Quarterly ResultMay 20, 2026, 07:12 AM
TAT Technologies Q1 Net Income $3.4M, Revenue $41.1M
AI Summary
TAT Technologies reported Q1 2026 financial results, with revenues slightly declining to $41.1 million from $42.1 million year-over-year, primarily due to supply chain disruptions. Net income also saw a slight decrease to $3.4 million from $3.8 million in Q1 2025. Despite these declines, the company achieved an improved gross margin of 24.4% and a significant turnaround in operating cash flow, which was positive $1.9 million compared to negative $(5.0) million in the prior year. The CEO noted record customer demand and an all-time high backlog of approximately $580 million, expressing confidence in resuming growth in Q2 and the second half of 2026 as supply chain issues are expected to resolve.
Key Highlights
- Q1 2026 revenue decreased to $41.1 million from $42.1 million in Q1 2025.
- Gross profit remained stable at $10.0 million, with gross margin improving to 24.4% from 23.6%.
- Operating income decreased to $3.0 million (7.3% margin) from $4.2 million (9.9% margin) in Q1 2025.
- Net income totaled $3.4 million, a slight decrease from $3.8 million in Q1 2025.
- Adjusted EBITDA was $4.9 million (11.8% of revenues), down from $5.7 million (13.6% of revenues) in Q1 2025.
- Operating cash flow significantly improved to positive $1.9 million from negative $(5.0) million in Q1 2025.
- Long-term agreements and backlog reached an all-time high of approximately $580 million at the end of Q1.
- Products revenue increased to $13.9 million from $12.7 million, while Services revenue decreased to $27.2 million from $29.4 million.
Price Impact
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