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For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Astronics Corporation (ATRO - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.

Astronics Corporation is one of 77 companies in the Aerospace group. The Aerospace group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Astronics Corporation is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ATRO's full-year earnings has moved 20.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that ATRO has returned about 52.7% since the start of the calendar year. Meanwhile, stocks in the Aerospace group have lost about 1.6% on average. This shows that Astronics Corporation is outperforming its peers so far this year.

RTX (RTX - Free Report) is another Aerospace stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 5.6%.

In RTX's case, the consensus EPS estimate for the current year increased 1.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Astronics Corporation belongs to the Aerospace - Defense Equipment industry, which includes 37 individual stocks and currently sits at #86 in the Zacks Industry Rank. This group has gained an average of 4.6% so far this year, so ATRO is performing better in this area.

RTX, however, belongs to the Aerospace - Defense industry. Currently, this 39-stock industry is ranked #98. The industry has moved -4.1% so far this year.

Going forward, investors interested in Aerospace stocks should continue to pay close attention to Astronics Corporation and RTX as they could maintain their solid performance.

Astronics Corporation (ATRO - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Astronics basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Astronics, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for AstronicsFor the fiscal year ending December 2026, this company is expected to earn $2.62 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Astronics. Over the past three months, the Zacks Consensus Estimate for the company has increased 20.2%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Astronics to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

LONDON & EAST AURORA, N.Y.--(BUSINESS WIRE)--Vertical Aerospace ("Vertical" or the "Company") (NYSE: EVTL), a global aerospace and technology company that is pioneering electric aviation, today announced a long-term agreement with Astronics Corporation (NASDAQ: ATRO), a leading provider of advanced technologies for the global aerospace, defense and other mission critical industries, to supply the low-voltage ("LV") power distribution system for Vertical's Valo electric vertical take-off and landing (eVTOL) aircraft.

Under the agreement, Astronics will provide the aircraft's LV power distribution system, including power conversion and distribution hardware that manages and protects electrical power for critical aircraft systems. The system converts high-voltage electrical power from the aircraft's propulsion architecture into low-voltage power used by avionics, flight controls and other essential onboard systems.

Astronics has supported Vertical throughout the prototype phase of aircraft development, with its hardware already integrated into Vertical's piloted flight test aircraft. The company's purpose-built eVTOL electrical power solutions and extensive aerospace experience make it the ideal supplier for Valo as Vertical advances toward certification and commercial production.

This agreement further strengthens Vertical's supplier ecosystem across Valo’s key aircraft systems, including leading suppliers such as Honeywell (flight control and aircraft management systems), Aciturri (airframe structures), Evolito (electric propulsion units), Hyundai WIA (landing gear), Syensqo (composite materials) and Isoclima (transparencies).

Stuart Simpson, CEO of Vertical Aerospace, said:

"Building a certifiable aircraft requires not only breakthrough technology, but also a world-class supplier ecosystem. Astronics brings deep expertise in aircraft electrical power systems and has already demonstrated its capabilities through our flight test programme. This agreement is another important step as we mature Valo's design, strengthen our supply chain and advance toward certification and commercial production."

Jon Neal, President of Astronics Advanced Electronic Systems, said:

"Astronics is proud to be working with Vertical Aerospace as the supplier of their power distribution system for the Valo aircraft. Our CorePower® system is purpose-built for eVTOL applications, combining high-voltage power conversion with low-voltage power distribution delivering reliable, fault-protected power to flight-critical systems including avionics, flight controls, and navigation. CorePower was designed from the ground up to meet aerospace certification standards, giving our customers a lightweight, compact solution that reduces integration risk and supports their path to type certification. We look forward to continuing our close collaboration with the Vertical team through CDR and Valo's entry into service.”

The announcement follows continued progress on the Valo programme as Vertical advances toward Critical Design Review (CDR), establishing the certifiable design baseline for the aircraft ahead of certification-conforming aircraft production and testing.

About Astronics Corporation

Astronics Corporation (Nasdaq: ATRO) serves the world’s aerospace, defense, and other mission critical industries with proven, innovative technology solutions. Astronics works side-by-side with customers, integrating its array of power, connectivity, lighting, structures, interiors, and test technologies to solve complex challenges. For over 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe manufacturers, airlines, militaries, completion centers and Fortune 500 companies rely on the collaborative spirit and innovation of Astronics. The Company’s strategy is to increase its value by developing technologies and capabilities that provide innovative solutions to its targeted markets. For more information on Astronics and its solutions, visit Astronics.com.

About Vertical Aerospace

Vertical Aerospace is a global aerospace and technology company pioneering electric aviation. Vertical is creating a safer, cleaner, and quieter way to travel. Valo is a piloted, four-passenger, Electric Vertical Take-Off and Landing (eVTOL) aircraft, with zero operating emissions. Vertical is also developing a hybrid-electric variant, offering increased range and mission flexibility to meet the evolving needs of the advanced air mobility market.

Vertical combines partnerships with leading aerospace companies, including Honeywell, Syensqo and Aciturri, with its own proprietary battery and propeller technology to develop the world's most advanced and safest eVTOL.

Vertical has c.1,500 pre-orders of Valo, with customers across four continents, including American Airlines, Avolon, Bristow, GOL and Japan Airlines. Certain customer obligations are expected to be fulfilled via third-party agreements. Headquartered in Bristol, UK, Vertical's experienced leadership team comes from top-tier aerospace and automotive companies such as Rolls-Royce, Airbus, GM, and Leonardo. Together, they have previously certified and supported over 30 different civil and military aircraft and propulsion systems.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to our current expectations and views of future events. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act and Section 21E of the Exchange Act. Any express or implied statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements regarding a long-term supply agreement with Astronics to supply the low-voltage power distribution system for Valo, the design and manufacture of our aircraft and the hybrid-electric variant, certification and the commercialization of our aircraft and our ability to achieve regulatory certification of our aircraft product on any particular timeline or at all, the features and capabilities of the aircraft, business strategy and plans and objectives of management for future operations, including the building and testing of our prototype aircrafts on timelines projected, completion of the piloted test programme phases, selection of suppliers; as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate,” “will,” “aim,” “potential,” “continue,” “are likely to” and similar statements of a future or forward-looking nature. Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, including, without limitation, the other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on March 24, 2026, as such factors may be updated from time to time in our other filings with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. We disclaim any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law.

Key Takeaways Astronics shares rose 10.3% in three months, beating industry and sector declines.ATRO benefits from defense demand, air travel recovery and a Boeing 737 MAX contract win.ATRO shows strong estimates growth, discounted valuation, solid liquidity and rising earnings outlook. Shares of Astronics Corporation (ATRO - Free Report) have surged 10.3% in the past three months, outperforming both the Zacks Aerospace-Defense Equipment industry’s decrease of 9.1% and the broader Zacks Aerospace sector’s decline of 4.4%. It also came above the S&P 500’s decline of 5.2% in the same time frame.

Image Source: Zacks Investment Research

Other industry players like Hexcel (HXL - Free Report) and Curtiss-Wright Corp. (CW - Free Report) have also delivered a similar stellar performance in the past three months. Shares of HXL and CW have risen 0.2% and 20%, respectively, in the said period.

With ATRO’s strong performance in the market, many investors may feel encouraged to buy right away. However, before taking that step, it’s important to evaluate whether the company has the fundamental strength to support long-term growth or if the recent surge is temporary. Understanding the stability of ATRO’s growth prospects can help investors make a well-informed decision.

Tailwinds for ATROAstronics’ recent performance reflects a combination of solid industry demand, strategic positioning and contract wins. The company is a specialized provider of advanced electrical power, connectivity, lighting and test systems for the global aerospace and defense industry, serving both commercial and military aviation markets. This diversified exposure allows it to benefit from rising defense budgets as well as the continued recovery in global air travel.

Favorable demand trends are supporting growth across its end markets. Increasing defense spending is driving sustained demand for military aircraft, while airlines are investing in cabin upgrades, including in-seat power and in-flight connectivity systems. These trends align well with Astronics’ core offerings. The company secured a contract from Boeing in March 2026 to supply fuel tank access doors for the 737 MAX program, strengthening its long-standing relationship with the aircraft manufacturer and enhancing revenue visibility.

Astronics also benefits from structural advantages such as long product life cycles and high switching costs, which help build durable customer relationships and support recurring revenue streams. With the aerospace industry continuing to recover, these factors provide a solid foundation for long-term growth and margin improvement.

