Astronics Corporation Reports 12% Sales Growth for First Quarter 2026

Published: 2026-05-12 16:17:06 ET ATRO

First quarter sales increased 12.0% to $230.6 million Achieved first quarter net income of $25.5 million, or $0.67 per diluted share; adjusted EBITDA1 was $37.9 million, or 16.4% of sales Aerospace operating margin expanded to 16.5%; adjusted Aerospace operating margin1 was 17.4% Record quarterly bookings of $290.4 million for book-to-bill of 1.26 and record backlog of $734.3 million Generated $10.6 million in cash from operations Increasing 2026 revenue guidance to a range of $970 million to $1 billion

Published on 05/12/2026 at 04:17 pm EDT

Astronics Corporation (Nasdaq: ATRO) (“Astronics” or the “Company”), a leading supplier of advanced technologies and products to the global aerospace, defense, and other mission critical industries, today reported financial results for the three months ended April 4, 2026. Financial results include the acquisition of Bühler Motor Aviation (“BMA”) on October 13, 2025.

Peter J. Gundermann, Chairman, President and Chief Executive Officer, commented, “We are off to a strong start in 2026 with strong growth, expanded margins and record bookings and backlog. Our team’s focus on operational execution combined with higher volume delivered adjusted EBITDA1 margin of 16.4%. Demand across markets for our products remains robust, as evidenced by record bookings that were driven by strength in both Aerospace and Test. Our activity level is expected to pick up noticeably in the coming quarters and we believe we are well-positioned to capitalize on the opportunities ahead.”

First Quarter Results

Three Months Ended

($ in thousands)

April 4, 2026

March 29, 2025

% Change

Sales

230,619

205,936

12.0

Gross profit

75,133

60,849

23.5

Gross margin

32.6

29.5

Income from operations

27,230

13,137

107.3

Operating margin %

11.8

6.4

Net income

25,540

9,528

168.1

Net income %

11.1

4.6

Adjusted operating income2

29,560

22,619

30.7

Adjusted operating margin %2

12.8

11.0

Adjusted net income2

22,501

16,973

32.6

Adjusted EBITDA2

37,901

30,739

23.3

Adjusted EBITDA margin %2

16.4

14.9

First Quarter 2026 Results (compared with the prior-year period, unless noted otherwise)

Growth in sales was driven by the Aerospace segment’s continued strength in demand primarily from the Commercial Transport market. Aerospace sales increased $22.4 million, or 11.7%, while Test Systems sales grew $2.2 million, or 15.4%.

Gross profit increased $14.3 million to $75.1 million, or 32.6% of sales, an improvement over gross margin of 29.5% in the comparator quarter. Gross profit growth and margin expansion were primarily attributable to higher volume, improved productivity, and a $2.8 million catch-up of profit on the MV-75 program based on revised program estimates. This was partially offset by a $1.7 million increase in tariff expenses. In the prior year, first quarter consolidated sales and gross profit was negatively impacted by a $1.9 million revision of estimated costs to complete a long-term mass transit contract in the Test Systems segment.

Selling, general and administrative expenses (“SG&A”) decreased $0.8 million. Litigation-related expenses were down $1.2 million, and the prior-year period included a $6.2 million reserve adjustment to the damage award relating to the patent infringement dispute in the UK. Appeals to the UK damage award are scheduled to be heard in July 2026. These decreases were mostly offset by higher wages and benefits, higher incentive-based compensation expenses driven by increased profitability, and incremental expenses related to the acquired BMA business. R&D was up $1.0 million reflecting the timing of projects.

Operating margin expanded 540 basis points and adjusted operating margin2 expanded 180 basis points as a result of higher volume and improved productivity in the Aerospace segment, coupled with savings from the recent Test Systems cost rationalization activities.

