TAT Technologies (NASDAQ:TATT) Announces Earnings Results, Beats Expectations By $0.19 EPS

TAT Technologies (NASDAQ:TATT) released its quarterly earnings data on Monday. The aerospace company reported $0.58 EPS for the quarter, topping analysts’ consensus estimates of $0.39 by $0.19, FiscalAI reports. TAT Technologies had a return on equity of 11.25% and a net margin of 12.17%. The business had revenue of $55.56 million during the quarter, compared to the consensus estimate of $52.84 million.

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

• Record quarterly performance: Q3 revenue rose 20.2% year over year to $55.6 million, while adjusted EBITDA increased 60.9% to a record $10.9 million. Gross margin expanded to 30.9%, driven by stronger product mix, operational efficiencies, and higher-margin distribution activity.
• APU growth regained full run rate: APU revenue increased 34.4% in Q3 as supply-chain conditions improved, capacity increased, and recently won contracts began contributing. Management expects strong APU demand to continue into Q4 and 2027.
• The expanded Honeywell relationship and new distribution channel are broadening TAT’s addressable market and supporting profitability. Management said distribution revenue is not yet significant, but its profit contribution is meaningful and expected to support margins for years.
• Trading, leasing, and distribution revenue surged 85.5% in Q3, but management cautioned that the business will remain lumpy because results depend on the timing and availability of large transactions. The company views year-to-date performance as the base for future growth.
• Backlog declined to $577 million from $615 million after TAT removed $34 million of landing-gear contracts that it could not currently fulfill because of component shortages. Landing gear represented less than 4% of quarterly revenue, while management shifted capacity toward APU work; income-tax payments are also expected to begin in 2027 at an estimated 15%–19% rate.

TAT Technologies Stock Performance

Shares of NASDAQ:TATT traded down $0.59 during trading hours on Wednesday, hitting $38.20. The stock had a trading volume of 52,734 shares, compared to its average volume of 177,940. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.61 and a current ratio of 4.83. The stock’s fifty day simple moving average is $35.58 and its 200 day simple moving average is $42.33. The firm has a market capitalization of $496.63 million, a price-to-earnings ratio of 21.19 and a beta of 1.04. TAT Technologies has a 1-year low of $30.47 and a 1-year high of $64.50.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on TATT. Weiss Ratings lowered shares of TAT Technologies from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 16th. B. Riley Financial reissued a “buy” rating and set a $63.00 price objective (up from $60.00) on shares of TAT Technologies in a report on Tuesday. UBS Group reissued a “buy” rating on shares of TAT Technologies in a research report on Tuesday. William Blair reaffirmed a “hold” rating on shares of TAT Technologies in a research report on Wednesday, July 15th. Finally, Benchmark reissued a “buy” rating on shares of TAT Technologies in a report on Tuesday, August 25th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $58.83.

About TAT Technologies

TAT Technologies Ltd. is an aerospace and defense company headquartered in Netanya, Israel. The company develops, manufactures, and services thermal-management and other specialized systems used in commercial, military, business, and general aviation applications.

Its product portfolio includes heat exchangers, air-conditioning and environmental-control components, air-cycle machines, pre-coolers, oil coolers, fuel heaters, pumps, and related aircraft systems. TAT also provides maintenance, repair, and overhaul services for aircraft heat-transfer equipment, auxiliary power units, landing-gear components, and other aviation parts.

Through its operations in Israel and the United States, TAT Technologies serves aircraft manufacturers, airlines, aerospace and defense contractors, and government customers.