Astronics (ATRO) Jefferies Global Industrials Conference 2026 summary

Business profile and strategic direction

• Aerospace represents ~90% of revenue and Test ~10%; commercial transport contributes ~70% of volume, government/defense ~20%, and business jets ~10% on a TTM basis.

• Strong positions across commercial aerospace, general aviation, and defense; ~70% of sales go to commercial aircraft, with a balanced line-fit and retrofit mix.

• Recovery from the prior downturn is complete; rising aircraft production and demand for passenger connectivity and premium seating support a new growth phase.

• Serves 290+ airlines and major aerospace and defense manufacturers; growth focus includes innovation, collaboration, and targeted acquisitions.

Q2 performance and financial outlook

• Record Q2 sales of $260 million rose 27% YoY; IFEC grew 19%, Seat Motion exceeded $22 million and grew 59% organically, and flight-critical power grew 49%.

• Record bookings of $306 million and 1.18x book-to-bill lifted backlog to a third consecutive record of $781 million; orders included $27 million for MV-75 development and a $44 million Army radio award.

• Gross profit was $86.9 million and gross margin 33.4%, up 760 bps YoY; record operating income was $40.5 million, with adjusted operating income of $43.2 million.

• H1 adjusted net income more than doubled to $32.6 million, or $0.70 per diluted share; adjusted EBITDA more than doubled to $51.5 million, with a 19.8% margin versus 12.4% YoY.

• FY26 revenue guidance was raised to $1.02 billion-$1.04 billion; Q3 guidance is $265 million-$275 million, with Q4 expected to be modestly higher.

Products and growth programs

• In-seat power has ~90% market share; 90% of wide-body and ~65% of narrow-body aircraft have some form of in-seat power. Systems power 2 million+ seats across 290+ airlines.

• Seat Motion revenue is expected to double in 2026, with backlog supporting growth into 2027 and 2028; Bühler Motor Aviation brings ~30% share in premium seating systems.

• MV-75 FLRAA includes the full electrical distribution system; development includes ~$1 million per-aircraft modeling and a ~$120 million funded effort.

• A $44 million Army radio-test production award begins an anticipated four- to five-year run; the broader IDIQ is ~$215 million, with $145 million remaining and expected 2026 test revenue of ~$90 million.

• Flight-critical power targets smaller aircraft, drones, and eVTOL; permanent-magnet and induction machines can last up to 30,000 hours versus <1,000 hours for traditional machines.