ASTRONICS CORP 10-Q

Item 1. Financial Statements ASTRONICS CORPORATION Consolidated Condensed Balance Sheets July 4, 2026 with Comparative Figures for December 31, 2025 (Unaudited) (In thousands) July 4, 2026 December 31, 2025 Current Assets: Cash and Cash Equivalents $ 9,016 $ 18,180 Accounts Receivable, Net of Allowance for Estimated Credit Losses 228,900 204,672 Inventories 220,065 196,860 Prepaid Expenses and Other Current Assets 27,763 18,027 Total Current Assets 485,744 437,739 Property, Plant and Equipment, Net of Accumulated Depreciation 115,568 107,078 Operating Right-of-Use Assets 31,273 32,269 Other Assets 14,366 11,316 Intangible Assets, Net of Accumulated Amortization 49,392 55,353 Goodwill 64,501 62,923 Total Assets $ 760,844 $ 706,678 Current Liabilities: Accounts Payable $ 64,399 $ 41,080 Current Operating Lease Liabilities 5,930 5,802 Accrued Expenses and Other Current Liabilities 66,462 68,324 Customer Advance Payments and Deferred Revenue 26,589 26,069 Total Current Liabilities 163,380 141,275 Long-term Debt 310,319 334,451 Long-term Operating Lease Liabilities 36,717 38,101 Other Liabilities 52,208 52,777 Total Liabilities 562,624 566,604 Shareholders’ Equity: 1 Common Stock 457 456 Accumulated Other Comprehensive Loss ( 6,108 ) ( 4,410 ) Other Shareholders’ Equity 203,871 144,028 Total Shareholders’ Equity 198,220 140,074 Total Liabilities and Shareholders’ Equity $ 760,844 $ 706,678 See notes to Consolidated Condensed Financial Statements. 1 Prior-period Shareholders’ Equity balances have been adjusted to reflect the impact of the twenty percent Class B stock distribution to shareholders of record on June 15, 2026, with no impact on Total Shareholders’ Equity. 3 Table of Contents ASTRONICS CORPORATION Consolidated Condensed Statements of Operations Three and Six Months Ended July 4, 2026 with Comparative Figures for 2025 (Unaudited) (In thousands, except per share data) Six Months Ended Three Months Ended July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Sales $ 490,576 $ 410,614 $ 259,957 $ 204,678 Cost of Products Sold 328,546 296,938 173,060 151,851 Gross Profit 162,030 113,676 86,897 52,827 Research and Development Expenses 22,958 22,639 10,869 11,572 Selling, General and Administrative Expenses 71,375 73,142 35,561 36,497 Income from Operations 67,697 17,895 40,467 4,758 Other Expense (Income), Net 390 ( 377 ) 281 ( 190 ) Interest Expense, Net of Interest Income 4,668 6,247 2,332 3,097 Income Before Income Taxes 62,639 12,025 37,854 1,851 Provision for Income Taxes 2,039 1,183 2,794 537 Net Income $ 60,600 $ 10,842 $ 35,060 $ 1,314 Earnings Per Share: Basic 1 $ 1.41 $ 0.26 $ 0.82 $ 0.03 Diluted 1 $ 1.31 $ 0.25 $ 0.75 $ 0.03 See notes to Consolidated Condensed Financial Statements. 1 All per share information have been adjusted to reflect the impact of the twenty percent Class B stock distribution to shareholders of record on June 15, 2026. 4 Table of Contents ASTRONICS CORPORATION Consolidated Condensed Statements of Comprehensive Income Three and Six Months Ended July 4, 2026 with Comparative Figures for 2025 (Unaudited) (In thousands) Six Months Ended Three Months Ended July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Net Income $ 60,600 $ 10,842 $ 35,060 $ 1,314 Other Comprehensive (Loss) Income: Foreign Currency Translation Adjustments ( 1,953 ) 2,931 ( 798 ) 2,179 Retirement Liability Adjustment – Net of Tax 255 ( 472 ) 128 ( 236 ) Total Other Comprehensive (Loss) Income ( 1,698 ) 2,459 ( 670 ) 1,943 Comprehensive Income $ 58,902 $ 13,301 $ 34,390 $ 3,257 See notes to Consolidated Condensed Financial Statements. 5 Table of Contents ASTRONICS CORPORATION Consolidated Condensed Statements of Cash Flows Six Months Ended July 4, 2026 with Comparative Figures for 2025 (Unaudited) Six Months Ended (In thousands) July 4, 2026 June 28, 2025 Cash Flows from Operating Activities: Net Income $ 60,600 $ 10,842 Adjustments to Reconcile Net Income to Cash Flows from Operating Activities: Non-cash items: Depreciation and Amortization 12,235 10,966 Amortization of Deferred Financing Fees 1,204 1,214 Provisions for Non-cash Losses on Inventory and Receivables 3,257 2,941 Equity-based Compensation Expense 4,819 3,902 Deferred Tax Expense (Benefit) 1,022 ( 1,125 ) Operating Lease Non-cash Expense 2,806 3,174 Simplification Initiative-related Non-cash Charges — 6,229 Other 1,223 ( 601 ) Changes in Operating Assets and Liabilities Providing (Using) Cash: Accounts Receivable ( 24,997 ) 5,803 Inventories ( 27,500 ) ( 1,498 ) Accounts Payable 23,620 2,957 Operating Lease Liabilities ( 3,093 ) ( 2,302 ) Accrued Expenses ( 1,929 ) ( 17,064 ) Income Taxes ( 1,128 ) ( 10,505 ) Customer Advance Payments and Deferred Revenue 478 ( 859 ) Cloud Computing Implementation Costs ( 4,122 ) — Supplemental Retirement Plan Liabilities ( 367 ) ( 202 ) Other Assets and Liabilities ( 7,403 ) ( 864 ) Net Cash Provided by Operating Activities 40,725 13,008 Cash Flows from Investing Activities: Capital Expenditures ( 16,869 ) ( 6,710 ) Net Cash Used by Investing Activities ( 16,869 ) ( 6,710 ) Cash Flows from Financing Activities: Proceeds from Long-term Debt 40,000 1,143 Principal Payments on Long-term Debt ( 65,000 ) ( 11,143 ) Financing-related Costs — ( 740 ) Stock Award Activity ( 5,441 ) ( 1,730 ) Other ( 2,220 ) ( 76 ) Net Cash Used by Financing Activities ( 32,661 ) ( 12,546 ) Effect of Exchange Rates on Cash ( 359 ) 1,280 Decrease in Cash and Cash Equivalents and Restricted Cash ( 9,164 ) ( 4,968 ) Cash and Cash Equivalents and Restricted Cash at Beginning of Period 18,180 18,428 Cash and Cash Equivalents and Restricted Cash at End of Period $ 9,016 $ 13,460 Supplemental Disclosure of Cash Flow Information Capital Expenditures in Accounts Payable (Non-Cash Investing Activities) $ 422 $ — Interest Paid $ 3,972 $ 2,967 Income Taxes Paid, Net $ 2,110 $ 12,848 See notes to Consolidated Condensed Financial Statements. 