v3.25.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION
NOTE 7 - SEGMENT INFORMATION
 
  a.
Segment Activities Disclosure:
 
TAT operates under four segments: (i) OEM of heat transfer solutions and aviation accessories mainly through its Kiryat Gat facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components (mainly APU and LG) through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary.
 
  ◾
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 of 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.
 
  ◾
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.
 
  ◾
MRO services for aviation components include the MRO of APUs, landing gears and other aircraft components, as well as APU lease activity. 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.
 
The Group’s chief operating decision-maker ("CODM") is the CEO of the Company. The CODM evaluate segment performance and allocate the Company’s resources, the CODM uses segment measures of revenue, gross profit, operating income and total assets. The CODM reviews budget-to-actual variances of both profit measures on a monthly basis when making decisions about allocation of the Company’s resources to the segments.
 
  b.
Segments statement operations disclosure:
 
The following financial information is the information that CODM uses for analyzing the segment results. The following financial information is a summary of the operating income of each operational segment:
 
   
Six Months Ended June 30, 2025
  
   
OEM of Heat Transfer Solutions and Aviation Accessories
    
MRO Services for heat transfer components and OEM of heat transfer solutions
    
MRO services for Aviation Components and Lease
    
 
Overhaul and coating of jet engine components
    
Elimination of inter-Company sales
    
Consolidated
  
                                     
Revenues - external
  
$
19,694
    
$
22,820
    
$
38,294
    
$
4,438
    
$
-
    
$
85,246
  
Revenues - internal
    
390
      
845
      
-
      
-
      
(1,235
)
    
-
  
                                                 
Cost of revenues
    
13,887
      
16,962
      
32,745
      
2,191
      
(1,318
)
    
64,467
  
Gross profit
    
6,197
      
6,703
      
5,549
      
2,247
      
83
      
20,779
  
                                                 
Research and development
    
320
      
312
      
-
      
(68
)
    
-
      
564
  
Selling and marketing
    
903
      
1,136
      
1,797
      
277
      
-
      
4,113
  
General and administrative
    
2,480
      
1,739
      
2,958
      
320
      
-
      
7,497
  
Operating income
  
$
2,494
    
$
3,516
    
$
794
    
$
1,718
    
$
83
    
 
8,605
  
                                                 
Financial expenses, net
                                            
(1,158
)
Income before taxes
                                          
$
7,447
  
 
   
Six Months Ended June 30, 2024
  
   
OEM of Heat Transfer Solutions and Aviation Accessories
    
MRO Services for heat transfer components and OEM of heat transfer solutions
    
MRO services for Aviation Components and Lease
    
 
Overhaul and coating of jet engine components
    
Elimination of inter-Company sales
    
Consolidated
  
Revenues - external
  
$
18,382
    
$
19,459
    
$
29,163
    
$
3,609
    
$
-
    
$
70,613
  
Revenues - internal
    
507
      
1,499
      
-
      
-
      
(2,006
)
    
-
  
                                                 
Cost of revenues
    
12,275
      
17,632
      
25,396
      
2,186
      
(1,926
)
    
55,563
  
Gross profit
    
6,614
      
3,326
      
3,767
      
1,423
      
(80
)
    
15,050
  
                                                 
Research and development
    
206
      
155
      
227
      
32
      
-
      
620
  
Selling and marketing
    
1,124
      
964
      
1,377
      
188
      
-
      
3,653
  
General and administrative
    
2,004
      
1,673
      
2,289
      
259
      
-
      
6,225
  
Other segment expenses (income)
    
-
      
(2
)
    
(388
)
    
-
              
(390
)
Operating income
  
$
3,280
    
$
536
    
$
262
    
$
944
    
$
(80
)
    
4,942
  
                                                 
Financial expenses, net
                                            
(756
)
Income before taxes
                                          
$
4,186
  

 

The following financial information is the information that CODM uses for analyzing the segment results. The following financial information is a summary of the operating income of each operational segment:
 
