EAST AURORA, New York, August 12, 2026, 12:16 EDT — Astronics stock (ATRO) advanced 15% after the company reported its current backlog now stands at 76% of its new revenue target.
- Astronics stock climbed 15.3% to $86.38 during midday trading.
- Sales increased by 27% in the second quarter, with adjusted EBITDA rising more than twofold.
- The company’s backlog reached a record $780.6 million, amounting to 75.8% of the midpoint of the updated revenue guidance.
Shares of Astronics Corporation NASDAQ:ATRO climbed 15.3% to $86.38 on Wednesday. The aerospace supplier posted record-high quarterly sales and operating income the previous day. The company also lifted its revenue forecast for 2026.
More evident was the effect of operating leverage. While revenue increased by 27%, adjusted EBITDA jumped 102.9%. The adjusted EBITDA margin improved by 740 basis points, reaching 19.8%.
Orders surpassed deliveries. Bookings totaled $306.2 million, resulting in a book-to-bill ratio of 1.18. The backlog marked its third straight all-time high.
Chief Executive Peter Gundermann stated, “We had a very strong second quarter, with record sales, operating income, bookings and backlog.” Astronics earnings release
The core results for the quarter highlight that profit growth exceeded sales growth. Adjusted metrics are reported on a non-GAAP basis.
| Q2 metric | 2026 | 2025 | Change |
|---|---|---|---|
| Sales | $260.0 million | $204.7 million | +27.0% |
| Gross margin | 33.4% | 25.8% | up 760 bps |
| Operating income | $40.5 million | $4.8 million | jumped 750.5% |
| Operating margin | 15.6% | 2.3% | increased 1,330 bps |
| Adjusted EBITDA | $51.5 million | $25.4 million | rose 102.9% |
| Adjusted EBITDA margin | 19.8% | 12.4% | higher by 740 bps |
| Diluted EPS | $0.75 | $0.03 | gained $0.72 |
The figures in the table come from Astronics’ August 11 report. Gross profit increased 64.5% to $86.9 million. Net income climbed to $35.1 million from $1.3 million.
Aerospace posted $237.3 million in revenue, accounting for 91.3% of total sales. Sales for the segment increased by 22.6%. The adjusted operating margin for the segment stood at 21.4%.
Test Systems, though smaller, showed improvement. Sales surged to $22.7 million, more than twice the previous figure. The segment posted a profit of $0.6 million, reversing a loss of $6.7 million from the prior year.
The increased outlook is supported by the backlog. Approximately 82% of this amount is projected to be delivered in the next 12 months, according to company figures, equating to nearly $640.1 million.
| Forward indicator | Value | Investor read-through |
|---|---|---|
| Quarterly bookings | $306.2 million | Orders surpassed actual sales |
| Book-to-bill | 1.18 | Orders on hand rose further |
| Total backlog | $780.6 million | Hit all-time high |
| Expected within 12 months | About $640.1 million | Represents 62.1% of new guidance midpoint |
| 2026 revenue guide | $1.02 billion-$1.04 billion | Guidance midpoint at $1.03 billion |
| Prior revenue guide | $970 million-$1.00 billion | Midpoint was $985 million |
| Midpoint increase | $45 million | Up 4.6% |
| Backlog/new midpoint | 75.8% | Strong coverage for expected revenue |
The company provided data on bookings, backlog, and its outlook. Calculations based on the reported figures produced $640.1 million, 62.1%, 75.8%, and 4.6%. Astronics projected third-quarter revenue in the range of $265 million to $275 million.
The margin increase requires context. Gross profit was boosted by a $2.0 million tariff refund. Additionally, the same quarter last year included atypical expenses, simplifying the year-on-year comparison.
Earnings gains were matched by a stronger cash conversion. Operating cash flow reached $30.1 million in the second quarter. The company’s debt decreased by $24.1 million over the quarter, bringing the total down to $310.3 million.
Analyst targets released prior to the results were largely centered around $100. These ratings were issued before the outlook was updated upward and do not reflect any post-earnings changes.
| Analyst | Date | Rating | Price target |
|---|---|---|---|
| Truist Securities | Feb. 25, 2026 | Buy | $107 |
| Craig-Hallum | May 13, 2026 | Buy | $100 |
| TD Cowen | May 28, 2026 | Buy | $100 |
| Five-analyst consensus | Latest average | 4 Buy, 1 Hold, 0 Sell | $91.38 on average |
Analyst ratings and consensus data are provided by Investing.com. Note that some services might have varying numbers of analysts and different update timings.
Risks: Commercial aircraft production rates may shift rapidly. Constraints in supply, certification holdups, and softer demand for Test Systems have the potential to hinder backlog conversion. The tariff advantage might not recur.
The following challenge is execution. Astronics needs to deliver on approximately $640 million in anticipated 12-month backlog and maintain the margin improvements that led to Wednesday’s valuation change.
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