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Astronics
(NASDAQ:ATRO)
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Rating:68Neutral
Price Target:
$65.00
▼(-12.75% Downside)
Action:Downgraded
Date:10/21/26
ATRO scores well on fundamental momentum and earnings-call outlook: profitability and cash flow have improved materially, and management raised revenue guidance with strong bookings/backlog supporting growth. Offsetting this are balance-sheet leverage risk and weak near-term technicals (below major moving averages with negative MACD), while valuation appears somewhat full at ~29x earnings with no dividend support.
Positive Factors
Revenue and Margin Expansion
Strong revenue growth accompanied by substantial margin expansion indicates improving operating leverage and product demand across the business. If sustained, the combination should strengthen earnings capacity, support internal investment, and improve Astronics’ ability to compete for future aerospace programs.
Negative Factors
Elevated Leverage
Astronics remains materially reliant on debt despite recent improvement in leverage. This capital structure can constrain financial flexibility, increase sensitivity to weaker margins or demand, and compete with investment and growth priorities when cash must be allocated toward interest and debt reduction.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Expansion
Strong revenue growth accompanied by substantial margin expansion indicates improving operating leverage and product demand across the business. If sustained, the combination should strengthen earnings capacity, support internal investment, and improve Astronics’ ability to compete for future aerospace programs.
Read all positive factors
Astronics Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down income from various business units, providing insight into which segments drive growth and how diversified the company’s revenue sources are.
Breaks down income from various business units, providing insight into which segments drive growth and how diversified the company’s revenue sources are.
Data provided by:
The Fly
The FlyAstronics (ATRO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.61B
Dividend Yield23.34%
Average Volume (3M)635.45K
Price to Earnings (P/E)29.8
Beta (1Y)0.96
Revenue Growth14.49%
EPS GrowthN/A
CountryUS
Employees2,700
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)2.04
Shares Outstanding36,107,983
10 Day Avg. Volume675,828
30 Day Avg. Volume635,453
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)11.89
Price to Sales (P/S)1.93
P/FCF Ratio38.63
Enterprise Value/Market Cap1.39
Enterprise Value/Revenue3.86
Enterprise Value/Gross Profit11.88
Enterprise Value/Ebitda31.21
Forecast
1Y Price Target
$92.50Price Target Upside24.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.71
Revenue Forecast (FY)$1.03B
Astronics Business Overview & Revenue Model
Company Description
Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. It operates in...
How the Company Makes Money
Astronics makes money primarily by selling engineered aerospace components, subsystems, and test equipment to aircraft and avionics manufacturers and, in many cases, continuing to earn revenue over the life of an aircraft platform through aftermar...
Astronics Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum — record revenue, bookings, backlog and materially improved margins (adjusted EBITDA ~19.8%), supported by major program wins (MV-75 development and a $44.7M Army production order), improving cash generation and a healthier balance sheet. Headwinds exist (ongoing tariff costs, temporary margin pressure in Test Systems during ramp, GEO disruption from LEO transition, and remaining contract repricing work), but management presented clear levers (volume, pricing, efficiency, portfolio simplification) with room to run. On balance, the positives substantially outweigh the negatives.Positive Updates
Record Revenue and Strong Top-Line Growth
Revenue reached a record $260.0M in Q2 2026, up 27% year-over-year, and management raised full-year revenue guidance to $1.02B–$1.04B (crossing the $1B threshold).
Negative Updates
Tariff Headwinds and Uncertain Refund Timing
While a $2M IEEPA refund aided margins in Q2 (~70 bps), management estimates an ongoing tariff run rate of ~$3M–$4M per quarter at current volumes and expects future IEEPA refunds of ~$6M–$8M with uncertain timing.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
Revenue reached a record $260.0M in Q2 2026, up 27% year-over-year, and management raised full-year revenue guidance to $1.02B–$1.04B (crossing the $1B threshold).
