TAT Technologies Grows Revenue by 34%, Net Income by 139%, and Adjusted EBITDA by 67% for the full year of 2024

Company Delivers 9th Consecutive Quarter of Expanding Revenues , /PRNewswire/ -- TAT Technologies Ltd. (TASE: TAT Tech) (NASDAQ: TATT) ("TAT" or the "Company"), a leading provider of products and services to the commercial and military aerospace and ground defense industries, today reported its unaudited results for the three and 12 months ended December 31, 2024 (Q4'24). Financial Highlights for the 12 Months Ended December 31, 2024: Revenue increased by 34% to $152.1 million, compared to $113.8 million for the same period in 2023. Gross profit increased by 47% to $33 million (21.7% of revenue) up from $22.5 million (19.7% of revenues) in the prior year. Net lncome increased by 139% to $11.2 million, or $1.0 per diluted share, compared to $4.7 million, or $0.51 per diluted share, in 2023. Adjusted EBITDA increased by 67% to $18.6 million, compared to $11.1 million in the prior year. Cash flow from operations was negative ($5.8) million compared to a positive $2.3 million in 2023. Mr. Igal Zamir, CEO and President of TAT Technologies commented: "TAT Technologies continues to deliver solid execution, marking our ninth consecutive quarter of revenue growth and improved profitability. This positive momentum reflects the early impact of the strategic growth engines introduced over the past years, which we believe will continue to drive our results in the years ahead." "In the fourth quarter, we launched our strategic 'Customer First' initiative, which is our key goal for 2025," continued Mr. Zamir. "Our commitment is to deliver exceptional customer service and best-in-class performance, even as the industry continues to face supply chain challenges. As part of this effort, we strategically increased our parts and rotatable inventory in areas where the supply chain is unstable, anticipating continued revenue growth in 2025. While this investment in inventory had a negative effect on our operational cash flow, it positions us to mitigate supply chain risks as we move forward". "Also in the fourth quarter, TAT won contracts and new orders totaling $47 million, increasing our backlog to a record high of $429 million, and validating our continued confidence in the company's growth trajectory," added Mr. Zamir. "In 2024, we expanded our engagement with the US and Israeli investors community, which contributed to a successful $10 million overnight capital raise and a 153% increase in our share price. We remain optimistic about the outlook for 2025. In addition to pursuing continued revenue growth, we are advancing several initiatives to improve our operational efficiency and our cost structure, which we expect to begin delivering results during 2025". Non-GAAP Financial Measures To supplement the consolidated financial statements presented in accordance with GAAP, the Company also presents Adjusted EBITDA. The adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company's underlying operational results, trends and performance. Adjusted EBITDA is calculated as net income excluding the impact of: the Company's share in results of affiliated companies, share-based compensation, taxes on income, financial (expenses) income, net, and depreciation and amortization. Adjusted EBITDA, however, should not be considered as alternative to net income and operating income for the period and may not be indicative of the historic operating results of the Company; nor it is meant to be predictive of potential future results. Adjusted EBITDA is not measure of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. See reconciliation of Adjusted EBITDA in pages 13 below. Investor Call Information TAT Technologies will host two webcasts to review its financial results and provide a business update, on Thursday, March 27, 2025, at 7:30 a.m. ET a call in Hebrew, followed by an additional call at 8:30 a.m. ET in English. Interested investors can register for the webcast at the links below or visit the investor relations section of the Company's website at https://tat-technologies.com/investors/. Conference call in English Conference call in Hebrew 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. TAT operates under four segments: (i) Original equipment manufacturing ("OEM") of heat transfer solutions and aviation accessories through its Gedera facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary. TAT controlling shareholders is the FIMI Private Equity Fund. TAT's activities in the area of OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) broad range of heat transfer solutions, such as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on board aircraft in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units. TAT's activities in the area of MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT's Limco subsidiary operates an FAA-certified repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers and the military. TAT's activities in the area of MRO services for aviation components include the MRO of APUs, landing gears and other aircraft components. TAT's Piedmont subsidiary operates an FAA-certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military. TAT's activities in the area of overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps. For more information of TAT Technologies Ltd., please visit our website: www.tat-technologies.com Contact:Mr. Eran YungerDirector of IR[email protected] TAT TECHNOLOGIES LTD. CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands December 31, 2024 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 7,129 $ 15,979 Accounts receivable, net of allowance for credit losses of $400 and $345 thousand as of December 31, 2024 and 2023 respectively 29,697 20,009 Restricted deposit - 661 Other current assets and prepaid expenses 7,848 6,397 Inventory 68,540 51,280 Total current assets 113,214 94,326 NON-CURRENT ASSETS: Restricted deposit 305 302 Investment in affiliates 2,901 2,168 Funds in respect of employee rights upon retirement 654 664 Deferred income taxes 877 994 Property, plant and equipment, net 41,576 42,554 Operating lease right of use assets 2,282 2,746 Intangible assets, net 1,553 1,823 Total non-current assets 50,148 51,251 Total assets 163,362 145,577 TAT TECHNOLOGIES LTD. CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands December 31, 2024 2023 LIABILITIES AND SHAREHOLDERS 'EQUITY CURRENT LIABILITIES: Current maturities of long-term loans $ 2,083 $ 2,200 Short term loans 4,350 12,138 Accounts payable 12,158 9,988 Accrued expenses and other 18,594 13,952 Current maturities of operating lease liabilities 939 1,033 Total current liabilities 38,124 39,311 NON-CURRENT LIABILITIES: Long-term loans 10,938 12,886 Liability in respect of employee rights upon retirement 986 1,000 Operating lease liabilities 1,345 1,697 Total non-current liabilities 13,269 15,583 COMMITMENTS AND CONTINGENCIES (NOTE 11) Total liabilities 51,393 54,894 SHAREHOLDERS 'EQUITY: Ordinary shares of NIS 0 par value and NIS 0.9 par value at December 31, 2024 and at December 31, 2023 respectively: Authorized: 13,000,000 shares at December 31, 2024 and at December 31, 2023; Issued: 11,214,831 and 10,377,085 shares at December 31, 2024 and at December 31, 2023 respectively; Outstanding: 10,940,358 and 10,102,612 shares at December 31, 2024 and at December 31, 2023 respectively - 3,140 Additional paid-in capital 89,697 76,335 Treasury shares, at cost, 274,473 shares at December 31, 2024 and 2023 (2,088) (2,088) Accumulated other comprehensive income (76) 27 Retained earnings 24,436 13,269 Total shareholders' equity 111,969 90,683 Total liabilities and shareholders' equity 163,362 145,577 TAT TECHNOLOGIES LTD. CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands Year ended December 31, 2024 2023 2022 Revenue: Products $ 47,710 $ 35,241 $ 25,460 Services 104,406 78,553 59,096 152,116 113,794 84,556 Cost of revenue, net: Products 33,986 30,517 21,631 Services 85,116 60,809 46,997 119,102 91,326 68,628 Gross profit 33,014 22,468 15,928 Operating expenses: Research and development, net 1,248 715 479 Selling and marketing, net 7,746 5,523 5,629 General and administrative, net 11,901 10,588 9,970 Other income (383) (433) (90) Restructuring expenses, net - 1,715 20,512 16,393 17,703 Operating income (loss) 12,502 6,075 (1,775) Interest expenses (1,472) (1,683) (902) Other financial income (expenses), net (477) 353 1,029 Income profit (loss) before taxes on income 10,553 4,745 (1,648) Taxes on income 195 576 98 Profit (Loss) before share of equity investment 10,358 4,169 (1,746) Share in profit of equity investment of affiliated companies 809 503 184 Net income (loss) $ 11,167 $ 4,672 $ (1,562) TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands, except share and per share data Year ended December 31, 2024 2023 2022 Net income (loss) $ 11,167 $ 4,672 $ (1,562) Net income (loss) per share basic $ 1.08 $ 0.52 $ (0.175) Net income (loss) per share diluted $ 1.00 $ 0.51 $ (0.175) Weighted average number of shares outstanding: 10,363,978 8,961,689 8,911,546 Basic Diluted 11,215,827 9,084,022 8,911,546 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) U.S. dollars in thousands Year ended December 31, 2024 2023 2022 Net income (loss) $ 11,167 $ 4,672 $ (1,562) Other comprehensive income (loss), net Net unrealized gains (losses) from derivatives (27) 53 (89) Change in foreign currency translation Adjustments (76) - - Reclassification adjustments for loss from derivatives included in net income - - 30 Total other comprehensive income (loss) (103) 53 (59) Total comprehensive income (loss) $ 11,064 $ 4,725 $ (1,621) TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY U.S. dollars in thousands, except share data Ordinary shares Number of shares issued Amount Additional paid-in capital Accumulated other