Army order, eVTOL win, and blowout Q2 lift Astronics
Army radio test set order starts full-rate production Astronics won a $44.7 million Army order for radio test sets, kicking off full-rate production under a $215 million contract with $145 million still to come. That adds steady defense revenue and supports the record backlog, pushing the stock up.
New contract award is a concrete demand driver behind the stock's rise.
Selected for Vertical Aerospace eVTOL power system Astronics will supply the low-voltage power distribution system for Vertical Aerospace's Valo eVTOL under a long-term deal, with hardware already flying on test aircraft. It opens a new electric-aircraft market, a small but promising future revenue stream.
New customer win expands Astronics into the eVTOL market.
Q2 earnings blow past forecasts, guidance raised Astronics reported $0.70 per share on $260 million sales, beating the $0.54 and $245.8 million expected, with sales up 27%. It guided Q3 to $265-275 million and full-year above $1 billion, sending the stock up about 16% that day.
The earnings beat and raised guidance are the biggest new price driver this period.
Strong results but rich valuation after the jump Backlog hit $780.6 million with book-to-bill near 1.2 and management expects positive free cash flow by end-2026. But after the spike the stock trades above 72 times free cash flow, a rich price that leaves little room for stumbles.
Gives the fair counterweight: strong operations versus stretched valuation.