Moreover, management remains focused on improving profitability through cost discipline, supply-chain stabilization and prudent capital allocation. As production volumes increase, the company is expected to gain from operating leverage, leading to gradual margin expansion and improved free cash flow. A strong backlog, particularly within its aerospace segment, further supports visibility into future revenues.

ATRO’s EstimatesThe Zacks Consensus Estimate for 2026 sales implies year-over-year growth of 11.6%, while that for 2027 sales indicates an improvement of 7.1%.

The consensus estimate for 2026 earnings implies year-over-year growth of 30.4%, while that for 2027 earnings indicates an improvement of 20%.

Image Source: Zacks Investment Research

Further, the upward revision in its 2026 and 2027 earnings estimates over the past 60 days suggests investors’ increasing confidence in this stock’s earnings generation capabilities.

Image Source: Zacks Investment Research

ATRO Stock Reflects Discounted ValuationIn terms of valuation, ATRO’s forward 12-month price-to-sales (P/S) is 2.59X, a discount to the industry average of 11.73X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with its industry average.

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Other industry peers, on the contrary, are trading at a premium to ATRO. While Hexcel is trading at a forward 12-month P/S of 2.77X, Curtiss-Wright is trading at 6.80X.

ATRO’s Liquidity PositionATRO has a current ratio of 3.10. The ratio, being more than one, indicates that ATRO possesses sufficient capital to pay off its short-term debt obligations.

Hexcel has a current ratio of 5.07, while Curtiss-Wright has a current ratio of 12.52.

ATRO’s ROICATRO’s Return on Invested Capital stands at 17.29%, well above the industry average of 5.80%. This indicates that the company is generating strong returns on its investments and using its capital far more efficiently than most of its peers.

Should You Buy ATRO Stock Now?Astronics presents an attractive case for investors, supported by its discounted valuation, improving earnings outlook, solid growth forecasts, strong liquidity position and robust performance on the bourses. Thus, investors looking for exposure to the aerospace and defense space may consider buying this stock at current levels.

Astronics currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EAST AURORA, N.Y.--(BUSINESS WIRE)--Astronics Corporation (Nasdaq: ATRO) Launches Qi2 Wireless Charging Module, Delivering Future-Proof Technology for Modern Aircraft Cabins.

Key Takeaways Astronics and HEICO benefit from rising air travel, fleet expansion and higher defense spending demand.ATRO drives growth via new in-seat and wireless charging solutions targeting evolving passenger needs.ATRO outperforms HEI in stock gains, valuation and ROE, making it a more attractive investment choice. Growing global air travel is leading to larger aircraft fleet, while older planes are increasing the need for maintenance and aftermarket services. These trends are supporting demand for aerospace companies like Astronics Corporation (ATRO - Free Report) and HEICO Corporation (HEI - Free Report) . At the same time, higher defense spending is driving demand for advanced avionics, electronics and power systems used in military aircraft.

Overall, fleet expansion, defense upgrades and ongoing technological developments are key growth drivers for both companies.

Astronics focuses on electrical power systems, lighting, connectivity and cabin electronics for commercial and defense aircraft. In comparison, HEICO is a major global supplier of aircraft parts, including jet engines and other critical components.

With trends like aircraft electrification, digitalization and continued fleet growth, investors may wonder which company is better positioned for long-term growth. A closer look at ATRO and HEI can help identify which stock offers stronger potential.

Tailwinds for ATROAstronics continues to strengthen its position in the aerospace market through ongoing product innovation aimed at enhancing passenger experience and meeting evolving airline needs.

In April 2026, the company introduced its EmPower 1327-27 Dual USB-Type-C In-Seat Power Outlet, offering high-speed charging to support the increasing power demands of modern air travelers. As passengers rely more on personal electronic devices during flights, such advanced in-seat power solutions are becoming a key differentiator for airlines.

Astronics also launched the EmPower Qi21 Wireless Charging Module, marking a significant step forward in onboard power technology. This new solution enables efficient and reliable wireless charging for both passengers and crew, aligning with the broader industry shift toward more seamless and cable-free cabin experiences.

These product launches highlight Astronics’ focus on innovation and its ability to adapt to changing customer preferences. By expanding its portfolio of advanced cabin power solutions, the company is well-positioned to capture growing demand in the commercial aerospace market and support long-term growth.

Tailwinds for HEIHEICO continues to strengthen its market position through strategic acquisitions and participation in high-profile aerospace programs, supporting long-term growth and investor confidence.

In April 2026, HEICO highlighted its involvement in the Artemis II mission led by NASA, with its subsidiaries supplying mission-critical electronic components. 3D PLUS provided advanced memory devices for both the Space Launch System and the Orion spacecraft, while Exxelia contributed capacitors and magnetics used in the Orion spacecraft. This participation underscores HEICO’s capabilities in delivering high-reliability components for complex space missions.

HEICO has also remained active on the acquisition front. In April 2026, the company’s Electronic Technologies Group acquired a majority stake in Southwest Antennas, expanding its presence in advanced communication systems.

These strategic initiatives are expected to enhance HEICO’s product portfolio, expand its technological expertise and support steady growth across both its electronic technologies and aviation services businesses.

How Does the Zacks Consensus Estimate Compare for ATRO & HEI?The Zacks Consensus Estimate for ATRO’s 2026 sales and EPS implies an improvement of 11.6% and 30.4%, respectively, from the year-ago quarter’s reported figures. ATRO’s 2027 EPS estimates have improved over the past 60 days.

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The Zacks Consensus Estimate for HEI’s fiscal 2026 sales and EPS implies an improvement of 12.7% and 13.5%, respectively, from the year-ago quarter’s reported figures. The stock’s fiscal 2026 and 2027 EPS estimates have improved over the past 60 days.

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Stock Price Performance: ATRO vs. HEIIn the past year, ATRO has outperformed HEI. While ATRO’s shares surged 224.2%, HEI rose 6.5%.

Image Source: Zacks Investment Research

Astronics’ Valuation More Attractive Than HeicoAstronics is trading at a discount, with its forward 12-month price/earnings (P/E F12M) of 26.31X being lower than HEI’s P/E F12M of 45.28X.

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ATRO’s ROE Better Than HEIA comparison of Return on Equity (ROE) shows that ATRO is more efficient at generating profits from its equity, with an ROE of 39.95% compared with HEI’s 16.57%.

ConclusionRising global air traffic, ongoing fleet expansion and higher defense spending are expected to support steady demand for aerospace service providers such as Astronics and HEICO.

While both companies are positioned to deliver solid revenue and earnings growth, Astronics stands out in terms of valuation and profitability metrics. Its better valuation, along with a stronger ROE, makes ATRO a more attractive choice for investors seeking a balanced combination of long-term growth and value.

ATRO currently carries a Zacks Rank #2 (Buy) at present, while HEI carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Astronics Corporation (ATRO - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Astronics Corporation is one of 67 companies in the Aerospace group. The Aerospace group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Astronics Corporation is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ATRO's full-year earnings has moved 2.5% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, ATRO has moved about 23.5% on a year-to-date basis. Meanwhile, the Aerospace sector has returned an average of -4.2% on a year-to-date basis. As we can see, Astronics Corporation is performing better than its sector in the calendar year.

Another stock in the Aerospace sector, BWX Technologies (BWXT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 20.4%.

Over the past three months, BWX Technologies' consensus EPS estimate for the current year has increased 8%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Astronics Corporation belongs to the Aerospace - Defense Equipment industry, a group that includes 37 individual stocks and currently sits at #155 in the Zacks Industry Rank. This group has lost an average of 1.2% so far this year, so ATRO is performing better in this area. BWX Technologies is also part of the same industry.

Astronics Corporation and BWX Technologies could continue their solid performance, so investors interested in Aerospace stocks should continue to pay close attention to these stocks.

ATRO heads into Q1 earnings with strong aerospace demand, margin expansion and a 157.2% stock surge over the past year.

EAST AURORA, N.Y.--(BUSINESS WIRE)--Astronics Corporation (Nasdaq: ATRO) (“Astronics” or the “Company”), a leading supplier of advanced technologies and products to the global aerospace, defense, and other mission critical industries, today reported financial results for the three months ended April 4, 2026. Financial results include the acquisition of Bühler Motor Aviation (“BMA”) on October 13, 2025.

