News · TAT Technologies Ltd. (TATT) · Industrials
TAT Technologies rises 17.6% after stronger-than-expected quarterly results
What happened
TAT Technologies (TATT) rose 17.6% on November 2, 2026, because of quarterly results that beat expectations and signaled stronger demand in key businesses. The company reported record third-quarter 2026 results, with revenue up 20.2% and adjusted EBITDA rising 60.9%; diluted EPS increased 57.8%, according to Seeking Alpha and Zacks Investment Research. The stock opened 9.1% above the previous close and finished at $37.41 after the release.
How big was the move
The size of the move was 5.2 times a typical daily move for this stock, and trading volume was 5.2 times its 20-day average, signalling heavy investor attention on the news. The Industrials sector median on the day rose 1.3%, while the S&P 500 on the day fell 0.5%, leaving the stock 16.3 percentage points better than the sector median. Over the last five sessions the stock rose 14.5%, compared with the S&P 500 over five sessions, which fell 1.8%.
The session reaction was markedly larger than recent post-earnings behavior: typical two-day reaction after recent reports rose 4.6%, making the 17.6% one-day move on November 2 materially larger than the usual post-report response.
The technical picture
The stock sat 13.9% above its 20-day moving average and 5.2% above its 50-day moving average, while being 11.4% below its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index (14 days) was 62 (between 30 and 70, a neutral range).
Price momentum has been mixed: the stock rose 6.3% over one month but fell 10.2% over three months and one year, leaving it 42.0% below the 52-week high. Volatility was 54% annualized over 60 days, higher than 71% of its own readings over five years, indicating elevated price swings compared with the company’s recent history.
Fundamentals and valuation
For the four quarters through June 30, 2026, revenue was $186.9 million and grew 12.1% from a year earlier, following revenue growth one quarter earlier of growth of 10.5%. Diluted earnings per share were $1.60, and earnings per share growth from a year earlier rose 30.1%. Gross margin was 25.0% (a year earlier: 23.2%) and operating margin was 9.9% (a year earlier: 9.7%). The company reported free-cash-flow margin of 3.8% and return on invested capital of 7.5%, and the balance sheet showed net cash of $38.0 million.
Valuation measures showed price to trailing earnings at 23.4 times trailing earnings and price to forward earnings at 22.4 times expected earnings. The stock’s price to trailing earnings is lower than 79% of its own readings over the past five years (five-year median: 28.6 times earnings). Free-cash-flow yield was 1.7%.
Share count over one year increased by 12.6%, which dilutes per-share metrics and bears watching when assessing profitability and cash returns. The company’s PromtFinance scores rank Growth at 85 (Strong) and Revisions at 97 (Exceptional), while Momentum is 35 (Weak), reflecting mixed signals between recent operational strength and longer-term price action.
Earnings and analyst expectations
The last report, on November 2, 2026, delivered earnings per share of $0.58 against $0.39 expected, 47.5% above estimates. That marked three consecutive quarters beating estimates and an average surprise over the last four reports of 45.6% above estimates. Analysts covering the stock number six, with a consensus rating of Buy and 100% of analysts rating the stock Buy or Strong Buy.
The consensus price target is $65.00, a figure 73.8% above the closing price, reflecting analyst expectations for continued improvement in revenue and margins. Market sensitivity is modest: beta of 0.72 suggests the stock tends to move less than the market.
What to watch
- November 11, 2026: next report date for earnings and guidance updates
- Management commentary on demand in auxiliary power unit business, heat exchangers, and trading, leasing and distribution operations as cited in the earnings release
- Changes in share count and any capital return or issuance activity following the 12.6% increase in share count over one year
- Movements in the 200-day average and any shift that would change the status of the 50-day average being below the 200-day average
- Trends in adjusted EBITDA margins and free-cash-flow margin relative to the recent record third-quarter results