AstroNova, Inc. Q1 FY2026 earnings call

• Strategy drivers: Aerospace segment rapidly transitioning to ToughWriter printers, launch of highly disruptive next-generation product identification solutions, and further streamlining operations through headcount reductions and restructuring. - Quarterly highlights: Delivered double-digit growth in both segments, increased consolidated adjusted operating income by 13.5%, accelerated $3 million annualized cost reduction plan with $1.9 million completed in the quarter, launched three next-generation product ID solutions ahead of schedule, renewed a $10 million multiyear contract in aerospace, uptrained and upgraded the sales team, and restructured the go-to-market approach.

Product Identification: Revenue increased 13.8% year over year, driven by $1.4 million incremental Emtek sales and higher demand for tabletop direct-to-package printers and supplies. 83% of the quarter's revenue was recurring. Aerospace: Revenue grew 16.8% year over year, with increased printer shipments to a major OEM and carryover of shipments to a defense contractor under the recently renewed contract. ToughWriter aerospace printers were 42% of the first-quarter shipments.

Full year revenue expected in the range of $160 million to $165 million and adjusted EBITDA margin in the range of 8.5% to 9.5%. Reiterated guidance for fiscal 2026 with revenue expected to be between $160 million and $165 million and adjusted EBITDA margin between 8.5% and 9.5%.

• Tariffs: Impacts have been negligible so far. Aerospace shipments insulated by contracts, product ID has flexibility in supply costs, implemented price increases and tariff surcharges in April and May respectively, and looking for alternative suppliers to minimize cost impacts.