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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 revenue visibility
The record backlog and long-term agreements provide multi-year demand visibility, reducing reliance on short-cycle orders. Converting this backlog as supply constraints ease can support sustained revenue growth and better capacity utilization.
Negative Factors
Volatile cash conversion
Cash generation remains less reliable than reported earnings because inventory and receivables absorb working capital. Persistent conversion volatility could limit internally funded growth and make expansion more dependent on credit facilities or external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog and revenue visibility
The record backlog and long-term agreements provide multi-year demand visibility, reducing reliance on short-cycle orders. Converting this backlog as supply constraints ease can support sustained revenue growth and better capacity utilization.
Read all positive factors
Tat Techno (TATT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$471.83M
Dividend YieldN/A
Average Volume (3M)209.41K
Price to Earnings (P/E)22.4
Beta (1Y)0.79
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. Volume154,402
30 Day Avg. Volume209,413
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
null...
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
Negative
39.33
Price Trends
41.65
Negative
40.49
Negative
43.88
Negative
Market Momentum
-1.15
Positive
40.02
Neutral
29.10
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 39.33 is above the 20-day moving average (MA) of 39.08, below the 50-day MA of 41.65, and below the 200-day MA of 43.88, indicating a bearish trend. The MACD of -1.15 indicates Positive momentum. The RSI at 40.02 is Neutral, neither overbought nor oversold. The STOCH value of 29.10 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $244.87M | -9.30 | -3.48% | ― | ― | ― | |
69 Neutral | $471.83M | 22.41 | 11.74% | ― | 12.06% | 30.26% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
50 Neutral | $805.00M | -3.73 | -221.18% | ― | ― | 1.65% | |
50 Neutral | $862.82M | 273.13 | 0.75% | ― | 62.23% | ― | |
49 Neutral | $2.72B | -7.45 | -20.75% | ― | 63.10% | 55.06% | |
42 Neutral | $117.34M | 4.21 | -171.87% | ― | ― | ― |
* Industrials Sector Average
TATT
Tat Techno
36.30
1.51
4.34%
EVTL
Vertical Aerospace
0.68
-4.17
-85.92%
EVEX
Eve Holding
2.31
-1.68
-42.11%
SKYH
Sky Harbour Group
10.57
0.07
0.67%
RDW
Redwire
10.87
1.95
21.86%
AIRO
Airo Group Holdings, Inc.
7.76
-12.79
-62.24%
Tat Techno Corporate Events
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...
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...
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.