TAT Technologies has rebounded from Q1 supply chain issues, resuming its robust growth trajectory and expanding its Honeywell partnership. I upgraded the company to Strong Buy with a $63.80 target price, reflecting a 60.95% upside from the August 7 close. TAT Technologies' backlog rose to $615 million, EPS CAGR is forecast at 20.3%, and margins are expected to improve with continued industry tailwinds.
TAT Technologies NASDAQ: TATT reported record second-quarter results for 2026 as improving supply-chain conditions helped the aviation aftermarket company convert previously constrained demand into revenue. Management said the company ended June with a record $650 million backlog and long-term agreements, while expanding its relationship with Honeywell Aerospace.
TAT Technologies Ltd. (TATT) Q2 2026 Earnings Call Transcript
| Aerospace & Defense Industry | Industrials Sector | Igal Zamir CEO | TASE Exchange | IL0010827264 ISIN |
| US Country | 659 Employees | 5 Jun 2017 Last Dividend | 1 May 1998 Last Split | 31 Mar 1987 IPO Date |
TAT Technologies Ltd., headquartered in Netanya, Israel, is a prominent provider of solutions and services catering to the aerospace and defense sectors, covering both military and commercial domains globally. Originally founded in 1969 as Galagraph Ltd., the company underwent a name change to TAT Technologies Ltd. in May 1992, reflecting its expanded capabilities and global reach. TAT operates through four main segments: Original Equipment Manufacturing (OEM) of Heat Transfer Solutions and Aviation Accessories; Maintenance, Repair, and Overhaul (MRO) Services for Heat Transfer Components and OEM of Heat Transfer Solutions; MRO Services for Aviation Components; and Overhaul and Coating of Jet Engine Components. With a comprehensive suite of products and services, TAT is committed to meeting the demanding requirements of the aerospace industry, leveraging innovation, and technical expertise.
TAT designs, develops, and manufactures an extensive range of heat transfer solutions, utilized across commercial, military, and business aircraft. These solutions include pre-cooler and oil/fuel hydraulic heat exchangers integral to mechanical and electronic systems, along with environmental control and power electronics cooling systems for aircraft and ground applications.
The company offers comprehensive MRO services for a wide array of heat transfer components. This includes the maintenance and repair of heat exchangers and cooling systems, ensuring optimal performance and reliability.
Besides MRO services, TAT is involved in the OEM of heat transfer solutions. This encompasses the manufacturing of original equipment that meets stringent quality and performance standards, tailored to the specific needs of the aerospace industry.
TAT provides MRO services covering a broad spectrum of aviation components. This service ensures the longevity and efficiency of various aircraft parts through meticulous maintenance and repair processes.
The company specializes in the overhaul and coating of critical jet engine components such as turbine vanes and blades, fan blades, variable inlet guide vanes, and afterburner flaps. This service is crucial for enhancing the performance and extending the lifespan of jet engines.
TAT operates a repair station that offers specialized heat transfer MRO services. This facility caters to airlines, air cargo carriers, maintenance service centers, and military clients, ensuring their heat transfer components remain in peak condition.