TAT Technologies backlog climbs to record $580M as supply delays slow Q1 revenue

TAT Technologies (NASDAQ:TATT), a provider of products and services to the commercial and military aerospace and ground defense industries, reported its unaudited financial results for the first quarter ended March 31, 2026.

While widespread aerospace supply chain constraints temporarily slowed delivery schedules, robust contract intake pushed the company's total order backlog to an all-time high.

Total revenue for the quarter was $41.1 million, down 2.4% compared to the $42.1 million recorded in the first quarter of 2025.

Management attributed the slight top-line contraction directly to component shortages and delayed shipments from select original equipment manufacturer (OEM) suppliers.

Despite the lower production volumes, gross profit held steady year-over-year at $10 million, allowing the company's gross margin to expand by 80 basis points to 24.4% on a favorable services mix.

Operating income for the three-month period reached $3 million, representing a decline from the $4.2 million posted in the prior year's matching window, which lowered the operating margin to 7.3%.

Net income settled at $3.4 million, while adjusted EBITDA came in at $4.9 million, down from $5.7 million a year ago.

However, cash generation showed sharp improvement, with operating cash flow swinging to a positive $1.9 million from a cash utilization outflow of $5 million in the first quarter of 2025.

The core operational highlight centered on the company's long-term commercial pipeline.

Driven by new contract wins and heavy customer demand across all four primary service lines, TAT's total combined backlog and long-term agreements grew to approximately $580 million by the end of March.