comprehensive income (loss) Treasury shares Retained earnings Total equity BALANCE AT DECEMBER 31, 2021 9,149,169 $ 2,809 $ 65,871 $ 33 $ (2,088) $ 10,159 $ 76,784 CHANGES DURING THE YEAR ENDED DECEMBER 31, 2022: Comprehensive income (59) - (1,562) (1,621) Exercise of Options 36,850 33 156 189 Share based compensation 218 218 BALANCE AT DECEMBER 31, 2022 9,186,019 $ 2,842 $ 66,245 $ (26) $ (2,088) $ 8,597 $ 75,570 CHANGES DURING THE YEAR ENDED DECEMBER 31, 2023: Comprehensive income - - - 53 - 4,672 4,725 Exercise of Options 32,466 8 157 - - 165 Issuance of common shares net of issuance costs of $141 thousands 1,158,600 290 9,774 - - 10,064 Share based compensation 159 - - 159 BALANCE AT DECEMBER 31, 2023 10,377,085 $ 3,140 $ 76,335 $ 27 $ (2,088) $ 13,269 $ 90,683 CHANGES DURING THE YEAR ENDED DECEMBER 31, 2024: Comprehensive income(loss) - - - (103) - 11,167 11,064 Exercise of Options 164,406 12 (12) - - - - Cancel of shares par value )see note 12a( (3,152) 3,152 - - - - Issuance of common shares net of issuance costs of $162 thousands 673,340 - 9,827 - - - 9,827 Share based compensation - 395 - - - 395 BALANCE AT DECEMBER 31, 2024 11,214,831 - $ 89,697 $ (76) $ (2,088) $ 24,436 $ 111,969 TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Year ended December 31, 2024 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 11,167 $ 4,672 $ (1,562) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 5,455 4,710 3,706 Loss (gain) from change in fair value of derivatives 22 (9) 8 Change in funds in respect of employee rights upon retirement 10 116 377 Net change in operating right of use asset and operating lease liability 18 22 (82) Non cash financial expenses (187) (172) (902) Decrease in restructuring plan provision (63) (126) (467) Change in allowance for credit losses 55 (182) 138 Share in results of affiliated companies (809) (503) (184) Share based compensation 395 159 218 Liability in respect of employee rights upon retirement (14) (148) (356) Capital gain from sale of property, plant and equipment (478) (530) (90) Deferred income taxes, net 117 235 23 Changes in operating assets and liabilities: Increase in trade accounts receivable (9,743) (4,205) (2,659) Increase in other current assets and prepaid expenses (1,473) (341) (1,836) Increase in inventory (17,165) (5,400) (5,069) Increase (decrease) in trade accounts payable 2,170 (245) 1,143 Increase in accrued expenses and other 4,705 4,202 2,727 Net cash provided by (used in) operating activities from continued operation $ (5,818) $ 2,255 $ (4,867) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of property and equipment 1,275 2,002 93 Purchase of property and equipment (5,126) (5,102) (16,213) Purchase of intangible assets - (479) - Net cash used in investing activities from continued operations $ (3,851) $ (3,579) $ (16,120) TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED) U.S. dollars in thousands Year ended December 31, 2024 2023 2022 CASH FLOWS FROM FINANCING ACTIVITIES: Repayments of long-term loans (2,016) (1,701) (1,071) Net change in short term credit from banks (7,650) 1,000 - Proceeds from long-term loans received - 712 16,680 Proceeds from issuance of common shares, net 9,827 10,064 - Exercise of options - 165 189 Net cash provided by financing activities from continued operations $ 161 $ 10,240 $ 15,798 Net increase (decrease) in cash and cash equivalents and restricted cash (9,508) 8,916 (5,189) Cash and cash equivalents and restricted cash at beginning of period 16,942 8,026 13,215 Cash and cash equivalents and restricted cash at end of period 7,434 16,942 8,026 SUPPLEMENTARY INFORMATION ON INVESTING ACTIVITIES NOT INVOLVING CASH FLOW: Purchase of property, plant and equipment on credit - - 196 Additions of operating lease right-of-use assets and operating lease liabilities 983 1,345 318 Reclassification of inventory to property, plant and equipment 155 68 284 Capital contribution to equity method investee - - 787 Supplemental disclosure of cash flow information: Interest paid (1,400) (1,438) (796) Income taxes received (paid), net $ (39) $ - $ - TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED) U.S. dollars in thousands Year ended December 31, 2024 2023 Net income $11,167 $4,672 Adjustments: Share in results and sale of equity investment of affiliated companies (809) (503) Taxes on income (tax benefit) 195 576 Financial expenses (income), net 1,949 1,330 Depreciation and amortization 5,717 4,902 Share based compensation 395 159 Adjusted EBITDA $ 18,614 $11,136 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. TAT TECHNOLOGIES LTD. (Registrant) By: /s/ Ehud Ben-YairEhud Ben-YairChief Financial Officer Date: March 26, 2025 SOURCE TAT Technologies Ltd WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

TAT Technologies Grows Revenue by 34%, Net Income by 139%, and Adjusted EBITDA by 67% for the full year of 2024

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