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 STATEMENTSTAT TECHNOLOGIES LTD. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETSU.S dollars in thousands September 30, December 31, 2025 2024ASSETSCURRENT ASSETS:Cash and cash equivalents $47,094 $7,129Accounts receivable, net of allowance for credit losses of $321 33,330 29,697and $400 as of September 30, 2025, and December 31, 2024, respectivelyInventory 78,171 68,540Prepaid expenses and other current assets 6,301 7,848Total current assets 164,896 113,214NON-CURRENT ASSETS:Property, plant and equipment, net 46,172 41,576Operating lease right of use assets 5,363 2,282Intangible assets, net 1,528 1,553Investment in affiliates 4,460 2,901Funds in respect of employee rights upon retirement 736 654Deferred income taxes 683 877Restricted deposit 297 305Total non-current assets 59,239 50,148Total assets $224,135 $163,362LIABILITIES AND SHAREHOLDERS' EQUITYCURRENT LIABILITIES:Current maturities of long-term loans $2,151 $2,083Short-term loans – 4,350Accounts payable 16,898 12,158Accrued expenses and other 16,709 18,594Current maturities of operating lease liabilities 1,358 939Total current liabilities 37,116 38,124NON-CURRENT LIABILITIES:Long-term loans 9,884 10,938Liability in respect of employee rights upon retirement 1,109 986Deferred tax liabilities 1,272 -Operating lease liabilities 4,066 1,345Total non-current liabilities 16,331 13,269COMMITMENTS AND CONTINGENCIES (NOTE 4) – -Total liabilities 53,447 51,393
TAT TECHNOLOGIES LTD. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETSU.S dollars in thousandsSHAREHOLDERS' EQUITY:Ordinary shares of NIS 0 par value at September 30, 2025 and at – -December 31, 2024, respectivelyAuthorized: 15,000,000 shares at September 30, 2025 and13,000,000 at December 31, 2024; Issued: 13,225,110 and11,214,831 shares at September 30, 2025 and at December 31,2024, respectively; Outstanding: 12,950,637 and 10,940,358shares at September 30, 2025 and at December 31, 2024,respectivelyAdditional paid-in capital 135,745 89,697Treasury stock at cost (2,088) (2,088)Accumulated other comprehensive income (loss) 499 (76)Retained earnings 36,532 24,436Total shareholders' equity 170,688 111,969Total liabilities and shareholders' equity $224,135 $ 163,362
TAT TECHNOLOGIES LTD. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOMEU.S dollars in thousands Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024Revenues:Products $12,617 $12,164 $37,804 $35,831Services 33,618 28,295 93,677 75,241 46,235 40,459 131,481 111,072Cost of goods:Products 9,170 8,535 26,613 25,194Services 25,464 23,443 72,488 62,347 34,634 31,978 99,101 87,541Gross profit 11,601 8,481 32,380 23,531Operating expenses:Research and development, net 323 326 887 946Selling and marketing 1,993 1,994 6,106 5,647General and administrative 4,025 2,715 11,522 8,940Other income – – – (390) 6,341 5,035 18,515 15,143Operating income 5,260 3,446 13,865 8,388Interest 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 6,897Provision for taxes on income (taxes benefit) 821 15 1,624 (94)Profit before share of equity investment 4,469 2,696 11,113 6,991Share in profits of equity investment of affiliated companies 372 169 983 601Net income $4,841 $2,865 $12,096 $7,592
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOMEU.S dollars in thousands, except share and per share dataEarnings per shareBasic $ 0.37 $ 0.27 $ 1.03 $ 0.73Diluted $ 0.37 $ 0.26 $1.02 $ 0.69Weighted average number of shares outstandingBasic 12,911,050 10,609,867 11,776,747 10,462,012Diluted 13,078,467 10,829,749 11,904,044 11,055,263
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEU.S dollars in thousands Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024Net income $4,841 $2,865 $12,096 $ 7,592Other comprehensive income (loss), netNet unrealized losses from derivatives – – – (27)Change in foreign currency translation adjustments (102) (43) 575 121Total comprehensive income $4,739 $2,822 $12,671 $7,686
