Key Highlights

  • Third-quarter sales rose 28.5% to a record USD 271.7 million, and Net Income was USD 52.2 million, or USD 1.08 per diluted share, against a loss of USD 0.26 a year earlier.
  • Adjusted EBITDA climbed 81.4% to USD 59.3 million, a Margin of 21.8% of sales, while adjusted Operating Margin reached 18.8% from 12.3% in the prior-year quarter. Nine-month adjusted EBITDA was USD 148.8 million.
  • Backlog ended the quarter at USD 780.0 million, with bookings of USD 271.1 million giving a book-to-bill ratio of 1.00, and Aerospace book-to-bill at 1.05.
  • Management maintained 2026 Revenue guidance of USD 1.02 billion to USD 1.04 billion, with fourth-quarter sales expected at USD 255 million to USD 275 million.

Record Sales and Operating Income in the Third Quarter

Astronics (NASDAQ:ATRO) reported results for the quarter ended October 3, 2026 on November 10, 2026. Sales rose to USD 271.7 million from USD 211.4 million, and income from operations was a record USD 54.0 million, or 19.9% of sales, against USD 23.1 million. Adjusted net income (non-GAAP) was USD 38.9 million, or USD 0.81 a diluted share on the call, versus USD 19.4 million. GAAP net income of USD 52.2 million included a USD 4.4 million legal refund and a USD 1.9 million Tariff refund. The prior-year quarter carried a USD 32.6 million loss on settlement of debt. Gross margin widened 410 basis points to 34.6%, and nine-month sales reached USD 762.3 million, up 22.5%.

Aerospace Leads While Test Systems Turns Profitable

Astronics supplies power, connectivity, lighting and test technology to aerospace and defense customers. Aerospace sales grew 27.4% to a record USD 245.5 million, with an operating margin of 23.4% (adjusted 22.5%). Commercial Transport sales rose 28.8%, General Aviation 51.7% and Military Aircraft 5.3%. Test Systems sales rose 40.0% to USD 26.2 million, with operating profit of USD 3.9 million against near break-even, helped by USD 5.3 million of revenue from the Army radio test program, which is expected to reach full rate production in the first quarter of 2027. Aerospace bookings were USD 258.3 million and its Backlog was a record USD 670.0 million.

Cash Flow, Debt and the Guidance Math

Cash from operations was USD 25.8 million, as higher receivables and inventory built for expected 2027 revenue absorbed part of the earnings. Long-term debt fell to USD 284.8 million, and Liquidity was USD 278.0 million, including USD 14.2 million of cash. The company said about 83% of backlog should convert to revenue within twelve months. Management said on the call it could release USD 35 million to USD 40 million of its tax valuation allowance in the fourth quarter. Risks include aircraft build rates, Supply chain execution and timing of orders, and fourth-quarter sales may be modestly lighter than the third. Capital spending was USD 4.2 million in the quarter.

Where Things Stand

The swing came from a record Top Line meeting wider margins, not from one-off gains alone. Astronics (NASDAQ:ATRO) moved from a net loss to USD 1.08 a share on GAAP, and adjusted EBITDA nearly doubled in margin terms to 21.8%, with the legal and tariff items adding to reported profit. Cash conversion lagged Earnings because of inventory. Watch the fourth-quarter outcome against the USD 255 million to USD 275 million range, the Test Systems ramp and any tax allowance release.