A maker of aerospace and defense technology, Astronics designs and builds aircraft lighting, electrical power systems, avionics, and seat actuation, plus automated test systems and training simulators used by airlines, defense contractors, and transit agencies. Its Aerospace segment supplies commercial transport customers, including Boeing, while its Test Systems unit takes on large multi-year projects. In 2025 the company expanded by acquiring Envoy Aerospace and Bühler Motor Aviation.
Astronics Q2 revenue rose 27% to $260.0M and net income reached $35.1M as Test Systems swung to an operating profit.
Test Systems swung to an , and Aerospace margin widened to 20.3%. rose 27.0% to $260.0M and expanded 7.6 points to 33.4%, lifting to $35.1M from $1.3M a year earlier. The company enters the second half with record of $780.6M and down to $309.0M.
Key takeaways
Test Systems swung to a $0.6M from a $6.7M loss a year earlier, as more than doubled to $22.7M.
Aerospace widened to 20.3% from 9.3%, driven by higher volume, production efficiencies, lower litigation costs, and a $2.0M IEEPA tariff refund.
expanded to 33.4% from 25.8%, helped by the tariff refund and the absence of a prior-year $5.8M Aerospace simplification charge.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 sales rose 27% to $260.0M and net income jumped to $35.1M on Aerospace strength and Test Systems recovery.
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Consolidated Q2 sales rose 27.0% to $260.0M, with Aerospace up 22.6% to $237.3M and Test Systems up 105.1% to $22.7M.
Q2 expanded to 33.4% from 25.8%, helped by a $2.0M IEEPA tariff refund and the absence of a prior-year $5.8M Aerospace simplification charge.
Q2 were $306.2M for a 1.18:1 , lifting total to a record $780.6M from $674.5M at year-end 2025.
rose to $40.7M in H1 2026 from $13.0M a year earlier, and declined to $309.0M from $324.8M at year-end 2025.
What changed
The Q1 2026 watch item on was answered: the 33.4% Q2 margin held above Q1's 32.6% even without the $2.8M MV-75 program catch-up, aided instead by a $2.0M IEEPA tariff refund and the absence of a prior-year $5.8M Aerospace simplification charge.
Test Systems growth accelerated to 105.1% in Q2 from 15.4% in Q1, and the swung to an of $0.6M after a $6.7M loss a year earlier.
improved to $40.7M in H1 2026 from $13.0M a year earlier, reversing the Q1 decline that had been flagged as a watch item.
rose further to $780.6M from $734.3M at the end of Q1 2026, with a 1.18:1 in Q2 versus 1.26x in Q1.
declined to $309.0M from $331.1M at the end of Q1 2026, continuing the reduction from $324.8M at year-end 2025.
What to watch
Whether Test Systems sustains its Q2 of $0.6M, given management's note that profitability remains pressured by mix and fixed-cost under absorption.
Whether Aerospace holds at the 20.3% Q2 level without the $2.0M IEEPA tariff refund and the drop in litigation costs.
Whether the record $780.6M converts to at the Q2 book-to-bill pace of 1.18:1.
Any further developments in the UK patent infringement proceedings, given the company's statement that losses related to certain proceedings are probable.
Aerospace Q2 improved to 20.3% from 9.3%, driven by higher volume, production efficiencies, lower litigation costs, and the tariff refund.
Test Systems swung to a $0.6M Q2 from a $6.7M loss, though profitability remains pressured by mix and fixed-cost .
Q2 were $306.2M for a 1.18:1 ; total reached $780.6M, up from $674.5M at year-end 2025.
rose to $40.7M in H1 2026 from $13.0M, while declined to $309.0M from $324.8M at year-end 2025.
Quantitative and Qualitative Disclosures About Market Risk
The disclosure above under the heading “Market Risk” in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of this report is incorporated by reference into this Item 3. 29 Table of Contents
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The disclosure above under the heading “Market Risk” in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of this report is incorporated by reference into this Item 3.
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Table of Contents
Except as described below, there have been no material developments from the legal proceedings as previously disclosed in Note 19, Legal Proceedings and Other Matters, to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of the 2025 10…
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Except as described below, there have been no material developments from the legal proceedings as previously disclosed in Note 19, Legal Proceedings and Other Matters, to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of the 2025 10-K.
Currently, we are involved in legal proceedings relating to an allegation of patent infringement and, based on rulings to date, we have concluded that losses related to certain of these proceedings are probable. For a discussion of contingencies related to legal proceedings as of July 4, 2026, see Note 13, Legal Proceedings and Other Matters, to the Consolidated Condensed Financial Statements in Item 1, Financial Statements, of this report.
In addition to other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors,” in the 2025 10-K, which could materially affect our business, financial condition or results of operations. The risks described in t…
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In addition to other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors,” in the 2025 10-K, which could materially affect our business, financial condition or results of operations. The risks described in this report and in the 2025 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or results of operations.