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May 26, 2026 21:00 ET  | Source: ASTERA LABS, INC.

TAIPEI, Taiwan, May 26, 2026 (GLOBE NEWSWIRE) -- Astera Labs, Inc. (Nasdaq: ALAB), a leader in semiconductor-based connectivity solutions for rack-scale AI infrastructure, will host press and industry analysts at Computex 2026 in the company’s room at the Taipei Nangang Exhibition Center, Hall 1 (TaiNEX 1), Room 303, third floor.

WHAT: Astera Labs will use its Computex program to highlight the company’s latest news, rack-scale AI connectivity strategy, and collaboration with leading AI platform providers and Taiwan system and manufacturing partners.

Attendees will get a look at Astera Labs’ complete connectivity portfolio, including the first public demonstration of the Scorpio™ X-Series 320 Lane Smart Fabric Switch, ultra-low latency linear optical connectivity, COSMOS-enabled rack-level validation, and production-ready systems from Astera Labs and ecosystem partners.

Demonstrations will highlight:

Open scale-up AI platforms built on Scorpio Fabric Switches, including MGX-based reference designs for rapid AI platform deployment.Rack-scale validation for scale-up fabrics, including rigorous PCIe 6 testing with active electrical cables, CPUs and GPUs, plus rack-scale observability and diagnostics with COSMOS Explorer.Copper and optical connectivity for next-generation AI infrastructure, including active electrical cables, linear optical connectivity and 200G/lane technology with high-fidelity SerDes diagnostics.Silicon, validation platforms, and partner systems spotlighting how Astera Labs accelerates the customer journey from bring-up to deployment—spanning interop, performance testing, and production-ready platforms During a featured fireside chat on Wednesday, June 3, Thad Omura, SVP and GM, Compute Connectivity Group, Astera Labs, will share insights into Astera Labs’ custom connectivity solutions.

Technical talks will include:

The Evolving Boundary of Copper and OpticalNext-Gen Retimers for AI SystemsInference Tokenomics: Making Every Token Count with KV Cache OptimizationThe New Engine Driving Frontier AI ForwardStreamline, Automate, & Accelerate Your Hardware Workflows with COSMOS ToolsScaling 200G/Lane Ethernet: Advantages of Standard Footprint Designs WHEN: Computex 2026: June 2-5, 2026 (all times listed are in Taipei time)

Press conference, demo tour, and audience Q&A: Wednesday, June 3, 10:00 a.m.-11:00 a.m.Fireside Chat with Ecosystem Partner: Wednesday, June 3, 11:00 a.m.-11:30 a.m.Happy hour reception: Wednesday, June 3, 3:00 p.m.-5:00 p.m. WHERE: Taipei Nangang Exhibition Center, Hall 1 (TaiNEX 1), Room 303, Third Floor

WHO: Press and industry analysts covering AI infrastructure, hyperscale systems, and connectivity innovation.

WHY: The event is designed to give media and industry analysts direct access to Astera Labs leaders, latest announcements, live technical demonstrations, and ecosystem conversations around accelerating AI infrastructure deployment.

About Astera Labs
Astera Labs (Nasdaq: ALAB) provides rack-scale AI infrastructure through purpose-built connectivity solutions. By collaborating with hyperscalers and ecosystem partners, Astera Labs enables organizations to unlock the full potential of modern AI. Astera Labs’ Intelligent Connectivity Platform integrates CXL®, Ethernet, NVLink Fusion, PCIe®, and UALink™ semiconductor-based technologies with the company’s COSMOS software suite to unify diverse components into cohesive, flexible systems that deliver end-to-end scale-up and scale-out connectivity. The company’s custom connectivity solutions business complements its standards-based portfolio, enabling customers to deploy tailored architectures to meet their unique infrastructure requirements. Discover more at www.asteralabs.com.

Forward-Looking Statements
This communication contains certain forward-looking statements regarding Astera Lab’s expectations with respect to the parties that it will host, the subject of its fireside chat and technical talks, and the matters that will be demonstrated at the Computex 2026 program, including Astera Lab’s complete connectivity portfolio (e.g., the Scorpio X-Series 320 Lane Smart Fabric Switch, optical connectivity innovation, SerDes diagnostics and COSMOS-enabled validation), features and capabilities; its rack-scale AI connectivity strategy; as well as the systems produced as part of and impact of its collaborations. Such forward-looking statements are introduced using words such as “designed,” “strategy,” “will” and variations of such words and similar expressions. Such statements involve risks and uncertainties, many of which are beyond the control of Astera Labs, that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including, among others, the risk that the expected components of the program may not occur; the anticipated market opportunities may not materialize; we may be unable to achieve, incorporate or validate the expected product features or capabilities; delays, disruptions, challenges or increased costs in the ability to incorporate product features or achieve the expected product roadmap within the expected timelines; the complexities and uncertainties in developing and implementing solutions based on new features and technologies; litigation or disputes related to our products; macroeconomic conditions, including general semiconductor industry economic conditions; regulatory restrictions; international conflict and other risks and uncertainties described in Astera Lab’s Form 10-K, Form 10-Q and other filings with the SEC.

Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and no person assumes any obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent that disclosure may be required by law.

Contact:
Peter Lo
[email protected]

5 Stocks Positioned to Benefit From the AI Inference BoomAstera Labs NASDAQ: ALAB is seeing robust demand across its connectivity portfolio and expects multiple product lines to contribute to growth through the back half of the year and into 2027, Nick Aberle, vice president of finance and investor relations, said at the 54th Annual TD Cowen TMT Conference.

