TAT Technologies Reports Record Third Quarter 2026 Results
Record Quarterly and Nine-Month Revenue, Gross Profit Margin and Adjusted EBITDA
Revenue Increases 20.2%, Adjusted EBITDA Increases 60.9% and Diluted EPS Increases 57.8%
"Looking forward, we enter the final quarter of 2026 with strong momentum, supported by our long-standing customer relationships, strong backlog and long-term agreements. We believe TAT is well positioned to build on its strong performance to seize future opportunities and achieve sustainable, profitable growth in the years to come," concluded
Financial highlights:
Record quarterly and nine-month revenue, gross profit and Adjusted EBITDA.
- Revenues were
$55.6 million , a 20.2% increase compared to$46.2 million in the third quarter of 2025. For the first nine months of 2026, revenues increased by 13.8% to$149.6 million compared to$131.5 million in the first nine months of 2025. - Gross profit increased by 48.2% to
$17.2 million , representing 30.9% of revenues, compared to$11.6 million (25.1% of revenues) in the third quarter of 2025. For the first nine months of 2026, gross profit increased by 25.2% to$40.5 million compared to$32.4 million in the first nine months of 2025 (27.1% of revenues in the first nine months of 2026 compared to 24.6% of revenues in the first nine months of 2025). - Operating Income increased by 71.8% to
$9.0 million (16.3% of revenues) compared to$5.3 million (11.4% of revenues) for the third quarter of 2025. For the first nine months of 2026, operating income was$17.6 million (11.8% of revenues) compared to$13.9 million (10.5% of revenues) in the first nine months of 2025. - Net Income of
$7.7 million (Diluted EPS of$0.58 ) compared to$4.8 million for the third quarter of 2025 (Diluted EPS of$0.37 ). For the first nine months of 2026, net income was$19.1 million (Diluted EPS of$1.46 ), compared to$12.1 million (Diluted EPS of$1.02 ) in the first nine months of 2025. Net income for the first nine months of 2026 includes a one-time gain of$3.4 million , net of tax, on the sale of the Company's equity method investment in First Aviation Services Inc. (FAV). - Adjusted EBITDA was
$10.9 million (19.6% of revenues), a 60.9% increase from$6.8 million (14.6% of revenues) for the third quarter of 2025. Adjusted EBITDA for the first nine months of 2026 increased by 47% to$27.4 million (18.31% of revenues) compared to$18.6 million (14.1% of revenues) in the first nine months of 2025. Excluding the one-time pre-tax gain of$4.3 million from the sale of the Company's equity investment in FAV, Adjusted EBITDA for the first nine months of 2026 was$23.0 million . - Cash flow provided by operations for the third quarter was
$3.8 million compared to$7.5 million provided by operations in the third quarter of 2025. Cash flow from operations was$5.2 million in the first nine months of 2026 compared to$9.4 million in the first nine months of 2025. The decrease was primarily attributable to an increase in inventory of$10.6 million in the third quarter and$20.5 million in the first nine months of 2026, reflecting the Company's investment in inventory to support the ramp-up of its long-term agreements, including its expanded agreement with Honeywell. - Backlog and Long-Term Agreements: approximately
$577 million as ofSeptember 30, 2026 .
Investor Call Information
TAT Technologies will host an earnings webcast and conference call today,
Webcast Registration: Link to registration
Investor Relations Website: https://tat-technologies.com/investors/
Non-GAAP Financial Measures
To supplement its GAAP results, the Company presents adjusted EBITDA, adjusted net income and adjusted earnings per share, which are non-GAAP financial measures, to provide investors with additional insight into underlying operating performance. Management uses these measures to evaluate period-to-period operating performance and believes they are useful to investors because they exclude items that are non-recurring or non-cash in nature or that do not reflect the Company's core operations. Adjusted EBITDA excludes the Company's share in results of affiliated companies, share-based compensation, income taxes, financial (expenses) income, net, gain on sale of equity investment and depreciation and amortization. Adjusted net income and adjusted earnings per share exclude the gain on sale of equity investment and the related income tax impact. These non-GAAP measures should not be considered as alternatives to net income, operating income or earnings per share for the period and may not be indicative of the historic operating results of the Company; nor are they meant to be predictive of potential future results. These measures are not measures of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. See reconciliations of these non-GAAP measures to the most directly comparable GAAP measures below.
