Start here if you're new
what it is
TAT fixes aircraft and engine parts, then sells some of the hardware too, for airlines, cargo carriers, and the military.
how it gets paid
Last year Tat Technologies made $152M in revenue. Heat transfer MRO services was the main engine at $58M, or 38% of sales.
what just happened
Revenue hit $131M and EPS reached $1.02, showing the turnaround is still moving.
At a glance
B+ balance sheet — decent shape, but not bulletproof
30/100 earnings predictability — expect surprises
38.6x trailing p/e — you're paying up for this one
9.7% return on capital — nothing to write home about
$1.00 fy2024 eps est
xvary composite: 70/100 — average
What they do
TAT fixes aircraft and engine parts, then sells some of the hardware too, for airlines, cargo carriers, and the military.
Your airline can delay a cabin refresh. It cannot delay a certified repair on a heat exchanger or engine part. TAT sits inside that must-fix work across commercial and military aerospace, and it turned $152M of revenue into an 11.6% operating margin in 2024.
How they make money
$152M
annual revenue
Heat transfer MRO services
$58M
+6.0%
Aviation component MRO
$40M
+0.5%
Jet engine overhaul and coating
$32M
+0.5%
OEM heat transfer and accessories
$22M
+0.5%
The products that matter
maintenance, repair, and overhaul
MRO & Services
$92M · 60.5% of revenue
This is the center of gravity. It brought in $92M, and the recent $46.2M quarter was driven mainly by maintenance and services activity. Same business. Same pressure point.
backlog converter
aircraft component manufacturing
Heat Exchangers
$35M · +6% growth
This $35M segment is 23.0% of revenue and grew 6%. Helpful, but not fast enough to carry a 41.2x earnings multiple on its own.
23.0% of revenue
aircraft parts inventory
Trading & Leasing
$25M · 16.5% of revenue
This $25M segment rounds out the model. The current page inputs do not break out its growth, which tells you the present disclosure is still thin where you would want more detail.
disclosure thin
Key numbers
38.6x
trailing p/e
You are paying 38.6 years of trailing earnings for a small aerospace supplier. Plain English: the stock already expects a lot. So what: any slowdown gets punished fast.
11.6%
operating margin
Operating margin → profit left after running the business → so what: TAT keeps about 12 cents from each sales dollar before interest and taxes.
$14M
long-term debt
Long-term debt → money owed over many years → so what: with debt at just 2% of capital, the balance sheet is not the main problem here.
9.7%
return on capital
Return on capital → how much profit management gets from the money tied up in the business → so what: this is decent, not elite.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 1 — safer than 95% of stocks
- price stability 35 / 100
- long-term debt $14M (2% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for TATT right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $131M and EPS reached $1.02, showing the turnaround is still moving.
Gross margin was 24.6%, which matters because repair and overhaul businesses live or die on execution. The bigger picture is a sharp earnings swing from a $0.18 loss in 2022 to $1.00 in 2024.
$131M
revenue
$1.02
eps
24.6%
gross margin
the number that mattered
Gross margin at 24.6% is the key read-through because it tells you this was not just revenue noise. The work was priced and executed better.
source: company earnings report, 2026
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What could go wrong
the risk is not abstract. you are paying 41.2x earnings for a business earning 9.7% on capital, and the market is treating $439M of backlog like margin quality already came with it.
high
valuation compression
The stock trades at 41.2x earnings, roughly 3x the industry average. That is a premium multiple on a business with 9.7% return on capital and a 30 / 100 predictability score.
If the multiple fell from 41.2x to 20x and earnings stayed flat, the stock would roughly halve. The earnings would not need to break. The rating alone would do the damage.
med
backlog conversion risk
A $439M backlog sounds comforting because it is large next to $152M of annual revenue. Here is the catch: backlog only matters if it converts on time and at healthy margins.
If revenue growth cools while backlog stays large, investors start asking whether the backlog is delayed, lower quality, or less profitable than advertised. None of those questions help a premium multiple.
med
margin giveback
The page frames gross margin at 25% for FY25 versus 12% in FY20. That expansion is doing a lot of work in the story.
If margins slide back toward older levels, the bull case stops being "small aerospace company getting better" and starts being "small aerospace company had a very good stretch." The market prices those two stories very differently.
med
thin earnings visibility
Earnings predictability is 30 / 100, and the current source set is light on quarterly EPS detail. You are not working with a fully illuminated dashboard here.
When disclosure is patchy, the stock can swing on partial reads of revenue, contracts, and commentary. That tends to amplify volatility rather than reduce it.
Our kill criteria are simple. If backlog falls materially from $439M or margin progress reverses, the premium setup breaks. You do not need a collapse. You need one pillar of the story to stop carrying its weight.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q4 2025 earnings release
Scheduled for March 18, 2026. You want backlog, margin, and segment commentary more than polished headline growth.
margin
gross margin near 25%
The page frames FY25 gross margin at 25%, up from 12% in FY20. If that stalls or reverses, the stock loses the number that currently justifies the premium.
trend
backlog versus revenue pace
$439M of backlog against $152M of annual revenue is the key contrast on the page. You want backlog converting, not just accumulating.
valuation
premium multiple risk
At 41.2x earnings, TATT does not need bad news to fall. It only needs results that are less impressive than the stock already expects.
Analyst rankings
earnings predictability
30 / 100
Low predictability score. in human-speak, analysts do not see this as a smooth earnings story.
risk rank
1
This points to lower balance-sheet risk than most stocks. It does not mean your share price ride will be calm.
price stability
35 / 100
The business may be steadier than the chart. A 35 / 100 stability score says the stock can still move like a small cap.
source: institutional data
Institutional activity
institutional ownership data for TATT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$51
current price
n/a
target midpoint · n/a from current
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