Aberle said the company had reported “good results” about a month earlier and guided for an acceleration in growth in the second quarter, with optimism for continued growth inflection later in the year. He said demand remains strong from a secular standpoint as Astera seeks to build out what he described as a “connectivity backbone” for AI infrastructure.

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Nuts and Bolts AI Play Gains Momentum: Astera Labs Targets RaisedHe said the company has expanded beyond its core I/O connectivity products, Aries and Taurus, into more complex offerings including the Leo CXL Memory Controller and the Scorpio Smart Fabric Switch portfolio, which targets both scale-out and scale-up opportunities.

Scorpio X-Series Expected to Be a Key Growth Catalyst Aberle said Scorpio X-Series is expected to be “a great catalyst” for revenue for the remainder of the year and into 2027 as the company broadens across additional customers. He said all of Astera’s product lines are growing sequentially into the second quarter, and the company expects every product line to keep growing into the third quarter, fourth quarter and next year.

5 AI Infrastructure Stocks Smart Money Is Buying Before the Next SurgeAccording to Aberle, Scorpio X-Series addresses a market opportunity of more than $10 billion, which he said represents nearly half of the company’s total addressable market. He said the product carries “extremely rich” content and average selling prices, allowing it to move the needle more than some other parts of the portfolio.

Aberle said Scorpio X-Series has been in development for a long period of time, with pre-production volumes shipping in the second half of 2025 and early volume production beginning in the first quarter. He said the portfolio now includes both smaller-radix and larger-radix solutions, which are shipping in the second quarter.

While acknowledging that volume deployment in complex AI systems remains challenging, Aberle said the company is confident in its current position and expects Scorpio X-Series to be a “nice driver” in the back half.

Taurus and Aries Remain Important Pieces of the Portfolio On Taurus, Astera’s active electrical cable product for Ethernet connectivity, Aberle said the company views optical connectivity as incremental and additive to copper, rather than a direct replacement. He said copper continues to have a long life cycle due to its power, reliability and cost characteristics, and should remain preferred wherever the needed reach can be achieved.

Aberle said the Ethernet-based AEC market is still in early stages as the industry transitions toward 800G and eventually 1.6T. He said Astera sees an opportunity for AEC to take share from passive copper, while also expanding Taurus to additional customers.

Aries, Astera’s PCI Express retimer portfolio, also remains a significant contributor. Aberle said Aries grew roughly 70% year over year in 2025, even as it fell as a percentage of total revenue because other products grew faster. He said Aries once represented more than 90% of revenue and is now roughly in the range discussed by the TD Cowen moderator, around two-thirds of revenue.

Aberle said Astera is in the early stages of transitioning to PCI Express Gen 6 and that Gen 6 represented a little more than one-third of total revenue in the first quarter. He said he was not aware of anyone else shipping PCI Express Gen 6 products in volume today. On a like-for-like basis, he said Astera expects about a 20% ASP increase generation over generation, along with higher attach rates as faster speeds require retimers in more locations.

Optical Roadmap and NVLink Fusion Aberle said Astera has been building its optical capabilities for at least a couple of years, including assembling a team, developing resources and mapping out how to address the opportunity. He said the work is being done closely with customers and aligned with their roadmaps.

The company has discussed optical-based revenue in 2027, including from a standalone fiber coupler and from near-packaged optics applications, Aberle said. He described the XScale acquisition as meaningful because coupler technology is important to the scalability of an optical engine and was outside Astera’s typical internal capabilities.

Aberle said Astera is developing an electrical IC, photonic IC and related packaging, test and manufacturing flow internally. The company’s goal is to create an optical engine that can be built around Scorpio X to create a co-packaged optics solution for customers, while also being usable on the other side of the link around a customer’s AI accelerator.

He also discussed Astera’s role in NVIDIA’s NVLink Fusion concept, saying the company provides a bridge or translation layer between a customer accelerator and NVIDIA’s backend scale-up topology. Aberle said the work requires deep collaboration and is a custom solution rather than a multi-sourced product. He said the company has discussed one collaboration publicly, with others “percolating.”

Supply Chain and CXL Activity On supply chain, Aberle said Astera has been building its backend operations with scale and volume in mind for a long time. He said the company has a good understanding of its allocation profile on both the front end and back end through 2027 and feels comfortable with its supply position, including room for upside.

However, he noted that other components in AI racks could still create bottlenecks outside Astera’s control and potentially delay program rollouts. Aberle said Astera typically builds buffer into expectations around timing and ramps to stay conservative.

Aberle also said interest in the Leo CXL Memory Controller has increased, particularly for AI inferencing applications, as memory prices rise and supply tightens. He said hyperscalers are evaluating ways to optimize memory performance and cost. Astera has discussed a new design win with a hyperscaler customer for a customized version of Leo to be used for CXL connectivity within an AI inferencing appliance, which Aberle called a potential first step toward meaningful revenue momentum in CXL.

Customer Conversations Focus on Longer-Term Connectivity Challenges Asked how customer conversations differ from investor discussions, Aberle said customers are focused on a three- to five-year horizon, including future accelerator capabilities, rack architectures and scale-up requirements. He said those plans create significant challenges for the connectivity backbone of AI infrastructure.

Aberle said Astera’s discussions with customers are not only about revenue opportunities in 2026 or 2027, but about solving next-generation connectivity challenges in 2028, 2029 and 2030 across both optical and copper technologies.

