Tat Technologies Ltd 6-K, filed May 19, 2025
Tat Technologies Ltd (TATT)
6-K
2025-05-19
For: 2025-05-19
View Original
Added on
July 04, 2026
About this 6-K
Tat Technologies Ltd filed this 6-K on May 19, 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2025
Commission file number: 0-16050
TAT TECHNOLOGIES LTD.
(Name of Registrant)
5 Hamelacha St, Netanya 4250540, Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
TAT Technologies Ltd.
6-K Items
| 1. |
Press Release dated May 19, 2025 re: TAT Technologies Ltd. Reports First Quarter 2025 Results.
|
2
ITEM 1
|
Press Release
|
TAT Technologies Reports First Quarter 2025 Results
TAT Technologies Delivers 23.6% Revenue Growth, 80.7% Increase in Net Profit, and
56.2% Increase in adjusted EBITDA, and Continued Margin Expansion for the First
Quarter of 2025
Netanya, Israel, May 19, 2025 - TAT Technologies Ltd. (NASDAQ and TASE: TATT - News) (“TAT” or the “Company”), a leading provider of products and services to the commercial and military aerospace and
ground defense industries, reported today its unaudited results for the three months ended March 31, 2025.
Financial Highlights for the First Quarter of 2025:
| • |
Revenue for the first quarter of 2025 increased by 23.6% to $42.1 million compared to $34.1 million in the first quarter of 2024.
|
| • |
Gross profit for the first quarter of 2025 increased by 40.9% to $10.0 million compared to $7.1 million in the first quarter of 2024.
|
| • |
Gross margin for the first quarter of 2025 improved by 290bp to 23.6% of revenue compared to 20.7% of revenue in the first quarter of 2024.
|
| • |
Adjusted EBITDA for the first quarter of 2025 increased by 56.2% to $5.7 million (13.6% of revenue) compared to $3.7 million (10.8% of revenue) in the first quarter of 2024.
|
| • |
Operating income for the first quarter of 2025 increased by 89.0% to $4.2 million (9.9% of revenue) compared to $2.2 million (6.5% of revenue) in the first quarter of 2024.
|
| • |
Net income for the first quarter of 2025 increased by 80.7% to $3.8 million compared to a net income of $2.1 million in the first quarter of 2024.
|
| • |
Cash flow from operating activities was negative ($4.9) million in the first quarter of 2025 compared to negative ($3.5) million in the first quarter of 2024.
|
Mr. Igal Zamir, TAT’s CEO and President, commented: “Driven by strong execution and robust market demand, TAT Technologies continues to demonstrate its earnings power. During the first quarter, we
delivered revenue growth of 23.6% and an increase of 56.2% in adjusted EBITDA, compared to the same period in 2024, expanding our bottom line even more rapidly than our top line. TAT has developed a multi-year track record of consistent
profitability, delivering double-digit year-over-year growth for the last three years, while expanding profit margins.”
“Our strategic growth initiatives, implemented over the past few years, have significantly expanded our addressable market and diversified our revenue streams,” continued Mr. Zamir. “Despite
industry wide supply chain challenges, our ‘Customer First’ initiative, which includes bolstering parts and rotatable inventory in key areas, enabled us to achieve our financial goals, fulfill customer demand, and strengthen our market position.
While we expanded inventory levels and utilized additional cash, these strategic investments enhance our resilience and position us to capture market share in a dynamic supply environment.”
3
“In the first quarter, we secured over $52 million in new orders and long-term agreements, bringing our total backlog to $439 million. This provides us with strong visibility and confidence in our
continued growth and profitability. While broader market dynamics may influence near-term order flow, the demand for our expertise and capacity remains robust, positioning us well to further expand our backlog throughout the year.”
“To mitigate the evolving trade policy landscape, we’re closely monitoring recent tariff changes and taking measured steps to minimize any impact on our operations. Our teams are in active,
solution-focused discussions with key suppliers to ensure material flow remains uninterrupted and cost increases are controlled. At the same time, we’re working closely with our customers to align expectations, adjust planning as needed, and
maintain the high service levels they rely on.”
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 with a more complete understanding of the Company’s underlying operational results, trends, and performance. The Adjusted EBITDA is calculated as net income, excluding the impact of: the Company's
share in profit of equity investment of affiliated companies, share-based compensation, provision for income taxes, financial (expenses) income, net, and depreciation and amortization. The Adjusted EBITDA, however, should not be considered as an
alternative to net income and operating income for the period and may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. The Adjusted EBITDA is not a 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 below.
