TAT Technologies Reports Record Second Quarter 2026 Results

TAT Technologies Reports Record Second Quarter 2026 Results

PR Newswire

CHARLOTTE, N.C., Aug. 5, 2026

Revenue Increases 22.8% as Demand Remains Strong and Supply Chain Conditions Ease; Backlog and Long-Term Agreements Reach Record $615 Million CHARLOTTE, N.C., Aug. 5, 2026 /PRNewswire/ -- TAT Technologies Ltd. (NASDAQ: TATT) (TASE: TAT Tech), a leading supplier of products and services for the commercial and military aerospace and ground defense industries, today reported financial results for the second quarter ended June 30, 2026.

Financial highlights: Revenues were $52.9 million, a 22.8% increase compared to $43.1 million in the second quarter of 2025. For the first half of 2026, revenues increased by 10.4% to $94.1 million compared to $85.2 million in the first half of 2025.Gross profit increased by 23.0% to $13.3 million, representing 25.2% of revenues, compared to $10.8 million (25.1% of revenues) in the second quarter of 2025. For the first half of 2026, gross profit increased by 12.4% to $23.4 million compared to $20.8 million in the first half of 2025 (24.8% of revenues in the first half of 2026 compared to 24.4% of revenues in the first half of 2025).Operating Income increased by 26.8% to $5.6 million (10.6% of revenues) compared to $4.4 million (10.3% of revenues) for Q2 2025. For the first half of 2026, operating income was $8.6 million (9.1% of revenues) compared to $8.6 million (10.1% of revenues) in the first half of 2025Net Income of $8.1 million (Diluted EPS of $0.61) compared to $3.4 million for Q2 2025 (Diluted EPS of $0.3). The second quarter of 2026 included a $4.3 million (Diluted EPS of $0.26) net of tax, non-operating gain from the sale of a minority interest in an unconsolidated entity. Excluding the non-recurring benefit, net income would have been $4.66 million, an increase of 35.2% compared to the previous period (and Adjusted Diluted EPS of $0.35). For the first six months of the year, net profit was $11.5 (Diluted EPS of $0.87) million. Excluding the one-time net impact of the minority interest sale, net profit for the first six months was $8.06 million, an increase of 11.0% compared to $7.3 million in the previous period.Adjusted EBITDA was $7.4 million (14.0% of revenues), a 22.7% increase from $6.1 million (14.0% of revenues) for Q2 2025. Adjusted EBITDA for the first half of 2026 increased by 4.1% to $12.3 million (13.1% of revenues) compared to $11.8 million (13.8% of revenues) in the first half of 2025.Cash flow used in operations for the second quarter was $(0.6) million compared to $6.9 million provided by operations in Q2 2025. Cash flow from operations was $1.4 million in the first half of 2026 compared to $1.9 million in the first half of 2025.Backlog and Long-Term Agreements: approximately $615 million as of June 30, 2026, up from approximately $580 million on March 31, 2026, reflecting continued strong customer demand and providing multi-year revenue visibility."Continued strong demand and solid execution drove nearly 23% revenue growth and continued profitability improvements," said Igal Zamir, TAT's CEO and President. "This performance reflects our strategic position in the market, targeting high-demand services backed by established and solid relationships with OEMs. In part, improving supply chain conditions enabled us to convert previously constrained customer demand into revenue in the quarter, further enhancing results. Demand across our end markets remains robust and customer loyalty remained strong despite the supply chain shortages, driving backlog and long-term agreements to the highest in company history. Although supply chain conditions have not fully normalized, we remain focused on securing the components our customers need, reinforcing our position as a trusted aftermarket partner and supporting long-term profitable growth.""We have expanded our strategic relationship with Honeywell Aerospace" Zamir continued. "We became the sole authorized distributor(*) of spare parts for the 331-200 auxiliary power unit platform (APU), extended our MRO license through 2036, and acquired three Honeywell Aerospace 131-9A APUs to expand our leasing business. These agreements strengthen our position in the APU aftermarket and ensure that we will continue to be a valued partner for Honeywell for a long time to come.""We believe the combination of historically high customer demand, expanding platform coverage, and a record backlog, combined with improving supply chain conditions, positions TAT well for continued profitable growth," Concluded Zamir.