About Astera Labs NASDAQ: ALABAstera Labs is a fabless semiconductor company that develops connectivity solutions for data center and cloud infrastructure. The firm focuses on addressing signal integrity and link management challenges that arise as server architectures incorporate higher-bandwidth processors and accelerators. Its technology is aimed at improving reliability and performance for high-speed interconnects used in servers, storage systems and compute accelerators.

The company's product portfolio centers on silicon devices and accompanying firmware and software that enhance and manage high-speed links.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Astera Labs, Inc. (ALAB) Presents at 2026 Evercore Global TMT Conference Transcript

Astera Labs stock benefits from AI infrastructure demand, portfolio expansion, and a strong Q2 outlook amid rich valuation and rising competition.

Anthropic filed confidentially for a U.S. initial public offering (IPO) on June 1, 2026, days after closing a $65 billion Series H financing round that valued the company at nearly $1 trillion. The maker of Claude is officially coming to public markets, and Wall Street's initial beneficiary list starts with Amazon and Alphabet, both of which hold substantial equity stakes.

But the more interesting question isn't who holds Anthropic equity. It's who holds Anthropic's infrastructure contracts. Claude isn't a software business, it's a compute business. And the companies building the machines Claude runs on could be the quieter beneficiaries of this IPO moment.

Image source: Getty Images.

Why the IPO changes the calculus When Anthropic goes public near a $1 trillion valuation, it will need to show investors a credible path to supporting that number. That means building more capacity, faster. Anthropic has already committed to spending more than $100 billion with Amazon Web Services over the next decade, securing up to 5 gigawatts of compute capacity. Separate agreements with Google lock in another 5 gigawatts. That is 10 gigawatts of contracted artificial intelligence (AI) compute demand from a single company -- before the IPO even happens.

Here are five companies that are positioned to benefit from the infrastructure build-out that follows.

1. Celestica Celestica (CLS 2.15%) is the company that integrates GPUs, custom silicon, and networking gear into finished, tested racks that hyperscalers actually deploy. As of April 2026, the company has made its DS6000-series 1.6 terabit Ethernet switches -- hardware designed to handle the cluster density that Anthropic's training runs demand -- available to order. In March 2026, Celestica also announced a strategic collaboration with AMD to bring the open-standards Helios rack-scale AI platform to market. When Anthropic builds out capacity, someone has to assemble and deliver the racks. Celestica does that for some of the largest hyperscalers.

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2. Credo Technology Group Credo Technology (CRDO +1.59%) supplies the Active Electrical Cables connecting GPUs inside AI clusters. Anthropic's $100 billion AWS compute commitment will translate into physical servers that need Credo's cables. The company's three confirmed hyperscaler customers all have direct Anthropic relationships. The connection is indirect, but structurally real.

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3. Astera Labs Astera Labs (ALAB 3.08%) designs the semiconductor connectivity silicon that lives inside the AI rack -- PCIe retimers, CXL memory controllers, and Ethernet fabric switches. In May 2026, the company launched the Scorpio X-Series 320 Lane AI Fabric Switch, the largest open memory-semantic fabric switch available, now shipping to leading cloud customers. Astera's technology manages signal integrity between chips inside a cluster, making it a critical layer in the infrastructure Anthropic needs at scale.

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4. Coherent Coherent (COHR +0.15%) provides the optical transceivers that connect servers across a data center. Nvidia invested $2 billion in Coherent in March 2026 and signed a multibillion-dollar purchase commitment for optical networking and laser products. As Anthropic's clusters grow, optical demand grows with them. Coherent's data center and communications segment posted $1.36 billion in revenue for the third quarter of fiscal 2026.

5. Marvell Technology Anthropic's compute expansion depends heavily on Amazon's Trainium custom AI accelerators. Marvell Technology (MRVL 4.77%) is one of the primary architects of custom silicon for hyperscalers, with 18 confirmed XPU sockets in its pipeline. When Amazon scales Trainium to honor its Anthropic commitments, Marvell's design wins convert to revenue.

At Computex on June 2, Nvidia CEO Jensen Huang said that Marvell Technology is a potential trillion-dollar company. Investors responded enthusiastically, sending Marvell shares soaring 33% in a single trading session, the largest one-day gain in the company's history. The rally added approximately $56 billion to Marvell's market capitalization, lifting its total value above $250 billion.

The risk across this theme is real. Anthropic's IPO could be delayed or scaled back, slowing the pace of infrastructure commitments. And with capital spending on AI at record highs, there's a genuine question about how much of this build-out is already priced into each of these stocks. None of these are hidden gems in the traditional sense, but they are structurally tied to a demand driver that just became very public.

Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Celestica, Coherent, Marvell Technology, and Nvidia. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.

The index added two companies on Friday, but more are likely to be added in the near future.

Astera Labs stock price has gone parabolic in the past few months, mirroring the performance of the semiconductor industry. ALAB jumped to $346 on Monday, up by 253% from its lowest point this year, with its valuation jumping from $16.6 billion in April to $60 billion today. Still, the company faces some major risks, with analysts predicting a pullback. 

Astera Labs is a top player in the technology industry, where it builds the connective tissue inside data centers. Instead of making GPUs, the company makes chips and software that enable GPUs, CPUs, memory, and networking gear to communicate with each other well.

The company solves a major problem that has existed in the data center industry for a while. Modern AI platforms use thousands of chips that work together, and moving data between them is a key bottleneck. 

