Tat Techno (TATT) AI Stock Analysis

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Tat Techno

(TASE:TATT)

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Action:N/A

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Positive Factors

Profitability and margin expansionStrong revenue growth alongside much faster EBITDA expansion indicates that improved mix and operating efficiency are translating into durable profitability. Continued margin gains would strengthen internal funding capacity and improve earnings resilience as the business scales.

Negative Factors

Uneven cash conversionCash generation has not matched the improvement in reported profitability consistently, with negative operating cash flow in several earlier periods and sharply weaker recent free cash flow. Persistent working-capital or reinvestment needs could limit self-funded growth and reduce earnings quality.

Tat Techno (TATT) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 466.76M
Dividend Yield: ―
Average Volume (3M): 39.86K
Price to Earnings (P/E): 21.8
Beta (1Y): 0.56
Revenue Growth: -1.61%
EPS Growth: 17.05%
Country: Israel
Employees: 659
Sector: Industrials
Sector Strength: 63
Industry: Aerospace & Defense

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 international...

Tat Techno Earnings Call Summary

Earnings Call Date:Nov 01, 2026(Q3-2026)|% Change Since:18.57%|Next Earnings Date:Mar 30, 2027

Earnings Call SentimentPositive

The call was strongly positive, characterized by record revenue, substantial adjusted EBITDA and margin growth, broad-based demand, improved operational execution, strong liquidity, and confidence in continued growth through 2027. The company continues to face landing gear supply-chain constraints, some quarterly variability in trading and distribution, potential airline pressure from higher fuel prices, and the expected introduction of a 15%-19% corporate tax rate in 2027, but these issues were outweighed by the reported achievements and outlook.

Positive Updates

Record Third-Quarter Revenue and Profitability

Third-quarter revenue increased 20.2% year-over-year to a record $55.6 million from $46.2 million, while adjusted EBITDA increased 60.9% to a record $10.9 million, or 19.6% of revenue, compared with $6.8 million, or 14.6% of revenue, in the prior-year quarter.

Negative Updates

Landing Gear Supply-Chain and Parts Availability Challenges

Landing gear remains a smaller part of the portfolio, accounting for less than 4% of quarterly revenue, and continues to face parts availability and supply-chain challenges. The company shifted capacity to APU work until landing gear supply-chain issues are resolved.

Company Guidance

TAT Technologies expects to finish 2026 on a strong note, with momentum continuing in Q4 and 2027, and expects APU to remain an important driver of the business; management expects sustained margin improvement, meaningful operational leverage, and the average profitability of the last three quarters to be a very good representative of profitability going forward. The company anticipates an average corporate tax rate of approximately 15%-19% in 2027, expects the distribution layer to remain for “10 years at least,” and said distribution is not meaningful in revenue but is meaningful in profitability and will continue supporting margin improvements. Management said long-term agreements represent roughly 60%-65% of revenue, while about 35%-40% comes from non-contractual customers on a short-term need, and said trading, leasing, and distribution revenue will continue to fluctuate between quarters, with year-to-date performance as the base they are planning on growing from.

Tat Techno Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

IL:TATT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AIRO	56Neutral	$171.03M	-5.73	-3.48%	―	―	―
SKYH	50Neutral	$839.97M	258.40	0.75%	―	62.23%	―
RDW	47Neutral	$1.93B	-4.91	-16.79%	―	45.83%	60.37%
EVEX	43Neutral	$585.46M	-3.27	-535.24%	―	―	1.65%
EVTL	42Neutral	$67.64M	2.45	-171.87%	―	―	―

* Industrials Sector Average

Performance Comparison

IL:TATT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:TATT	T.A.T. Technologies Ltd	11940.00	-1160.00	-8.85%
EVTL	Vertical Aerospace Ltd.	0.40	-3.98	-90.96%
EVEX	Eve Holding Inc.	1.57	-2.56	-61.99%
SKYH	Sky Harbour Group Corporation	10.00	0.39	4.06%
RDW	Redwire Corporation	6.19	-0.37	-5.64%
AIRO	Airo Group Holdings, Inc.	4.78	-8.69	-64.51%

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.

Tat Techno AI Stock Analysis