TATT · TAT Technologies Ltd.

TAT Technologies' first quarter 2026 results reflect solid operational performance amid supply chain headwinds. Revenue of $41.1 million decreased 2.4% year-over-year, primarily due to component part shortages and delayed deliveries from certain OEM suppliers. Despite the top-line decline, gross profit remained stable at $10.0 million, and gross margin improved 80 basis points to 24.4%, driven by favorable mix and cost controls. Operating income fell to $3.0 million (7.3% margin) from $4.2 million (9.9%) in the prior year, reflecting higher operating expenses—particularly in R&D ($0.6M vs $0.3M) and general & administrative ($4.3M vs $3.5M). Net income decreased slightly to $3.4 million from $3.8 million. On a non-GAAP basis, Adjusted EBITDA declined to $4.9 million (11.8% of revenue) from $5.7 million (13.6%). A key positive was operating cash flow, which swung to positive $1.9 million from negative $5.0 million, indicating improved working capital management. The company reported record backlog and long-term agreements of approximately $580 million, reflecting robust demand across all four service lines. CEO Igal Zamir noted that supply chain disruptions are expected to resolve in the coming months, and the company anticipates a return to growth in the second quarter and second half of 2026. TAT remains well-positioned with a strong balance sheet, including $51.2 million in cash and no short-term bank borrowings. The earnings release underscores a strategic inflection point: once supply constraints ease, the record backlog should drive accelerated revenue and earnings growth.