About TAT Technologies
TAT Technologies Ltd. (NASDAQ: TATT) (TASE: TAT Tech) is a leading provider of services and products to the commercial and military aerospace and ground defense industries, providing OEM heat transfer solutions and aviation accessories, MRO services for aviation components, including heat transfer solutions, overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps and MRO services on APUs, landing gears and other aircraft components for airlines, air cargo carriers, maintenance service centers and the military. For more information, please visit www.tat-technologies.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of
Contact:
Director of IR
Tel: +1-980-451-1115
[email protected]
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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TAT TECHNOLOGIES LTD. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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2026 |
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2025 |
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ASSETS |
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CURRENT ASSETS: |
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|
Cash and cash equivalents |
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|
|
Accounts receivable, net of allowance for credit losses of |
35,728 |
|
33,420 |
|
Inventory |
95,328 |
|
75,549 |
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Prepaid expenses and other current assets |
5,913 |
|
6,071 |
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Total current assets |
190,701 |
|
166,299 |
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NON-CURRENT ASSETS: |
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|
Property, plant and equipment, net |
50,207 |
|
46,922 |
|
Operating lease right of use assets |
5,154 |
|
5,807 |
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Intangible assets, net |
2,038 |
|
1,452 |
|
Investment in affiliates |
5,700 |
|
4,905 |
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Funds in respect of employee rights upon retirement |
434 |
|
398 |
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Deferred tax assets |
436 |
|
639 |
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Restricted deposit |
- |
|
307 |
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Total non-current assets |
63,969 |
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60,430 |
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Total assets |
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TAT TECHNOLOGIES LTD. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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2026 |
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2025 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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CURRENT LIABILITIES: |
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Current maturities of long-term debts |
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Accounts payable |
17,773 |
|
12,986 |
|
Accrued expenses and other current liabilities |
18,987 |
|
17,296 |
|
Current maturities of operating lease liabilities |
1,438 |
|
1,474 |
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|
|
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Total current liabilities |
38,365 |
|
33,983 |
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NON-CURRENT LIABILITIES: |
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|
Long-term debts, net |
10,963 |
|
9,485 |
|
Operating lease liabilities |
3,859 |
|
4,448 |
|
Liability in respect of employee rights upon retirement |
826 |
|
770 |
|
Deferred tax liabilities |
3,839 |
|
1,652 |
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|
Total non-current liabilities |
19,487 |
|
16,355 |
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COMMITMENTS AND CONTINGENCIES (NOTE 7) |
- |
|
- |
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Total liabilities |
57,852 |
|
50,338 |
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SHAREHOLDERS' EQUITY: |
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Ordinary shares of Authorized: 23,000,000 shares at Issued:13,272,610 shares at Outstanding: 12,998,137 shares at |
- |
|
- |
|
Additional paid-in capital |
138,049 |
|
136,578 |
|
Treasury stock at cost |
(2,088) |
|
(2,088) |
|
Accumulated other comprehensive income |
451 |
|
643 |
|
Retained earnings |
60,406 |
|
41,258 |
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|
|
|
|
|
Total shareholders' equity |
196,818 |
|
176,391 |
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Total liabilities and shareholders' equity |
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TAT TECHNOLOGIES LTD. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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Three Months Ended |
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Nine Months Ended |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenues: |
|
|
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Products |
|
|
|
|
|
|
|
|
|
Services |
40,227 |
|
33,618 |
|
105,077 |
|
93,677 |
|
|
|
55,563 |
|
46,235 |
|
149,648 |
|
131,481 |
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Costs: |
|
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|
|
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|