   
Three Months Ended June 30, 2025
  
   
OEM of Heat Transfer Solutions and Aviation Accessories
    
MRO Services for heat transfer components and OEM of heat transfer solutions
    
MRO services for Aviation Components and Lease
    
 
Overhaul and coating of jet engine components
    
Elimination of inter-Company sales
    
Consolidated
  
                                     
Revenues - external
  
$
9,608
    
$
11,248
    
$
19,996
    
$
2,252
    
$
-
    
$
43,104
  
Revenues - internal
    
53
      
277
      
-
      
-
      
(330
)
    
-
  
                                                 
Cost of revenues
    
6,714
      
8,139
      
16,700
      
1,083
      
(357
)
    
32,279
  
Gross profit
    
2,947
      
3,386
      
3,296
      
1,169
      
27
      
10,825
  
                                                 
Research and development
    
171
      
172
      
-
      
(103
)
    
-
      
240
  
Selling and marketing
    
452
      
582
      
1,009
      
142
      
-
      
2,185
  
General and administrative
    
1,403
      
944
      
1,455
      
163
      
-
      
3,965
  
Operating income
  
$
921
    
$
1,688
    
$
832
    
$
967
    
$
27
      
4,435
  
                                                 
Financial expenses, net
                                            
(1,100
)
Income before taxes
                                          
$
3,335
  

 

   
Three Months Ended June 30, 2024
  
   
OEM of Heat Transfer Solutions and Aviation Accessories
    
MRO Services for heat transfer components and OEM of heat transfer solutions
    
MRO services for Aviation Components and Lease
    
 
Overhaul and coating of jet engine components
    
Elimination of inter-Company sales
    
Consolidated
  
Revenues - external
  
$
9,367
    
$
10,220
    
$
15,191
    
$
1,747
    
$
-
    
$
36,525
  
Revenues - internal
    
222
      
728
                      
(950
)
        
                                                 
Cost of revenues
    
5,936
      
9,497
      
12,832
      
1,101
      
(825
)
    
28,541
  
Gross profit
    
3,653
      
1,451
      
2,359
      
646
      
(125
)
    
7,984
  
                                                 
Research and development
    
96
      
91
      
128
      
28
      
-
      
343
  
Selling and marketing
    
470
      
590
      
813
      
120
      
-
      
1993
  
General and administrative
    
968
      
757
      
1,127
      
64
      
-
      
2,916
  
Other segment expenses (income)
    
(2
)
    
-
      
-
      
-
              
(2
)
Operating income
  
$
2,121
    
$
13
    
$
291
    
$
434
    
$
(125
)
    
2,734
  
                                                 
Financial expenses, net
                                            
(307
)
Income before taxes
                                          
$
2,427
  

 

  c.
The following financial information identifies the assets, depreciation and amortization, and capital expenditures to segments:

 

   
Six Months Ended June 30, 2025
  
   
OEM of Heat Transfer Solutions and Aviation Accessories
    
MRO Services for heat transfer components and OEM of heat transfer solutions
    
MRO services for Aviation Components and Lease
    
Overhaul and coating of jet engine components
    
Amounts not allocated to segments
    
Consolidated
  
                                     
Total assets
  
$
73,499
    
$
43,516
    
$
87,423
    
$
11,033
    
$
(1,836
)
  
$
213,635
  
Depreciation and amortization
    
408
      
543
      
1,466
      
175
      
(79
)
    
2,513
  
Expenditure for segment assets
    
1,502
      
332
      
4,167
      
164
      
-
      
6,165
  
 
   
Year Ended December 31, 2024
  
   
OEM of Heat Transfer Solutions and Aviation Accessories
    
MRO Services for heat transfer components and OEM of heat transfer solutions
    
MRO services for Aviation Components and Lease
    
Overhaul and coating of jet engine components
    
Amounts not allocated to segments
    
Consolidated
  
                                     
Total assets
  
$
33,726
    
$
40,698
    
$
80,014
    
$
10,182
    
$
(1,258
)
  
$
163,362
  
Depreciation and amortization
    
642
      
1,040
      
3,412
      
388
      
(27
)
    
5,455
  
Expenditure for segment assets
    
1,972
      
1,124
      
1,347
      
683
      
-
      
5,126