v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 9 - SEGMENT INFORMATION

 

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 evaluates segment performance and allocates 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.

 

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:

 

    Three Months Ended June 30, 2026  
    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 Intercompany sales     Consolidated  
                                     
Revenues - external   $ 11,131     $ 11,902     $ 27,641     $ 2,264     $ -     $ 52,938  
Revenues - internal     -       103       63       -       (166 )     -  
                                                 
Cost of revenues     8,252       8,697       21,325       1,540       (196 )     39,618  
Gross profit     2,879       3,308       6,379       724       30       13,320  
                                                 
Research and development     192       298       -       45       -       535  
Selling and marketing     697       491       1,175       167       -       2,530  
General and administrative     1,198       1,018       2,202       214       -       4,632  
Operating income   $ 792     $ 1,501     $ 3,002     $ 298     $ 30       5,623  
                                                 
Gain on sale of equity investment                                             4,324  
Interest expenses                                             (182 )
Other financial expenses, net                                             (368 )
Income before taxes                                           $ 9,397  

 

    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 Intercompany sales     Consolidated  
                                     
Revenues - external   $ 9,555     $ 11,301     $ 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     2,894       3,439       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   $ 868     $ 1,741     $ 832     $ 967     $ 27       4,435  
                                                 
Financial expenses, net                                             (1,100 )
Income before taxes                                           $ 3,335  

 

    Six Months Ended June 30, 2026  
    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 Intercompany sales     Consolidated  
                                     
Revenues - external   $ 21,829     $ 22,933     $ 44,503     $ 4,820     $ -     $ 94,085  
Revenues - internal     42       195       74       -       (311 )     -  
                                                 
Cost of revenues     15,974       16,290       35,790       3,079       (399 )     70,734  
Gross profit     5,897       6,838       8,787       1,741       88       23,351  
                                                 
Research and development     443       547       -       116       -       1,106  
Selling and marketing     1,375       993       2,006       338       -       4,712  
General and administrative     2,555       2,114       3,787       469       -       8,925  
Operating income   $ 1,524     $ 3,184     $ 2,994     $ 818     $ 88       8,608  
                                                 
Gain on sale of equity investment                                             4,324  
Interest expenses                                             (330 )
Other financial expenses, net                                             (181 )
Income before taxes                                           $ 12,421  

 

    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 Intercompany sales     Consolidated  
                                     
Revenues - external   $ 19,304     $ 23,210     $ 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     5,807       7,093       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   $ 2,104     $ 3,906     $ 794     $ 1,718     $ 83       8,605  
                                                 
Financial expenses, net                                             (1,158 )
Income before taxes                                           $ 7,447  

 

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

 

    Six Months Ended June 30, 2026  
    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   $ 70,279     $ 50,686     $ 115,719     $ 10,762     $ (859 )   $ 246,587  
Depreciation and amortization     533       584       1,483       184       (80 )     2,704  
Expenditure for segment assets     989       354       1,037       278       -       2,658  

 

    Year Ended December 31, 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   $ 78,541     $ 45,305     $ 93,473     $ 10,321     $ (911 )   $ 226,729  
Depreciation and amortization     905       1,107       2,894       356       (161 )     5,101  
Expenditure for segment assets     3,179       839       7,180       225       -       11,423