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Tat Techno
(NASDAQ:TATT)
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Rating:69Neutral
Price Target:
$43.00
▲(9.33% Upside)
Action:Reiterated
Date:08/10/26
TATT’s score is driven primarily by improved fundamentals and a strong balance sheet, reinforced by a positive earnings call highlighting record backlog, solid margins, and ample liquidity. Offsetting these strengths are weak technical signals (price below key moving averages with negative MACD) and ongoing cash/working-capital volatility, which together cap the overall rating.
Positive Factors
Record backlog and profitable growth
Record backlog and strong quarterly growth provide meaningful forward revenue visibility, while stable margins and expanding EBITDA show that demand is converting into profitable activity. Multi-year contracts and expected backlog conversion can support continued expansion over the next several quarters.
Negative Factors
Volatile cash conversion
Cash generation remains less dependable than reported earnings, with operating cash flow covering only a minority of net income and free cash flow declining sharply from the prior period. Persistent conversion volatility could constrain internally funded growth and make working-capital management more important.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog and profitable growth
Record backlog and strong quarterly growth provide meaningful forward revenue visibility, while stable margins and expanding EBITDA show that demand is converting into profitable activity. Multi-year contracts and expected backlog conversion can support continued expansion over the next several quarters.
Read all positive factors
Tat Techno (TATT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$522.79M
Dividend Yield5.8%
Average Volume (3M)169.18K
Price to Earnings (P/E)23.9
Beta (1Y)0.72
Revenue Growth12.06%
EPS Growth30.26%
CountryUS
Employees659
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.62
Shares Outstanding12,998,137
10 Day Avg. Volume122,261
30 Day Avg. Volume169,175
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$61.25Price Target Upside55.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.68
Revenue Forecast (FY)$198.59M
Tat Techno Business Overview & Revenue Model
Company Description
TAT Technologies Ltd., an Israeli firm founded in 1969 (and known as Galagraph Ltd. until 1992), delivers essential solutions and services to the commercial and military aerospace sectors, as well as ground defense industries, operating internatio...
How the Company Makes Money
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Tat Techno Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call conveyed materially positive operational and financial momentum: record quarterly revenue, rising gross profit and adjusted EBITDA, a strong balance sheet with new credit capacity, and strategic gains including an expanded Honeywell partnership and an active, disciplined M&A pipeline. Offsetting these positives are persistent supply chain constraints (affecting APU and landing gear), elevated working capital from strategic inventory builds, a Q2 FX headwind (~$600K), and the presence of a meaningful one-time gain that inflated headline net income. Management expects backlog conversion to be steady (wins spread over multi-year contracts) and is confident in long-term profitable growth while acknowledging near-term cash/working capital pressure from inventory investments. Overall, the positives (record revenue, margin stability, backlog, balance sheet strength, strategic Honeywell deal and M&A readiness) outweigh the operational headwinds and one-time items.Positive Updates
Record Quarter Revenue and Strong YoY Growth
Second quarter revenue of $52.9M vs $43.1M in Q2 2025, an increase of nearly 23%. Company described Q2 as a record quarter driven by improved supply chain conversion of previously constrained demand.
Negative Updates
Ongoing Supply Chain Constraints
Supply chain conditions improved but have not normalized. Continued parts shortages (notably for APU and landing gear), extended OEM/subcontractor lead times (in some cases >12 months), and higher procurement costs forced targeted inventory investment and higher cost sourcing, which dampened short-term profitability.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarter Revenue and Strong YoY Growth
Second quarter revenue of $52.9M vs $43.1M in Q2 2025, an increase of nearly 23%. Company described Q2 as a record quarter driven by improved supply chain conversion of previously constrained demand.
