TAT Technologies Reports First Quarter 2026 Results, Backlog and Long-Term Agreements Increase to ~$580 Million on Strong Demand

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Rhea-AI Sentiment

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Rhea-AI Summary

TAT Technologies (NASDAQ:TATT) reported unaudited Q1 2026 results. Revenue was $41.1 million, down 2.4% year over year, while gross profit held at $10.0 million and gross margin improved to 24.4%.

Operating income was $3.0 million, net income $3.4 million, and Adjusted EBITDA $4.9 million. Operating cash flow improved to $1.9 million. Backlog and long-term agreements rose to an all-time high of about $580 million, with management citing strong demand but short-term OEM supply chain disruptions.

AI-generated analysis. Not financial advice.

Positive

Record backlog and long-term agreements of about $580 million
Gross margin up 80 bps to 24.4% of revenues
Operating cash flow improved to positive $1.9 million from negative $5.0 million
Demand described as at an all-time high across four service lines

Negative

Revenue down 2.4% year over year to $41.1 million
Operating income fell to $3.0 million from $4.2 million
Net income declined to $3.4 million from $3.8 million
Adjusted EBITDA decreased to $4.9 million from $5.7 million
Supply chain disruptions from certain OEM suppliers delayed deliveries

Key Figures

Q1 2026 revenue: $41.1M Gross profit: $10.0M Operating income: $3.0M +5 more

8 metrics

Q1 2026 revenue $41.1M Three months ended March 31, 2026; down 2.4% YoY from $42.1M

Gross profit $10.0M Q1 2026; gross margin 24.4% vs 23.6% in Q1 2025

Operating income $3.0M Q1 2026; margin 7.3% vs 9.9% in Q1 2025

Net income $3.4M Q1 2026; slightly below $3.8M in Q1 2025

Adjusted EBITDA $4.9M Q1 2026; 11.8% of revenue vs $5.7M (13.6%) in Q1 2025

Operating cash flow $1.9M Q1 2026; turned positive vs $(5.0)M in Q1 2025

Backlog & LTAs ~$580M Backlog and long-term agreements at end of Q1 2026

Cash & equivalents $51.2M Balance as of March 31, 2026 from Form 6-K

Market Reality Check

Price: $32.69 Vol: Volume 167,239 is close t...

normal vol

$32.69 Last Close

Volume Volume 167,239 is close to the 20-day average of 159,020 (relative 1.05x). normal

Technical Shares at 32.69 trade well below the 200-day MA 42.99 and 49.32% under the 52-week high.

Peers on Argus

Peer moves are mixed, with names like PKE up 0.79% while others such as EVTL and...

Peer moves are mixed, with names like PKE up 0.79% while others such as EVTL and RGR are down, suggesting today’s setup looks stock‑specific rather than a broad aerospace & defense move.

Previous Earnings Reports

5 past events · Latest: Mar 18 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 18	Q4 2025 earnings	Positive	-16.3%	Strong 2025 growth and margins with backlog rising to about $550M.
Nov 12	Q3 2025 earnings	Positive	-0.7%	Q3 revenue and profit grew double digits with higher EBITDA and cash flow.
Aug 11	Q2 2025 earnings	Positive	-12.4%	Strong Q2 revenue, profit, backlog growth and a $45M capital raise.
May 19	Q1 2025 earnings	Positive	-5.4%	Q1 2025 showed robust revenue, profit and margin expansion with higher backlog.
May 22	Q1 2024 earnings	Positive	+1.1%	Q1 2024 delivered strong revenue, EBITDA and net income growth.

Pattern Detected

Earnings releases have generally been positive fundamentally but followed by weak stock reactions, with an average move of about -6.76% on past earnings days.

Recent Company History

Recent history shows TAT delivering multi‑quarter growth with expanding margins and rising backlog. Q1–Q3 2025 earnings highlighted double‑digit revenue growth, higher profitability and stronger operating cash flow, while Q4 2025 results showed continued scale and a backlog near $550M. Despite this, shares often traded down after earnings. Today’s Q1 2026 report, with slightly lower revenue but record $580M backlog and improved cash generation, fits into that growth-plus-volatility pattern.

Historical Comparison

-6.8% avg move · Past earnings releases for TAT have often been fundamentally strong yet followed by an average share...

earnings

-6.8%

Average Historical Move earnings

Past earnings releases for TAT have often been fundamentally strong yet followed by an average share move of about -6.76%, underscoring a pattern of cautious market reactions around results.