Interest expense was down $0.8 million, or 25.8%, on lower rates following the September 2025 refinancing activities. Tax benefit in the quarter of $0.8 million was related to a $2.7 million discrete adjustment for the expected benefit of a stock-based compensation deduction, a valuation allowance reversal, and research and development costs expected to be expensed. Tax expense in the prior year period was partially offset by a $1.1 million discrete adjustment to reverse certain federal and state deferred tax liabilities.

Consolidated net income of $0.67 per diluted share improved from $0.26 per diluted share in the prior-year period from stronger operating profit, lower interest expense and lower tax. Adjusted EBITDA2 increased 23.3% to $37.9 million, and adjusted EBITDA margin2 expanded 150 basis points to 16.4% of consolidated sales.

Record bookings of $290.4 million in the quarter resulted in a book-to-bill ratio of 1.26:1. For the trailing twelve months, bookings totaled $935.1 million and the book-to-bill ratio was 1.05:1. Backlog at the end of the quarter was $734.3 million, the highest in the Company’s history.

Aerospace Segment Review (compared with the prior-year period, unless noted otherwise)

Aerospace segment sales of $213.8 million increased $22.4 million, or 11.7%. Sales in the Commercial Transport market increased $18.9 million, or 13.7%. Growth was primarily related to increased demand for seat motion and lighting and safety products. General Aviation sales increased $6.2 million, or 40.7%, to $21.4 million due to higher inflight entertainment & connectivity (“IFEC”) product sales to the VVIP market. Military Aircraft sales remained consistent with the prior-year period. Other sales decreased $2.9 million as the Company has wound down its non-core contract manufacturing arrangements.

Aerospace segment operating profit of $35.3 million, or 16.5% of sales, improved over the prior-year period reflecting the leverage gained on higher volume, improving production efficiencies, the cumulative catch-up of profit on the MV-75 program based on revised program estimates, and a $7.0 million decrease in litigation-related expenses and legal reserve adjustments related to the UK patent dispute previously discussed. Adjusted Aerospace operating profit2 increased 20.0% to $37.2 million, or 17.4% of sales, a 120-basis point expansion over the comparator quarter.

Aerospace bookings were $264.4 million for a book-to-bill ratio of 1.24:1. Record backlog for the Aerospace segment was $651.4 million at quarter end.

Mr. Gundermann commented, “Our Aerospace business had a solid first quarter with our second-highest quarterly sales total, trailing only the preceding fourth quarter. Strong sales led to a 16.5% operating margin. Market demand for our products remains strong and we are well positioned to set new records in the coming periods.”

Test Systems Segment Review (compared with the prior-year period, unless noted otherwise)

Test Systems segment sales of $16.8 million were up $2.2 million from the comparator quarter in 2025. Segment sales in the prior-year period were negatively impacted by a $1.9 million revision of estimated costs to complete a certain long-term mass transit Test contract reducing revenue recognized in the period.

Test Systems segment operating profit was $0.4 million, compared with an operating loss of $2.2 million in the first quarter of 2025. Test Systems profitability, while improving, continues to be negatively affected by mix and under absorption of fixed costs at current volume levels.

Bookings for the Test Systems segment in the quarter were $26.1 million. The book-to-bill ratio for the quarter was 1.55:1. Backlog for the Test Systems segment was $83.0 million at quarter end.

Mr. Gundermann commented, “Results in our Test business continue to confirm that our significant cost-cutting and efficiency actions have been effective, and we expect results to improve significantly as the radio test program for the U.S. Army begins. We understand that a production award is on track to be issued in the coming weeks, with the production phase of the program accelerating in the second half of the year.”

Balance Sheet and Liquidity

Cash provided by operations in the first quarter of 2026 was $10.6 million, reflecting higher cash earnings offset by higher working capital requirements, including higher inventory levels to support anticipated revenue growth in the coming quarters. Capital expenditures in the quarter were $11.2 million. Elevated capital expenditures reflect necessary catch-up investments on previously deferred spending as well as the consolidation of operations and capacity improvement in a new Seattle facility. The Company expects to be free cash flow positive for the remainder of the year.

