TAT Technologies Ltd: TAT Technologies Reports Record Third Quarter 2026 Results

Record Quarterly and Nine-Month Revenue, Gross Profit Margin and Adjusted EBITDA

Revenue Increases 20.2%, Adjusted EBITDA Increases 60.9% and Diluted EPS Increases 57.8%

CHARLOTTE, N.C., Nov. 2, 2026 /PRNewswire/ -- TAT Technologies Ltd. (NASDAQ: TATT) (TASE: TAT Tech), a leading supplier of products and services for the commercial and military aerospace and ground defense industries, today reported financial results for the third quarter ended September 30, 2026.

Igal Zamir, TAT's president and CEO, said: "TAT delivered an outstanding third quarter, with record quarterly revenue of $55.6 million and record quarterly adjusted EBITDA of $10.9 million, reflecting a record adjusted EBITDA margin of 19.6%. These results are driven by strong customer demand, an improved product mix and greater operational efficiency. Demand for our products remains strong across our core product lines, while our extended relationship with Honeywell is creating additional opportunities going forward."

"Looking forward, we enter the final quarter of 2026 with strong momentum, supported by our long-standing customer relationships, strong backlog and long-term agreements. We believe TAT is well positioned to build on its strong performance to seize future opportunities and achieve sustainable, profitable growth in the years to come," concluded Mr. Zamir.

Financial highlights:

Record quarterly and nine-month revenue, gross profit and Adjusted EBITDA.

• Revenues were $55.6 million, a 20.2% increase compared to $46.2 million in the third quarter of 2025. For the first nine months of 2026, revenues increased by 13.8% to $149.6 million compared to $131.5 million in the first nine months of 2025.
• Gross profit increased by 48.2% to $17.2 million, representing 30.9% of revenues, compared to $11.6 million (25.1% of revenues) in the third quarter of 2025. For the first nine months of 2026, gross profit increased by 25.2% to $40.5 million compared to $32.4 million in the first nine months of 2025 (27.1% of revenues in the first nine months of 2026 compared to 24.6% of revenues in the first nine months of 2025).
• Operating Income increased by 71.8% to $9.0 million (16.3% of revenues) compared to $5.3 million (11.4% of revenues) for the third quarter of 2025. For the first nine months of 2026, operating income was $17.6 million (11.8% of revenues) compared to $13.9 million (10.5% of revenues) in the first nine months of 2025.
• Net Income of $7.7 million (Diluted EPS of $0.58) compared to $4.8 million for the third quarter of 2025 (Diluted EPS of $0.37). For the first nine months of 2026, net income was $19.1 million (Diluted EPS of $1.46), compared to $12.1 million (Diluted EPS of $1.02) in the first nine months of 2025. Net income for the first nine months of 2026 includes a one-time gain of $3.4 million, net of tax, on the sale of the Company's equity method investment in First Aviation Services Inc. (FAV).
• Adjusted EBITDA was $10.9 million (19.6% of revenues), a 60.9% increase from $6.8 million (14.6% of revenues) for the third quarter of 2025. Adjusted EBITDA for the first nine months of 2026 increased by 47% to $27.4 million (18.31% of revenues) compared to $18.6 million (14.1% of revenues) in the first nine months of 2025. Excluding the one-time pre-tax gain of $4.3 million from the sale of the Company's equity investment in FAV, Adjusted EBITDA for the first nine months of 2026 was $23.0 million.
• Cash flow provided by operations for the third quarter was $3.8 million compared to $7.5 million provided by operations in the third quarter of 2025. Cash flow from operations was $5.2 million in the first nine months of 2026 compared to $9.4 million in the first nine months of 2025. The decrease was primarily attributable to an increase in inventory of $10.6 million in the third quarter and $20.5 million in the first nine months of 2026, reflecting the Company's investment in inventory to support the ramp-up of its long-term agreements, including its expanded agreement with Honeywell.
• Backlog and Long-Term Agreements: approximately $577 million as of September 30, 2026.

