TAT Technologies (NASDAQ:TATT) Announces Earnings Results

TAT Technologies (NASDAQ:TATT) posted its earnings results on Wednesday. The aerospace company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.30 by $0.05, FiscalAI reports. TAT Technologies had a net margin of 9.27% and a return on equity of 9.47%. The company had revenue of $52.94 million for the quarter, compared to analyst estimates of $44.86 million.

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

• Record backlog and strong demand drove second-quarter revenue up nearly 23% year over year to $52.9 million, with backlog and long-term agreements reaching a record $650 million.
• The expanded Honeywell relationship makes TAT the sole global authorized distributor of spare parts for the 331-250 APU platform, extends the MRO license through 2036, and adds three 131-9A APUs to its trading and leasing business.
• Profitability improved despite supply-chain inefficiencies, with operating margin rising to 10.6% and gross margin remaining above 25%; management expects further operating leverage as revenue grows.
• Supply-chain constraints remain a risk, particularly in landing gear and APU parts, where lead times can exceed 12 months. The company is increasing inventory and paying higher procurement costs, which is pressuring margins and near-term cash flow.
• Net income benefited from a $4.3 million one-time gain, while operating cash flow was negative $0.6 million due to inventory investments and delayed collections. Management is evaluating a robust M&A pipeline, intending to maintain disciplined valuations and moderate leverage.

TAT Technologies Stock Up 2.6%

Shares of TATT stock traded up $1.10 during trading on Wednesday, reaching $42.75. The company’s stock had a trading volume of 637,070 shares, compared to its average volume of 195,650. The company has a debt-to-equity ratio of 0.05, a current ratio of 4.69 and a quick ratio of 2.46. The company has a market capitalization of $555.71 million, a price-to-earnings ratio of 33.14 and a beta of 1.00. The stock’s 50-day moving average price is $43.36 and its 200 day moving average price is $45.13. TAT Technologies has a 1-year low of $30.35 and a 1-year high of $64.50.

Analyst Ratings Changes

A number of research firms recently commented on TATT. Benchmark reiterated a “buy” rating on shares of TAT Technologies in a report on Wednesday, July 15th. 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 for the company. Truist Financial raised TAT Technologies to a “strong-buy” rating in a research report on Friday, May 1st. Weiss Ratings cut TAT Technologies from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, June 15th. Finally, William Blair reaffirmed a “hold” rating on shares of TAT Technologies in a research note on Wednesday, July 15th. Three equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, TAT Technologies presently has a consensus rating of “Buy” and an average target price of $57.29.

Insider Buying and Selling

In other TAT Technologies news, COO Jason Lewandowski sold 3,125 shares of the business’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $39.22, for a total value of $122,562.50. Following the completion of the transaction, the chief operating officer owned 3,125 shares in the company, valued at $122,562.50. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Paul Maness sold 5,000 shares of the company’s stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $45.41, for a total value of $227,050.00. Following the sale, the insider directly owned 5,000 shares in the company, valued at $227,050. This represents a 50.00% decrease in their position. The SEC filing for this sale provides additional information. 8.75% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. purchased a new stake in TAT Technologies during the 1st quarter worth about $207,000. Jane Street Group LLC boosted its stake in shares of TAT Technologies by 125.8% in the 1st quarter. Jane Street Group LLC now owns 32,344 shares of the aerospace company’s stock valued at $889,000 after buying an additional 18,020 shares during the period. JPMorgan Chase & Co. grew its position in shares of TAT Technologies by 470.4% during the second quarter. JPMorgan Chase & Co. now owns 69,618 shares of the aerospace company’s stock worth $2,126,000 after buying an additional 57,412 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in shares of TAT Technologies by 70.9% during the second quarter. Arrowstreet Capital Limited Partnership now owns 74,984 shares of the aerospace company’s stock worth $2,316,000 after buying an additional 31,104 shares in the last quarter. Finally, Walleye Capital LLC increased its stake in shares of TAT Technologies by 49.1% during the second quarter. Walleye Capital LLC now owns 12,343 shares of the aerospace company’s stock worth $377,000 after buying an additional 4,062 shares during the period. 15.13% of the stock is owned by institutional investors and hedge funds.

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.