Astera Labs stock price has, therefore, surged this year because of the ongoing data center boom in the United States and other countries. Top companies like Meta Platforms, Microsoft, Google, and Amazon are spending over $750 billion in their data centers this year. 

The most recent numbers showed that Astera Labs’ business was firing on all cylinders. Its revenue jumped by 14% sequentiually and 93% on a YoY basis, making it one of the fastest-growing companies in the industry. It made over $304 million in revenue, beating what analysts were expecting by far. 

This growth happened as the company announced the Scorpio X-Series 320-lane Smart Fabric Switch. It also expanded its Scorpio P-Series PCIe-6 Fabric family that now spans from 32 to 320 lane configurations. 

Astera Labs made a net income of $110 million, representing an operating margin of 36.2%. Analysts believe that this growth momentum will continue as the data center boom gains steam. 

The average estimate is that the company’s revenue jumped by 87% to $360 million. It will then grow by 78% YoY to over $410 million. As a result, the annual revenue growth is expected to grow by 81% this year followed by 42% next year. This means that it will make $1.55 billion this year, followed by $2.19 billion next year.

Still, the main challenge for Astera Labs stock is that it is highly overvalued. Data shows that it trades with a forward price-to-earnings ratio of 153, much higher than the sector median of 32. The forward PEG ratio stands at 2.31, also higher than the sector median of 1.36. 

Astera Labs stock chart | Source: TradingView

The daily chart shows that the ALAB share price has surged from a low of $98.17 in March to a high of $372 this year. It recently surged above the crucial resistance level at $262, its highest point in September last year. 

The Relative Strength Index has moved from the overbought level of 83 to the current 65. In some instances, it is common for a highly overbought stock to retreat amid profit-taking.

Astera Labs stock has also moved further away from its historical moving averages. For example, its current price of $346 is much higher than the 100-day Exponential Moving Average (EMA) of $203. This means that it may retreat because of a concept known as mean reversion. 

If this happens, the next key level to watch will be at $262, its highest point in September. This target is slightly above the average estimate among analysts, which stands at $233.

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.

Image Source: Zacks Investment Research

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.

Image Source: Zacks Investment Research

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.

Image Source: Zacks Investment Research

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.

Image Source: Zacks Investment Research

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)

Getty Images

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)

TNS

“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)

Getty Images

“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)

Getty Images

“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)

Getty Images

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)

Getty Images

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.

10.94K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of FIP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

On April 21, 2026, FTAI Aviation Ltd FTAI shares fell 8.1%, bringing the current price to $236.74. This decline is part of a broader trend, with shares down 12.2% over the past week, despite a strong year-to-date performance of 20.5%. Over the past year, FTAI has seen remarkable growth, with an increase of 173.3%, although it has fluctuated significantly, hitting a 52-week high of $323.51 and a low of $85.23.

GF Value™ verdict: Current price of $236.74 is 42.1% above the estimated fair value of $166.61.GF Score™ of 83/100 indicates a strong overall performance relative to peers.Notable signal: Insiders sold $3.0M in shares over the last three months, with no buying activity reported. Is FTAI Overvalued or Undervalued? FTAI Aviation Ltd's current price of $236.74 is substantially higher than the GF Value™ estimate of $166.61, indicating that the stock is 42.1% overvalued. This discrepancy suggests a significant margin of safety for potential investors, highlighting a risk for current shareholders as the market may correct this valuation disparity. The GF Valuation label classifies the stock as "Significantly Overvalued," which raises concerns about future price adjustments that could lead to a decline in the stock value.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. As such, the current overvaluation signals a potential risk for investors, as the market may eventually align the stock price closer to its intrinsic value, leading to a possible downward correction in the future.

How Does FTAI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 51.2x 41.9x Forward P/E 33.4x - The current P/E (TTM) of 51.2x is significantly above its 5-year median P/E of 41.9x, indicating that FTAI is trading at a higher valuation compared to its historical averages. This analysis aligns with the GF Value™ verdict that suggests the stock is overvalued, reinforcing concerns about the sustainability of current price levels.

What Does FTAI's GF Score™ Tell Us? Metric Rating GF Score™ 83 Financial Strength 4/10 Profitability 7/10 Growth 10/10 Valuation 3/10 Momentum 6/10 The GF Score™ of 83/100 indicates that FTAI Aviation Ltd is performing strongly overall, particularly in the Growth category, where it scored a perfect 10/10. However, its Financial Strength rating of 4/10 and Valuation rating of 3/10 highlight significant weaknesses that could pose risks for long-term stability and growth. The solid profitability rank of 7/10 suggests that while the company is performing well financially, its valuation metrics raise concerns about future returns.

What Are Insiders Doing with FTAI Stock? Recently, insider activity at FTAI has shown a trend of selling, with insiders offloading approximately $3.0 million in shares over the past three months and no reported buying. This pattern of selling may suggest a lack of confidence in the stock's current valuation or future performance potential. Such insider selling can serve as a cautionary signal for external investors, indicating that those with intimate knowledge of the company may not view the stock's current price as favorable.

What This Means for Investors Based on the GF Value™ assessment, FTAI Aviation Ltd is currently overvalued. Given the significant gap between the market price and the estimated intrinsic value, potential investors may need to exercise caution and consider the risks associated with the current valuation before making investment decisions.

For the complete analysis, visit the FTAI Aviation Ltd FTAI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is FTAI's GF Score™?

