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TAT Technologies Ltd

TAT Technologies Reports Second Quarter 2025 Results

NETANYA, Israel , Aug. 11, 2025 /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, reported today its unaudited results for the three-month and six-month period ended June 30, 2025.

Financial highlights for the second quarter of 2025:

  • Revenues increased by 18.0% to $43.1 million compared to $36.5 million for the second quarter of 2024. For the first half of 2025 revenues increased by 20.7% to $85.2 million compared to $70.6 million in the first half of 2024.
  • Gross profit increased by 35.6% to $10.8 million compared to $8.0 million for the second quarter of 2024 (25.1% of revenues in Q2\25 compared to 21.9% of revenues in Q2\24). For the first half of 2025 gross profit increased by 38.1% to $20.8 million compared to $15.1 million in the first half of 2024 (24.4% of revenues in H1\25 compared to 21.3% of revenues in H1\24)
  • Operating Income increased by 62.2% to $4.4 million compared to $2.7 million for the second quarter of 2024, (10.3% of revenues in Q2\25 compared to 7.5% of revenues in Q2\24). For the first half of 2025 operating income increased by 74.1% to $8.6 million compared to $4.9 million in the first half of 2024 (10.1% of revenues in H1\25 compared to 7.0% of revenues in H1\24).
  • Net Income increased by 31.5% to $3.4 million compared to $2.6 million for the second quarter of 2024. For the first half of 2025 net income increased by 53.5% to $7.2 million compared to $4.7 million in the first half of 2024.Adjusted EBITDA increased by 39.2% to $6.1 million (14.0% of revenues) compared to $4.3 million (11.9% of revenues) for the second quarter of 2024. Adjusted EBITDA for the first half of 2025 increased by 47.1% to $11.8 million compared to $8.0 million in the first half of 2024 (13.9% of revenues in H1\25 compared to 11.4% in H1\24).
  • Cash flow provided by operating activities for the three and six months ended June 30, 2025, was $6.9 million and $1.9 million, respectively, compared to cash flows used in operating activities of $(4.1) million and $(7.6) million for the three and six months ended June 30, 2024, respectively.

Mr. Igal Zamir, TAT's CEO and President, commented: "TAT Technologies delivered another quarter of organic growth and improved profitability, with second quarter revenue growing 18% year over year, adjusted EBITDA increasing 39%, and $7 million in cash generated from operations. We continue to outpace the industry, despite certain slowdowns in MRO activity, by leveraging the diversification of our business across trading and MRO\OEM segments. Over the last month, MRO intake began to re-accelerate, providing greater visibility and reinforcing our confidence in continued year-over-year growth."

"In addition to the double-digit revenue growth, the value of our LTA and backlog grew by approximately $85 million to $524 million, which will flow into revenue over the coming years," added Mr. Zamir. "The broad-based growth was driven by winning several new contracts, including some for the 777APU, and also by increasing the volume of activity from existing contracts for both OEM and MRO."

Mr. Zamir continued, "This quarter, we successfully completed a capital raise of $45 million, further strengthening our balance sheet. From this position of increased strength, we are continuing to evolve in alignment with the significant opportunities in front of us. Our diversified offering has positioned us to perform well relative to the broader market, and we are now beginning to explore accretive strategic opportunities to further enhance our growth prospects. As we scale, we are also taking steps to strengthen our Board of Directors with capabilities to support the next phase of the Company's development. We remain focused on scaling the business and creating tangible, long-term value for our shareholders."

With the growing LTA value and backlog, strong order intake, and the ramp up in MRO activity, we are confident in our ability to sustain growth and expand profit margins through 2026," 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.

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
erany@tat-technologies.com

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.

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS  


U.S. dollars in thousands



J une 30,


December 31,


2025


2024







ASSETS





CURRENT ASSETS:





Cash and cash equivalents

$    43,126


$       7,129


Short-term bank deposits

57


-


Accounts receivable, net of allowance for credit losses of $425

   and $400 as of June 30, 2025, and December 31, 2024, respectively 

32,266


29,697


Inventory

76,414


68,540


Prepaid expenses and other current assets

6,610


7,848







Total current assets

158,473


113,214







NON-CURRENT ASSETS:





Property, plant and equipment, net

44,646


41,576


Operating lease right of use assets

3,475


2,282


Intangible assets, net

1,558


1,553


Investment in affiliates

4,188


2,901


Funds in respect of employee rights upon retirement

709


654


Deferred income taxes

295


877


Restricted deposit

291


305







Total non-current assets

55,162


50,148


Total assets

$213,635


$    163,362


LIABILITIES AND SHAREHOLDERS' EQUITY










CURRENT LIABILITIES:





Current maturities of long-term loans

$      2,088


$        2,083


Short-term loans

-


4,350


Accounts payable

15,564


12,158


Accrued expenses and other

15,273


18,594


Current maturities of operating lease liabilities

993


939







Total current liabilities

33,918


38,124







NON-CURRENT LIABILITIES:





    Long-term loans

10,310


10,938


Liability in respect of employee rights upon retirement

1,098


986


Operating lease liabilities

2,528


1,345







 Total non-current liabilities

13,936


13,269







COMMITMENTS AND CONTINGENCIES (NOTE 4)

-


-


Total liabilities

47,854


51,393







 

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS  

  U.S dollars in thousands

SHAREHOLDERS' EQUITY:




Ordinary shares of NIS 0 par value at June 30, 2025 and at December 31, 2024 respectively

Authorized: 15,000,000 shares at June 30, 2025 and 13,000,000 at December 31, 2024; Issued: 13,161,762 and 11,214,831 shares at June 30, 2025 and at December 31, 2024, respectively; Outstanding: 12,887,289 and 10,940,358 shares at June 30, 2025 and at December 31, 2024, respectively

-


-

Additional paid-in capital

135,578


89,697

Treasury stock at cost

(2,088)


(2,088)

Accumulated other comprehensive income (loss)

600


(76)

Retained earnings

31,691


24,436

Total shareholders' equity

165,781


111,969





Total liabilities and shareholders' equity

$   213,635


$     163,362





 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME




U.S. dollars in thousands

Three months ended


Six months ended


            June 30,                               June 30,


2025


2024


2025


2024

















Revenues:








Products

$  12,463


$     11,732


$25,187


$     23,667

Services

30,641


24,793


60,059


46,946


43,104


36,525


85,246


70,613









Cost of goods:








Products

9,112


7,673


17,443


16,659

Services

23,167


20,868


47,024


38,904


32,279


28,541


64,467


55,563

Gross profit

10,825


7,984


20,779


15,050









Operating expenses:








Research and development, net

240


343


564


620

Selling and marketing

2,185


1,993


4,113


3,653

General and administrative

3,965


2,916


7,497


6,225

Other income

-


(2)


-


(390)


6,390


5,250


12,174


10,108

Operating income

4,435


2,734


8,605


4,942









Interest expenses

(324)


(413)


(659)


(763)

Other financial income (expenses), net

(776)


106


(499)


7

Income before taxes on income (taxes benefit)

3,335


2,427


7,447


4,186









Provision for taxes on income (taxes benefit)

211


44


803


(109)

Profit before share of equity investment

3,124


2,383


6,644


4,295









Share in profits of equity investment of affiliated companies

318


234


611


432

Net income

$   3,442


$    2,617


$ 7,255


$  4,727









 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

U.S. dollars in thousands, except share and per share data









Earnings per share








Basic

$ 0.30


$    0.26


$ 0.65


$    0.46

Diluted

$ 0.30


$   0.25


$ 0.64


$   0.44









Weighted average number of shares outstanding








Basic

11,447,986


10,394,654


11,196,992


10,386,859

Diluted

11,666,309


10,561,420


11,409,488


10,722,153









 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


U.S. dollars in thousands



Three Months Ended

June 30,


Six Months Ended

June 30,



2025


2024


2025


2024











Net income

$  3,442


$    2,617


$  7,255


$   4,727


Other comprehensive income (loss), net









Net unrealized losses from derivatives

-


-


-


(27)


Change in foreign currency translation adjustments

148


164


676


164


        Total comprehensive income

$  3,590


$  2,781


$ 7,931


$ 4,864


 

 

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, 202 3


10,377,085


$      3,140


$      76,335


$              27


$    (2,088)


$     13,269


$     90,683


CHANGES DURING THE 6 MONTHS ENDED JUNE

  30, 202 4 :
















Comprehensive income


-


-


-


137


-


4,727


4,864


Exercise of option


49,109


12


(12)


-


-


-


-


Share based compensation


-


-


189


-


-


-


189


BALANCE AT JUNE 30, 20 2 4


10,426,194


3,152


76,512


164


(2,088)


17,996


95,736


















BALANCE AT DECEMBER 31, 202 4 


11,214,831


-


89,697


(76)


(2,088)


24,436


111,969


CHANGES DURING THE 6 MONTHS ENDED JUNE 30, 202 5 :
















Comprehensive income


-


-


-


676


-


7,255


7,931


Exercise of option


79,633


-


-


-


-


-


-


Issuance of common 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


-


-


513


-


-


-


513


BALANCE AT JUNE 30, 202 5 


13,161,762


$             -


$  135,578


$          600


$  (2,088)


$  31,691


$  165,781





















 

 

 

 