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Products |
10,338 |
|
9,170 |
|
31,207 |
|
26,613 |
|
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Services |
28,038 |
|
25,464 |
|
77,903 |
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72,488 |
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|
|
38,376 |
|
34,634 |
|
109,110 |
|
99,101 |
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Gross profit |
17,187 |
|
11,601 |
|
40,538 |
|
32,380 |
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Operating expenses: |
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Research and development, net |
726 |
|
323 |
|
1,832 |
|
887 |
|
|
Selling and marketing |
2,384 |
|
1,993 |
|
7,096 |
|
6,106 |
|
|
General and administrative |
5,041 |
|
4,025 |
|
13,966 |
|
11,522 |
|
|
|
8,151 |
|
6,341 |
|
22,894 |
|
18,515 |
|
|
Operating income |
9,036 |
|
5,260 |
|
17,644 |
|
13,865 |
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of equity investment |
- |
|
- |
|
4,324 |
|
- |
|
|
Interest expenses |
(216) |
|
(176) |
|
(546) |
|
(835) |
|
|
Other financial income (expenses), net |
273 |
|
206 |
|
92 |
|
(293) |
|
|
Income before taxes on income |
9,093 |
|
5,290 |
|
21,514 |
|
12,737 |
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Provision for income taxes |
1,759 |
|
821 |
|
3,815 |
|
1,624 |
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Income before share of equity investment |
7,334 |
|
4,469 |
|
17,699 |
|
11,113 |
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Share in profits of equity investment of |
343 |
|
372 |
|
1,449 |
|
983 |
|
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Net income |
|
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TAT TECHNOLOGIES LTD. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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Three Months Ended |
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Nine Months Ended |
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2026 |
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2025 |
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2026 |
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2025 |
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Earnings per share |
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Basic |
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Diluted |
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Weighted average number of shares outstanding |
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Basic |
12,998,137 |
|
12,911,050 |
|
12,989,582 |
|
11,776,747 |
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Diluted |
13,144,592 |
|
13,078,467 |
|
13,158,304 |
|
11,904,044 |
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TAT TECHNOLOGIES LTD. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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Three Months Ended September 30, |
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Nine Months Ended |
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|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
|
|
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|
Net income |
|
|
|
|
|
|
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Other comprehensive income (loss), net: |
|
|
|
|
|
|
|
|
|
Change in foreign currency translation |
(261) |
|
(101) |
|
(170) |
|
575 |
|
|
Net unrealized losses from derivatives |
(15) |
|
- |
|
(22) |
|
- |
|
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Total comprehensive income |
|
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TAT TECHNOLOGIES LTD. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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Share capital |
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Accumulated |
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|||
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Number of |
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Amount |
|
Additional |
|
other |
|
Treasury shares |
|
Retained |
|
Total equity |
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|
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BALANCE AT |
|
11,214,831 |
|
$- |
|
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|
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CHANGES DURING THE NINE MONTHS ENDED SEPTEMBER |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) |
|
- |
|
- |
|
- |
|
575 |
|
- |
|
12,096 |
|
12,671 |
|
|
Exercise of option |
|
142,981 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
|
Issuance of ordinary shares on public offering, net of issuance costs of |
|
1,625,000 |
|
- |
|
39,415 |
|
- |
|
- |
|
- |
|
39,415 |
|
|
Exercise of the underwriters' option on public offering, net of issuance |
|
242,298 |
|
- |
|
5,953 |
|
- |
|
- |
|
- |
|
5,953 |
|
|
Share based compensation |
|
- |
|
- |
|
680 |
|
- |
|
- |
|
- |
|
680 |
|
|
BALANCE AT |
|
13,225,110 |
|
$- |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AT |
|
13,257,610 |
|
$- |
|
|
|
|
|
|
|
|
|
|
|
|
CHANGES DURING THE NINE MONTHS ENDED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) |
|
- |
|
- |
|
|
|
(192) |
|
- |
|
19,148 |
|
18,956 |
|
|
Exercise of option |
|
15,000 |
|
- |
|
136 |
|
- |
|
- |
|
- |
|
136 |
|
|
Share based compensation |
|
- |
|
- |
|
1,335 |
|
- |
|
- |
|
- |
|
1,335 |
|
|
BALANCE AT |
|
13,272,610 |
