NETANYA, Israel, Nov. 12, 2025 /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, reported today its unaudited results for the three-month and nine-month period ended September 30, 2025.
Financial highlights for the third quarter of 2025:
-- Revenues increased by 14.3% to $46.2 million compared to $40.5 million
for the third quarter of 2024. For the nine months of 2025 revenues
increased by 18.4% to $131.5 million compared to $111.1 million in the
nine months of 2024.
-- Gross profit increased by 36.8% to $11.6 million (25.1% of revenues)
compared to $8.5 million (21.0% of revenues) for the third quarter of
2024. For the nine months of 2025 gross profit increased by 37.6% to
$32.4 million (24.6% of revenues) compared to $23.5 million (21.2% of
revenues) in the nine months of 2024.
-- Operating Income increased by 52.6% to $5.3 million (11.4% of revenues)
compared to $3.4 million (8.5% of revenues) for the third quarter of
2024. For the nine months of 2025 operating income increased by 65.3% to
$13.9 million (10.5% of revenues) compared to $8.4 million (7.6% of
revenues) in the nine months of 2024.
-- Net Income increased by 69.0% to $4.8 million compared to $2.9 million
for the third quarter of 2024. For the nine months of 2025 net income
increased by 59.3% to $12.1 million compared to $7.6 million in the nine
months of 2024.
-- Adjusted EBITDA increased by 34.4% to $6.8 million (14.6% of revenues)
compared to $5.0 million (12.4% of revenues) for the third quarter of
2024. Adjusted EBITDA for the nine months of 2025 increased by 42.2% to
$18.6 million (14.1% of revenues) compared to $13.1 million (11.8% of
revenues) in the nine months of 2024.
-- Cash flow provided by operating activities for the three and nine months
ended September 30, 2025, was $7.5 million and $9.4 million, respectively,
compared to cash flows provided by operating activities of $2.7 million
and cash flows used in operating activities of $(4.8) million for the
three and nine months ended September 30, 2024, respectively.
Mr. Igal Zamir, TAT's CEO and President, commented: "TAT Technologies continues to deliver organic growth that exceeds the broader MRO market, reflecting the diversification and depth of our business model. Growth this quarter was broad-based, with APU activity rebounding following the softness seen earlier in the spring and incremental contributions from landing gear maintenance. We have positioned the Company as a trusted partner to carriers by addressing underserved parts of the market. Our agility and responsiveness are valued by our customers and continue to translate incremental growth opportunities."
"Our performance increasingly reflects the company's earnings power, as incremental growth is translating into meaningful operating leverage and cash flow conversion," continued Mr. Zamir. "Gross margin expanded by 410 basis points, driven by higher margin revenue streams, and disciplined operational management enabled us to grow net income by 69% and Adjusted EBITDA by 34%. Combined with improved working capital efficiency, we generated $7.5 million in cash flow from operations in the quarter, and on a year-to-date basis, $20.4 million in incremental revenue has translated to more than $14 million in incremental cash from operations."
Mr. Zamir continued, "TAT now operates from a position of strength with sustainable profitability, strong cash generation, and a balance sheet that includes more than $47 million in cash and over $94 million in working capital. With this foundation, we are beginning to actively explore accretive opportunities to compliment and expand our capabilities and scale. Organically, we are confident in our ability to sustain growth and drive continued margins expansion through 2026 and beyond."
Investor Call Information
TAT Technologies will host a webcast to review the quarterly results on Thursday, November 13, 2025, at 8:30 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.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
TAT TECHNOLOGIES LTD . AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
--------------------------------------------------------------------------
U.S dollars in thousands
September 30, December 31,
2025 2024
------------- --------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 47,094 $ 7,129
Accounts receivable, net of allowance for
credit losses of $321 and $400 as of
September 30, 2025, and December 31, 2024,
respectively 33,330 29,697
Inventory 78,171 68,540
Prepaid expenses and other current assets 6,301 7,848
Total current assets 164,896 113,214
------------- --------------
NON-CURRENT ASSETS:
Property, plant and equipment, net 46,172 41,576
Operating lease right of use assets 5,363 2,282
Intangible assets, net 1,528 1,553
Investment in affiliates 4,460 2,901
Funds in respect of employee rights upon
retirement 736 654
Deferred income taxes 683 877
Restricted deposit 297 305
Total non-current assets 59,239 50,148
------------- --------------
Total assets $ 224,135 $ 163,362
============= ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term loans $ 2,151 $ 2,083
Short-term loans - 4,350
Accounts payable 16,898 12,158
Accrued expenses and other 16,709 18,594