FTAI's GF Score™ is 83/100, indicating a strong overall performance relative to its peers, suggesting potential for long-term returns.

Is FTAI overvalued or undervalued?

FTAI is currently overvalued, with a GF Value™ estimate indicating a fair value of $166.61 compared to its market price of $236.74.

What is FTAI's P/E ratio?

FTAI's P/E (TTM) is 51.2x, which is above its 5-year median P/E of 41.9x, confirming the stock's overvaluation based on historical metrics.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Investors might want to bet on FTAI Aviation (FTAI - Free Report) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is 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.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for FTAI Aviation is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating 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.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for FTAI Aviation imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. 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 FTAI AviationFor the fiscal year ending December 2026, this transportation infrastructure company is expected to earn $7.21 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for FTAI Aviation. Over the past three months, the Zacks Consensus Estimate for the company has increased 6.8%.

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 FTAI Aviation to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. FTAI Aviation (FTAI - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

FTAI Aviation is one of 67 individual stocks in the Aerospace sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. FTAI Aviation is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for FTAI's full-year earnings has moved 6.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, FTAI has gained about 9.7% so far this year. Meanwhile, stocks in the Aerospace group have lost about 2.9% on average. As we can see, FTAI Aviation is performing better than its sector in the calendar year.

Another stock in the Aerospace sector, Textron (TXT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 1.1%.

Over the past three months, Textron's consensus EPS estimate for the current year has increased 0.7%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, FTAI Aviation belongs to the Aerospace - Defense Equipment industry, a group that includes 37 individual stocks and currently sits at #157 in the Zacks Industry Rank. Stocks in this group have gained about 0.8% so far this year, so FTAI is performing better this group in terms of year-to-date returns.

Textron, however, belongs to the Aerospace - Defense industry. Currently, this 29-stock industry is ranked #83. The industry has moved -4.3% so far this year.

Going forward, investors interested in Aerospace stocks should continue to pay close attention to FTAI Aviation and Textron as they could maintain their solid performance.

NEW YORK, April 29, 2026 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today reported financial results for the first quarter 2026. The Company’s consolidated comparative financial statements and key performance measures are attached as an exhibit to this press release.

Financial Overview

(in thousands, except per share data)   Selected Financial Results Q1’26 Net Income Attributable to Shareholders $134,190 Basic Earnings per Ordinary Share $1.31 Diluted Earnings per Ordinary Share $1.29 Adjusted EBITDA (1) $325,577     (1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.    First Quarter 2026 Dividends

On April 28, 2026, the Company’s Board of Directors (the “Board”) declared a cash dividend on its ordinary shares of $0.45 per share for the quarter ended March 31, 2026, payable on May 26, 2026 to the holders of record on May 13, 2026.

Additionally, on April 28, 2026, the Board declared cash dividends on its Fixed-Rate Reset Series C Cumulative Perpetual Redeemable Preferred Shares (“Series C Preferred Shares”) and Fixed-Rate Reset Series D Cumulative Perpetual Redeemable Preferred Shares (“Series D Preferred Shares”) of $0.51563 and $0.59375 per share, respectively, for the quarter ended March 31, 2026, payable on June 15, 2026 to the holders of record on June 1, 2026.

Business Highlights

Generated Aerospace Products Revenue of $743.8 million and Adjusted EBITDA of $222.6 million in Q1 2026, an increase of 104% and 70%, respectively, compared to Q1 2025.(1)Amended and extended existing revolving credit facility with the support of a 15 lender syndicate, increasing total commitments from $400 million to $2.025 billion and extending maturity to April 2031.Upsized SCI I warehouse financing facility from $2.5 billion to $3.5 billion to support the remaining deployment of the vehicle.Announced a strategic packaging and distribution joint venture with Jereh Group, a global leader in gas turbine mobile packaging, to support the planned 2027 production target of 100 Mod-1 CFM56 aeroderivative units.(2)Increased quarterly dividend for the third consecutive quarter, raising it from $0.40 to $0.45 per share, supported by continued strong free cash flow generation. “FTAI delivered another quarter of strong execution across all three of our platforms, led by continued momentum in our core Aerospace Products offering and an expanding, increasingly diverse customer base,” said Joe Adams, Chairman and CEO. “End market demand remains robust, and our team executed well as we continue to scale the business. With a further strengthened balance sheet and significant capital available to deploy, we are well positioned to pursue attractive opportunities we see in the market to deliver sustained growth and long-term value creation for our shareholders in 2026 and beyond.”

(1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.

(2) This is a forward-looking statement. Please see Cautionary Note Regarding Forward-Looking Statements below.

Additional Information

For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investor Center section of the Company’s website, https://www.ftaiaviation.com/, and the Company’s Annual Report on Form 10-K and Quarterly Report on Form 10-Q, when available on the Company’s website. Nothing on the Company’s website is included or incorporated by reference herein.

Conference Call

In addition, management will host a conference call on Thursday, April 30, 2026 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering via the following link https://register-conf.media-server.com/register/BI473c73de9b164133be498d6715eae345. Once registered, participants will receive a dial-in and unique pin to access the call.

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at https://www.ftaiaviation.com/. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast.

A replay of the conference call will be available after 11:30 A.M. on Thursday, April 30, 2026 through 11:30 A.M. on Thursday, May 7, 2026 on https://ir.ftaiaviation.com/news-events/presentations/.

