TAT Technologies Reports Fourth Quarter 2025 Results

CHARLOTTE, N.C., March 18, 2026 /PRNewswire/ -- TAT Technologies Ltd. (NASDAQ: TATT) (TASE: TAT Tech), a leading supplier of products and services for the commercial and military aviation industries and the ground defense industries, reported today its results for the three-month and twelve-month period ended December 31, 2025.

Financial Highlights for The Fourth Quarter and 12 Months of 2025:

Mr. Igal Zamir, TAT's CEO and President, commented: "We are very pleased with the results for the full year of 2025 and the fourth quarter of 2025. TAT delivered record results marking 2025 as our third consecutive year of growth and improvement across all key financial metrics.

For the full year of 2025 we achieved record revenue of $178 million and margin expansion in all profitability parameters including a record high EBITDA margin. We demonstrated capabilities to grow organically at a rapid pace within our industry while improving margins quarter after quarter.

Fourth-quarter revenue followed a seasonal trajectory, resulting in a stabilization of pace compared to earlier periods. Nevertheless, we achieved organic growth of over 13%, a rate that outperforms broader industry organic growth."

Mr. Zamir added: "We ended the year with a backlog and long-term agreements value of approximately $550 million, up from $429 million entering 2025, providing strong revenue visibility and supporting our objective for continued growth through 2026. With sustained demand across the aviation MRO market, we remain focused on executing our strategy, expanding our capabilities, and pursuing M&A opportunities that strengthen our position in thermal management and power systems".

Investor Call Information

TAT Technologies will host an earnings webcast to review the quarterly and annual results on Thursday, March 19, 2026, at 8 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

[email protected]

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.

TAT TECHNOLOGIES LTD.

CONSOLIDATED BALANCE SHEETS

U.S dollars in thousands

December 31,

2025

2024

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$51,259

$7,129

Accounts receivable, net of allowance for credit losses of $172

and $400 thousands as of December 31, 2025 and 2024, respectively

33,420

29,697

Inventory

75,549

68,540

Prepaid expenses and other current assets

6,071

7,848

Total current assets

166,299

113,214

NON-CURRENT ASSETS:

Property, plant and equipment, net

46,922

41,576

Operating lease right of use assets

5,807

2,282

Intangible assets, net

1,452

1,553

Investment in affiliates

4,905

2,901

Restricted deposit

307

305

Funds in respect of employee rights upon retirement

398

654

Deferred tax assets

639

877

Total non-current assets

60,430

50,148

Total assets

$226,729

$163,362

TAT TECHNOLOGIES LTD.

CONSOLIDATED BALANCE SHEETS

U.S dollars in thousands

December 31

2025

2024

LIABILITIES AND SHAREHOLDERS 'EQUITY

CURRENT LIABILITIES:

Current maturities of long-term loans

$2,227

$2,083

Short term loans

4,350

Accounts payable

12,986

12,158

Accrued expenses and other

17,296

18,594

Current maturities of operating lease liabilities

1,474

939

Total current liabilities

33,983

38,124

NON-CURRENT LIABILITIES:

Long-term loans

9,485

10,938

Operating lease liabilities

4,448

1,345

Liability in respect of employee rights upon retirement

770

986

Deferred tax liabilities

1,652

Total non-current liabilities

16,355

13,269

COMMITMENTS AND CONTINGENCIES (NOTE 11)

Total liabilities

50,338

51,393

SHAREHOLDERS 'EQUITY:

Ordinary shares of NIS 0 par value. Authorized: 19,000,000 shares at

December 31, 2025 and 13,000,000 shares at December 31, 2024

Issued:13,257,610 and 11,214,831 shares at December 31, 2025 and 2024,

respectively

Outstanding: 12,983,137 and 10,940,358 shares at December 31, 2025

and 2024, respectively

Additional paid-in capital

136,578

89,697

Treasury shares, at cost, 274,473 shares at December 31, 2025 and 2024

(2,088)

Accumulated other comprehensive income (loss)

643

(76)

Retained earnings

41,258

24,436

Total shareholders' equity

176,391

111,969

Total liabilities and shareholders' equity

$226,729

$163,362

TAT TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S dollars in thousands

Three Months Ended

December 31

Year ended December 31,

2025

2024

2025

2024

Revenues:

Products

$13,046

$11,879

$50,850

$47,710

Services

33,488

29,165

127,165

104,406

46,534

41,044

178,015

152,116

Cost of revenue:

Products

9,180

8,792

35,793

33,986

Services

25,636

22,769

98,124

85,116

34,816

31,561

133,917

119,102

Gross profit

11,718

9,483

44,098

33,014

Operating expenses:

Research and development, net

497

302

1,384

1,248

Selling and marketing

2,470

2,099

8,576

7,746

General and administrative

4,208

2,961

15,730

11,901

Other (income) expense

(404)

(383)

6,771

5,369

25,286

20,512

Operating income

4,947

4,114

18,812

12,502

Interest expenses

175

289

1,010

1,472

Other financial expenses, net

169

325

477

Income before taxes on income

4,740

3,656

17,477

10,553

Provision for taxes on income

519

289

2,143

195

Income before share of equity investment

4,221

3,367

15,334

10,358

Share in profits of equity investment of

affiliated companies

505

208

1,488

809

Net income

$4,726

$3,575

$16,822

$11,167

TAT TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S dollars in thousands

Three Months Ended

December 31

Year ended December 31,

2025

2024

2025

2024

Net income

$4,726

$3,575

$16,822

$11,167

Earnings per share

Basic

$0.36

$0.33

$1.39

$1.08

Diluted

$0.36

$0.32

$1.37

$1.00

Weighted average number of shares

outstanding

Basic

12,959,476

10,887,540

12,075,678

10,363,978

Diluted

13,093,285

11,707,622

12,283,312

11,215,827

TAT TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

U.S dollars in thousands

Three Months Ended

December 31,

Year ended December 31,

2025

2024

2025

2024

Net income

$4,726

$3,575

$16,822

$11,167

Other comprehensive income (loss), net:

Net unrealized losses from derivatives

(27)

Change in foreign currency translation adjustments

144

(197)

719

(76)

Total comprehensive income

$4,870

$3,378

$17,541

$11,064

Ordinary shares

Accumulated

Number of

shares issued

Amount

Additional paid-in capital

other

comprehensive

income (loss)

Treasury shares

Retained earnings

Total

shareholders' equity

BALANCE AT DECEMBER 31, 2022

9,186,019

$2,842

$66,245

$(26)

$(2,088)

$8,597

$75,570

CHANGES DURING THE YEAR ENDED DECEMBER 31, 2023:

Comprehensive income

4,672

4,725

Exercise of options

32,466

157

165

Issuance of common shares net of issuance costs of $141 thousands

1,158,600

290

9,774

10,064

Share based compensation

159

BALANCE AT DECEMBER 31, 2023

10,377,085

3,140

76,335

(2,088)

13,269

90,683

CHANGES DURING THE YEAR ENDED DECEMBER 31, 2024:

Comprehensive income (loss)

(103)

11,167

11,064

Exercise of options

164,406

(12)

Cancel of shares par value

(3,152)

3,152

Issuance of common shares net of issuance costs of $162 thousands

673,340

9,827

Share based compensation

395

BALANCE AT DECEMBER 31, 2024

11,214,831

89,697

(76)

(2,088)

24,436

111,969

CHANGES DURING THE YEAR ENDED DECEMBER 31, 2025:

Comprehensive income

719

16,822

17,541

Exercise of options

175,481

282

Issuance of common shares on public offering, net of issuance costs of $2,769 thousands

1,625,000

39,415

Exercise of the underwriters' option on public offering, net of issuance costs of $413 thousands

242,298

5,953

Share based compensation

1,231

BALANCE AT DECEMBER 31, 2025

13,257,610

$136,578

$643

$(2,088)

$41,258

$176,391

TAT TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

Three Months Ended

December 31,

Year ended

December 31,

2025

2024

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$4,726

$3,575

$16,822

$11,167

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization

1,339

1,136

5,101

5,455

Loss (gain) from change in fair value of derivatives

Net change in operating right of use asset and operating lease liability

112

Noncash financial expenses (income)

1,247

1,881

(187)

Decrease in restructuring plan provision

(63)

Change in allowance for credit losses

(149)

(228)

Share in results of affiliated companies

(505)

(208)

(1,488)

(809)

Share based compensation

551

185

1,231

395

Capital gains from sale of property, plant and equipment

(401)

(123)

(401)

(478)

Deferred income taxes, net

424

208

1,890

117

Changes in operating assets and liabilities:

Decrease (increase) in trade accounts receivable

(37)

(3,495)

(9,743)

Decrease (increase) in other current assets and prepaid expenses

394

(625)

2,235

(1,463)

Decrease (increase) in inventory

1,520

(6,510)

(7,532)

(17,165)

Increase (decrease) in trade accounts payable

(4,381)

(746)

359

2,170

Increase (decrease) in accrued expenses and other

629

2,073

(1,513)

4,691

Net cash provided by (used in) operating activities

5,565

(961)

14,974

(5,818)

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sale of property, plant and equipment

900

1,275

Purchase of property, plant and equipment

(2,044)

(1,569)

(10,954)

(5,126)

Net cash used in investing activities

(1,144)

(1,569)

(10,054)

(3,851)

TAT TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

Three Months Ended

December 31,

Year ended

December 31,

2025

2024

2025

2024

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayments of long-term loans

$(528)

$(562)

$(2,088)

$(2,016)

Net change in short term loans

1,754

(4,350)

(7,650)

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

48,550

9,827

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

(96)

(3,182)

Proceeds from exercise of options

282

Net cash provided by (used in) financing activities

(246)

1,096

39,212

161

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

4,175

(1,434)

44,132

(9,508)

Cash and cash equivalents and restricted cash at

beginning of period

47,391

8,868

7,434

16,942

Cash and cash equivalents and restricted cash at end of period

$51,566

$7,434

$51,566

$7,434

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

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

104

165

3,859

983

Reclassification of inventory to property, plant and equipment

579

155

Supplemental disclosure of cash flow information:

Interest paid

111

1,001

1,400

TAT TECHNOLOGIES LTD.

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

U.S. dollars in thousands

Three Months Ended

December 31,

Year ended December 31,

2025

2024

2025

2024

Net income

$4,726

$3,575

$16,822

$11,167

Adjustments:

Share in results and sale of equity investment of affiliated companies

(505)

(208)

(1,488)

(809)

Provision for income taxes

519

289

2,143

195

Financial expenses, net

207

458

1,335

1,949

Depreciation and amortization

1,385

1,254

5,410

5,717

Share based compensation

551

185

1,231

395

Adjusted EBITDA

$6,883

$5,553

$25,453

$18,614

SOURCE TAT Technologies Ltd