TAT Technologies (TATT) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached a record $55.6M, up 20.2% YoY; adjusted EBITDA reached a record $10.9M, up 60.9%.

• Growth reflected APU and heat exchanger demand, Trading & Leasing contributions, favorable mix and operating efficiencies.

• Backlog and long-term agreements totaled $577M at September 30, 2026; management cited strong demand and momentum entering Q4 and continuing into 2027.

Financial highlights

• Q3 gross profit rose 48.2% to $17.2M; operating income increased 71.8% to $9.0M, and net income rose to $7.7M from $4.8M.

• Q3 diluted EPS was $0.58, up 57.8% YoY; 9M diluted EPS was $1.46 vs. $1.02.

• 9M revenue rose 13.8% to $149.6M; gross profit was $40.5M and operating income was $17.6M, up from $13.9M.

• 9M adjusted EBITDA was $27.4M, up 47%; reported figure includes the $4.3M pretax First Aviation gain, and was $23.0M excluding it.

• Q3 operating cash flow was $3.8M vs. $7.5M; 9M operating cash flow was $5.2M vs. $9.4M, primarily reflecting inventory investment.

Outlook and guidance

• Management expects to finish 2026 strongly and sees growth momentum continuing into 2027, supported by demand, backlog, long-term agreements and expanded capabilities.

• Scaling core businesses is expected to bring operating leverage and sustained margin improvement; 9M gross margin was described as a reasonable near-term profile.

• APU intake remains strong; supply-chain improvement and operating capacity gains are expected to support continued momentum.

• Management expects to begin paying income taxes in 2027, with an anticipated average corporate tax rate of 15%-19%.