH FLOWS DATA</u>** | **<u>CONSOLIDATED CASH FLOWS DATA</u>** |
| | **<u>Six Months Ended</u>** | **<u>Six Months Ended</u>** |
| *(Unaudited, $ in thousands)* | **6/28/2025** | **6/29/2024** |
| **Cash flows from operating activities:** |  |  |
| Net income (loss) | $10842 | $(1645) |
| Adjustments to reconcile net income (loss) to cash from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 10966 | 12531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing fees | 1214 | 1695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions for non-cash losses on inventory and receivables | 2941 | 2415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity-based compensation expense | 3902 | 4642 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax benefit | (1125) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease non-cash expense | 3174 | 2562 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Simplification initiative-related non-cash charges | 6229 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash 401K contribution and quarterly bonus accrual |  | 3454 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash annual stock bonus accrual |  | 1448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (601) | 1827 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash flows from changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 5803 | (15281) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (1498) | (11398) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 2957 | (4661) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | (17064) | 9255 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | (10505) | (4487) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (2302) | (2447) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer advance payments and deferred revenue | (859) | (4280) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supplemental retirement plan liabilities | (202) | (209) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets and liabilities | (864) | 356 |
| Net cash provided (used) by operating activities | 13008 | (4223) |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (6710) | (3394) |
| Net cash used by investing activities | (6710) | (3394) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from long-term debt | 1143 | 15392 |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal payments on long-term debt | (11143) | (9498) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock award and employee stock purchase plan activity | (1730) | (3172) |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing-related costs | (740) | (1837) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | (76) | (80) |
| Net cash (used) provided by financing activities | (12546) | 805 |
| Effect of exchange rates on cash | 1280 | (109) |
| Decrease in cash and cash equivalents and restricted cash | (4968) | (6921) |
| Cash and cash equivalents and restricted cash at beginning of period | 18428 | 11313 |
| Cash and cash equivalents and restricted cash at end of period | $13460 | $4392 |

---

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 10**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** |
| **<u>SEGMENT SALES AND PROFIT</u>** | **<u>SEGMENT SALES AND PROFIT</u>** | **<u>SEGMENT SALES AND PROFIT</u>** | **<u>SEGMENT SALES AND PROFIT</u>** | **<u>SEGMENT SALES AND PROFIT</u>** |
| *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* |
|  | **<u>Three Months Ended</u>** | **<u>Three Months Ended</u>** | **<u>Six Months Ended</u>** | **<u>Six Months Ended</u>** |
|  | **6/28/2025** | **6/29/2024** | **6/28/2025** | **6/29/2024** |
| Sales |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Aerospace | $193647 | $176948 | $385035 | $340623 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less inter-segment | (21) | (5) | (34) | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Aerospace | 193626 | 176943 | 385001 | 340581 |
| &nbsp;&nbsp;&nbsp;Test Systems | 11341 | 21171 | 25933 | 42607 |
| &nbsp;&nbsp;&nbsp;Less inter-segment | (289) |  | (320) |  |
| &nbsp;&nbsp;&nbsp;Total Test Systems | 11052 | 21171 | 25613 | 42607 |
| Total consolidated sales | 204678 | 198114 | 410614 | 383188 |
| Segment gross profit and margins<sup>4</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Aerospace | 54891 | 54019 | 113374 | 98400 |
|  | *28.3 %* | *30.5 %* | *29.4 %* | *28.9 %* |
| &nbsp;&nbsp;&nbsp;Test Systems | (2064) | 1549 | 302 | 4682 |
|  | *(18.7) %* | *7.3 %* | *1.2 %* | *11.0 %* |
| Total gross profit | 52827 | 55568 | 113676 | 103082 |
| Segment operating profit and margins |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Aerospace | 18039 | 19280 | 40303 | 31377 |
|  | *9.3 %* | *10.9 %* | *10.5 %* | *9.2 %* |
| &nbsp;&nbsp;&nbsp;&nbsp;Test Systems | (6710) | (5336) | (8933) | (8415) |
|  | *(60.7) %* | *(25.2) %* | *(34.9) %* | *(19.8) %* |
| Total segment operating profit | 11329 | 13944 | 31370 | 22962 |
| &nbsp;&nbsp;&nbsp;Interest expense | 3097 | 5856 | 6247 | 11615 |
| &nbsp;&nbsp;&nbsp;Corporate expenses and other | 6381 | 6829 | 13098 | 14617 |
| Income (loss) before taxes | $1851 | $1259 | $12025 | $(3270) |

---

<sup>4</sup> During the first quarter of 2025, the Company changed its financial statement presentation of research and development costs. These costs were previously included within Cost of Products Sold and were a factor in arriving at Gross Profit. The prior period amounts for Cost of Product Sold and Gross Profit have been adjusted from their original presentation for comparability purposes.

