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TAT Technologies Reports Fourth Quarter 2025 Results

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TAT Technologies Ltd 40,49 $ TAT Technologies Ltd Chart -0,32%
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CHARLOTTE, N.C., March 18, 2026 /PRNewswire/ -- TAT Technologies Ltd. (NASDAQ: TATT) (TASE: TAT Tech), a leading supplier of products and services for the commercial and military aviation industries and the ground defense industries, reported today its results for the three-month and twelve-month period ended December 31, 2025.

Financial Highlights for The Fourth Quarter and 12 Months of 2025:

  • Revenues: increased by 13.4% to $46.5 million compared to $41.0 million for the fourth quarter of 2024. For the twelve months of 2025, revenues increased by 17.0% to $178.0 million compared to $152.1 million for the same period in 2024.
  • Gross Profit: increased by 23.6% to $11.7 million (25.2% of revenues) compared to $9.5 million (23.1% of revenues) for the fourth quarter of 2024. For the twelve months of 2025, gross profit increased by 33.6% to $44.1 million (24.8% of revenues) compared to $33.0 million (21.7% of revenues) for the same period in 2024.
  • Operating Income: increased by 20.2% to $4.9 million (10.6% of revenues) compared to $4.1 million (10.0% of revenues) for the fourth quarter of 2024. For the twelve months of 2025, operating income increased by 50.5% to $18.8 million (10.6% of revenues) compared to $12.5 million (8.2% of revenues) for the same period in 2024.
  • Net Income: increased by 32.2% to $4.7 million compared to $3.6 million for the fourth quarter of 2024. For the twelve months of 2025, net income increased by 50.6% to $16.8 million compared to $11.2 million for the same period in 2024.
  • Adjusted EBITDA: increased by 24.0% to $6.9 million (14.8% of revenues) compared to $5.5 million (13.5% of revenues) for the fourth quarter of 2024. Adjusted EBITDA for the twelve months of 2025 increased by 36.7% to $25.5 million (14.3% of revenues) compared to $18.6 million (12.2% of revenues) for the same period in 2024.
  • Cash flow provided from operating activities for the three and twelve months ended December 31, 2025, was $5.6 million and $15.0 million, respectively, compared to cash flows used in operating activities of ($1.0) million and $(5.8) million for the three and twelve months ended December 31, 2024, respectively.

Mr. Igal Zamir, TAT's CEO and President, commented: "We are very pleased with the results for the full year of 2025 and the fourth quarter of 2025. TAT delivered record results marking 2025 as our third consecutive year of growth and improvement across all key financial metrics.

For the full year of 2025 we achieved record revenue of $178 million and margin expansion in all profitability parameters including a record high EBITDA margin. We demonstrated capabilities to grow organically at a rapid pace within our industry while improving margins quarter after quarter.

Fourth-quarter revenue followed a seasonal trajectory, resulting in a stabilization of pace compared to earlier periods. Nevertheless, we achieved organic growth of over 13%, a rate that outperforms broader industry organic growth."

Mr. Zamir added: "We ended the year with a backlog and long-term agreements value of approximately $550 million, up from $429 million entering 2025, providing strong revenue visibility and supporting our objective for continued growth through 2026. With sustained demand across the aviation MRO market, we remain focused on executing our strategy, expanding our capabilities, and pursuing M&A opportunities that strengthen our position in thermal management and power systems".

Investor Call Information

TAT Technologies will host an earnings webcast to review the quarterly and annual results on Thursday, March 19, 2026, at 8 a.m. ET. Interested investors can register for the webcast at the link below or visit the investor relations section of the Company's website at https://tat-technologies.com/investors/.  

Conference call

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.

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.

Contact:
Mr. Eran Yunger
Director of IR
erany@tat-technologies.com

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, 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.

 

 

TAT TECHNOLOGIES LTD
CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands




December 31,



2025
2024






ASSETS










CURRENT ASSETS:




   Cash and cash equivalents

$51,259
$7,129
   Accounts receivable, net of allowance for credit losses of $172
   and $400 thousands as of December 31, 2025 and 2024, respectively


33,420
29,697
   Inventory

75,549
68,540
   Prepaid expenses and other current assets

6,071
7,848






   Total current assets

166,299
113,214






NON-CURRENT ASSETS:




     Property, plant and equipment, net

46,922
41,576
   Operating lease right of use assets

5,807
2,282
   Intangible assets, net

1,452
1,553
   Investment in affiliates

4,905
2,901
   Restricted deposit

307
305
   Funds in respect of employee rights upon retirement

398
654
   Deferred tax assets

639
877






    Total non-current assets

60,430
50,148






   Total assets

$226,729
$163,362

 

 







TAT TECHNOLOGIES LTD.
CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands




December 31



2025
2024






LIABILITIES AND SHAREHOLDERS 'EQUITY










CURRENT LIABILITIES:




