Astronics (ATRO) Q3 2026 earnings summary

Executive summary

• Record Q3 sales of $271.7 million, up 28.5% YoY; record operating income was $54.0 million, with adjusted EBITDA of $59.3 million and a record 21.8% margin.

• Higher volume and productivity, led by Aerospace, drove improved profitability in both segments; management expects continued momentum and preliminary strong double-digit growth in 2027.

Financial highlights

• Gross profit rose to $94.0 million from $64.5 million; gross margin expanded 410 bps to 34.6%, including $1.9 million of tariff refunds and productivity gains.

• Net income was $52.2 million, or $1.08 diluted EPS, versus an $11.1 million net loss; adjusted net income was $38.9 million, or $0.81 per share.

• 9M sales rose 22.5% to $762.3 million; net income was $112.8 million versus a $0.3 million loss, and operating income was $121.7 million versus $41.0 million.

• SG&A declined $0.5 million and R&D declined $0.9 million YoY; adjusted EBITDA increased over 81% to $59.3 million.

Outlook and guidance

• FY2026 revenue guidance remains $1.02 billion-$1.04 billion, implying 19.5% midpoint growth; Q4 sales range is $255 million-$275 million.

• Preliminary 2027 outlook indicates strong double-digit growth, well north of 10%, with continued bottom-line strength; formal revenue guidance expected closer to year-end.

• Approximately 83% of the $780.0 million Q3-end backlog is expected to convert to revenue over the next 12 months.

• FY2026 capex is forecast at $25 million-$30 million; future IEEPA tariff refunds are estimated at $5 million-$6 million, with timing uncertain.