ATROB · Astronics Corporation

Astronics Corporation delivered a robust start to 2026, with first quarter sales up 12% to $230.6 million, primarily fueled by the Aerospace segment's 11.7% growth to $213.8 million, driven by strong demand in Commercial Transport (up 13.7%) for seat motion, lighting, and safety products, plus General Aviation gains from IFEC sales. Gross margin expanded to 32.6% from 29.5%, boosted by higher volumes, productivity improvements, and a $2.8 million MV-75 program profit catch-up, despite tariff cost increases. Operating margin surged to 11.8% (GAAP) and adjusted to 12.8%, reflecting Aerospace leverage (16.5% GAAP, 17.4% adjusted) and Test Systems cost rationalization. Net income more than doubled to $25.5 million ($0.67/share), aided by lower interest post-refinancing and a $0.8 million tax benefit. Adjusted EBITDA hit $37.9 million (16.4% margin), up 23.3%. Record bookings of $290.4 million (1.26 book-to-bill) and $734.3 million backlog (81% expected in next 12 months) signal sustained demand. CEO Gundermann highlighted operational execution and market strength in Aerospace and Test. Guidance raised full-year revenue to $970M-$1B (14% midpoint growth over 2025), with Q2 at $245M-$250M record. Capex planned at $40M-$45M, including ERP system rollout. Cash from operations was $10.6 million amid inventory builds; liquidity remains solid at $231.8 million.