  Current maturities of long-term loans

$2,227
$2,083
  Short term loans

-
4,350
   Accounts payable

12,986
12,158
   Accrued expenses and other

17,296
18,594
   Current maturities of operating lease liabilities

1,474
939






   Total current liabilities

33,983
38,124






NON-CURRENT LIABILITIES:




   Long-term loans

9,485
10,938
   Operating lease liabilities

4,448
1,345
   Liability in respect of employee rights upon retirement

770
986
   Deferred tax liabilities

1,652
-






   Total non-current liabilities

16,355
13,269












COMMITMENTS AND CONTINGENCIES (NOTE 11)










Total liabilities

50,338
51,393






SHAREHOLDERS 'EQUITY:




Ordinary shares of NIS 0 par value. Authorized: 19,000,000 shares at
December 31, 2025 and 13,000,000 shares at December 31, 2024

Issued:13,257,610 and 11,214,831 shares at December 31, 2025 and 2024,
     respectively

Outstanding: 12,983,137 and 10,940,358 shares at December 31, 2025
     and 2024, respectively



-
-
Additional paid-in capital

136,578
89,697
Treasury shares, at cost, 274,473 shares at December 31, 2025 and 2024

(2,088)
(2,088)
Accumulated other comprehensive income (loss)

643
(76)
Retained earnings

41,258
24,436






Total shareholders' equity

176,391
111,969






Total liabilities and shareholders' equity

$226,729
$163,362

 

 

 

TAT TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S dollars in thousands


Three Months Ended

December 31


 

Year ended December 31,


2025
2024
2025
2024
















Revenues:






Products $13,046
$11,879
$50,850
$47,710
Services 33,488
29,165
127,165
104,406

46,534
41,044
178,015
152,116








Cost of revenue:






Products 9,180
8,792
35,793
33,986
Services 25,636
22,769
98,124
85,116

34,816
31,561
133,917
119,102
Gross profit 11,718
9,483
44,098
33,014








Operating expenses:






Research and development, net 497
302
1,384
1,248
Selling and marketing 2,470
2,099
8,576
7,746
General and administrative 4,208
2,961
15,730
11,901
Other (income) expense (404)
7
(404)
(383)

6,771
5,369
25,286
20,512
Operating income 4,947
4,114
18,812
12,502








Interest expenses 175
289
1,010
1,472
Other financial expenses, net 32
169
325
477
Income before taxes on income 4,740
3,656
17,477
10,553








Provision for taxes on income 519
289
2,143
195
Income before share of equity investment 4,221
3,367
15,334
10,358








Share in profits of equity investment of
     affiliated companies
505
 

208


1,488
809
Net income $4,726
$3,575
$16,822
$11,167

 

 

 

TAT TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S dollars in thousands


Three Months Ended

December 31


 

Year ended December 31,


2025
2024
2025
2024








Net income $4,726
$3,575
$16,822
$11,167








Earnings per share






Basic $0.36
$0.33
$1.39
$1.08
Diluted $0.36
$0.32
$1.37
$1.00








Weighted average number of shares
     outstanding

 








Basic 12,959,476
10,887,540
12,075,678
10,363,978
Diluted 13,093,285
11,707,622
12,283,312
11,215,827








 

 

TAT TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
U.S dollars in thousands


Three Months Ended

December 31,


 

Year ended December 31,


2025
2024
2025
2024








Net income $4,726
$3,575
$16,822
$11,167
Other comprehensive income (loss), net:






Net unrealized losses from derivatives -
-
-
(27)
Change in foreign currency translation adjustments 144
(197)
719
(76)
        Total comprehensive income $4,870
$3,378
$17,541
$11,064








 

 



Ordinary shares


Accumulated







Number of
shares issued

Amount
Additional paid-in capital
other
comprehensive
income (loss)

Treasury shares
Retained earnings
Total
shareholders' equity
BALANCE AT DECEMBER 31, 2022
9,186,019
$2,842
$66,245
$(26)
$(2,088)
$8,597
$75,570
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2023:













Comprehensive income
-
-
-
53
-
4,672
4,725
Exercise of options
32,466
8
157
-
-
-
165
Issuance of common shares net of issuance costs of $141 thousands
1,158,600
290
9,774
-
-
-
10,064
Share based compensation
-
-
159
-
-
-
159
BALANCE AT DECEMBER 31, 2023
10,377,085
3,140
76,335
27
(2,088)
13,269
90,683
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2024:













Comprehensive income (loss)
-
-
-
(103)
-
11,167
11,064
Exercise of options
164,406
12
(12)
-
-
-
-
Cancel of shares par value
-
(3,152)
3,152
-
-
-
-
Issuance of common shares net of issuance costs of $162 thousands
673,340
-
9,827
-
-
-
9,827
Share based compensation
-
-
395
-
-
-
395
BALANCE AT DECEMBER 31, 2024
11,214,831
-
89,697
(76)
(2,088)
24,436
111,969
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2025:













