Result vs. Consensus
TAT Technologies posted Q2 2025 revenue of $107.3 million, comfortably above the Wall Street consensus of roughly $96 million (≈+11% YoY and +11% versus the estimate). On the earnings side, the company reported $0.07 EPS (adjusted) versus analysts’ average forecast of $0.05 EPS, delivering a ~40% earnings beat. The beat was driven by a 13% jump in aerospace‑defense sales and better‑than‑expected margins on its defense‑systems segment, which offset a modest slowdown in the commercial aerospace line‑up.
Trading Implications
The surprise upside has already sparked a 2‑3% pre‑market rally in TATT shares, with the stock trading above its 50‑day moving average on higher volume. The earnings beat and revenue beat suggest that the company’s defense‑contract pipeline is materializing faster than analysts anticipated, which could support a short‑term upside target of $15–$16 (≈10–12% above the current level) if the price consolidates above the $14.50 – $15.00 range. However, the stock remains relatively thin‑traded; a breach below the 20‑day EMA ($13.90) could trigger a corrective pull‑back, especially if investors re‑price the risk of a softening commercial aerospace market. For risk‑adjusted entry, consider buying on a retracement to the 20‑day EMA with a stop‑loss a few cents below the recent low, targeting the 50‑day SMA as the next upside milestone.