Long-term debt was relatively unchanged at quarter-end at $334.9 million. The Company had available liquidity of $231.8 million at quarter-end, including $19.1 million in available cash.

2026 Outlook

Astronics expects 2026 revenue for the year to be in the range of $970 million to $1 billion, which would surpass the record level sales of 2025. The midpoint of the revised range would be a 14% increase over 2025 sales.

Record backlog at the end of the first quarter was $734.3 million, of which approximately 81% is expected to drive revenue over the next twelve months. Mr. Gundermann concluded, “We expect second quarter sales of $245 million to $250 million, which will be a new record for the Company, and we expect our revenue rate in the second half to rise further from there. Demand remains strong for our products and capabilities, and all indications point to a very strong 2026 for our Company.”

Planned capital expenditures in 2026 are expected to be in the range of $40 million to $45 million driven largely by costs associated with the Seattle operation consolidation, which will conclude in the second quarter. In addition, the Company is in the early phases of implementing a new global resource planning system. Astronics expects to spend approximately $15 million to $17 million on this project in 2026, excluding reallocated internal operating costs. Approximately $2 million to $3 million of the investment will be incremental operating expense with the remainder to be capitalized and reported as a cash outflow from operations. The total cost of the project over five years, excluding reallocated internal operating expenses, is expected to be approximately $35 million to $40 million of which $25 million is expected to be capitalized.

First Quarter 2026 Webcast and Conference Call

The Company will host a teleconference today at 4:45 p.m. ET. During the teleconference, management will review the financial and operating results for the period and discuss Astronics’ corporate strategy and outlook. A question-and-answer session will follow.

The Astronics conference call can be accessed by calling (201) 493-6784. The listen-only audio webcast can be monitored at investors.astronics.com. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13759858. The telephonic replay will be available from 8:00 p.m. on the day of the call through Tuesday, May 26, 2026. The webcast replay can be accessed via the investor relations section of the Company’s website where a transcript will also be posted once available.

About Astronics Corporation

Astronics Corporation (Nasdaq: ATRO) serves the world’s aerospace, defense, and other mission-critical industries with proven innovative technology solutions. Astronics works side-by-side with customers, integrating its array of power, connectivity, lighting, structures, interiors, and test technologies to solve complex challenges. For over 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe manufacturers, airlines, military branches, completion centers, and Fortune 500 companies rely on the collaborative spirit and innovation of Astronics. The Company’s strategy is to increase its value by developing technologies and capabilities that provide innovative solutions to its targeted markets.

Safe Harbor Statement

This news release contains forward-looking statements as defined by the Securities Exchange Act of 1934. One can identify these forward-looking statements by the use of the words “expect,” “anticipate,” “plan,” “may,” “will,” “estimate,” “feeling” or other similar expressions and include all statements with regard to the Company’s 2026 outlook including the level of activity in coming quarters, the expectation of setting new records in coming periods, the timing of the receipt of production orders for U.S. Army radio test set program, the level of profitability contribution from the Test segment with its onset, and the rate of revenue growth in the second half of 2026. The forward-looking statements also include all statements related to achieving any revenue or profitability expectations, expectations of continued growth, the level of liquidity, the level of cash generation and free cash flow, the level of demand by customers and markets and the amount of expected capital expenditures, the amount of investment in an ERP system, the amount of backlog to be recognized as revenue over the next twelve months, and statements regarding the amount of opportunities available to be executed. Because such statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. Important factors that could cause actual results to differ materially from what may be stated here include the trend in growth with passenger power and connectivity on airplanes, the state of the aerospace and defense industries, the market acceptance of newly developed products, internal production capabilities, the timing of orders received, the status of customer certification processes and delivery schedules, the demand for and market acceptance of new or existing aircraft which contain the Company’s products, the impact of regulatory activity and public scrutiny on production rates of a major U.S. aircraft manufacturer, the need for new and advanced test equipment, customer preferences and relationships, the effectiveness of the Company’s supply chain and execution on opportunities, and other factors which are described in filings by Astronics with the Securities and Exchange Commission. Except as required by applicable law, the Company assumes no obligation to update forward-looking information in this news release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.