6 Table of Contents ASTRONICS CORPORATION Consolidated Condensed Statements of Shareholders’ Equity Three and Six Months Ended July 4, 2026 with Comparative Figures for 2025 (Unaudited) (In thousands) Six Months Ended Three Months Ended July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Common Stock Beginning of Period $ 345 $ 329 $ 348 $ 333 Net Issuance of Common Stock for Restricted Stock Units (“RSUs”) 1 1 — — Class B Stock Converted to Common Stock 12 7 10 4 End of Period 358 337 358 337 Convertible Class B Stock 1 Beginning of Period 111 122 109 119 Class B Stock Converted to Common Stock ( 12 ) ( 7 ) ( 10 ) ( 4 ) End of Period 99 115 99 115 Additional Paid in Capital 1 Beginning of Period 4,827 144,078 1,942 144,693 Equity-based Compensation Expense and Net Exercise of Stock Options, including ESPP 4,819 3,902 2,263 1,557 Tax Withholding Related to Issuance of RSUs ( 5,441 ) ( 1,730 ) — — Cash Paid in Lieu of Fractional Shares from Stock Distribution ( 135 ) — ( 135 ) — End of Period 4,070 146,250 4,070 146,250 Accumulated Comprehensive Loss Beginning of Period ( 4,410 ) ( 3,863 ) ( 5,438 ) ( 3,347 ) Foreign Currency Translation Adjustments ( 1,953 ) 2,931 ( 798 ) 2,179 Retirement Liability Adjustment – Net of Taxes 255 ( 472 ) 128 ( 236 ) End of Period ( 6,108 ) ( 1,404 ) ( 6,108 ) ( 1,404 ) Retained Earnings Beginning of Period 216,699 192,208 242,239 201,736 Net Income 60,600 10,842 35,060 1,314 End of Period 277,299 203,050 277,299 203,050 Treasury Stock Beginning of Period ( 77,498 ) ( 76,777 ) ( 77,498 ) ( 76,777 ) End of Period ( 77,498 ) ( 76,777 ) ( 77,498 ) ( 76,777 ) Total Shareholders’ Equity $ 198,220 $ 271,571 $ 198,220 $ 271,571 See notes to Consolidated Condensed Financial Statements. 1 Prior-period Shareholders’ Equity balances have been adjusted to reflect the impact of the twenty percent Class B stock distribution to shareholders of record on June 15, 2026, with no impact on Total Shareholders’ Equity. 7 Table of Contents ASTRONICS CORPORATION Consolidated Condensed Statements of Shareholders’ Equity, Continued Three and Six Months Ended July 4, 2026 with Comparative Figures for 2025 (Unaudited) (In thousands) Six Months Ended Three Months Ended (Shares) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Common Stock Beginning of Period 34,464 32,871 34,786 33,301 Net Issuance of Common Stock for RSUs 160 143 — — Class B Stock Converted to Common Stock 1,186 729 1,024 442 End of Period 35,810 33,743 35,810 33,743 Convertible Class B Stock 1 Beginning of Period 11,132 12,252 10,971 11,965 Net Issuance from Exercise of Stock Options 1 — — — Class B Stock Converted to Common Stock ( 1,186 ) ( 729 ) ( 1,024 ) ( 442 ) End of Period 9,947 11,523 9,947 11,523 Treasury Stock Beginning of Period 2,751 2,694 2,751 2,694 End of Period 2,751 2,694 2,751 2,694 See notes to Consolidated Condensed Financial Statements. 1 All share information have been adjusted to reflect the impact of the twenty percent Class B stock distribution to shareholders of record on June 15, 2026. 8 Table of Contents ASTRONICS CORPORATION Notes to Consolidated Condensed Financial Statements July 4, 2026 (Unaudited) 1) 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 from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the Consolidated Financial Statements and the notes thereto included in Astronics Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”) on February 26, 2026 (the “2025 10-K”). 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 inflight entertainment and connectivity products and services, lighting and safety systems, flight critical electrical power generation and distribution systems, seat motion systems 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. Acquisition Activities 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 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 which was reflected as an outflow from financing activities in the Consolidated Condensed Statement of Cash Flows. 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. On October 13, 2025, the Company acquired all of the issued and outstanding capital stock of Bühler Motor Aviation (“BMA”), located in Uhldingen-Mühlhofen, 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 estimated closing adjustment. The purchase price was paid at the closing date. 9 Table of Contents Restricted Cash Under the provisions of the Company’s prior asset-based revolving credit facility which was terminated on October 22, 2025, the Company had a cash dominion arrangement with the banking institution for its accounts within the United States whereby daily cash receipts were contractually utilized to pay down outstanding balances on the ABL Revolving Credit Facility. Account balances that had not yet been applied to the ABL Revolving Credit Facility were classified as restricted cash in the applicable Consolidated Condensed Balance Sheets. Trade Accounts Receivable and Contract Assets The allowance for estimated credit losses is based on the Company’s