Astronics Corporation Q3 2026 Earnings Recap

Astronics shares fell 2.7% after earnings, a roughly flat reaction. The quarter showed higher sales and margins, but the improvement included tariff refunds and legal recoveries, while the transcript does not provide enough of the outlook discussion to assess expectations for the remainder of the year.

Key Takeaways

• Q3 sales reached a record $271.7 million, up 28.5% year over year; adjusted operating income was 18.8% of sales and adjusted EBITDA was 21.8%.
• Gross profit rose 46% to $94 million, with gross margin expanding 410 basis points to 34.6%. The company said $1.9 million of tariff refunds contributed 70 basis points.
• SG&A was $30.7 million, down about $0.5 million year over year; it benefited from roughly $4.4 million in U.K. patent appeal recoveries and a separate settlement of about $1 million, partly offset by higher wages and benefits.
• Aerospace sales were a record $245 million, and the segment ended the quarter with record backlog. Test Systems sales were $26 million, including $5.3 million from the Army radio test program.
• Year-to-date sales were $762 million, up 22%; operating margin rose to 16% from 6.6% a year earlier, while adjusted EBITDA margin increased to 19.5% from 14.3%.