TAT Technologies (NASDAQ:TATT) Issues Quarterly Earnings Results, Beats Expectations By $0.19 EPS

TAT Technologies (NASDAQ:TATT) released its quarterly earnings data on Monday. The aerospace company reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.39 by $0.19, FiscalAI reports. The company had revenue of $55.56 million during the quarter, compared to analysts’ expectations of $52.84 million. TAT Technologies had a net margin of 11.26% and a return on equity of 9.84%.

Here are the key takeaways from TAT Technologies’ conference call:

• Record quarterly performance: Q3 revenue rose 20.2% year over year to $55.6 million, while adjusted EBITDA increased 60.9% to a record $10.9 million. Gross margin expanded to 30.9%, driven by stronger product mix, operational efficiencies, and higher-margin distribution activity.
• APU growth regained full run rate: APU revenue increased 34.4% in Q3 as supply-chain conditions improved, capacity increased, and recently won contracts began contributing. Management expects strong APU demand to continue into Q4 and 2027.
• The expanded Honeywell relationship and new distribution channel are broadening TAT’s addressable market and supporting profitability. Management said distribution revenue is not yet significant, but its profit contribution is meaningful and expected to support margins for years.
• Trading, leasing, and distribution revenue surged 85.5% in Q3, but management cautioned that the business will remain lumpy because results depend on the timing and availability of large transactions. The company views year-to-date performance as the base for future growth.
• Backlog declined to $577 million from $615 million after TAT removed $34 million of landing-gear contracts that it could not currently fulfill because of component shortages. Landing gear represented less than 4% of quarterly revenue, while management shifted capacity toward APU work; income-tax payments are also expected to begin in 2027 at an estimated 15%–19% rate.

TAT Technologies Trading Up 17.6%

Shares of TAT Technologies stock opened at $37.41 on Tuesday. The firm has a market capitalization of $486.26 million, a PE ratio of 23.38 and a beta of 1.01. TAT Technologies has a twelve month low of $30.47 and a twelve month high of $64.50. The firm’s 50-day moving average price is $35.55 and its 200 day moving average price is $42.39. The company has a current ratio of 4.83, a quick ratio of 2.61 and a debt-to-equity ratio of 0.06.

TAT Technologies News Summary

Here are the key news stories impacting TAT Technologies this week:

• Positive Sentiment: Strong earnings beat: TAT Technologies reported diluted EPS of $0.58, well above the $0.38–$0.39 analyst consensus. Net margin was 11.26%, while return on equity reached 9.84%. TAT Technologies Ltd. Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Revenue and profitability growth: Quarterly revenue rose 20.2% to $55.56 million, exceeding the $52.84 million consensus estimate. Adjusted EBITDA increased 60.9%, and diluted EPS climbed 57.8%, indicating substantial operating leverage. TAT Technologies Reports Record Third Quarter 2026 Results
• Positive Sentiment: Record performance: Management reported record quarterly and nine-month revenue, gross profit margin, and adjusted EBITDA, reinforcing the view that demand and execution remain strong across the company’s commercial and military aerospace businesses. TAT Technologies Reports Record Third-Quarter 2026 Results
• Neutral Sentiment: Investor focus turns to the outlook: The earnings call provided additional context on operating results and future expectations, which investors will assess for evidence that the growth and margin improvements can continue. TAT Technologies Q3 2026 Earnings Call Transcript
• Negative Sentiment: Cash-flow concern: Coverage of the results highlighted a cash-flow warning, creating a potential counterpoint to the strong earnings and EBITDA growth. Investors may seek improvement in cash conversion before assigning a higher valuation to the stock. TAT Technologies Q3 2026 Margin Surge Meets a Cash Flow Warning

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on TATT. UBS Group reaffirmed a “buy” rating on shares of TAT Technologies in a report on Tuesday. Benchmark restated a “buy” rating on shares of TAT Technologies in a research report on Tuesday, August 25th. William Blair reaffirmed a “hold” rating on shares of TAT Technologies in a research note on Wednesday, July 15th. B. Riley Financial decreased their target price on TAT Technologies from $65.00 to $60.00 and set a “buy” rating on the stock in a research report on Wednesday, October 28th. Finally, Weiss Ratings cut shares of TAT Technologies from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 16th. Two investment analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $58.33.

About TAT Technologies

TAT Technologies Ltd. is an aerospace and defense company headquartered in Netanya, Israel. The company develops, manufactures, and services thermal-management and other specialized systems used in commercial, military, business, and general aviation applications.

Its product portfolio includes heat exchangers, air-conditioning and environmental-control components, air-cycle machines, pre-coolers, oil coolers, fuel heaters, pumps, and related aircraft systems. TAT also provides maintenance, repair, and overhaul services for aircraft heat-transfer equipment, auxiliary power units, landing-gear components, and other aviation parts.

Through its operations in Israel and the United States, TAT Technologies serves aircraft manufacturers, airlines, aerospace and defense contractors, and government customers.