Company Delivers 9th 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/.
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
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
Current maturities of operating lease liabilities
939
1,033
Total current liabilities
38,124
39,311
NON-CURRENT LIABILITIES:
Long-term loans
10,938
12,886
Liability in respect of employee rights upon retirement
986
1,000
Operating lease liabilities
1,345
1,697
Total non-current liabilities
13,269
15,583
COMMITMENTS AND CONTINGENCIES (NOTE 11)
Total liabilities
51,393
54,894
SHAREHOLDERS 'EQUITY:
Ordinary shares of NIS 0 par value and NIS 0.9 par value at December 31, 2024 and at December 31, 2023 respectively:
Authorized: 13,000,000 shares at December 31, 2024 and at December 31, 2023; Issued: 11,214,831 and 10,377,085 shares at December 31, 2024 and at December 31, 2023 respectively; Outstanding: 10,940,358 and 10,102,612 shares at December 31, 2024 and at December 31, 2023 respectively
-
3,140
Additional paid-in capital
89,697
76,335
Treasury shares, at cost, 274,473 shares at December 31, 2024 and 2023
(2,088)
(2,088)
Accumulated other comprehensive income
(76)
27
Retained earnings
24,436
13,269
Total shareholders' equity
111,969
90,683
Total liabilities and shareholders' equity
163,362
145,577
TAT TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands
Year ended December 31,
2024
2023
2022
Revenue:
Products
$ 47,710
$ 35,241
$ 25,460
Services
104,406
78,553
59,096
152,116
113,794
84,556
Cost of revenue, net:
Products
33,986
30,517
21,631
Services
85,116
60,809
46,997
119,102
91,326
68,628
Gross profit
33,014
22,468
15,928
Operating expenses:
Research and development, net
1,248
715
479
Selling and marketing, net
7,746
5,523
5,629
General and administrative, net
11,901
10,588
9,970
Other income
(383)
(433)
(90)
Restructuring expenses, net
-
1,715
20,512
16,393
17,703
Operating income (loss)
12,502
6,075
(1,775)
Interest expenses
(1,472)
(1,683)
(902)
Other financial income (expenses), net
(477)
353
1,029
Income profit (loss) before taxes on income
10,553
4,745
(1,648)
Taxes on income
195
576
98
Profit (Loss) before share of equity investment
10,358
4,169
(1,746)
Share in profit of equity investment of affiliated companies
809
503
184
Net income (loss)
$ 11,167
$ 4,672
$ (1,562)
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
Year ended December 31,
2024
2023
2022
Net income (loss)
$ 11,167
$ 4,672
$ (1,562)
Net income (loss) per share basic
$ 1.08
$ 0.52
$ (0.175)
Net income (loss) per share diluted
$ 1.00
$ 0.51
$ (0.175)
Weighted average number of shares outstanding:
10,363,978
8,961,689
8,911,546
Basic
Diluted
11,215,827
9,084,022
8,911,546
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
U.S. dollars in thousands
Year ended December 31,
2024
2023
2022
Net income (loss)
$ 11,167
$ 4,672
$ (1,562)
Other comprehensive income (loss), net
Net unrealized gains (losses) from derivatives
(27)
53
(89)
Change in foreign currency translation
Adjustments
(76)
-
-
Reclassification adjustments for loss from derivatives included in net income
-
-
30
Total other comprehensive income (loss)
(103)
53
(59)
Total comprehensive income (loss)
$ 11,064
$ 4,725
$ (1,621)
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
U.S. dollars in thousands, except share data
Ordinary shares
Number of shares issued
Amount
Additional paid-in capital
Accumulated other comprehensive income (loss)
Treasury shares
Retained earnings
Total equity
BALANCE AT DECEMBER 31, 2021
9,149,169
$ 2,809
$ 65,871
$ 33
$ (2,088)
$ 10,159
$ 76,784
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2022:
Comprehensive income
(59)
-
(1,562)
(1,621)
Exercise of Options
36,850
33
156
189
Share based compensation
218
218
BALANCE AT DECEMBER 31, 2022
9,186,019
$ 2,842
$ 66,245
$ (26)
$ (2,088)
$ 8,597
$ 75,570
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2023:
Comprehensive income
-
-
-
53
-
4,672
4,725
Exercise of Options
32,466
8
157
-
-
165
Issuance of common shares net of issuance costs of $141 thousands
