T.A.T. Technologies Ltd (TATT)
NASDAQ:TATT
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Tat Techno
(NASDAQ:TATT)
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Rating:61Neutral
Price Target:
$46.00
▲(13.24% Upside)
Action:Reiterated
Date:05/24/26
The score is driven primarily by improving profitability and a low-leverage balance sheet, supported by constructive earnings-call indicators like a record backlog and guidance for 2026 growth. Offsetting these positives are weaker technical trends (below key moving averages with negative MACD), a relatively expensive valuation (high P/E), and near-term execution risk from supply-chain disruptions that are pressuring earnings and create timing uncertainty for revenue recovery.
Positive Factors
Record backlog and long-term contracts
A record ~$580M backlog and multi-year MRO contracts provide durable revenue visibility and backlog convertibility once supply constraints ease. That contracted demand supports multi-quarter planning, reduces near-term volume volatility, and underpins predictable aftermarket cash flows and pricing leverage.
Negative Factors
Industry-wide supply-chain shortages
Widespread component shortages directly delay revenue recognition and create underused capacity, weakening near-term margins and cash flow. If persistent, these supply constraints can erode customer relationships, slow backlog conversion, and increase cost-to-serve, making recovery timing and earnings visibility uncertain.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog and long-term contracts
A record ~$580M backlog and multi-year MRO contracts provide durable revenue visibility and backlog convertibility once supply constraints ease. That contracted demand supports multi-quarter planning, reduces near-term volume volatility, and underpins predictable aftermarket cash flows and pricing leverage.
Read all positive factors
Tat Techno (TATT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$571.39M
Dividend YieldN/A
Average Volume (3M)207.96K
Price to Earnings (P/E)34.8
Beta (1Y)0.78
Revenue Growth10.52%
EPS Growth8.78%
CountryUS
Employees634
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.30
Shares Outstanding12,983,137
10 Day Avg. Volume264,515
30 Day Avg. Volume207,962
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 Cap0.92
Enterprise Value/Revenue2.98
Enterprise Value/Gross Profit11.95
Enterprise Value/Ebitda23.85
Forecast
1Y Price Target
$60.00Price Target Upside47.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.54
Revenue Forecast (FY)$196.96M
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:May 20, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 01, 2026
Earnings Call Sentiment Positive
The call presents a largely constructive view: demand fundamentals are strong (record backlog, record APU intake, robust heat exchanger performance and Trading & Listing growth) and the company has strengthened its balance sheet, cash flow and M&A capabilities. The primary near-term headwind is an industry-wide shortage of commodity-level parts that temporarily delayed revenue recognition and pressured operating profits. Management believes the disruption is bounded and expects a gradual recovery over the coming months, leaving the long-term growth and margin expansion thesis intact.Positive Updates
Record Backlog Growth
Backlog and long-term agreements reached a record ~$580 million as of March 31, up from $550 million at the end of 2025 (≈+5.5%), driven mostly by new contract wins and strong MRO intake.
Negative Updates
Supply Chain Disruptions Caused Timing Delays
Industry-wide shortages of commodity-level parts prevented final assembly and release of completed units (notably APUs and some Landing Gear), shifting contracted volume into future periods and depressing near-term revenue recognition.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Backlog Growth
Backlog and long-term agreements reached a record ~$580 million as of March 31, up from $550 million at the end of 2025 (≈+5.5%), driven mostly by new contract wins and strong MRO intake.
