Page 1

Press Release TAT Technologies Reports Third Quarter 2021 Results ITEM 1 Source : TAT Technologies Limited GEDERA , Israel , November 4 , 2021 - TAT Technologies Ltd. ( NASDAQ : TATT - News ) ( " TAT " or the " Company " ) , a leading provider of products and services to the commercial and military aerospace and ground defense industries , reported today its unaudited results for the three month and nine month periods ended September 30 , 2021 . Key Financial Highlights : • • Revenues for Q3 2021 were $ 17.6 million compared to $ 16.8 million in Q3 2020. Revenues for the nine - month period that ended on September 30 , 2021 were $ 57.6 million compared with $ 58.8 million in the nine - month period that ended on September 30 , 2020 . Gross profit for Q3 2021 more than doubled to $ 3 million ( 16.8 % as a percentage of revenues ) compared with $ 1.4 million ( 8.3 % as a percentage of revenues ) in Q3 2020. Gross profit for the nine - month period that ended on September 30 , 2021 , was $ 9.5 million ( 16.5 % as a percentage of revenues ) compared with $ 7.5 million ( 12.7 % as a percentage of revenues ) in the nine - month period that ended on September 30 , 2020 . Adjusted EBITDA for Q3 2021 significantly improved to $ 1.03 million compared with negative $ 0.3 million in Q3 2020. Adjusted EBITDA for the nine - month period that ended on September30 , 2021 improved by 40 % to $ 3 million compared with $ 2.2 million in the nine - month period that ended on September 30 , 2019 . Net loss continues to decrease and was ( $ 0.97 ) million , or loss of ( $ 0.11 ) per diluted share in Q3 2021 compared with a net loss of ( $ 1.6 ) million , or ( $ 0.16 ) per diluted share in Q3 2020. Net loss was ( $ 2.86 ) million ( out of which $ 2.54 million in restructuring costs ) , or loss of ( $ 0.32 ) per diluted share in the nine - month period that ended on September 30 , 2021 , compared with a net loss of ( $ 3.38 ) million , or ( $ 0.37 ) per diluted share in the nine - month period that ended on September 30 , 2020 . The implementation of the strategic footprint rationalization scheme is on - track . The main objective of the new footprint calls for concentration in three main production facilities ( instead of four ) and the creation of a " center of excellence " in the heat transfer activities . In connection with such plan , the Company incurred restructuring expenses of $ 2.5 million and capital expenditures of $ 3.1 million in the nine months of 2021 . Mr. Igal Zamir , CEO and President of TAT Technologies stated , " During the last quarter we continued the strategic rationalization scheme to reduce the main production sites from four to three . We expect to benefit from the internal synergies of combining the heat transfer activity in one center of excellence and improve our cost structure . The process is progressing on track and is expected to be completed by Q2 \ 22 . We continued strengthening our position as Honeywell's premier partner to serve Honeywell's main line of APUs that are used in the majority of the active platform ( including the Boeing 737 family and the Airbus 320 family ) . In this regard we continue to build our capabilities to serve new platform and increase revenues from this segment starting from 2022 " . Mr. Zamir continues : " we continue to enjoy US grants in support of the pandemic impact of $ 2.5M in Q3 and see a sequential improvement in volumes of the MRO activity as the commercial airline industry starts to recover from the meaningful slow - down of the pandemic " . 3