Investor Call Information
TAT Technologies will host a webcast to review the quarterly results on Tuesday, May 20, 2025, at 8:30 a.m. ET. Interested investors can register for the webcast at the link below or visit the
investor relations section of the Company’s website at https://tat-technologies.com/investors/.
| • |
Conference call
|
4
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’s controlling shareholder 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 about TAT Technologies Ltd., please visit our website:
www.tat-technologies.com.
Contact:
Mr. Eran Yunger
Director of IR
erany@tat-technologies.com
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements which include, without limitation, statements regarding possible or assumed future operation results. These statements are hereby identified as
"forward-looking statements" for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause our results to differ materially from
management's current expectations. Actual results and performance can also be influenced by other risks that we face in running our operations including, but are not limited to, general business conditions in the airline industry, changes in demand
for our services and products, the timing and amount or cancellation of orders, [LTAs] and backlog, the price and continuity of supply of component parts used in our operations, and other risks detailed from time to time in the Company's filings with
the Securities Exchange Commission, including, its annual report on form 20-F and its periodic reports on form 6-K. These documents contain and identify other important factors that could cause actual results to differ materially from those contained
in our projections or forward-looking statements. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to
update publicly or revise any forward-looking statement.
5
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
|
March 31,
|
December 31,
|
|||||||
|
2025
|
2024
|
|||||||
|
(unaudited)
|
(audited)
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$ |
5,020
|
$
|
7,129
|
||||
|
Accounts receivable, net of allowance for credit losses of $350
and $400 thousand as of March 31, 2025 and December 31, 2024, respectively
|
33,223
|
29,697
|
||||||
|
Inventory
|
72,980
|
68,540
|
||||||
|
Prepaid expenses and other current assets
|
8,375
|
7,848
|
||||||
|
Total current assets
|
119,598
|
113,214
|
||||||
|
NON-CURRENT ASSETS:
|
||||||||
|
Property, plant and equipment, net
|
42,474
|
41,576
|
||||||
|
Operating lease right of use assets
|
2,115
|
2,282
|
||||||
|
Intangible assets, net
|
1,633
|
1,553
|
||||||
|
Investment in affiliates
|
3,722
|
2,901
|
||||||
|
Funds in respect of employee rights upon retirement
|
641
|
654
|
||||||
|
Deferred income taxes
|
358
|
877
|
||||||
|
Restricted deposit
|
315
|
305
|
||||||
|
Total non-current assets
|
51,258
|
50,148
|
||||||
|
Total assets
|
$
|
170,856
|
$
|
163,362
|
||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Current maturities of long-term loans
|
$
|
1,976
|
$
|
2,083
|
||||
|
Short-term loans
|
10,719
|
4,350
|
||||||
|
Accounts payable
|
12,592
|
12,158
|
||||||
|
Accrued expenses and other
|
15,572
|
18,594
|
||||||
|
Current maturities of operating lease liabilities
|
839
|
939
|
||||||
|
Total current liabilities
|
41,698
|
38,124
|
||||||
|
NON-CURRENT LIABILITIES:
|
||||||||
|
Long-term loans
|
10,391
|
10,938
|
||||||
|
Liability in respect of employee rights upon retirement
|
966
|
986
|
||||||
|
Operating lease liabilities
|
1,269
|
1,345
|
||||||
|
Total non-current liabilities
|
12,626
|
13,269
|
||||||
|
Total liabilities
|
54,324
|
51,393
|
||||||
|
STOCKHOLDERS’ EQUITY:
|
||||||||
|
Share capital, no par value
|
-
|
-
|
||||||
|
Additional paid-in capital
|
89,919
|
89,697
|
||||||
|
Treasury stock at cost
|
(2,088
|
)
|
(2,088
|
)
|
||||
|
Accumulated other comprehensive income (loss)
|
452
|
(76
|
)
|
|||||
|
Retained earnings
|
28,249
|
24,436
|
||||||
|
Total shareholders' equity
|
116,532
