Financial Analysis

ACQUISITIONS Envoy Aerospace, LLC On June 30, 2025, the Company purchased the membership interests of Envoy Aerospace, LLC (Envoy Aerospace), located in Aurora, Illinois. Envoy Aerospace is an FAA Organization Designation Authorization (ODA) services provider. Envoy Aerospace is included in our Aerospace segment. The total purchase price was approximately $8.3 million, net of cash acquired and the estimated closing adjustment. Of the purchase price, $4.5 million was paid at the closing date. Payments of $2.0 million and $1.8 million will become payable by the Company following the first and second anniversary of the closing date, respectively, based on the achievement of certain milestones. The Company has finalized the purchase price allocation. Purchased intangible assets and goodwill are expected to be deductible for tax purposes over 15 years. This transaction was not considered material to the Companys financial position or results of operations. Buhler Motor Aviation On October 13, 2025, the Company acquired all of the issued and outstanding capital stock of Buhler Motor Aviation (BMA), located in Uhldingen-Muhlhofen, Germany. BMA is an established manufacturer of aircraft seat actuation systems with a broad product portfolio that includes actuators, electronics, control panels, pneumatic systems, and lighting. BMA will be included in our Aerospace segment. The total purchase price was approximately $18.0 million, net of cash acquired and the estimated closing adjustmen …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

LEGAL PROCEEDINGS AND OTHER MATTERS Legal Proceedings Lufthansa On December 29, 2010, Lufthansa Technik AG (Lufthansa) filed a Statement of Claim in the Regional State Court of Mannheim, Germany. Lufthansas claim asserted that a subsidiary of the Company, AES, sold, marketed, and brought into use in Germany a power supply system that infringes upon a German patent held by Lufthansa. In February 2015, the Regional State Court of Mannheim, Germany held that the patent was infringed. The Company appealed to the Higher Regional Court of Karlsruhe. In November 2016, the Higher Regional Court of Karlsruhe upheld the lower courts decision. The Company sought permission to appeal to the German Federal Supreme Court. In March 2019, the German Federal Supreme Court dismissed AES's appeal. With this decision, these proceedings are complete. AES modified the outlet units at the end of 2014 and the overwhelming majority of the modified outlet units sold from 2015 on do not infringe the patent of Lufthansa. In July 2017, Lufthansa filed an action in the Regional State Court of Mannheim for payment of damages caused by AESs direct sales of the infringing power supply system into Germany (referred to as direct sales). A first instance decision in this matter was handed down on December 6, 2019. According to this ruling, Lufthansa was awarded damages in the amount of approximately $3.2 million plus interest. In 2020, AES made payment of $4.7 million, inclusive of interest, in satisfaction of …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

PROFIT SHARING/401K PLAN The Company offers eligible domestic full-time employees participation in a safe harbor 401K plan. The plan provides for an annual company contribution. In addition, employees may contribute a portion of their salary to the plan. The plan may be amended or terminated at any time. Total charges to income before income taxes for this plan was approximately $9.6 million, $8.9 million and $5.3 million in 2025, 2024 and 2023, respectively. The Company had funded the contributions in 2023 and the first quarter of 2024 with treasury stock in lieu of cash and funded the remainder of the 2024 contribution and the 2025 contributions with cash.

