TAT Technologies Posts Record Q3 2026 Revenue of $55.6 Million and Adjusted EBITDA of $10.9 Million
Why It MattersAftermarket suppliers tied to long-term OEM agreements are growing faster than their cash flow, as inventory build-up to support contract ramp-ups absorbs operating cash.
TAT Technologies Ltd. (NASDAQ: TATT; TASE: TAT Tech), a supplier of products and services to the commercial and military aerospace and ground defense industries, reported record results for the third quarter ended September 30, 2026. Revenue was $55.6 million, up 20.2% from $46.2 million in the third quarter of 2025. Gross profit rose 48.2% to $17.2 million, or 30.9% of revenue, compared with $11.6 million (25.1%) a year earlier. Operating income increased 71.8% to $9.0 million (16.3% of revenue) from $5.3 million (11.4%). Net income was $7.7 million, or $0.58 per diluted share.
For the first nine months of 2026, revenue grew 13.8% to $149.6 million from $131.5 million. Gross profit rose 25.2% to $40.5 million (27.1% of revenue), operating income was $17.6 million (11.8%), and net income was $19.1 million ($1.46 per diluted share) versus $12.1 million ($1.02). Net income includes a one-time gain of $3.4 million, net of tax, on the sale of the company's equity investment in First Aviation Services Inc. (FAV). Nine-month Adjusted EBITDA increased 47% to $27.4 million; excluding the $4.3 million pre-tax FAV gain, it was $23.0 million.
Cash flow from operations was $3.8 million in the third quarter, compared with $7.5 million a year earlier, and $5.2 million for the nine months, compared with $9.4 million. The company attributed the decline mainly to inventory increases of $10.6 million in the quarter and $20.5 million in the nine months, reflecting investment to support the ramp-up of its long-term agreements, including an expanded agreement with Honeywell. Backlog and long-term agreements totaled approximately $577 million as of September 30, 2026.
President and CEO Igal Zamir attributed the results to strong customer demand, an improved product mix and greater operational efficiency, and said demand remains strong across core product lines. The company held an earnings webcast and conference call on November 2, 2026.