Use of Non-GAAP Financial Metrics and Additional Financial Information

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Astronics provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. Astronics management uses these measures for reviewing the financial results of Astronics for budget planning purposes and for making operational and financial decisions. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, help investors evaluate Astronics core operating and financial performance and business trends consistent with how management evaluates such performance and trends.

FINANCIAL TABLES FOLLOW

ASTRONICS CORPORATION

CONSOLIDATED STATEMENT OF OPERATIONS DATA

(Unaudited, $ in thousands except per share amounts)

Three Months Ended

4/4/2026

3/29/2025

Sales

230,619

205,936

Cost of products sold

155,486

145,087

Gross profit

75,133

60,849

Gross margin

32.6

29.5

Research and development expenses

12,089

11,067

Selling, general and administrative

35,814

36,645

SG&A % of sales

15.5

17.8

Income from operations

27,230

13,137

Operating margin

11.8

6.4

Other expense (income)

109

(187

)

Interest expense, net

2,336

3,150

Income before tax

24,785

10,174

Income tax (benefit) expense

(755

)

646

Net income

25,540

9,528

Net income % of sales

11.1

4.6

Basic earnings per share:

0.71

0.27

Diluted earnings per share:3

0.67

0.26

Weighted average diluted shares outstanding (in thousands)

38,223

42,957

ASTRONICS CORPORATION

CONSOLIDATED BALANCE SHEETS

($ in thousands)

(unaudited)

4/4/2026

12/31/2025

ASSETS

Cash and cash equivalents

11,867

18,180

Accounts receivable, net of allowance for estimated credit losses

217,024

204,672

Inventories

211,945

196,860

Prepaid expenses and other current assets

27,792

18,027

Total current assets

468,628

437,739

Property, plant and equipment, net of accumulated depreciation

115,481

107,078

Operating right-of-use assets

32,626

32,269

Other assets

13,742

11,316

Intangible assets, net of accumulated amortization

52,320

55,353

Goodwill

64,346

62,923

Total assets

747,143

706,678

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

55,873

41,080

Current operating lease liabilities

5,986

5,802

Accrued expenses and other current liabilities

66,183

68,324

Customer advances and deferred revenue

29,666

26,069

Total current liabilities

157,708

141,275

Long-term debt

334,885

334,451

Long-term operating lease liabilities

38,239

38,101

Other liabilities

54,609

52,777

Total liabilities

585,441

566,604

Shareholders’ equity:

Common stock

386

385

Accumulated other comprehensive loss

(5,438

)

(4,410

)

Other shareholders’ equity

166,754

144,099

Total shareholders’ equity

161,702

140,074

Total liabilities and shareholders’ equity

747,143

706,678

ASTRONICS CORPORATION

CONSOLIDATED CASH FLOWS DATA

Three Months Ended

(Unaudited, $ in thousands)

4/4/2026

3/29/2025

Cash flows from operating activities:

Net income

25,540

9,528

Adjustments to reconcile net income to cash from operating activities:

Non-cash items:

Depreciation and amortization

5,894

5,588

Amortization of deferred financing fees

607

602

Provisions for non-cash losses on inventory and receivables

1,441

1,728

Equity-based compensation expense

2,556

2,345

Deferred tax expense (benefit)

(1,125

)

Operating lease non-cash expense

1,463

1,550

Non-cash litigation provision adjustment

—

6,228

Other

681

(214

)

Cash flows from changes in operating assets and liabilities:

Accounts receivable

(13,420

)

(2,037

)

Inventories

(16,404

)

