Financial highlights for the third quarter of 2025:
Revenues increased by 14.3% to $46.2 million compared to $40.5 million for the third quarter of 2024. For the nine months of 2025 revenues increased by 18.4% to $131.5 million compared to $111.1 million in the nine months of 2024.
Gross profit increased by 36.8% to $11.6 million (25.1% of revenues) compared to $8.5 million (21.0% of revenues) for the third quarter of 2024. For the nine months of 2025 gross profit increased by 37.6% to $32.4 million (24.6% of revenues) compared to $23.5 million (21.2% of revenues) in the nine months of 2024.
Operating Income increased by 52.6% to $5.3 million (11.4% of revenues) compared to $3.4 million (8.5% of revenues) for the third quarter of 2024. For the nine months of 2025 operating income increased by 65.3% to $13.9 million (10.5% of revenues) compared to $8.4 million (7.6% of revenues) in the nine months of 2024.
Net Income increased by 69.0% to $4.8 million compared to $2.9 million for the third quarter of 2024. For the nine months of 2025 net income increased by 59.3% to $12.1 million compared to $7.6 million in the nine months of 2024.
Adjusted EBITDA increased by 34.4% to $6.8 million (14.6% of revenues) compared to $5.0 million (12.4% of revenues) for the third quarter of 2024. Adjusted EBITDA for the nine months of 2025 increased by 42.2% to $18.6 million (14.1% of revenues) compared to $13.1 million (11.8% of revenues) in the nine months of 2024.
Cash flow provided by operating activities for the three and nine months ended September 30, 2025, was $7.5 million and $9.4 million, respectively, compared to cash flows provided by operating activities of $2.7 million and cash flows used in operating activities of $(4.8) million for the three and nine months ended September 30, 2024, respectively.
Mr. Igal Zamir, TAT's CEO and President, commented: "TAT Technologies continues to deliver organic growth that exceeds the broader MRO market, reflecting the diversification and depth of our business model. Growth this quarter was broad-based, with APU activity rebounding following the softness seen earlier in the spring and incremental contributions from landing gear maintenance. We have positioned the Company as a trusted partner to carriers by addressing underserved parts of the market. Our agility and responsiveness are valued by our customers and continue to translate incremental growth opportunities."
"Our performance increasingly reflects the company's earnings power, as incremental growth is translating into meaningful operating leverage and cash flow conversion," continued Mr. Zamir. "Gross margin expanded by 410 basis points, driven by higher margin revenue streams, and disciplined operational management enabled us to grow net income by 69% and Adjusted EBITDA by 34%. Combined with improved working capital efficiency, we generated $7.5 million in cash flow from operations in the quarter, and on a year-to-date basis, $20.4 million in incremental revenue has translated to more than $14 million in incremental cash from operations."
Mr. Zamir continued, "TAT now operates from a position of strength with sustainable profitability, strong cash generation, and a balance sheet that includes more than $47 million in cash and over $94 million in working capital. With this foundation, we are beginning to actively explore accretive opportunities to compliment and expand our capabilities and scale. Organically, we are confident in our ability to sustain growth and drive continued margins expansion through 2026 and beyond."
Investor Call Information
TAT Technologies will host a webcast to review the quarterly results on Thursday, November 13, 2025, at 8:30 a.m. ET. Interested investors can register for the webcast at the link below or visit the investor relations section of the Company's website at https://tat-technologies.com/investors/.
• Conference call
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 YungerDirector of
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
TAT TECHNOLOGIES LTD. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands
September 30, 2025
December 31, 2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$ 47,094
$ 7,129
Accounts receivable, net of allowance for credit losses of $321
and $400 as of September 30, 2025, and December 31, 2024, respectively
33,330
29,697
Inventory
78,171
68,540
Prepaid expenses and other current assets
6,301
7,848
Total current assets
164,896
113,214
NON-CURRENT ASSETS:
Property, plant and equipment, net
46,172
41,576
Operating lease right of use assets
5,363
2,282
Intangible assets, net
1,528
1,553
Investment in affiliates
4,460
2,901
Funds in respect of employee rights upon retirement
736
654
Deferred income taxes
683
877
Restricted deposit
297
305
Total non-current assets
59,239
50,148
Total assets
$ 224,135
$ 163,362
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term loans
$ 2,151
$ 2,083
Short-term loans
-
4,350
Accounts payable
16,898
12,158
Accrued expenses and other
16,709
18,594
Current maturities of operating lease liabilities
1,358
939
Total current liabilities
37,116
38,124
NON-CURRENT LIABILITIES:
Long-term loans
9,884
10,938
Liability in respect of employee rights upon retirement
1,109
986
Deferred tax liabilities
1,272
-
Operating lease liabilities
4,066
1,345
Total non-current liabilities
16,331
13,269
COMMITMENTS AND CONTINGENCIES (NOTE 4)
-
-
Total liabilities
53,447
51,393
TAT TECHNOLOGIES LTD. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S dollars in thousands
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0 par value at September 30, 2025 and at December 31, 2024, respectively
Authorized: 15,000,000 shares at September 30, 2025 and 13,000,000 at December 31, 2024; Issued: 13,225,110 and 11,214,831 shares at September 30, 2025 and at December 31, 2024, respectively; Outstanding: 12,950,637 and 10,940,358 shares at September 30, 2025 and at December 31, 2024, respectively
-
-
Additional paid-in capital
135,745
89,697
Treasury stock at cost
(2,088)
(2,088)
Accumulated other comprehensive income (loss)
499
(76)
Retained earnings
36,532
24,436
Total shareholders' equity
170,688
111,969
Total liabilities and shareholders' equity
$ 224,135
$ 163,362
TAT TECHNOLOGIES LTD. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
U.S dollars in thousands
Three Months Ended September 30,
Nine Months EndedSeptember 30,
2025
2024
2025
2024
Revenues:
Products
$12,617
$12,164
$37,804
$35,831
Services
33,618
28,295
93,677
75,241
46,235
40,459
131,481
111,072
Cost of goods:
Products
9,170
8,535
26,613
25,194
Services
25,464
23,443
72,488
62,347
34,634
31,978
99,101
87,541
Gross profit
11,601
8,481
32,380
23,531