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 11**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** |
| **<u>SALES BY MARKET</u>** | **<u>SALES BY MARKET</u>** | **<u>SALES BY MARKET</u>** | **<u>SALES BY MARKET</u>** | **<u>SALES BY MARKET</u>** | **<u>SALES BY MARKET</u>** | **<u>SALES BY MARKET</u>** | **<u>SALES BY MARKET</u>** |
| *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* |
|  | **<u>Three Months Ended</u>** | **<u>Three Months Ended</u>** | **<u>Three Months Ended</u>** | **<u>Six Months Ended</u>** | **<u>Six Months Ended</u>** | **<u>Six Months Ended</u>** | ***<u>2025 YTD</u>*** |
|  | **<u>6/28/2025</u>** | **<u>6/29/2024</u>** | **<u>% Change</u>** | **<u>6/28/2025</u>** | **<u>6/29/2024</u>** | **<u>% Change</u>** | **<u>% of Sales</u>** |
| **Aerospace Segment** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial Transport | $145573 | $128399 | 13.4% | $283115 | $249829 | 13.3% | 69.0% |
| &nbsp;&nbsp;&nbsp;Military Aircraft | 27433 | 24781 | 10.7% | 60696 | 41860 | 45.0% | 14.8% |
| &nbsp;&nbsp;&nbsp;General Aviation | 18370 | 19015 | (3.4)% | 33613 | 38566 | (12.8)% | 8.2% |
| &nbsp;&nbsp;&nbsp;Other | 2250 | 4748 | (52.6)% | 7577 | 10326 | (26.6)% | 1.8% |
| **Aerospace Total** | 193626 | 176943 | 9.4% | 385001 | 340581 | 13.0% | 93.8% |
| **Test Systems Segment** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Government & Defense | 11052 | 21171 | (47.8)% | 25613 | 42607 | (39.9)% | 6.2% |
| **Total Sales** | $204678 | $198114 | 3.3% | $410614 | $383188 | 7.2% |  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **<u>SALES BY PRODUCT LINE</u>** | **<u>SALES BY PRODUCT LINE</u>** | **<u>SALES BY PRODUCT LINE</u>** | **<u>SALES BY PRODUCT LINE</u>** | **<u>SALES BY PRODUCT LINE</u>** | **<u>SALES BY PRODUCT LINE</u>** | **<u>SALES BY PRODUCT LINE</u>** | **<u>SALES BY PRODUCT LINE</u>** |
| *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* |
|  | **<u>Three Months Ended</u>** | **<u>Three Months Ended</u>** | **<u>Three Months Ended</u>** | **<u>Six Months Ended</u>** | **<u>Six Months Ended</u>** | **<u>Six Months Ended</u>** | ***<u>2025 YTD</u>*** |
|  | **<u>6/28/2025</u>** | **<u>6/29/2024</u>** | **<u>% Change</u>** | **<u>6/28/2025</u>** | **<u>6/29/2024</u>** | **<u>% Change</u>** | **<u>% of Sales</u>** |
| **Aerospace Segment** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electrical Power & Motion | $95166 | $90328 | 5.4% | $195246 | $173452 | 12.6% | 47.7% |
| &nbsp;&nbsp;&nbsp;Lighting & Safety | 52999 | 46454 | 14.1% | 102670 | 88241 | 16.4% | 25.0% |
| &nbsp;&nbsp;&nbsp;Avionics | 37050 | 28971 | 27.9% | 65284 | 54565 | 19.6% | 15.9% |
| &nbsp;&nbsp;&nbsp;Systems Certification | 2836 | 3364 | (15.7)% | 7904 | 7812 | 1.2% | 1.9% |
| &nbsp;&nbsp;&nbsp;Structures | 3325 | 3078 | 8.0% | 6320 | 6185 | 2.2% | 1.5% |
| &nbsp;&nbsp;&nbsp;Other | 2250 | 4748 | (52.6)% | 7577 | 10326 | (26.6)% | 1.8% |
| **Aerospace Total** | 193626 | 176943 | 9.4% | 385001 | 340581 | 13.0% | 93.8% |
| **Test Systems Segment** | 11052 | 21171 | (47.8)% | 25613 | 42607 | (39.9)% | 6.2% |
| **Total Sales** | $204678 | $198114 | 3.3% | $410614 | $383188 | 7.2% |  |

