PR Newswire
CHARLOTTE, N.C., May 20, 2026 /PRNewswire/ — TAT Technologies Ltd. (NASDAQ: TATT) (TASE: TATT) (“TAT” or the “Company”) a leading provider of products and services to the commercial and military aerospace and ground defense industries, today reported its unaudited results for the three-month period ended March 31, 2026.
Financial highlights for the first quarter of 2026:
- Revenues were $41.1 million; a slight decrease of 2.4% compared to $42.1 million in the first quarter of 2025, driven primarily by component part shortages and delayed deliveries from certain OEM suppliers.
- Gross profit remained stable at $10.0 million. Gross margin improved by 80 basis points to 24.4% of revenues, compared to 23.6% of revenues in the first quarter of 2025.
- Operating income was $3.0 million, a decrease from $4.2 million in the first quarter of 2025, reflecting a margin of 7.3% versus 9.9% in the first quarter of 2025.
- Net income totaled $3.4 million, a slight decrease compared to $3.8 million in the first quarter of 2025.
- Adjusted EBITDA was $4.9 million, representing 11.8% of revenues, a decrease from $5.7 million representing 13.6% of revenues in the first quarter of 2025.
- Operating cash flow for the quarter was positive $1.9 million compared to negative $(5.0) million used in operating activities in the first quarter of 2025, reflecting a significant improvement in cash generation.
Mr. Igal Zamir, TAT’s CEO and President, commented:
“TAT Technologies entered 2026 with a robust operational foundation, and the record customer demand in the first quarter reinforced our confidence in the trajectory we are on. Demand for our services has never been stronger, and the value of our long-term agreements and backlog reached an all-time high, growing to approximately $580 million at the end of Q1, reflecting new contract wins and exceptionally strong customer intake across all four of our service lines.”
As opposed to this strong momentum entering the year, and as previously communicated, we experienced some supply chain disruptions that affected the results of the first quarter. These distruptions were triggered by certain OEM suppliers, leading to delays in finish goods and deliveries. Primarily as a result of these delays, our revenue slightly declined YoY, not fully utilizing our growing backlog. We expect this obstacle to be resolved in the next few months, allowing TAT the continued growth trajectory we started last year.
“As we look ahead through the rest of 2026, we are confident in the fundamentals of the business. Demand is at an all-time high and our record backlog provides strong revenue expectations. Subject to the anticipated resolution of our recent supply chain disruptions, we expect our growth trajectory will resume in the second quarter and the second half of the year, driven primarily by stronger demand and record backlog. We remain well-positioned to deliver growth and long-term value for our shareholders,” concluded Mr. Zamir.
Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with GAAP, the Company also presents Adjusted EBITDA. The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors with a more complete understanding of the Company’s underlying operational results, trends and performance. Adjusted EBITDA is calculated as net income excluding the impact of: the Company’s share in results of affiliated companies, share-based compensation, taxes on income, financial (expenses) income, net, and depreciation and amortization. Adjusted EBITDA, however, should not be considered as an alternative to net income and operating income for the period and may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. See reconciliation of Adjusted EBITDA below.
Investor Call Information
TAT Technologies will host an earnings webcast and conference call today, May 20, 2026, at 8:00 a.m. Eastern Time to discuss first quarter results. Investors may register using the link below or by visiting the Company’s website.
Webcast Registration: Here
Investor Relations Website: https://tat-technologies.com/investors/
Contact:
Mr. Eran Yunger
Director of IR
[email protected]
About TAT Technologies Ltd
We are a leading provider of solutions and services to the aerospace and defense industries. We operate four operational units: (i) original equipment manufacturing (“OEM”) of heat transfer solutions and aviation accessories through our Kiryat Gat facility (TAT Israel); (ii) maintenance repair and overhaul (“MRO”) services for heat transfer components and OEM of heat transfer solutions through our subsidiary Limco Airepair Inc. (“Limco”); (iii) MRO services for aviation components through our subsidiary, Piedmont Aviation Component Services LLC (“Piedmont”) (mainly Auxiliary Power Units (“APUs”) and landing gear); and (iv) overhaul and coating of jet engine components through our subsidiary, Turbochrome Ltd. (“Turbochrome”).
