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 2025
-- Net 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 Information
TAT 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_3wQoG9XfDYLkuNeA
Investor Relations Website: https://tat-technologies.com/investors/
Non-GAAP Financial Measures
To 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 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 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 Statements
This 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 Yunger
Director of IR
Tel: +1-980-451-1115
erany@tat-technologies.com
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------------
U.S dollars in thousands
June 30, December 31,
2026 2025
-------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $54,629 $51,259
Accounts receivable, net of allowance for credit
losses of $228 and $172 as of June 30, 2026, and
December 31, 2025, respectively 38,813 33,420
Inventory 85,189 75,549
Prepaid expenses and other current assets 7,041 6,071
-------- ------------
Total current assets 185,672 166,299
-------- ------------
NON-CURRENT ASSETS:
Property, plant and equipment, net 47,001 46,922
Operating lease right of use assets 5,285 5,807
Intangible assets, net 1,884 1,452
Investment in affiliates 5,726 4,905
Funds in respect of employee rights upon retirement 446 398
Deferred tax assets 573 639
Restricted deposit - 307
-------- ------------
Total non-current assets 60,915 60,430
-------- ------------
Total assets $246,587 $226,729
======== ============
TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------------
U.S dollars in thousands
June 30, December 31,
2026 2025
-------- ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debts $164 $2,227
Accounts payable 18,531 12,986
Accrued expenses and other current liabilities 18,309 17,296
Current maturities of operating lease liabilities 1,459 1,474
-------- ------------
Total current liabilities 38,463 33,983
NON-CURRENT LIABILITIES:
Long-term debts, net 11,018 9,485
Operating lease liabilities 4,032 4,448
Liability in respect of employee rights upon
retirement 853 770
Deferred tax liabilities 3,286 1,652
-------- ------------
Total non-current liabilities 19,189 16,355
-------- ------------
COMMITMENTS AND CONTINGENCIES (NOTE 7) - -
-------- ------------
Total liabilities 57,652 50,338
-------- ------------
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0 par value Authorized:
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 137,567 136,578
Treasury stock at cost (2,088) (2,088)
Accumulated other comprehensive income 727 643
Retained earnings 52,729 41,258
-------- --------
Total shareholders' equity 188,935 176,391
-------- --------
Total liabilities and shareholders' equity $246,587 $226,729
======== ========
TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
------------------------------------------------------------------------
U.S dollars in thousands
Three Months Ended Six Months Ended
June 30, June 30,
2026 2025 2026 2025
--------- --------- -------- --------
Revenues:
Products $15,329 $12,463 $29,235 $25,187
Services 37,609 30,641 64,850 60,059
--------- --------- -------- --------
52,938 43,104 94,085 85,246
--------- --------- -------- --------
Costs:
Products 10,775 9,112 20,874 17,443
Services 28,843 23,167 49,860 47,024
--------- --------- -------- --------
39,618 32,279 70,734 64,467
--------- --------- -------- --------
Gross profit 13,320 10,825 23,351 20,779
--------- --------- -------- --------
Operating expenses:
Research and development, net 535 240 1,106 564
Selling and marketing 2,530 2,185 4,712 4,113
General and administrative 4,632 3,965 8,925 7,497
7,697 6,390 14,743 12,174
--------- --------- -------- --------
Operating income 5,623 4,435 8,608 8,605
--------- --------- -------- --------
Gain on sale of equity
investment 4,324 - 4,324 -
Interest expenses (182) (324) (330) (659)
Other financial expenses, net (368) (776) (181) (499)
--------- --------- -------- --------
Income before taxes on income 9,397 3,335 12,421 7,447
Provision for income taxes 1,911 211 2,056 803
Income before share of equity
investment 7,486 3,124 10,365 6,644
Share in profits of equity
