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Tat Technologies Ltd (TATT)
NASDAQ:TATT
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Tat Techno (TATT) AI Stock Analysis

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TATT

Tat Techno

(NASDAQ:TATT)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
$46.00
▲(14.94% Upside)
Tat Techno's overall stock score is driven by strong financial performance and positive earnings call highlights, reflecting robust revenue growth and strategic expansion. Technical analysis supports a bullish outlook, although valuation concerns and cash flow challenges temper the score.
Positive Factors
Revenue Growth
Consistent revenue growth of 18% YoY indicates strong market demand and effective business strategies, supporting long-term expansion.
Strategic Partnerships
The Boeing contract enhances TAT's market position in the APU sector, leveraging strategic partnerships to drive sustainable revenue.
Financial Flexibility
The capital raise strengthens TAT's balance sheet, providing resources for potential acquisitions and strategic growth initiatives.
Negative Factors
Cash Flow Challenges
Persistent negative cash flow indicates inefficiencies in converting income to cash, potentially limiting operational flexibility.
MRO Intake Weakness
Weakness in MRO intake could impact revenue stability, highlighting potential vulnerabilities in customer demand and market conditions.
Exchange Rate Impact
Exchange rate volatility can affect cost structures and profitability, posing a risk to financial performance in international markets.

Tat Techno (TATT) vs. SPDR S&P 500 ETF (SPY)

Tat Techno Business Overview & Revenue Model

Company DescriptionTAT 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 segments: Original Equipment Manufacturing (OEM) of Heat Transfer Solutions and Aviation Accessories; Maintenance, Repair, and Overhaul (MRO) Services for Heat Transfer Components and OEM of Heat Transfer Solutions; MRO Services for Aviation Components; and Overhaul and Coating of Jet Engine Components. It designs, develops, and manufactures a range of heat transfer solutions, such as pre-cooler and oil/fuel hydraulic heat exchangers used in mechanical and electronic systems in commercial, military, and business aircraft; environmental control and power electronics cooling systems for use in aircraft and ground applications; and a range of other mechanical aircraft accessories and systems, such as pumps, valves, and turbine power units. The company also provides MRO services for heat transfer components, as well as for manufacturing heat transfer solutions; and aviation components. In addition, it engages in the operation of a repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers, and the military; and the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes, and afterburner flaps. The company was formerly known as Galagraph Ltd. and changed its name to TAT Technologies Ltd. in May 1992. TAT Technologies Ltd. was founded in 1969 and is based in Netanya, Israel.
How the Company Makes MoneyTat Techno generates revenue through multiple streams, primarily by offering subscription-based software services and cloud solutions to businesses. This model provides a steady income as companies pay recurring fees for access to TATT's platforms. Additionally, TATT engages in custom software development projects, charging clients for tailored solutions that meet specific operational needs. The company also benefits from partnerships with telecommunications providers, which allows for bundled service offerings and shared revenue from joint ventures. Furthermore, TATT invests in research and development to create proprietary technologies that can be licensed to other firms, further diversifying its income sources.

Tat Techno Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with significant revenue growth, improved profitability, and successful expansion of long-term agreements and backlog. Despite challenges in MRO intake and exchange rate impacts, TAT demonstrated operational resilience and maintained positive cash flow. The company's strategic initiatives and successful public offering bolster its financial flexibility and growth potential.
Q2-2025 Updates
Positive Updates
Revenue Growth and Profitability
Second quarter revenue increased by 18% to $43.1 million compared to $36.5 million in Q2 of 2024. For the first 6 months of 2025, revenue grew by 21% to $85.2 million. Gross profit increased by 35% and gross margin expanded by 320 basis points to 25.1%. Adjusted EBITDA increased by 41.9% to $6.1 million, with a notable adjusted EBITDA margin improvement from 11.9% to 14.0%.
Long-term Agreements and Backlog Growth
Long-term agreement value and backlog expanded by $85 million to $524 million, reflecting both new contract wins and continued customer base expansion. This includes a major win with a cargo carrier valued at $40 million to $55 million.
Operational Flexibility and Cash Flow
Operational flexibility allowed TAT to offset softer MRO volumes by capitalizing on trading opportunities, resulting in approximately $7 million in positive cash flow from operations in the quarter.
Successful Public Offering
Completed a successful public offering, raising $45 million and increasing financial flexibility to pursue potential accretive acquisitions and enhance growth profile.
Negative Updates
MRO and APU Volatility
Experienced some weaknesses in MRO intake, with APU work decreasing slightly on a sequential basis due to short-term shifts in customer behavior and macroeconomic uncertainties.
Exchange Rate Impact
Suffered from the strength of the Israeli shekel compared to the U.S. dollar, resulting in an increase of cost from exchange rate differences by over $0.5 million, reducing net profit by $400,000 in Q2 2025 compared to Q1 2025.
Company Guidance
In the second quarter of 2025, TAT Technologies reported an 18% year-over-year increase in revenue, reaching $43 million, with a notable 21% growth for the first half of the year compared to the previous year. The company achieved a gross profit increase of 35%, with gross margins expanding by 320 basis points to 25.1%. Adjusted EBITDA rose by 41.9% to $6.1 million, representing an adjusted EBITDA margin of 14.0%. The company's backlog and long-term agreement value expanded by $85 million, reaching $524 million, reflecting new contract wins and increased long-term visibility. Despite some short-term MRO intake weaknesses, TAT Technologies capitalized on trading opportunities, tripling its trading and leasing revenue. The company also completed a successful public offering, raising $45 million to enhance financial flexibility for potential acquisitions. TAT Technologies continues to focus on operational efficiencies and strategic growth, with a disciplined approach to M&A, aiming to expand its addressable market and accelerate growth.