assessment of the collectability of customer accounts. The Company regularly reviews the allowance by considering factors such as the age of the receivable balances, historical experience, credit quality, current economic conditions, and reasonable and supportable forecasts of future economic conditions that may affect a customer’s ability to pay. The changes in allowances for estimated credit losses for the three and six months ended July 4, 2026 and June 28, 2025 consisted of the following: Six Months Ended Three Months Ended (In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Balance at Beginning of the Period $ 847 $ 2,377 $ 1,363 $ 2,291 Bad Debt Expense, Net of Recoveries 117 ( 105 ) ( 535 ) 23 Write-off Charges Against the Allowance and Other Adjustments ( 97 ) ( 1,430 ) 39 ( 1,472 ) Balance at End of the Period $ 867 $ 842 $ 867 $ 842 Simplification Initiatives In the second quarter of 2025, the Company initiated simplification activities in the Aerospace segment, including costs related to footprint rationalization and portfolio shaping. Restructuring charges, including impairments of inventory and other long-lived assets, were recorded as a result of these simplification initiatives. In the three and six months ended June 28, 2025, the Company recorded $ 5.8 million and $ 0.4 million in simplification initiative charges to Cost of Products Sold and Selling, General and Administrative Expenses, respectively, in the accompanying Consolidated Condensed Statements of Operations. No such charges were recorded in the three and six months ended July 4, 2026. Cloud Computing Arrangements The Company incurs costs to implement cloud computing arrangements hosted by third-party vendors. Implementation costs incurred during the application development phase are capitalized in accordance with ASC Topic 350-40, Intangibles—Goodwill and Other—Internal-Use Software , and are included in Other Non-Current Assets on the Consolidated Condensed Balance Sheets. Capitalized costs are amortized on a straight-line basis over the contractual term of the arrangement, beginning when the related cloud computing solution is ready for its intended use. Implementation costs are reflected within Cash from Operating Activities on the Consolidated Condensed Statements of Cash Flows. Amortization expense was immaterial for the three and six months ended July 4, 2026 and June 28, 2025. As of July 4, 2026 and December 31, 2025, the Company had capitalized implementation costs of $ 6.7 million and $ 2.8 million, respectively, which relate to one cloud computing implementation project that has not yet been placed into service; accordingly, amortization on this project has not yet begun. Valuation of Goodwill and Long-Lived Assets The Company tests goodwill at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. 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 with the 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. As of July 4, 2026 and June 28, 2025, the Company concluded that no indicators of impairment relating to intangible assets or goodwill existed and an interim test was not performed in the six-month periods then ended. 10 Table of Contents Foreign Currency Translation The aggregate foreign currency transaction gain or loss included in operations was immaterial for the three and six months ended July 4, 2026 and June 28, 2025. 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. 2) 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 Company’s 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 that the costs relate directly to a contract or an anticipated contract that can be specifically identified, generate or enhance resources that will be used in satisfying performance obligations in the future, and are expected to be recovered. Such costs are amortized on a systematic basis that is consistent with the transfer to the customer of the goods to which the asset relates. Start-up costs are expensed as incurred. Capitalized fulfillment costs are included in Inventories in the accompanying Consolidated Condensed Balance Sheets. Should future orders not materialize or it is determined the costs are no longer probable of recovery, the capitalized costs are written off. The Company’s capitalized fulfillment costs amounted to $ 6.9 million and $ 6.0 million on July 4, 2026 and December 31, 2025, respectively. Amortization of fulfillment costs recognized within Cost of Products Sold was $ 0.1 million and $ 0.2 million for the three and six months ended July 4, 2026, respectively, and $ 0.1 million and $ 3.4 million for the three and six months ended June 28, 2025, respectively. Beginning in the current year, the Company reorganized its product line structure to align with changes in internal reporting. Prior‑period disaggregated revenue information has been recast to conform to the current‑period presentation, including all prior years presented. The Company’s updated disaggregation of revenue by product lines is consistent with the information used by the Chief Operating Decision Maker (“CODM”) to evaluate operating performance and allocate resources. There was no impact on total revenue as a result of this change. The Company’s disaggregation of revenue by market segments remains unchanged from the Company’s prior presentation. 