|
111,969
|
||||||
|
Total liabilities and stockholders' equity
|
$
|
170,856
|
$
|
163,362
|
||||
6
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
|
Three months ended
|
Year ended
|
|||||||||||
|
March 31,
|
December 31,
|
|||||||||||
|
2025
|
2024
|
2024
|
||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||
|
Revenues:
|
||||||||||||
|
Products
|
$
|
12,724
|
$
|
11,935
|
$
|
47,710
|
||||||
|
Services
|
29,418
|
22,153
|
104,406
|
|||||||||
|
42,142
|
34,088
|
152,116
|
||||||||||
|
Cost of goods:
|
||||||||||||
|
Products
|
8,331
|
8,986
|
33,986
|
|||||||||
|
Services
|
23,857
|
18,036
|
85,116
|
|||||||||
|
32,188
|
27,022
|
119,102
|
||||||||||
|
Gross profit
|
9,954
|
7,066
|
33,014
|
|||||||||
|
Operating expenses:
|
||||||||||||
|
Research and development, net
|
324
|
277
|
1,248
|
|||||||||
|
Selling and marketing, net
|
1,928
|
1,660
|
7,746
|
|||||||||
|
General and administrative, net
|
3,532
|
3,309
|
11,901
|
|||||||||
|
Other income
|
-
|
(388
|
)
|
(383
|
)
|
|||||||
|
5,784
|
4,858
|
20,512
|
||||||||||
|
Operating income
|
4,170
|
2,208
|
12,502
|
|||||||||
|
Interest expenses
|
(335
|
)
|
(343
|
)
|
(1,472
|
)
|
||||||
|
Other financial income (expenses), net
|
277
|
(106
|
)
|
(477
|
)
|
|||||||
|
Income before taxes on income (taxes benefit)
|
4,112
|
1,759
|
10,553
|
|||||||||
|
Provision for taxes on income(taxes benefit)
|
592
|
(153
|
)
|
195
|
||||||||
|
Profit before share of equity investment
|
3,520
|
1,912
|
10,358
|
|||||||||
|
Share in profits of equity investment of affiliated companies
|
293
|
198
|
809
|
|||||||||
|
Net income
|
$
|
3,813
|
$
|
2,110
|
$
|
11,167
|
||||||
|
Basic and diluted earnings per share:
|
||||||||||||
|
Basic
|
$
|
0.35
|
$
|
0.20
|
$
|
1.08
|
||||||
|
Diluted
|
$
|
0.34
|
$
|
0.19
|
$
|
1.00
|
||||||
|
Weighted average number of shares outstanding:
|
||||||||||||
|
Basic
|
10,940,358
|
10,378,978
|
10,363,978
|
|||||||||
|
Diluted
|
11,211,271
|
10,554,351
|
11,215,827
|
|||||||||
7
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
|
Three months ended
|
Year ended
|
|||||||||||
|
March 31,
|
December 31,
|
|||||||||||
|
2025
|
2024
|
2024
|
||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||
|
Net income
|
$
|
3,813
|
$
|
2,110
|
$
|
11,167
|
||||||
|
Other comprehensive income (loss), net
|
||||||||||||
|
Net unrealized losses from derivatives
|
-
|
(27
|
)
|
(27
|
)
|
|||||||
|
Change in foreign currency translation adjustments
|
528
|
-
|
(76
|
)
|
||||||||
|
Total comprehensive income
|
$
|
4,341
|
$
|
2,083
|
$
|
11,064
|
||||||
8
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In thousands, except share data)
|
Share capital
|
Additional paid-in capital
|
Accumulated
other comprehensive income (loss)
|
Treasury shares
|
Retained earnings
|
Total equity
|
|||||||||||||||||||||||
|
Number of shares issued
|
Amount
|
|||||||||||||||||||||||||||
|
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 option
|
164,406
|
12
|
(12
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
|
Cancel of shares par value
|
-
|
(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
|
|||||||||||||||||||
|
CHANGES DURING THE PERIOD ENDED MARCH 31, 2025 (unaudited):
|
||||||||||||||||||||||||||||
|
Comprehensive income
|
-
|
-
|
-
|
528
|
-
|
3,813
|
4,341
|
|||||||||||||||||||||
|
Share based compensation
|
-
|
-
|
222
|
-
|
-
|
-
|
222
|
|||||||||||||||||||||
|
BALANCE AT MARCH 31, 2025 (unaudited)
|
11,214,831
|
$
|
-
|
$
|
89,919
|
$
|
452
|
$
|
(2,088
|
)
|
$
|
28,249
|
$
|
116,532
|
||||||||||||||
9
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
Three months ended
|
Year ended
|
|||||||||||
|
March 31,
|
December 31,
|
|||||||||||
|
2025
|
2024
|
2024
|
||||||||||
|
(Unaudited)
|
(Unaudited)
|
(audited)
|
||||||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
|
Net income
|
$
|
3,813
|
$
|
2,110
|
$
|
11,167
|
||||||
|
Adjustments to reconcile net income to net cash used in operating activities:
|
||||||||||||
|
Depreciation and amortization
|
1,305