Peter J. Gundermann, Chairman, President and Chief Executive Officer, commented, “We are off to a strong start in 2026 with strong growth, expanded margins and record bookings and backlog. Our team’s focus on operational execution combined with higher volume delivered adjusted EBITDA1 margin of 16.4%. Demand across markets for our products remains robust, as evidenced by record bookings that were driven by strength in both Aerospace and Test. Our activity level is expected to pick up noticeably in the coming quarters and we believe we are well-positioned to capitalize on the opportunities ahead.”

First Quarter Results

Three Months Ended

($ in thousands)

April 4, 2026

March 29, 2025

% Change

Sales

$

230,619

$

205,936

12.0

%

Gross profit

$

75,133

$

60,849

23.5

%

Gross margin

32.6

%

29.5

%

Income from operations

$

27,230

$

13,137

107.3

%

Operating margin %

11.8

%

6.4

%

Net income

$

25,540

$

9,528

168.1

%

Net income %

11.1

%

4.6

%

Adjusted operating income2

$

29,560

$

22,619

30.7

%

Adjusted operating margin %2

12.8

%

11.0

%

Adjusted net income2

$

22,501

$

16,973

32.6

%

Adjusted EBITDA2

$

37,901

$

30,739

23.3

%

Adjusted EBITDA margin %2

16.4

%

14.9

%

First Quarter 2026 Results (compared with the prior-year period, unless noted otherwise)

Growth in sales was driven by the Aerospace segment’s continued strength in demand primarily from the Commercial Transport market. Aerospace sales increased $22.4 million, or 11.7%, while Test Systems sales grew $2.2 million, or 15.4%.

Gross profit increased $14.3 million to $75.1 million, or 32.6% of sales, an improvement over gross margin of 29.5% in the comparator quarter. Gross profit growth and margin expansion were primarily attributable to higher volume, improved productivity, and a $2.8 million catch-up of profit on the MV-75 program based on revised program estimates. This was partially offset by a $1.7 million increase in tariff expenses. In the prior year, first quarter consolidated sales and gross profit was negatively impacted by a $1.9 million revision of estimated costs to complete a long-term mass transit contract in the Test Systems segment.

Selling, general and administrative expenses (“SG&A”) decreased $0.8 million. Litigation-related expenses were down $1.2 million, and the prior-year period included a $6.2 million reserve adjustment to the damage award relating to the patent infringement dispute in the UK. Appeals to the UK damage award are scheduled to be heard in July 2026. These decreases were mostly offset by higher wages and benefits, higher incentive-based compensation expenses driven by increased profitability, and incremental expenses related to the acquired BMA business. R&D was up $1.0 million reflecting the timing of projects.

Operating margin expanded 540 basis points and adjusted operating margin2 expanded 180 basis points as a result of higher volume and improved productivity in the Aerospace segment, coupled with savings from the recent Test Systems cost rationalization activities.

Interest expense was down $0.8 million, or 25.8%, on lower rates following the September 2025 refinancing activities. Tax benefit in the quarter of $0.8 million was related to a $2.7 million discrete adjustment for the expected benefit of a stock-based compensation deduction, a valuation allowance reversal, and research and development costs expected to be expensed. Tax expense in the prior year period was partially offset by a $1.1 million discrete adjustment to reverse certain federal and state deferred tax liabilities.

Consolidated net income of $0.67 per diluted share improved from $0.26 per diluted share in the prior-year period from stronger operating profit, lower interest expense and lower tax. Adjusted EBITDA2 increased 23.3% to $37.9 million, and adjusted EBITDA margin2 expanded 150 basis points to 16.4% of consolidated sales.

Record bookings of $290.4 million in the quarter resulted in a book-to-bill ratio of 1.26:1. For the trailing twelve months, bookings totaled $935.1 million and the book-to-bill ratio was 1.05:1. Backlog at the end of the quarter was $734.3 million, the highest in the Company’s history.

Aerospace Segment Review (compared with the prior-year period, unless noted otherwise)

Aerospace segment sales of $213.8 million increased $22.4 million, or 11.7%. Sales in the Commercial Transport market increased $18.9 million, or 13.7%. Growth was primarily related to increased demand for seat motion and lighting and safety products. General Aviation sales increased $6.2 million, or 40.7%, to $21.4 million due to higher inflight entertainment & connectivity (“IFEC”) product sales to the VVIP market. Military Aircraft sales remained consistent with the prior-year period. Other sales decreased $2.9 million as the Company has wound down its non-core contract manufacturing arrangements.

Aerospace segment operating profit of $35.3 million, or 16.5% of sales, improved over the prior-year period reflecting the leverage gained on higher volume, improving production efficiencies, the cumulative catch-up of profit on the MV-75 program based on revised program estimates, and a $7.0 million decrease in litigation-related expenses and legal reserve adjustments related to the UK patent dispute previously discussed. Adjusted Aerospace operating profit2 increased 20.0% to $37.2 million, or 17.4% of sales, a 120-basis point expansion over the comparator quarter.

Aerospace bookings were $264.4 million for a book-to-bill ratio of 1.24:1. Record backlog for the Aerospace segment was $651.4 million at quarter end.

Mr. Gundermann commented, “Our Aerospace business had a solid first quarter with our second-highest quarterly sales total, trailing only the preceding fourth quarter. Strong sales led to a 16.5% operating margin. Market demand for our products remains strong and we are well positioned to set new records in the coming periods.”

Test Systems Segment Review (compared with the prior-year period, unless noted otherwise)

Test Systems segment sales of $16.8 million were up $2.2 million from the comparator quarter in 2025. Segment sales in the prior-year period were negatively impacted by a $1.9 million revision of estimated costs to complete a certain long-term mass transit Test contract reducing revenue recognized in the period.

Test Systems segment operating profit was $0.4 million, compared with an operating loss of $2.2 million in the first quarter of 2025. Test Systems profitability, while improving, continues to be negatively affected by mix and under absorption of fixed costs at current volume levels.

Bookings for the Test Systems segment in the quarter were $26.1 million. The book-to-bill ratio for the quarter was 1.55:1. Backlog for the Test Systems segment was $83.0 million at quarter end.

Mr. Gundermann commented, “Results in our Test business continue to confirm that our significant cost-cutting and efficiency actions have been effective, and we expect results to improve significantly as the radio test program for the U.S. Army begins. We understand that a production award is on track to be issued in the coming weeks, with the production phase of the program accelerating in the second half of the year.”

Balance Sheet and Liquidity

Cash provided by operations in the first quarter of 2026 was $10.6 million, reflecting higher cash earnings offset by higher working capital requirements, including higher inventory levels to support anticipated revenue growth in the coming quarters. Capital expenditures in the quarter were $11.2 million. Elevated capital expenditures reflect necessary catch-up investments on previously deferred spending as well as the consolidation of operations and capacity improvement in a new Seattle facility. The Company expects to be free cash flow positive for the remainder of the year.

Long-term debt was relatively unchanged at quarter-end at $334.9 million. The Company had available liquidity of $231.8 million at quarter-end, including $19.1 million in available cash.

2026 Outlook

Astronics expects 2026 revenue for the year to be in the range of $970 million to $1 billion, which would surpass the record level sales of 2025. The midpoint of the revised range would be a 14% increase over 2025 sales.

Record backlog at the end of the first quarter was $734.3 million, of which approximately 81% is expected to drive revenue over the next twelve months. Mr. Gundermann concluded, “We expect second quarter sales of $245 million to $250 million, which will be a new record for the Company, and we expect our revenue rate in the second half to rise further from there. Demand remains strong for our products and capabilities, and all indications point to a very strong 2026 for our Company.”

Planned capital expenditures in 2026 are expected to be in the range of $40 million to $45 million driven largely by costs associated with the Seattle operation consolidation, which will conclude in the second quarter. In addition, the Company is in the early phases of implementing a new global resource planning system. Astronics expects to spend approximately $15 million to $17 million on this project in 2026, excluding reallocated internal operating costs. Approximately $2 million to $3 million of the investment will be incremental operating expense with the remainder to be capitalized and reported as a cash outflow from operations. The total cost of the project over five years, excluding reallocated internal operating expenses, is expected to be approximately $35 million to $40 million of which $25 million is expected to be capitalized.

First Quarter 2026 Webcast and Conference Call

The Company will host a teleconference today at 4:45 p.m. ET. During the teleconference, management will review the financial and operating results for the period and discuss Astronics’ corporate strategy and outlook. A question-and-answer session will follow.

