TAT Technologies (TATT) Q2 2024 earnings summary

Executive summary

• Revenue in H1 2024 was primarily driven by historical products and services, with new APU engine capabilities contributing insignificantly so far.

• Expansion into the newly certified 131 and 331-500 APU market, serving a fleet of nearly 20,000 aircraft with a $2B addressable annual market, is expected to drive future growth.

Financial highlights

• H1 2024 revenues reached $70.6M, up from $52.0M in H1 2023; Q2 2024 revenues were $36.5M, up from $26.8M in Q2 2023.

• Net income for H1 2024 was $4.7M, more than double H1 2023's $2.1M; Q2 2024 net income was $2.6M, up from $1.5M in Q2 2023.

• Gross profit for H1 2024 was $15.1M, up from $9.7M in H1 2023; Q2 2024 gross profit was $8.0M, up from $5.4M in Q2 2023.

• Basic EPS for H1 2024 was $0.46, compared to $0.24 in H1 2023.

• Adjusted EBITDA for H1 2024 was $8.0M, up from $4.7M in H1 2023.

Outlook and guidance

• Management anticipates significant future revenue and profit growth as the company leverages new APU engine capabilities and expands its customer base.