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITYU.S dollars in thousands, except share data Share capital Accumulated Number of shares issued Amount Additional paid-in capital other comprehensive income (loss) Treasury shares Retained earnings Total equityBALANCE AT DECEMBER 31, 2023 10,377,085 $3,140 $76,335 $ 27 $(2,088) $13,269 $90,683CHANGES DURING THE NINE MONTHS ENDED SEPTEMBER30, 2024:Comprehensive income – – – 94 – 7,592 7,686Exercise 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 673,340 – 9,923 – – – 9,923$152Share based compensation – – 210 – – – 210BALANCE AT SEPTEMBER 30, 2024 11,134,431 – 89,608 121 (2,088) 20,861 108,502BALANCE AT DECEMBER 31, 2024 11,214,831 – 89,697 (76) (2,088) 24,436 111,969CHANGES DURING THE NINE MONTHS ENDED SEPTEMBER30, 2025:Comprehensive income – – – 575 – 12,096 12,671Exercise of option 142,981 – – – – – -Issuance of common shares on public offering, net of issuance costs of 1,625,000 – 39,415 – – – 39,415$2,769Exercise of the underwriters' option on public offering, net of issuance 242,298 – 5,953 – – – 5,953costs of $413Share based compensation – – 680 – – – 680BALANCE AT SEPTEMBER 30, 2025 13,225,110 – $135,745 $499 $(2,088) $36,532 $170,688
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITYU.S dollars in thousands, except share data Share capital Number of Amount Additional Accumulated Treasury shares Retained Total equity shares issued paid-in other earnings capital comprehensive incomeBALANCE AT JUNE 30, 2024 10,426,194 $3,152 $76,512 $164 $(2,088) $17,996 $95,736CHANGES DURING THE THREE MONTHS ENDEDSEPTEMBER 30, 2024:Comprehensive income 34,897 – – (43) 2,865 2,822Exercise of option (3,152) 3,152 – – – -Issuance of common shares net of issuance costs of $152 673,340 – 9,923 – – – 9,923Share based compensation – 21 – – – 21BALANCE AT SEPTEMBER 30, 2024 11,134,431 – 89,608 121 (2,088) 20,861 108,502BALANCE AT JUNE 30, 2025 13,161,762 – 135,578 600 (2,088) 31,691 165,781CHANGES DURING THE THREE MONTHS ENDEDSEPTEMBER 30, 2025:Comprehensive income – – – (101) – 4,841 4,740Exercise of stock option 63,348 – – – – – -Share based compensation – – 167 – – – 167BALANCE AT SEPTEMBER 30, 2025 13,225,110 – $135,745 $499 $(2,088) $36,532 $170,688
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSU.S. dollars in thousands Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024CASH FLOWS FROM OPERATING ACTIVITIES:Net income $4,841 $2,865 $12,096 $7,592Adjustments to reconcile net income to net cash used in operating activities:Depreciation and amortization 1,249 1,514 3,762 4,319Non-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 210Gain 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 2,916Increase (decrease) in accrued expenses and other 1,806 3,665 (1,765) 2,618Net 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 – – – 1,306Net 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 9,923Issuance 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 andrestricted 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 16,942Cash and cash equivalents and restricted cash at the end of period $47,391 $ 8,868 $47,391 $ 8,868Supplementary 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 $818Reclassification between inventory and property, plant and Equipment – – 579 60Supplemental disclosure of cash flow information:Interest paid 430 437 946 1,289Income taxes paid 21 – 197 –
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP)(UNAUDITED)TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIESRECONCILIATION 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 2024Net income $4,841 $2,865 $12,096 $7,592Adjustments: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 1,491Depreciation and amortization 1,334 1,565 4,025 4,463Share based compensation 167 21 680 210Adjusted EBITDA $6,761 $5,032 $18,570 $13,061
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