The Astronics conference call can be accessed by calling (201) 493-6784. The listen-only audio webcast can be monitored at investors.astronics.com. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13759858. The telephonic replay will be available from 8:00 p.m. on the day of the call through Tuesday, May 26, 2026. The webcast replay can be accessed via the investor relations section of the Company’s website where a transcript will also be posted once available.

About Astronics Corporation

Astronics Corporation (Nasdaq: ATRO) serves the world’s aerospace, defense, and other mission-critical industries with proven innovative technology solutions. Astronics works side-by-side with customers, integrating its array of power, connectivity, lighting, structures, interiors, and test technologies to solve complex challenges. For over 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe manufacturers, airlines, military branches, completion centers, and Fortune 500 companies rely on the collaborative spirit and innovation of Astronics. The Company’s strategy is to increase its value by developing technologies and capabilities that provide innovative solutions to its targeted markets.

Safe Harbor Statement

This news release contains forward-looking statements as defined by the Securities Exchange Act of 1934. One can identify these forward-looking statements by the use of the words “expect,” “anticipate,” “plan,” “may,” “will,” “estimate,” “feeling” or other similar expressions and include all statements with regard to the Company’s 2026 outlook including the level of activity in coming quarters, the expectation of setting new records in coming periods, the timing of the receipt of production orders for U.S. Army radio test set program, the level of profitability contribution from the Test segment with its onset, and the rate of revenue growth in the second half of 2026. The forward-looking statements also include all statements related to achieving any revenue or profitability expectations, expectations of continued growth, the level of liquidity, the level of cash generation and free cash flow, the level of demand by customers and markets and the amount of expected capital expenditures, the amount of investment in an ERP system, the amount of backlog to be recognized as revenue over the next twelve months, and statements regarding the amount of opportunities available to be executed. Because such statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. Important factors that could cause actual results to differ materially from what may be stated here include the trend in growth with passenger power and connectivity on airplanes, the state of the aerospace and defense industries, the market acceptance of newly developed products, internal production capabilities, the timing of orders received, the status of customer certification processes and delivery schedules, the demand for and market acceptance of new or existing aircraft which contain the Company’s products, the impact of regulatory activity and public scrutiny on production rates of a major U.S. aircraft manufacturer, the need for new and advanced test equipment, customer preferences and relationships, the effectiveness of the Company’s supply chain and execution on opportunities, and other factors which are described in filings by Astronics with the Securities and Exchange Commission. Except as required by applicable law, the Company assumes no obligation to update forward-looking information in this news release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.

Use of Non-GAAP Financial Metrics and Additional Financial Information

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Astronics provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. Astronics management uses these measures for reviewing the financial results of Astronics for budget planning purposes and for making operational and financial decisions. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, help investors evaluate Astronics core operating and financial performance and business trends consistent with how management evaluates such performance and trends.

FINANCIAL TABLES FOLLOW

ASTRONICS CORPORATION

CONSOLIDATED STATEMENT OF OPERATIONS DATA

(Unaudited, $ in thousands except per share amounts)

Three Months Ended

4/4/2026

3/29/2025

Sales

$

230,619

$

205,936

Cost of products sold

155,486

145,087

Gross profit

75,133

60,849

Gross margin

32.6

%

29.5

%

Research and development expenses

12,089

11,067

Selling, general and administrative

35,814

36,645

SG&A % of sales

15.5

%

17.8

%

Income from operations

27,230

13,137

Operating margin

11.8

%

6.4

%

Other expense (income)

109

(187

)

Interest expense, net

2,336

3,150

Income before tax

24,785

10,174

Income tax (benefit) expense

(755

)

646

Net income

$

25,540

$

9,528

Net income % of sales

11.1

%

4.6

%

Basic earnings per share:

$

0.71

$

0.27

Diluted earnings per share:3

$

0.67

$

0.26

Weighted average diluted shares outstanding (in thousands)

38,223

42,957

ASTRONICS CORPORATION

CONSOLIDATED BALANCE SHEETS

($ in thousands)

(unaudited)

4/4/2026

12/31/2025

ASSETS

Cash and cash equivalents

$

11,867

$

18,180

Accounts receivable, net of allowance for estimated credit losses

217,024

204,672

Inventories

211,945

196,860

Prepaid expenses and other current assets

27,792

18,027

Total current assets

468,628

437,739

Property, plant and equipment, net of accumulated depreciation

115,481

107,078

Operating right-of-use assets

32,626

32,269

Other assets

13,742

11,316

Intangible assets, net of accumulated amortization

52,320

55,353

Goodwill

64,346

62,923

Total assets

$

747,143

$

706,678

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

55,873

$

41,080

Current operating lease liabilities

5,986

5,802

Accrued expenses and other current liabilities

66,183

68,324

Customer advances and deferred revenue

29,666

26,069

Total current liabilities

157,708

141,275

Long-term debt

334,885

334,451

Long-term operating lease liabilities

38,239

38,101

Other liabilities

54,609

52,777

Total liabilities

585,441

566,604

Shareholders’ equity:

Common stock

386

385

Accumulated other comprehensive loss

(5,438

)

(4,410

)

Other shareholders’ equity

166,754

144,099

Total shareholders’ equity

161,702

140,074

Total liabilities and shareholders’ equity

$

747,143

$

706,678

ASTRONICS CORPORATION

CONSOLIDATED CASH FLOWS DATA

Three Months Ended

(Unaudited, $ in thousands)

4/4/2026

3/29/2025

Cash flows from operating activities:

Net income

$

25,540

$

9,528

Adjustments to reconcile net income to cash from operating activities:

Non-cash items:

Depreciation and amortization

5,894

5,588

Amortization of deferred financing fees

607

602

Provisions for non-cash losses on inventory and receivables

1,441

1,728

Equity-based compensation expense

2,556

2,345

Deferred tax expense (benefit)

62

(1,125

)

Operating lease non-cash expense

1,463

1,550

Non-cash litigation provision adjustment

—

6,228

Other

681

(214

)

Cash flows from changes in operating assets and liabilities:

Accounts receivable

(13,420

)

(2,037

)

Inventories

(16,404

)

515

Accounts payable

14,997

2,867

Operating lease liabilities

(1,515

)

(1,071

)

Accrued expenses

(6,655

)

(11,514

)

Income taxes

(982

)

959

Cloud computing implementation costs

(2,370

)

—

Customer advance payments and deferred revenue

3,614

2,776

Supplemental retirement plan liabilities

(181

)

(101

)

Other assets and liabilities

(4,722

)

2,018

Net cash provided by operating activities

10,606

20,642

Cash flows from investing activities:

Capital expenditures

(11,160

)

(2,105

)

Net cash used by investing activities

(11,160

)

(2,105

)

Cash flows from financing activities:

Proceeds from long-term debt

30,000

1,143

Principal payments on long-term debt

(30,000

)

(10,000

)

Financing-related costs

—

(740

)

Stock award activity

(5,441

)

(1,730

)

Other

(60

)

(44

)

Net cash used by financing activities

(5,501

)

(11,371

)

Effect of exchange rates on cash

(258

)

354

(Decrease) increase in cash and cash equivalents and restricted cash

(6,313

)

7,520

Cash and cash equivalents and restricted cash at beginning of period

18,180

18,428

Cash and cash equivalents and restricted cash at end of period

$

11,867

$

25,948

Supplemental disclosure of cash flow information

Non-cash investing activities:

Capital expenditures in accounts payable

$

425

$

—

Interest paid

$

2,668

$

2,724

Income taxes refunded, net of payments

$

195

$

827

ASTRONICS CORPORATION

SEGMENT SALES AND PROFIT

(Unaudited, $ in thousands)

Three Months Ended

4/4/2026

3/29/2025

Sales

Aerospace

$

213,843

$

191,388

Less inter-segment

(23

)

(13

)

Total Aerospace

213,820

191,375

Test Systems

16,824

14,592

Less inter-segment

(25

)

(31

)

Total Test Systems

16,799

14,561

Total consolidated sales

230,619

205,936

Segment gross profit and margins

Aerospace

70,693

58,483

33.1

%

30.6

%

Test Systems

4,440

2,366

26.4

%

16.2

%

Total gross profit

75,133

60,849

32.6

%

29.5

%

Segment operating profit and margins

Aerospace

35,332

22,264

16.5

%

11.6

%

Test Systems

403

(2,223

)

2.4

%

(15.3

)%

Total segment operating profit

35,735

20,041

Interest expense

2,336

3,150

Corporate expenses and other

8,614

6,717

Income before taxes

$

24,785

$

10,174

Beginning in the current year, the Company reorganized its product line structure to align with changes in internal reporting. Refer to the Supplemental Prior Period Tables within this release for prior-year recast of disaggregation of sales by product line to conform with the updated, current-period presentation. Please refer to the Company’s Quarterly Report on Form 10-Q for the quarter ended April 4, 2026 for additional details.

