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AstroNova's Q3 Earnings Climb Y/Y on ToughWriter Printer Growth
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Shares of AstroNova, Inc. (ALOT - Free Report) have gained 11.3% since the company reported its earnings for the quarter ended Oct. 31, 2025. This compares to the S&P 500 index’s 0.3% decline over the same time frame. Over the past month, the stock has declined 5.6% compared with the S&P 500’s 2.8% growth.
AstroNova reported a fiscal third-quarter 2026 adjusted net income of 20 cents per share, which increased more than threefold from the prior-year quarter’s figure.
Revenues of $39.2 million indicated a decline of 3.1% from $40.4 million in the year-ago period. Despite the top-line dip, the company posted meaningful improvements in profitability. Net income rose 57.5% year over year to $0.4 million from $0.2 million a year earlier. On a non-GAAP basis, net income surged 198.6% to $1.5 million.
Gross profit grew 3.5% year over year to $14.2 million, with gross margin improving 230 basis points to 36.2%. On a non-GAAP basis, gross profit increased 5.9% to $14.6 million, with the margin expanding 320 basis points to 37.2%. Adjusted EBITDA came in at $4.2 million, up 29.3% from the prior year, with the margin increasing to 10.7% from 8%.
Product ID and Aerospace Segment Metrics Show Divergent Trends
Product Identification (Product ID):
Revenues in the Product ID segment rose 2% year over year to $26.8 million. This growth was driven by all product categories, particularly a 16% year-over-year increase in Mail & Sheet/Flat Pack Printers, thanks to productivity improvements. Operating income for the segment remained flat at $1.9 million, but on a non-GAAP basis, it increased 50% to $2.9 million, with an operating margin of 10.6%, up from 7.2% a year earlier.
Aerospace:
The Aerospace segment posted $12.3 million in revenues, down 12.7% from the prior year due to an unusually strong third quarter of fiscal 2025 that had included $2.3 million in backlog-clearing orders. Nevertheless, segment operating profit rose 39.4% to $4.5 million, driven by improved mix and a benefit from an inventory provision adjustment. The segment's operating margin expanded sharply to 36.8%, from 23% a year ago.
Management Commentary: Stabilization and Margin Focus
CEO Jorik Ittmann emphasized that the third-quarter results reflect progress on operational efficiency and strategic focus, particularly in the Product ID business. He noted that improvements in lead times and backlog reduction contributed to customer satisfaction and internal performance. Ittmann also highlighted the strong margins in the Aerospace segment as validation of AstroNova’s market leadership in flight deck printers under the ToughWriter brand.
The company appears to be making cultural and organizational shifts, with leadership emphasizing transparency, decision-making speed and a focus on high-value opportunities. Management completed a $3 million annualized cost reduction program and is investing in digital marketing tools to strengthen pipeline quality.
Headline Drivers: Mix Shift and Operational Execution
The revenue decline was primarily due to a tough comparison in Aerospace aftermarket sales, which could not match last year’s atypical volume. However, sequential gains in both segments — up 8.5% from Q2 FY26 — showed traction from internal improvements and favorable market dynamics.
Gross margin improvements were aided by productivity initiatives and a stronger product mix, particularly within the Aerospace segment. The company also recorded a $0.4 million inventory provision associated with a warehouse closure and incurred non-recurring legal and proxy solicitation expenses totaling about $0.5 million.
Guidance Reaffirmed for Fiscal 2026
AstroNova reiterated its full-year fiscal 2026 revenue guidance in the range of $149 million to $154 million, implying fourth-quarter revenues between $36 million and $41 million. It also maintained its adjusted EBITDA margin outlook of 7.5% to 8.5%.
Other Developments
AstroNova refinanced its lending agreement on favorable terms, extending maturity, consolidating debt in the United States and reducing foreign exchange exposure. The company reduced its total debt by $6.4 million year to date and generated $8.1 million in operating cash flow during the first nine months of fiscal 2026.
