TAT Technologies Reports First Quarter 2025 Results
Financial Highlights for the First Quarter of 202 5 :
-
Revenue for the first quarter of 2025 increased by 23.6% to
$42.1 million compared to$34.1 million in the first quarter of 2024. -
Gross profit for the first quarter of 2025 increased by 40.9% to
$10.0 million compared to$7.1 million in the first quarter of 2024. - Gross margin for the first quarter of 2025 improved by 290bp to 23.6% of revenue compared to 20.7% of revenue in the first quarter of 2024.
-
Adjusted EBITDA for the first quarter of 2025 increased by 56.2% to
$5.7 million (13.6% of revenue) compared to$3.7 million (10.8% of revenue) in the first quarter of 2024. -
Operating income for the first quarter of 2025 increased by 89.0% to
$4.2 million (9.9% of revenue) compared to$2.2 million (6.5% of revenue) in the first quarter of 2024. -
Net income for the first quarter of 2025 increased by 80.7% to
$3.8 million compared to a net income of$2.1 million in the first quarter of 2024. -
Cash flow from operating activities was negative
($4.9) million in the first quarter of 2025 compared to negative($3.5) million in the first quarter of 2024.
Mr.
"Our strategic growth initiatives, implemented over the past few years, have significantly expanded our addressable market and diversified our revenue streams," continued
"In the first quarter, we secured over
"To mitigate the evolving trade policy landscape, we're closely monitoring recent tariff changes and taking measured steps to minimize any impact on our operations. Our teams are in active, solution-focused discussions with key suppliers to ensure material flow remains uninterrupted and cost increases are controlled. At the same time, we're working closely with our customers to align expectations, adjust planning as needed, and maintain the high service levels they rely on."
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. The Adjusted EBITDA is calculated as net income, excluding the impact of: the Company's share in profit of equity investment of affiliated companies, share-based compensation, provision for income taxes, financial (expenses) income, net, and depreciation and amortization. The 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. The 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
About
TAT's activities in the area of OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) 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 in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units.
TAT's activities in the area of MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT's Limco subsidiary operates an
TAT's activities in the area of MRO services for aviation components include the MRO of APUs, landing gears and other aircraft components. TAT's Piedmont subsidiary operates an
TAT's activities in the area of overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps.
For more information about
www.tat-technologies.com.
Contact:
Mr.
Director of IR
erany@tat-technologies.com
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements which 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
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CONDENSED CONSOLIDATED BALANCE SHEET |
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(In thousands) |
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2025 |
|
2024 |
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|
(unaudited) |
|
(audited) |
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ASSETS |
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CURRENT ASSETS: |
|
|
|
|
Cash and cash equivalents |
$ 5,020 |
|
$ 7,129 |
|
Accounts receivable, net of allowance for credit losses of
and respectively |
33,223 |
|
29,697 |
|
Inventory |
72,980 |
|
68,540 |
|
Prepaid expenses and other current assets |
8,375 |
|
7,848 |
|
|
|
|
|
|
Total current assets |
119,598 |
|
113,214 |
|
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NON-CURRENT ASSETS: |
|
|
|
|
Property, plant and equipment, net |