ASTRONICS CORPORATION

SALES BY MARKET

(Unaudited, $ in thousands)

Three Months Ended

2026 YTD

4/4/2026

3/29/2025

% Change

% of Sales

Aerospace Segment

Commercial Transport

$

156,419

$

137,542

13.7

%

67.8

%

Military Aircraft

33,502

33,263

0.7

%

14.5

%

General Aviation

21,449

15,243

40.7

%

9.3

%

Other

2,450

5,327

(54.0

)%

1.1

%

Aerospace Total

213,820

191,375

11.7

%

92.7

%

Test Systems Segment

Government & Defense

16,799

14,561

15.4

%

7.3

%

Total Sales

$

230,619

$

205,936

12.0

%

SALES BY PRODUCT LINE4

(Unaudited, $ in thousands)

Three Months Ended

Recast

2026 YTD

4/4/2026

3/29/2025

% Change

% of Sales

Aerospace Segment

Inflight Entertainment & Connectivity

$

110,748

$

103,110

7.4

%

48.1

%

Lighting & Safety

52,807

51,957

1.6

%

22.9

%

Flight Critical Electrical Power

24,763

21,314

16.2

%

10.7

%

Seat Motion

19,879

6,672

197.9

%

8.6

%

Other

5,623

8,322

(32.4

)%

2.4

%

Aerospace Total

213,820

191,375

11.7

%

92.7

%

Test Systems

16,799

14,561

15.4

%

7.3

%

Total

$

230,619

$

205,936

12.0

%

ASTRONICS CORPORATION

ORDER AND BACKLOG TREND

(Unaudited, $ in thousands)

Q2 2025

Q3 2025

Q4 2025

Q1 2026

Trailing Twelve Months

6/28/2025

9/27/2025

12/31/2025

4/4/2026

4/4/2026

Sales

Aerospace

$

193,626

$

192,725

$

219,593

$

213,820

$

819,764

Test Systems

11,052

18,722

20,474

16,799

67,047

Total Sales

$

204,678

$

211,447

$

240,067

$

230,619

$

886,811

Bookings

Aerospace

$

150,636

$

191,859

$

237,327

$

264,381

$

844,203

Test Systems

26,390

18,532

19,902

26,067

90,891

Total Bookings

$

177,026

$

210,391

$

257,229

$

290,448

$

935,094

Backlog5

Aerospace

$

570,913

$

572,459

$

600,803

$

651,364

Test Systems

74,454

74,264

73,692

82,960

Total Backlog

$

645,367

$

646,723

$

674,495

$

734,324

N/A

Book:Bill Ratio

Aerospace

0.78

1.00

1.08

1.24

1.03

Test Systems

2.39

0.99

0.97

1.55

1.36

Total Book:Bill

0.86

1.00

1.07

1.26

1.05

ASTRONICS CORPORATION

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

(Unaudited, $ in thousands)

Consolidated

Three Months Ended

4/4/2026

3/29/2025

Net income

$

25,540

$

9,528

Add back (deduct):

Interest expense

2,336

3,150

Income tax (benefit) expense

(755

)

646

Depreciation and amortization expense

5,894

5,588

Equity-based compensation expense

2,556

2,345

Restructuring-related charges including severance

—

279

ERP implementation consulting expenses

174

—

Legal reserve, settlements and recoveries

—

6,228

Litigation-related legal expenses

1,779

2,975

Acquisition-related expenses

186

—

Warranty reserve

191

—

Adjusted EBITDA

$

37,901

$

30,739

Sales

$

230,619

$

205,936

Adjusted EBITDA margin %

16.4

%

14.9

%

Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by sales. Adjusted EBITDA and Adjusted EBITDA Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company’s financial statements.

ASTRONICS CORPORATION

RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME

(Unaudited, $ in thousands)

Consolidated

Three Months Ended

4/4/2026

3/29/2025

Income from operations

$

27,230

$

13,137

Add back:

Restructuring-related charges including severance

—

279

ERP implementation consulting expenses

174

—

Legal reserve, settlements and recoveries

—

6,228

Litigation-related legal expenses

1,779

2,975

Acquisition-related expenses

186

—

Warranty reserve

191

—

Adjusted operating income

$

29,560

$

22,619

Sales

$

230,619

$

205,936

Operating margin

11.8

%

6.4

%

Adjusted operating margin

12.8

%

11.0

%

Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current periods’ income from operations to the historical periods’ income from operations and operating margin, as well as facilitates a more meaningful comparison of the Company’s income from operations and operating margin to that of other companies.

ASTRONICS CORPORATION

RECONCILIATION OF NET INCOME AND DILUTED EARNINGS PER SHARE

TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE

(Unaudited, $ in thousands except per share amounts)

Consolidated

Three Months Ended

4/4/2026

3/29/2025

Net income

$

25,540

$

9,528

Add back (deduct):

Amortization of intangibles

2,887

2,975

Restructuring-related charges including severance

—

279

ERP implementation consulting expenses

174

—

Legal reserve, settlements and recoveries

—

6,228

Litigation-related legal expenses

1,779

2,975

Acquisition-related expenses

186

—

Warranty reserve

191

—

Normalize tax rate6

(8,256

)

(5,012

)

Adjusted net income

$

22,501

$

16,973

Weighted average diluted shares outstanding (in thousands)

38,223

42,957

Diluted earnings per share

$

0.67

$

0.26

Adjusted diluted earnings per share7

$

0.59

$

0.44

Adjusted Net Income and Adjusted Diluted EPS are defined as net income and diluted EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Net Income and Adjusted Diluted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Net Income and Adjusted Diluted EPS, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current periods’ net income and diluted EPS to the historical periods’ net income and diluted EPS, as well as facilitates a more meaningful comparison of the Company’s net income and diluted EPS to that of other companies. The Company believes that presenting Adjusted Diluted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company’s strategy to grow through acquisitions as well as organically.

ASTRONICS CORPORATION

RECONCILIATION OF SEGMENT OPERATING PROFIT (LOSS)

TO ADJUSTED SEGMENT OPERATING PROFIT (LOSS)

(Unaudited, $ in thousands)

Three Months Ended

4/4/2026

3/29/2025

Aerospace operating profit

$

35,332

$

22,264

Restructuring-related charges including severance

—

279

ERP implementation consulting expenses

174

—

Legal reserve, settlements and recoveries

—

6,228

Litigation-related legal expenses

1,511

2,244

Warranty reserve

191

—

Adjusted Aerospace operating profit

$

37,208

$

31,015

Aerospace sales

$

213,820

$

191,375

Aerospace margin

16.5

%

11.6

%

Adjusted Aerospace margin

17.4

%

16.2

%

Test Systems operating profit (loss)

$

403

$

(2,223

)

Litigation-related legal expenses

48

731

Adjusted Test Systems operating profit (loss)

$

451

$

(1,492

)

Test Systems sales

$

16,799

$

14,561

Test Systems margin

2.4

%

(15.3

)%

Adjusted Test Systems margin

2.7

%

(10.2

)%

Adjusted Segment Operating Profit is defined as segment operating profit as reported, adjusted for certain items. Adjusted Segment Margin is defined as Adjusted Segment Operating Profit divided by segment sales. Adjusted Segment Operating Profit and Adjusted Segment Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Segment Operating Profit and Adjusted Segment Margin as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Adjusted Segment Operating Profit and Adjusted Segment Margin, are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current periods’ segment operating profit to the historical periods’ segment operating profit and segment margin, as well as facilitates a more meaningful comparison of the Company’s segment operating profit and segment margin to that of other companies.

Supplemental Prior Period Tables

The following tables provide a prior-year recast of the disaggregation of sales by product line by quarter for the years ending December 31, 2025 and 2024, to conform with the updated, current-period presentation.