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LONG-TERM DEBT The Company entered into a $90.0 million term loan facility on January 19, 2023, and paid interest at a rate equal to SOFR (which was required to be at least 2.50%) plus 8.75%. The Company refinanced its credit facilities on July 11, 2024, and repaid in full all outstanding indebtedness under the previous term loan dated January 19, 2023. The Company amended its asset-based revolving credit facility (the ABL Revolving Credit Facility) on July 11, 2024, by entering into the Seventh Amended and Restated Credit Agreement, which set the maximum aggregate amount that the Company can borrow pursuant to the revolving credit line at $200.0 million, with amounts borrowed thereunder carrying an interest rate of SOFR plus between 2.50% to 3.00%. Borrowings were subject to a borrowing base determined primarily by inventory, accounts receivable, machinery and equipment and real estate. The Company also entered into a $55.0 million term loan facility (Term Loan Facility) on July 11, 2024 at an interest rate of SOFR plus between 5.50% to 6.75%. On November 25, 2024, the Company entered into a second amendment to the ABL Revolving Credit Facility which increased the maximum aggregate amount that the Company could borrow pursuant to the ABL Revolving Credit Facility to $220.0 million from $200.0 million. The maturity date of borrowings under the ABL Revolving Credit Facility was July 11, 2027. The Company and the applicable lenders also agreed in a separate first amendment to i …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our revenue disaggregated by Market Segments as of December 31 as follows: (In thousands) 2025 2024 2023 Aerospace Segment Commercial Transport $ 599,301 $ 524,572 $ 432,199 Military Aircraft 116,276 88,019 61,617 General Aviation 69,834 74,344 80,842 Other 11,908 19,749 30,172 Aerospace Total 797,319 706,684 604,830 Test Systems Segment Government & Defense 64,809 88,742 84,376 Test Systems Total 64,809 88,742 84,376 Total $ 862,128 $ 795,426 $ 689,206 The following table presents our revenue disaggregated by Product Lines as of December 31 as follows: (In thousands) 2025 2024 2023 Aerospace Segment Electrical Power & Motion $ 410,382 $ 359,043 $ 268,049 Lighting & Safety 208,897 179,403 157,434 Avionics 123,422 120,183 113,117 Systems Certification 29,069 17,003 26,255 Structures 13,641 11,303 9,803 Other 11,908 19,749 30,172 Aerospace Total 797,319 706,684 604,830 Test Systems 64,809 88,742 84,376 Total $ 862,128 $ 795,426 $ 689,206

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EQUITY COMPENSATION The Company has equity compensation plans that authorize the issuance of restricted stock units or options for shares of Common Stock to directors, officers and key employees. Equity-based compensation is designed to reward long-term contributions to the Company and provide incentives for recipients to join and to remain with the Company. The exercise price of stock options, determined by a committee of the Board of Directors, is equal to the fair market value of the Common Stock on the grant date. Options become exercisable over periods not exceeding ten years and must be exercised within ten years from the grant date. The Companys practice has been to issue new shares upon the exercise of the options. The Company established its 2011 Incentive Stock Option Plan for the purpose of attracting and retaining executive officers and key employees, and to align managements interest with those of the shareholders. At December 31, 2025, the Company had options outstanding for 49,887 shares under the plans. The Company established the 2005 Directors Stock Option Plan for the purpose of attracting and retaining the services of experienced and knowledgeable outside directors, and to align their interest with those of the shareholders. At December 31, 2025, the Company had options outstanding for 23,690 shares under the plans. During 2017, the Company established the Astronics Corporation 2017 Long Term Incentive Plan for the purpose of attracting and retaining direc …