---

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 12**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** |
| **<u>ORDER AND BACKLOG TREND</u>** | **<u>ORDER AND BACKLOG TREND</u>** | **<u>ORDER AND BACKLOG TREND</u>** | **<u>ORDER AND BACKLOG TREND</u>** | **<u>ORDER AND BACKLOG TREND</u>** | **<u>ORDER AND BACKLOG TREND</u>** |
| *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* |
|  | **Q3 2024** | **Q4 2024** | **Q1 2025** | **Q2 2025** | **Trailing Twelve Months** |
|  | **9/28/2024** | **12/31/2024** | **3/29/2025** | **6/28/2025** | **6/28/2025** |
| **Sales** |  |  |  |  |  |
| Aerospace | $177554 | $188549 | $191375 | $193626 | $751104 |
| Test Systems | 26144 | 19991 | 14561 | 11052 | 71748 |
| Total Sales | $**203698** | $**208540** | $**205936** | $**204678** | $**822852** |
| **Bookings** |  |  |  |  |  |
| Aerospace | $173569 | $182474 | $267715 | $150636 | $774394 |
| Test Systems | 15597 | 13430 | 12011 | 26390 | 67428 |
| Total Bookings | $**189166** | $**195904** | $**279726** | $**177026** | $**841822** |
| **Backlog** |  |  |  |  |  |
| Aerospace | $543638 | $537563 | $613903 | $570913 |  |
| Test Systems | 68227 | 61666 | 59116 | 74454 |  |
| Total Backlog | $**611865** | $**599229** | $**673019** | $**645367** | N/A |
| **Book:Bill Ratio** |  |  |  |  |  |
| Aerospace | 0.98 | 0.97 | 1.40 | 0.78 | 1.03 |
| Test Systems | 0.60 | 0.67 | 0.82 | 2.39 | 0.94 |
| Total Book:Bill | **0.93** | **0.94** | **1.36** | **0.86** | **1.02** |

---

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 13**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** |
| **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** |
| *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* |
|  | **<u>Consolidated</u>** | **<u>Consolidated</u>** | **<u>Consolidated</u>** | **<u>Consolidated</u>** |
|  | **<u>Three Months Ended</u>** | **<u>Three Months Ended</u>** | **<u>Six Months Ended</u>** | **<u>Six Months Ended</u>** |
|  | **6/28/2025** | **6/29/2024** | **6/28/2025** | **6/29/2024** |
| Net income (loss) | $1314 | $1533 | $10842 | $(1645) |
| Add back (deduct): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 3097 | 5856 | 6247 | 11615 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 537 | (274) | 1183 | (1625) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 5378 | 6203 | 10966 | 12531 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity-based compensation expense | 1557 | 1840 | 3902 | 4642 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash 401K contribution and quarterly bonus accrual |  |  |  | 3454 |
| &nbsp;&nbsp;&nbsp;&nbsp;Simplification and restructuring initiatives | 6229 | 657 | 6508 | 774 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal reserve, settlements and recoveries | 3504 |  | 9732 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Litigation-related legal expenses | 2753 | 4428 | 5728 | 8122 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warranty reserve | 1039 |  | 1039 |  |
| Adjusted EBITDA<sup>5</sup> | $**25408** | $**20243** | $**56147** | $**37868** |
| Sales | $204678 | $198114 | $410614 | $383188 |
| Adjusted EBITDA margin % | *12.4 %* | *10.2 %* | *13.7 %* | *9.9 %* |

---

Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by sales. Adjusted EBITDA and Adjusted EBITDA Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company's financial statements.

<sup>5</sup> In the first quarter 2024, it was assumed that annual incentive compensation would be paid in stock, and thus such amount ($1.4 million) was presented as an addback for Adjusted EBITDA purposes. In the fourth quarter of 2024, it was concluded that all annual incentive compensation amounts would be paid in cash, and thus the addback for the full year 2024 was eliminated. For comparative purposes, the addback was retrospectively removed from the calculation of Adjusted EBITDA for the six months ended June 29, 2024.