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AstroNova's Q3 Earnings Climb Y/Y on ToughWriter Printer Growth
Shares of AstroNova, Inc. (ALOT - Free Report) have gained 11.3% since the company reported its earnings for the quarter ended Oct. 31, 2025. This compares to the S&P 500 index’s 0.3% decline over the same time frame. Over the past month, the stock has declined 5.6% compared with the S&P 500’s 2.8% growth.
AstroNova reported a fiscal third-quarter 2026 adjusted net income of 20 cents per share, which increased more than threefold from the prior-year quarter’s figure.
Revenues of $39.2 million indicated a decline of 3.1% from $40.4 million in the year-ago period. Despite the top-line dip, the company posted meaningful improvements in profitability. Net income rose 57.5% year over year to $0.4 million from $0.2 million a year earlier. On a non-GAAP basis, net income surged 198.6% to $1.5 million.
Gross profit grew 3.5% year over year to $14.2 million, with gross margin improving 230 basis points to 36.2%. On a non-GAAP basis, gross profit increased 5.9% to $14.6 million, with the margin expanding 320 basis points to 37.2%. Adjusted EBITDA came in at $4.2 million, up 29.3% from the prior year, with the margin increasing to 10.7% from 8%.
AstroNova, Inc. Price, Consensus and EPS Surprise
AstroNova, Inc. price-consensus-eps-surprise-chart | AstroNova, Inc. Quote
Product ID and Aerospace Segment Metrics Show Divergent Trends
Product Identification (Product ID):
Revenues in the Product ID segment rose 2% year over year to $26.8 million. This growth was driven by all product categories, particularly a 16% year-over-year increase in Mail & Sheet/Flat Pack Printers, thanks to productivity improvements. Operating income for the segment remained flat at $1.9 million, but on a non-GAAP basis, it increased 50% to $2.9 million, with an operating margin of 10.6%, up from 7.2% a year earlier.
Aerospace:
The Aerospace segment posted $12.3 million in revenues, down 12.7% from the prior year due to an unusually strong third quarter of fiscal 2025 that had included $2.3 million in backlog-clearing orders. Nevertheless, segment operating profit rose 39.4% to $4.5 million, driven by improved mix and a benefit from an inventory provision adjustment. The segment's operating margin expanded sharply to 36.8%, from 23% a year ago.
Management Commentary: Stabilization and Margin Focus
CEO Jorik Ittmann emphasized that the third-quarter results reflect progress on operational efficiency and strategic focus, particularly in the Product ID business. He noted that improvements in lead times and backlog reduction contributed to customer satisfaction and internal performance. Ittmann also highlighted the strong margins in the Aerospace segment as validation of AstroNova’s market leadership in flight deck printers under the ToughWriter brand.
The company appears to be making cultural and organizational shifts, with leadership emphasizing transparency, decision-making speed and a focus on high-value opportunities. Management completed a $3 million annualized cost reduction program and is investing in digital marketing tools to strengthen pipeline quality.
Headline Drivers: Mix Shift and Operational Execution
The revenue decline was primarily due to a tough comparison in Aerospace aftermarket sales, which could not match last year’s atypical volume. However, sequential gains in both segments — up 8.5% from Q2 FY26 — showed traction from internal improvements and favorable market dynamics.
Gross margin improvements were aided by productivity initiatives and a stronger product mix, particularly within the Aerospace segment. The company also recorded a $0.4 million inventory provision associated with a warehouse closure and incurred non-recurring legal and proxy solicitation expenses totaling about $0.5 million.
Guidance Reaffirmed for Fiscal 2026
AstroNova reiterated its full-year fiscal 2026 revenue guidance in the range of $149 million to $154 million, implying fourth-quarter revenues between $36 million and $41 million. It also maintained its adjusted EBITDA margin outlook of 7.5% to 8.5%.
Other Developments
AstroNova refinanced its lending agreement on favorable terms, extending maturity, consolidating debt in the United States and reducing foreign exchange exposure. The company reduced its total debt by $6.4 million year to date and generated $8.1 million in operating cash flow during the first nine months of fiscal 2026.