Current maturities of operating lease
liabilities 1,358 939
Total current liabilities 37,116 38,124
------------- --------------
NON-CURRENT LIABILITIES:
Long-term loans 9,884 10,938
Liability in respect of employee rights
upon retirement 1,109 986
Deferred tax liabilities 1,272 -
Operating lease liabilities 4,066 1,345
Total non-current liabilities 16,331 13,269
------------- --------------
COMMITMENTS AND CONTINGENCIES (NOTE 4) - -
Total liabilities 53,447 51,393
------------- --------------
TAT TECHNOLOGIES LTD. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------------
U.S dollars in thousands
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0 par value at September
30, 2025 and at December 31, 2024, respectively
Authorized: 15,000,000 shares at September 30,
2025 and 13,000,000 at December 31, 2024; Issued:
13,225,110 and 11,214,831 shares at September 30,
2025 and at December 31, 2024, respectively;
Outstanding: 12,950,637 and 10,940,358 shares at
September 30, 2025 and at December 31, 2024,
respectively - -
Additional paid-in capital 135,745 89,697
Treasury stock at cost (2,088) (2,088)
Accumulated other comprehensive income (loss) 499 (76)
Retained earnings 36,532 24,436
----------- ------------
Total shareholders' equity 170,688 111,969
Total liabilities and shareholders' equity $ 224,135 $ 163,362
=========== ============
TAT TECHNOLOGIES LTD. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
------------------------------------------------------------------------
U.S dollars in thousands
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- -------------------
2025 2024 2025 2024
--------- --------- --------- --------
Revenues:
Products $12,617 $12,164 $37,804 $35,831
Services 33,618 28,295 93,677 75,241
--------- --------- --------- --------
46,235 40,459 131,481 111,072
--------- --------- --------- --------
Cost of goods:
Products 9,170 8,535 26,613 25,194
Services 25,464 23,443 72,488 62,347
--------- --------- --------- --------
34,634 31,978 99,101 87,541
--------- --------- --------- --------
Gross profit 11,601 8,481 32,380 23,531
--------- --------- --------- --------
Operating expenses:
Research and development, net 323 326 887 946
Selling and marketing 1,993 1,994 6,106 5,647
General and administrative 4,025 2,715 11,522 8,940
Other income - - - (390)
6,341 5,035 18,515 15,143
--------- --------- --------- --------
Operating income 5,260 3,446 13,865 8,388
--------- --------- --------- --------
Interest expenses (176) (420) (835) (1,183)
Other financial income
(expenses), net 206 (315) (293) (308)
--------- --------- --------- --------
Income before taxes on income
(taxes benefit) 5,290 2,711 12,737 6,897
Provision for taxes on income
(taxes benefit) 821 15 1,624 (94)
Profit before share of equity
investment 4,469 2,696 11,113 6,991
Share in profits of equity
investment of affiliated
companies 372 169 983 601
---------
Net income $4,841 $2,865 $12,096 $7,592
TAT TECHNOLOGIES LTD . AND ITS SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
------------------------------------------------------------------------
U.S dollars in thousands, except share and per share data
Earnings per share
Basic $ 0.37 $ 0.27 $ 1.03 $ 0.73
========== ========== ========== ==========
Diluted $ 0.37 $ 0.26 $1.02 $ 0.69
========== ========== ========== ==========
Weighted average number
of shares outstanding
Basic 12,911,050 10,609,867 11,776,747 10,462,012
========== ========== ========== ==========
Diluted 13,078,467 10,829,749 11,904,044 11,055,263
========== ========== ========== ==========
TAT TECHNOLOGIES LTD . AND ITS SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
------------------------------------------------------------------------
U.S dollars in thousands
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- -------------------
2025 2024 2025 2024
--------- --------- ---------
Net income $4,841 $2,865 $12,096 $ 7,592
Other comprehensive income
(loss), net
Net unrealized losses from
derivatives - - - (27)
Change in foreign currency
translation adjustments (102) (43) 575 121
Total comprehensive
income $4,739 $2,822 $12,671 $ 7,686
========= ========= ========= ========
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
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,
202 3 10,377,085 $3,140 $76,335 $ 27 $(2,088) $13,269 $90,683
CHANGES DURING
THE NINE
MONTHS ENDED
SEPTEMBER 30,
202 4 :
Comprehensive
income - - - 94 - 7,592 7,686
Exercise of
option 84,006 12 (12) - - - -
Cancellation of
par value - (3,152) 3,152 - - - -
Issuance of
common shares
on public
offering, net
of issuance
costs of $152 673,340 - 9,923 - - - 9,923
Share based
compensation - - 210 - - - 210
---------- ------- ---------- ------------- -------- -------- ------------
BALANCE AT
SEPTEMBER 30,
20 2 4 11,134,431 - 89,608 121 (2,088) 20,861 108,502
---------- ------- ---------- ------------- -------- -------- ------------
BALANCE AT
DECEMBER 31,
202 4 11,214,831 - 89,697 (76) (2,088) 24,436 111,969
CHANGES DURING
THE NINE
MONTHS ENDED
SEPTEMBER 30,
202 5 :
Comprehensive
income - - - 575 - 12,096 12,671
Exercise of
option 142,981 - - - - - -
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 - - 680 - - - 680