11 Table of Contents 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 Inflight Entertainment & Connectivity (“IFEC”) is a combination of the previous Avionics and Systems Certification product lines, as well as cabin power products which were included in the previous Electrical Power & Motion product line. The remainder of the previous Electrical Power & Motion product line is now split into two discrete product lines, Flight Critical Electrical Power and Seat Motion. Lighting and Safety remains consistent and Structures is now reported within Other Aerospace revenue. For the six months ended July 4, 2026, revenue in the Flight Critical Electrical Power product line includes $ 2.6 million related to performance obligations satisfied in prior periods due to a change in estimate of variable consideration. 3) Inventories Inventories consisted of the following: ( In thousands ) July 4, 2026 December 31, 2025 Finished Goods $ 33,609 $ 32,838 Work in Progress 46,146 38,686 Raw Material 140,310 125,336 $ 220,065 $ 196,860 12 Table of Contents 4) Property, Plant and Equipment Property, Plant and Equipment consisted of the following: (In thousands) July 4, 2026 December 31, 2025 Land $ 8,869 $ 8,902 Buildings and Improvements 99,450 83,482 Machinery and Equipment 139,759 131,610 Construction in Progress 8,333 19,616 Total Property, Plant and Equipment, Gross 256,411 243,610 Less Accumulated Depreciation 140,843 136,532 Total Property, Plant and Equipment, Net $ 115,568 $ 107,078 5) Intangible Assets The following table summarizes acquired intangible assets as follows: July 4, 2026 December 31, 2025 (In thousands) Weighted Average Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents 11 years $ 2,146 $ 2,146 $ 2,146 $ 2,146 Non-compete Agreement 4 years 11,082 11,082 11,082 11,082 Trade Names 10 years 11,544 10,633 11,565 10,541 Completed and Unpatented Technology 9 years 47,944 46,260 47,980 45,207 Backlog 4 years 3,888 602 3,991 177 Customer Relationships 15 years 145,623 108,352 145,773 104,531 Licensing Agreement 13 years 6,760 520 6,760 260 Total Intangible Assets 13 years $ 228,987 $ 179,595 $ 229,297 $ 173,944 All acquired intangible assets other than goodwill and one trade name are being amortized. Amortization expense for acquired intangibles is summarized as follows: Six Months Ended Three Months Ended (In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Amortization Expense $ 5,771 $ 5,920 $ 2,884 $ 2,945 Amortization expense for acquired intangible assets expected for 2026 and for each of the next five years is summarized as follows: (In thousands) 2026 $ 11,312 2027 $ 9,498 2028 $ 8,711 2029 $ 7,161 2030 $ 4,406 2031 $ 4,195 13 Table of Contents 6) Goodwill The following table summarizes the changes in the carrying amount of goodwill for the six months ended July 4, 2026: (In thousands) December 31, 2025 Acquisition Adjustments Foreign Currency Translation July 4, 2026 Aerospace $ 41,288 $ 1,048 $ 530 $ 42,866 Test Systems 21,635 — — 21,635 $ 62,923 $ 1,048 $ 530 $ 64,501 7) 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 Company’s 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 Company’s 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 Company’s 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 Company’s Total Net Debt Leverage Ratio may not exceed 4.50 to 1.00, a consolidated interest coverage ratio covenant that requires that the Company’s Consolidated Interest Coverage Ratio (as defined in the Revolving Credit Facility) may not be less than 3.50 to 1.00, and a secured net debt leverage ratio covenant that requires that the Company’s Secured Net Debt Leverage Ratio (as defined in the Revolving Credit Facility) may not exceed 3.00 to 1.00. As of July 4, 2026, the Company was in compliance with these covenants. There was $ 60.0 million outstanding and $ 237.8 million available for future borrowings, net of outstanding letters of credit, under the Revolving Credit Facility at July 4, 2026, and $ 85.0 million outstanding and $ 212.8 million available at December 31, 2025. Unamortized deferred debt issuance costs associated with the Revolving Credit Facility were $ 2.7 million and $ 3.0 million as of July 4, 2026 and December 31, 2025, respectively, and are recorded within Other Assets. Debt issuance cost amortization expense was $ 0.6 million for each of the three months ended July 4, 2026 and June 28, 2025, and $ 1.2 million for each of the six months ended July 4, 2026 and June 28, 2025. All costs are amortized to interest expense over the term of the respective agreement. Interest expense was $ 2.3 million and $ 3.1 million for the three months ended July 4, 2026 and June 28, 2025, respectively, and $ 4.7 million and $ 6.2 million for the six months ended July 4, 2026 and June 28, 2025, respectively. 