42,474 |
|
41,576 |
|
Operating lease right of use assets |
2,115 |
|
2,282 |
|
Intangible assets, net |
1,633 |
|
1,553 |
|
Investment in affiliates |
3,722 |
|
2,901 |
|
Funds in respect of employee rights upon retirement |
641 |
|
654 |
|
Deferred income taxes |
358 |
|
877 |
|
Restricted deposit |
315 |
|
305 |
|
|
|
|
|
|
Total non-current assets |
51,258 |
|
50,148 |
|
Total assets |
$ 170,856 |
|
$ 163,362 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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CURRENT LIABILITIES: |
|
|
|
|
Current maturities of long-term loans |
$ 1,976 |
|
$ 2,083 |
|
Short-term loans |
10,719 |
|
4,350 |
|
Accounts payable |
12,592 |
|
12,158 |
|
Accrued expenses and other |
15,572 |
|
18,594 |
|
Current maturities of operating lease liabilities |
839 |
|
939 |
|
|
|
|
|
|
Total current liabilities |
41,698 |
|
38,124 |
|
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|
NON-CURRENT LIABILITIES: |
|
|
|
|
Long-term loans |
10,391 |
|
10,938 |
|
Liability in respect of employee rights upon retirement |
966 |
|
986 |
|
Operating lease liabilities |
1,269 |
|
1,345 |
|
|
|
|
|
|
Total non-current liabilities |
12,626 |
|
13,269 |
|
Total liabilities |
54,324 |
|
51,393 |
|
|
|
|
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STOCKHOLDERS' EQUITY: |
|
|
|
|
Share capital, no par value |
- |
|
- |
|
Additional paid-in capital |
89,919 |
|
89,697 |
|
|
(2,088) |
|
(2,088) |
|
Accumulated other comprehensive income (loss) |
452 |
|
(76) |
|
Retained earnings |
28,249 |
|
24,436 |
|
Total shareholders' equity |
116,532 |
|
111,969 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ 170,856 |
|
$ 163,362 |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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(In thousands, except share and per share data) |
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Three months ended |
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Year ended |
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|
|
2025 |
|
2024 |
|
2024 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
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Revenues: |
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|
|
|
|
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Products |
$ 12,724 |
|
$ 11,935 |
|
$ 47,710 |
|
|
Services |
29,418 |
|
22,153 |
|
104,406 |
|
|
|
42,142 |
|
34,088 |
|
152,116 |
|
|
|
|
|
|
|
|
|
|
Cost of goods: |
|
|
|
|
|
|
|
Products |
8,331 |
|
8,986 |
|
33,986 |
|
|
Services |
23,857 |
|
18,036 |
|
85,116 |
|
|
|
32,188 |
|
27,022 |
|
119,102 |
|
|
Gross profit |
9,954 |
|
7,066 |
|
33,014 |
|
|
|
|
|
|
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Operating expenses: |
|
|
|
|
|
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|
Research and development, net |
324 |
|
277 |
|
1,248 |
|
|
Selling and marketing, net |
1,928 |
|
1,660 |
|
7,746 |
|
|
General and administrative, net |
3,532 |
|
3,309 |
|
11,901 |
|
|
Other income |
- |
|
(388) |
|
(383) |
|
|
|
5,784 |
|
4,858 |
|
20,512 |
|
|
|
|
|
|
|
|
|
|
Operating income |
4,170 |
|
2,208 |
|
12,502 |
|
|
|
|
|
|
|
|
|
|
Interest expenses |
(335) |
|
(343) |
|
(1,472) |
|
|
Other financial income (expenses), net |
277 |
|
(106) |
|
(477) |
|
|
|
|
|
|
|
|
|
|
Income before taxes on income (taxes benefit) |
4,112 |
|
1,759 |
|
10,553 |
|
|
|
|
|
|
|
|
|
|
Provision for taxes on income (taxes benefit) |
592 |
|
(153) |
|
195 |
|
|
|
|
|
|
|
|
|
|
Profit before share of equity investment |
3,520 |
|
1,912 |
|
10,358 |
|
|
|
|
|
|
|
|
|
|
Share in profits of equity investment of affiliated companies |
293 |
|
198 |
|
809 |
|
|
Net income |
$ 3,813 |
|
$ 2,110 |
|
$ 11,167 |
|
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|
|
|
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Basic and diluted earnings per share: |
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|
|
|
|
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|
Basic |
$ 0.35 |
