Q3 FY2026
Filed Nov 10, 2026Record Q3 2026 sales of $271.7 million (up 28.5%) and record operating income of $54.0 million; FY2026 revenue guidance of $1.02 billion to $1.04 billion maintained
Sales rose 28.5% to a record $271,679 thousand with gross margin up 410 basis points to 34.6%, GAAP operating margin of 19.9% (up 900 basis points), GAAP diluted EPS of $1.08 against a prior-year loss, and adjusted EBITDA margin of 21.8%, a record. Q3 included $1.9 million of tariff refunds and a $4.4 million litigation-related benefit that the company identified as contributors. Cash from operations was $25.8 million in the quarter, with working capital absorbing cash, and Test Systems bookings were weak at a 0.49 book-to-bill.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales, Q3 2026GAAP | $271.7M | – | 28.5% |
| Gross profit, Q3 2026GAAP | $93.97M | – | 45.7% |
| Gross margin, Q3 2026GAAP | 34.6% | – | 410 basis points |
| Cost of products sold, Q3 2026GAAP | $177.7M | – | – |
| Research and development expenses, Q3 2026GAAP | $9.27M | – | down $0.9 million |
| Selling, general and administrative expenses, Q3 2026GAAP | $30.72M | – | decreased $0.5 million |
| SG&A as % of sales, Q3 2026GAAP | 11.3% | – | – |
| Income from operations, Q3 2026GAAP | $53.98M | – | 134.1% |
| Operating margin, Q3 2026GAAP | 19.9% | – | 900 basis points |
| Loss on settlement of debt, Q3 2026GAAP | nil (shown as dash) | – | – |
| Interest expense, net, Q3 2026GAAP | $1.84M | – | down $1.1 million, or 37.1% |
| Income tax (benefit) expense, Q3 2026GAAP | −$249K | – | – |
| Net income (loss), Q3 2026GAAP | $52.20M | – | 570.4% |
| Diluted earnings (loss) per share, Q3 2026GAAP | $1.08 | – | – |
| Adjusted gross profit, Q3 2026non-GAAP | $93.97M | – | – |
| Adjusted gross margin, Q3 2026non-GAAP | 34.6% | – | – |
| Adjusted operating income, Q3 2026non-GAAP | $50.97M | – | 96.6% |
| Adjusted operating margin, Q3 2026non-GAAP | 18.8% | – | 650 basis points |
| Adjusted net income, Q3 2026non-GAAP | $38.86M | – | 100.3% |
| Adjusted diluted earnings per share, Q3 2026non-GAAP | $0.81 | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $59.34M | – | 81.4% |
| Adjusted EBITDA margin, Q3 2026non-GAAP | 21.8% | – | 630 basis points |
| Bookings, Q3 2026GAAP | $271.1M | – | – |
| Book-to-bill ratio, Q3 2026other | 1.00 | – | – |
| Backlog at quarter end, Q3 2026other | $780.0M | – | – |
| Bookings, trailing twelve months to Q3 2026other | $1.12B | – | – |
| Book-to-bill ratio, trailing twelve months to Q3 2026other | 1.12 | – | – |
| Sales, nine months 2026 YTDGAAP | $762.3M | – | 22.5% |
| Gross profit, nine months 2026 YTDGAAP | $256.0M | – | 43.7% |
| Gross margin, nine months 2026 YTDGAAP | 33.6% | – | – |
| Income from operations, nine months 2026 YTDGAAP | $121.7M | – | 197.1% |
| Operating margin, nine months 2026 YTDGAAP | 16.0% | – | – |
| Net income (loss), nine months 2026 YTDGAAP | $112.8M | – | 44,164.1% |
| Diluted earnings (loss) per share, nine months 2026 YTDGAAP | $2.36 | – | – |
| Adjusted operating income, nine months 2026 YTDnon-GAAP | $123.8M | – | 85.2% |
| Adjusted operating margin, nine months 2026 YTDnon-GAAP | 16.2% | – | – |
| Adjusted net income, nine months 2026 YTDnon-GAAP | $93.99M | – | 87.5% |
| Adjusted diluted earnings per share, nine months 2026 YTDnon-GAAP | $1.97 | – | – |
| Adjusted EBITDA, nine months 2026 YTDnon-GAAP | $148.8M | – | 67.4% |
| Adjusted EBITDA margin, nine months 2026 YTDnon-GAAP | 19.5% | – | – |
| Net cash provided by operating activities, nine months 2026 YTDGAAP | $66.57M | – | – |
| Capital expenditures, nine months 2026 YTDGAAP | $21.07M | – | – |
| Total assets, at October 3, 2026GAAP | $805.4M | – | – |
| Total shareholders' equity, at October 3, 2026GAAP | $255.5M | – | – |
| Cash and cash equivalents, at October 3, 2026GAAP | $7.92M | – | – |
