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 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
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
June 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
