TAT Technologies Reports Third Quarter 2025 Results

NETANYA, Israel, Nov. 12, 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 nine-month period ended September 30, 2025.

Financial highlights for the third quarter of 2025:

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 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

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)

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 Ended

September 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

Operating expenses:

Research and development, net

323

326

887

946

Selling and marketing

1,993

1,994

6,106

5,647

General and administrative

4,025

2,715

11,522

8,940

Other income

(390)

6,341

5,035

18,515

15,143

Operating income

5,260

3,446

13,865

8,388

Interest expenses

(176)

(420)

(835)

(1,183)

Other financial income (expenses), net

206

(315)

(293)

(308)

Income before taxes on income (taxes benefit)

5,290

2,711

12,737

6,897

Provision for taxes on income (taxes benefit)

821

1,624

(94)

Profit before share of equity investment

4,469

2,696

11,113

6,991

Share in profits of equity investment of affiliated companies

372

169

983

601

Net income

$4,841

$2,865

$12,096

$7,592

TAT TECHNOLOGIES LTD . AND ITS SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

Earnings per share

Basic

$ 0.37

$ 0.27

$ 1.03

$ 0.73

Diluted

$ 0.37

$ 0.26

$1.02

$ 0.69

Weighted average number of shares outstanding

Basic

12,911,050

10,609,867

11,776,747

10,462,012

Diluted

13,078,467

10,829,749

11,904,044

11,055,263

TAT TECHNOLOGIES LTD . AND ITS SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

U.S dollars in thousands

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Net income

$4,841

$2,865

$12,096

$ 7,592

Other comprehensive income (loss), net

Net unrealized losses from derivatives

(27)

Change in foreign currency translation adjustments

(102)

(43)

575

121

Total comprehensive income

$4,739

$2,822

$12,671

$ 7,686

TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

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 NINE MONTHS ENDED SEPTEMBER

30, 202 4 :

Comprehensive income

7,592

7,686

Exercise of option

84,006

(12)

Cancellation of par value

(3,152)

3,152

Issuance of common shares on public offering, net of issuance costs of

$152

673,340

9,923

Share based compensation

210

BALANCE AT SEPTEMBER 30, 20 2 4

11,134,431

89,608

121

(2,088)

20,861

108,502

BALANCE AT DECEMBER 31, 202 4

11,214,831

89,697

(76)

(2,088)

24,436

111,969

CHANGES DURING THE NINE MONTHS ENDED SEPTEMBER

30, 202 5 :

Comprehensive income

575

12,096

12,671

Exercise of option

142,981

Issuance of common shares on public offering, net of issuance costs of

$2,769

1,625,000

39,415

Exercise of the underwriters' option on public offering, net of issuance

costs of $413

242,298

5,953

Share based compensation

680

BALANCE AT SEPTEMBER 30, 202 5

13,225,110

$135,745

$499

$(2,088)

$36,532

$170,688

TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY

U.S dollars in thousands, except share data

Share capital

Number of

shares issued

Amount

Additional

paid-in

capital

Accumulated

other

comprehensive

income

Treasury shares

Retained

earnings

Total equity

BALANCE AT JUNE 30, 202 4

10,426,194

$3,152

$76,512

$164

$(2,088)

$17,996

$95,736

CHANGES DURING THE THREE MONTHS ENDED

SEPTEMBER 30, 2024:

Comprehensive income

34,897

(43)

2,865

2,822

Exercise of option

(3,152)

3,152

Issuance of common shares net of issuance costs of $152

673,340

9,923

Share based compensation

BALANCE AT SEPTEMBER 30, 20 2 4

11,134,431

89,608

121

(2,088)

20,861

108,502

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, 202 5 :

Comprehensive income

(101)

4,841

4,740

Exercise of stock option

63,348

Share based compensation

167

BALANCE AT SEPTEMBER 30, 202 5

13,225,110

$135,745

$499

$(2,088)

$36,532

$170,688

TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$4,841

$2,865

$12,096

$7,592

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

Depreciation and amortization

1,249

1,514

3,762

4,319

Non-cash financial (income) expenses

126

220

634

(266)

Change in allowance for credit losses

(104)

(40)

(79)

Share in profits of equity investment of affiliated companies

(372)

(169)

(983)

(601)

Share based compensation

167

680

210

Gain on disposal of property, plant and equipment

(355)

Deferred income taxes, net

884

1,466

(91)

Changes in operating assets and liabilities:

Increase in trade accounts receivable

(960)

(3,456)

(3,554)

(9,706)

Decrease (increase) in prepaid expenses and other current assets

281

(555)

1,464

(838)

Increase in inventory

(1,757)

(5,112)

(9,052)

(10,655)

Increase in trade accounts payable

1,334

3,825

4,740

2,916

Increase (decrease) in accrued expenses and other

1,806

3,665

(1,765)

2,618

Net cash provided by (used in) operating activities

7,495

2,790

9,409

(4,857)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property and equipment

(2,743)

(1,621)

(8,910)

(3,588)

Proceeds from sale of property and equipment

1,306

Net cash used in investing activities

(2,743)

(1,621)

(8,910)

(2,282)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayments of long-term loans

(473)

(504)

(1,560)

(1,454)

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

9,923

48,550

9,923

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

(362)

(3,182)

Net change in short term loans from banks

(10,072)

(4,350)

(9,404)

Net cash provided by (used in) financing activities

(835)

(653)

39,458

(935)

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

3,917

516

39,957

(8,074)

Cash and cash equivalents and restricted cash at beginning of period

43,474

8,352

7,434

16,942

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

$47,391

$ 8,868

$47,391

$ 8,868

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

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

1,948

$228

3,783

$818

Reclassification between inventory and property, plant and Equipment

579

Supplemental disclosure of cash flow information:

Interest paid

430

437

946

1,289

Income taxes paid

197

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

TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

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

(U.S dollars in thousands)

Three months ended

Nine months ended

September 30,

2025

2024

2025

2024

Net income

$4,841

$2,865

$12,096

$7,592

Adjustments:

Share in results and sale of equity investment of affiliated companies

(372)

(169)

(983)

(601)

Taxes on income (tax benefit)

821

1,624

(94)

Financial expenses, net

(30)

735

1,128

1,491

Depreciation and amortization

1,334

1,565

4,025

4,463

Share based compensation

167

680

210

Adjusted EBITDA

$6,761

$5,032

$18,570

$13,061

SOURCE TAT Technologies Ltd.