| Long-term debt, at October 3, 2026GAAP | $284.8M | decreased $25.6 million from the end of the second quarter | decreased $49.7 million compared with December 31, 2025 |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Aerospace segmentCompany cites operating leverage on higher volume, improved production efficiencies, $1.9 million in tariff refunds, and a $4.4 million benefit from the refund of litigation-related expenses and legal reserve adjustments. Segment operating profit was $57,559 thousand, or 23.4% of sales, against 16.2% in the prior-year quarter. Segment bookings were $258,291 thousand (book-to-bill 1.05:1) and segment backlog was $670,031 thousand. | $245.5M | – | 27.4% |
| Test Systems segmentCompany cites strong order flow and production for the U.S. Army TS-4549/T Radio Test program, which drove $5.3 million of revenue in the quarter, partly offset by a $2.2 million revision of estimated costs to complete certain long-term mass transit contracts. Segment operating profit was $3,851 thousand, or 14.7% of sales, compared with near break-even in the prior-year quarter. Segment bookings were $12,798 thousand (book-to-bill 0.49:1) and segment backlog was $109,937 thousand. | $26.21M | – | 40.0% |
| Aerospace: Commercial Transport marketCompany cites increased demand for inflight entertainment and connectivity (IFEC), seat motion and lighting and safety products. Printed as 69.0% of YTD sales. | $192.2M | – | 28.8% |
| Aerospace: Military Aircraft marketCompany cites higher sales of flight critical airframe power products. | $29.03M | – | 5.3% |
| Aerospace: General Aviation marketCompany cites higher IFEC product sales. | $21.12M | – | 51.7% |
| Aerospace: Other marketNo driver given in the filing. | $3.08M | – | 50.8% |
| Test Systems: Government & Defense marketSame market as the Test Systems segment. Driver as stated for the Test Systems segment. | $26.21M | – | 40.0% |
| Product line: Inflight Entertainment & ConnectivityRecast prior-year figure. Filing states the product line structure was reorganized in Q1 2026. Printed as 48.2% of YTD sales. | $131.0M | – | 23.9% |
| Product line: Lighting & SafetyRecast prior-year figure. Driver: company cites growth in safety products within the Commercial Transport market. | $61.56M | – | 16.6% |
| Product line: Flight Critical Electrical PowerRecast prior-year figure. Driver: company cites higher flight critical airframe power product sales within Military Aircraft. | $20.92M | – | 24.9% |
| Product line: Seat MotionRecast prior-year figure. Driver: company cites Commercial Transport growth in seat motion products. | $24.89M | – | 112.3% |
| Product line: Other (Aerospace)Recast prior-year figure. No driver given in the filing. | $7.08M | – | 24.8% |
FY2026 (full year), with Q4 2026 sales range outlook
- Revenue$1.02 billion to $1.04 billion (FY2026); company describes this as growth of 19.5% over 2025 at the midpoint
- NoteFourth quarter 2026 sales: $255 million to $275 million
- NotePlanned 2026 capital expenditures: $25 million to $30 million
- NoteFuture IEEPA tariff refunds: $5 million to $6 million, timing cannot be confirmed
- NoteCompany states it is maintaining 2026 revenue guidance
- NotePreliminary outlook for 2027 as described by the CEO: 'another year of strong double digit growth'
Capital returns
- No share repurchase or cash dividend figures are reported in the filing.
- A twenty percent Class B stock distribution to shareholders of record on June 15, 2026 is reflected in all share and per share figures; the filing states it had no impact on total shareholders' equity.
- Stock award activity in the nine months was $(2,007) thousand (cash flow line, financing).
What drove it
- Company states Q3 gross profit growth and margin expansion were primarily attributable to higher volume, improved productivity, and $1.9 million in tariff refunds.
- Company states operating margin expanded 900 basis points and adjusted operating margin expanded 650 basis points, reflecting operating leverage from higher volume and improved productivity in Aerospace, and improved performance in Test Systems.
