TAT Technologies stock: Q3 revenue rises 20.2% to record USD 55.6m

TAT Technologies reported record third-quarter revenue and adjusted EBITDA on November 2, 2026, as demand across its aerospace businesses supported higher sales and profitability. The company release covered the quarter ended September 30, 2026.

Revenue Growth Meets Margin Expansion

Revenue increased 20.2 percent year over year to USD 55.6 million. Gross profit rose 48.2 percent to USD 17.2 million, lifting the gross margin to 30.9 percent from 25.1 percent a year earlier.

Operating income advanced 71.8 percent to USD 9.0 million, while adjusted EBITDA climbed 60.9 percent to a record USD 10.9 million. The adjusted EBITDA margin reached 19.6 percent, compared with 14.6 percent in the prior-year quarter.

Backlog Supports Final Quarter

TAT Technologies ended September with approximately USD 577 million in backlog and long-term agreements. Chief Executive Officer Igal Zamir said strong customer demand, improved product mix and operational efficiency supported the quarter, while the expanded relationship with Honeywell created further opportunities.

For the first nine months, revenue increased 13.8 percent to USD 149.6 million and adjusted EBITDA rose 47 percent to USD 27.4 million. Net income reached USD 19.1 million, but the comparison includes a one-time after-tax gain of USD 3.4 million from the sale of the company's equity investment in First Aviation Services.

Inventory Investment Weighs On Cash Flow

Operating cash flow was USD 3.8 million in the third quarter, down from USD 7.5 million a year earlier. The company attributed the decline mainly to a USD 10.6 million inventory increase linked to the ramp-up of long-term agreements, including its expanded Honeywell relationship.

The stronger operating performance improves the earnings base, while the inventory build places greater importance on converting the distribution and long-term agreement activity into cash generation. The backlog provides visibility, but supply-chain execution remains relevant for the landing gear business.

Business Model And Competitive Position

TAT Technologies supplies thermal management products, auxiliary power unit and landing gear services, aviation component maintenance, repair and overhaul, and jet-engine component coating for commercial and military aerospace and ground defense customers. The company was founded in Israel and serves airlines, air cargo carriers, maintenance organizations, OEMs and military customers through a global operating footprint. In the broader aircraft-component MRO market, TAT operates as a specialized provider alongside larger full-service groups such as Lufthansa Technik, AAR and ST Engineering, according to Mordor Intelligence.