Comprehensive income
-
-
-
719
-
16,822
17,541
Exercise of options
175,481
-
282
-
-
-
282
Issuance of common shares on public offering, net of issuance costs of $2,769 thousands
1,625,000
-
39,415
-
-
-
39,415
Exercise of the underwriters' option on public offering, net of issuance costs of $413 thousands
242,298
-
5,953
-
-
-
5,953
Share based compensation
-
-
1,231
-
-
-
1,231
BALANCE AT DECEMBER 31, 2025
13,257,610
$-
$136,578
$643
$(2,088)
$41,258
$176,391
















 

 

 


TAT TECHNOLOGIES LTD. 
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands



Three Months Ended

December 31,


Year ended
 December 31,


2025
2024
2025
2024









CASH FLOWS FROM OPERATING ACTIVITIES:







Net income
$4,726
$3,575
$16,822
$11,167









Adjustments to reconcile net income to net cash provided by (used in) operating activities:







Depreciation and amortization
1,339
1,136
5,101
5,455
Loss (gain) from change in fair value of derivatives
-
22
-
22
Net change in operating right of use asset and operating lease liability
 

112


 

18


112
18
Noncash financial expenses (income)
1,247
79
1,881
(187)
Decrease in restructuring plan provision
-
(63)
-
(63)
Change in allowance for credit losses
(149)
55
(228)
55
Share in results of affiliated companies
(505)
(208)
(1,488)
(809)
Share based compensation
551
185
1,231
395
Capital gains from sale of property, plant and equipment
(401)
(123)
(401)
(478)
Deferred income taxes, net
424
208
1,890
117
Changes in operating assets and liabilities:







    Decrease (increase) in trade accounts receivable
59
(37)
(3,495)
(9,743)
Decrease (increase) in other current assets and prepaid expenses
394
(625)
2,235
(1,463)
    Decrease (increase) in inventory
1,520
(6,510)
(7,532)
(17,165)
    Increase (decrease) in trade accounts payable
(4,381)
(746)
359
2,170
    Increase (decrease) in accrued expenses and other
629
2,073
(1,513)
4,691
Net cash provided by (used in) operating activities
5,565
(961)
14,974
(5,818)









CASH FLOWS FROM INVESTING ACTIVITIES:







Proceeds from sale of property, plant and equipment
900
-
900
1,275
Purchase of property, plant and equipment
(2,044)
(1,569)
(10,954)
(5,126)
Net cash used in investing activities
(1,144)
(1,569)
(10,054)
(3,851)

 

 

 

TAT TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands



Three Months Ended

December 31,


Year ended
 December 31,


2025
2024
2025
2024









CASH FLOWS FROM FINANCING ACTIVITIES:







 Repayments of long-term loans
$(528)
$(562)
$(2,088)
$(2,016)
Net change in short term loans
-
1,754
(4,350)
(7,650)
Proceeds from issuance of ordinary shares and exercise of underwriters' option
 

-


 

-


48,550
9,827
Issuance costs of ordinary shares and exercise of the underwriters' option
 

-


 

(96)


(3,182)
-
Proceeds from exercise of options
282
-
282
-
Net cash provided by (used in) financing activities
(246)
1,096
39,212
161


















Net increase (decrease) in cash and cash equivalents and restricted cash
 

4,175


 

(1,434)


44,132
(9,508)
Cash and cash equivalents and restricted cash at

beginning of period 


 

47,391


 

8,868


7,434
16,942
Cash and cash equivalents and restricted cash at end of period
 

$51,566


 

$7,434


$51,566
$7,434









Supplementary information on investing and financing activities not involving cash flows:







Additions of operating lease right-of-use assets and operating lease liabilities
 

104


 

165


3,859
983
Reclassification of inventory to property, plant and equipment
 

-


 

95


579
155









Supplemental disclosure of cash flow information:







Interest paid
55
111
1,001
1,400









 

 

TAT TECHNOLOGIES LTD.

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED)
U.S. dollars in thousands


Three Months Ended

December 31,


Year ended December 31,

2025
2024
2025
2024
















Net income $4,726
$3,575
$16,822
$11,167
Adjustments:






Share in results and sale of equity investment of affiliated companies (505)
(208)
(1,488)
(809)
Provision for income taxes 519
289
2,143
195
Financial expenses, net 207
458
1,335
1,949
Depreciation and amortization 1,385
1,254
5,410
5,717
Share based compensation 551
185
1,231
395
Adjusted EBITDA  

$6,883


 

$5,553


$25,453
$18,614








 

 

 

 

 

Cision View original content:https://www.prnewswire.com/news-releases/tat-technologies-reports-fourth-quarter-2025-results-302717996.html

SOURCE TAT Technologies Ltd


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