2030 Convertible Notes On December 3, 2024, the Company issued $ 165.0 million aggregate principal amount of 5.500 % Convertible Senior Notes due 2030 (the “2030 Convertible Notes”). The 2030 Convertible Notes bear interest at a rate of 5.500 % per annum, payable semi-annually in arrears on March 15 and September 15 of each year. The 2030 Convertible Notes will mature on March 15, 2030, unless earlier converted, redeemed or repurchased. As adjusted for the Company’s twenty percent Class B stock distribution, the conversion rate is 53.0389 shares of common stock per $1,000 principal amount of 2030 Convertible Notes, which represents a conversion price of $ 18.85 per share. The 2030 Convertible Notes are convertible at the option of the holders at any time on or after December 15, 2029, until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Company will satisfy its conversion obligations by paying and/or delivering, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election. Beginning March 20, 2028, if the Company’s stock price has been at least 130 % of the conversion price for a specified period of time, the 2030 Convertible Notes may be called at the option of the issuer. Under the same conditions, the Company can elect to redeem the 2030 Convertible Notes for cash. After the first quarter of 2025, if the Company’s stock price has been at 14 Table of Contents least 130 % of the conversion price for 20 of 30 trading days ending on and including the last trading day of the immediately preceding quarter, the 2030 Convertible Notes may be called at the option of the holder. During the fiscal quarter ended July 4, 2026, the Company’s stock price met the price trigger defined above, and therefore holders of the 2030 Convertible Notes will have the ability to convert their notes at their option at any time during the fiscal quarter ending October 3, 2026. 2031 Convertible Notes On September 15, 2025, the Company issued $ 225.0 million aggregate principal amount of Convertible Senior Notes due 2031 (the “2031 Convertible Notes”). The 2031 Convertible Notes do not bear interest and will mature on January 15, 2031, unless earlier converted, redeemed or repurchased. As adjusted for the Company’s twenty percent Class B stock distribution, the conversion rate is 22.1283 shares of common stock per $1,000 principal amount of 2031 Convertible Notes, which represents a conversion price of $ 45.19 per share. The 2031 Convertible Notes are convertible at the option of the holders at any time on or after October 15, 2030, until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Company will satisfy its conversion obligations by paying cash up to the aggregate principal amount of the 2031 Convertible Notes to be converted and paying and/or delivering, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election, in respect of any amount in excess of the aggregate principal amount of the notes being converted. Beginning January 22, 2029, if the Company’s stock price has been at least 130 % of the conversion price for a specified period of time, the 2031 Convertible Notes may be called at the option of the Company. After the fourth quarter of 2025, if the Company’s stock price has been at least 130 % of the conversion price for 5 of the first 20 trading days of a fiscal quarter, the 2031 Convertible Notes may be redeemed at the option of the holder during the 30 ‑trading day period beginning on, and including, the 21st trading day of such quarter. During the fiscal quarter ended July 4, 2026, the Company’s stock price met the price trigger defined above, and holders of the 2031 Convertible Notes had the ability to convert their notes at their option during the 30‑trading day period beginning on, and including, the 21st trading day of the quarter. No notes were converted. The following table presents the outstanding principal amount and carrying value of the Convertible Notes as of the dates indicated: July 4, 2026 December 31, 2025 (In thousands) Principal Unamortized Debt Issuance Costs Carrying Value Principal Unamortized Debt Issuance Costs Carrying Value 2030 Convertible Notes $ 33,000 $ ( 902 ) $ 32,098 $ 33,000 $ ( 1,023 ) $ 31,977 2031 Convertible Notes 225,000 ( 6,779 ) 218,221 225,000 ( 7,526 ) 217,474 Total $ 258,000 $ ( 7,681 ) $ 250,319 $ 258,000 $ ( 8,549 ) $ 249,451 The Company estimates the fair value of the convertible notes based on quoted prices for these instruments in active markets and classifies these fair value measurements as Level 1 within the fair value hierarchy. The fair value of the 2031 Convertible Notes was approximately $ 378.2 million and $ 264.1 million as of July 4, 2026 and December 31, 2025, respectively. The fair value of the 2030 Convertible Notes was approximately $ 126.7 million and $ 84.8 million as of July 4, 2026 and December 31, 2025, respectively. Capped Call Transactions In connection with the issuance of the 2031 Convertible Notes, we entered into capped call transactions (the “Capped Calls”) with certain financial institutions. The Capped Calls are generally expected to reduce the potential dilution to the Company’s common stock upon any conversion of the 2031 Convertible Notes and/or offset any potential cash payments the Company is required to make in excess of the principal amount of converted 2031 Convertible Notes, subject to a cap. As adjusted for the Company’s twenty percent Class B stock distribution, the cap price of the Capped Calls is approximately $ 68.44 per share of the Company’s common stock and is subject to certain adjustments under the terms of the capped call transactions. The Capped Calls expire January 15, 2031. The Company used approximately $ 26.9 million of the net proceeds from the 2031 Convertible Notes to purchase the Capped Calls. These instruments are classified as equity and recorded within additional paid-in capital in the Consolidated Condensed Statements of Changes in Stockholders’ Equity. 