Is TAT Technologies Ltd. (TATT) Among Defense Stocks with the Highest EPS Growth in 5 Years?

We recently released a list of 10 Defense Companies Showing the Highest Earnings Per Share Increase Over the Last Five Years In this piece, we will examine how TAT Technologies Ltd. (NASDAQ:TATT) measures up against other stocks featuring the highest earnings per share (EPS) growth over this timeframe.

In recent years, the globe has seen intense political and military strife. The conflict between Russia and Ukraine extends past three years, and the situation in the Middle East escalated when Israel initiated a comprehensive assault on Gaza targeting Hamas. A study indicates that the global count of conflict areas has surged by roughly sixty-six percent since 2021.

READ ALSO: 10 Top-Performing Defense Stocks of 2025 and 10 Lowest Performing Defense Stocks of 2025 So Far .

While the human impact of these wars has been tragic, the defense industry has profited by luring investors into buying up stocks. Several of the world’s top contractors saw their shares book all-time highs last year.

According to a recent report from the International Institute for Strategic Studies (IISS), worldwide defense expenditures reached an all-time peak of $2.46 trillion in 2024. This surge was driven primarily by substantial hikes in military budgets across Asia, Europe, the Middle East, and North Africa, largely as a response to worsening security conditions and heightened threats perceived by these regions. Additionally, decreasing inflation rates globally enabled nations to allocate more funds towards strengthening their respective defenses.

This year has seen global defense stocks soar as cities across Europe release substantial funds to boost their military capabilities. Many regional suppliers are experiencing gains of over ten percent. Additionally, defense companies based in Asia, particularly those located in South Korea and India, have profited significantly from these increased expenditures.

On the contrary, American defense stocks have remained relatively calm this year and haven’t participated in the worldwide upturn because of worries about potential reductions in government budgets and decreased military expenditures in the future should tensions ease with countries like Russia and China. Additionally, the emergence of DOGE has altered how investors perceive the sector.

Even though 2025 began somewhat weakly, many experts continue to hold an upbeat view of the industry as risks seem to be diminishing. These professionals argue that even as global power structures shift towards multiple poles, reducing reliance on deterrent measures remains equally unadvisable.

Investor confidence has been bolstered by two recent developments. In March, President Trump introduced a cutting-edge next-generation fighter aircraft, the F-47, designed to supersede the F-22 Raptor. Additionally, recognizing the strategic rivalry with China, he declared his intention to revive both the U.S.'s military and commercial maritime construction sector, viewing this initiative as crucial for national defense.

Given this, let's turn our attention to the defense stocks that have experienced the greatest increase in earnings per share over the past five years.

A finance expert examining a collection of bonds and equities.

Methodology

To compile this piece, we reviewed screeners to pinpoint stocks within the aerospace and defense sector exhibiting positive earnings per share (EPS) growth over the past half-decade. We then selected the top ten defense-related stocks boasting the highest EPS growth throughout this timeframe. Companies specializing solely in aerospace without involvement in defense contracts were excluded from our selection. The information provided here is accurate up until the market closed on Thursday, April 3, 2025.

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TAT Technologies Ltd. (NASDAQ: TATT )

EPS Growth Over the Last 5 Years: 61.44%

TAT Technologies Ltd. (NASDAQ:TATT), which operates on the NASDAQ stock exchange under the ticker TATT, offers goods and services primarily aimed at the commercial and military aviation industries as well as ground defense systems. This firm stands out within the defense sector due to its significant earnings per share increase recorded over the last half-decade, making it an excellent choice for investors interested in this field.

On March 26, the firm disclosed its financial outcomes for fiscal 2024. The annual revenue jumped by 34.1%, totaling $152.1 million. This period saw a gross profit of $33 million, marking a rise of 47% over the previous year’s figures. Additionally, net income escalated by 139% to reach $11.2 million, equivalent to earnings of $1.0 per diluted share. Nonetheless, cash flow from operational activities turned out negatively at -$5.8 million versus a favorable position of +$2.3 million seen previously.

The previous week saw Benchmark elevate its price objective for TAT Technologies Ltd. (NASDAQ:TATT) to $35 per share from an earlier estimate of $30, keeping the stock's 'Buy' recommendation unchanged. According to the firm, this adjustment was driven by the strong financial outcomes posted particularly in Q4.

Nevertheless, the stock hasn’t gained much interest from investors so far. As per Insider Monkey’s records for the fourth quarter of 2024, just three hedge funds included this company in their portfolio. Renaissance Technologies was the biggest shareholder in TAT Technologies Ltd. (NASDAQ:TATT), holding stakes worth around $4.9 million as of December 31.

Overall, TATT ranks 3rd Among the top 10 defense stocks showing the highest earnings per share growth over five years, we recognize their appeal. However, our confidence leans towards AI stocks as they present stronger prospects for substantial gains and do so more rapidly. One particular AI stock has seen an uptick since early 2025, contrasting sharply with many others in the sector which have declined by approximately 25%. Should you seek an AI equity that looks more favorable compared to TATT yet trades below five times its earnings, consider reviewing our detailed analysis available in our latest report. cheapest AI stock .

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Disclosure: None. This piece was initially published at Insider Monkey .