TAT Technologies Reports Fourth Quarter 2025 Results

About this update from Tat Technologies Ltd.

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 [email protected] 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 , 202 3 : 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 , 202 3 10,377,085 3,140 76,335 27 (2,088) 13,269 90,683 CHANGES DURING THE YEAR ENDED DECEMBER 31 , 202 4 : 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 , 202 5 : 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 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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