Astronics Corporation (NASDAQ: ATRO) saw its stock price surge 7.08% in after-hours trading on Tuesday, following the release of its third-quarter 2025 financial results. The aerospace and defense company reported earnings that surpassed analysts' expectations, despite a slight miss on revenue.

Astronics posted adjusted earnings per share of $0.49 for the third quarter, significantly beating the analyst consensus estimate of $0.42 by 17.51%. This represents a 40% increase from the $0.35 per share reported in the same period last year. The company's quarterly sales came in at $211.447 million, just shy of the $212.075 million estimated by analysts, but still showing a 3.80% year-over-year growth.

While the company reported a net loss of $11.098 million for the quarter, this was primarily due to $32.6 million in refinancing-related charges. Excluding these one-time items, Astronics demonstrated strong operational performance with an adjusted EBITDA of $32.718 million and an impressive adjusted EBITDA margin of 15.5%. The company's operating margin also improved to 10.9%, driven by higher volumes, pricing initiatives, and productivity gains in its Aerospace segment.

Investors were particularly encouraged by Astronics' positive outlook. The company expects fourth-quarter revenue to be between $225 million and $235 million, resulting in a full-year 2025 revenue expectation of $847 to $857 million. Furthermore, Astronics anticipates low double-digit growth in 2026, signaling continued optimism about its future performance.

The after-hours stock surge reflects investor confidence in Astronics' ability to navigate challenges and capitalize on growing demand in the Commercial Transport market. With a strong order book and improving margins, the company appears well-positioned for continued growth in the aerospace and defense sectors.