Astronics (NASDAQ:ATRO) Posts Earnings Results, Beats Estimates By $0.12 EPS

Astronics (NASDAQ:ATRO) released its earnings results on Tuesday. The aerospace company reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.63 by $0.12, Zacks reports. Astronics had a negative net margin of 0.37% and a positive return on equity of 29.65%. The company had revenue of $240.07 million during the quarter, compared to analyst estimates of $237.11 million. During the same period in the prior year, the firm posted $0.46 EPS. The firm’s quarterly revenue was up 15.1% compared to the same quarter last year.

Here are the key takeaways from Astronics’ conference call:

• Record Q4 and year-end performance — revenue of $240 million (+15% YoY), operating income of 14.8%, adjusted EBITDA of 19%, $27.6M cash from operations, and year-end bookings/backlog records.
• Margin expansion was driven by higher volume, favorable mix (including a spares surge), repricing, productivity initiatives and lower litigation reserves, resulting in an adjusted aerospace operating margin of 19.8%.
• Preliminary 2026 outlook calls for $950–$990 million revenue (midpoint ~$970M, ~12.5% growth), Q1 revenue of $220–$230M, and expected quarterly sales above $250M in H2 while targeting sustainable high‑teens operating margins.
• Balance sheet leverage increased — net debt rose to $324.8 million after refinancing and convertible bond repurchases, although available liquidity remains $231M.
• Execution risks remain, notably the timing of the Army Radio Test Program (key to test‑systems profitability), uncertain tariff outcomes (about $8M of past tariffs not assumed recoverable), and sizable near‑term investments including a multi‑year ERP spend of ~$14M–$18M that will hit operating cash flow.

Astronics Stock Performance

ATRO stock opened at $79.39 on Wednesday. Astronics has a 1-year low of $19.51 and a 1-year high of $81.89. The business has a 50-day moving average price of $68.84 and a 200 day moving average price of $53.50. The company has a market capitalization of $2.83 billion, a P/E ratio of -882.01 and a beta of 1.10. The company has a debt-to-equity ratio of 3.07, a current ratio of 2.87 and a quick ratio of 1.56.

Analysts Set New Price Targets

ATRO has been the topic of several recent analyst reports. Wall Street Zen downgraded shares of Astronics from a “strong-buy” rating to a “buy” rating in a research report on Saturday, February 7th. Craig Hallum reaffirmed a “buy” rating on shares of Astronics in a report on Friday, January 9th. Zacks Research upgraded Astronics from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 3rd. CJS Securities upgraded shares of Astronics to a “strong-buy” rating in a research report on Thursday, December 11th. Finally, Truist Financial set a $75.00 price target on Astronics in a research note on Friday, January 9th. Two analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Astronics presently has an average rating of “Buy” and an average target price of $66.67.

Key Headlines Impacting Astronics

Here are the key news stories impacting Astronics this week:

• Positive Sentiment: Q4 results beat expectations — Astronics reported $0.75 EPS vs. a $0.60 consensus and highlighted operating strength that exceeded estimates, which is the primary driver of the stock’s upward move. Astronics (NASDAQ:ATRO) Exceeds Q4 CY2025 Expectations
• Positive Sentiment: Aerospace segment momentum — Zacks notes the aerospace division drives ~89% of revenue, backlog rose to about $572.5M, and improving defense/travel demand is lifting margins and revenue visibility, supporting upside for future quarters. Here’s How Aerospace Segment Powers Astronics’ Growth Story
• Neutral Sentiment: Earnings call color — The full Q4 2025 earnings call transcript provides management detail on demand trends, backlog conversion and margin drivers; investors should read for guidance nuances and CAPEX/working capital commentary. Astronics Corporation (ATRO) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst/pre-earnings coverage and momentum positioning — Several previews and screens (Zacks, MSN, AmericanBankingNews) positioned ATRO as a trending stock ahead of results, which likely amplified intraday flow when results beat. Astronics Q4 Earnings Loom: Should You Buy the Stock Ahead of Results?
• Negative Sentiment: Balance-sheet and profitability caveats — Despite the beat, Astronics still shows a slight negative net margin and relatively high debt-to-equity (~3.07), which elevates leverage risk if aerospace demand softens; monitor cash flow and leverage trends. Listen to Conference Call / MarketBeat Earnings Summary

Institutional Investors Weigh In On Astronics

Hedge funds have recently modified their holdings of the business. State Street Corp boosted its stake in shares of Astronics by 26.2% during the fourth quarter. State Street Corp now owns 1,832,179 shares of the aerospace company’s stock valued at $99,377,000 after purchasing an additional 379,811 shares in the last quarter. Millennium Management LLC lifted its holdings in Astronics by 80.1% during the first quarter. Millennium Management LLC now owns 746,956 shares of the aerospace company’s stock worth $18,054,000 after buying an additional 332,133 shares during the period. Lazard Asset Management LLC boosted its position in Astronics by 4,791.1% during the 3rd quarter. Lazard Asset Management LLC now owns 236,140 shares of the aerospace company’s stock valued at $10,770,000 after acquiring an additional 231,312 shares in the last quarter. BNP Paribas Financial Markets increased its holdings in shares of Astronics by 186.0% in the 2nd quarter. BNP Paribas Financial Markets now owns 352,075 shares of the aerospace company’s stock valued at $11,787,000 after acquiring an additional 228,958 shares during the period. Finally, First Trust Advisors LP raised its position in shares of Astronics by 1,326.4% in the 4th quarter. First Trust Advisors LP now owns 243,478 shares of the aerospace company’s stock worth $13,206,000 after acquiring an additional 226,408 shares in the last quarter. Hedge funds and other institutional investors own 56.68% of the company’s stock.

About Astronics

Astronics Corporation (NASDAQ: ATRO) is a global leader in the design and manufacture of advanced technologies primarily for the aerospace, defense and semiconductor industries. Headquartered in East Aurora, New York, the company was founded in 1968 and has grown through a combination of internal development and strategic acquisitions. Astronics operates multiple business units focused on power conversion, distribution and control; cabin electronics and connectivity; aircraft lighting and safety solutions; and automated test systems.

The company’s aerospace products include onboard power generation and management systems, in-flight entertainment and connectivity hardware, LED and fluorescent lighting for aircraft cabins and cockpits, and safety equipment such as escape slide power units.