The strong earnings beat and record backlog confirm multi-year growth trajectory, while the Honeywell strategic expansion adds a new aftermarket revenue stream. Watch for potential upside revisions to consensus estimates. The negative cash flow from operations due to working capital build warrants monitoring, but the overall momentum is clearly positive.
Price Chart
Executive Summary
TAT Technologies reported Q2 2026 results with record revenue of $52.9M (up 22.8% YoY), operating income growth of 26.8% to $5.6M, and adjusted diluted EPS of $0.35 (up 16.7% from $0.30). Backlog hit a record $615M, and the company expanded its strategic relationship with Honeywell Aerospace with a sole APU parts distribution deal and extended MRO license through 2036. The strong operational momentum and record backlog support multi-year revenue visibility.
Key Facts
- Q2 2026 revenue $52.9M, up 22.8% from $43.1M in Q2 2025
- Gross margin improved to 25.2% vs 25.1%
- Operating income $5.6M, up 26.8% from $4.4M
- Adjusted diluted EPS $0.35 (excluding $4.3M one-time gain), up from $0.30
- Record backlog and long-term agreements of approximately $615M, up from $580M in Q1 2026
- Expanded Honeywell relationship: sole distributor of 331-200 APU parts, MRO license extended to 2036, and acquired three 131-9A APUs for leasing
- Cash flow used in operations of $(0.6)M vs $6.9M provided in Q2 2025
Financial Impact
Revenue growth of 22.8%, operating income growth of 26.8%, record backlog of $615M
Risk Factors
- Negative operating cash flow in Q2 due to working capital expansion
- Supply chain conditions not fully normalized
- Geopolitical risk from operations in Israel and regional conflicts
- Higher tax rate (1.9M vs 0.2M in prior year Q2) may pressure future earnings
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001178913-26-003832 |
| Document: 0001178913-26-003832-index-headers.html | 0001178913-26-003832 |
| Document: 0001178913-26-003832-index.html | 0001178913-26-003832 |
| Document: 0001178913-26-003832.txt | 0001178913-26-003832 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 9, 2026 6w ago | 6-K | $38.67 $32.50 | ▼ −15.96% | ▼ −17.90% | $32.96 (−14.77%) |
Aug 5, 2026 11w ago | 6-K | $42.62 $37.03 | ▼ −13.12% | ▼ −12.51% | $32.96 (−22.67%) |
Aug 5, 2026 11w ago | 6-K | $42.62 $37.03 | ▼ −13.12% | ▼ −12.51% | $32.96 (−22.67%) |
Aug 5, 2026 11w ago | 6-K | $42.62 $37.03 | ▼ −13.12% | ▼ −12.51% | $32.96 (−22.67%) |
Jul 14, 2026 15w ago | 6-K | $44.26 $37.74 | ▼ −14.73% | ▼ −17.22% | $32.96 (−25.53%) |
Jun 3, 2026 20w ago | 6-K | $42.82 $47.60 | ▲ +11.16% | ▲ +12.16% | $32.96 (−23.03%) |
May 20, 2026 22w ago | 6-K | $39.54 $46.76 | ▲ +18.26% | ▲ +17.52% | $32.96 (−16.64%) |
US Market Status
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