TAT Technologies (TATT) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $178.0 million in 2025, up 17% year-over-year, with margin expansion and the third consecutive year of record results.

• Q4 revenue grew 13.4% to $46.5 million, with organic growth outpacing industry averages.

• Backlog and long-term agreements rose to $550 million at year-end, supporting strong revenue visibility into 2026.

• Growth was broad-based across all business lines, with significant market share gains and expansion of the U.S. institutional investor base.

• Entering 2026 with a strong balance sheet, record backlog, and high confidence in continued growth.

Financial highlights

• Full-year revenue grew 17% to $178.0 million; Q4 revenue reached $46.5 million, up 13.4% year-over-year.

• Gross profit for Q4 increased 23.6% to $11.7 million (25.2% margin); full-year gross profit rose 33.6% to $44.1 million (24.8% margin).

• Operating income for Q4 was $4.9 million (10.6% margin), up 20.2%; full-year operating income was $18.8 million (10.6% margin), up 50.5%.

• Net income for Q4 was $4.7 million, up 32.2%; full-year net income was $16.8 million, up 50.6%.

• Adjusted EBITDA for Q4 was $6.9 million (14.8% margin); full-year adjusted EBITDA was $25.5 million (14.3% margin), up 36.8%.

• Operating cash flow for the year was $15.0 million, a 60% conversion from adjusted EBITDA.

Outlook and guidance

• Backlog and long-term agreements of $550 million provide strong revenue visibility and support continued growth through 2026.

• Management expects continued revenue growth and margin expansion, with M&A as a strategic priority.

• Some operational challenges anticipated in early 2026 due to ongoing supply chain issues.

• Market outlook projects a 6.9% CAGR for global component MRO through 2032.