Astronics Raises Annual Revenue Guidance After Record Second Quarter
The aerospace supplier increased its 2026 revenue forecast to as high as $1.04 billion following a quarter of record sales.
Astronics (ATRO), the aerospace supplier, reported record second-quarter sales of $260.0 million. The result represents a 27.0% increase from the $204.7 million recorded in the same period last year.
Profitability metrics expanded across the board as the company scaled. Gross margin rose 760 basis points to 33.4%, up from 25.8% in the prior-year quarter. Operating margin expanded 1,330 basis points to 15.6%, compared to 2.3% in the second quarter of 2024.
Adjusted EBITDA margin reached a multi-year high of 19.8%, an expansion of 740 basis points from 12.4% a year earlier. The company also saw a 24.7% decrease in interest expense, which fell to $2.3 million following refinancing activities completed in September 2024.
Growth was led by the Aerospace segment, where sales increased 22.6% to $237.3 million and adjusted operating margin expanded 510 basis points to 21.4%. The Test Systems segment saw sales grow 105.1% to $22.7 million, recovering from a prior-year period that included a $6.4 million cost revision on mass transit contracts. Consequently, Test Systems operating profit swung to $0.6 million from an operating loss of $6.7 million in the prior-year quarter.
Demand indicators reached new peaks during the period. Quarterly bookings hit a record $306.2 million, resulting in a book-to-bill ratio of 1.18. Total backlog reached $780.6 million at the end of the quarter, the third consecutive record backlog quarter for the company.
Astronics raised its 2025 revenue guidance to a range of $1.02 billion to $1.04 billion, up from its previous forecast of $950 million to $990 million.
The company also announced a 20% Class B stock distribution to shareholders on June 1, 2025, with a record date of June 15, 2025.