investment of affiliated
companies 585 318 1,106 611
---------
Net income $8,071 $3,442 $11,471 $7,255
========= ========= ======== ========
TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
------------------------------------------------------------------------
U.S dollars in thousands, except share and per share data
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2026 2025 2026 2025
---------- ---------- ---------- ----------
Earnings per share
Basic $0.62 $ 0.30 $0.88 $ 0.65
========== ========== ========== ==========
Diluted $0.61 $ 0.30 $0.87 $ 0.64
========== ========== ========== ==========
Weighted average number
of shares outstanding
Basic 12,987,471 11,447,986 12,985,316 11,196,992
========== ========== ========== ==========
Diluted 13,131,610 11,666,309 13,164,168 11,409,488
========== ========== ========== ==========
TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
------------------------------------------------------------------------
U.S dollars in thousands
Three Months Ended Six Months Ended
June 30, June 30,
2026 2025 2026 2025
Net income $8,071 $3,442 $11,471 $7,255
Other comprehensive income
(loss), net:
Change in foreign currency
translation adjustments (100) 148 91 676
Net unrealized losses from
derivatives (7) - (7) -
Total comprehensive
income $7,964 $3,590 $11,555 $7,931
========= ========= ========= =======
TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
------------------------------------------------------------------------------------------------
U.S dollars in thousands, except share data
Share capital Accumulated
Number of Additional other
shares paid-in comprehensive Treasury Retained
issued Amount capital income shares earnings Total equity
BALANCE AT
MARCH 31,
2025 11,214,831 $- $89,919 $452 $(2,088) $28,249 $116,532
CHANGES DURING
THE THREE
MONTHS ENDED
JUNE 30,
2025:
Comprehensive
income - - - 148 - 3,442 3,590
Exercise of
stock option 79,633 - - - - - -
Issuance of
common shares
on public
offering, net
of issuance
costs of
$2,769 1,625,000 - 39,415 - - - 39,415
Exercise of the
underwriters'
option on
public
offering, net
of issuance
costs of $413 242,298 - 5,953 - - - 5,953
Share based
compensation - - 291 - - - 291
---------- ------ ---------- ------------- -------- -------- ------------
BALANCE AT JUNE
30, 2025 13,161,762 $ - $135,578 $600 $(2,088) $31,691 $165,781
========== ====== ========== ============= ======== ======== ============
BALANCE AT
MARCH 31,
2026 13,257,610 $- $137,071 $834 $(2,088) $44,658 $180,475
CHANGES DURING
THE THREE
MONTHS ENDED
JUNE 30,
2026:
Comprehensive
income - - - (107) - 8,071 7,964
Exercise of
stock option 15,000 - 136 - - - 136
Share based
compensation - - 360 - - - 360
---------- ------ ---------- ------------- -------- -------- ------------
BALANCE AT JUNE
30, 2026 13,272,610 $- $137,567 $727 $(2,088) $52,729 $188,935
========== ====== ========== ============= ======== ======== ============
TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
-----------------------------------------------------------------------------------------------
U.S dollars in thousands, except share data
Share capital Accumulated
------------------
other
Number of Additional comprehensive
shares paid-in income Treasury Retained
issued Amount capital (loss) shares earnings Total equity
---------- ------ ---------- ------------- -------- -------- ------------
BALANCE AT
DECEMBER 31,
2024 11,214,831 $- $89,697 $(76) $(2,088) $24,436 $111,969
CHANGES DURING
THE SIX MONTHS
ENDED JUNE 30,
2025:
Comprehensive
income - - - 676 - 7,255 7,931
Exercise of
option 79,633 - - - - - -
Issuance of
common shares
on public
offering, net
of issuance
costs of
$2,769 1,625,000 - 39,415 - - - 39,415
Exercise of
the
underwriters'
option on
public
offering, net
of issuance
costs of
$413 242,298 - 5,953 - - - 5,953
Share based
compensation - - 513 - - - 513
---------- ------ ---------- ------------- -------- -------- ------------
BALANCE AT
JUNE 30,
2025 13,161,762 $- $135,578 $600 $(2,088) $31,691 $165,781
========== ====== ========== ============= ======== ======== ============
BALANCE AT
DECEMBER 31,
2025 13,257,610 $- $136,578 $643 $(2,088) $41,258 $176,391
CHANGES DURING
THE SIX MONTHS