515

Accounts payable

14,997

2,867

Operating lease liabilities

(1,515

)

(1,071

)

Accrued expenses

(6,655

)

(11,514

)

Income taxes

(982

)

959

Cloud computing implementation costs

(2,370

)

—

Customer advance payments and deferred revenue

3,614

2,776

Supplemental retirement plan liabilities

(181

)

(101

)

Other assets and liabilities

(4,722

)

2,018

Net cash provided by operating activities

10,606

20,642

Cash flows from investing activities:

Capital expenditures

(11,160

)

(2,105

)

Net cash used by investing activities

(11,160

)

(2,105

)

Cash flows from financing activities:

Proceeds from long-term debt

30,000

1,143

Principal payments on long-term debt

(30,000

)

(10,000

)

Financing-related costs

—

(740

)

Stock award activity

(5,441

)

(1,730

)

Other

(60

)

(44

)

Net cash used by financing activities

(5,501

)

(11,371

)

Effect of exchange rates on cash

(258

)

354

(Decrease) increase in cash and cash equivalents and restricted cash

(6,313

)

7,520

Cash and cash equivalents and restricted cash at beginning of period

18,180

18,428

Cash and cash equivalents and restricted cash at end of period

11,867

25,948

Supplemental disclosure of cash flow information

Non-cash investing activities:

Capital expenditures in accounts payable

425

—

Interest paid

2,668

2,724

Income taxes refunded, net of payments

195

827

ASTRONICS CORPORATION

SEGMENT SALES AND PROFIT

(Unaudited, $ in thousands)

Three Months Ended

4/4/2026

3/29/2025

Sales

Aerospace

213,843

191,388

Less inter-segment

(23

)

(13

)

Total Aerospace

213,820

191,375

Test Systems

16,824

14,592

Less inter-segment

(25

)

(31

)

Total Test Systems

16,799

14,561

Total consolidated sales

230,619

205,936

Segment gross profit and margins

Aerospace

70,693

58,483

33.1

30.6

Test Systems

4,440

2,366

26.4

16.2

Total gross profit

75,133

60,849

32.6

29.5

Segment operating profit and margins

Aerospace

35,332

22,264

16.5

11.6

Test Systems

403

(2,223

)

2.4

(15.3

Total segment operating profit

35,735

20,041

Interest expense

2,336

3,150

Corporate expenses and other

8,614

6,717

Income before taxes

24,785

10,174

Beginning in the current year, the Company reorganized its product line structure to align with changes in internal reporting. Refer to the Supplemental Prior Period Tables within this release for prior-year recast of disaggregation of sales by product line to conform with the updated, current-period presentation. Please refer to the Company’s Quarterly Report on Form 10-Q for the quarter ended April 4, 2026 for additional details.

ASTRONICS CORPORATION

SALES BY MARKET

(Unaudited, $ in thousands)

Three Months Ended

2026 YTD

4/4/2026

3/29/2025

% Change

% of Sales

Aerospace Segment

Commercial Transport

156,419

137,542

13.7

67.8

Military Aircraft

33,502

33,263

0.7

14.5

General Aviation

21,449

15,243

40.7

9.3

Other

2,450

5,327

(54.0

1.1

Aerospace Total

213,820

191,375

11.7

92.7

Test Systems Segment

Government & Defense

16,799

14,561

15.4

7.3

Total Sales

230,619

205,936

12.0

SALES BY PRODUCT LINE4

(Unaudited, $ in thousands)

Three Months Ended

Recast

2026 YTD

4/4/2026

3/29/2025

% Change

% of Sales

Aerospace Segment

Inflight Entertainment & Connectivity

110,748

103,110

7.4

48.1

Lighting & Safety

52,807

51,957

1.6

22.9

Flight Critical Electrical Power

24,763

21,314

16.2

10.7

Seat Motion

19,879

6,672

197.9

8.6

Other

5,623

8,322

(32.4

2.4

Aerospace Total

213,820

191,375

11.7

92.7

Test Systems

16,799

14,561

15.4

7.3

Total

230,619

205,936

12.0

ASTRONICS CORPORATION

ORDER AND BACKLOG TREND

(Unaudited, $ in thousands)