15 Table of Contents 8) Product Warranties In the ordinary course of business, the Company warrants its products against defects in design, materials, and workmanship typically over periods ranging from twelve to sixty months . The Company determines warranty reserves needed by product line based on experience and current facts and circumstances. Activity in the warranty accrual, which is included in Accrued Expenses and Other Current Liabilities on the Consolidated Condensed Balance Sheets, is summarized as follows: Six Months Ended Three Months Ended (In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Balance at Beginning of Period $ 20,740 $ 18,081 $ 19,525 $ 17,611 Warranties Issued 2,523 3,401 1,574 2,494 Warranties Settled ( 3,884 ) ( 2,928 ) ( 2,075 ) ( 1,608 ) Change in Warranty Estimate ( 411 ) 459 ( 56 ) 516 Balance at End of Period $ 18,968 $ 19,013 $ 18,968 $ 19,013 9) 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. After considering the losses in recent periods and cumulative pre-tax losses in the three-year period ending with the most recently completed fiscal year, the Company determined that projections of future taxable income could not be relied upon as a source of income to realize its deferred tax assets. However, the Company is relying on a significant portion of its existing deferred tax liabilities for the realizability of deferred tax assets, which required us to reverse a portion of the valuation allowance associated with such deferred tax assets expected to be so realized. Accordingly, during the years ended December 31, 2025 and 2024, the Company determined that a portion of its deferred tax assets were not expected to be realizable in the future and the Company continues to maintain the valuation allowance against its residual amount of deferred tax assets as of July 4, 2026. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law in the United States. The OBBBA permanently extends and modifies significant provisions enacted in 2017 as part of the Tax Cuts and Jobs Act (“TCJA”) that were originally set to expire at the end of 2025. In addition, the OBBBA makes changes to certain U.S. corporate tax provisions, many of which were not in effect until 2026. Key provisions of the OBBBA relevant to the Company’s operations include immediate expensing of certain domestic research and development expenses and domestic capital expenditures beginning in 2025 as well as changes to various U.S. international tax provisions beginning in 2026. These provisions of the OBBBA have favorably impacted the Company’s effective tax rate and cash tax rate for the 2025 and 2026 tax years and are expected to have favorable impacts in future years. Changes in tax laws may affect recorded deferred tax assets and deferred tax liabilities and our effective tax rate in the future and the Company is continuing to evaluate the impacts of the new legislation. 16 Table of Contents 10) Earnings Per Share The following table sets forth the computation of basic earnings per share: Six Months Ended Three Months Ended (In thousands, except per share amounts) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Basic Earnings per Common Share: Net Income - Basic $ 60,600 $ 10,842 $ 35,060 $ 1,314 Weighted Average Shares - Basic 42,944 42,416 43,008 42,487 Basic Earnings per Common Share $ 1.41 $ 0.26 $ 0.82 $ 0.03 The following table sets forth the computation of diluted net income per share: Six Months Ended Three Months Ended (In thousands, except per share amounts) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Diluted Earnings per Common Share: Net Income - Diluted $ 60,600 $ 10,842 $ 35,060 $ 1,314 Weighted Average Shares - Basic 42,944 42,416 43,008 42,487 Net Effect of Dilutive Stock Awards 1,783 855 1,819 1,154 Net Effect of Dilutive Convertible Notes 1,492 — 1,708 — Weighted Average Shares - Diluted 46,219 43,271 46,535 43,641 Diluted Earnings per Common Share $ 1.31 $ 0.25 $ 0.75 $ 0.03 The above information has been adjusted to reflect the impact of the twenty percent distribution of Class B Stock for shareholders of record on June 15, 2026. The Company includes the dilutive effect of shares issuable upon conversion of its Convertible Notes in the calculation of diluted income per share using the if-converted method. The Company has the option for the 2030 Convertible Notes to settle the conversion value in any combination of cash or shares, and as such, the maximum number of shares issuable are included in the dilutive share count if the effect would be dilutive. The Company excluded all impacts of the 2030 Convertible Notes from the computation of diluted earnings per share at the three and six months ended July 4, 2026 as the effect would be anti-dilutive. The Company will settle the principal amount of the 2031 Convertible Notes by paying cash and settle the premium in any combination of cash or shares. The Company’s average stock price during the period outstanding was above the conversion price for the 2031 Convertible Notes, therefore incremental shares were included in diluted earnings per share at the three and six months ended July 4, 2026. Stock options with exercise prices greater than the average market price of the underlying common shares are excluded from the computation of diluted earnings per share because they are out-of-the-money and the effect of their inclusion would be anti-dilutive. Antidilutive shares excluded from diluted earnings per share computations as of the date indicated were as follows: Six Months Ended Three Months Ended (In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Stock Options and Unvested RSUs — 522 — 479 2030 Convertible Notes 1,750 8,751 1,750 8,751 Total Antidilutive Securities 1,750 9,273 1,750 9,230 17 Table of Contents 11) Shareholders’ Equity