|
1,374
|
5,455
|
|||||||||
|
Loss from change in fair value of derivatives
|
-
|
22
|
22
|
|||||||||
|
Change in funds in respect of employee rights upon retirement
|
13
|
5
|
10
|
|||||||||
|
Net change in operating right of use asset and operating lease liability
|
(9
|
)
|
4
|
18
|
||||||||
|
Non-cash financial expenses
|
(83
|
)
|
(214
|
)
|
(187
|
)
|
||||||
|
Decrease in restructuring plan provision
|
-
|
(20
|
)
|
(63
|
)
|
|||||||
|
Change in allowance for credit losses
|
(50
|
)
|
-
|
55
|
||||||||
|
Share in profits of equity investment of affiliated companies
|
(293
|
)
|
(198
|
)
|
(809
|
)
|
||||||
|
Share based compensation
|
222
|
41
|
395
|
|||||||||
|
Liability in respect of employee rights upon retirement
|
(20
|
)
|
3
|
(14
|
)
|
|||||||
|
Gain on disposal of property, plant and equipment
|
-
|
(354
|
)
|
(478
|
)
|
|||||||
|
Deferred income taxes, net
|
519
|
(409
|
)
|
117
|
||||||||
|
Changes in operating assets and liabilities:
|
||||||||||||
|
Increase in trade accounts receivable
|
(3,476
|
)
|
(820
|
)
|
(9,743
|
)
|
||||||
|
Increase in prepaid expenses and other current assets
|
(527
|
)
|
(181
|
)
|
(1,473
|
)
|
||||||
|
Increase in inventory
|
(3,861
|
)
|
(2,637
|
)
|
(17,165
|
)
|
||||||
|
Increase (decrease) in trade accounts payable
|
434
|
(700
|
)
|
2,170
|
||||||||
|
Increase (decrease) in accrued expenses and other
|
(3,022
|
)
|
(1,573
|
)
|
4,705
|
|||||||
|
Net cash used in operating activities
|
(5,035
|
)
|
(3,547
|
)
|
(5,818
|
)
|
||||||
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
|
Proceeds from sale of property and equipment
|
-
|
1,306
|
1,275
|
|||||||||
|
Purchase of property and equipment
|
(2,862
|
)
|
(989
|
)
|
(5,126
|
)
|
||||||
|
Purchase of intangible assets
|
-
|
-
|
-
|
|||||||||
|
Net cash provided by (used in) investing activities
|
(2,862
|
)
|
317
|
(3,851
|
)
|
|||||||
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
|
Repayments of long-term loans
|
(571
|
)
|
(440
|
)
|
(2,016
|
)
|
||||||
|
Net change in short term credit from banks
|
6,369
|
(4,000
|
)
|
(7,650
|
)
|
|||||||
|
Proceeds from issuance of common shares, net
|
-
|
-
|
9,827
|
|||||||||
|
Exercise of options
|
-
|
1
|
-
|
|||||||||
|
Net cash provided by (used in) financing activities
|
5,798
|
(4,439
|
)
|
161
|
||||||||
|
Net decrease in cash and cash equivalents and
restricted cash
|
(2,099
|
)
|
(7,669
|
)
|
(9,508
|
)
|
||||||
|
Cash and cash equivalents and restricted cash at beginning of period
|
7,434
|
16,942
|
16,942
|
|||||||||
|
Cash and cash equivalents and restricted cash at the end of period
|
$
|
5,335
|
$
|
9,273
|
$
|
7,434
|
||||||
|
SUPPLEMENTARY INFORMATION ON INVESTING ACTIVITIES NOT INVOLVING CASH FLOW:
|
||||||||||||
|
Additions to operating lease right-of-use assets and operating lease liabilities
|
147
|
345
|
983
|
|||||||||
|
Reclassification between inventory and property, plant and equipment
|
579
|
60
|
155
|
|||||||||
|
Supplemental disclosure of cash flow information:
|
||||||||||||
|
Interest paid
|
267
|
(442
|
)
|
(1,400
|
)
|
|||||||
|
Income taxes paid
|
-
|
-
|
(39
|
)
|
||||||||
10
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED)
(In thousands)
|
Three months ended
|
Year ended
|
|||||||||||
|
March 31,
|
December 31,
|
|||||||||||
|
2025
|
2024
|
2024
|
||||||||||
|
Net income
|
$
|
3,813
|
$
|
2,110
|
$
|
11,167
|
||||||
|
Adjustments:
|
||||||||||||
|
Provision for income taxes (taxes benefit)
|
592
|
(153
|
)
|
195
|
||||||||
|
Financial expense, net
|
58
|
449
|
1,949
|
|||||||||
|
Depreciation and amortization
|
1,353
|
1,428
|
5,717
|
|||||||||
|
Share based compensation
|
222
|
41
|
395
|
|||||||||
|
Share in profits of equity investment of affiliated companies
|
(293
|
)
|
(198
|
)
|
(809
|
)
|
||||||
|
Adjusted EBITDA
|
$
|
5,745
|
$
|
3,677
|
$
|
18,614
|
||||||
11
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.
|
|
TAT TECHNOLOGIES LTD.
(Registrant)
By: /s/ Ehud Ben-Yair
Ehud Ben-Yair
Chief Financial Officer
|
Date: May 19, 2025
12