Astronics (ATRO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $231 million, up 12% year-over-year, driven by strong Aerospace and Test Systems demand, at the high end of guidance and the second-highest quarterly total ever.

• Net income rose to $25.5 million ($0.67 per diluted share), up from $9.5 million, with adjusted EBITDA up 23.3% to $37.9 million (16.4% margin).

• Bookings hit a record $290.4 million (book-to-bill 1.26), driving backlog to an all-time high of $734.3 million.

• Gross margin improved to 32.6% from 29.5%, reflecting higher volume and production efficiencies.

• No impact observed from global geopolitical conflicts, including the Iran War, though future risks remain.

Financial highlights

• Gross profit rose to $75.1 million (32.6% margin), up from $61 million (29.5%) last year, aided by higher volume and a $2.8 million MV-75 program adjustment.

• Adjusted operating income was $29.6 million (12.8% margin), up from $22.7 million (11%).

• Operating income more than doubled to $27.2 million; operating margin rose to 11.8% from 6.4%.

• Adjusted net income was $22.5 million, up 32.6% year-over-year; adjusted EPS was $0.59, up from $0.44.

• Interest expense fell 25.8% to $2.3 million due to refinancing.

• Tax benefit of $800,000 recorded, with a significant one-time benefit expected upon valuation allowance release.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $970 million–$1 billion, up from $950 million–$990 million, a 14–16% increase over 2025.

• Q2 2026 sales expected at $245 million–$250 million, which would be a new record.

• Anticipates further revenue acceleration in H2 2026 as Army Radio Test Program ramps.

• Focus remains on achieving sustainable high teens adjusted operating margins and operational efficiency.

• Management expects sufficient cash flow from operations to fund ongoing needs, including capital expenditures and legal settlements.