Share Buyback Program The Company’s 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 Company’s 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 997 742 Accumulated Other Comprehensive Loss $ ( 6,108 ) $ ( 4,410 ) The components of other comprehensive (loss) income are as follows: Six Months Ended Three Months Ended (In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Foreign Currency Translation Adjustments $ ( 1,953 ) $ 2,931 $ ( 798 ) $ 2,179 Retirement Liability Adjustments: Reclassifications to Selling, General and Administrative Expenses: Amortization of Prior Service Cost 193 193 96 97 Amortization of Net Actuarial Losses (Gains) 62 ( 665 ) 32 ( 333 ) Retirement Liability Adjustment 255 ( 472 ) 128 ( 236 ) Other Comprehensive (Loss) Income $ ( 1,698 ) $ 2,459 $ ( 670 ) $ 1,943 12) Sales to Major Customers The loss of major customers or a significant reduction in business with a major customer would significantly, and negatively impact our sales and earnings. In the three and six months ended July 4, 2026, the Company had one major customer over 10 % of consolidated sales primarily in the Aerospace segment. Sales to The Boeing Company (“Boeing”) accounted for 12.0 % and 11.1 % of consolidated sales in the three and six months ended July 4, 2026. Accounts receivable from Boeing on July 4, 2026 were approximately $ 27.1 million. In the three and six months ended June 28, 2025, the Company had no major customers over 10% of consolidated sales. 13) Legal Proceedings and Other Matters Legal Proceedings One of the Company’s 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. 18 Table of Contents 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 Lufthansa’s and AES’s 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, Lufthansa had pleaded its case for monetary compensation at a separate trial which was conducted in October 2024. Both the Company and Lufthansa submitted to the UK High Court of Justice calculations of the estimated profits derived from the reports of the parties’ respective financial experts. The account of profits trial judgment was published on February 21, 2025 by the court in the amount of $ 11.9 million. Such amount was recorded as a liability in the Company’s Consolidated Financial Statements as of December 31, 2024. Following a consequential hearing on March 20, 2025, the amount was adjusted upwards by $ 0.5 million related to the resolution of a provisional item. Additionally, on April 30, 2025, the UK High Court of Justice issued a draft order related to interest associated with damages, which obligated the Company to accrue a reserve estimate of $ 5.7 million relating to such interest associated with the damages. Both of these amounts were recorded within Selling, General and Administrative Expenses in the Company’s Consolidated Condensed Statement of Operations during the first quarter of 2025. There was a further consequential hearing on May 16, 2025 which addressed applications concerning interest on the ordered damages, permission to appeal the court’s findings in these matters, as well as the issue of reimbursement of legal fees in the damages phase of the litigation. The Company was ordered to make payments of $ 5.7 million in relation to previously accrued interest and $ 3.5 million for partial reimbursement of Lufthansa’s legal costs. The legal cost reimbursement was recorded within Selling, General and Administrative Expenses in the Company’s Consolidated Condensed Statement of Operations during the second quarter of 2025. During the three and six months ended June 28, 2025, the Company made payments totaling $ 21.6 million, in satisfaction of the liabilities for damages, interest and provisional legal fee reimbursement. Both the Company and Lufthansa were granted permission to appeal the rulings by the UK High Court of Justice. The appeals were heard by the UK Court of Appeal in July 2026 and judgment was handed down on July 27, 2026. The Court’s judgment is that Lufthansa failed in its appeal and the Company succeeded in one of its appeals. The Company’s position is that approximately $ 2.2 million (including interest) of the damages paid by the Company to Lufthansa following the judgments in February 2025 and April 2025 is due to be repaid to the Company by Lufthansa. The Company is seeking an order for repayment of this money from the Court of Appeal. The Company is also seeking from the Court of Appeal that a portion of its legal expense for the appeals and the first instance damages trial is reimbursed; such amount has not yet been estimated. It is possible for either side to seek permission to appeal to the UK Supreme Court. No such applications have yet been made by either side. The Company expects to record the gain for the damages repayment as well as the legal fee reimbursement as an offset to Selling, General and Administrative Expense in the quarter in which the Court orders such payments. A liability for reimbursement of Lufthansa’s legal expenses associated with the UK matter, exclusive of the damages phase, was approximately $ 1.0 million at July 4, 2026 and December 31, 2025, which is expected to be paid within the next twelve months and, as such, is classified in Accrued Expenses and Other Current Liabilities in the accompanying Consolidated Condensed Balance Sheets as of July 4, 2026 and December 31, 2025. With respect to the proceeding in France, the Court of Appeal of Paris is set to hear the appeal on