Astronics Corporation

What they do

Astronics designs and manufactures electrical power generation, distribution and seat motion systems, lighting and safety systems, avionics, aircraft structures, and automated test systems. Its Aerospace segment sells to commercial, military, and general aviation OEMs, airlines, and the U.S. Department of Defense. The Test Systems segment provides automated test systems and training/simulation devices for aerospace, defense, communications, and mass transit customers. Operations are primarily in the U.S., Canada, France, and Germany, with engineering offices in Ukraine and India.

Revenue drivers

• Aerospace segment — Largest segment; record sales of $237.3M in Q2 2026, up 22.6% year-over-year, driven by commercial transport demand; operating margin reached 20.3% (21.4% adjusted).
• Test Systems segment — Smaller segment but grew 105.1% in Q2 2026 to $22.6M, recovering from prior-year contract cost revisions.
• Boeing — Concentration of 10.4% of 2025 sales; primarily in Aerospace segment; any loss or reduction would materially impact revenue.
• Commercial transport market — Made up 75% of Aerospace segment sales in 2025, making it the primary demand driver.

Recent performance

For Q2 2026 (quarter ended July 4, 2026), sales were a record $260.0M, up 27.0% year-over-year. Net income was $35.1M ($0.75 diluted EPS), compared to $1.3M in the prior-year quarter. Operating income was $40.5M (15.6% of sales), and adjusted EBITDA was $51.5M (19.8% of sales). First-half 2026 sales were $490.6M, up 19.5%, with net income of $60.6M. Backlog reached a record $780.6M, with bookings of $306.2M (book-to-bill 1.18).

Strategy

Astronics aims to grow through internal technology development and strategic acquisitions, and to leverage capabilities to provide innovative solutions in targeted markets. Recent acquisitions include Envoy Aerospace (FAA ODA services provider, June 2025) and B hler Motor Aviation (aircraft seat actuation systems, October 2025), both in the Aerospace segment. Management focuses on improving operating efficiencies, passing cost increases to customers, controlling expenses, and increasing productivity. The company also seeks to win new business for Test Systems and expand existing relationships with OEMs and defense primes.

Risks

• Customer concentration — Boeing accounted for 10.4% of 2025 sales; losing or reducing business with Boeing would significantly reduce sales and earnings.
• Cyclical markets — Demand is sensitive to economic cycles, trade policies, tariffs, conflicts, and aircraft build rates, which can cause operating results to fluctuate.
• Supply chain and labor — Material availability, cost increases, tariffs, and labor shortages have caused and could cause delivery delays and incremental costs, pressuring margins.
• Regulatory and legal — Being highly regulated by FAA and other agencies creates risk of fines, penalties, or decertification; ongoing patent litigation (Lufthansa Technik) and potential export regulation compliance are also risks.

Outlook

Management raised 2026 revenue guidance to $1.02 billion to $1.04 billion, up from prior expectations, reflecting continued strength across markets. CEO Peter Gundermann said momentum is expected to build during the second half of 2026. The company sees growth opportunities from commercial transport demand, new aircraft platforms, and defense programs, while continuing to address supply chain and labor pressures. Backlog of $780.6M and record bookings support near-term revenue visibility.