Across Q1 2024 through Q4 2025, TAT reported steady revenue growth, expanding gross and operating margins, stronger cash generation and a rising backlog (from $439M to about $550M), setting the stage for today’s Q1 2026 update with backlog near $580M.

Market Pulse Summary

This announcement reports slightly lower Q1 2026 revenue but stable gross profit, improved margin, a...

Analysis

This announcement reports slightly lower Q1 2026 revenue but stable gross profit, improved margin, and record backlog of about $580M, alongside a swing to positive operating cash flow. Compared with prior quarters that delivered strong growth and expanding profitability, the key watchpoints are resolution of supply‑chain disruptions and how effectively TAT converts its large backlog into revenue and earnings while maintaining cash discipline.

Key Terms

adjusted ebitda, basis points, gaap, non-gaap, +2 more

6 terms

adjusted ebitda financial

"Adjusted EBITDA was $4.9 million, representing 11.8% of revenues..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

basis points financial

"Gross margin improved by 80 basis points to 24.4% of revenues..."

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

gaap financial

"To supplement the consolidated financial statements presented in accordance with GAAP..."

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

non-gaap financial

"Non-GAAP Financial Measures To supplement the consolidated financial statements..."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

depreciation and amortization financial

"Adjusted EBITDA is calculated as net income excluding... depreciation and amortization."

Depreciation and amortization are accounting methods that spread the cost of long-term assets over the years they help generate revenue: depreciation applies to physical items like equipment, while amortization applies to intangible items like patents or software. Investors watch these charges because they reduce reported profit without using cash right away, so comparing them to cash flow helps reveal whether earnings come from real business performance or just accounting allocation — like spreading the price of a car or a license over many years.

AI-generated analysis. Not financial advice.

2026-05-20 - 08:10 a.m.

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 shares issued	Amount	Additional paid-in capital	other comprehensive income (loss)	Treasury shares	Retained earnings	Total equity


BALANCE AT DECEMBER 31, 2024	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

View original content:https://www.prnewswire.com/news-releases/tat-technologies-reports-first-quarter-2026-results-backlog-and-long-term-agreements-increase-to-580-million-on-strong-demand-302776931.html

SOURCE TAT Technologies Ltd

FAQ

What were TAT Technologies (NASDAQ:TATT) Q1 2026 revenue and net income?

TAT Technologies reported Q1 2026 revenue of $41.1 million and net income of $3.4 million. According to TAT Technologies, revenue declined 2.4% year over year, while net income slightly decreased from $3.8 million in the first quarter of 2025.

How large was TAT Technologies backlog in Q1 2026 and why is it important for TATT investors?

TAT Technologies reported backlog and long-term agreements of approximately $580 million at Q1 2026. According to TAT Technologies, this all-time high level reflects new contract wins and strong customer intake, providing visibility that supports revenue expectations and the company’s stated growth trajectory.

Why did TAT Technologies Q1 2026 revenue decline compared to Q1 2025?

Q1 2026 revenue declined mainly due to supply chain disruptions from certain OEM suppliers. According to TAT Technologies, these issues delayed finished goods and deliveries, limiting use of the growing backlog and leading to a 2.4% year-over-year revenue decrease despite strong demand.

How did TAT Technologies Q1 2026 cash flow compare with Q1 2025 for TATT shareholders?

Operating cash flow improved to positive $1.9 million in Q1 2026 from negative $5.0 million. According to TAT Technologies, this shift indicates better cash generation compared with the prior-year quarter, even as revenue and profitability metrics were modestly lower year over year.

What was TAT Technologies Adjusted EBITDA margin in Q1 2026 and how did it change year over year?

Adjusted EBITDA was $4.9 million, representing 11.8% of Q1 2026 revenues. According to TAT Technologies, this compares with $5.7 million and a 13.6% margin in Q1 2025, reflecting lower profitability partly linked to supply chain-related revenue timing impacts.

What outlook did TAT Technologies provide for TATT growth in the rest of 2026?

Management expects its growth trajectory to resume in Q2 and the second half of 2026. According to TAT Technologies, this outlook depends on resolving recent OEM supply disruptions, with record demand and backlog cited as drivers for anticipated revenue growth and shareholder value.