nullity on October 28, 2026. Should the Court find the patent to be valid, the trial date for the infringement and damages is scheduled for December 2027. As loss exposure is not probable and estimable at this time, the Company has not recorded any liability with respect to the French matter at July 4, 2026 or December 31, 2025. Each of the German, France and UK claims are separate and distinct. Validity and infringement of the Lufthansa patent in each country is a matter for the courts in each of these countries, whose laws differ from each other. In addition, the principles of calculating damages in each jurisdiction differ substantially. Therefore, the Company has assessed each matter separately and cannot apply the same calculation methodology as in the German direct and indirect matters. However, it is reasonably possible that additional damages and interest could be incurred if the appellate court in France was to rule in favor of Lufthansa, or if damages in the UK matter upon conclusion of the appeal are calculated on a different basis than the initial judgment. There were no other significant developments in any of these matters during the three months ended July 4, 2026. 19 Table of Contents Other than these proceedings, we are not party to any significant pending legal proceedings that management believes will result in a material adverse effect on our financial condition or results of operations. Other Matters On February 20, 2026, the U.S. Supreme Court struck down certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). Following the Supreme Court decision, the U.S. Administration announced a new 10% global tariff under Section 122 of the Trade Act of 1974, which was subsequently struck down on May 7, 2026 by the U.S. Court of International Trade. Refunds of previously paid tariffs represent gain contingencies under ASC 450-30. Consistent with this guidance, the Company recognizes such refunds as a reduction of Cost of Products Sold in the period in which the gain is realized or realizable, generally when cash is received. Refunds that have been approved but not yet received, or that remain subject to appeal, further agency action, or other contingencies, are not recognized until realization criteria are met. As a result, during the three and six months ended July 4, 2026, the Company received $ 2.0 million in IEEPA tariff refunds in the Consolidated Condensed Statement of Operations. The ultimate impact of these developments on our future financial results remains uncertain, including the timing and extent of any future refunds of tariffs previously paid under IEEPA and the nature, scope, and rate of any replacement tariffs or other trade measures that may be implemented. 14) 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 Company’s reportable segments. The CODM, which is the Company’s 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. 20 Table of Contents 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 and Margins: Aerospace 83,596 40,303 48,264 18,039 18.5 % 10.5 % 20.3 % 9.3 % Test Systems 3 995 ( 8,933 ) 592 ( 6,710 ) 2.5 % ( 34.9 ) % 2.6 % ( 60.7 ) % Total Operating Profit 84,591 31,370 48,856 11,329 17.2 % 7.6 % 18.8 % 5.5 % Deductions from Segment Measure of Operating Profit: Interest Expense, Net of Interest Income 4,668 6,247 2,332 3,097 Corporate Expenses and Other 17,284 13,098 8,670 6,381 Income Before Income Taxes $ 62,639 $ 12,025 $ 37,854 $ 1,851 1 The significant expenses and amounts presented align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown. 2 Other segment items include Selling, General and Administrative Expenses, Research and Development Expenses, and sublease and rental income. 3 In the three and six months ended June 28, 2025, revisions of estimated costs to complete certain long-term mass transit Test contracts had an adverse impact to operating profit of $ 6.9 million and $ 8.8 million, respectively. (In thousands) July 4, 2026 December 31, 2025 Total Assets: Aerospace $ 614,128 $ 570,294 Test Systems 126,664 119,603 Corporate 20,052 16,781 Total Assets $ 760,844 $ 706,678 21 Table of Contents Six Months Ended Three Months Ended (In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Depreciation and Amortization: Aerospace $ 11,205 $ 8,955 $ 5,826 $ 4,457 Test Systems 1,002 1,990 497 912 Corporate 28 21 18 9 Total Depreciation and Amortization $ 12,235 $ 10,966 $ 6,341 $ 5,378 Capital Expenditures: Aerospace $ 16,221 $ 6,525 $ 5,490 $ 4,443 Test Systems 605 185 176 162 Corporate 43 — 43 — Total Capital Expenditures $ 16,869 $ 6,710 $ 5,709 $ 4,605 15) 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 Company’s 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 Company’s outstanding fixed-rate Convertible Notes. 16) 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 Company’s financial position or results of operations. Bühler Motor Aviation On October 13, 2025, the Company acquired all of the issued and outstanding capital stock of Bühler Motor Aviation (“BMA”), located in Uhldingen-Mühlhofen, 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 estimated closing adjustment. The purchase price was paid at the closing date. The Company has not yet finalized the purchase price allocation. Purchased intangible assets and goodwill are not expected to be deductible for tax purposes. This transaction was not considered material to the Company’s financial position or results of operations. 22 Table of Contents