CHARLOTTE, N.C., May 20, 2026 /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, today reported its unaudited results for the three-month period ended March 31, 2026.
Financial highlights for the first quarter of 2026:
- Revenues were $41.1 million; a slight decrease of 2.4% compared to $42.1 million in the first quarter of 2025, driven primarily by component part shortages and delayed deliveries from certain OEM suppliers.
- Gross profit remained stable at $10.0 million. Gross margin improved by 80 basis points to 24.4% of revenues, compared to 23.6% of revenues in the first quarter of 2025.
- Operating income was $3.0 million, a decrease from $4.2 million in the first quarter of 2025, reflecting a margin of 7.3% versus 9.9% in the first quarter of 2025.
- Net income totaled $3.4 million, a slight decrease compared to $3.8 million in the first quarter of 2025.
- Adjusted EBITDA was $4.9 million, representing 11.8% of revenues, a decrease from $5.7 million representing 13.6% of revenues in the first quarter of 2025.
- Operating cash flow for the quarter was positive $1.9 million compared to negative $(5.0) million used in operating activities in the first quarter of 2025, reflecting a significant improvement in cash generation.
Mr. Igal Zamir, TAT's CEO and President, commented: "TAT Technologies entered 2026 with a robust operational foundation, and the record customer demand in the first quarter reinforced our confidence in the trajectory we are on. Demand for our services has never been stronger, and the value of our long-term agreements and backlog reached an all-time high, growing to approximately $580 million at the end of Q1, reflecting new contract wins and exceptionally strong customer intake across all four of our service lines."
As opposed to this strong momentum entering the year, and as previously communicated, we experienced some supply chain disruptions that affected the results of the first quarter. These distruptions were triggered by certain OEM suppliers, leading to delays in finish goods and deliveries. Primarily as a result of these delays, our revenue slightly declined YoY, not fully utilizing our growing backlog. We expect this obstacle to be resolved in the next few months, allowing TAT the continued growth trajectory we started last year.
"As we look ahead through the rest of 2026, we are confident in the fundamentals of the business. Demand is at an all-time high and our record backlog provides strong revenue expectations. Subject to the anticipated resolution of our recent supply chain disruptions, we expect our growth trajectory will resume in the second quarter and the second half of the year, driven primarily by stronger demand and record backlog. We remain well-positioned to deliver growth and long-term value for our shareholders," concluded Mr. Zamir.
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.
Investor Call Information
TAT Technologies will host an earnings webcast and conference call today, May 20, 2026, at 8:00 a.m. Eastern Time to discuss first quarter results. Investors may register using the link below or by visiting the Company's website.
Webcast Registration: Here
Investor Relations Website: https://tat-technologies.com/investors/
Contact:
Mr. Eran Yunger
Director of IR
erany@tat-technologies.com
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.
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 (including the risk that recent delivery delays and part shortages are not resolved in a timely manner), our ability to successfully identify, execute, and integrate potential merger and acquisition transactions 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
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands
Exhibit 99.1
March 31, December 31,
2026 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $51,235 $51,259
Accounts receivable, net of allowance for credit losses of $241
and $172 as of March 31, 2026, and December 31, 2025, respectively 30,456 33,420
Inventory 81,736 75,549
Prepaid expenses and other current assets 8,423 6,071
Total current assets 171,850 166,299
NON-CURRENT ASSETS:
Property, plant and equipment, net 47,162 46,922
Operating lease right of use assets 5,484 5,807
Intangible assets, net 1,375 1,452
Investment in affiliates 5,520 4,905
Funds in respect of employee rights upon retirement 400 398
Deferred tax assets 706 639
Restricted deposit 310 307
Total non-current assets 60,957 60,430
Total assets $232,807 $226,729
The accompanying notes are an integral part of these unaudited condensed consolidated financial Statements.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands
March 31, December 31,
2026 2025
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term loans $2,272 $2,227
Accounts payable 15,529 12,986
Accrued expenses and other 17,396 17,296
Current maturities of operating lease liabilities 1,448 1,474
Total current liabilities 36,645 33,983
NON-CURRENT LIABILITIES:
Long-term loans 8,937 9,485
Operating lease liabilities 4,174 4,448
Liability in respect of employee rights upon retirement 772 770