Q2 2025

Q3 2025

Q4 2025

Q1 2026

Trailing Twelve Months

6/28/2025

9/27/2025

12/31/2025

4/4/2026

Sales

Aerospace

193,626

192,725

219,593

213,820

819,764

Test Systems

11,052

18,722

20,474

16,799

67,047

Total Sales

204,678

211,447

240,067

230,619

886,811

Bookings

Aerospace

150,636

191,859

237,327

264,381

844,203

Test Systems

26,390

18,532

19,902

26,067

90,891

Total Bookings

177,026

210,391

257,229

290,448

935,094

Backlog5

Aerospace

570,913

572,459

600,803

651,364

Test Systems

74,454

74,264

73,692

82,960

Total Backlog

645,367

646,723

674,495

734,324

N/A

Book:Bill Ratio

Aerospace

0.78

1.00

1.08

1.24

1.03

Test Systems

2.39

0.99

0.97

1.55

1.36

Total Book:Bill

0.86

1.00

1.07

1.26

1.05

ASTRONICS CORPORATION

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

(Unaudited, $ in thousands)

Consolidated

Three Months Ended

4/4/2026

3/29/2025

Net income

25,540

9,528

Add back (deduct):

Interest expense

2,336

3,150

Income tax (benefit) expense

(755

)

646

Depreciation and amortization expense

5,894

5,588

Equity-based compensation expense

2,556

2,345

Restructuring-related charges including severance

—

279

ERP implementation consulting expenses

174

—

Legal reserve, settlements and recoveries

—

6,228

Litigation-related legal expenses

1,779

2,975

Acquisition-related expenses

186

—

Warranty reserve

191

—

Adjusted EBITDA

37,901

30,739

Sales

230,619

205,936

Adjusted EBITDA margin %

16.4

14.9

Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by sales. Adjusted EBITDA and Adjusted EBITDA Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company’s financial statements.

ASTRONICS CORPORATION

RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME

(Unaudited, $ in thousands)

Consolidated

Three Months Ended

4/4/2026

3/29/2025

Income from operations

27,230

13,137

Add back:

Restructuring-related charges including severance

—

279

ERP implementation consulting expenses

174

—

Legal reserve, settlements and recoveries

—

6,228

Litigation-related legal expenses

1,779

2,975

Acquisition-related expenses

186

—

Warranty reserve

191

—

Adjusted operating income

29,560

22,619

Sales

230,619

205,936

Operating margin

11.8

6.4

Adjusted operating margin

12.8

11.0

Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current periods’ income from operations to the historical periods’ income from operations and operating margin, as well as facilitates a more meaningful comparison of the Company’s income from operations and operating margin to that of other companies.

ASTRONICS CORPORATION

RECONCILIATION OF NET INCOME AND DILUTED EARNINGS PER SHARE

TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE

(Unaudited, $ in thousands except per share amounts)

Consolidated

Three Months Ended

4/4/2026

3/29/2025

Net income

25,540

9,528

Add back (deduct):

Amortization of intangibles

2,887

2,975

Restructuring-related charges including severance

—

279

ERP implementation consulting expenses

174

—

Legal reserve, settlements and recoveries

—

6,228

Litigation-related legal expenses

1,779

2,975

Acquisition-related expenses

186

—

Warranty reserve

191

—

Normalize tax rate6

(8,256

)

(5,012

)

Adjusted net income

22,501

16,973

Weighted average diluted shares outstanding (in thousands)

38,223

42,957

Diluted earnings per share

0.67

0.26

Adjusted diluted earnings per share7

0.59

0.44

Adjusted Net Income and Adjusted Diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Net Income and Adjusted Diluted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Net Income and Adjusted Diluted EPS, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current periods’ net income and diluted EPS to the historical periods’ net income and diluted EPS, as well as facilitates a more meaningful comparison of the Company’s net income and diluted EPS to that of other companies. The Company believes that presenting Adjusted Diluted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company’s strategy to grow through acquisitions as well as organically.

