Astronics Extends Record Sales Streak With Wider Margins

The Tip Desk · November 12, 2026 · 4 min read

Third-quarter sales reached a record $271.7 million, up 28.5%, as operating income hit $54.0 million and Aerospace operating margin reached 23.4%.

Astronics Corporation (ATRO), a supplier of advanced technologies to aerospace, defense and other mission-critical industries, reported record third-quarter sales of $271.7 million, up 28.5% from a year earlier.

The year-over-year sales increase accelerated from 27.0% growth to $260.0 million in the second quarter and 12.0% growth to $230.6 million in the first quarter. Income from operations was a record $54.0 million, or 19.9% of sales, after $40.5 million, or 15.6% of sales, in the second quarter. Adjusted operating income was $51.0 million, or 18.8% of sales.

Net income was $52.2 million, or $1.08 a share, compared with a net loss of $0.26 a share a year earlier. The prior-year loss included a $32.6 million loss on settlement of debt from costs of a partial repurchase of convertible notes due in 2030. Adjusted EBITDA was $59.3 million, or a record 21.8% of sales.

Gross profit rose to $94.0 million, and gross margin expanded 410 basis points to 34.6% of sales. The company said gross-profit growth and margin expansion were primarily attributable to higher volume, improved productivity, and $1.9 million in tariff refunds. Selling, general and administrative expenses decreased $0.5 million.

A favorable outcome in a UK patent-infringement appeal produced a refund of about $4.4 million in damages and associated legal fees, and the company received a $1.0 million favorable settlement from an unrelated matter. Those benefits were largely offset by higher wages and benefits, higher incentive-based compensation tied to increased profitability, and incremental expenses related to the Bühler Motor Aviation business acquired in October 2025. Operating margin expanded 900 basis points and adjusted operating margin expanded 650 basis points, the company said, reflecting operating leverage from higher volume and improved productivity in Aerospace and improved performance in Test Systems.

Aerospace sales were a record $245.5 million, up 27.4% from a year earlier. Commercial Transport sales were $192.2 million, with growth the company said was primarily related to inflight entertainment and connectivity, seat motion and lighting, and safety products. General Aviation sales were $21.1 million and Military Aircraft sales were $29.0 million. Seat Motion product-line sales were $24.9 million. Aerospace operating profit was $57.6 million, or 23.4% of sales, a 720-basis-point improvement. Adjusted Aerospace operating profit was $55.1 million, or 22.5% of sales. Aerospace bookings were $258.3 million for a book-to-bill of 1.05, which the company said was over 1:1 for five consecutive quarters. Aerospace backlog was a record $670.0 million.

Test Systems sales were $26.2 million, up 40.0% from the year-ago quarter, driven by order flow and production on the U.S. Army’s TS-4549/T Radio Test program, which generated $5.3 million of revenue in the quarter. That was partially offset by a $2.2 million revision of estimated costs to complete certain long-term mass-transit contracts. Test Systems operating profit was $3.9 million, or a 14.7% margin, compared with near break-even a year earlier. The company said the TS-4549/T program is expected to reach full-rate production in the first quarter of 2027. Test Systems bookings were $12.8 million for a book-to-bill of 0.49. Test Systems backlog was $109.9 million.

Consolidated bookings were $271.1 million for a book-to-bill of 1.00, after record bookings of $306.2 million in the second quarter. Backlog at quarter-end was $780.0 million, of which the company said approximately 83% is expected to convert to revenue over the next twelve months.

Cash provided by operations was $25.8 million. Long-term debt decreased $25.6 million from the end of the second quarter to $284.8 million. Available liquidity was $278.0 million, including $14.2 million in available cash and $263.8 million of revolver availability. Capital expenditures in the quarter were $4.2 million.

Astronics is maintaining 2026 revenue guidance of $1.02 billion to $1.04 billion, a range it raised in the second quarter. Fourth-quarter sales are expected to be $255 million to $275 million. Chairman, President and Chief Executive Officer Peter J. Gundermann said the company expects a solid fourth quarter to close out a year of strong growth and substantially improved profitability, and that a preliminary outlook for 2027 suggests another year of strong double-digit growth. The company estimates future IEEPA tariff refunds will range from $5 million to $6 million.