TAT’s activities in the area of OEM of heat transfer solutions and aviation accessories through TAT Israel primarily include the design, development and manufacture of (i) a broad range of heat transfer solutions, such as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on board aircraft and ground applications; and (iii) a variety of mechanical aircraft accessories and systems such as pumps, valves, and turbine power units.
TAT’s activities in the area of MRO and OEM of heat transfer solutions include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT’s Limco subsidiary operates a Federal Aviation Administration (“FAA”)-certified repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers and the military.
TAT’s activities in the area of MRO services for aviation components include the MRO of APUs and landing gear. TAT’s Piedmont subsidiary operates an FAA-certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military.
TAT’s activities in the area of jet engine overhaul through its Turbochrome facility includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps.
Safe Harbor for Forward-Looking Statements
This press release and/or this report contains “forward-looking statements” within the meaning of the United States federal securities laws. These forward-looking statements include, without limitation, statements regarding possible or assumed future operation results. These statements are hereby identified as “forward-looking statements” for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause our results to differ materially from management’s current expectations. Actual results and performance can also be influenced by other risks that we face in running our operations including, but are not limited to, general business conditions in the airline industry, changes in demand for our services and products, the timing and amount or cancellation of orders, LTAs and backlog, the price and continuity of supply of component parts used in our operations (including the risk that recent delivery delays and part shortages are not resolved in a timely manner), our ability to successfully identify, execute, and integrate potential merger and acquisition transactions and other risks detailed from time to time in the Company’s filings with the Securities Exchange Commission, including, its annual report on form 20-F and its periodic reports on form 6-K. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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CURRENT ASSETS: |
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Cash and cash equivalents |
$51,235 |
$51,259 |
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Accounts receivable, net of allowance for credit losses of $241 and $172 as of March 31, 2026, and December 31, 2025, respectively |
30,456 |
33,420 |
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Inventory |
81,736 |
75,549 |
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Prepaid expenses and other current assets |
8,423 |
6,071 |
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Total current assets |
171,850 |
166,299 |
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NON-CURRENT ASSETS: |
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Property, plant and equipment, net |
47,162 |
46,922 |
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Operating lease right of use assets |
5,484 |
5,807 |
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Intangible assets, net |
1,375 |
1,452 |
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Investment in affiliates |
5,520 |
4,905 |
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Funds in respect of employee rights upon retirement |
400 |
398 |
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Deferred tax assets |
706 |
639 |
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Restricted deposit |
310 |
307 |
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Total non-current assets |
60,957 |
60,430 |
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Total assets |
$232,807 |
$226,729 |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial Statements. |
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CURRENT LIABILITIES: |
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Current maturities of long-term loans |
$2,272 |
$2,227 |
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Accounts payable |
15,529 |
12,986 |
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Accrued expenses and other |
17,396 |
17,296 |
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Current maturities of operating lease liabilities |
1,448 |
1,474 |
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Total current liabilities |
36,645 |
33,983 |
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NON-CURRENT LIABILITIES: |
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Long-term loans |
8,937 |
9,485 |
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Operating lease liabilities |
4,174 |
4,448 |
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Liability in respect of employee rights upon retirement |
772 |
770 |
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Deferred tax liabilities |
1,804 |
1,652 |
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Total non-current liabilities |
15,687 |
16,355 |
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COMMITMENTS AND CONTINGENCIES (NOTE 4) |
– |
– |
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Total liabilities |
52,332 |
50,338 |
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SHAREHOLDERS’ EQUITY: |
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Ordinary shares of NIS 0 par value
Authorized: 15,000,000 shares at March 31, 2026 and at December 31, Issued:13,257,610 shares at March 31, 2026 and at December 31, 2025
Outstanding: 12,983,137 shares at March 31, 2026 and at December 31, |
– |
– |
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Additional paid-in capital |
137,071 |
136,578 |
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Treasury stock at cost |
(2,088) |
(2,088) |
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Accumulated other comprehensive income |
834 |
643 |
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Retained earnings |
44,658 |
41,258 |
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Total shareholders’ equity |
180,475 |
176,391 |
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Total liabilities and shareholders’ equity |
$232,807 |
$226,729 |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
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Revenues: |
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Products |
$13,906 |
$12,724 |
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Services |
27,241 |
29,418 |
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41,147 |
42,142 |
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Costs: |
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Products |
10,099 |
8,331 |
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Services |
21,017 |
23,857 |
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31,116 |
32,188 |
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Gross profit |