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 14**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** |
| **<u>RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT</u>** | **<u>RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT</u>** | **<u>RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT</u>** | **<u>RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT</u>** | **<u>RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT</u>** |
| *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* |
|  | **<u>Consolidated</u>** | **<u>Consolidated</u>** | **<u>Consolidated</u>** | **<u>Consolidated</u>** |
|  | **<u>Three Months Ended</u>** | **<u>Three Months Ended</u>** | **<u>Six Months Ended</u>** | **<u>Six Months Ended</u>** |
|  | **6/28/2025** | **6/29/2024** | **6/28/2025** | **6/29/2024** |
| Gross profit | $52827 | $55568 | $113676 | $103082 |
| Add back: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Simplification and restructuring initiatives | 5807 |  | 5807 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Warranty reserve | 1039 |  | 1039 |  |
| Adjusted gross profit | $**59673** | $**55568** | $**120522** | $**103082** |
| Sales | $204678 | $198114 | $410614 | $383188 |
| Gross margin | *25.8 %* | *28.0 %* | *27.7 %* | *26.9 %* |
| Adjusted gross margin | *29.2 %* | *28.0 %* | *29.4 %* | *26.9 %* |

---

Adjusted Gross Profit is defined as gross profit as reported, adjusted for certain items. Adjusted Gross Profit Margin is defined as Adjusted Gross Profit divided by sales. Adjusted Gross Profit and Adjusted Gross Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Gross Profit and Adjusted Gross Profit Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Gross Profit and Adjusted Gross Profit Margin, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's and current year's gross profit and gross profit margin to the historical periods' gross profit, as well as facilitates a more meaningful comparison of the Company's gross profit and gross profit margin to that of other companies.

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 15**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** |
| **<u>RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME</u>** | **<u>RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME</u>** | **<u>RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME</u>** | **<u>RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME</u>** | **<u>RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME</u>** |
| *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* |
|  | **<u>Consolidated</u>** | **<u>Consolidated</u>** | **<u>Consolidated</u>** | **<u>Consolidated</u>** |
|  | **<u>Three Months Ended</u>** | **<u>Three Months Ended</u>** | **<u>Six Months Ended</u>** | **<u>Six Months Ended</u>** |
|  | **6/28/2025** | **6/29/2024** | **6/28/2025** | **6/29/2024** |
| Income from operations | $4758 | $7550 | $17895 | $9216 |
| Add back: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Simplification and restructuring initiatives | 6229 | 657 | 6508 | 774 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal reserve, settlements and recoveries | 3504 |  | 9732 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Litigation-related legal expenses | 2753 | 4428 | 5728 | 8122 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warranty reserve | 1039 |  | 1039 |  |
| Adjusted operating income | $**18283** | $**12635** | $**40902** | $**18112** |
| Sales | $204678 | $198114 | $410614 | $383188 |
| Operating margin | *2.3 %* | *3.8 %* | *4.4 %* | *2.4 %* |
| Adjusted operating margin | *8.9 %* | *6.4 %* | *10.0 %* | *4.7 %* |

---

Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current periods' income from operations to the historical periods' income from operations and operating margin, as well as facilitates a more meaningful comparison of the Company's income from operations and operating margin to that of other companies.

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 16**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** |
| **<u>RECONCILIATION OF NET INCOME (LOSS) AND DILUTED EARNINGS (LOSS) PER SHARE <br>TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) AND DILUTED EARNINGS (LOSS) PER SHARE <br>TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) AND DILUTED EARNINGS (LOSS) PER SHARE <br>TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) AND DILUTED EARNINGS (LOSS) PER SHARE <br>TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) AND DILUTED EARNINGS (LOSS) PER SHARE <br>TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE</u>** |
| *(Unaudited, $ in thousands except per share amounts)* | *(Unaudited, $ in thousands except per share amounts)* | *(Unaudited, $ in thousands except per share amounts)* | *(Unaudited, $ in thousands except per share amounts)* | *(Unaudited, $ in thousands except per share amounts)* |
|  | **<u>Consolidated</u>** | **<u>Consolidated</u>** | **<u>Consolidated</u>** | **<u>Consolidated</u>** |
|  | **<u>Three Months Ended</u>** | **<u>Three Months Ended</u>** | **<u>Six Months Ended</u>** | **<u>Six Months Ended</u>** |
|  | **6/28/2025** | **6/29/2024** | **6/28/2025** | **6/29/2024** |
| Net income (loss) | $1314 | $1533 | $10842 | $(1645) |
| Add back (deduct): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangibles | 2945 | 3269 | 5920 | 6539 |
| &nbsp;&nbsp;&nbsp;&nbsp;Simplification and restructuring initiatives | 6229 | 657 | 6508 | 774 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal reserve, settlements and recoveries | 3504 |  | 9732 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Litigation-related legal expenses | 2753 | 4428 | 5728 | 8122 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warranty reserve | 1039 |  | 1039 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Normalize tax rate<sup>6</sup> | (4043) | (2677) | (9055) | (4666) |
| Adjusted net income | $**13741** | $**7210** | $**30714** | $**9124** |
| Weighted average diluted shares outstanding (in thousands) | 36368 | 35547 | 36059 | 34936 |
| Diluted earnings (loss) per share | $0.04 | $0.04 | $0.30 | $(0.05) |
| Adjusted diluted earnings per share | $0.38 | $0.20 | $0.85 | $0.26 |

