Astronics (ATRO) Q2 2026 earnings summary

Executive summary

• Achieved record second quarter results with all-time highs in revenue, operating profit, bookings, and backlog, driven by strong Aerospace demand, operational execution, and the Bühler Motor Aviation acquisition.

• Adjusted EBITDA margin reached 19.8%, a modern-day high, reflecting significant margin improvement from prior years.

• Raised full-year revenue guidance to $1.02 billion–$1.04 billion, crossing the billion-dollar threshold for the first time and supporting a positive growth outlook.

• Bookings hit a record $306.2 million, with a book-to-bill ratio of 1.18 and backlog at $780.6 million, the third consecutive record quarter.

• Cash from operations was $30.1 million; long-term debt reduced by $24.1 million to $310.3 million.

Financial highlights

• Q2 sales reached $260 million, up 27% year-over-year; gross profit was $86.9 million (33.4% of sales), up from $52.8 million (25.8%).

• Net income was $35.1 million ($0.75 per diluted share); adjusted net income was $32.6 million ($0.70 per share).

• Adjusted EBITDA was $51.5 million, more than double the prior year; adjusted EBITDA margin expanded 340 bps sequentially to 19.8%.

• Operating income was $40.5 million (15.6% of sales); adjusted operating income was $43.2 million (16.6% margin), up 136.4% year-over-year.

• Interest expense declined 24.7% year-over-year due to refinancing.

Outlook and guidance

• Q3 sales expected in the $265 million–$275 million range, with Q4 revenue to improve modestly.

• Full-year revenue guidance raised to $1.02 billion–$1.04 billion; 82% of record backlog expected to convert to revenue over the next 12 months.

• Margins expected to benefit from volume leverage, U.S. Army radio test program, and potential future tariff refunds.

• Capital expenditures for 2026 projected at $40–$45 million, mainly for Seattle facility consolidation.

• Free cash flow expected to be positive for the remainder of the year.