- Company states Q3 SG&A decreased $0.5 million, with a $4.4 million UK patent appeal refund and a $1.0 million favorable settlement from an unrelated matter largely offsetting higher wages and benefits, higher incentive-based compensation driven by increased profitability, and incremental expenses related to the acquired BMA business.
- Company states interest expense was down $1.1 million, or 37.1%, on lower debt balances and reduced rates following September 2025 refinancing activities.
- Company states the Q3 tax benefit of $0.2 million resulted from a partial reversal of the valuation allowance, R&D tax credits, and the tax deductibility of R&D expenses, which more than offset expected income tax expense.
- Company states the Test Systems program TS-4549/T is expected to reach full rate production in the first quarter of 2027.
Concerns
- Test Systems bookings in Q3 2026 were $12,798 thousand (book-to-bill 0.49:1), following Q2 2026 Test Systems bookings of $63,051 thousand (book-to-bill 2.78:1), per the order and backlog table.
- Company cites a $2.2 million revision of estimated costs to complete certain long-term mass transit contracts that reduced Test Systems revenue in the quarter.
- Q3 benefited from items the company identifies as non-recurring in nature: $1.9 million of tariff refunds, $4.4 million of UK patent appeal refunds and legal fees, and a $1.0 million favorable settlement. The filing does not state a recurrence expectation for these items.
- Working capital rose in the nine months: accounts receivable change of $(53,793) thousand and inventory change of $(43,628) thousand in the cash flow statement; the company attributes the Q3 inventory build to 2027 revenue growth.
- Company guides Q4 2026 sales to $255 million to $275 million and says fourth quarter sales may be modestly lighter than the Q3 record level.
- Company states the amount and timing of future IEEPA tariff refunds ($5 million to $6 million) cannot be confirmed.
- Planned capital expenditures for 2026 are $25 million to $30 million against $21.1 million spent year-to-date.
What to watch
- Q4 2026 sales against the $255 million to $275 million guidance range.
- Test Systems order flow after the 0.49 book-to-bill in Q3 and progress on the TS-4549/T program toward full rate production in Q1 2027.
- Conversion of the $780.0 million backlog: company expects approximately 83% to convert to revenue over the next twelve months.
- Working capital, including receivables and inventory, as the company builds toward 2027 revenue growth.
- Timing and amount of IEEPA tariff refunds ($5 million to $6 million) and any further litigation-related recoveries.
- Company's preliminary 2027 outlook, described as 'another year of strong double digit growth'.
- Free cash flow and cash balance, given cash of $7,925 thousand on the balance sheet at quarter end.
Balance sheet and cash flow
- Cash from operations in Q3 2026 was $25.8 million; the company attributes this to higher cash earnings offset by higher working capital requirements, namely higher receivables based on timing and increased inventory to support anticipated 2027 revenue growth.
- Nine-month accounts receivable change in the cash flow statement: $(53,793) thousand; inventories: $(43,628) thousand; accounts payable: 29,265 thousand.
- Capital expenditures were $4.2 million in Q3 2026 and $21.1 million year-to-date; the company cites catch-up investment on previously deferred spending and the completed consolidation of operations and capacity expansion in a new Seattle facility.
- Long-term debt was $284,753 thousand at October 3, 2026, versus $334,451 thousand at December 31, 2025, and the company states it decreased $25.6 million from the end of the second quarter.
- Company reports available liquidity of $278.0 million at quarter end, including $14.2 million of available cash and $263.8 million of revolver availability. The balance sheet prints cash and cash equivalents of $7,925 thousand; the filing does not reconcile the two cash figures.
- Interest paid in the nine months was $5,683 thousand versus $7,593 thousand in the prior-year period, and income taxes paid, net, were $814 thousand versus $12,636 thousand.
Analysis
Astronics reported record third quarter 2026 sales of $271,679 thousand, up 28.5% from $211,447 thousand, and up from $259,957 thousand in the second quarter per the order and backlog table. Aerospace sales were $245,472 thousand (up 27.4%) and Test Systems sales were $26,207 thousand (up 40.0%). Growth in Aerospace was led by Commercial Transport, which rose 28.8% to $192,243 thousand, with the company citing IFEC, seat motion and lighting and safety products. General Aviation grew 51.7% to $21,121 thousand on IFEC sales, and Military Aircraft rose 5.3% to $29,028 thousand on flight critical airframe power products. Nine-month sales were $762,255 thousand, up 22.5%.