1,158,600
290
9,774
-
-
10,064
Share based compensation
159
-
-
159
BALANCE AT DECEMBER 31, 2023
10,377,085
$ 3,140
$ 76,335
$ 27
$ (2,088)
$ 13,269
$ 90,683
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2024:
Comprehensive income(loss)
-
-
-
(103)
-
11,167
11,064
Exercise of Options
164,406
12
(12)
-
-
-
-
Cancel of shares par value )see note 12a(
(3,152)
3,152
-
-
-
-
Issuance of common shares net of issuance costs of $162 thousands
673,340
-
9,827
-
-
-
9,827
Share based compensation
-
395
-
-
-
395
BALANCE AT DECEMBER 31, 2024
11,214,831
-
$ 89,697
$ (76)
$ (2,088)
$ 24,436
$ 111,969
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Year ended December 31,
2024
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$ 11,167
$ 4,672
$ (1,562)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization
5,455
4,710
3,706
Loss (gain) from change in fair value of derivatives
22
(9)
8
Change in funds in respect of employee rights upon retirement
10
116
377
Net change in operating right of use asset and operating lease liability
18
22
(82)
Non cash financial expenses
(187)
(172)
(902)
Decrease in restructuring plan provision
(63)
(126)
(467)
Change in allowance for credit losses
55
(182)
138
Share in results of affiliated companies
(809)
(503)
(184)
Share based compensation
395
159
218
Liability in respect of employee rights upon retirement
(14)
(148)
(356)
Capital gain from sale of property, plant and equipment
(478)
(530)
(90)
Deferred income taxes, net
117
235
23
Changes in operating assets and liabilities:
Increase in trade accounts receivable
(9,743)
(4,205)
(2,659)
Increase in other current assets and prepaid expenses
(1,473)
(341)
(1,836)
Increase in inventory
(17,165)
(5,400)
(5,069)
Increase (decrease) in trade accounts payable
2,170
(245)
1,143
Increase in accrued expenses and other
4,705
4,202
2,727
Net cash provided by (used in) operating activities from continued operation
$ (5,818)
$ 2,255
$ (4,867)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of property and equipment
1,275
2,002
93
Purchase of property and equipment
(5,126)
(5,102)
(16,213)
Purchase of intangible assets
-
(479)
-
Net cash used in investing activities from continued operations
$ (3,851)
$ (3,579)
$ (16,120)
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED)
U.S. dollars in thousands
Year ended December 31,
2024
2023
2022
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of long-term loans
(2,016)
(1,701)
(1,071)
Net change in short term credit from banks
(7,650)
1,000
-
Proceeds from long-term loans received
-
712
16,680
Proceeds from issuance of common shares, net
9,827
10,064
-
Exercise of options
-
165
189
Net cash provided by financing activities from continued operations
$ 161
$ 10,240
$ 15,798
Net increase (decrease) in cash and cash equivalents and
restricted cash
(9,508)
8,916
(5,189)
Cash and cash equivalents and restricted cash at
beginning of period
16,942
8,026
13,215
Cash and cash equivalents and restricted cash at end of
period
7,434
16,942
8,026
SUPPLEMENTARY INFORMATION ON INVESTING ACTIVITIES NOT INVOLVING CASH FLOW:
Purchase of property, plant and equipment on credit
-
-
196
Additions of operating lease right-of-use assets and operating lease liabilities
983
1,345
318
Reclassification of inventory to property, plant and equipment
155
68
284
Capital contribution to equity method investee
-
-
787
Supplemental disclosure of cash flow information:
Interest paid
(1,400)
(1,438)
(796)
Income taxes received (paid), net
$ (39)
$ -
$ -
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED)
U.S. dollars in thousands
Year ended
December 31,
2024
2023
Net income
$11,167
$4,672
Adjustments:
Share in results and sale of equity
investment of affiliated companies
(809)
(503)
Taxes on income (tax benefit)
195
576
Financial expenses (income), net
1,949
1,330
Depreciation and amortization
5,717
4,902
Share based compensation
395
159
Adjusted EBITDA
$ 18,614
$11,136
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
