Astronics reported third-quarter 2026 results on November 10, and almost every line set a record. Sales rose 28.5% to $271.7 million. Operating income roughly doubled to a record $54.0 million, or 19.9% of sales. The shares rose about 5%.
Aerospace carries it
The Aerospace segment, which supplies aircraft lighting, power, in-flight entertainment and connectivity systems, had record sales of $245.5 million. Commercial transport sales rose $43 million, or 28.8%, as airlines and aircraft makers push build rates up. General aviation rose about 52%. Military aircraft sales rose 5%. Aerospace operating margin reached 23.4%, or 22.5% adjusted.
Margin is where the turnaround shows. Consolidated operating margin expanded 900 basis points from a year ago. Adjusted operating margin reached 18.8%, hitting management’s stated high-teens target. Adjusted EBITDA was $59.3 million, or 21.8% of sales, near an all-time high. Gross margin rose to 34.6% from 30.5%.
Test Systems wakes up
The smaller Test Systems segment, long a drag, improved. Sales rose 40% to $26.2 million and operating profit reached $3.9 million against near break-even a year earlier. The driver is early production on the US Army 4549/T radio test program, which contributed $5.3 million in the quarter. That program is the clearest defense exposure in the company and could keep growing as production ramps.
Profit and outlook
Net income was $52.2 million, or $1.08 per diluted share. Year-to-date sales are $762 million, up 22%, and year-to-date operating margin is 16% against 6.6% a year ago. Backlog ended at about $780 million, roughly flat with the record set in the second quarter.
Management kept 2026 revenue guidance at $1.02 billion to $1.04 billion and pointed to 2027 growth well above 10%, with supply chain and program timing as the risks. CEO Peter Gundermann has spent years rebuilding the business since the pandemic grounded its airline customers. With margins at target and backlog steady, the question now is whether supply chains let Astronics keep shipping at the pace aircraft makers want.