The information contained on, or accessible through, any websites included in this press release is not incorporated by reference into, and should not be considered a part of, this press release.

About FTAI Aviation Ltd.

FTAI combines advanced turbine technology and asset ownership to power the world’s most essential markets. Additional information is available at https://www.ftaiaviation.com/.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, whether SCI I will be able to complete deployment of capital, FTAI Power remaining on track to deliver FTAI Mod-1 and meet planned production of 100 units on time or at all, and the ability to create sustained growth and long-term value creation for our shareholders in 2026 and beyond. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond the Company’s control. The Company can give no assurance that its expectations will be attained and such differences may be material. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on the Company’s website (www.ftaiaviation.com). In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or change in events, conditions, or circumstances on which any statement is based. This release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.

For further information, please contact:Alan Andreini
Investor Relations
FTAI Aviation Ltd.
(646) 734-9414
[email protected]

Media:Tim Lynch / Aaron Palash / Kelly Sullivan
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

   Exhibit - Financial Statements

 FTAI AVIATION LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollar amounts in thousands, except share and per share data)
  Three Months Ended March 31,  2026   2025 Revenues   Aerospace products revenue$522,585  $264,425 MRE Contract revenue 221,230   100,638 Lease income 39,892   68,440 Maintenance revenue 30,599   49,607 Asset sales revenue 10,184   18,939 Other revenue (1) 6,207   31 Total revenues 830,697   502,080     Expenses   Cost of sales 524,268   248,714 Operating expenses 64,987   32,438 General and administrative 2,413   3,116 Acquisition and transaction expenses 16,361   7,292 Depreciation and amortization 52,289   59,562 Total expenses 660,318   351,122     Other (expense) income   Interest expense (61,407)  (62,040)Equity in losses of unconsolidated entities (2) (2,363)  (7,614)Gain on sale to the 2025 Partnership 15,168   10,870 Other income 47,582   33,071 Total other expense (1,020)  (25,713)Income before income taxes 169,359   125,245 Provision for income taxes 31,460   22,859 Net income  137,899   102,386 Less: Dividends on preferred shares 3,709   6,115 Less: Loss on redemption of preferred shares —   6,327 Net income attributable to shareholders$134,190  $89,944     Earnings per share:   Basic$1.31  $0.88 Diluted$1.29  $0.87     Weighted average shares outstanding:   Basic 102,575,500   102,552,436 Diluted 104,255,902   103,159,051  (1) Includes servicing fees of $5,861 and $0 for the three months ended March 31, 2026 and 2025, respectively, from the 2025 Partnership.

(2) Includes the profit elimination of $(10,000) and $(6,950) for the three months ended March 31, 2026 and 2025, respectively, for sales to the 2025 Partnership.

 FTAI AVIATION LTD.
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except share and per share data)
  (Unaudited)   March 31, 2026 December 31, 2025Assets   Current Assets   Cash and cash equivalents$412,240 $300,476Accounts receivable, net (1) 176,873  209,907Inventory, net 1,364,256  1,193,773Assets held for sale 75,703  —Other current assets (2) 561,202  408,364Total current assets 2,590,274  2,112,520Leasing equipment, net 1,248,793  1,545,804Property, plant, and equipment, net 122,136  120,068Investments 313,039  314,156Intangible assets, net 12,872  19,929Goodwill 94,221  94,221Other non-current assets 147,576  167,060Total assets$4,528,911 $4,373,758    Liabilities   Current Liabilities    Accounts payable$203,751 $208,224Accrued liabilities 136,503  90,009Current maintenance deposits 21,546  25,439Current security deposits 12,354  14,001Liabilities held for sale 23,420  —Other current liabilities 96,774  62,202Total current liabilities 494,348  399,875Long-term debt, net 3,451,087  3,448,891Non-current maintenance deposits 21,764  46,237Non-current security deposits 9,003  15,211Other non-current liabilities 121,033  129,370Total liabilities$4,097,235 $4,039,584    Commitments and contingencies       Equity   Ordinary shares ($0.01 par value per share; 2,000,000,000 shares authorized; 102,580,660 and 102,573,283 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively)$1,026 $1,026Preferred shares ($0.01 par value per share; 200,000,000 shares authorized; 6,800,000 and 6,800,000 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively) 68  68Additional paid in capital 54,911  50,567Retained earnings 375,671  282,513Shareholders' equity 431,676  334,174Total liabilities and equity$4,528,911 $4,373,758 (1) Includes accounts receivable from the 2025 Partnership of $35,422 and $47,294 as of March 31, 2026 and December 31, 2025, respectively.

(2) Includes receivables from the 2025 Partnership of $18,908 and $20,681 as of March 31, 2026 and December 31, 2025, respectively.

Key Performance Measures

In addition to net income (loss), the Chief Operating Decision Maker (“CODM”), who is the Company’s Chief Executive Officer, utilizes Adjusted EBITDA as a key performance measure. Adjusted EBITDA is not a financial measure in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). This performance measure provides the CODM with the information necessary to assess operational performance and make resource and allocation decisions. We believe Adjusted EBITDA is a useful metric for investors and analysts for similar purposes of assessing our operational performance.

Adjusted EBITDA is defined as net income (loss) attributable to shareholders, adjusted (a) to exclude the impact of provision for (benefit from) income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and preferred shares and capital lease obligations, asset impairment charges, incentive allocations, depreciation and amortization expense, interest expense and dividends on preferred shares, internalization fee to affiliate, (b) to include the impact of our pro-rata share of Adjusted EBITDA from unconsolidated entities and (c) to exclude the impact of equity in earnings (losses) of unconsolidated entities, if any.