|
$ 0.20 |
|
$ 1.08 |
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Diluted |
$ 0.34 |
|
$ 0.19 |
|
$ 1.00 |
|
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|
|
|
|
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|
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Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
Basic |
10,940,358 |
|
10,378,978 |
|
10,363,978 |
|
|
Diluted |
11,211,271 |
|
10,554,351 |
|
11,215,827 |
|
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
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(In thousands) |
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Three months ended |
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Year ended |
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|
2025 |
|
2024 |
|
2024 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
|
|
|
|
|
Net income |
$ 3,813 |
|
$ 2,110 |
|
$ 11,167 |
|
|
Other comprehensive income (loss), net |
|
|
|
|
|
|
|
Net unrealized losses from derivatives |
- |
|
(27) |
|
(27) |
|
|
Change in foreign currency translation adjustments |
528 |
|
- |
|
(76) |
|
|
Total comprehensive income |
$ 4,341 |
|
$ 2,083 |
|
$ 11,064 |
|
|
|
|
|
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|
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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
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(In thousands, except share data) |
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Share capital |
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Accumulated |
|
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||||
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|
Number of shares issued |
|
Amount |
|
Additional paid-in capital |
|
other comprehensive income (loss) |
|
shares |
|
Retained earnings |
|
Total equity |
|
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|
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|
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|
BALANCE AT |
|
10,377,085 |
|
3,140 |
|
76,335 |
|
27 |
|
(2,088) |
|
13,269 |
|
90,683 |
|
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|
CHANGES DURING THE YEAR ENDED DECEMBER 31, 202 4 : |
|
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|
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|
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|
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|
Comprehensive income (loss) |
|
- |
|
- |
|
- |
|
(103) |
|
- |
|
11,167 |
|
11,064 |
|
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|
Exercise of option |
|
164,406 |
|
12 |
|
(12) |
|
- |
|
- |
|
- |
|
- |
|
||
|
Cancel of shares par value |
|
- |
|
(3,152) |
|
3,152 |
|
- |
|
- |
|
- |
|
- |
|
||
|
Issuance of common shares net of issuance costs of thousands |
|
673,340 |
|
- |
|
9,827 |
|
- |
|
- |
|
- |
|
9,827 |
|
||
|
Share based compensation |
|
- |
|
- |
|
395 |
|
- |
|
- |
|
- |
|
395 |
|
||
|
BALANCE AT |
|
11,214,831 |
|
- |
|
89,697 |
|
(76) |
|
(2,088) |
|
24,436 |
|
111,969 |
|
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|
CHANGES DURING THE PERIOD ENDED MARCH 31, 202 5 (unaudited): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Comprehensive income |
|
- |
|
- |
|
- |
|
528 |
|
- |
|
3,813 |
|
4,341 |
|
||
|
Share based compensation |
|
- |
|
- |
|
222 |
|
- |
|
- |
|
- |
|
222 |
|
||
|
BALANCE AT |
|
11,214,831 |
|
$ - |
|
$ 89,919 |
|
$ 452 |
|
$ (2,088) |
|
$ 28,249 |
|
|
|
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|
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|
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(In thousands) |
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Three months ended |
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Year ended |
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|||
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|
2025 |
|
2024 |
|
2024 |
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Net income |
|
$ 3,813 |
|
$ 2,110 |