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


Treasury shares


Retained earnings


Total equity


















BALANCE AT MARCH 31, 202 4


10,382,637


$       3,141


$     76,376


$                -


$   (2,088)


$     15,379


$   92,808


CHANGES DURING THE 3 MONTHS ENDED JUNE
  30, 2024:
















Comprehensive income


-


-


-


164


-


2,617


2,781


Exercise of option


43,557


11


(12)


-


-


-


(1)


Share based compensation


-


-


148


-


-


-


148


BALANCE AT JUNE 30, 20 2 4


10,426,194


3,152


76,512


164


(2,088)


17,996


95,736


















BALANCE AT MARCH 31, 20 2 5


11,214,831


-


89,919


452


(2,088)


28,249


116,532


CHANGES DURING THE 3 MONTHS ENDED JUNE 30, 202 5 :
















Comprehensive income


-


-


-


148


-


3,442


3,590


Exercise of stock option


79,633


-


-


-


-


-


-


Issuance of common 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


-


-


291


-


-


-


291


BALANCE AT JUNE 30, 202 5 


13,161,762


$              -


$  135,578


$  600


$   (2,088)


$    31,691


$ 165,781



















 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 

U.S. dollars in thousands


Three Months Ended

June 30,


 

Six M onths Ended

June 30,


2025


2024


2025


2024









CASH FLOWS FROM OPERATING ACTIVITIES:








Net income 

$  3,442


$  2,617


$   7,255


$  4,727

Adjustments to reconcile net income to net cash used in operating activities:








Depreciation and amortization

1,208


1,431


2,513


2,805

Non-cash financial (income) expenses

600


(276)


508


(486)

Change in allowance for credit losses

75


40


25


40

Share in profits of equity investment of affiliated companies

(318)


(234)


(611)


(432)

Share based compensation

291


148


513


189

Gain on disposal of property, plant and equipment

-


(1)


-


(355)

Deferred income taxes, net

63


306


582


(103)

Changes in operating assets and liabilities:








Decrease (increase) in trade accounts receivable

882


(5,430)


(2,594)


(6,250)

Decrease (increase) in prepaid expenses and other current assets

1,697


(129)


1,183


(283)

Increase in inventory

(3,434)


(2,906)


(7,295)


(5,543)

Increase (decrease) in trade accounts payable

2,972


(209)


3,406


(909)

Decrease (increase) in accrued expenses and other

(529)


543


(3,571)


(1,047)

Net cash provided by (used in) operating activities

6,949


(4,100)


1,914


(7,647)









CASH FLOWS FROM INVESTING ACTIVITIES:








Proceeds from sale of property and equipment

-


-


-


1,306

Purchase of property and equipment

(3,305)


(978)


(6,167)


(1,967)

Net cash used in investing activities

(3,305)


(978)


(6,167)


(661)









CASH FLOWS FROM FINANCING ACTIVITIES:








Repayments of long-term loans

(516)


(510)


(1,087)


(950)

Proceeds from issuance of ordinary shares and exercise of the underwriters' option

48,550


(1)


48,550


-

Issuance costs of ordinary shares and exercise of the underwriters' option

(2,820)


-


(2,820)


-

Net change in short term loans from banks

(10,719)


4,668


(4,350)


668

Net cash provided by (used in) financing activities

34,495


4,157


40,293


(282)









Net increase (decrease) in cash and cash equivalents and  restricted cash

38,139


(921)


36,040


(8,590)

Cash and cash equivalents and restricted cash at beginning of period

5,335


9,273


7,434


16,942

Cash and cash equivalents and restricted cash at the end of period

$   43,474


$  8,352


$  43,474


$  8,352









Supplementary information on investing and financing activities not involving cash flows:








   Additions of operating lease right-of-use assets and operating lease liabilities

$ 1,688


$  245


$    1,835


$    590

   Reclassification between inventory and property, plant and equipment

-


-


579


60

   Unpaid issuance costs of ordinary shares and exercise of the underwriters' option

362


-


362


-

Supplemental disclosure of cash flow information:








   Interest paid

249


410


516


852

 

 

TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP)  (UNAUDITED)

(U.S. dollars in thousands)






Three months ended


Six months ended


June 30,


June 30,


2025



2024


2025


2024






















Net income

$ 3,442



$ 2,617


$ 7,255


$4,727


Adjustments:










Share in results and sale of equity investment of affiliated companies

(318)



(234)


(611)


(432)


Taxes on income (tax benefit)

211



44


803


(109)


Financial expenses, net

1,100



306


1,158


756


Depreciation and amortization

1,328



1,468


2,691


2,898


Share based compensation

291



148


513


189


Adjusted EBITDA

$ 6,054



$ 4,349


$ 11,809


$ 8,029
























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SOURCE TAT Technologies Ltd.