TAT Technologies Ltd. (TATT) AI Stock Analysis
TATT AI stock analysis summary
AI ResearchTAT Technologies Ltd. (TATT) provides heat transfer solutions, aviation accessories, and MRO services for the commercial aerospace, military, and ground defense sectors. In FY2025, revenue grew 17.0% to $178.0M while net income climbed to $16.8M. The company maintains a strong balance sheet with $38.0M in net cash and a current ratio of 4.83 as of June 30, 2026.
- Market cap
- $426.9M
- Revenue (TTM)
- $186.9M
- P/E
- 20.7x fwd 9.0x
- 1Y return
- -18.7% S&P 500 16.8%
- Avg. target
- $60.71 84.9% vs last close
Bull case
- Trailing twelve-month earnings per share reached $1.59, supported by 103.3% year-over-year quarterly earnings growth for the quarter ended June 30, 2026.
- The company has a solid liquidity buffer with $54.6M in cash and short-term investments and net cash of $38.0M as of June 30, 2026.
- Analysts maintain 7 Strong Buy recommendations with an average price target of $60.71, representing an 84.9% premium over the recent share price.
Bear case
- The stock has experienced negative momentum, dropping 26.5% year-to-date and trading 24.0% below its 200-day moving average.
- Free cash flow was negative in four of the last five fiscal years, including -$10.9M in FY2024.
- Shareholders have faced dilution, with the share count increasing 48.0% over the trailing five-year period.
What TAT Technologies does
TAT Technologies Ltd., based in Netanya, Israel, delivers solutions and services to the commercial and military aerospace industries as well as the ground defense sector. The company operates across four main segments: Original Equipment Manufacturing (OEM) of Heat Transfer Solutions and Aviation Accessories, Maintenance, Repair, and Overhaul (MRO) Services for Heat Transfer Components and OEM of Heat Transfer Solutions, MRO Services for Aviation Components, and Overhaul and Coating of Jet Engine Components. Its product lineup includes pre-coolers, oil and fuel hydraulic heat exchangers, environmental control systems, cooling systems, pumps, valves, and turbine power units, alongside repair station services for airlines and military clients.
Growth and profitability
TAT Technologies expanded revenue from $78.0M in FY2021 to $178.0M in FY2025, reflecting a 5-year revenue CAGR of 18.8%. Net income shifted from -$3.6M in FY2021 to $16.8M in FY2025, with net margin improving from -4.6% to 9.4%. Operating margin expanded from -5.2% in FY2021 to 10.3% in FY2025. Over the trailing twelve months ended June 30, 2026, revenue reached $186.9M and net margin was 11.3%. For the latest quarter ended June 30, 2026, quarterly revenue grew 22.8% year-over-year, while quarterly earnings surged 103.3% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, TAT Technologies held $54.6M in cash and short-term investments against $16.7M in total debt, yielding net cash of $38.0M. Shareholders' equity was $188.9M, with a low debt-to-equity ratio of 0.09 and a current ratio of 4.83. Operating cash flow improved to $15.0M in FY2025, while free cash flow reached $4.0M after accounting for $11.0M in capital expenditures. Share count increased by 48.0% over five years.
Valuation and performance
At a closing price of $32.84 on October 16, 2026, TAT Technologies had a market cap of $426.9M and an enterprise value of $463.9M. The stock trades at a trailing P/E of 20.7x, which sits below the median of 24.8x for its US-listed Industrials peers. Its forward P/E of 9.0x is also lower than the peer median of 17.2x, while EV/EBITDA stands at 16.2x compared to the peer median of 13.9x. Over the past year, the stock returned -18.7%, underperforming the S&P 500 (SPY) return of 16.8%.
What analysts expect
Wall Street coverage includes 7 Strong Buy ratings, with zero Buy, Hold, Sell, or Strong Sell ratings. The mean price target is $60.71, implying upside of 84.9% from the last close of $32.84. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $1.55 on revenue of $198.9M. Over the last 4 quarters, the company beat EPS estimates 1 time. The next earnings date is November 11, 2026.
Key risks and what to watch
- Short interest stands at 17.2% of float, indicating substantial market skepticism or potential price volatility.
- The company only beat EPS estimates in 1 of the last 4 quarters.
- Capital expenditures reached $11.0M in FY2025, which limited annual free cash flow to $4.0M despite $15.0M in operating cash flow.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this TATT AI stock analysis
This page is an AI-written research summary of TAT Technologies Ltd. (TATT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: TATT income statement, TATT balance sheet, TATT key metrics, TATT analyst forecast, TATT chart. See the TATT stock overview for the latest quote and news.
TATT AI stock analysis FAQ
What does TAT Technologies Ltd. do?
TAT Technologies Ltd. designs and manufactures heat transfer solutions and aviation accessories for commercial aerospace, military, and ground defense applications. It also provides maintenance, repair, and overhaul (MRO) services for heat transfer and aviation components, along with jet engine component overhaul.
What are the revenue and earnings expectations for TATT?
For the fiscal year ending December 31, 2026, consensus estimates project revenue of $198.9M and EPS of $1.55. For the next fiscal year, estimates forecast revenue of $228.2M and EPS of $2.04.
Does TAT Technologies pay a dividend?
TAT Technologies does not currently pay a dividend.
What is TAT Technologies' financial position regarding debt?
As of June 30, 2026, the company held $54.6M in cash and short-term investments against $16.7M in total debt, resulting in net cash of $38.0M and a debt-to-equity ratio of 0.09.