Profitability moved sharply higher. Gross margin was 34.6% against 30.5%, and GAAP operating margin was 19.9% against 10.9%. The company attributes the gross margin and operating gains to volume, productivity, $1.9 million of tariff refunds, and in operating profit, a $4.4 million benefit tied to the UK patent appeal. Adjusted operating margin was 18.8% against 12.3%, and adjusted EBITDA margin was 21.8% against 15.5%, which the company describes as a record. The prior-year quarter contained a $32,644 thousand loss on settlement of debt, so GAAP net income of $52,204 thousand ($1.08 per diluted share) compares with a net loss of $(11,098) thousand ($(0.26) per share). Adjusted diluted EPS was $0.81 against $0.41. Income tax was a benefit of $(249) thousand on pretax income of $51,955 thousand, as printed.
The Aerospace segment carried most of the improvement, with segment operating profit of $57,559 thousand (23.4% margin). Test Systems operating profit was $3,851 thousand (14.7% margin) against near break-even a year earlier, though the company disclosed a $2.2 million cost-to-complete revision on mass transit contracts and quarterly bookings of only $12,798 thousand (0.49 book-to-bill). Total bookings were $271,089 thousand (1.00 book-to-bill) against $306,191 thousand in Q2, and backlog ended at $779,968 thousand, essentially flat with $780,558 thousand in Q2. Trailing twelve-month bookings were $1,124,957 thousand (1.12 book-to-bill).
Cash generation and the balance sheet deserve attention. Cash from operations was $25.8 million in Q3 and $66,574 thousand for nine months, against $47,172 thousand a year earlier. The company attributes the quarter's working capital build to higher receivables and inventory ahead of anticipated 2027 growth, and the balance sheet shows accounts payable and receivables both higher than at year-end 2025. Capital expenditures were $21,071 thousand year-to-date. Long-term debt fell to $284,753 thousand from $334,451 thousand at December 31, 2025, and total shareholders' equity rose to $255,456 thousand from $140,074 thousand. Balance sheet cash of $7,925 thousand differs from the $14.2 million of available cash the text cites, and the filing does not reconcile the two.
On guidance, the company is maintaining FY2026 revenue of $1.02 billion to $1.04 billion and guides Q4 2026 sales to $255 million to $275 million, which the CEO says may be modestly lighter than the Q3 record. Planned 2026 capex is $25 million to $30 million, and future IEEPA tariff refunds of $5 million to $6 million are expected with timing not confirmable. With $780.0 million of backlog, of which about 83% is expected to convert over the next twelve months, the company's outlook for 2027 is described as another year of strong double-digit growth. No prior-period outlook was supplied, so no comparison against earlier guidance is made here.
Management, verbatim
We delivered a strong third quarter, with record sales and operating income and an adjusted EBITDA margin near its all-time high. These results reflect disciplined operational execution and strong demand across our markets.
Peter J. Gundermann, Chairman, President and Chief Executive Officer
While fourth quarter sales may be modestly lighter than the third quarter record level, our preliminary outlook for 2027 suggests another year of strong double digit growth. We are planning for a solid finish to this year and preparing for an exciting 2027.
Peter J. Gundermann, Chairman, President and Chief Executive Officer
We expect continued advancement on this program to drive further improvement in operating performance over the coming quarters, positioning the business for a strong 2027.
Peter J. Gundermann, Chairman, President and Chief Executive Officer
Not in the filing
stated, not guessed- Free cash flow for Q3 2026 and nine months 2026 is not printed as a figure.
- Prior-year Q3 bookings, backlog and book-to-bill (Q3 2025) are not printed in the filing.
- Prior-year and prior-quarter comparisons for cost of products sold, income tax and other lines are not printed on the same row as a change figure.
- Gross margin, operating expense, and tax rate guidance for FY2026 or Q4 2026 are not provided.
- Adjusted gross profit, adjusted EBITDA and adjusted net income year-over-year changes are printed on their own rows; adjusted gross margin year-over-year change is not printed.
- Share repurchase and dividend data are not reported.
- Quarter-over-quarter percentage changes for sales, bookings and backlog are not printed.
- Cash balance discrepancy: balance sheet cash $7,925 thousand versus $14.2 million available cash in text; not reconciled in the filing.
- Market reaction, consensus estimates and analyst expectations are not in the filing.
- Q2 2026 comparisons for Test Systems and Aerospace segment operating profit are not printed.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.