SALES BY PRODUCT LINE8

(Unaudited, $ in thousands)

Recast

Three Months Ended

Year Ended

2025 YTD

3/29/2025

6/28/2025

9/27/2025

12/31/2025

12/31/2025

% of Sales

Aerospace Segment

Inflight Entertainment & Connectivity

$

103,110

$

105,902

$

105,780

$

119,447

$

434,239

50.4

%

Lighting & Safety

51,957

56,100

52,807

55,719

216,583

25.1

%

Flight Critical Electrical Power

21,314

15,832

16,747

19,813

73,706

8.5

%

Seat Motion

6,672

10,217

11,721

18,632

47,242

5.5

%

Other

8,322

5,575

5,670

5,982

25,549

3.0

%

Aerospace Total

191,375

193,626

192,725

219,593

797,319

92.5

%

—

Test Systems

14,561

11,052

18,722

20,474

64,809

7.5

%

—

Total

$

205,936

$

204,678

$

211,447

$

240,067

$

862,128

100.0

%

Recast

Three Months Ended

Year Ended

2024 YTD

3/30/2024

6/29/2024

9/28/2024

12/31/2024

12/31/2024

% of Sales

Aerospace Segment

Inflight Entertainment & Connectivity

$

89,620

$

94,065

$

94,838

$

105,156

$

383,679

48.2

%

Lighting & Safety

44,067

48,654

48,874

46,760

188,355

23.7

%

Flight Critical Electrical Power

14,396

19,045

17,871

17,056

68,368

8.6

%

Seat Motion

6,870

7,353

9,416

11,590

35,229

4.4

%

Other

8,685

7,826

6,555

7,987

31,053

3.9

%

Aerospace Total

163,638

176,943

177,554

188,549

706,684

88.8

%

—

Test Systems

21,436

21,171

26,144

19,991

88,742

11.2

%

—

Total

$

185,074

$

198,114

$

203,698

$

208,540

$

795,426

100.0

%

  1 Adjusted EBITDA, adjusted EBITDA margin, and adjusted segment operating margin are Non-GAAP financial measures. Please see the reconciliation of GAAP to non-GAAP financial measures in the tables that accompany this release.   2 Adjusted operating income, adjusted operating margin, adjusted segment operating profit, adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted diluted earnings per share (“EPS”) are Non-GAAP financial measures. Please see the reconciliation of GAAP to non-GAAP financial measures in the tables that accompany this release.   3 In addition to incremental shares from stock awards, weighted average diluted shares for the quarter ended April 4, 2026 reflects 0.992 million assumed shares underlying the premium on the 0% convertible bonds, to the extent the average stock price for the quarter ($72.38) exceeded the $54.87 conversion price. Note that because of the capped call, there is no effective dilution to shareholders resulting from the 0% convertible bonds unless and until the share price exceeds $83.41. The diluted EPS calculation for the quarter ended April 4, 2026 excludes the effect of the 5.5% Notes because the effect is anti-dilutive. The diluted EPS calculation for the quarter ended March 29, 2025 reflects 7.208 million assumed shares underlying the 5.5% convertible bonds.   4 Inflight Entertainment & Connectivity (“IFEC”) is a combination of the previous Avionics and Systems Certification product lines, as well as cabin power products which were included in the previous Electrical Power & Motion product line. The remainder of the previous Electrical Power & Motion product line is now split into two discrete product lines, Flight Critical Electrical Power and Seat Motion. Lighting and Safety remains consistent and Structures is now reported within Other Aerospace revenue.   5 Aerospace backlog of approximately $2.4 million and $10.6 million was added in the third and fourth quarters of 2025, respectively, in connection with the acquisitions of Envoy Aerospace and Bühler Motor Aviation.   6 Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.   7 In addition to incremental shares from stock awards, weighted average diluted shares for the quarter ended April 4, 2026 reflects 0.992 million assumed shares underlying the premium on the 0% convertible bonds, to the extent the average stock price for the quarter ($72.38) exceeded the $54.87 conversion price. Note that because of the capped call, there is no effective dilution to shareholders resulting from the 0% convertible bonds unless and until the share price exceeds $83.41. The diluted EPS calculation for the quarter ended April 4, 2026 excludes the effect of the 5.5% Notes because the effect is anti-dilutive. The diluted EPS calculation for the quarter ended March 29, 2025 reflects 7.208 million assumed shares underlying the 5.5% convertible bonds.   8 Inflight Entertainment & Connectivity (“IFEC”) is a combination of the previous Avionics and Systems Certification product lines, as well as cabin power products which were included in the previous Electrical Power & Motion product line. The remainder of the previous Electrical Power & Motion product line is now split into two discrete product lines, Flight Critical Electrical Power and Seat Motion. Lighting and Safety remains consistent and Structures is now reported within Other Aerospace revenue.

Astronics Corporation (ATRO - Free Report) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.44 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +7.27%. A quarter ago, it was expected that this company would post earnings of $0.63 per share when it actually produced earnings of $0.75, delivering a surprise of +19.05%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Astronics, which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $230.62 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.51%. This compares to year-ago revenues of $205.94 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Astronics shares have added about 39.7% since the beginning of the year versus the S&P 500's gain of 8.3%.

What's Next for Astronics?While Astronics has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Astronics was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.65 on $237.6 million in revenues for the coming quarter and $2.62 on $962 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense Equipment is currently in the bottom 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Heico Corporation (HEI - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on May 27.

This company is expected to post quarterly earnings of $1.33 per share in its upcoming report, which represents a year-over-year change of +18.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Heico Corporation's revenues are expected to be $1.24 billion, up 12.8% from the year-ago quarter.

FORT LAUDERDALE, FLORIDA - MAY 02: Spirit Airlines planes are parked on the tarmac at the Fort Lauderdale-Hollywood International Airport on May 02, 2026 in Fort Lauderdale, Florida. Spirit Aviation Holdings Inc. announced today that it has canceled all upcoming flights and begun a wind-down of Spirit Airlines operations after failing to secure funding from the Trump administration. (Photo by Joe Raedle/Getty Images)

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After Spirit Airlines vanished from the skies, its not-quite-sudden collapse raised questions about why the successful low-cost model, born in the U.S. airline industry, is failing.

Several factors have contributed to the difficulties Spirit Airlines faced. As Reuters reported, the airline’s attorney, Marshall Huebner, told the Southern District of New York Bankruptcy ​Court that the sudden spike in jet fuel prices, resulting from the closure of the Strait of Hormuz during the conflict in Iran, had left the airline “no remaining way out” of bankruptcy.

U.S. Transportation Secretary Sean Duffy pointed the finger at the previous administration for its failure to approve a merger between JetBlue and Spirit that might have benefited both carriers.

A JetBlue airliner lands past a Spirit Airlines jet on taxi way at Fort Lauderdale Hollywood International Airport on Monday, April 25, 2022, in Florida. Spirit has urged its shareholders to reject a hostile takeover offer from the New York-based carrier over federal antitrust concerns. (Joe Cavaretta/South Florida Sun Sentinel/Tribune News Service via Getty Images)

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“Yet another mess the traveling public has to inherit thanks to the radical policies of Joe Biden and Pete Buttigieg. In blocking the JetBlue/Spirit merger in 2024, they turned their backs on the American consumer and our great aviation workforce,” Duffy said in the USDOT’s announcement of measures taken to support air travelers following Spirit’s wind-down of operations.

The Trump administration had been in discussion on a possible rescue package for Spirit, but those discussions broke down without success.

MORE FOR YOU

The Key Lesson Low-Cost Airlines Should Take Away From Spirit’s FallThere is a lot of blame going around in the aftermath of the airline’s failure. Still, a deeper analysis suggests that another factor behind Spirit’s collapse may require attention from other low-cost airlines that are still flying.

The market has changed since Southwest first started flying for peanuts in the 1970s. America’s major network airlines have consolidated and grown. They’ve also become more sophisticated in their retail operations, borrowing best practices from low-cost competitors to grow ancillary revenue.

However, as a recent analysis by the industry data visualization firm Visual Analytics suggests, aircraft choice might also be putting the profitable low-cost model at risk.

Larger Planes Favor Seat Cost, But Not Trip CostAs Visual Analytics CEO Courtney Miller explains, for years, the ultra-low-cost model has been optimized around packing as many seats as possible onto the largest narrowbody jets available, to drive down one key metric: the operating cost per seat. Lower seat costs allow airlines to offer lower airfares, but these fares are sustainable only if the aircraft are full, with ancillary fees to buffer a razor-thin margin. But the strategy is limited.

Whether an aircraft is flying full or empty, its trip costs are fixed by the aircraft’s operational demands. Flying a larger aircraft costs considerably more than flying a smaller one.

