The mixed results reflect a temporary supply-chain headwind against record demand and backlog. Monitor Q2 2026 earnings for resolution of OEM delivery delays — if revenue re-accelerates as guided, the stock could re-rate higher given the $580M backlog. The strong cash position ($51.2M) and improved operating cash flow provide a cushion. The 20-F annual report (filed 63 days ago) provides baseline context for segment performance.
Price Chart
Executive Summary
TAT Technologies reported Q1 2026 results with revenue of $41.1M (down 2.4% YoY from $42.1M), operating income of $3.0M (down from $4.2M), and net income of $3.4M (down from $3.8M). The decline was attributed to supply chain disruptions from OEM suppliers causing delivery delays. However, backlog and long-term agreements reached a record ~$580M, operating cash flow improved to +$1.9M from -$5.0M, and gross margin expanded 80bps to 24.4%. Management expects growth to resume in Q2 once supply issues resolve.
Key Facts
- Q1 2026 revenue $41.1M, down 2.4% YoY from $42.1M
- Gross profit stable at $10.0M; gross margin improved 80bps to 24.4%
- Operating income $3.0M vs $4.2M YoY (margin 7.3% vs 9.9%)
- Net income $3.4M vs $3.8M YoY
- Adjusted EBITDA $4.9M (11.8% of revenue) vs $5.7M (13.6%) YoY
- Operating cash flow improved to +$1.9M from -$5.0M YoY
- Backlog and long-term agreements reached record ~$580M
- EPS basic $0.26 vs $0.35 YoY; diluted $0.26 vs $0.34
- Cash and equivalents $51.2M, essentially flat from year-end 2025
- Inventory increased to $81.7M from $75.5M at year-end 2025
Financial Impact
Revenue declined $1.0M (-2.4%), operating income fell $1.2M (-28%), net income down $0.4M (-11%). Backlog grew to ~$580M record high.
Risk Factors
- Supply chain disruptions may persist longer than expected, delaying revenue recognition
- Inventory build of $6.4M in Q1 could signal working capital strain if deliveries don't normalize
- Operating margin compression (7.3% vs 9.9%) if cost pressures continue
- Forward-looking statements about Q2 recovery are not guaranteed
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001178913-26-002827 |
| Document: 0001178913-26-002827-index-headers.html | 0001178913-26-002827 |
| Document: 0001178913-26-002827-index.html | 0001178913-26-002827 |
| Document: 0001178913-26-002827.txt | 0001178913-26-002827 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 9, 2026 6w ago | 6-K | $38.67 $32.50 | ▼ −15.96% | ▼ −17.90% | $32.68 (−15.49%) |
Aug 5, 2026 11w ago | 6-K | $42.62 $37.03 | ▼ −13.12% | ▼ −12.51% | $32.68 (−23.32%) |
Aug 5, 2026 11w ago | 6-K | $42.62 $37.03 | ▼ −13.12% | ▼ −12.51% | $32.68 (−23.32%) |
Aug 5, 2026 11w ago | 6-K | $42.62 $37.03 | ▼ −13.12% | ▼ −12.51% | $32.68 (−23.32%) |
Jul 14, 2026 14w ago | 6-K | $44.26 $37.74 | ▼ −14.73% | ▼ −17.22% | $32.68 (−26.16%) |
Jun 3, 2026 20w ago | 6-K | $42.82 $47.60 | ▲ +11.16% | ▲ +12.16% | $32.68 (−23.68%) |
May 20, 2026 22w ago | 6-K | $39.54 $46.76 | ▲ +18.26% | ▲ +17.52% | $32.68 (−17.35%) |
US Market Status
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