|
$- |
|
|
|
|
|
|
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|
TAT TECHNOLOGIES LTD. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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Three Months Ended |
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Nine Months Ended |
||||
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|
2026 |
|
2025 |
|
2026 |
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2025 |
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|
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CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
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Net income |
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
1,362 |
|
1,249 |
|
4,066 |
|
3,762 |
|
Non-cash financial expenses |
462 |
|
126 |
|
814 |
|
634 |
|
Gain on sale of equity investment (Note 4) |
- |
|
- |
|
(4,324) |
|
- |
|
Change in allowance for credit losses |
39 |
|
(104) |
|
94 |
|
(79) |
|
Share in profits of equity investment of affiliated companies |
(343) |
|
(372) |
|
(1,449) |
|
(983) |
|
Share based compensation |
482 |
|
167 |
|
1,335 |
|
680 |
|
Deferred income taxes, net |
690 |
|
884 |
|
2,390 |
|
1,466 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Decrease (increase) in trade accounts receivable |
3,046 |
|
(960) |
|
(2,402) |
|
(3,554) |
|
Decrease (increase) in inventory |
(10,607) |
|
281 |
|
(20,490) |
|
1,464 |
|
Decrease (increase) in prepaid expenses and other current assets |
1,120 |
|
(1,757) |
|
309 |
|
(9,052) |
|
Increase (decrease) in trade accounts payable |
(929) |
|
1,334 |
|
3,945 |
|
4,740 |
|
Increase (decrease) in accrued expenses and other current liabilities |
774 |
|
1,806 |
|
1,725 |
|
(1,765) |
|
Net cash provided by operating activities |
3,773 |
|
7,495 |
|
5,161 |
|
9,409 |
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CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from sale of equity investment |
- |
|
- |
|
4,493 |
|
- |
|
Purchase of property and equipment |
(4,408) |
|
(2,743) |
|
(6,967) |
|
(8,910) |
|
Net cash used in investing activities |
(4,408) |
|
(2,743) |
|
(2,474) |
|
(8,910) |
|
|
|
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|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Repayments of short-term loans |
- |
|
- |
|
- |
|
(4,350) |
|
Repayments of long-term debts |
(96) |
|
(473) |
|
(11,368) |
|
(1,560) |
|
Proceeds from issuance of ordinary shares and exercise of the underwriters' option |
- |
|
- |
|
- |
|
48,550 |
|
Issuance costs of ordinary shares and exercise of the underwriters' option |
- |
|
(362) |
|
- |
|
(3,182) |
|
Proceeds (issuance costs) from long term debt, net |
(166) |
|
- |
|
10,711 |
|
- |
|
Proceeds from exercise of options |
- |
|
- |
|
136 |
|
- |
|
Net cash provided by (used in) financing activities |
(262) |
|
(835) |
|
(521) |
|
39,458 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents and restricted cash |
(897) |
|
3,917 |
|
2,166 |
|
39,957 |
|
Cash and cash equivalents and restricted cash at beginning of period |
54,629 |
|
43,474 |
|
51,566 |
|
7,434 |
|
Cash and cash equivalents and restricted cash at the end of period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary information on investing and financing activities not involving cash |
|
|
|
|
|
|
|
|
Additions of operating lease right-of-use assets and operating lease liabilities |
|
|
|
|
|
|
|
|
Reclassification between inventory and property, plant and equipment |
- |
|
- |
|
- |
|
579 |
|
Addition to property and equipment and intangible assets in accounts payable |
1,430 |
|
195 |
|
1,430 |
|
195 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
|
|
Interest paid |
135 |
|
430 |
|
438 |
|
946 |
|
Taxes paid |
79 |
|
21 |
|
192 |
|
197 |
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED)
AND
ADJUSTED NET INCOME ATTRIBUTABLE TO TAT TECHNOLOGIES LTD. (UNAUDITED)
|
TAT TECHNOLOGIES LTD. |
|||||||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
|
|
|||||||
|
|
|||||||
|
|
Three months ended |
|
Nine months ended |
||||
|
|
|
|
|
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Share in profits of equity investment of |
(343) |
|
(372) |
|
(1,449) |
|
(983) |
|
Provision for income taxes |
1,759 |
|
821 |
|
3,815 |
|
1,624 |
|
Interest expenses |
216 |
|
176 |
|
546 |
|
835 |
|
|
|
|
|
|
|
|
|
|
Other financial (income) expenses, net |
(273) |
|
(206) |
|
(92) |
|
293 |
|
Depreciation, amortization and others |
1,362 |
|
1,334 |
|
4,066 |
|
4,025 |
|
Share based compensation |
482 |
|
167 |
|
1,335 |
|
680 |
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|||||||
|
* Adjusted EBITDA for the nine months ended |
|||||||
|
TAT TECHNOLOGIES LTD. |
|||||||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
|
|
|||||||
|
|
|||||||
|
|
Three months ended |
|
Nine months ended |
||||
|
|
|
|
|
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Gain on sale of equity investment |
- |
|
- |
|
(4,324) |
|
- |
|
Income tax impact |
- |
|
- |
|
908 |
|
- |
|
Adjusted net income |
|
|
|
|
|
|
|
|
|
|||||||
|
Earnings per share |
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|||||||
|
Adjusted earnings per share |
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
View original content:https://www.prnewswire.com/news-releases/tat-technologies-reports-record-third-quarter-2026-results-302926360.html
SOURCE TAT Technologies Ltd


