TAT Technologies (NASDAQ:TATT) Releases Earnings Results, Beats Estimates By $0.05 EPS

TAT Technologies (NASDAQ:TATT) released its earnings results on Wednesday. The aerospace company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.30 by $0.05, FiscalAI reports. The company had revenue of $52.94 million during the quarter, compared to analyst estimates of $44.86 million. TAT Technologies had a return on equity of 10.03% and a net margin of 11.26%.

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

• Record backlog and strong demand drove second-quarter revenue up nearly 23% year over year to $52.9 million, with backlog and long-term agreements reaching a record $650 million.
• The expanded Honeywell relationship makes TAT the sole global authorized distributor of spare parts for the 331-250 APU platform, extends the MRO license through 2036, and adds three 131-9A APUs to its trading and leasing business.
• Profitability improved despite supply-chain inefficiencies, with operating margin rising to 10.6% and gross margin remaining above 25%; management expects further operating leverage as revenue grows.
• Supply-chain constraints remain a risk, particularly in landing gear and APU parts, where lead times can exceed 12 months. The company is increasing inventory and paying higher procurement costs, which is pressuring margins and near-term cash flow.
• Net income benefited from a $4.3 million one-time gain, while operating cash flow was negative $0.6 million due to inventory investments and delayed collections. Management is evaluating a robust M&A pipeline, intending to maintain disciplined valuations and moderate leverage.

TAT Technologies Stock Performance

Shares of NASDAQ TATT traded down $0.24 during midday trading on Friday, hitting $39.65. The company’s stock had a trading volume of 34,856 shares, compared to its average volume of 195,462. The firm has a market capitalization of $515.45 million, a price-to-earnings ratio of 24.82 and a beta of 1.00. The company has a current ratio of 4.69, a quick ratio of 2.46 and a debt-to-equity ratio of 0.05. The stock has a fifty day moving average price of $43.36 and a 200 day moving average price of $44.98. TAT Technologies has a one year low of $30.35 and a one year high of $64.50.

Wall Street Analyst Weigh In

TATT has been the topic of several research analyst reports. Weiss Ratings cut TAT Technologies from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, June 15th. Truist Financial upgraded TAT Technologies to a “strong-buy” rating in a research note on Friday, May 1st. William Blair reissued a “hold” rating on shares of TAT Technologies in a report on Wednesday, July 15th. B. Riley Financial increased their price target on shares of TAT Technologies from $61.00 to $65.00 and gave the company a “buy” rating in a research report on Thursday. Finally, Benchmark restated a “buy” rating on shares of TAT Technologies in a report on Wednesday, July 15th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, TAT Technologies currently has an average rating of “Moderate Buy” and an average price target of $57.86.

Insider Buying and Selling at TAT Technologies

In other news, COO Jason Lewandowski sold 3,125 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $39.22, for a total value of $122,562.50. Following the completion of the transaction, the chief operating officer directly owned 3,125 shares in the company, valued at approximately $122,562.50. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Paul Maness sold 5,000 shares of the firm’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $45.41, for a total transaction of $227,050.00. Following the completion of the transaction, the insider directly owned 5,000 shares of the company’s stock, valued at approximately $227,050. The trade was a 50.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 8.75% of the company’s stock.

Institutional Investors Weigh In On TAT Technologies

Several large investors have recently added to or reduced their stakes in TATT. Virtus Advisers LLC increased its stake in shares of TAT Technologies by 315.9% in the third quarter. Virtus Advisers LLC now owns 6,859 shares of the aerospace company’s stock worth $302,000 after buying an additional 5,210 shares during the period. Fred Alger Management LLC purchased a new stake in TAT Technologies during the 3rd quarter valued at $456,000. Boothbay Fund Management LLC bought a new stake in TAT Technologies in the 3rd quarter worth $493,000. BNP Paribas Financial Markets purchased a new position in shares of TAT Technologies in the second quarter valued at about $352,000. Finally, PDT Partners LLC bought a new position in shares of TAT Technologies during the second quarter valued at about $228,000. Institutional investors own 15.13% of the company’s stock.

About TAT Technologies

TAT Technologies Ltd. is a global provider of environmental control and thermal management solutions for the aerospace industry. The company specializes in the design, manufacturing and support of aircraft environmental control systems (ECS), heat exchangers and related components. Its product portfolio serves commercial and military airframers, engine manufacturers and airlines, offering critical systems that regulate cabin pressure, temperature and ventilation on fixed-wing and rotary aircraft.

Key offerings include air cycle machines, preconditioned air units, steam/water separators and specialty heat exchangers engineered to meet stringent aerospace standards.