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FAIR VALUE On a Recurring Basis: A financial asset or liabilitys classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. There were no financial assets or liabilities carried at fair value measured on a recurring basis at December 31, 2025 or 2024. On a Non-recurring Basis: Long-lived assets are evaluated for recoverability whenever adverse effects or changes in circumstances indicate that the carrying value may not be recoverable. The recoverability test consists of comparing the undiscounted projected cash flows of the asset or asset group (which are Level 3 inputs) with the asset of asset groups carrying amount. Should the carrying amount exceed undiscounted projected cash flows, an impairment loss would be recognized to the extent the carrying amount exceeds fair value. There were no impairment charges related to long-lived assets in 2025, 2024 or 2023 and no long-lived assets are required to be measured at fair value for purposes of the long-lived asset recoverability test. Due to their short-term nature, the carrying value of cash and equivalents, restricted cash, accounts receivable and accounts payable approximate fair value. The carrying value of the Companys variable rate long-term debt instruments also approximates fair value due to the variable rate feature of these instruments. Refer to Note 8, Long-Term Debt, for additional information relating to the fair value of the Company's outstan …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets are reduced, if deemed necessary, by a valuation allowance for the amount of tax benefits which are not more likely than not to be realized. The components of income (loss) before provision for (benefit from) income taxes are as follows: (In thousands) 2025 2024 2023 United States $ 22,956 $ (17,426) $ (32,809) Foreign 8,989 9,559 6,498 Income (Loss) Before Provision for (Benefit from) Income Taxes $ 31,945 $ (7,867) $ (26,311) The provision for (benefit from) income taxes at December 31 consists of the following: (In thousands) 2025 2024 2023 Current U.S. Federal $ 1,190 $ 6,026 $ (2,573) State 1,398 985 937 Foreign 1,360 1,357 1,600 Current 3,948 8,368 (36) Deferred U.S. Federal (449) (14) (336) State (502) (98) 583 Foreign (411) 92 (101) Deferred (1,362) (20) 146 Total $ 2,586 $ 8,348 $ 110 The following table summarizes the Companys income tax payments net of tax refunds by jurisdiction: (In thousands) 2025 2024 2023 U.S. Federal $ 8,903 U.S. State and Local 742 Foreign: Canada 2,177 Other 1 (217) Foreign 1,960 Total Cash Paid for Income Taxes, Net of Refunds $ 11,605 Total Cash Paid for Income Taxes, Net of Refunds (Prior to ASU 2023-09) $ 3,537 $ 1,964 1 Includes jurisdictions below the threshold for the period presented The company adopted AS …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company has operating and finance leases for leased office and manufacturing facilities and equipment leases. We have concluded that when an agreement grants us the right to substantially all of the economic benefits associated with an identified asset, and we are able to direct the use of that asset throughout the term of the agreement, we have a lease. We lease certain office equipment under finance leases, and we lease certain production facilities, office equipment and vehicles under operating leases. Some of our leases include options to extend or terminate the leases and these options have been included in the relevant lease term to the extent that they are reasonably certain to be exercised. The right-of-use (ROU) assets, ROU lease liabilities, and lease costs related to the Companys finance leases were immaterial as of December 31, 2025 and December 31, 2024. If the lease arrangement also contains non-lease components, the Company elected the practical expedient not to separate any combined lease and non-lease components for all lease contracts. For our real estate leases, the payments used in the calculation of a new lease liability include fixed payments and variable payments (if the variable payments are based on an index) over the remaining lease term. Variable lease payments based on indices have been included in the related right-of-use assets and lease liabilities on our Consolidated Balance Sheets, while variable lease payments based on usage of the …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted Standard Description Financial Statement Effect or Other Significant Matters ASU No. 2024-04 -Debt - Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments The amendments in this update clarify the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion or an extinguishment. We early adopted this standard during 2025 and applied it on a prospective basis. Refer to Note 8. ASU No. 2023-09 - Income Taxes (Topic 740), Improvements to Income Tax Disclosures The amendments in this update require enhanced disclosures within the annual rate reconciliation, including new requirements to present reconciling items on a gross basis in specified categories, disclosure of both percentages and dollar amounts, and disaggregation of the reconciling items by nature when they meet a quantitative threshold. The update also includes enhanced disclosure requirements for income taxes paid. We adopted this standard beginning in 2025 and applied it on a prospective basis. Refer to Note 11. ASU No. 2025-06 -Intangibles, Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software The amendments in this update remove all references to project stages and clarify the threshold entities apply to begin capitalizing software costs. T …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RETIREMENT PLANS AND RELATED POST RETIREMENT BENEFITS The Company has two non-qualified supplemental retirement defined benefit plans (SERP and SERP II) for certain current and retired executive officers. The accumulated benefit obligation of the plans as of December 31, 2025 and 2024 amounts to $24.5 million and $21.4 million, respectively. The plans provide for benefits based upon average annual compensation and years of service and, in the case of SERP, there are offsets for social security and profit sharing benefits. It is the Companys intent to fund the plans as plan benefits become payable, since no assets exist at December 31, 2025 or 2024 for either of the plans. The Company accounts for the funded status (i.e., the difference between the fair value of plan assets and the projected benefit obligations) of its pension plans in accordance with the recognition and disclosure provisions of ASC Topic 715, Compensation, Retirement Benefits , which requires the Company to recognize the funded status in its balance sheet, with a corresponding adjustment to Accumulated Other Comprehensive Income (AOCI), net of tax. These amounts will be subsequently recognized as net periodic pension cost pursuant to the Companys historical policy for amortizing such amounts. Further, actuarial gains and losses that arise in subsequent periods and are not recognized as net periodic pension cost in the same periods will be recognized as a component of AOCI. If actuarial gains and losses exceed …

