Astronics Corporation Receives Production Order for TS-4549/T Radio Test Sets Program

Key Terms

indefinite delivery, indefinite quantity regulatory

An indefinite delivery, indefinite quantity agreement is a standing contract that lets a buyer place orders over a set period without committing to exact quantities or delivery dates up front; think of it as a blank check for future purchases within agreed limits. For investors, it signals potential recurring revenue and a longer sales runway because the seller can receive multiple orders, but it also leaves some uncertainty in timing and total sales, so forecasts and valuation must account for that variability.

idiq regulatory

An IDIQ (Indefinite Delivery/Indefinite Quantity) is a type of government procurement contract that sets terms and maximum limits for buying goods or services over a period without specifying exact delivery dates or quantities up front. For investors, an IDIQ signals a potential steady revenue stream and easier repeat business because it gives a company preferred access to future orders under agreed terms—think of it as a standing shopping account that can generate unpredictable but recurring sales.

full rate production technical

Full rate production is the point at which a company moves from testing and limited runs to steady, ongoing manufacture of a product at its planned capacity. For investors it signals that production problems are largely solved and the company can reliably make and sell the expected volume, which often leads to steadier revenue, lower unit costs and clearer forecasts—like a bakery switching from trial batches to baking the full number of loaves for daily sales.

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EAST AURORA, N.Y.--(BUSINESS WIRE)-- Astronics Corporation (Nasdaq: ATRO), a leading provider of advanced technologies for global aerospace, defense and other mission critical industries, announced today that the U.S. Army has issued a purchase order to Astronics Test Systems for the TS-4549/T Radio Test Sets Program. The order initiates the full rate production stage of the program and is for $44.7 million. The order is expected to cover deliveries over the next 20 months.

The U.S. Army originally awarded Astronics an Indefinite Delivery, Indefinite Quantity (IDIQ) contract for the TS-4549/T program in June of 2024. The program was originally funded at $215 million, of which $145 million remains after today’s announcement.

Jim Mulato, President of Astronics Test Systems, said, “We are proud to be partnered with the U.S. Army on this important program, and are excited to begin full rate production. The volume ramp will be challenging, but our team is prepared and ready for it. Our goal is to execute the current order effectively and efficiently, paving the way for additional production orders in the future.”

ABOUT ASTRONICS CORPORATION

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, militaries, 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. For more information on Astronics and its solutions, visit Astronics.com.

Safe Harbor Statement

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” or other similar expressions and include all statements with regard production efficiencies and future potential production orders. 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 ability to ramp to full rate production and effectively meet production order requirements, the likelihood of receiving future production orders and other factors which are described in filings by Astronics with the Securities and Exchange Commission. Except as may be 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260526507853/en/

For more information, contact:
Company
Nancy L. Hedges, CFO
Astronics Corporation
T: 716.805.1599

Investors
Deborah K. Pawlowski
Alliance Advisors LLC
T: 716.843.3908
dpawlowski@allianceadvisors.com

Source: Astronics Corporation