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Is Astronics Building a Broader Aerospace Growth Platform?
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Key Takeaways
Astronics is expanding across commercial aviation, defense, business aviation and test systems.
Seat-motion sales more than doubled to $22.2 million, with growth expected to continue through 2028.
Astronics has about 90% share in in-seat power and 60-70% in aircraft wireless access points.
Astronics (ATRO - Free Report) has historically been known as an aerospace components supplier, but the company is increasingly expanding its portfolio across commercial aviation, defense, business aviation and test systems.
ATRO is positioned across several areas of the aircraft cabin and airframe, giving it exposure to multiple trends within commercial aviation. Inflight entertainment and connectivity (IFEC) is the company’s largest aerospace product line, while lighting and safety, flight-critical electrical power and seat motion provide additional sources of revenues.
IFEC offers a particularly attractive retrofit opportunity because aircraft connectivity and entertainment systems can become technologically outdated before the aircraft itself reaches the end of its useful life. Astronics supplies in-seat power, wireless access points, antenna systems, IFE hardware and related certification capabilities. Management estimates that Astronics has about 90% market share in in-seat power and roughly 60-70% share in aircraft wireless access points, providing an installed base that can support future upgrades.
Astronics’ second-quarter seat-motion sales more than doubled year over year to $22.2 million. Management expects the product line to roughly double during 2026, with existing backlog supporting growth into 2027 and 2028.
Astronics illustrates how aerospace suppliers can benefit from several overlapping industry trends rather than relying on a single aircraft platform or product category. Commercial aircraft production supports demand for components, while aircraft retrofits create aftermarket opportunities. At the same time, defense modernization, unmanned aircraft, electric aviation and advanced testing systems provide additional avenues for growth.
The company’s expanding presence across IFEC, seat motion, flight-critical electrical power, defense programs and test systems gives it exposure to both established aerospace markets and emerging aircraft technologies.
Companies Benefiting From Similar Aerospace Trends
Astronics is not the only aerospace supplier positioned to benefit from increasing aircraft production and fleet modernization.
HEICO Corporation (HEI - Free Report) benefits from rising commercial aircraft utilization and demand for replacement parts, particularly through its large aerospace aftermarket business. Its diversified portfolio also provides exposure to aircraft maintenance and fleet modernization.
TransDigm Group (TDG - Free Report) supplies proprietary aerospace components and replacement parts, positioning it to benefit from the growing installed aircraft base and higher aftermarket demand. Its exposure spans both commercial and defense aerospace markets.
ATRO Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year improvement of 64.07% and 16.3%, respectively.
Image Source: Zacks Investment Research
ATRO Stock Trades at a Discount
In terms of valuation, ATRO’s forward 12-month price-to-sales (P/S) is 2.67X, a discount to the industry’s average of 7.14X.
Image Source: Zacks Investment Research
ATRO Stock’s Price Performance
In the past six months, the company’s shares have risen 14.8% against the industry’s 15.3% decline.
View the Zacks #1 Rank List
Image: Bigstock
Is Astronics Building a Broader Aerospace Growth Platform?
Key Takeaways
Astronics (ATRO - Free Report) has historically been known as an aerospace components supplier, but the company is increasingly expanding its portfolio across commercial aviation, defense, business aviation and test systems.
ATRO is positioned across several areas of the aircraft cabin and airframe, giving it exposure to multiple trends within commercial aviation. Inflight entertainment and connectivity (IFEC) is the company’s largest aerospace product line, while lighting and safety, flight-critical electrical power and seat motion provide additional sources of revenues.
IFEC offers a particularly attractive retrofit opportunity because aircraft connectivity and entertainment systems can become technologically outdated before the aircraft itself reaches the end of its useful life. Astronics supplies in-seat power, wireless access points, antenna systems, IFE hardware and related certification capabilities. Management estimates that Astronics has about 90% market share in in-seat power and roughly 60-70% share in aircraft wireless access points, providing an installed base that can support future upgrades.
Astronics’ second-quarter seat-motion sales more than doubled year over year to $22.2 million. Management expects the product line to roughly double during 2026, with existing backlog supporting growth into 2027 and 2028.
Astronics illustrates how aerospace suppliers can benefit from several overlapping industry trends rather than relying on a single aircraft platform or product category. Commercial aircraft production supports demand for components, while aircraft retrofits create aftermarket opportunities. At the same time, defense modernization, unmanned aircraft, electric aviation and advanced testing systems provide additional avenues for growth.
The company’s expanding presence across IFEC, seat motion, flight-critical electrical power, defense programs and test systems gives it exposure to both established aerospace markets and emerging aircraft technologies.
Companies Benefiting From Similar Aerospace Trends
Astronics is not the only aerospace supplier positioned to benefit from increasing aircraft production and fleet modernization.
HEICO Corporation (HEI - Free Report) benefits from rising commercial aircraft utilization and demand for replacement parts, particularly through its large aerospace aftermarket business. Its diversified portfolio also provides exposure to aircraft maintenance and fleet modernization.
TransDigm Group (TDG - Free Report) supplies proprietary aerospace components and replacement parts, positioning it to benefit from the growing installed aircraft base and higher aftermarket demand. Its exposure spans both commercial and defense aerospace markets.
ATRO Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year improvement of 64.07% and 16.3%, respectively.
Image Source: Zacks Investment Research
ATRO Stock Trades at a Discount
In terms of valuation, ATRO’s forward 12-month price-to-sales (P/S) is 2.67X, a discount to the industry’s average of 7.14X.
Image Source: Zacks Investment Research
ATRO Stock’s Price Performance
In the past six months, the company’s shares have risen 14.8% against the industry’s 15.3% decline.
Image Source: Zacks Investment Research
ATRO’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.