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REVENUE Revenue is recognized when, or as, the Company transfers control of promised products or services to a customer in an amount that reflects the consideration the Company expects to be entitled in exchange for transferring those products or services. Sales shown on the Companys Consolidated Statements of Operations are from contracts with customers. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within a range from 30 to 90 days after the performance obligation has been satisfied; or in certain cases, up-front deposits. In circumstances where the timing of revenue recognition differs from the timing of receipt of consideration, the Company has determined that the Companys contracts generally do not include a significant financing component. Taxes collected from customers, which are subsequently remitted to governmental authorities, are excluded from sales. The Company recognizes an asset for the incremental, material costs of obtaining a contract with a customer if the Company expects the benefit of those costs to be longer than one year and the costs are expected to be recovered. These incremental costs include, but are not limited to, sales commissions incurred to obtain a contract with a customer. The Company has elected the practical expedient available under ASC 340-40-25-4 to immediately expense the incremental cost of obtaining a contract when the expected benefit of those costs is less than one year. As o …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENTS The Company reports segment information based on the management approach, which designates the internal reporting used by the Chief Operating Decision Maker (CODM) for making decisions and assessing performance as the source of the Companys reportable segments. The CODM, which is the Companys Chief Executive Officer, allocates resources and assesses the performance of each operating segment based on historical and potential future product sales, gross margin associated with those sales, and operating income (loss) before interest, taxes, and corporate expenses. The Company has determined its reportable segments to be Aerospace and Test Systems based on the information used by the CODM. Segment information and reconciliations to consolidated amounts for the years ended December 31 are as follows: (In thousands) 2025 2024 2023 Sales: Aerospace $ 797,353 $ 706,746 $ 605,001 Less Inter-segment Sales (34) (62) (171) Total Aerospace Sales 797,319 706,684 604,830 Test Systems 65,243 88,874 84,376 Less Inter-segment Sales (434) (132) Test Systems 64,809 88,742 84,376 Total Consolidated Sales $ 862,128 $ 795,426 $ 689,206 Less 1 Cost of Products Sold: Aerospace $ 548,879 $ 502,558 $ 451,911 68.8 % 71.1 % 74.7 % Test Systems $ 55,091 $ 72,440 $ 62,763 85.0 % 81.6 % 74.4 % Other Segment Items 2 Aerospace $ 135,236 $ 141,720 $ 128,290 Test Systems $ 17,563 $ 24,779 $ 30,358 (In thousands) 2025 2024 2023 Operating Income (Loss) and Margins: Aerospace $ 113,204 $ 62,406 $ 24,629 1 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND PRACTICES Description of the Business Astronics Corporation (Astronics or the Company) is a leading provider of advanced technologies to the global aerospace, defense, and electronics industries. Our products and services include advanced, high-performance electrical power generation, distribution and seat motion systems, lighting and safety systems, avionics products, systems certification, aircraft structures and automated test systems. We have principal operations in the United States (U.S.), Canada, France and Germany, as well as engineering offices in Ukraine and India. The Company has two reportable segments, Aerospace and Test Systems. The Aerospace segment designs and manufactures products for the global aerospace and defense industry. Our Test Systems segment designs, develops, manufactures and maintains automated test systems that support the aerospace and defense, communications and mass transit industries as well as training and simulation devices for both commercial and military applications. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. The Company accounts for its acquisitions under Accounting Standard Codification (ASC) Topic 805, Business Combinations and Reorganizations (ASC Topic 805). ASC Topic 805 provides guidance on how the acquirer recognizes and meas …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