Read all positive updates
Company Guidance
Management raised FY2026 revenue guidance to $1.02–$1.04 billion and expects Q3 sales of $265–$275 million with Q4 revenue modestly higher, targeting adjusted operating/EBITDA margins in the high teens (Q2 adjusted EBITDA margin = 19.8%, adjusted operating margin = 16.6%); they forecast ~$35 million of 2026 revenue from the MV‑75 FLRAA program, expect the $44.7M Army 4549 radio test production award to ramp to full‑rate by the end of Q4 (supporting ~18 months of deliveries) and to drive Test margins closer to Aerospace levels, and noted Q2 bookings of $306M with Aerospace bookings $243.1M (book‑to‑bill 1.02) and Test bookings $63.1M (book‑to‑bill 2.78) leaving backlogs of $657.2M (Aerospace) and $123.3M (Test); other guidance items include R&D of roughly $10–$12M per quarter, full‑year CapEx of $40–$45M (YTD $16.9M), expected future IEEPA tariff refunds of ~$6–$8M (timing uncertain) offset by an ongoing tariff run‑rate of ~$3–$4M/quarter, an expectation to be free‑cash‑flow positive for the remainder of the year, available liquidity of $253.2M and long‑term debt of $310.3M, and potential additional deferred tax valuation allowance release of roughly $40–$50M pending sufficient future taxable income.Astronics Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 942.09M | 862.13M | 795.43M | 689.21M | 534.89M | 444.91M |
| Gross Profit | 306.51M | 258.16M | 168.34M | 120.80M | 71.54M | 65.36M |
| EBITDA | 116.65M | 66.34M | 16.60M | -207.00K | -2.02M | -4.68M |
| Net Income | 79.12M | 29.36M | -16.21M | -26.42M | -35.75M | -25.58M |
Balance Sheet | ||||||
| Total Assets | 760.84M | 706.68M | 648.76M | 649.00M | 615.03M | 609.14M |
| Cash, Cash Equivalents and Short-Term Investments | 9.02M | 18.18M | 9.29M | 11.31M | 13.78M | 29.76M |
| Total Debt | 352.97M | 378.35M | 193.87M | 197.88M | 178.41M | 181.80M |
| Total Liabilities | 562.62M | 566.60M | 392.67M | 399.48M | 375.11M | 352.53M |
| Stockholders Equity | 198.22M | 140.07M | 256.10M | 249.52M | 239.92M | 256.60M |
Cash Flow | ||||||
| Free Cash Flow | 61.42M | 43.12M | 22.14M | -31.59M | -35.99M | -11.56M |
| Operating Cash Flow | 103.25M | 74.80M | 30.57M | -23.95M | -28.31M | -5.53M |
| Investing Cash Flow | -63.91M | -53.75M | -8.43M | -4.11M | 14.39M | 3.18M |
| Financing Cash Flow | -43.25M | -22.39M | -14.53M | 25.43M | -1.41M | -7.50M |
Astronics Technical Analysis
Negative
74.50
Price Trends
69.76
Negative
72.23
Negative
66.07
Negative
Market Momentum
-2.87
Positive
36.28
Neutral
33.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATRO, the sentiment is Negative. The current price of 74.5 is above the 20-day moving average (MA) of 63.74, above the 50-day MA of 69.76, and above the 200-day MA of 66.07, indicating a bearish trend. The MACD of -2.87 indicates Positive momentum. The RSI at 36.28 is Neutral, neither overbought nor oversold. The STOCH value of 33.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATRO.
Astronics Risk Analysis
Astronics disclosed 42 risk factors in its most recent earnings report. Astronics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Astronics Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.22B | 29.68 | 18.00% | 0.34% | 15.65% | 78.52% | |
70 Outperform | $17.95B | 32.86 | 21.75% | 0.41% | 22.35% | 41.77% | |
68 Neutral | $2.61B | 29.79 | 51.97% | 23.34% | 14.49% | ― | |
67 Neutral | $17.62B | 32.64 | 20.69% | 0.21% | 10.54% | 22.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $2.49B | -91.04 | -3.72% | 1.36% | 8.57% | -162.23% | |
57 Neutral | $4.78B | -156.91 | -2.01% | 3.82% | 7.85% | 22.99% |
* Industrials Sector Average
ATRO
Astronics
60.77
20.28
50.07%
CW
Curtiss-Wright
476.94
-110.56
-18.82%
DCO
Ducommun
164.79
71.71
77.04%
MRCY
Mercury Systems
78.55
0.95
1.22%
MOG.A
Moog
353.51
143.69
68.48%
WWD
Woodward
304.00
42.43
16.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.