|
$ 11,167 |
|
|
|
Adjustments to reconcile net income to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
1,305 |
|
1,374 |
|
5,455 |
|
|
|
Loss from change in fair value of derivatives |
|
- |
|
22 |
|
22 |
|
|
|
Change in funds in respect of employee rights upon retirement |
|
13 |
|
5 |
|
10 |
|
|
|
Net change in operating right of use asset and operating lease liability |
|
(9) |
|
4 |
|
18 |
|
|
|
Non-cash financial expenses |
|
(83) |
|
(214) |
|
(187) |
|
|
|
Decrease in restructuring plan provision |
|
- |
|
(20) |
|
(63) |
|
|
|
Change in allowance for credit losses |
|
(50) |
|
- |
|
55 |
|
|
|
Share in profits of equity investment of affiliated companies |
|
(293) |
|
(198) |
|
(809) |
|
|
|
Share based compensation |
|
222 |
|
41 |
|
395 |
|
|
|
Liability in respect of employee rights upon retirement |
|
(20) |
|
3 |
|
(14) |
|
|
|
Gain on disposal of property, plant and equipment |
|
- |
|
(354) |
|
(478) |
|
|
|
Deferred income taxes, net |
|
519 |
|
(409) |
|
117 |
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Increase in trade accounts receivable |
|
(3,476) |
|
(820) |
|
(9,743) |
|
|
|
Increase in prepaid expenses and other current assets |
|
(527) |
|
(181) |
|
(1,473) |
|
|
|
Increase in inventory |
|
(3,861) |
|
(2,637) |
|
(17,165) |
|
|
|
Increase (decrease) in trade accounts payable |
|
434 |
|
(700) |
|
2,170 |
|
|
|
Increase (decrease) in accrued expenses and other |
|
(3,022) |
|
(1,573) |
|
4,705 |
|
|
|
Net cash used in operating activities |
|
(5,035) |
|
(3,547) |
|
(5,818) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Proceeds from sale of property and equipment |
|
- |
|
1,306 |
|
1,275 |
|
|
|
Purchase of property and equipment |
|
(2,862) |
|
(989) |
|
(5,126) |
|
|
|
Purchase of intangible assets |
|
- |
|
- |
|
- |
|
|
|
Net cash provided by (used in) investing activities |
|
(2,862) |
|
317 |
|
(3,851) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Repayments of long-term loans |
|
(571) |
|
(440) |
|
(2,016) |
|
|
|
Net change in short term credit from banks |
|
6,369 |
|
(4,000) |
|
(7,650) |
|
|
|
Proceeds from issuance of common shares, net |
|
- |
|
- |
|
9,827 |
|
|
|
Exercise of options |
|
- |
|
1 |
|
- |
|
|
|
Net cash provided by (used in) financing activities |
|
5,798 |
|
(4,439) |
|
161 |
|
|
|
Net decrease in cash and cash equivalents and restricted cash |
|
(2,099) |
|
(7,669) |
|
(9,508) |
|
|
|
Cash and cash equivalents and restricted cash at beginning of period |
|
7,434 |
|
16,942 |
|
16,942 |
|
|
|
Cash and cash equivalents and restricted cash at the end of period |
|
$ 5,335 |
|
$ 9,273 |
|
$ 7,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY INFORMATION ON INVESTING ACTIVITIES NOT INVOLVING CASH FLOW: |
|
|
|
|
|
|
|
|
|
Additions to operating lease right-of-use assets and operating lease liabilities |
|
147 |
|
345 |
|
983 |
|
|
|
Reclassification between inventory and property, plant and equipment |
|
579 |
|
60 |
|
155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
|
|
|
Interest paid |
|
267 |
|
(442) |
|
(1,400) |
|
|
|
Income taxes paid |
|
- |
|
- |
|
(39) |
|
|
|
|
|
|||||
|
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED) |
|
|||||
|
(In thousands) |
|
|||||
|
|
Three months ended |
|
Year ended |
|
||
|
|
|
|
|
|
||
|
|
2025 |
|
2024 |
|
2024 |
|
|
|
|
|
|
|
|
|
|
Net income |
$ 3,813 |
|
$ 2,110 |
|
$ 11,167 |
|
|
Adjustments: |
|
|
|
|
|
|
|
Provision for income taxes (taxes benefit) |
592 |
|
(153) |
|
195 |
|
|
Financial expense, net |
58 |
|
449 |
|
1,949 |
|
|
Depreciation and amortization |
1,353 |
|
1,428 |
|
5,717 |
|
|
Share based compensation |
222 |
|
41 |
|
395 |
|
|
Share in profits of equity investment of affiliated companies |
(293) |
|
(198) |
|
(809) |
|
|
Adjusted EBITDA |
$ 5,745 |
|
$ 3,677 |
|
$ 18,614 |
|
|
|
|
|
|
|
|
|
View original content:https://www.prnewswire.com/news-releases/tat-technologies-reports-first-quarter-2025-results-302459605.html
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