3 days ago
AstroNova Inc (ALOT) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue: $37.7 million, up 14.4% year-over-year and 0.9% sequentially.
Recurring Revenue: 83% of the quarter's revenue.
Product Identification Revenue Growth: 13.8% year-over-year.
Aerospace Revenue Growth: 16.8% year-over-year.
Gross Profit: $12.7 million, representing 33.6% of sales.
Adjusted Gross Profit: $13.1 million, representing 34.6% of sales.
Net Loss: $0.4 million or a negative $0.05 per share.
Adjusted Net Income: $0.4 million or $0.05 per share.
Adjusted EBITDA: $3.1 million, a 27.6% increase year-over-year.
Adjusted EBITDA Margin: Increased by 80 basis points year-over-year.
Debt Reduction: Paid down $3.9 million in debt.
Total Liquidity: $12.6 million, including $5.4 million in cash.
Cash Provided by Operations: $4.4 million.
Capital Expenditures: $60,000 for the quarter.
Full Year Revenue Guidance: $160 million to $165 million.
Full Year Adjusted EBITDA Margin Guidance: 8.5% to 9.5%.
Warning! GuruFocus has detected 6 Warning Signs with ALOT.
Release Date: June 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
AstroNova Inc (NASDAQ:ALOT) reported a 14.4% year-over-year revenue growth for the first quarter, indicating strong performance.
The company successfully launched three next-generation product identification solutions ahead of schedule, which are receiving strong customer interest.
AstroNova Inc (NASDAQ:ALOT) secured a renewed $10 million multiyear contract for its ToughWriter products, enhancing its position in the aerospace market.
The company accelerated its $3 million annualized cost reduction plan, achieving $1.9 million in savings in the first quarter.
AstroNova Inc (NASDAQ:ALOT) reported a 27.6% increase in adjusted EBITDA, reflecting improved operational efficiency and profitability.
Net loss for the quarter was $0.4 million, compared to a net income of $1.2 million in the prior year period.
Backlog declined by $2.8 million year-over-year, primarily due to clearing previously delayed shipments.
Aerospace orders declined by $1.5 million, partially offsetting overall order growth.
Gross margin was negatively impacted by dilution related to the acquisition and legacy aerospace printer contracts.
Cash provided by operations decreased to $4.4 million from $6.9 million in the prior year period, driven by timing issues related to inventory replenishment.
Q: Can you elaborate on the strategic drivers for AstroNova's growth? A: Gregory Woods, President and CEO, highlighted three strategic drivers: transitioning aerospace customers to high-performance ToughWriter printers, launching next-generation product identification solutions, and streamlining operations through restructuring and headcount reductions. These initiatives aim to improve profitability and leverage market opportunities.
Q: How did AstroNova perform financially in the first quarter of fiscal 2026? A: Tom DeByle, CFO, reported a 14.4% year-over-year revenue growth to $37.7 million, with a 13.5% increase in consolidated adjusted operating income. The growth was driven by the ToughWriter transition, increased demand for desktop label printers, and contributions from last year's acquisition.
Q: What are the expectations for AstroNova's revenue and EBITDA margin for the full fiscal year 2026? A: Gregory Woods stated that AstroNova expects to deliver full-year revenue between $160 million and $165 million, with an adjusted EBITDA margin ranging from 8.5% to 9.5%.
Q: What new products were launched in Q1, and what impact are they expected to have? A: AstroNova launched three next-generation product identification solutions: the QL-425, QL-435, and AJ-800. These products are expected to drive growth by unlocking new markets and improving supply chain control, thereby reducing costs and increasing sales.
Q: How is AstroNova addressing the impact of tariffs on its business? A: Gregory Woods explained that the impact of tariffs has been negligible due to existing contracts that hedge exposure and a flexible global supply chain. The company has implemented price increases and tariff surcharges to mitigate potential cost impacts.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