10,031 |
9,954 |
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Operating expenses: |
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Research and development, net |
571 |
324 |
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Selling and marketing |
2,182 |
1,928 |
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General and administrative |
4,293 |
3,532 |
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7,046 |
5,784 |
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Operating income |
2,985 |
4,170 |
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Interest expenses |
(148) |
(335) |
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Other financial income, net |
187 |
277 |
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Income before taxes on income |
3,024 |
4,112 |
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Provision for income taxes |
145 |
592 |
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Income before share of equity investment |
2,879 |
3,520 |
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Share in profits of equity investment of affiliated companies |
521 |
293 |
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Net income |
$3,400 |
$3,813 |
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Earnings per share |
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Basic |
$0.26 |
$0.35 |
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Diluted |
$0.26 |
$0.34 |
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Weighted average number of shares outstanding |
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Basic |
12,983,137 |
10,940,358 |
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Diluted |
13,204,290 |
11,211,271 |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
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Net income |
$3,400 |
$3,813 |
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Other comprehensive income, net: |
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Change in foreign currency translation adjustments |
191 |
528 |
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Total comprehensive income |
$3,591 |
$4,341 |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
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11,214,831 |
$- |
$89,697 |
$(76) |
$(2,088) |
$24,436 |
$111,969 |
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Comprehensive income |
– |
– |
– |
528 |
– |
3,813 |
4,341 |
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Share based compensation |
222 |
222 |
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11,214,831 |
$- |
$89,919 |
$452 |
$(2,088) |
$28,249 |
$116,532 |
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13,257,610 |
$- |
$136,578 |
$643 |
$(2,088) |
$41,258 |
$176,391 |
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Comprehensive income |
– |
– |
– |
191 |
– |
3,400 |
3,591 |
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Share based compensation |
– |
– |
493 |
– |
– |
– |
493 |
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13,257,610 |
$- |
$137,071 |
$834 |
$(2,088) |
$44,658 |
$180,475 |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
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CASH FLOWS FROM OPERATING ACTIVITIES: |
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Net income |
$3,400 |
$3,813 |
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Adjustments to reconcile net income to net cash used in operating activities: |
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Depreciation and amortization |
1,313 |
1,305 |
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Non-cash financial (income) expenses |
331 |
(99) |
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Change in allowance for (recovery of) credit losses |
69 |
(50) |
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Share in profits of equity investment of affiliated companies |
(521) |
(293) |
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Share based compensation |
493 |
222 |
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Deferred income taxes, net |
85 |
519 |
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Changes in operating assets and liabilities: |
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Decrease (increase) in trade accounts receivable |
2,894 |
(3,476) |
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Increase in prepaid expenses and other current assets |
(2,257) |
(527) |
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Increase in inventory |
(6,430) |
(3,861) |
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Increase in trade accounts payable |
2,471 |
434 |
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Increase (decrease) in accrued expenses and other |
102 |
(3,022) |
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1,950 |
(5,035) |
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CASH FLOWS FROM INVESTING ACTIVITIES: |
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Purchase of property and equipment |
(1,420) |
(2,862) |
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(1,420) |
(2,862) |
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CASH FLOWS FROM FINANCING ACTIVITIES: |
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Repayments of long-term loans |
(551) |
(571) |
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Net change in short term loans from banks |
– |
6,369 |
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(551) |
5,798 |
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(21) |
(2,099) |
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51,566 |
7,434 |
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$51,545 |
$5,335 |
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Additions of operating lease right-of-use assets and operating lease liabilities |
82 |
147 |
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Reclassification between inventory and property, plant and equipment |
– |
579 |
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Interest paid |
154 |
267 |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
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RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED) |
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(U.S dollars in thousands) |
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Net income |
$3,400 |
$3,813 |
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Adjustments: |
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Share in results and sale of equity investment of affiliated companies |
(521) |
(293) |
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Provision for income taxes |
145 |
592 |
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Financial expenses, net |
(39) |
58 |
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Depreciation, amortization and other |
1,375 |
1,353 |
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Share based compensation |
493 |
222 |
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Adjusted EBITDA |
$4,853 |
$5,745 |
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SOURCE TAT Technologies Ltd
