Latest news with #TATT
Yahoo
4 days ago
- Business
- Yahoo
TAT Technologies Ltd (TATT) Q2 2025 Earnings Call Highlights: Strong Revenue Growth Amid Market ...
Release Date: August 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points TAT Technologies Ltd (NASDAQ:TATT) achieved double-digit revenue growth for the fourth consecutive quarter, with an 18% increase in Q2 2025 compared to the same period last year. The company's gross profit increased by 35%, and the gross margin expanded by 320 basis points to 25.1%, reflecting improved operational efficiencies. TAT Technologies Ltd (NASDAQ:TATT) increased its long-term agreement value and backlog by $85 million to $524 million, enhancing long-term visibility. The company generated approximately $7 million in positive cash flow from operations during the quarter, demonstrating the strength of its business model. TAT Technologies Ltd (NASDAQ:TATT) successfully completed a public offering, welcoming new institutional investors and increasing financial flexibility for potential acquisitions. Negative Points The company experienced some weaknesses in MRO intake, which affected short-term visibility and created fluctuations in revenue. TAT Technologies Ltd (NASDAQ:TATT) faced challenges due to the strength of the Israeli shekel compared to the US dollar, resulting in increased costs and a reduction in net profit. The aviation sector's macroeconomic and operational headwinds continue to pose challenges, impacting the company's short-term outlook. There is ongoing volatility in the MRO market, with potential short-term fluctuations in intake affecting revenue consistency. The trading and leasing business remains lumpy and difficult to forecast, adding complexity to revenue predictions. Q & A Highlights Warning! GuruFocus has detected 1 Warning Sign with TATT. Q: Can you elaborate on the MRO acceleration comments? Is the recovery broad-based or specific to certain markets? A: (Unidentified_2, CEO) The MRO market is experiencing volatility similar to past trends. Airlines initially reduce MRO work to save cash, leveraging spare inventory. However, as aircraft continue flying, especially older fleets, demand eventually rebounds. This recovery is not specific to any market but is a general trend observed over time. Q: What drove the strong cash flow in the quarter, and how do you view working capital growth going forward? A: (Unidentified_2, CEO) The company has focused on revenue growth, profitability, and now cash flow management. Improved collections and tighter controls have contributed to positive cash flow. We are well-positioned with the right inventories to support market demand and will continue to manage cash flow effectively. Q: How is the APU strategy progressing, particularly with smaller deals and moving upmarket? A: (Unidentified_2, CEO) The APU strategy is progressing well. We are capturing more market share in historical fleets and winning smaller RFPs on new platforms. This approach is promising and reflects in the growth of our backlog and long-term agreements. Q: Can you provide more color on the current dynamics in the APU market, especially regarding spares and maintenance? A: (Unidentified_2, CEO) The APU market is global, with airlines maintaining spare engines to manage short-term needs. Typically, airlines do not perform minimal repairs but wait until spare pools are low before sending engines for full repair. This behavior leads to fluctuations in demand. Q: Regarding M&A, are there specific capabilities or products you are targeting to expand your portfolio? A: (Unidentified_2, CEO) We aim to stay close to our existing capabilities while expanding into more mechanical systems and components. Our strategy focuses on being meaningful to customers by consolidating vendor lists and adding capabilities, particularly in MRO and OEM areas. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
21-07-2025
- Business
- Yahoo
Recent Analyst Ratings Forecast Further Upside For TAT Technologies Ltd. (TATT)
TAT Technologies Ltd. (NASDAQ:TATT) is among the 10 Best Small Cap Defense Stocks to Buy According to Hedge Funds. The stock has gained nearly 20% year-to-date, as of the close of business on July 16. Recent analyst ratings project further upside potential for its shares. Jordan Tan / On June 4, Truist Securities initiated coverage of TAT Technologies Ltd. (NASDAQ:TATT) with a Buy rating and announced a price target of $35 for the stock, with analysts viewing the company as a vital player in the commercial aerospace aftermarket component repair sector. Later in the month, on June 11, analysts at Benchmark lifted the stock's price target to $36 from $35, while maintaining a Buy rating for its shares. The adjustment followed impressive first-quarter results and a major APU contract with a leading international cargo carrier, which the firm described as a significant win. On June 18, Lake Street also initiated coverage of TAT Technologies Ltd. (NASDAQ:TATT) with a Buy rating and a price target of $37 per share. TAT Technologies Ltd. (NASDAQ:TATT) provides services and products for the commercial and military aerospace and ground defense sectors. Overall, Wall Street analysts have a consensus Buy rating for the stock, with a one-year average share price target of $35.50, representing an upside potential of 15.22%. While we acknowledge the potential of TATT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
TAT Technologies Ltd. (TATT): A Bull Case Theory
We came across a bullish thesis on TAT Technologies Ltd. (TATT) on @1rabbitresearch on X (Twitter). In this article, we will summarize the bulls' thesis on TATT. TAT Technologies Ltd. (TATT)'s share was trading at $30.33 as of 23rd May. TATT's trailing P/E was 26.37 according to Yahoo Finance. Andrey Khachatryan/ TAT Technologies (TATT) received a price target upgrade from Benchmark, raised to $35 from $30, while maintaining a Buy rating, reflecting continued confidence in the company's trajectory. The firm's optimism follows TAT's strong Q4 results, which surpassed expectations in both revenue and margins, marking the ninth consecutive quarter of growth. The company has positioned itself well to sustain this momentum through multiple operational tailwinds. Key among them are expanded capabilities in auxiliary power unit (APU) repairs, which serve as a high-value niche within the aviation aftermarket. Additionally, the firm notes the early stages of a landing gear replacement cycle, which could provide a meaningful revenue lift given TAT's capabilities in this segment. The company is also starting to benefit from contributions related to leasing and trading activity, offering a new growth vector that complements its core repair business. Moreover, rising demand for heat exchangers, driven by both commercial and defense aviation, further strengthens the growth outlook. These tailwinds align with management's consistent execution and improved operational efficiency, which have been visible across the last nine quarters. TAT's ability to deliver strong margin performance in tandem with revenue growth indicates not just a cyclical upswing but also real operational leverage and business improvement. The cumulative impact of these factors supports Benchmark's view that the stock has further upside from current levels, particularly as the company continues to scale its diversified aviation aftermarket offerings. The upgraded price target reflects increased confidence in earnings durability and valuation upside as execution remains strong. TAT Technologies Ltd. (TATT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held TATT at the end of the fourth quarter which was 3 in the previous quarter. While we acknowledge the risk and potential of TATT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TATT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
22-05-2025
- Business
- Business Insider
TAT Technologies expands MRO partnership with cargo carrier
TAT Technologies (TATT) 'announced the signing of a five-year maintenance, repair, and overhaul – MRO – agreement with one of the world's leading cargo carriers. This agreement is a 5-year extension of an existing contract for APU repairs on the U.S. fleet of 767 and 757 aircraft, now expanded to support the carrier's global fleet. Additionally, under this extension, TAT will provide repair services for two new APU platforms: B737 and A300. The company was also awarded the 777 APU contract for the next 7 years. The parties are expecting to sign the extension for the 777 APU during May- June 2025. The total value of the contracts is estimated to be between $40 million to $55 million over the next five years.' Confident Investing Starts Here:
