TAT Technologies Ltd., a leading provider of products and services to the commercial and military aerospace and ground defense industries, announced its unaudited results for the three-month and six-month period ended June 30, 2024. The company delivered another record quarter, marking the seventh consecutive quarter of expanding revenues and profits.
Financial Highlights
For the second quarter of 2024, TAT Technologies experienced a significant surge in its financial performance:
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Revenues:
Increased by 36.2% to $36.5 million compared to $26.8 million in the same period last year.*
Gross Profit:
Increased by 47.1% to $8.0 million, representing 21.9% of revenues, compared to 20.2% in the previous year’s second quarter.*
Operating Income:
Increased by 78.5% to $2.7 million, representing 7.5% of revenues, compared to 6.5% in the previous year’s second quarter.*
Net Income:
Increased by 78% to $2.6 million compared to $1.5 million in the second quarter of 2023.*
Adjusted EBITDA:
Increased by 69.4% to $4.3 million (11.9% of revenues), compared to $2.6 million (9.6% of revenues) in the second quarter of 2023.For the first six months of 2024:
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Revenues:
Increased by 36% to $70.6 million compared to $52 million in the first half of 2023.*
Gross Profit:
Increased by 55.4% to $15.1 million, representing 20.9% of revenues, compared to 18.6% in the first half of 2023.*
Operating Income:
Increased by 99% to $4.9 million, representing 7% of revenues, compared to 4.8% in the first half of 2023.*
Net Income:
Increased by 122% to $4.7 million compared to $2.1 million in the first half of 2023.*
Adjusted EBITDA:
Increased by 73% to $8 million (11.4% of revenues), compared to $4.6 million (9% of revenues) in the first half of 2023.
Driving Forces Behind the Growth
TAT Technologies attributed its impressive performance to several factors:
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Increasing Demand:
The company witnessed a surge in demand for its products and services, particularly in the areas of heat transfer solutions, aviation accessories, and MRO services.*
Strong Order Book:
TAT Technologies secured new orders exceeding $40 million during the second quarter, resulting in a record backlog and Long-Term Agreement (LTA) value of over $414 million.*
Operational Efficiency:
The company invested in improving its operational efficiency and cost structure, resulting in an improved gross margin and EBITDA margin.*
New Market Entry:
TAT Technologies entered a new market by serving Auxiliary Power Units (APUs) for the newly certified 131 and 331-500 engines, which serve a fleet of close to 20,000 aircraft with a total addressable annual market of about $2 billion.
Future Outlook
The company expressed strong confidence in its continued success, citing the growing momentum, robust backlog, and new market opportunities as key drivers of future revenue growth and profitability. TAT Technologies plans to leverage its new market entry and continue expanding its customer base for engine maintenance, repair, and overhaul (MRO) services.
Webcast Review
For investors seeking further insights, TAT Technologies’ CEO, Igal Zamir, and CFO, Ehud Ben-Yeir, hosted a webcast reviewing the financial results and providing a business update. The webcast is accessible on the company’s investor relations website at https://tat-technologies.com/investors/ for at least 90 days.
About TAT Technologies Ltd.
TAT Technologies Ltd. is a leading provider of services and products to the commercial and military aerospace and ground defense industries. The company operates under four segments:
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Original Equipment Manufacturing (OEM):
Heat transfer solutions and aviation accessories through its Gedera facility.*
MRO Services for Heat Transfer Components:
Through its Limco subsidiary, providing MRO services and OEM of heat transfer solutions.*
MRO Services for Aviation Components:
Through its Piedmont subsidiary, providing MRO services for APUs, landing gears, and other aircraft components.*
Overhaul and Coating of Jet Engine Components:
Through its Turbochrome subsidiary, providing overhaul and coating services for jet engine components.TAT Technologies is committed to providing high-quality products and services that meet the demanding requirements of its customers in the aerospace and defense industry. The company’s strong financial performance, growing order book, and new market entry positions it for continued success in the years to come.
