ATRO earnings analysis
What we found in ATRO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Astronics reported a strong Q2, with revenue of $259.957 million, gross margin of 33.4%, operating margin of 15.6%, and diluted EPS of $0.70. Revenue and EPS exceeded consensus, while profitability improved substantially year over year and full-year 2026 revenue guidance was raised to $1.02 billion-$1.04 billion. The principal disclosed negative is probable losses in certain patent-infringement proceedings as of July 4, 2026; balance-sheet and cash-flow detail was not included in the provided filing extract.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue materially exceeded expectations
- Q2 revenue was $259.957 million, up approximately 26.8% from $205 million in Q2 2025 and 12.5% from $231 million in Q1 2026. Revenue exceeded the $245.242 million consensus estimate by approximately 6.0%.
- Margins expanded sharply
- Gross margin expanded to 33.4% from 25.8% in Q2 2025, a 760-basis-point improvement, while operating margin increased to 15.6% from 2.3%, a 1,330-basis-point improvement.
- EPS beat consensus
- Diluted EPS was $0.70 versus $0.03 in Q2 2025 and $0.56 in Q1 2026, and exceeded the $0.60 consensus estimate by $0.10.
- Full-year revenue outlook raised
- Management raised full-year 2026 revenue guidance to $1.02 billion-$1.04 billion from $970 million-$1.00 billion. The outlook implies Q3 revenue of $265 million-$275 million.
- Investment remains elevated
- The company expects 2026 capital expenditures of $40 million-$45 million, indicating continued investment despite the stronger revenue outlook.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Probable patent-litigation losses
- The company stated that it is involved in patent-infringement proceedings and concluded that losses related to certain proceedings are probable as of July 4, 2026. The filing does not quantify the expected loss.
- Repurchase activity remained inactive
- The company authorized common-stock repurchases of up to $50 million, but made no repurchases during each of the three reported periods ending May 2, May 30, and July 4, 2026; $41,483,815 remained available under the program at July 4, 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.7
- Gross margin
- 33.4%
- Operating margin
- 15.6%
What they said about what is next.
Management raised 2026 revenue guidance to $1.02 billion-$1.04 billion from $970 million-$1.00 billion. Q3 revenue is expected at $265 million-$275 million; 2026 capital expenditures are expected at $40 million-$45 million. No quantitative EPS guidance was provided.
The filing reads better than the one before it.
What came before.
- 10-Q · May 13, 2026
- Astronics Corporation's Q1 2026 performance showed solid revenue growth and improved margins, leading to an EPS of $0.67 compared to $0.26 in the prior year. Revenue reached $230.6 million, outperforming estimates,…
- 10-K · February 26, 2026
- Astronics reports recovering aerospace demand with backlog up to $674.5M and FY2025 revenue of approximately $862.0M (sum of quarters), driven by Aerospace strength and margin expansion. Management completed refinancing…
- 10-Q · August 7, 2025
- Astronics reported Q2 sales of $204,678,000, up from $198,114,000 a year ago, driven by Aerospace (+$16.7M). Gross margin compressed to 25.8% from 28.0% and consolidated operating margin was modest at 2.3%, producing…
- 10-K · March 5, 2024
- Astronics completed a $205.0 million refinancing on January 19, 2023 (a $90.0 million term loan and $115.0 million ABL) and finished 2023 with backlog of $592.3 million (up from $571.4 million). Management increased R&D…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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