Read all positive updates
Company Guidance
Management's guidance was that the supply‑chain disruptions are temporary and should be resolved over the next few months (with recovery progressing into the second half of 2026), at which point contracted volume in a record backlog of approximately $580 million (up from $550M at year‑end 2025) and roughly $15.5 million of open APU/landing‑gear work should convert to revenue; in Q1 they reported revenue of $41.1M (vs. $42.1M a year ago), gross profit $10.0M (+0.8% YoY) with gross margin expanding ~80 bps to 24.4%, operating income $3.0M (7.3% of revenue), adjusted EBITDA $4.9M (11.8%), net income $3.4M (EPS $0.26), operating cash flow +$1.9M (vs. -$5.0M prior), cash $51.2M, total debt $11.2M (debt/EBITDA 0.45), and shareholders’ equity $180.5M (77.5% equity ratio); management reiterated expectations for full‑year revenue and EBITDA growth, further gross‑margin improvement in 2026, and continued disciplined M&A activity (targeting at least one accretive deal).Tat Techno Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
83
Very Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 177.02M | 178.01M | 152.12M | 113.79M | 84.56M | 77.97M |
| Gross Profit | 44.17M | 44.10M | 33.01M | 22.47M | 15.93M | 11.27M |
| EBITDA | 22.13M | 23.51M | 17.48M | 11.14M | 2.96M | 556.00K |
| Net Income | 16.41M | 16.82M | 11.17M | 4.67M | -1.56M | -3.56M |
Balance Sheet | ||||||
| Total Assets | 232.81M | 226.73M | 163.36M | 145.58M | 126.65M | 110.83M |
| Cash, Cash Equivalents and Short-Term Investments | 51.23M | 51.26M | 7.13M | 16.64M | 7.72M | 12.87M |
| Total Debt | 16.83M | 17.63M | 19.66M | 29.95M | 29.82M | 15.84M |
| Total Liabilities | 52.33M | 50.34M | 51.39M | 54.89M | 51.08M | 34.05M |
| Stockholders Equity | 180.47M | 176.39M | 111.97M | 90.68M | 75.57M | 76.78M |
Cash Flow | ||||||
| Free Cash Flow | 12.67M | 4.02M | -10.94M | -3.33M | -21.08M | -17.74M |
| Operating Cash Flow | 22.44M | 14.97M | -5.82M | 2.25M | -4.87M | -1.49M |
| Investing Cash Flow | -8.81M | -10.05M | -3.85M | -3.58M | -16.12M | -15.64M |
| Financing Cash Flow | 33.44M | 39.21M | 161.00K | 10.24M | 15.80M | 6.04M |
Tat Techno Technical Analysis
Positive
40.62
Price Trends
38.87
Positive
45.79
Negative
43.27
Positive
Market Momentum
1.54
Negative
59.97
Neutral
76.65
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 40.62 is above the 20-day moving average (MA) of 38.31, above the 50-day MA of 38.87, and below the 200-day MA of 43.27, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 59.97 is Neutral, neither overbought nor oversold. The STOCH value of 76.65 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $571.39M | 34.82 | 9.47% | ― | 10.52% | 8.78% | |
59 Neutral | $4.26B | ― | -29.03% | ― | 33.58% | -18.98% | |
59 Neutral | $260.68M | -14.80 | -2.44% | ― | ― | ― | |
51 Neutral | $693.34M | 15.74 | 16.15% | ― | 70.87% | ― | |
47 Neutral | $996.15M | -4.08 | -258.98% | ― | ― | -33.98% | |
43 Neutral | $275.03M | -0.65 | 251.21% | ― | ― | ― |
* Industrials Sector Average
TATT
Tat Techno
44.01
17.50
66.01%
EVTL
Vertical Aerospace
2.16
-4.04
-65.16%
EVEX
Eve Holding
2.86
-2.79
-49.38%
SKYH
Sky Harbour Group
9.06
-1.25
-12.12%
RDW
Redwire
18.45
-1.51
-7.57%
AIRO
Airo Group Holdings, Inc.
8.29
-22.71
-73.26%
Tat Techno Corporate Events
TAT Technologies Lands $45 Million Long-Term MRO Deals and Books One-Time Gain
Jun 3, 2026
On June 3, 2026, TAT Technologies announced it has secured several new long-term MRO contracts with international commercial and cargo airlines, covering auxiliary power unit platforms under OEM authorization and heat exchanger maintenance. The ag...
TAT Technologies Highlights Q1 2026 Results and $580 Million Backlog in MRO-Focused Investor Update
May 20, 2026
On May 20, 2026, TAT Technologies filed a Form 6-K furnishing an investor presentation covering its first-quarter 2026 results and strategic positioning. The presentation highlights the company’s 60-plus years in thermal solutions, strong pr...
TAT Technologies Files Q1 2026 Results and Updates U.S. Registrations
May 20, 2026
TAT Technologies Ltd. reported unaudited condensed consolidated financial statements for the quarter ended March 31, 2026, detailing its balance sheet, income, cash flow and equity positions versus year-end 2025. The company also released an opera...
TAT Technologies Posts Q1 2026 Results as Backlog Climbs to Record $580 Million
May 20, 2026
TAT Technologies reported unaudited results for the first quarter ended March 31, 2026, showing revenue of $41.1 million, down 2.4% year on year due to component shortages and OEM delivery delays, while gross profit held at $10.0 million and gross...
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.