> ## Content Index > Fetch the complete content index at: https://www.bullished.co/llms.txt > Use this file to discover other available public pages before exploring further. # Astronics Adjusted Operating Profit Climbs 97% As Sales Rise 29% - URL: https://www.bullished.co/astronics-adjusted-operating-profit-climbs-97-as-sales-rise-29-5c1fc47a/ - Published: 2026-11-10T21:41:48.000Z - Updated: 2026-11-10T21:41:48.000Z - Description: Legal recoveries helped reported earnings, while Astronics maintained its annual revenue outlook and paid down debt. - Author: Matteo Parrino - Tags: Earnings, ATRO, Industry: Industrials [Astronics](https://www.bullished.co/tag/atro/), which makes aircraft power, lighting and seat-motion systems and automated testing equipment, increased adjusted operating profit about 97% to $51.0 million in the third quarter as sales rose about 29% to $271.7 million. The results accompanied Tuesday's [SEC earnings filing](https://www.sec.gov/Archives/edgar/data/0000008063/000162828026072755/atro-20261110.htm?ref=bullished.co); revenue grew across both businesses, while refunds and legal recoveries also helped profitability. ## The Profit Rebound Has Extra Ingredients Sales increased 28.5% from $211.4 million a year earlier, while operating profit rose 134.1% to $54.0 million from $23.1 million, according to the accompanying [earnings release](https://www.sec.gov/Archives/edgar/data/0000008063/000162828026072755/ex99120261003-pr.htm?ref=bullished.co). Astronics kept 19.9% of sales as operating profit, compared with 10.9% a year earlier. Its adjusted operating margin reached 18.8%, up from 12.3%. Net income was $52.2 million, or $1.08 per diluted share, against a loss of $11.1 million, or $0.26 per share. But the prior-year loss included a $32.6 million charge from repurchasing some convertible debt during the September 2025 refinancing. The operating-profit comparison gives a clearer view of business improvement than the bottom-line reversal alone. This quarter also received help from $1.9 million in tariff refunds, approximately $4.4 million recovered through a successful UK patent appeal and a separate $1.0 million settlement. Astronics attributed its gross-margin improvement to higher volume, better productivity and the tariff refunds; gross margin reached 34.6%, versus 30.5%. Interest expense fell 37.1% to $1.8 million, which the company attributed to lower debt and rates following the refinancing. Tax credits, research-cost deductions and a partial reversal of a tax valuation allowance produced a $0.2 million tax benefit despite $52.0 million in pretax income. Adjusted net income, which uses a normalized tax rate and other adjustments, rose 100.3% to $38.9 million. ## Aircraft Cabins And Army Radios Aerospace sales grew 27.4% to $245.5 million. Astronics tied commercial-transport growth primarily to entertainment and connectivity equipment, seat-motion systems, lighting and safety products. Commercial-transport revenue rose 28.8% to $192.2 million. General Aviation sales increased 51.7% to $21.1 million, which the company attributed to entertainment and connectivity products. Military Aircraft revenue rose 5.3% to $29.0 million on higher sales of critical aircraft power equipment. Aerospace's adjusted operating profit grew 71.5% to $55.1 million, with a 22.5% margin. The business sells to aircraft manufacturers, suppliers, airlines and the U.S. Department of Defense, and provides certification services. Commercial transport represented 75% of Aerospace sales in 2025\. Current results include Bühler Motor Aviation, which Astronics bought on October 13, 2025. Test Systems revenue increased 40.0% to $26.2 million, primarily because of the U.S. Army radio-test program, Astronics said. That program generated $5.3 million in quarterly sales. Revised cost estimates for mass-transit contracts reduced recognized revenue by $2.2 million. Test Systems earned $3.9 million in operating profit, compared with roughly break-even a year earlier. ## Debt Falls, Forecast Holds Astronics generated $25.8 million in quarterly operating cash and spent $4.2 million on capital projects. Receivables and inventory absorbed cash, with the company building inventory for anticipated 2027 growth. Long-term debt fell $25.6 million from the second quarter to $284.8 million, and was $49.7 million below its year-end 2025 level. Quarterly orders totaled $271.1 million, roughly matching sales. Aerospace orders exceeded sales for five consecutive quarters, and its unfilled orders reached what Astronics called a record $670.0 million. Total backlog was $780.0 million; the company expects approximately 83% to become revenue over the next twelve months. Astronics maintained its annual revenue forecast of $1.02 billion to $1.04 billion, representing 19.5% growth at the midpoint. It expects fourth-quarter sales of $255 million to $275 million. Chairman, President and Chief Executive Officer Peter J. Gundermann said, "While fourth quarter sales may be [modestly lighter](https://www.sec.gov/Archives/edgar/data/0000008063/000162828026072755/ex99120261003-pr.htm?ref=bullished.co) than the third quarter record level, our preliminary outlook for 2027 suggests another year of strong double digit growth." The company expects annual capital spending of $25 million to $30 million, largely for the Seattle consolidation completed in the third quarter. It also estimates future tariff refunds of $5 million to $6 million. Astronics expects the U.S. Army radio-test program to reach full-rate production in the first quarter of 2027. Learn - [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations) From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples ### Sources - [8-K Filing — ASTRONICS CORP (ATRO)](https://www.sec.gov/Archives/edgar/data/0000008063/000162828026072755/atro-20261110.htm?ref=bullished.co) — SEC EDGAR - [Exhibit ex99120261003-pr.htm — ASTRONICS CORP 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000008063/000162828026072755/ex99120261003-pr.htm?ref=bullished.co) — SEC EDGAR - [Astronics Corporation Reports Record Operating Income on 28% Sales Growth for Third Quarter 2026](https://www.businesswire.com/news/home/20261110595527/en/Astronics-Corporation-Reports-Record-Operating-Income-on-28-Sales-Growth-for-Third-Quarter-2026?ref=bullished.co) — businesswire.com ### More on Astronics - [State Street Holds 5.1% Of Astronics Common Stock Without Seeking Control](https://www.bullished.co/state-street-holds-5-1-of-astronics-common-stock-without-seeking-control-074fb603/) [All Astronics (ATRO) coverage →](https://www.bullished.co/tag/atro/)