SHAREHOLDERS EQUITY Share Buyback Program The Companys Board of Directors from time to time authorizes the repurchase of common stock, which allows the Company to purchase shares of its common stock in accordance with applicable securities laws on the open market or through privately negotiated transactions. The Company has the capacity under the currently authorized program to repurchase additional shares of its common stock with a maximum dollar value of $41.5 million. At-the-Market Equity Offering On August 8, 2023, the Company initiated an at-the-market equity offering program (the ATM Program) for the sale from time to time of shares of the Companys common stock, par value $0.01 per share having an aggregate offering price of up to $30.0 million. During the year ended December 31, 2023, the Company sold 1,334,228 shares of our Common Stock under the ATM Program. The Company generated $21.8 million in aggregate gross proceeds from sales under the ATM Program at an average sale price of $16.31 per share of Common Stock. Aggregate net proceeds from the ATM Program were $21.3 million after deducting related expenses, including commissions to the Sales Agents and issuance costs. No shares were sold under the ATM Program in 2025 or 2024. As of December 31, 2025, the Company had remaining capacity under the ATM Program to sell shares of Common Stock having an aggregate offering price up to approximately $8.2 million. Reserved Common Stock At December 31, 2025, approximately 7.1 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Acquisitions Envoy Aerospace, LLC On June 30, 2025, the Company purchased the membership interests of Envoy Aerospace, LLC (Envoy Aerospace), located in Aurora, Illinois. Envoy Aerospace is an FAA Organization Designation Authorization (ODA) services provider. Envoy Aerospace is included in our Aerospace segment. The total purchase price was approximately $8.3 million, net of cash acquired and the estimated closing adjustment. Of the purchase price, $4.5 million was paid at the closing date and $2.0 million was paid on the first anniversary of the closing date. A payment of $1.8 million becomes payable by the Company following the second anniversary of the closing date based on the achievement of certain milestones. The Company has finalized the purchase price allocation. Purchased intangible assets and goodwill are expected to be deductible for tax purposes over 15 years. This transaction was not considered material to the Companys financial position or results of operations. Buhler Motor Aviation On October 13, 2025, the Company acquired all of the issued and outstanding capital stock of Buhler Motor Aviation (BMA), located in Uhldingen-Muhlhofen, Germany. BMA is an established manufacturer of aircraft seat actuation systems with a broad product portfolio that includes actuators, electronics, control panels, pneumatic systems, and lighting. BMA is included in our Aerospace segment. The total purchase price was approximately $18.0 million, net of cash acquired and the estima …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Legal Proceedings and Other Matters Legal Proceedings One of the Companys Aerospace subsidiaries is involved in numerous patent infringement actions brought by Lufthansa Technik AG (Lufthansa) in Germany, the United Kingdom (UK) and France. The Company is vigorously defending all such litigation and proceedings. Additional information about these legal proceedings can be found in Note 19, Legal Proceedings and Other Matters, to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the 2025 10-K. As previously disclosed, Lufthansa and AES have filed requests with the German Federal Supreme Court to be granted leave to file appeals against the decision in both the direct and indirect matter. On February 25, 2026, the German Federal Supreme Court rejected Lufthansas and AESs petitions for leave to appeal in both matters. Therefore, the decisions of the Higher Regional Court of Karlsruhe have become final. The reserve for the German indirect claim and interest was approximately $17.8 million at July 4, 2026 and $17.6 million at December 31, 2025. The Company currently believes it is unlikely that the damages in the German indirect proceedings and related interest will be paid within the next twelve months. Therefore, the liability related to this matter is classified within Other Liabilities (non-current) in the Consolidated Condensed Balance Sheets at July 4, 2026 and December 31, 2025. In the matter before the UK High Court of Justice, …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Long-term Debt and Notes Payable Revolving Credit Facility On October 22, 2025, the Company entered into a $300.0 million senior secured, cash flow-based revolving credit facility (the Revolving Credit Facility), which replaced the Companys prior asset-based revolving credit facility, which was terminated. The scheduled maturity date for the Revolving Credit Facility is October 16, 2030. Under the terms of the Revolving Credit Facility, the Company pays interest on the unpaid principal amount outstanding at a rate equal to Term SOFR (as defined in the Revolving Credit Facility) plus an applicable margin ranging from 1.25% to 2.125%, determined based upon the Companys Total Net Debt Leverage Ratio (as defined in the Revolving Credit Facility). The Company pays a quarterly commitment fee on unused Revolving Commitments ranging from 0.20% to 0.35%, determined based upon the Companys Total Net Debt Leverage Ratio. The Revolving Credit Facility has an accordion feature that allows the Company to request incremental commitments of up to $100.0 million plus additional incremental amounts, subject to compliance with specified leverage requirements. Pursuant to the Revolving Credit Facility, the Company is subject to a total net debt leverage ratio covenant that requires that the Companys Total Net Debt Leverage Ratio may not exceed 4.50 to 1.00, a consolidated interest coverage ratio covenant that requires that the Companys Consolidated Interest Coverage Ratio (as defined in the Revo …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our revenue disaggregated by Market Segments for the periods indicated: Six Months Ended Three Months Ended (In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Aerospace Segment Commercial Transport $ 333,425 $ 283,115 $ 177,006 $ 145,573 Military Aircraft 64,133 60,696 30,631 27,433 General Aviation 49,052 33,613 27,603 18,370 Other 4,502 7,577 2,052 2,250 Aerospace Total 451,112 385,001 237,292 193,626 Test Systems Segment Government & Defense 39,464 25,613 22,665 11,052 Test Systems Total 39,464 25,613 22,665 11,052 Total $ 490,576 $ 410,614 $ 259,957 $ 204,678 The following table presents our revenue disaggregated by Product Lines for the periods indicated: Six Months Ended Three Months Ended Recast Recast (In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Aerospace Segment Inflight Entertainment & Connectivity $ 236,756 $ 209,012 $ 126,008 $ 105,902 Lighting & Safety 111,977 108,057 59,170 56,100 Flight Critical Electrical Power 48,423 37,146 23,660 15,832 Seat Motion 42,065 16,889 22,186 10,217 Other 11,891 13,897 6,268 5,575 Aerospace Total 451,112 385,001 237,292 193,626 Test Systems 39,464 25,613 22,665 11,052 Total $ 490,576 $ 410,614 $ 259,957 $ 204,678

