Astronics Corporation reported higher sales and profitability in the third quarter of 2026, driven by strong growth in its Aerospace and Test Systems segments.
Aerospace sales increased by US$52.7 million, or 27.4%, while Test Systems revenue rose by US$7.5 million, or 40.0%.
Gross profit increased by US$29.5 million to US$94.0 million, with the gross margin expanding by 410 basis points to 34.6% of sales. The improvement reflected higher sales volumes, increased productivity and US$1.9 million in tariff refunds.
Selling, general and administrative expenses fell by US$0.5 million. The company benefited from a favourable outcome in a UK patent infringement appeal, resulting in a refund of approximately US$4.4 million in damages and associated legal fees, as well as a US$1.0 million settlement in an unrelated case. These gains were largely offset by higher wages, benefits, incentive-based compensation and costs associated with the BMA acquisition in 2025.
Research and development expenses decreased by US$0.9 million, reflecting project timing.
Net income was US$1.08 per diluted share, compared with a loss of US$0.26 per diluted share in the same period last year. The prior-year result included a US$32.6 million loss on debt settlement related to costs incurred in the partial repurchase of convertible notes due in 2030.
Adjusted EBITDA increased by 81.4% to US$59.3 million, while the adjusted EBITDA margin expanded by 630 basis points to a record 21.8% of consolidated sales.
