TAT Technologies (NASDAQ:TATT) Posts Quarterly Earnings Results, Beats Expectations By $0.07 EPS

TAT Technologies (NASDAQ:TATT) announced its quarterly earnings results on Wednesday. The aerospace company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.19 by $0.07, FiscalAI reports. The business had revenue of $41.15 million during the quarter, compared to analysts’ expectations of $40.25 million. TAT Technologies had a return on equity of 9.60% and a net margin of 9.27%.

Here are the key takeaways from TAT Technologies’ conference call:

• Backlog and long-term agreements hit a record $580 million at quarter-end, up from $550 million at year-end 2025, driven mainly by new contract wins and strong intake across the business.
• Q1 revenue declined slightly year over year to $41.1 million as supply-chain issues delayed completion and shipment of APU and landing gear work orders, rather than reflecting weaker demand.
• Gross margin expanded to 24.4% from 23.6% in the prior-year quarter, supported by cost discipline, operational efficiency improvements, and ongoing structural progress.
• The company generated positive operating cash flow of $1.9 million and ended the quarter with $51.2 million in cash versus only $11.2 million of debt, leaving TAT well-positioned to fund growth and M&A.
• Management said the supply shortage is improving and expects a gradual recovery over the next few months, with 2026 still viewed as a year of meaningful revenue and EBITDA growth. TAT also reiterated that M&A remains a priority, with a growing pipeline and a disciplined approach to acquisitions.

TAT Technologies Stock Down 5.9%

TAT Technologies stock opened at $37.20 on Friday. The firm has a market cap of $482.86 million, a price-to-earnings ratio of 28.84 and a beta of 0.96. The firm has a fifty day moving average price of $41.32 and a two-hundred day moving average price of $44.81. TAT Technologies has a fifty-two week low of $25.52 and a fifty-two week high of $64.50. The company has a debt-to-equity ratio of 0.05, a current ratio of 4.89 and a quick ratio of 2.67.

Analysts Set New Price Targets

Several brokerages recently weighed in on TATT. Stifel Nicolaus raised their price objective on shares of TAT Technologies from $47.00 to $60.00 and gave the company a “buy” rating in a research report on Friday, March 20th. Benchmark raised their price objective on shares of TAT Technologies from $58.00 to $66.00 and gave the company a “buy” rating in a research report on Thursday, March 12th. Truist Financial raised shares of TAT Technologies to a “strong-buy” rating in a research report on Friday, May 1st. B. Riley Financial began coverage on shares of TAT Technologies in a research report on Wednesday, April 8th. They set a “buy” rating and a $61.00 price objective on the stock. Finally, Zacks Research lowered shares of TAT Technologies from a “hold” rating to a “strong sell” rating in a research report on Tuesday, April 14th. Three analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $57.29.

Hedge Funds Weigh In On TAT Technologies

A number of institutional investors have recently made changes to their positions in the business. Wasatch Advisors LP increased its stake in shares of TAT Technologies by 5.5% in the third quarter. Wasatch Advisors LP now owns 824,238 shares of the aerospace company’s stock worth $36,291,000 after purchasing an additional 43,022 shares during the period. Russell Investments Group Ltd. increased its stake in shares of TAT Technologies by 71.2% in the fourth quarter. Russell Investments Group Ltd. now owns 258,153 shares of the aerospace company’s stock worth $11,529,000 after purchasing an additional 107,353 shares during the period. Boston Partners increased its stake in shares of TAT Technologies by 38.8% in the fourth quarter. Boston Partners now owns 223,498 shares of the aerospace company’s stock worth $9,984,000 after purchasing an additional 62,510 shares during the period. Marshall Wace LLP increased its stake in shares of TAT Technologies by 31.6% in the second quarter. Marshall Wace LLP now owns 80,987 shares of the aerospace company’s stock worth $2,473,000 after purchasing an additional 19,428 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its stake in shares of TAT Technologies by 70.9% in the second quarter. Arrowstreet Capital Limited Partnership now owns 74,984 shares of the aerospace company’s stock worth $2,316,000 after purchasing an additional 31,104 shares during the period. 15.13% of the stock is currently owned by institutional investors.

About TAT Technologies

TAT Technologies Ltd. is a global provider of environmental control and thermal management solutions for the aerospace industry. The company specializes in the design, manufacturing and support of aircraft environmental control systems (ECS), heat exchangers and related components. Its product portfolio serves commercial and military airframers, engine manufacturers and airlines, offering critical systems that regulate cabin pressure, temperature and ventilation on fixed-wing and rotary aircraft.

Key offerings include air cycle machines, preconditioned air units, steam/water separators and specialty heat exchangers engineered to meet stringent aerospace standards.