---

Adjusted Net Income and Adjusted Diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Net Income and Adjusted Diluted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Net Income and Adjusted Diluted EPS, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current periods' net income and diluted EPS to the historical periods' net income and diluted EPS, as well as facilitates a more meaningful comparison of the Company's net income and diluted EPS to that of other companies. The Company believes that presenting Adjusted Diluted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company's strategy to grow through acquisitions as well as organically.

<sup>6</sup> Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 17**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** |
| **<u>RECONCILIATION OF SEGMENT OPERATING PROFIT TO ADJUSTED SEGMENT OPERATING PROFIT</u>** | **<u>RECONCILIATION OF SEGMENT OPERATING PROFIT TO ADJUSTED SEGMENT OPERATING PROFIT</u>** | **<u>RECONCILIATION OF SEGMENT OPERATING PROFIT TO ADJUSTED SEGMENT OPERATING PROFIT</u>** | **<u>RECONCILIATION OF SEGMENT OPERATING PROFIT TO ADJUSTED SEGMENT OPERATING PROFIT</u>** | **<u>RECONCILIATION OF SEGMENT OPERATING PROFIT TO ADJUSTED SEGMENT OPERATING PROFIT</u>** |
| *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* |
|  | **<u>Three Months Ended</u>** | **<u>Three Months Ended</u>** | **<u>Six Months Ended</u>** | **<u>Six Months Ended</u>** |
|  | **6/28/2025** | **6/29/2024** | **6/28/2025** | **6/29/2024** |
| Aerospace operating profit | $18039 | $19280 | $40303 | $31377 |
| &nbsp;&nbsp;&nbsp;Simplification and restructuring initiatives | 6229 |  | 6508 |  |
| &nbsp;&nbsp;&nbsp;Legal reserve, settlements and recoveries | 3504 |  | 9732 |  |
| &nbsp;&nbsp;&nbsp;Litigation-related legal expenses | 2676 | 4222 | 4920 | 7756 |
| &nbsp;&nbsp;&nbsp;Warranty reserve | 1039 |  | 1039 |  |
| Adjusted Aerospace operating profit | $**31487** | $**23502** | $**62502** | $**39133** |
| Aerospace sales | $193626 | $176943 | $385001 | $340581 |
| &nbsp;&nbsp;&nbsp;Aerospace margin | *9.3 %* | *10.9 %* | *10.5 %* | *9.2 %* |
| &nbsp;&nbsp;&nbsp;Adjusted Aerospace margin | *16.3 %* | *13.3 %* | *16.2 %* | *11.5 %* |
| Test Systems operating loss | $(6710) | $(5336) | $(8933) | $(8415) |
| &nbsp;&nbsp;&nbsp;Simplification and restructuring initiatives |  | 657 |  | 774 |
| &nbsp;&nbsp;&nbsp;Litigation-related legal expenses | 77 | 206 | 808 | 366 |
| Adjusted Test Systems operating loss | $**(6633)** | $**(4473)** | $**(8125)** | $**(7275)** |
| Test Systems sales | $11052 | $21171 | $25613 | $42607 |
| &nbsp;&nbsp;&nbsp;Test Systems margin | *(60.7) %* | *(25.2) %* | *(34.9) %* | *(19.8) %* |
| &nbsp;&nbsp;&nbsp;Adjusted Test Systems margin | *(60.0) %* | *(21.1) %* | *(31.7) %* | *(17.1) %* |

---

Adjusted Segment Operating Profit is defined as segment operating profit as reported, adjusted for certain items. Adjusted Segment Margin is defined as Adjusted Segment Operating Profit divided by segment sales. Adjusted Segment Operating Profit and Adjusted Segment Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Segment Operating Profit and Adjusted Segment Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Segment Operating Profit and Adjusted Segment Margin, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current periods' segment operating profit to the historical periods' segment operating profit and segment margin, as well as facilitates a more meaningful comparison of the Company's segment operating profit and segment margin to that of other companies.