ASTRONICS CORPORATION

RECONCILIATION OF SEGMENT OPERATING PROFIT (LOSS)

TO ADJUSTED SEGMENT OPERATING PROFIT (LOSS)

(Unaudited, $ in thousands)

Three Months Ended

4/4/2026

3/29/2025

Aerospace operating profit

35,332

22,264

Restructuring-related charges including severance

—

279

ERP implementation consulting expenses

174

—

Legal reserve, settlements and recoveries

—

6,228

Litigation-related legal expenses

1,511

2,244

Warranty reserve

191

—

Adjusted Aerospace operating profit

37,208

31,015

Aerospace sales

213,820

191,375

Aerospace margin

16.5

11.6

Adjusted Aerospace margin

17.4

16.2

Test Systems operating profit (loss)

403

(2,223

)

Litigation-related legal expenses

731

Adjusted Test Systems operating profit (loss)

451

(1,492

)

Test Systems sales

16,799

14,561

Test Systems margin

2.4

(15.3

Adjusted Test Systems margin

2.7

(10.2

Adjusted Segment Operating Profit is defined as segment operating profit as reported, adjusted for certain items. Adjusted Segment Margin is defined as Adjusted Segment Operating Profit divided by segment sales. Adjusted Segment Operating Profit and Adjusted Segment Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Segment Operating Profit and Adjusted Segment Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Segment Operating Profit and Adjusted Segment Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current periods’ segment operating profit to the historical periods’ segment operating profit and segment margin, as well as facilitates a more meaningful comparison of the Company’s segment operating profit and segment margin to that of other companies.

Supplemental Prior Period Tables

The following tables provide a prior-year recast of the disaggregation of sales by product line by quarter for the years ending December 31, 2025 and 2024, to conform with the updated, current-period presentation.

SALES BY PRODUCT LINE8

(Unaudited, $ in thousands)

Recast

Three Months Ended

Year Ended

2025 YTD

3/29/2025

6/28/2025

9/27/2025

12/31/2025

% of Sales

Aerospace Segment

Inflight Entertainment & Connectivity

103,110

105,902

105,780

119,447

434,239

50.4

Lighting & Safety

51,957

56,100

52,807

55,719

216,583

25.1

Flight Critical Electrical Power

21,314

15,832

16,747

19,813

73,706

8.5

Seat Motion

6,672

10,217

11,721

18,632

47,242

5.5

Other

8,322

5,575

5,670

5,982

25,549

3.0

Aerospace Total

191,375

193,626

192,725

219,593

797,319

92.5

—

Test Systems

14,561

11,052

18,722

20,474

64,809

7.5

—

Total

205,936

204,678

211,447

240,067

862,128

100.0

Recast

Three Months Ended

Year Ended

2024 YTD

3/30/2024

6/29/2024

9/28/2024

12/31/2024

% of Sales

Aerospace Segment

Inflight Entertainment & Connectivity

89,620

94,065

94,838

105,156

383,679

48.2

Lighting & Safety

44,067

48,654

48,874

46,760

188,355

23.7

Flight Critical Electrical Power

14,396

19,045

17,871

17,056

68,368

8.6

Seat Motion

6,870

7,353

9,416

11,590

35,229

4.4

Other

8,685

7,826

6,555

7,987

31,053

3.9

Aerospace Total

163,638

176,943

177,554

188,549

706,684

88.8

—

Test Systems

21,436

21,171

26,144

19,991

88,742

11.2

—

Total

185,074

198,114

203,698

208,540

795,426

100.0

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