v3.26.3
SEGMENT INFORMATION
 9 Months Ended
Sep. 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 September 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   $ 11,230     $ 11,948     $ 30,150     $ 2,235     $ -     $ 55,563  
Revenues – internal     49       83       115       -       (247 )     -  
                                                 
Cost of revenues     7,344       8,070       21,293       1,828       (159 )     38,376  
Gross profit     3,935       3,961       8,972       407       (88 )     17,187  
                                                 
Research and development     254       379       -       93       -       726  
Selling and marketing     498       541       1,154       191       -       2,384  
General and administrative     1,739       969       2,091       242       -       5,041  
Operating income (loss)   $ 1,444     $ 2,072     $ 5,727     $ (119 )   $ (88 )     9,036  
                                                 
Gain on sale of equity investment                                             -  
Interest expenses                                             (216 )
Other financial income, net                                             273  
Income before taxes                                           $ 9,093  

 

    Three Months Ended September 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   $ 10,397     $ 10,550     $ 22,980     $ 2,308     $ -     $ 46,235  
Revenues – internal     160       608       -       -       (768 )     -  
                                                 
Cost of revenues     7,382       8,504       18,146       1,400       (798 )     34,634  
Gross profit     3,175       2,654       4,834       908       30       11,601  
                                                 
Research and development     73       180       -       70       -       323  
Selling and marketing     345       580       925       143       -       1,993  
General and administrative     1,626       856       1,378       165       -       4,025  
Operating income   $ 1,131     $ 1,038     $ 2,531     $ 530     $ 30       5,260  
                                                 
Financial income, net                                             30  
Income before taxes                                           $ 5,290  

 

    Nine Months Ended September 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   $ 33,059     $ 34,881     $ 74,653     $ 7,055     $ -     $ 149,648  
Revenues – internal     91       278       189       -       (558 )     -  
                                                 
Cost of revenues     23,318       24,360       57,083       4,907       (558 )     109,110  
Gross profit     9,832       10,799       17,759       2,148       -       40,538  
                                                 
Research and development     697       926       -       209       -       1,832  
Selling and marketing     1,873       1,534       3,160       529       -       7,096  
General and administrative     4,294       3,083       5,878       711       -       13,966  
Operating income   $ 2,968     $ 5,256     $ 8,721     $ 699       -       17,644  
                                                 
Gain on sale of equity investment                                             4,324  
Interest expenses                                             (546 )
Other financial income, net                                             92  
Income before taxes                                           $ 21,514  

 

    Nine Months Ended September 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   $ 30,091     $ 33,371     $ 61,274     $ 6,745     $ -     $ 131,481  
Revenues – internal     497       1,506       -       -       (2,003 )     -  
                                                 
Cost of revenues     21,269       25,466       50,891       3,591       (2,116 )     99,101  
Gross profit     9,319       9,411       10,383       3,154       113       32,380  
                                                 
Research and development     391       494       -       2       -       887  
Selling and marketing     1,249       1,716       2,722       419       -       6,106  
General and administrative     4,106       2,594       4,337       485       -       11,522  
Operating income     3,573       4,607       3,324       2,248       113       13,865  
                                                 
Financial expenses, net                                             (1,128 )
Income before taxes                                           $ 12,737  

 

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

 

    Nine Months Ended September 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   $ 71,676     $ 46,689     $ 126,386     $ 10,156     $ (237 )   $ 254,670  
Depreciation and amortization     828       878       2,203       279       (122 )     4,066  
Expenditure for segment assets     1,471       630       4,755       308       -       7,164  

 

    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