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Fair Value There were no financial assets or liabilities carried at fair value measured on a recurring basis on July 4, 2026 or December 31, 2025. There were no non-recurring fair value measurements performed in the six months ended July 4, 2026 and June 28, 2025. Due to their short-term nature, the carrying value of cash and equivalents, accounts receivable, and accounts payable approximate fair value. The carrying value of the Companys variable rate long-term debt instruments also approximates fair value due to the variable rate feature of these instruments. Refer to Note 7, Long-term Debt and Notes Payable, for additional information relating to the fair value of the Companys outstanding fixed-rate Convertible Notes. …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The effective tax rates were approximately 7.4% and 29.0% for the three months ended and 3.3% and 9.8% for the six months ended July 4, 2026 and June 28, 2025, respectively. Beginning with the 2025 tax year, U.S. domestic research and development costs can be expensed as incurred. In addition, there are options to expense any remaining unamortized research and development costs that were previously capitalized during the 2022 through 2024 tax years. The tax rate in the 2026 period was favorably impacted by the reversal of valuation allowances related to net operating losses expected to be utilized in the 2026 period and previously capitalized research and development costs that are expected to be expensed in the 2026 period, partially offset by certain timing differences. In addition, the tax rate in the 2026 period was impacted by state and foreign income taxes and a discrete adjustment to recognize a benefit from deductible stock-based compensation expense. The Company records a valuation allowance against the deferred tax assets if and to the extent it is more likely than not that the Company will not recover the deferred tax assets. In evaluating the need for a valuation allowance, the Company weighs all relevant positive and negative evidence, and considers among other factors, historical financial performance, projected future taxable income, scheduled reversals of deferred tax liabilities, the overall business environment, and tax planning strategies. Afte …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

New or Recent Accounting Pronouncements We consider the applicability and impact of all ASUs. There have been no new applicable accounting pronouncements or changes in accounting pronouncements during the three months ended July 4, 2026 as compared with the recent accounting pronouncements described in the 2025 10-K. ASUs not disclosed were assessed and determined to be either not applicable or had or are expected to have minimal impact on our financial statements and related disclosures.

