Tat Technologies Ltd (TATT)
NASDAQ:TATT
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Tat Techno
(NASDAQ:TATT)
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Rating:67Neutral
Price Target:
$39.00
▼(-3.99% Downside)
Action:ReiteratedDate:04/01/26
The score is driven primarily by improving fundamentals and a conservative balance sheet, reinforced by constructive guidance and a record backlog. These positives are offset by weak technicals (bearish momentum) and a relatively high P/E with no dividend, alongside ongoing cash-flow volatility and supply-chain/timing risks highlighted on the earnings call.
Positive Factors
Large, Growing Backlog
A record ~$550M backlog backed by long‑term agreements materially increases multi‑period revenue visibility and underpins organic growth. This durable contract coverage supports capacity planning, reduces short‑term demand risk and provides a foundation for disciplined, accretive M&A and reinvestment.
Negative Factors
Volatile Cash Generation
Operating and free cash flow have swung materially year‑to‑year, with negative periods and a modest 2025 recovery. Inconsistent cash conversion means earnings do not reliably translate to free cash flow, constraining investment capacity, increasing reliance on external capital timing, and raising execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, Growing Backlog
A record ~$550M backlog backed by long‑term agreements materially increases multi‑period revenue visibility and underpins organic growth. This durable contract coverage supports capacity planning, reduces short‑term demand risk and provides a foundation for disciplined, accretive M&A and reinvestment.
Read all positive factors
Tat Techno (TATT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$472.85M
Dividend YieldN/A
Average Volume (3M)214.57K
Price to Earnings (P/E)30.6
Beta (1Y)0.75
Revenue Growth17.03%
EPS Growth32.03%
CountryUS
Employees634
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.39
Shares Outstanding12,983,137
10 Day Avg. Volume183,347
30 Day Avg. Volume214,573
Financial Highlights & Ratios
PEG Ratio1.12
Price to Book (P/B)3.06
Price to Sales (P/S)3.03
P/FCF Ratio134.15
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue2.47
Enterprise Value/Gross Profit9.96
Enterprise Value/Ebitda18.62
Forecast
1Y Price Target
$59.75Price Target Upside47.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.47
Revenue Forecast (FY)$197.03M
Tat Techno Business Overview & Revenue Model
Company Description
TAT Technologies Ltd., together with its subsidiaries, provides solutions and services to the commercial and military aerospace, and ground defense industries in the United States, Israel, and internationally. The company operates through four seg...
How the Company Makes Money
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Tat Techno Earnings Call Summary
Earnings Call Date:Mar 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Positive
The call communicated strong, broad-based financial and operational progress — record revenue, expanded backlog, margin expansion, sizable adjusted EBITDA and net income growth, improved cash generation and a strengthened balance sheet. These positives were tempered by ongoing supply chain constraints (notably in APUs and landing gear), some segment timing-related softness (heat exchangers), currency-related financial expense headwinds and near-term volatility in revenue recognition. Management emphasized strategic readiness (capital raised, expanded credit facility, hires, M&A pipeline) and expressed confidence in 2026 despite near-term operational challenges.Positive Updates
Record Revenue and Sustained Organic Growth
Full-year 2025 revenue increased more than 17% year-over-year; fourth quarter revenue grew 13% to $46.5 million (from $41.1 million). Company reported 12 consecutive quarters of double-digit, all-organic revenue growth.
Negative Updates
Ongoing Supply Chain Disruptions
Persistent parts availability issues and supplier lead-time extensions, particularly impacting APU and landing gear services, reduced throughput and affected profitability and turnaround times. Management noted another wave of disruptions beginning in Q4 that continued into Q1 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Sustained Organic Growth
Full-year 2025 revenue increased more than 17% year-over-year; fourth quarter revenue grew 13% to $46.5 million (from $41.1 million). Company reported 12 consecutive quarters of double-digit, all-organic revenue growth.
