TAT Technologies Grows Revenue by 34%, Net Income by 139%, and Adjusted EBITDA by 67% for the full year of 2024

PR Newswire

NETANYA, Israel, March 26, 2025

Company Delivers 9(th) Consecutive Quarter of Expanding Revenues

NETANYA, Israel, March 26, 2025 /PRNewswire/ -- TAT Technologies Ltd. (TASE: TAT Tech) (NASDAQ: TATT) ("TAT" or the "Company"), a leading provider of products and services to the commercial and military aerospace and ground defense industries, today reported its unaudited results for the three and 12 months ended December 31, 2024 (Q4'24).

Financial Highlights for the 12 Months Ended December 31, 2024:

   -- Revenue increased by 34% to $152.1 million, compared to $113.8 million 
      for the same period in 2023. 
 
   -- Gross profit increased by 47% to $33 million (21.7% of revenue) up from 
      $22.5 million (19.7% of revenues) in the prior year. 
 
   -- Net lncome increased by 139% to $11.2 million, or $1.0 per diluted share, 
      compared to $4.7 million, or $0.51 per diluted share, in 2023. 
 
   -- Adjusted EBITDA increased by 67% to $18.6 million, compared to $11.1 
      million in the prior year. 
 
   -- Cash flow from operations was negative ($5.8) million compared to a 
      positive $2.3 million in 2023. 

Mr. Igal Zamir, CEO and President of TAT Technologies commented: "TAT Technologies continues to deliver solid execution, marking our ninth consecutive quarter of revenue growth and improved profitability. This positive momentum reflects the early impact of the strategic growth engines introduced over the past years, which we believe will continue to drive our results in the years ahead."

"In the fourth quarter, we launched our strategic 'Customer First' initiative, which is our key goal for 2025," continued Mr. Zamir. "Our commitment is to deliver exceptional customer service and best-in-class performance, even as the industry continues to face supply chain challenges. As part of this effort, we strategically increased our parts and rotatable inventory in areas where the supply chain is unstable, anticipating continued revenue growth in 2025. While this investment in inventory had a negative effect on our operational cash flow, it positions us to mitigate supply chain risks as we move forward".

"Also in the fourth quarter, TAT won contracts and new orders totaling $47 million, increasing our backlog to a record high of $429 million, and validating our continued confidence in the company's growth trajectory," added Mr. Zamir.

"In 2024, we expanded our engagement with the US and Israeli investors community, which contributed to a successful $10 million overnight capital raise and a 153% increase in our share price. We remain optimistic about the outlook for 2025. In addition to pursuing continued revenue growth, we are advancing several initiatives to improve our operational efficiency and our cost structure, which we expect to begin delivering results during 2025".

Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with GAAP, the Company also presents Adjusted EBITDA. The adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company's underlying operational results, trends and performance. Adjusted EBITDA is calculated as net income excluding the impact of: the Company's share in results of affiliated companies, share-based compensation, taxes on income, financial (expenses) income, net, and depreciation and amortization. Adjusted EBITDA, however, should not be considered as alternative to net income and operating income for the period and may not be indicative of the historic operating results of the Company; nor it is meant to be predictive of potential future results. Adjusted EBITDA is not measure of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. See reconciliation of Adjusted EBITDA in pages 13 below.

Investor Call Information

TAT Technologies will host two webcasts to review its financial results and provide a business update, on Thursday, March 27, 2025, at 7:30 a.m. ET a call in Hebrew, followed by an additional call at 8:30 a.m. ET in English. Interested investors can register for the webcast at the links below or visit the investor relations section of the Company's website at https://tat-technologies.com/investors/.

   -- Conference call in English 
 
   -- Conference call in Hebrew 

About TAT Technologies LTD

TAT Technologies Ltd. is a leading provider of services and products to the commercial and military aerospace and ground defense industries. TAT operates under four segments: (i) Original equipment manufacturing ("OEM") of heat transfer solutions and aviation accessories through its Gedera facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary. TAT controlling shareholders is the FIMI Private Equity Fund.

TAT's activities in the area of OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) broad range of heat transfer solutions, such as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on board aircraft in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units.

TAT's activities in the area of MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT's Limco subsidiary operates an FAA-certified repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers and the military.

TAT's activities in the area of MRO services for aviation components include the MRO of APUs, landing gears and other aircraft components. TAT's Piedmont subsidiary operates an FAA-certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military.

TAT's activities in the area of overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps.

For more information of TAT Technologies Ltd., please visit our website: www.tat-technologies.com

Contact:

Mr. Eran Yunger

Director of IR

erany@tat-technologies.com

 
 
                                                   TAT TECHNOLOGIES LTD. 
                                             CONSOLIDATED BALANCE SHEETS 
------------------------------------------------------------------------ 
U.S. dollars in thousands 
                                                    December 31, 
                                             --------------------------- 
                                                 2024          2023 
                                             ------------  ------------- 
 
   ASSETS 
 
 CURRENT ASSETS: 
  Cash and cash equivalents                  $      7,129  $      15,979 
  Accounts receivable, net of allowance for 
   credit losses of $400   and $345 
   thousand as of December 31, 2024 and 
   2023 respectively                               29,697         20,009 
  Restricted deposit                                    -            661 
  Other current assets and prepaid expenses         7,848          6,397 
  Inventory                                        68,540         51,280 
 
  Total current assets                            113,214         94,326 
                                             ------------  ------------- 
 
 NON-CURRENT ASSETS: 
  Restricted deposit                                  305            302 
  Investment in affiliates                          2,901          2,168 
  Funds in respect of employee rights upon 
   retirement                                         654            664 
  Deferred income taxes                               877            994 
 Property, plant and equipment, net                41,576         42,554 
 Operating lease right of use assets                2,282          2,746 
 Intangible assets, net                             1,553          1,823 
   Total non-current assets                        50,148         51,251 
                                             ------------  ------------- 
 
  Total assets                                    163,362        145,577 
                                             ============  ============= 
 
 
                                                  TAT TECHNOLOGIES LTD. 
                                             CONSOLIDATED BALANCE SHEETS 
------------------------------------------------------------------------ 
U.S. dollars in thousands 
                                                 December 31, 
                                      ---------------------------------- 
                                           2024              2023 
                                      ---------------  ----------------- 
 
   LIABILITIES AND SHAREHOLDERS 
   'EQUITY 
 
CURRENT LIABILITIES: 
 Current maturities of long-term 
  loans                               $         2,083  $         2,200 
 Short term loans                               4,350           12,138 
  Accounts payable                             12,158            9,988 
  Accrued expenses and other                   18,594           13,952 

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