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Revenue On July 4, 2026, we had $780.6 million of remaining performance obligations, which we refer to as total backlog. We expect to recognize approximately $642.2 million of our outstanding performance obligations as revenue over the next twelve months and the balance thereafter. The Companys contract assets and contract liabilities consist primarily of costs and profits in excess of billings and billings in excess of cost and profits, respectively. The following table presents the beginning and ending balances of contract assets and contract liabilities: (In thousands) Contract Assets Contract Liabilities Beginning Balance, January 1, 2026 $ 54,687 $ 26,962 Ending Balance, July 4, 2026 $ 56,961 $ 27,282 The increase in contract assets reflects the net impact of new revenue recognized in excess of billings exceeding billing of previously unbilled revenue during the period. The increase in contract liabilities reflects the net impact of new customer advances or deferred revenues recorded in excess of revenue recognized. During the three and six months ended July 4, 2026, the Company recognized $12.7 million and $13.9 million, respectively, in revenues that were included in the contract liability balance at the beginning of the period. During the three and six months ended June 28, 2025, the Company recognized $9.9 million and $17.8 million, respectively, in such revenues. The Company recognizes an asset for certain, material costs to fulfill a contract if it is determined th …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information The Company reports segment information based on the management approach, which designates the internal reporting used by the CODM for making decisions and assessing performance as the source of the Companys reportable segments. The CODM, which is the Companys Chief Executive Officer, allocates resources and assesses the performance of each operating segment based on historical and potential future product sales, gross margin associated with those sales, and operating profit (loss) before interest, taxes, and corporate expenses. The Company has determined its reportable segments to be Aerospace and Test Systems based on the information used by the CODM. Segment information and reconciliations to consolidated amounts are as follows: Six Months Ended Three Months Ended (In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Sales: Aerospace $ 451,135 $ 385,035 $ 237,292 $ 193,647 Less Inter-segment Sales (23) (34) (21) Total Aerospace Sales 451,112 385,001 237,292 193,626 Test Systems 39,498 25,933 22,674 11,341 Less Inter-segment Sales (34) (320) (9) (289) Total Test Systems Sales 39,464 25,613 22,665 11,052 Total Consolidated Sales 490,576 410,614 259,957 204,678 Less 1 Cost of Products Sold: Aerospace 298,267 271,627 155,140 138,735 66.1 % 70.6 % 65.4 % 71.7 % Test Systems 30,279 25,311 17,920 13,116 76.7 % 98.8 % 79.1 % 118.7 % Other Segment Items 2 Aerospace 69,249 73,071 33,888 36,852 Test Systems 8,190 9,235 4,153 4,646 Operating Profit a …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Basis of Presentation The accompanying unaudited statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. On June 1, 2026, Astronics Corporation announced a twenty percent stock distribution of Class B Stock (the Class B stock distribution) to holders of both Common and Class B Stock. Stockholders received 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, with an ex-dividend date of June 15, 2026. All prior-period share or per share amounts presented herein have been retroactively adjusted to reflect the Class B stock distribution. The number of shares underlying, and the exercise price of outstanding stock options and other equity awards were proportionately adjusted to reflect the Class B stock distribution. Operating Results The results of operations for any interim period are not necessarily indicative of results for the full year. Operating results for the six months ended July 4, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. The balance sheet on December 31, 2025, has been derived fro …

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Shareholders Equity Share Buyback Program The Companys Board of Directors from time to time authorizes the repurchase of common stock, which allows the Company to purchase shares of its common stock in accordance with applicable securities laws on the open market or through privately negotiated transactions. The Company has the capacity under the currently authorized program to repurchase additional shares of its common stock with a maximum dollar value of $41.5 million. At-the-Market Equity Offering On August 8, 2023, the Company initiated an at-the-market equity offering program (the ATM Program) for the sale from time to time of shares of the Companys common stock, par value $0.01 per share, having an aggregate offering price of up to $30.0 million. During the three and six months ended July 4, 2026 and June 28, 2025, the Company did not sell any shares of its common stock under the ATM Program. As of July 4, 2026, the Company had remaining capacity under the ATM Program to sell shares of common stock having an aggregate offering price up to approximately $8.2 million. Comprehensive (Loss) Income and Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: (In thousands) July 4, 2026 December 31, 2025 Foreign Currency Translation Adjustments $ (7,105) $ (5,152) Retirement Liability Adjustment Before Tax (1,285) (1,540) Tax Benefit of Retirement Liability Adjustment 2,282 2,282 Retirement Liability Adjustment After Tax 997 …

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