ENDED JUNE 30,
2026:
Comprehensive
income - - - 84 - 11,471 11,555
Exercise of
option 15,000 - 136 - - - 136
Share based
compensation - - 853 - - - 853
---------- ------ ---------- ------------- -------- -------- ------------
BALANCE AT
JUNE 30,
2026 13,272,610 $- $137,567 $727 $(2,088) $52,729 $188,935
========== ====== ========== ============= ======== ======== ============
TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
------------------------------------------------------------------------
U.S. dollars in thousands
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ------------------
2026 2025 2026 2025
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $8,071 $3,442 $11,471 $7,255
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 1,391 1,208 2,704 2,513
Non-cash financial expenses 21 600 352 508
Gain on sale of equity
investment (Note 4) (4,324) - (4,324) -
Change in allowance for
credit losses (14) 75 55 25
Share in profits of equity
investment of affiliated
companies (585) (318) (1,106) (611)
Share based compensation 360 291 853 513
Deferred income taxes, net 1,615 63 1,700 582
Changes 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 assets 1,445 1,697 (812) 1,183
Increase in trade accounts
payable 2,403 2,972 4,874 3,406
Increase (decrease) in
accrued expenses and other
current liabilities 850 (529) 952 (3,571)
--------- --------- --------- -------
Net cash provided by (used in)
operating activities (562) 6,949 1,388 1,914
--------- --------- --------- -------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Proceeds from sale of equity
investment 4,493 - 4,493 -
Purchase of property and
equipment (1,139) (3,305) (2,559) (6,167)
--------- --------- ---------
Net cash provided by (used in)
investing activities 3,354 (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 - 48,550
Issuance costs of ordinary
shares and exercise of the
underwriters' option - (2,820) - (2,820)
Proceeds from long term debt,
net 10,877 - 10,877 -
Proceeds from exercise of
options 136 - 136 -
Net cash provided by (used in)
financing activities 292 34,495 (259) 40,293
--------- --------- --------- -------
Net increase in cash and cash
equivalents and restricted
cash 3,084 38,139 3,063 36,040
Cash and cash equivalents and
restricted cash at beginning
of period 51,545 5,335 51,566 7,434
--------- --------- --------- -------
Cash and cash equivalents and
restricted cash at the end of
period $54,629 $43,474 $54,629 $43,474
========= ========= ========= =======
Supplementary 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 shares 152 362 152 362
Unpaid addition to property
and equipment and
intangible assets 1,140 951 1,140 951
Supplemental disclosure of
cash flow information:
Interest paid 154 249 303 516
Taxes paid 79 176 192 195
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 thousands
Three months ended Six months ended
June 30, June 30,
2026 2025 2026 2025
Net income $8,071 $3,442 $11,471 $7,255
Adjustments:
Share in profits of
equity investment of
affiliated companies (585) (318) (1,106) (611)
Provision for income
taxes 1,911 211 2,056 803
Interest expenses 182 324 330 659
Gain on sale of equity
investment (4,324) - (4,324) -
Other financial
expenses, net 368 776 181 499
Depreciation,
amortization and
others 1,445 1,328 2,820 2,691
Share based compensation 360 291 853 513
---------- -------- -------- --------
Adjusted EBITDA $7,428 $6,054 $12,281 $11,809
========== ======== ======== ========
TAT TECHNOLOGIES LTD.
ADJUSTED NET INCOME ATTRIBUTABLE TO TAT TECHNOLOGIES LTD. (UNAUDITED)
----------------------------------------------------------------------
U.S. dollars in thousands
Three months ended Six months ended
June 30, June 30,
2026 2025 2026 2025
Net income $8,071 $3,442 $11,471 $7,255
Adjustments:
Gain on sale of equity
investment (4,324) - (4,324) -
Income tax impact 908 - 908 -
Adjusted net income $4,655 $3,442 $8,055 $7,255
========== ======== ========= =======
Earnings per share
Basic $0.62 $ 0.30 $0.88 $ 0.65
Diluted $0.61 $ 0.30 $0.87 $ 0.64
Adjusted earnings per share
Basic $0.36 $ 0.30 $0.62 $ 0.65
Diluted $0.35 $ 0.30 $0.61 $ 0.64
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SOURCE TAT Technologies Ltd