Tat Techno Financial Statement Overview

Summary
Tat Techno shows strong revenue growth and improved profitability, with increased gross and net profit margins. However, cash flow challenges and operational inefficiencies suggest potential liquidity issues that need addressing.
Income Statement
78
Positive
Tat Techno has demonstrated significant revenue growth, increasing from $75.4M in 2020 to $152.1M in 2024, reflecting a robust expansion strategy. The gross profit margin has improved from 10.8% in 2020 to 21.7% in 2024, highlighting better cost management or pricing strategies. The net profit margin also shows positive growth, moving from a negative 4.4% in 2020 to a positive 7.3% in 2024, indicating enhanced profitability. However, EBIT and EBITDA margins, while improving, suggest some operational challenges that need addressing.
Balance Sheet
65
Positive
The company's debt-to-equity ratio has improved, moving from 0.19 in 2020 to 0.18 in 2024, indicating a conservative approach to debt. The return on equity (ROE) has increased from negative values in early years to 10% in 2024, showing improved efficiency in generating profits from shareholders' investments. However, the equity ratio has decreased slightly from 69.1% in 2020 to 68.5% in 2024, suggesting a slight increase in leverage.
Cash Flow
55
Neutral
Tat Techno has faced challenges with free cash flow, with significant negative values over the years, culminating in -$10.9M in 2024. The operating cash flow to net income ratio is negative, suggesting that the company is not efficiently converting its net income into cash. However, the company has shown resilience by reducing negative free cash flow from -$21M in 2022 to -$10.9M in 2024.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue152.12M113.79M84.56M77.97M75.36M
Gross Profit33.01M22.47M15.93M11.27M8.44M
EBITDA17.48M11.14M2.96M989.00K248.00K
Net Income11.17M4.67M-1.75M-3.91M-3.30M
Balance Sheet
Total Assets163.36M145.58M126.65M110.83M116.12M
Cash, Cash Equivalents and Short-Term Investments7.13M16.64M7.72M12.87M24.13M
Total Debt19.66M29.95M29.82M15.84M15.34M
Total Liabilities51.39M54.89M51.08M34.05M35.84M
Stockholders Equity111.97M90.68M75.57M76.78M80.28M
Cash Flow
Free Cash Flow-10.94M-3.33M-21.08M-18.29M693.00K
Operating Cash Flow-5.82M2.25M-4.87M-1.49M6.10M
Investing Cash Flow-3.85M-3.58M-16.12M-15.64M-5.41M
Financing Cash Flow161.00K10.24M15.80M6.04M7.65M

Tat Techno Technical Analysis

Technical Analysis Sentiment
Positive
Last Price40.02
Price Trends
50DMA
36.35
Positive
100DMA
33.05
Positive
200DMA
30.14
Positive
Market Momentum
MACD
1.43
Negative
RSI
57.84
Neutral
STOCH
55.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TATT, the sentiment is Positive. The current price of 40.02 is above the 20-day moving average (MA) of 38.06, above the 50-day MA of 36.35, and above the 200-day MA of 30.14, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 55.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TATT.