Flying a larger aircraft into markets with limited demand results in low passenger load factors, which translates into losses. Smaller aircraft can serve these same markets at a profit because the same number of passengers yields higher load factors that more than cover the aircraft’s trip costs.

FORT LAUDERDALE, FLORIDA - MAY 02: Spirit Airlines planes are parked on the tarmac at the Fort Lauderdale-Hollywood International Airport on May 02, 2026 in Fort Lauderdale, Florida. Spirit Aviation Holdings Inc. announced today that it has canceled all upcoming flights and begun a wind-down of Spirit Airlines operations after failing to secure funding from the Trump administration. (Photo by Joe Raedle/Getty Images)

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“Airlines that once relied on a low-cost sweet-spot near 100 seats have since grown average aircraft sizes in search of lower seat costs to today’s most popular low-cost capacity – 240 seats. This 240% increase in seat gauge brought the lower seat costs desired, but at an ever-dwindling number of markets for which an aircraft that large could be deployed,” Miller writes in a post dedicated to what he describes as the seat cost vs trip cost paradox facing low-cost carriers, which points to considerably more market potential in developing new routes within the small-aircraft range. “Once consistently profitable, ultra-low-cost airlines are now dealing with market saturation from prior years of growth while being limited to the largest aircraft available to sustain that much-needed growth.”

As Miller notes, the largest narrowbodies have “run out of markets,” leaving airlines with fewer viable routes to deploy them. But there are plenty of opportunities in routes better suited to smaller aircraft.

Low-cost airlines have acquired large aircraft, which are now limiting their market growth as they focus on minimizing per-seat costs. This strategy favors larger aircraft, such as the Airbus A320 family, which Spirit selected for its fleet.

GOODYEAR, ARIZONA - MAY 8: Spirit Airlines planes sit parked at the Phoenix Goodyear Airport on May 8, 2026 in Goodyear Arizona. The budget airline ceased all operations on May 2, 2026. (Photo by Rebecca Noble/Getty Images)

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“Considering $100 in revenues per passenger (fare and ancillary fees included), a small narrowbody will start delivering profit in markets with only 106 passengers. This low break-even load factor is not uncommon, as the A321neo with 240 seats would break even at only 148 passengers at this fare,” Miller explains. “Yet, even as passenger demand increased along certain routes, the small narrowbody would remain more profitable than the large narrowbody until it filled every seat.” What is more, Miller suggests that operating smaller aircraft in larger markets could still prove more profitable than operating large aircraft, at the expense of turning some passengers away.

Instead, Miller sees an opportunity for growth by operating both large and small aircraft. “The small narrowbody is not a replacement for the large narrowbody, but rather a supplement to unlock new growth while allowing the large narrowbody to focus on the most profitable routes,” he writes.

This means that low-cost airlines would need to reconsider another successful pillar of their long-term model: the single-type fleet. There are distinct advantages in single-type operations, such as streamlined maintenance and labor costs. But as the narrowbody aircraft that have formed the backbone of single-type fleets have stretched, the economics are failing.

In short, the biggest planes are the most efficient—until they aren’t.

The Fuel Shock That Broke SpiritThe recent spike in fuel prices accelerated Spirit’s collapse. The airline’s restructuring plan assumed jet fuel prices of about $2.24 per gallon. Instead, prices have surged above $4 per gallon, nearly doubling one of the airline’s highest costs.

A Spirit Airlines Airbus A320 lands at Hollywood Burbank Airport on April 17, 2026. Spirit Airlines has been facing financial troubles, while rising jet fuel due to the war in Iran has amplified their worries. (Photo by Patrick T. Fallon / AFP via Getty Images)

AFP via Getty Images

Fuel has always been a major expense for all airlines. Still, ultra-low-cost carriers are particularly exposed because they rely on high aircraft utilization to offset low fares that stimulate demand. They operate high-density seating configurations that add weight to aircraft, increasing fuel consumption.

But again, fuel consumption is also tied to aircraft size. Even with higher oil prices, airlines will have lower overall fuel spend operating Airbus A220s or Embraer 190s than with larger Airbus and Boeing narrowbody jets.

Spirit Shrunk, But Not In Time And Not EffectivelySpirit’s response to the financial crisis it faced was to shrink its fleet dramatically, to around 76 aircraft. The airline cut unprofitable routes, limiting its potential revenue, and focused on higher-revenue flying.

In doing so, the airline effectively admitted that its previous growth model—built on scale and density—no longer worked.

Spirit Airlines jets sat on the tarmac as the company ceased operations at Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida, on May 2, 2026. US air carriers mobilized Saturday to help passengers and crew members stranded by the overnight shutdown of Spirit Airlines, after last-minute talks with creditors and the White House collapsed. The budget airline known for its bright yellow planes succumbed to crushing fuel prices and announced in the early hours of Saturday that "all flights have been canceled, and customer service is no longer available" as it "started winding down its global operations, effective immediately." (Photo by GIORGIO VIERA / AFP via Getty Images)

AFP via Getty Images

Even before the latest fuel spike, Spirit had already reduced flying and burned through significant cash reserves in early 2026.

But shrinking the fleet and network alone was not a viable long-term strategy. Pivoting to smaller aircraft and moving into secondary markets with little competition might have made a difference, but Spirit could not deploy such a strategy in time.

Southwest’s Problem: The Just-Right Plane That Hasn’t ArrivedOther low-cost airlines are facing their own oversized-aircraft challenges.

Southwest Airlines has been waiting on the Boeing 737 MAX 7—a smaller, more flexible aircraft that fits its network strategy for years. Boeing certification delays have forced the airline to operate larger aircraft at higher trip costs, which the lower per-seat costs cannot offset.

RENTON, WA - FEBRUARY 5: The first Boeing 737 MAX 7 aircraft sits on the tarmac outside of the Boeing factory on February 5, 2018 in Renton, Washington. The 737 MAX 7 will have the longest range of the MAX airplane line with a maximum range of 3,850 nautical miles. (Photo by Stephen Brashear/Getty Images)

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Unlike Spirit, Southwest wants smaller planes—but can’t get them. The airline has modified its core operating model, which has worked for decades, introducing assigned seating, premium seating and baggage fees. This has brought Southwest closer to the strategy used by major network carriers, helping it adapt to current market conditions, but at the expense of its core brand differentiator.

Boeing plans to certify the 737 MAX 7 this year, with deliveries beginning next year. Southwest will be keen to deploy them.

Breeze Is Betting Big On Smaller AircraftWhile ultra-low-cost carriers have moved toward larger, high-density aircraft, one carrier is taking the opposite approach.

Breeze Airways, a venture of David Neeleman, founder of JetBlue Airways, serves underserved city pairs, with 57 Airbus A220s and eight Embraer 190s. The airline’s focus has been to employ more flexible aircraft than those favored by other low-cost competitors.

MORRISVILLE, NC - DECEMBER 27: A Breeze Airways plane at the gate at Terminal 1 at Raleigh-Durham International Airport (RDU) on December 27, 2025 in Morrisville, North Carolina. (Photo by Al Drago/Getty Images)

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Neeleman’s original concept for the airline emphasized the very advantage that Miller has highlighted: the ability to profitably connect smaller markets without relying on high passenger volumes. The market advantages are considerable.

“A lot of it is overflying hubs; where we can look at what the [daily passengers each way] PDEWs are and say ‘okay, well there’s 30 people to go between these two cities a day.’ If we lower the fare by half and can get them there twice as fast — which in some cases is even more important — instead of taking 4 hours to get you there, it’ll take an hour and 22 minutes to fly direct… People will go more often, and that’s been proven over and over again,” Neeleman told CrankyFlier in a 2020 interview, adding: “We have 500 routes we’re looking at, and there’s not one that I can think of that has another nonstop competitor on it…we’re very confident there’s a lot of opportunities.”

San Bernardino, CA - February 16: A Breeze Airways plane taxies to its gate at the San Bernardino International Airport, having successfully completed its inaugural flight from Las Vegas to San Bernardino on Thursday, Feb. 16, 2023.

MediaNews Group via Getty Images

One opportunity Breeze snapped up quickly, following Spirit’s failure, was to sweep into Atlantic City, where Spirit had been the predominant carrier, adding four new routes.

