TAT Technologies (TATT) Q2 2026 earnings summary

Executive summary

• Revenue grew 22.8% year-over-year to $52.9 million in Q2 2026, with H1 2026 revenue at $94.1 million, driven by strong demand and easing supply chain constraints.

• Backlog reached a record $650 million, with long-term agreements and expanded Honeywell partnership, including sole distributorship for 331-200/250 APU parts and MRO license extended to 2036.

• Net income surged 134.5% year-over-year in Q2 2026 to $8.1 million, including a $4.3 million non-operating gain from the sale of a minority interest.

• M&A remains a key growth strategy, supported by a robust pipeline, strong balance sheet, and new credit facility.

• Strategic investments in R&D, inventory, and infrastructure target future growth in electrification, eVTOL, and aftermarket services.

Financial highlights

• Q2 2026 revenue: $52.9M (up 22.8% YoY); H1 2026: $94.1M (up 10.4% YoY); gross profit: $13.3M (25.2% margin); net income: $8.1M (EPS $0.61); adjusted net income: $4.66M (EPS $0.35).

• Adjusted EBITDA for Q2 2026: $7.4M (14% margin), up 22.7% YoY; H1 2026 adjusted EBITDA: $12.3M (up 4.1%).

• Operating income: $5.6M (10.6% margin) in Q2 2026; H1 2026: $8.6M.

• Cash flow from operations: $(0.6)M in Q2 2026; $1.4M for H1 2026; cash and cash equivalents at $54.6M at June 30, 2026.

• Shareholders' equity increased to $188.9M at June 30, 2026; long-term debt at $11.0M.

Outlook and guidance

• Record backlog and strong customer demand provide excellent revenue visibility for the remainder of 2026.

• Supply chain conditions are improving, expected to further enhance backlog conversion and operational efficiency.

• Strategic investments in R&D, inventory, and infrastructure to support growth and M&A.

• Management expects continued profitable growth and long-term value creation.

• Market outlook projects 6.9% CAGR in global component MRO demand through 2032.