Tat Techno Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
208.89M17.8720.60%72.82%80.22%
72
Outperform
90.10M26.3729.34%13.81%
70
Outperform
$515.75M32.6310.47%25.96%68.93%
56
Neutral
1.30B-36.77-24.04%87.67%18.33%
49
Neutral
5.99B-7.26-4.00%
25
Underperform
535.99M-0.48
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TATT
Tat Techno
40.02
21.68
118.21%
ISSC
Innovative Solutions And Support
11.85
5.33
81.75%
CODA
Coda Octopus Group
8.01
0.76
10.48%
EH
Ehang Holdings
18.07
3.93
27.79%
EVTL
Vertical Aerospace
5.44
-1.49
-21.50%
ACHR
Archer Aviation
9.28
6.25
206.27%

Tat Techno Corporate Events

TAT Technologies Secures $12 Million Boeing 777 MRO Contract
Aug 18, 2025

On August 18, 2025, TAT Technologies Ltd. announced a significant three-year contract with an international airline to provide MRO services for the GTCP331-500 Auxiliary Power Unit used on the Boeing 777 platform. The contract, valued at approximately $12 million, underscores TAT’s expanding presence in the APU market and highlights the company’s strategic growth and synergy between its leasing and MRO businesses. This agreement further solidifies TAT’s market position and enhances its long-term customer relationships, leveraging strategic partnerships such as those with Honeywell to capture tangible revenue opportunities.

TAT Technologies Announces Securities Offering to Boost Market Position
Aug 11, 2025

On August 11, 2025, TAT Technologies Ltd. announced the filing of a registration statement with the U.S. Securities and Exchange Commission for a proposed securities offering. The company highlighted its strategic focus on expanding market share in the aerospace sector, leveraging its partnerships and contracts. This move is expected to enhance TAT’s market positioning and provide growth opportunities, although it involves certain risks and uncertainties.

TAT Technologies Reports Strong Q2 2025 Financial Growth
Aug 11, 2025

On August 11, 2025, TAT Technologies Ltd. reported its second quarter 2025 financial results, showcasing significant growth and profitability. The company achieved an 18% increase in revenue to $43.1 million and a 35.6% rise in gross profit compared to the same period in 2024. Operating income and net income also saw substantial increases, reflecting the company’s strategic diversification across trading and MRO/OEM segments. The company completed a $45 million capital raise, strengthening its balance sheet and positioning it for future growth. TAT Technologies continues to outperform the industry, with a growing backlog and new contract wins, including for the 777APU, and is exploring strategic opportunities to enhance growth prospects.

TAT Technologies Reports Strong Asset Growth in Mid-2025 Financials
Aug 11, 2025

On August 11, 2025, TAT Technologies Ltd. released its unaudited condensed consolidated financial statements for the period ended June 30, 2025. The report highlights a significant increase in total assets from $163.4 million in December 2024 to $213.6 million in June 2025, indicating a positive financial trajectory. This growth in assets, coupled with a reduction in current liabilities, suggests an improved financial position, which could enhance the company’s competitiveness in the aviation industry and provide reassurance to stakeholders about its financial health.

TAT Technologies Secures $10 Million Defense Contract
Jul 28, 2025

On July 28, 2025, TAT Technologies Ltd. announced a new $10 million contract with an Israeli defense integrator, increasing its cumulative expected revenues from defense sector contracts to $22 million year-to-date. This contract underscores TAT’s strategic role as a trusted supplier to the Israeli Air Force and defense integrators, positioning the company to meet growing demand amid recent geopolitical developments and increased defense budgets in Israel.

TAT Technologies Strengthens Board with New Appointments
Jul 21, 2025

On July 18, 2025, TAT Technologies Ltd. announced the appointment of Igal Zamir and Amir Harel to its Board of Directors, filling vacancies in accordance with Israel’s Companies Law. These appointments are effective immediately and will last until the next Annual General Meeting. Mr. Zamir, the current CEO and President of TAT Technologies, brings extensive leadership experience, while Mr. Harel, recognized as an independent director, has a strong financial background. This strategic move is expected to strengthen the company’s governance and enhance its market positioning.

TAT Technologies Completes Sale of Additional Shares, Raising $6.3 Million
Jun 26, 2025

On June 26, 2025, TAT Technologies Ltd. announced the completion of the sale and issuance of additional ordinary shares following the full exercise of the underwriters’ option in connection with its public offering. The company raised $6.3 million in gross proceeds from the sale of these shares, which it plans to use for general corporate purposes. This move is expected to bolster TAT Technologies’ financial standing and operational capacity, further strengthening its position in the aerospace and defense industries.

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.Date of analysis: Sep 19, 2025