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

TAT Technologies (NASDAQ:TATT) announced its earnings results on Wednesday. The aerospace company reported $0.35 EPS for the quarter, beating analysts’ consensus estimates of $0.30 by $0.05, FiscalAI reports. The firm had revenue of $52.94 million for the quarter, compared to analysts’ expectations of $44.86 million. TAT Technologies had a net margin of 9.27% and a return on equity of 9.47%.

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 Up 3.6%

TAT Technologies stock traded up $1.50 during mid-day trading on Wednesday, reaching $43.15. The stock had a trading volume of 581,192 shares, compared to its average volume of 195,475. TAT Technologies has a one year low of $30.35 and a one year high of $64.50. The company has a 50-day moving average price of $43.36 and a two-hundred day moving average price of $45.13. The company has a market capitalization of $560.98 million, a price-to-earnings ratio of 33.32 and a beta of 1.00. The company has a debt-to-equity ratio of 0.05, a current ratio of 4.69 and a quick ratio of 2.46.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. B. Riley Financial assumed coverage on shares of TAT Technologies in a research report on Wednesday, April 8th. They set a “buy” rating and a $61.00 price target for the company. Zacks Research raised shares of TAT Technologies from a “strong sell” rating to a “hold” rating in a research note on Friday, May 22nd. Truist Financial upgraded shares of TAT Technologies to a “strong-buy” rating in a report on Friday, May 1st. William Blair restated a “hold” rating on shares of TAT Technologies in a research note on Wednesday, July 15th. Finally, Weiss Ratings lowered TAT Technologies from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, June 15th. Three investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $57.29.

Insider Activity

In other TAT Technologies news, COO Jason Lewandowski sold 3,125 shares of TAT Technologies stock in a transaction dated 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 of the company’s stock, valued at approximately $122,562.50. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Paul Maness sold 5,000 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $45.41, for a total transaction of $227,050.00. Following the completion of the transaction, the insider owned 5,000 shares in the company, valued at approximately $227,050. This represents a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing. 8.75% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Wasatch Advisors LP lifted its holdings in shares of TAT Technologies by 143.0% during the second quarter. Wasatch Advisors LP now owns 781,216 shares of the aerospace company’s stock valued at $23,858,000 after purchasing an additional 459,693 shares in the last quarter. Russell Investments Group Ltd. raised its position in TAT Technologies by 71.2% in the 4th quarter. Russell Investments Group Ltd. now owns 258,153 shares of the aerospace company’s stock worth $11,529,000 after buying an additional 107,353 shares during the last quarter. Boston Partners lifted its stake in TAT Technologies by 38.8% during the 4th quarter. Boston Partners now owns 223,498 shares of the aerospace company’s stock valued at $9,984,000 after acquiring an additional 62,510 shares during the period. JPMorgan Chase & Co. lifted its stake in TAT Technologies by 470.4% during the 2nd quarter. JPMorgan Chase & Co. now owns 69,618 shares of the aerospace company’s stock valued at $2,126,000 after acquiring an additional 57,412 shares during the period. Finally, Bank of America Corp DE boosted its holdings in shares of TAT Technologies by 713.2% during the 2nd quarter. Bank of America Corp DE now owns 56,085 shares of the aerospace company’s stock valued at $1,713,000 after acquiring an additional 49,188 shares during the last quarter. Hedge funds and other 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.