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 18**

**<u>Supplemental Prior Period Tables</u>**

The following tables are to provide the Net Income (Loss) to Adjusted EBITDA Non-GAAP reconciliation information by quarter for the trailing twelve months ending June 28, 2025 and June 29, 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** |
| **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** |
| *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* |
|  | **Q3 2024** | **Q4 2024** | **Q1 2025** | **Q2 2025** | **Trailing Twelve Months** |
|  | **9/28/2024** | **12/31/2024** | **3/29/2025** | **6/28/2025** | **6/28/2025** |
| Net income (loss) | $(11738) | $(2832) | $9528 | $1314 | $(3728) |
| Add back (deduct): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 6217 | 4166 | 3150 | 3097 | 16630 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense benefit | 6565 | 3408 | 646 | 537 | 11156 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 6041 | 5894 | 5588 | 5378 | 22901 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity-based compensation expense | 1772 | 2157 | 2345 | 1557 | 7831 |
| &nbsp;&nbsp;&nbsp;&nbsp;Early retirement penalty waiver |  | 624 |  |  | 624 |
| &nbsp;&nbsp;&nbsp;&nbsp;Simplification and restructuring initiatives | 259 | 1411 | 279 | 6229 | 8178 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal reserve, settlements and recoveries | (332) | 4762 | 6228 | 3504 | 14162 |
| &nbsp;&nbsp;&nbsp;&nbsp;Litigation-related legal expenses | 5558 | 6066 | 2975 | 2753 | 17352 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 6987 | 3161 |  |  | 10148 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash reserves for customer bankruptcy | 2203 | 1032 |  |  | 3235 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warranty reserve | 3527 | 1690 |  | 1039 | 6256 |
| Adjusted EBITDA | $**27059** | $**31539** | $**30739** | $**25408** | $**114745** |

---

Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA is not a measure determined in accordance with GAAP and may not be comparable with Adjusted EBITDA as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted EBITDA, is important for investors and other readers of the Company's financial statements.

-MORE-

------

**Astronics Corporation Reports Record Aerospace Segment Sales in 2025 Second Quarter**

**August 6, 2025**

**Page 19**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** | **ASTRONICS CORPORATION** |
| **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** | **<u>RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA</u>** |
| *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* | *(Unaudited, $ in thousands)* |
|  | **Q3 2023** | **Q4 2023** | **Q1 2024** | **Q2 2024** | **Trailing Twelve Months** |
|  | **9/30/2023** | **12/31/2023** | **3/30/2024** | **6/29/2024** | **6/29/2024** |
| Net income (loss) | $(16983) | $6976 | $(3178) | $1533 | $(11652) |
| Add back (deduct): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 5991 | 5947 | 5759 | 5856 | 23553 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | (3835) | (5442) | (1351) | (274) | (10902) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 6385 | 6346 | 6328 | 6203 | 25262 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity-based compensation expense | 1611 | 1595 | 2802 | 1840 | 7848 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash annual stock bonus accrual |  | 2806 |  |  | 2806 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash 401K contribution and quarterly bonus accrual | 1237 | 2776 | 3454 |  | 7467 |
| &nbsp;&nbsp;&nbsp;&nbsp;Simplification and restructuring initiatives |  |  | 117 | 657 | 774 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal reserve, settlements and recoveries | (1227) |  |  |  | (1227) |
| &nbsp;&nbsp;&nbsp;&nbsp;Litigation-related legal expenses | 4574 | 3826 | 3694 | 4428 | 16522 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash reserves for customer bankruptcy | 11074 |  |  |  | 11074 |
| Adjusted EBITDA | $**8827** | $**24830** | $**17625** | $**20243** | $**71525** |

---

Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA is not a measure determined in accordance with GAAP and may not be comparable with Adjusted EBITDA as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted EBITDA, is important for investors and other readers of the Company's financial statements.

-###-