Flying smaller aircraft may not address all the challenges facing established low-cost carriers, but it does open up new opportunities for competition. Spirit’s exit may provide some relief for the remaining U.S. airlines, which can now more comfortably increase fares in key markets. But Breeze seems best positioned to capitalize on markets that still lack adequate air service, offering U.S. flyers a refreshing alternative to hub connections—on less-crowded planes.

Key Takeaways ATRO posted Q1 2026 sales up 12% to $230.6M and EPS up 157.7% to $0.67.AIR added A320 slat repair in Thailand, expanding Airbus component MRO across APAC.AIR acquired Aircraft Reconfig Technologies to bring STC and PMA approvals in-house. Growing aircraft deliveries worldwide, expanding airline fleet and rising demand for maintenance, repair and overhaul (MRO) services continue to support growth in the aviation services space. A steady rebound in global air travel, coupled with ongoing defense modernization efforts, has further increased investor interest in aerospace companies such as Astronics Corporation (ATRO - Free Report) and AAR Corp. (AIR - Free Report) .

Astronics focuses on advanced aircraft electrical power systems, in-flight connectivity, lighting technologies and other solutions that enhance passenger experience and support cockpit upgrades across both commercial and military aircraft. Meanwhile, AAR operates as a broad aviation services provider, delivering aftermarket support, component repair, parts distribution and integrated solutions to commercial airlines, government agencies and defense customers globally.

As the industry benefits from technological advancements, increasing emphasis on operational efficiency and gradually improving supply-chain conditions, aerospace support companies are drawing greater investor attention. In this environment, ATRO and AIR stand out as notable players, prompting investors to ask: which stock currently presents the stronger investment opportunity?

Tailwinds for ATROAstronics continues to benefit from favorable trends across the commercial aerospace and defense markets, supported by increasing airline demand for improved onboard passenger experience and next-generation cabin technologies. With travelers relying more heavily on personal electronic devices during flights, airlines are increasingly investing in advanced in-seat power and connectivity solutions, aligning well with Astronics’ product portfolio.

The company’s strong momentum was evident in its first-quarter 2026 results, released in May 2026. Sales increased 12% year over year to $230.6 million, while earnings per share surged 157.7% to 67 cents, reflecting improving operational performance and healthy demand across its end markets.

Astronics has also continued to strengthen its product lineup through innovation. In April 2026, the company introduced the EmPower 1327-27 Dual USB-Type-C In-Seat Power Outlet, designed to provide faster charging capabilities and meet the increasing power requirements of modern travelers. As passengers become more dependent on smartphones, tablets and laptops during flights, reliable and high-speed charging solutions are becoming an increasingly important offering for airlines.

Further enhancing its onboard power solutions portfolio, Astronics launched the EmPower Qi21 Wireless Charging Module, which enables convenient wireless charging for both passengers and crew. The product reflects the aviation industry’s growing focus on seamless, cable-free cabin environments, which may support broader adoption of Astronics’ technologies over time.

Tailwinds for AIRAAR is benefiting from rising demand for aircraft maintenance, repair and upgrade services as airlines continue to modernize fleet and improve operational efficiency. The company is also expanding its service capabilities to strengthen its position in the aviation aftermarket industry.

In May 2026, AAR expanded its Component MRO offerings by adding A320 slat repair services in the Asia-Pacific region. Through its authorized service center in Chonburi, Thailand, the company broadened its Airbus component repair capabilities, which already include products such as rudders, flaps and sharklets. AAR also enhanced its tooling to support both A320neo and A320ceo aircraft, helping it offer a wider range of repair services to customers.

AAR is also growing through acquisitions. In April 2026, the company completed the acquisition of Aircraft Reconfig Technologies, an engineering company focused on passenger aircraft reconfiguration. This acquisition strengthens AAR’s engineering and certification capabilities and allows it to handle approvals such as supplemental type certificates and Parts Manufacturer Approval internally. As a result, AAR is expected to improve its aircraft cabin design, manufacturing and certification services while reducing dependence on third parties.

How Does the Zacks Consensus Estimate Compare for ATRO & AIR?The Zacks Consensus Estimate for ATRO’s 2026 sales and earnings per share (EPS) implies an improvement of 13.7% and 33.3%, respectively, from the year-ago quarter’s reported figures. ATRO’s 2027 EPS estimates have moved south over the past 60 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AIR’s fiscal 2026 sales implies a year-over-year improvement of 17.7%, while that for EPS suggests a 27.1% surge. The stock’s fiscal 2026 and 2027 EPS estimates have improved over the past 60 days.

Image Source: Zacks Investment Research

Stock Price Performance: ATRO vs. AIRIn the past year, ATRO has outperformed AIR. While ATRO’s shares surged 166.8%, AIR rose 79.7%.

Image Source: Zacks Investment Research

AAR’s Valuation More Attractive Than AstronicsAstronics is trading at a premium, with its forward 12-month price/earnings of 29.71X being more than AIR’s forward price/earnings of 20.06X.

Image Source: Zacks Investment Research

Debt Performance: AIR & ATROATRO is highly debt-ridden when compared with AIR, as evident from the image below, which reflects its total debt-to-capital ratio. ATRO has a total debt-to-capital ratio of 67.44, while AIR has a total debt-to-capital ratio of 35.09.

Final CallBoth Astronics and AAR are benefiting from positive aerospace industry trends. However, AAR appears to be the better stock at the moment. The company is seeing strong demand for MRO services and is expanding its business through new service offerings and acquisitions. AAR also has stronger sales growth expectations, improving earnings estimates and a more attractive valuation, which support its growth outlook.

Astronics is also performing well, supported by healthy demand across commercial and defense markets and continued product innovation. However, the company carries higher debt and trades at a more expensive valuation compared with AAR. In addition, recent earnings estimate revisions favor AIR. Considering these factors, AAR looks like the stronger investment option between the two right now.

At present, AAR carries a Zacks Rank #2 (Buy), while Astronics carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Common and Class B shareholders to receive one Class B share for every 5 shares of Common Stock or Class B Stock held

EAST AURORA, N.Y.--(BUSINESS WIRE)--Astronics Corporation (Nasdaq: ATRO), a leading supplier of advanced technologies and products to the global aerospace, defense, and other mission critical industries, today announced a 20% stock distribution of Class B Stock to holders of both Common and Class B Stock. Shareholders will receive one share of Class B Stock for every five shares of Common and Class B Stock held on the record date of June 15, 2026. The Company expects the new shares of Class B Stock to be distributed on or about June 29, 2026. Fractional shares will be paid in cash.

Peter J. Gundermann, President and Chief Executive Officer of Astronics, commented, “We have a long history of ratably distributing Class B shares to all shareholders and our Board of Directors has elected to continue this custom. We believe it rewards our current shareholders and encourages long-term ownership and interest in Astronics.”

Astronics initially distributed shares of Class B Stock to Common and Class B shareholders in 1987, and this would make the fifteenth distribution since that time. After the distribution, approximately 32.1 million Common and 10.9 million Class B shares are expected to be outstanding.

Astronics’ Class B Stock is entitled to ten votes per share while its Common Stock is entitled to one vote per share. The economic value of one share of Class B Stock is equivalent to one share of Common Stock. Class B Stock is not a tradable security, but is convertible at any time and without cost to the shareholder, into one share of Astronics Corporation Common Stock, which is tradable and provides shareholders of Class B Stock access to the market. Subject to certain exceptions specified in our Restated Certificate of Incorporation, as amended, shares of Class B Stock automatically convert into an equal number of shares of Common Stock upon transfer.

Information regarding the Class B Stock distribution and instructions to convert Class B Stock into Common Stock can be found in the Frequently Asked Questions page of the Investor Relations section of the Astronics website at investors.astronics.com. Registered shareholders and brokers may contact the Company’s transfer agent, EQ Shareowner Services at (800) 468-9716, regarding the conversion of Class B Stock to Common Stock. EQ Shareowner Services is the agent for the distribution.

ABOUT ASTRONICS CORPORATION

Astronics Corporation (Nasdaq: ATRO) serves the world’s aerospace, defense, and other mission-critical industries with proven innovative technology solutions. Astronics works side-by-side with customers, integrating its array of power, connectivity, lighting, structures, interiors, and test technologies to solve complex challenges. For over 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe manufacturers, airlines, military branches, completion centers, and Fortune 500 companies rely on the collaborative spirit and innovation of Astronics. The Company’s strategy is to increase its value by developing technologies and capabilities that provide innovative solutions to its targeted markets.

Additional information on Astronics and its solutions can be found at Astronics.com.