Deferred tax liabilities 1,804 1,652
Total non-current liabilities 15,687 16,355
COMMITMENTS AND CONTINGENCIES (NOTE 4) -
Total liabilities 52,332 50,338
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0 par value -
Authorized: 15,000,000 shares at March 31, 2026 and at December 31,
2025
Issued:13,257,610 shares at March 31, 2026 and at December 31, 2025
Outstanding: 12,983,137 shares at March 31, 2026 and at December 31,
2025
Additional paid-in capital 137,071 136,578
Treasury stock at cost (2,088) (2,088)
Accumulated other comprehensive income 834 643
Retained earnings 44,658 41,258
Total shareholders' equity 180,475 176,391
Total liabilities and shareholders' equity $232,807 $226,729
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
U.S dollars in thousands
Three Months Ended
March 31,
2026 2025
Revenues:
Products $13,906 $12,724
Services 27,241 29,418
41,147 42,142
Costs:
Products 10,099 8,331
Services 21,017 23,857
31,116 32,188
Gross profit 10,031 9,954
Operating expenses:
Research and development, net 571 324
Selling and marketing 2,182 1,928
General and administrative 4,293 3,532
7,046 5,784
Operating income 2,985 4,170
Interest expenses (148) (335)
Other financial income, net 187 277
Income before taxes on income 3,024 4,112
Provision for income taxes 145 592
Income before share of equity investment 2,879 3,520
Share in profits of equity investment of affiliated companies 521 293
Net income $3,400 $3,813
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
U.S dollars in thousands, except share and per share data
Three Months Ended
March 31,
2026 2025
Earnings per share
Basic $0.26 $0.35
Diluted $0.26 $0.34
Weighted average number of shares outstanding
Basic 12,983,137 10,940,358
Diluted 13,204,290 11,211,271
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
U.S dollars in thousands
Three Months Ended
March 31,
2026 2025
Net income $3,400 $3,813
Other comprehensive income, net:
Change in foreign currency translation adjustments 191 528
Total comprehensive income $3,591 $4,341
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
U.S dollars in thousands, except share data
Share capital Accumulated
Number of Amount Additional other Treasury shares Retained Total
equity
shares issued paid-in comprehensive earnings
capital income (loss)
BALANCE AT DECEMBER 31, 202
4 11,214,831
$- $89,697 $(76) $(2,088) $24,436 $111,969
CHANGES DURING THE THREE MONTHS ENDED MARCH 31,
2025:
Comprehensive income 528 3,813 4,341
Share based compensation 222 222
BALANCE AT MARCH 31, 2025 11,214,831
$- $89,919 $452 $(2,088) $28,249 $116,532
BALANCE AT DECEMBER 31, 2025 13,257,610
$- $136,578 $643 $(2,088) $41,258 $176,391
CHANGES DURING THE THREE MONTHS ENDED MARCH 31, 2026:
Comprehensive income 191 3,400 3,591
Share based compensation 493 493
BALANCE AT MARCH 31, 2026 13,257,610
$- $137,071 $834 $(2,088) $44,658 $180,475
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Three
Months Ended
March 31,
2026 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $3,400 $3,813
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization 1,313 1,305
Non-cash financial (income) expenses 331 (99)
Change in allowance for (recovery of) credit losses 69 (50)
Share in profits of equity investment of affiliated companies (521) (293)
Share based compensation 493 222
Deferred income taxes, net 85 519
Changes in operating assets and liabilities:
Decrease (increase) in trade accounts receivable 2,894 (3,476)
Increase in prepaid expenses and other current assets (2,257) (527)
Increase in inventory (6,430) (3,861)
Increase in trade accounts payable 2,471 434
Increase (decrease) in accrued expenses and other 102 (3,022)
Net cash provided by (used in) operating activities 1,950 (5,035)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (1,420) (2,862)
Net cash used in investing activities (1,420) (2,862)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of long-term loans (551) (571)
Net change in short term loans from banks - 6,369
Net cash (used in) provided by financing activities (551) 5,798
Net decrease in cash and cash equivalents
and
restricted cash (21) (2,099)
Cash and cash equivalents and restricted cash at beginning of period 51,566 7,434
Cash and cash equivalents and restricted cash at the end of period $51,545 $5,335
Supplementary information on investing and financing activities not involving cash flows:
Additions of operating lease right-of-use assets and operating lease liabilities 82 147
Reclassification between inventory and property, plant and equipment - 579
Supplemental disclosure of cash flow information:
Interest paid 154 267
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED)
(U.S dollars in thousands)
Three months ended
March 31,
2026 2025
Net income $3,400 $3,813
Adjustments:
Share in results and sale of equity investment of affiliated companies (521) (293)
Provision for income taxes 145 592
Financial expenses, net (39) 58
Depreciation, amortization and other 1,375 1,353
Share based compensation 493 222
Adjusted EBITDA $4,853 $5,745
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SOURCE TAT Technologies Ltd