Investor Call Information

TAT Technologies will host an earnings webcast and conference call today, November 2, 2026, at 8:00 a.m. Eastern Time to discuss third quarter results. Investors may register using the link below or by visiting the Company's website.

Webcast Registration: Link to registration
Investor Relations Website: https://tat-technologies.com/investors/

Non-GAAP Financial Measures

To supplement its GAAP results, the Company presents adjusted EBITDA, adjusted net income and adjusted earnings per share, which are non-GAAP financial measures, to provide investors with additional insight into underlying operating performance. Management uses these measures to evaluate period-to-period operating performance and believes they are useful to investors because they exclude items that are non-recurring or non-cash in nature or that do not reflect the Company's core operations. Adjusted EBITDA excludes the Company's share in results of affiliated companies, share-based compensation, income taxes, financial (expenses) income, net, gain on sale of equity investment and depreciation and amortization. Adjusted net income and adjusted earnings per share exclude the gain on sale of equity investment and the related income tax impact. These non-GAAP measures should not be considered as alternatives to net income, operating income or earnings per share for the period and may not be indicative of the historic operating results of the Company; nor are they meant to be predictive of potential future results. These measures are not measures of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. See reconciliations of these non-GAAP measures to the most directly comparable GAAP measures below.

About TAT Technologies

TAT Technologies Ltd. (NASDAQ: TATT) (TASE: TAT Tech) is a leading provider of services and products to the commercial and military aerospace and ground defense industries, providing OEM heat transfer solutions and aviation accessories, MRO services for aviation components, including heat transfer solutions, overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps and MRO services on APUs, landing gears and other aircraft components for airlines, air cargo carriers, maintenance service centers and the military. For more information, please visit www.tat-technologies.com.

Forward-Looking Statements

This press release 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 operating results, demand conditions, supply chain conditions, customer relationships, backlog conversion, market position, and growth prospects. 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 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, the war and hostilities between Israel and Hamas, Hezbollah and Iran, regional shipping disruptions and other risks detailed from time to time in the Company's filings with the Securities and 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. The Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact:

Eran Yunger
Director of IR
Tel: [phone]
[email protected]

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands
	September 30,		December 31,
	2026		2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$53,732		$51,259
Accounts receivable, net of allowance for credit losses of $266 and $172 as of September 30, 2026, and December 31, 2025, respectively	35,728		33,420
Inventory	95,328		75,549
Prepaid expenses and other current assets	5,913		6,071
Total current assets	190,701		166,299
NON-CURRENT ASSETS:
Property, plant and equipment, net	50,207		46,922
Operating lease right of use assets	5,154		5,807
Intangible assets, net	2,038		1,452
Investment in affiliates	5,700		4,905
Funds in respect of employee rights upon retirement	434		398
Deferred tax assets	436		639
Restricted deposit	-		307
Total non-current assets	63,969		60,430
Total assets	$254,670		$226,729

TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands
	September 30,		December 31,
	2026		2025
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debts	$167		$2,227
Accounts payable	17,773		12,986
Accrued expenses and other current liabilities	18,987		17,296
Current maturities of operating lease liabilities	1,438		1,474
Total current liabilities	38,365		33,983
NON-CURRENT LIABILITIES:
Long-term debts, net	10,963		9,485
Operating lease liabilities	3,859		4,448
Liability in respect of employee rights upon retirement	826		770
Deferred tax liabilities	3,839		1,652
Total non-current liabilities	19,487		16,355
COMMITMENTS AND CONTINGENCIES (NOTE 7)	-		-
Total liabilities	57,852		50,338
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0 par value Authorized: 23,000,000 shares at September 30, 2026, and 19,000,000 at December 31, 2025 Issued:13,272,610 shares at September 30, 2026, and 13,257,610 shares at December 31, 2025 Outstanding: 12,998,137 shares at September 30, 2026, and 12,983,137 shares at December 31, 2025	-		-
Additional paid-in capital	138,049		136,578
Treasury stock at cost	(2,088)		(2,088)
Accumulated other comprehensive income	451		643
Retained earnings	60,406		41,258
Total shareholders' equity	196,818		176,391
Total liabilities and shareholders' equity	$254,670		$226,729

TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenues:
Products	$15,336		$12,617		$44,571		$37,804
Services	40,227		33,618		105,077		93,677
	55,563		46,235		149,648		131,481
Costs:
Products	10,338		9,170		31,207		26,613
Services	28,038		25,464		77,903		72,488
	38,376		34,634		109,110		99,101
Gross profit	17,187		11,601		40,538		32,380
Operating expenses:
Research and development, net	726		323		1,832		887
Selling and marketing	2,384		1,993		7,096		6,106
General and administrative	5,041		4,025		13,966		11,522
	8,151		6,341		22,894		18,515
Operating income	9,036		5,260		17,644		13,865
Gain on sale of equity investment	-		-		4,324		-
Interest expenses	(216)		(176)		(546)		(835)
Other financial income (expenses), net	273		206		92		(293)
Income before taxes on income	9,093		5,290		21,514		12,737
Provision for income taxes	1,759		821		3,815		1,624
Income before share of equity investment	7,334		4,469		17,699		11,113
Share in profits of equity investment of affiliated companies	343		372		1,449		983
Net income	$7,677		$4,841		$19,148		$12,096

TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Earnings per share
Basic	$0.59		$0.37		$1.47		$1.03
Diluted	$0.58		$0.37		$1.46		$1.02
Weighted average number of shares outstanding
Basic	12,998,137		12,911,050		12,989,582		11,776,747
Diluted	13,144,592		13,078,467		13,158,304		11,904,044

TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net income	$7,677		$4,841		$19,148		$12,096
Other comprehensive income (loss), net:
Change in foreign currency translation adjustments	(261)		(101)		(170)		575
Net unrealized losses from derivatives	(15)		-		(22)		-
Total comprehensive income	$7,401		$4,740		$18,956		$12,671

TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands
		Share capital							Accumulated
		Number of shares issued			Amount		Additional paid-in capital		other comprehensive income (loss)		Treasury shares		Retained earnings		Total equity
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, 2025:
Comprehensive income (loss)		-			-		-		(101)		-		4,841		4,740
Exercise of stock option		63,348			-		-		-		-		-		-
Share based compensation		-			-		167		-		-		-		167
BALANCE AT SEPTEMBER 30, 2025		13,225,110			$-		$135,745		$499		$(2,088)		$36,532		$170,688
BALANCE AT JUNE 30, 20 2 6		13,272,610			$-		$137,567		$727		$(2,088)		$52,729		$188,935
CHANGES DURING THE THREE MONTHS ENDED SEPTEMBER 30, 2026:
Comprehensive income (loss)		-			-		-		(276)		-		7,677		7,401
Share based compensation		-			-		482		-		-		-		482
BALANCE AT SEPTEMBER 30, 2026		13,272,610			$-		$138,049		$451		$(2,088)		$60,406		$196,818

TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands
		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 NINE MONTHS ENDED SEPTEMBER 30, 2025:
Comprehensive income (loss)		-			-		-		575		-		12,096		12,671
Exercise of option		142,981			-		-		-		-		-		-
Issuance of ordinary 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, 2025		13,225,110			$-		$135,745		$499		$(2,088)		$36,532		$170,688
BALANCE AT DECEMBER 31, 2025		13,257,610			$-		$136,578		$643		$(2,088)		$41,258		$176,391
CHANGES DURING THE NINE MONTHS ENDED SEPTEMBER 30, 2026:
Comprehensive income (loss)		-			-				(192)		-		19,148		18,956
Exercise of option		15,000			-		136		-		-		-		136
Share based compensation		-			-		1,335		-		-		-		1,335
BALANCE AT SEPTEMBER 30, 2026		13,272,610			$-		$138,049		$451		$(2,088)		$60,406		$196,818

TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$7,677		$4,841		$19,148		$12,096
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,362		1,249		4,066		3,762
Non-cash financial expenses	462		126		814		634
Gain on sale of equity investment (Note 4)	-		-		(4,324)		-
Change in allowance for credit losses	39		(104)		94		(79)
Share in profits of equity investment of affiliated companies	(343)		(372)		(1,449)		(983)
Share based compensation	482		167		1,335		680
Deferred income taxes, net	690		884		2,390		1,466
Changes in operating assets and liabilities:
Decrease (increase) in trade accounts receivable	3,046		(960)		(2,402)		(3,554)
Decrease (increase) in inventory	(10,607)		281		(20,490)		1,464
Decrease (increase) in prepaid expenses and other current assets	1,120		(1,757)		309		(9,052)
Increase (decrease) in trade accounts payable	(929)		1,334		3,945		4,740
Increase (decrease) in accrued expenses and other current liabilities	774		1,806		1,725		(1,765)
Net cash provided by operating activities	3,773		7,495		5,161		9,409
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of equity investment	-		-		4,493		-
Purchase of property and equipment	(4,408)		(2,743)		(6,967)		(8,910)
Net cash used in investing activities	(4,408)		(2,743)		(2,474)		(8,910)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of short-term loans	-		-		-		(4,350)
Repayments of long-term debts	(96)		(473)		(11,368)		(1,560)
Proceeds from issuance of ordinary shares and exercise of the underwriters' option	-		-		-		48,550
Issuance costs of ordinary shares and exercise of the underwriters' option	-		(362)		-		(3,182)
Proceeds (issuance costs) from long term debt, net	(166)		-		10,711		-
Proceeds from exercise of options	-		-		136		-
Net cash provided by (used in) financing activities	(262)		(835)		(521)		39,458
Net increase (decrease) in cash and cash equivalents and restricted cash	(897)		3,917		2,166		39,957
Cash and cash equivalents and restricted cash at beginning of period	54,629		43,474		51,566		7,434
Cash and cash equivalents and restricted cash at the end of period	$53,732		$47,391		$53,732		$47,391
Supplementary information on investing and financing activities not involving cash flows:
Additions of operating lease right-of-use assets and operating lease liabilities	$161		$1,948		$460		$3,783
Reclassification between inventory and property, plant and equipment	-		-		-		579
Addition to property and equipment and intangible assets in accounts payable	1,430		195		1,430		195
Supplemental disclosure of cash flow information:
Interest paid	135		430		438		946
Taxes paid	79		21		192		197

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED)
AND
ADJUSTED NET INCOME ATTRIBUTABLE TO TAT TECHNOLOGIES LTD. (UNAUDITED)

TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands
	Three months ended				Nine months ended
	September 30,				September 30,
	2026		2025		2026		2025
Net income	$7,677		$4,841		$19,148		$12,096
Adjustments:
Share in profits of equity investment of affiliated companies	(343)		(372)		(1,449)		(983)
Provision for income taxes	1,759		821		3,815		1,624
Interest expenses	216		176		546		835
Other financial (income) expenses, net	(273)		(206)		(92)		293
Depreciation, amortization and others	1,362		1,334		4,066		4,025
Share based compensation	482		167		1,335		680
Adjusted EBITDA	$10,880		$6,761		$27,369*		$18,570
* Adjusted EBITDA for the nine months ended September 30, 2026 includes the one-time pre-tax gain of $4,324 thousand from the sale of the Company's equity investment in First Aviation Services Inc. Without this one-time profit Adjusted EBITDA would be $23,045 thousand.

TAT TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands
	Three months ended				Nine months ended
	September 30,				September 30,
	2026		2025		2026		2025
Net income	$7,677		$4,841		$19,148		$12,096
Adjustments:
Gain on sale of equity investment	-		-		(4,324)		-
Income tax impact	-		-		908		-
Adjusted net income	$7,677		$4,841		$15,732		$12,096
Earnings per share
Basic	$0.59		$0.37		$1.47		$1.03
Diluted	$0.58		$0.37		$1.46		$1.02
Adjusted earnings per share
Basic	$0.59		$0.37		$1.21		$1.03
Diluted	$0.58		$0.37		$1.20		$1.02

SOURCE TAT Technologies Ltd