---------- ------- ---------- ------------- -------- -------- ------------
BALANCE AT
SEPTEMBER 30,
202 5 13,225,110 - $135,745 $499 $(2,088) $36,532 $170,688
========== ======= ========== ============= ======== ======== ============
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
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 JUNE
30, 202 4 10,426,194 $3,152 $76,512 $164 $(2,088) $17,996 $95,736
CHANGES DURING
THE THREE
MONTHS ENDED
SEPTEMBER 30,
2024:
Comprehensive
income 34,897 - - (43) 2,865 2,822
Exercise of
option (3,152) 3,152 - - - -
Issuance of
common shares
net of
issuance costs
of $152 673,340 - 9,923 - - - 9,923
Share based
compensation - 21 - - - 21
---------- ------- ---------- ------------- -------- -------- ------------
BALANCE AT
SEPTEMBER 30,
20 2 4 11,134,431 - 89,608 121 (2,088) 20,861 108,502
BALANCE AT JUNE
30, 20 2 5 13,161,762 - 135,578 600 (2,088) 31,691 165,781
CHANGES DURING
THE THREE
MONTHS ENDED
SEPTEMBER 30,
202 5 :
Comprehensive
income - - - (101) - 4,841 4,740
Exercise of
stock option 63,348 - - - - - -
Share based
compensation - - 167 - - - 167
---------- ------- ---------- ------------- -------- -------- ------------
BALANCE AT
SEPTEMBER 30,
202 5 13,225,110 - $135,745 $499 $(2,088) $36,532 $170,688
========== ======= ========== ============= ======== ======== ============
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
------------------------------------------------------------------------
U.S. dollars in thousands
Three Months Ended Nine Months Ended
September 30, September 30,
2025 2024 2025 2024
--------- --------- -------- ---------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $4,841 $2,865 $12,096 $7,592
Adjustments to reconcile net
income to net cash used in
operating activities:
Depreciation and
amortization 1,249 1,514 3,762 4,319
Non-cash financial (income)
expenses 126 220 634 (266)
Change in allowance for
credit losses (104) (40) (79) -
Share in profits of equity
investment of affiliated
companies (372) (169) (983) (601)
Share based compensation 167 21 680 210
Gain on disposal of
property, plant and
equipment - - - (355)
Deferred income taxes, net 884 12 1,466 (91)
Changes in operating assets
and liabilities:
Increase in trade accounts
receivable (960) (3,456) (3,554) (9,706)
Decrease (increase) in
prepaid expenses and other
current assets 281 (555) 1,464 (838)
Increase in inventory (1,757) (5,112) (9,052) (10,655)
Increase in trade accounts
payable 1,334 3,825 4,740 2,916
Increase (decrease) in
accrued expenses and other 1,806 3,665 (1,765) 2,618
--------- --------- -------- ---------
Net cash provided by (used
in) operating activities 7,495 2,790 9,409 (4,857)
--------- --------- -------- ---------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchase of property and
equipment (2,743) (1,621) (8,910) (3,588)
Proceeds from sale of
property and equipment - - - 1,306
Net cash used in investing
activities (2,743) (1,621) (8,910) (2,282)
--------- --------- -------- ---------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Repayments of long-term loans (473) (504) (1,560) (1,454)
Proceeds from issuance of
ordinary shares and exercise
of underwriters' option - 9,923 48,550 9,923
Issuance costs of ordinary
shares and exercise of the
underwriters' option (362) - (3,182) -
Net change in short term
loans from banks - (10,072) (4,350) (9,404)
--------- --------- -------- ---------
Net cash provided by (used
in) financing activities (835) (653) 39,458 (935)
--------- --------- -------- ---------
Net increase (decrease) in
cash and cash equivalents
and restricted cash 3,917 516 39,957 (8,074)
Cash and cash equivalents and
restricted cash at beginning
of period 43,474 8,352 7,434 16,942
--------- --------- -------- ---------
Cash and cash equivalents and
restricted cash at the end
of period $47,391 $ 8,868 $47,391 $ 8,868
========= ========= ======== =========
Supplementary information on
investing and financing
activities not involving cash
flows:
Additions of operating
lease right-of-use assets
and operating lease
liabilities 1,948 $228 3,783 $818
Reclassification between
inventory and property,
plant and Equipment - - 579 60
Supplemental disclosure of
cash flow information:
Interest paid 430 437 946 1,289
Income taxes paid 21 - 197 -
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(NON-GAAP) (UNAUDITED)
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(NON-GAAP) (UNAUDITED)
(U.S dollars in thousands)
Three months ended Nine months ended
September 30, September 30,
2025 2024 2025 2024
---------------- ------ --------- --------
Net income $4,841 $2,865 $12,096 $7,592
Adjustments:
Share in
results and
sale of
equity
investment of
affiliated
companies (372) (169) (983) (601)
Taxes on
income (tax
benefit) 821 15 1,624 (94)
Financial
expenses,
net (30) 735 1,128 1,491
Depreciation
and
amortization 1,334 1,565 4,025 4,463
Share based
compensation 167 21 680 210
---------------- ------ --------- --------
Adjusted EBITDA $6,761 $5,032 $18,570 $13,061
================ ====== ========= ========
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SOURCE TAT Technologies Ltd.
(END) Dow Jones Newswires
November 12, 2025 16:38 ET (21:38 GMT)