(*) As previously disclosed in the Company's Report on Form 6-K filed on July 14, 2026.Investor Call InformationTAT Technologies will host an earnings webcast and conference call today, August 5, 2026, at 8:00 a.m. Eastern Time to discuss second quarter results. Investors may register using the link below or by visiting the Company's website.Webcast Registration: https://us06web.zoom.us/webinar/register/WN_MRtan_3wQoG9XfDYLkuNeAInvestor Relations Website: https://tat-technologies.com/investors/Non-GAAP Financial MeasuresTo supplement its GAAP results, the Company presents Adjusted EBITDA to provide investors with additional insight into underlying operating performance. Adjusted EBITDA excludes the Company's share in results of affiliated companies, share-based compensation, income taxes, net financial (expenses) income, and depreciation and amortization. Adjusted EBITDA 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.About TAT TechnologiesTAT 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 APU's, 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 StatementsThis press release 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 operating results, demand conditions, supply chain conditions, customer relationships, backlog conversion, market position, and growth prospects. 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 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, the war and hostilities between Israel and Hamas, Hezbollah and Iran, regional shipping disruptions and other risks detailed from time to time in the Company's filings with the Securities and 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. The Company undertakes no obligation to update publicly or revise any forward-looking statement.Contact:Eran YungerDirector of IRTel: +1-980-451-1115erany@tat-technologies.comUNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTSTAT TECHNOLOGIES LTD. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS U.S dollars in thousandsJune 30,December 31,20262025ASSETSCURRENT ASSETS:Cash and cash equivalents$54,629$51,259Accounts receivable, net of allowance for credit losses of $228 and $172 as of June 30, 2026, and December 31, 2025, respectively 38,81333,420Inventory85,18975,549Prepaid expenses and other current assets7,0416,071Total current assets185,672166,299NON-CURRENT ASSETS:Property, plant and equipment, net47,00146,922Operating lease right of use assets5,2855,807Intangible assets, net1,8841,452Investment in affiliates5,7264,905Funds in respect of employee rights upon retirement446398Deferred tax assets573639Restricted deposit-307Total non-current assets60,91560,430Total assets$246,587$226,729TAT TECHNOLOGIES LTD. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS U.S dollars in thousandsJune 30, December 31,20262025LIABILITIES AND SHAREHOLDERS' EQUITYCURRENT LIABILITIES:Current maturities of long-term debts$164$2,227Accounts payable18,53112,986Accrued expenses and other current liabilities 18,30917,296Current maturities of operating lease liabilities1,4591,474Total current liabilities38,46333,983NON-CURRENT LIABILITIES: Long-term debts, net 11,0189,485Operating lease liabilities 4,0324,448Liability in respect of employee rights upon retirement 853770Deferred tax liabilities3,2861,652 Total non-current liabilities19,18916,355COMMITMENTS AND CONTINGENCIES (NOTE 7) --Total liabilities57,65250,338SHAREHOLDERS' EQUITY:Ordinary shares of NIS 0 par valueAuthorized: 19,000,000 shares at June 30, 2026, and at December 31, 2025 Issued:13,272,610 shares at June 30, 2026, and 13,257,610 shares at December 31, 2025 Outstanding: 12,998,137 shares at June 30, 2026, and 12,983,137 shares at December 31, 2025--Additional paid-in capital 137,567136,578Treasury stock at cost(2,088)(2,088)Accumulated other comprehensive income727643Retained earnings52,72941,258Total shareholders' equity188,935176,391Total liabilities and shareholders' equity$246,587$226,729TAT TECHNOLOGIES LTD. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOMEU.S dollars in thousandsThree Months Ended June 30,Six Months Ended June 30, 2026202520262025Revenues:Products$15,329$12,463$29,235$25,187Services37,60930,64164,85060,05952,93843,10494,08585,246Costs:Products10,7759,11220,87417,443Services28,84323,16749,86047,02439,61832,27970,73464,467Gross profit13,32010,82523,35120,779Operating expenses:Research and development, net5352401,106564Selling and marketing2,5302,1854,7124,113General and administrative4,6323,9658,9257,4977,6976,39014,74312,174Operating income 5,6234,4358,6088,605Gain on sale of equity investment4,324-4,324-Interest expenses(182)(324)(330)(659)Other financial expenses, net(368)(776)(181)(499)Income before taxes on income 9,3973,33512,4217,447Provision for income taxes 1,9112112,056803Income before share of equity investment7,4863,12410,3656,644Share in profits of equity investment of affiliated companies5853181,106611Net income $8,071$3,442$11,471$7,255TAT TECHNOLOGIES LTD.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME U.S dollars in thousands, except share and per share data Three Months Ended June 30,Six Months Ended June 30,2026202520262025Earnings per share Basic $0.62$ 0.30$0.88$ 0.65Diluted $0.61$ 0.30$0.87$ 0.64Weighted average number of sharesoutstandingBasic12,987,47111,447,98612,985,31611,196,992Diluted13,131,61011,666,30913,164,16811,409,488TAT TECHNOLOGIES LTD. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME U.S dollars in thousandsThree Months Ended June 30,Six Months EndedJune 30,2026202520262025Net income $8,071$3,442$11,471$7,255Other comprehensive income (loss), net:Change in foreign currency translation adjustments(100)14891676Net unrealized losses from derivatives(7)-(7)- Total comprehensive income $7,964$3,590$11,555$7,931TAT TECHNOLOGIES LTD. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY U.S dollars in thousands, except share data Share capital Accumulated Number of shares issued AmountAdditional paid-in capitalother comprehensive income Treasury sharesRetained earnings Total equity BALANCE AT MARCH 31, 202511,214,831$-$89,919$452$(2,088)$28,249$116,532CHANGES DURING THE THREE MONTHS ENDED JUNE 30, 2025:Comprehensive income---148-3,4423,590Exercise of stock option79,633------Issuance of common shares on public offering, net of issuance costs of $2,7691,625,000-39,415---39,415Exercise of the underwriters' option on public offering, net of issuancecosts of $413242,298-5,953---5,953Share based compensation --291---291BALANCE AT JUNE 30, 2025 13,161,762$ -$135,578$600$(2,088)$31,691$165,781BALANCE AT MARCH 31, 202613,257,610$-$137,071$834$(2,088)$44,658$180,475CHANGES DURING THE THREE MONTHS ENDED JUNE 30, 2026:Comprehensive income---(107)-8,0717,964Exercise of stock option15,000-136---136Share based compensation--360---360BALANCE AT JUNE 30, 202613,272,610$-$137,567$727$(2,088)$52,729$188,935TAT TECHNOLOGIES LTD. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY U.S dollars in thousands, except share data Share capital Accumulated Number of shares issued AmountAdditional paid-in capitalother comprehensive income (loss)Treasury sharesRetained earnings Total equity BALANCE AT DECEMBER 31, 2024 11,214,831$-$89,697$(76)$(2,088)$24,436$111,969CHANGES DURING THE SIX MONTHS ENDED JUNE 30, 2025:Comprehensive income---676-7,2557,931Exercise of option79,633------Issuance of common shares on public offering, net of issuance costs of $2,7691,625,000-39,415---39,415Exercise of the underwriters' option on public offering, net of issuancecosts of $413242,298-5,953---5,953Share based compensation --513---513BALANCE AT JUNE 30, 202513,161,762$-$135,578$600$(2,088)$31,691$165,781BALANCE AT DECEMBER 31, 202513,257,610$-$136,578$643$(2,088)$41,258$176,391CHANGES DURING THE SIX MONTHS ENDED JUNE 30, 2026:Comprehensive income---84-11,47111,555Exercise of option15,000-136---136Share based compensation--853---853BALANCE AT JUNE 30, 202613,272,610$-$137,567$727$(2,088)$52,729$188,935TAT TECHNOLOGIES LTD. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousandsThree Months Ended June 30,Six Months EndedJune 30,2026202520262025CASH FLOWS FROM OPERATING ACTIVITIES:Net income $8,071$3,442$11,471$7,255Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization1,3911,2082,7042,513Non-cash financial expenses21600352508Gain on sale of equity investment (Note 4)(4,324)-(4,324)-Change in allowance for credit losses(14)755525Share in profits of equity investment of affiliated companies(585)(318)(1,106)(611)Share based compensation 360291853513Deferred income taxes, net 1,615631,700582Changes in operating assets and liabilities:Decrease (increase) in trade accounts receivable(8,342)882(5,448)(2,594)Increase in inventory(3,453)(3,434)(9,883)(7,295)Decrease (increase) in prepaid expenses and other current assets1,4451,697(812)1,183Increase in trade accounts payable2,4032,9724,8743,406Increase (decrease) in accrued expenses and other current liabilities850(529)952(3,571)Net cash provided by (used in) operating activities (562)6,9491,3881,914CASH FLOWS FROM INVESTING ACTIVITIES:Proceeds from sale of equity investment4,493-4,493-Purchase of property and equipment(1,139)(3,305)(2,559)(6,167)Net cash provided by (used in) investing activities3,354(3,305)1,934(6,167)CASH FLOWS FROM FINANCING ACTIVITIES:Repayment of short-term debts -(10,719)-(4,350)Repayments of long-term debts(10,721)(516)(11,272)(1,087)Proceeds from issuance of ordinary shares and exercise of the underwriters' option -48,550-48,550Issuance costs of ordinary shares and exercise of the underwriters' option-(2,820)-(2,820)Proceeds from long term debt, net10,877-10,877-Proceeds from exercise of options136-136-Net cash provided by (used in) financing activities 29234,495(259)40,293Net increase in cash and cash equivalents and restricted cash3,08438,1393,06336,040Cash and cash equivalents and restricted cash at beginning of period51,5455,33551,5667,434Cash and cash equivalents and restricted cash at the end of period$54,629$43,474$54,629$43,474Supplementary information on investing and financing activities not involving cash flows: Additions of operating lease right-of-use assets and operating lease liabilities$217$1,688$299$1,835 Reclassification between inventory and property, plant and equipment---579 Unpaid issuance costs on long term debt and issuance of shares152362152362 Unpaid addition to property and equipment and intangible assets1,1409511,140951Supplemental disclosure of cash flow information: Interest paid154249303516 Taxes paid79176192195 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED)TAT TECHNOLOGIES LTD. RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED)U.S dollars in thousandsThree months endedSix months endedJune 30,June 30,2026202520262025Net income $8,071$3,442$11,471$7,255Adjustments:Share in profits of equity investment of affiliated companies(585)(318)(1,106)(611)Provision for income taxes1,9112112,056803Interest expenses182324330659Gain on sale of equity investment(4,324)-(4,324)-Other financial expenses, net368776181499Depreciation, amortization and others1,4451,3282,8202,691Share based compensation360291853513Adjusted EBITDA$7,428$6,054$12,281$11,809TAT TECHNOLOGIES LTD. ADJUSTED NET INCOME ATTRIBUTABLE TO TAT TECHNOLOGIES LTD. (UNAUDITED)U.S. dollars in thousandsThree months endedSix months endedJune 30,June 30,2026202520262025Net income $8,071$3,442$11,471$7,255Adjustments:Gain on sale of equity investment(4,324)-(4,324)-Income tax impact908-908-Adjusted net income$4,655$3,442$8,055$7,255Earnings per shareBasic $0.62$ 0.30$0.88$ 0.65Diluted$0.61$ 0.30$0.87$ 0.64Adjusted earnings per share Basic$0.36$ 0.30$0.62$ 0.65Diluted$0.35$ 0.30$0.61$ 0.64