Reconciliations of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures are not included in this press release because the most directly comparable GAAP financial measures are not available on a forward-looking basis without unreasonable effort.

The following table sets forth a reconciliation of net income attributable to shareholders to Adjusted EBITDA for the three months ended March 31, 2026 and 2025:

 Three Months Ended
March 31, Change
(in thousands) 2026   2025 Net income attributable to shareholders$134,190  $89,944 $44,246 Add: Provision for income taxes 31,460   22,859  8,601 Add: Equity-based compensation expense 6,347   4,889  1,458 Add: Acquisition and transaction expenses 16,361   7,292  9,069 Add: Losses on the modification or extinguishment of debt and preferred shares and capital lease obligations —   6,327  (6,327)Add: Asset impairment charges —   —  — Add: Incentive allocations —   —  — Add: Depreciation and amortization expense (1) 59,513   68,387  (8,874)Add: Interest expense and dividends on preferred shares 65,116   68,155  (3,039)Add: Internalization fee to affiliate —   —  — Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2) 20,227   41  20,186 Less: Equity in (earnings) losses of unconsolidated entities (3) (7,637)  664  (8,301)Adjusted EBITDA (non-GAAP)$325,577  $268,558 $57,019  (1) Includes the following items for the three months ended March 31, 2026 and 2025: (i) depreciation and amortization expense of $52,289 and $59,562, (ii) lease intangible amortization of $337 and $3,206, and (iii) amortization for lease incentives of $6,887 and $5,619, respectively.

(2) Includes the following items for the three months ended March 31, 2026 and 2025: (i) net income of $7,637 and net loss of $664, (ii) interest expense of $3,496 and $0, (iii) depreciation and amortization expense of $9,067 and $158, (iv) acquisition and transaction expenses of $0 and $547, and (v) tax expense of $27 and $0, respectively.

(3) Excludes the profit elimination of $10,000 and $6,950 for the three months ended March 31, 2026 and 2025, respectively, for sales to the 2025 Partnership.

In addition, the following table sets forth a reconciliation of net income attributable to shareholders to Adjusted EBITDA for Aerospace Products for the three months ended March 31, 2026 and 2025:

 Three Months Ended
March 31, Change
(in thousands) 2026   2025  Net income attributable to shareholders$183,735  $106,643  $77,092 Add: Provision for income taxes 33,697   19,375   14,322 Add: Equity-based compensation expense 27   155   (128)Add: Acquisition and transaction expenses (15)  1,132   (1,147)Add: Losses on the modification or extinguishment of debt and preferred shares and capital lease obligations —   —   — Add: Asset impairment charges —   —   — Add: Incentive allocations —   —   — Add: Depreciation and amortization expense 4,678   3,584   1,094 Add: Interest expense and dividends on preferred shares —   —   — Add: Internalization fee to affiliate —   —   — Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1) 414   169   245 Less: Equity in losses (earnings) of unconsolidated entities 40   (113)  153 Adjusted EBITDA (non-GAAP)$222,576  $130,945  $91,631  (1) Includes the following items for the three months ended March 31, 2026 and 2025: (i) net loss of $40 and net income of $113, (ii) depreciation and amortization expense of $427 and $56, and (iii) tax expense of $27 and $0, respectively.

U.S. dollar banknotes are seen in this illustration taken March 24, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

SummaryCompaniesOf the $1.5 billion purchase price, $785 million is assumed debtDeal supports MARA's pivot to digital infrastructure and powerNEW YORK, April 30 (Reuters) - MARA Holdings (MARA.O), opens new tab told Reuters on Thursday it will buy Long Ridge Energy & Power from ‌FTAI Infrastructure (FIP.O), opens new tab for $1.5 billion including debt, a major step in the bitcoin miner's push to reposition as a digital infrastructure and energy company.

Having been one of the largest companies mining and holding bitcoins in recent years, its shift towards ​digital infrastructure and the energy generation needed to power it comes as AI demand and ​advancements surge.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

While its previous focus on cryptocurrencies is complementary to its revised strategy, MARA ⁠is increasingly looking to own energy assets to ensure it has sufficient power for data center ​development.

IDEAL ASSET FOR NEW STRATEGYThe acquisition of Long Ridge Energy represents a significant step in this evolution.

Long Ridge ​owns a 505-megawatt combined cycle natural gas power plant in Hannibal, Ohio, as well as more than 1,600 contiguous acres of land, upon which MARA plans to build a data center powered by the plant, the company said.

"It has ​all the key components for us, for the ideal data center campus," MARA Chief Executive Fred Thiel ​said in an interview.

He said the plant was highly efficient due to its relatively young age -- construction was completed ‌in 2021 -- ⁠and noted the land was already permitted for industrial use, reducing a major hurdle to data center development.

Thiel said MARA had already attracted interest from a number of potential tenants, including hyperscalers -- firms that provide massive cloud-computing capacity -- to lease space at the planned data center. He said the company expects ​to have a tenant lined ​up around the time ⁠the deal closes.

The acquisition is expected to close later in 2026, depending on regulatory approvals including from the Federal Energy Regulatory Commission (FERC).

ASSETS TO PROVIDE INSTANT ​CASHThe $1.5 billion transaction includes the assumption of around $785 million in existing debt, and ​the Long ⁠Ridge power assets generate annualized adjusted earnings of around $144 million, the company said.

