Astronics (ATRO) reported strong Q2 2026 results with Military Aircraft sales rising 11.7% to $30.6 million and a $27.4 million booking for the MV-75 FLRAA engineering phase. The company's Aerospace segment achieved a record $657.2 million backlog, while Test Systems posted a 2.78:1 book-to-bill ratio. ATRO trades at a discount to industry peers with a forward P/S of 2.71X versus 7.11X average, and shares have risen 30% in six months.
ATRO
Astronics CorpAbout ATRO
Astronics Corporation is a provider of technologies to the aerospace, defense, and electronics industries, offering high-performance electrical power generation and distribution systems, motion systems, lighting and safety systems, avionics products, systems certification, aircraft structures, and automated test systems. The company operates through two reportable segments, Aerospace and Test Systems. The Aerospace segment designs and manufactures products for the aerospace and defense industry and generates the majority of revenue, while the Test Systems segment designs, develops, manufactures, and maintains automated test systems for the aerospace and defense, communications, and mass transit industries. The company derives the majority of its revenue from the United States.
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Leonardo DRS reported Q3 2026 earnings of $0.46 per share, beating consensus estimates of $0.36 by 27.78%, with revenues of $1.07 billion exceeding expectations by 3.25%. The company has consistently surpassed earnings and revenue estimates over the last four quarters.
Despite the strong performance, DRS shares have underperformed the S&P 500 year-to-date, gaining 4.1% versus the market's 13.1%. The stock holds a Zacks Rank #2 (Buy) rating with favorable estimate revision trends.
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