Read all positive updates
Company Guidance
Management said TAT is entering H2 2026 with strong visibility and expects continued profitable growth as supply chains improve and backlog converts to revenue: record backlog cited at $650M (CFO reported $615M at June 30), Q2 revenue $52.9M (+~23% YoY) and H1 revenue $94.1M (+10.4% YoY), Q2 gross profit $13.3M with gross margin >25% (H1 gross margin 24.8%, +40 bps YoY), Q2 operating income $5.6M (10.6% of revenue), Q2 adjusted EBITDA excl. one‑time gain $7.4M (14% margin) and YTD adjusted EBITDA $12.3M (13.1% margin), Q2 net income $8.1M (includes ~$4.3M one‑time gain; excl. gain net income $4.6M, EPS $0.61 / $0.35 excl.), diluted EPS Q2 $0.61 vs $0.30 LY, net cash $43M with debt/cash 0.2 and debt/last‑4Q EBITDA 0.43, a new $100M five‑year revolving credit, and continued strategic inventory investments that will keep working capital elevated in the near term to support the expanded Honeywell distribution (MRO authorization extended to 2036; 3 Honeywell 131‑9A APUs acquired); segment trends cited include heat exchangers +7.8% Q2 (+4.2% H1), APU +22.2% H1, trading & leasing +17% Q2 (now ~5% of revenue), while management flagged a Q2 FX headwind >$600k, ongoing supply‑chain pressure in certain lines, and a disciplined M&A plan (target financing ~50% debt/50% capital markets, deals at multiples below TAT’s trading multiple).Tat Techno Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 186.85M | 178.01M | 152.12M | 113.79M | 84.56M | 77.97M |
| Gross Profit | 46.67M | 44.10M | 33.01M | 22.47M | 15.93M | 11.27M |
| EBITDA | 28.43M | 25.08M | 17.48M | 11.14M | 2.96M | 556.00K |
| Net Income | 21.04M | 16.82M | 11.17M | 4.67M | -1.56M | -3.56M |
Balance Sheet | ||||||
| Total Assets | 246.59M | 226.73M | 163.36M | 145.58M | 126.65M | 110.83M |
| Cash, Cash Equivalents and Short-Term Investments | 54.63M | 51.26M | 7.13M | 16.64M | 7.72M | 12.87M |
| Total Debt | 16.67M | 17.63M | 19.66M | 29.95M | 29.82M | 15.84M |
| Total Liabilities | 57.65M | 50.34M | 51.39M | 54.89M | 51.08M | 34.05M |
| Stockholders Equity | 188.94M | 176.39M | 111.97M | 90.68M | 75.57M | 76.78M |
Cash Flow | ||||||
| Free Cash Flow | 7.07M | 4.02M | -10.94M | -3.33M | -21.08M | -17.74M |
| Operating Cash Flow | 14.48M | 14.97M | -5.82M | 2.25M | -4.87M | -1.49M |
| Investing Cash Flow | -1.90M | -10.05M | -3.85M | -3.58M | -16.12M | -15.64M |
| Financing Cash Flow | -1.35M | 39.21M | 161.00K | 10.24M | 15.80M | 6.04M |
Tat Techno Technical Analysis
Positive
39.33
Price Trends
40.89
Negative
40.17
Positive
43.84
Negative
Market Momentum
-0.52
Negative
54.51
Neutral
86.60
Negative
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 39.33 is above the 20-day moving average (MA) of 38.42, below the 50-day MA of 40.89, and below the 200-day MA of 43.84, indicating a neutral trend. The MACD of -0.52 indicates Negative momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 86.60 is Negative, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $522.79M | 23.87 | 11.74% | 5.80% | 12.06% | 30.26% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $2.81B | -7.33 | -20.75% | ― | 63.10% | 55.06% | |
51 Neutral | $231.30M | -8.24 | -3.48% | ― | ― | ― | |
50 Neutral | $845.68M | 266.41 | 0.75% | ― | 62.23% | ― | |
48 Neutral | $784.09M | -3.47 | -221.18% | ― | ― | 1.65% | |
39 Underperform | $101.30M | 3.56 | -171.87% | ― | ― | ― |
* Industrials Sector Average
TATT
Tat Techno
38.67
2.12
5.80%
EVTL
Vertical Aerospace
0.58
-4.28
-88.11%
EVEX
Eve Holding
2.15
-1.53
-41.58%
SKYH
Sky Harbour Group
10.31
0.31
3.10%
RDW
Redwire
10.70
2.47
30.01%
AIRO
Airo Group Holdings, Inc.
6.88
-12.54
-64.57%
Tat Techno Corporate Events
Tat Technologies Tightens Executive Pay Policy Ahead of September Shareholder Meeting
Aug 24, 2026
Tat Technologies Ltd. has convened its 2026 Annual General Meeting of Shareholders for September 8, 2026, in Tel Aviv, maintaining the previously declared August 3, 2026 record date. The company is using a newly filed Form 6-K to supplement its pr...
Tat Technologies Highlights Q2 2026 Results and Growth Strategy in August Investor Update
Aug 5, 2026
Tat Technologies Ltd. filed a Form 6-K with the U.S. Securities and Exchange Commission for August 2026, furnishing an investor presentation dated August 5, 2026 covering its second-quarter 2026 results. The materials highlight the company’s...
TAT Technologies Posts Record Q2 2026 Results and Expands Honeywell Aerospace Partnership
Aug 5, 2026
TAT Technologies Ltd., a Charlotte-based aerospace and defense aftermarket specialist, reported record second quarter 2026 results on August 5, 2026, highlighting strong demand across commercial and military markets. The company, which provides OE...
TAT Technologies Strengthens Balance Sheet in Mid-2026 Form 6-K Filing
Aug 5, 2026
On August 4, 2026, TAT Technologies Ltd. filed a Form 6-K with the U.S. Securities and Exchange Commission, furnishing unaudited condensed consolidated financial statements for the quarter and six months ended June 30, 2026, alongside comparative ...
TAT Technologies Sets September Shareholder Meeting to Advance U.S.-Focused Growth and Governance Overhaul
Jul 27, 2026
TAT Technologies has called an annual general meeting of shareholders for September 8, 2026 in Tel Aviv, marking the next phase of its transition to a widely held public company with no controlling shareholder. Since the November 2025 meeting, the...
TAT Technologies Secures Sole Honeywell APU Parts Distribution Role and Extends MRO Licenses to 2036
Jul 14, 2026
On July 14, 2026, TAT Technologies announced it will become the sole global authorized distributor of spare parts for Honeywell Aerospace’s 331-200/250 auxiliary power unit platform, excluding Africa before 2030 and non-aftermarket OEMs. The...
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.