This provides MARA with cash flow ahead of contributions from the data center project.

Thiel said MARA's ownership would not change the amount of power ⁠that Long ​Ridge provides to retail consumers.

Concerns are mounting across the United States ​about the strain data center development could place on the electric grid, with the PJM transmission region -- where the plant is ​located -- considered among the most at risk for disruption.

Reporting by David French in New York Editing by Bernadette Baum

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Shares in FTAI Aviation (FTAI 3.42%) shot higher by more than 15% by 3 p.m. today after the market digested its excellent first quarter 2026 earnings report and guidance. Moreover, there's reason to believe its end-market environment could improve throughout the year.

The company's core business is Maintenance, Repair, and Overhaul (MRO) of legacy aircraft engines, such as CFM International's CFM56. CFM is a GE Aerospace (GE 3.55%) joint venture, and FTAI and CFM have a multiyear agreement in place under which FTAI will MRO CFM56 engines; the benefit to GE Aerospace and its joint venture partner, Safran, is that they are guaranteed a market for their high-margin aftermarket equipment.

Today's Change

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225.76

In addition, FTAI is set to launch FTAI Power in the fourth quarter of 2026, an exciting business that will convert CFM56 engines into power turbines to power data centers.

Why the stock soared today The recent results saw management confirm its full-year guidance, but it's not just about 2026 for the company, with CEO Joseph Adams noting that "Based on these conversations stand today, we expect to be mostly sold out of our 2027 target production in the near term with a meaningful portion of 2028 spoken for."

It's a strong outlook, but it could get even better if engine retirements increase due to slowing growth in flight departures amid the war in the Persian Gulf. It's a subject that came up extensively on GE Aerospace's recent earnings presentations. More engine retirements would make it easier and cheaper for FTAI to acquire parts from retired engines for its core business. In addition, it will also support its FTAI Power business.

Image source: Getty Images.

Given the commentary on a sold-out production, investors know FTAI has strong revenue growth prospects, and a potential cost reduction would also boost its margins.

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Aerospace. The Motley Fool has a disclosure policy.

On May 11, 2026, FTAI Aviation Ltd FTAI shares rose 3.7% to a current price of $280.36. Over the past week, the stock has performed well, increasing by 16.8%, and it has shown a remarkable rise of 163.9% over the last year. The stock has a 52-week range of $105.59 to $323.51.

GF Value™ verdict: FTAI is currently priced at $280.36, which is 42.7% above the GF Value™ estimate of $196.42.GF Score™: 87/100, indicating a strong overall performance based on key financial metrics.Most notable signal: Insiders sold $64.6M in stock over the last 3 months with no buying activity. Is FTAI Overvalued or Undervalued? Based on the GF Value™ analysis, FTAI is significantly overvalued at its current price of $280.36, which is 42.7% higher than the GF Value™ estimate of $196.42. This suggests that there may be limited margin of safety for potential investors, as the current price is well above intrinsic value. The GF Valuation label indicates that the stock is significantly overvalued, which raises a cautionary flag for those considering entering a position at this price level. The high valuation may expose investors to potential downside risk if the market corrects or if the company fails to meet future growth expectations.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

How Does FTAI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 55.6x 42.4x Forward P/E 42.6x - Currently, FTAI's P/E ratio stands at 55.6x, which is significantly above its 5-year median P/E of 42.4x, reflecting that the stock is trading at a higher valuation compared to its historical averages. The forward P/E ratio of 42.6x suggests that while future earnings may be more reasonably priced, the current P/E analysis aligns with the GF Value™ verdict indicating that the stock remains overvalued.

What Does FTAI's GF Score™ Tell Us? Metric Rating GF Score™ 87/100 Financial Strength 5/10 Profitability 7/10 Growth 10/10 Valuation 5/10 Momentum 6/10 The GF Score™ of 87/100 reflects a strong position for FTAI, particularly in terms of growth, where it achieved a perfect score of 10/10. However, the financial strength rating of 5/10 indicates a need for improvement in this area, suggesting potential vulnerabilities. Overall, the strong growth potential juxtaposed with moderate financial strength presents a mixed view of the company's stability moving forward.

What Are Insiders Doing with FTAI Stock? Recent insider activity at FTAI has shown a significant trend towards selling, with insiders offloading a total of $64.6 million in shares over the past three months, and no recorded buying activity. This heavy selling by insiders may suggest a lack of confidence in the current valuation or future performance of the company, which could be a red flag for potential investors. Insider sentiment can be a critical indicator of a company’s outlook, and the lack of buying activity raises questions about the optimism regarding the stock's future.

What This Means for Investors Based on the GF Value™ assessment, FTAI Aviation Ltd FTAI is currently overvalued. The current trading price is significantly higher than the intrinsic value estimated by GF Value™, indicating potential risks for investors considering the stock at this valuation level.

For the complete analysis, visit the FTAI Aviation Ltd FTAI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is FTAI's GF Score™?

FTAI's GF Score™ is 87/100, indicating a strong overall performance based on key financial metrics.

Is FTAI overvalued or undervalued?

FTAI is currently overvalued, with a price that is 42.7% above its GF Value™ estimate.

What is FTAI's P/E ratio?

FTAI's P/E ratio is 55.6x, which is significantly higher than its 5-year median P/E of 42.4x, indicating that the stock is trading at an elevated valuation compared to its historical averages.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].