Read all positive updates
Company Guidance
Management guided that 2026 should be “another strong year,” citing a record backlog/long‑term agreement value of approximately $550 million (up from $520M in Q3 and $429M at year‑end 2024) and recent intake that supports continued organic growth after 2025 revenue rose >17% (Q4 revenue +13% to $46.5M). They pointed to strong profitability and cash metrics underpinning the outlook—Q4 gross margin 25.2% (+210 bps YoY) and gross profit +23.6%; Q4 adjusted EBITDA $6.9M (14.8%) and FY adjusted EBITDA $25.5M (14.3%, +37% YoY); FY operating income $18.8M (+50.4%) and net income $16.8M (+50.6%); cash flow from operations $5.6M in Q4 and $15M for FY2025 (60% cash conversion of adjusted EBITDA). Management tempered the outlook with near‑term risk—ongoing supply‑chain delays (notably APU and landing‑gear parts) expected to affect Q1 2026 timing—but emphasized a strong balance sheet (cash $51.6M, total debt $11.7M, debt/EBITDA 0.46, shareholders’ equity $176.4M, equity/assets 78%), higher MRO mix (71.4% of revenue vs 68.6% in 2024), and a stated priority on accretive bolt‑on M&A as levers to drive further growth and margin expansion.Tat Techno Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 178.01M | 152.12M | 113.79M | 84.56M | 77.97M |
| Gross Profit | 44.10M | 33.01M | 22.47M | 15.93M | 11.27M |
| EBITDA | 23.51M | 17.48M | 11.14M | 2.96M | 556.00K |
| Net Income | 16.82M | 11.17M | 4.67M | -1.56M | -3.56M |
Balance Sheet | |||||
| Total Assets | 226.73M | 163.36M | 145.58M | 126.65M | 110.83M |
| Cash, Cash Equivalents and Short-Term Investments | 51.26M | 7.13M | 16.64M | 7.72M | 12.87M |
| Total Debt | 17.63M | 19.66M | 29.95M | 29.82M | 15.84M |
| Total Liabilities | 50.34M | 51.39M | 54.89M | 51.08M | 34.05M |
| Stockholders Equity | 176.39M | 111.97M | 90.68M | 75.57M | 76.78M |
Cash Flow | |||||
| Free Cash Flow | 4.02M | -10.94M | -3.33M | -21.08M | -17.74M |
| Operating Cash Flow | 14.97M | -5.82M | 2.25M | -4.87M | -1.49M |
| Investing Cash Flow | -10.05M | -3.85M | -3.58M | -16.12M | -15.64M |
| Financing Cash Flow | 39.21M | 161.00K | 10.24M | 15.80M | 6.04M |
Tat Techno Technical Analysis
Negative
40.62
Price Trends
49.63
Negative
47.55
Negative
42.59
Negative
Market Momentum
-2.33
Negative
38.93
Neutral
35.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TATT, the sentiment is Negative. The current price of 40.62 is below the 20-day moving average (MA) of 42.55, below the 50-day MA of 49.63, and below the 200-day MA of 42.59, indicating a bearish trend. The MACD of -2.33 indicates Negative momentum. The RSI at 38.93 is Neutral, neither overbought nor oversold. The STOCH value of 35.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TATT.
Tat Techno Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $472.85M | 30.62 | 10.69% | ― | 17.03% | 32.03% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $756.28M | 7.92 | 16.37% | ― | 86.57% | ― | |
53 Neutral | $2.20B | -5.38 | -29.03% | ― | 33.58% | -18.98% | |
52 Neutral | $230.76M | -1,220.98 | -0.61% | ― | ― | ― | |
46 Neutral | $1.13B | -3.14 | -258.98% | ― | ― | -33.98% | |
44 Neutral | $357.79M | 0.68 | 243.82% | ― | ― | ― |
* Industrials Sector Average
TATT
Tat Techno
36.42
2.28
6.68%
EVTL
Vertical Aerospace
2.81
-1.50
-34.80%
EVEX
Eve Holding
3.23
-0.65
-16.75%
SKYH
Sky Harbour Group
9.93
-1.72
-14.76%
RDW
Redwire
11.07
-0.24
-2.12%
AIRO
Airo Group Holdings, Inc.
7.34
-23.66
-76.32%
Tat Techno Corporate Events
Tat Technologies Showcases 2025 Results and $550 Million Backlog in March 2026 Investor Update
Mar 18, 2026
Tat Technologies Ltd., a dual-listed aerospace thermal solutions and MRO specialist, reported its 2025 results in an investor presentation dated March 18, 2026. The company highlights over 60 years of experience in thermal systems, exclusive and a...
TAT Technologies Posts Record 2025 Results with Higher Margins and Backlog
Mar 18, 2026
On March 18, 2026, TAT Technologies reported record results for the fourth quarter and full year ended December 31, 2025, marking its third consecutive year of growth across key metrics. Revenue rose 13.4% in Q4 to $46.5 million and 17.0% for 2025...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.