TAT Technologies secures $10 million defense contract in Israel

Published 28/07/2025, 21:36
TAT Technologies secures $10 million defense contract in Israel

CHARLOTTE, N.C./NETANYA, Israel - TAT Technologies Ltd. (NASDAQ:TATT), which has delivered an impressive 122% return over the past year according to InvestingPro data, announced Monday it has signed a $10 million contract with a leading Israeli defense integrator to supply original equipment manufacturer components.

The agreement brings TAT’s cumulative expected revenues from defense sector contracts in Israel to $22 million year-to-date, according to a company press release. These contracts include both original equipment manufacturing and maintenance, repair, and overhaul services. The company’s strong financial position is reflected in its healthy current ratio of 2.87 and moderate debt levels, as reported by InvestingPro.

"The contracts supporting the Israeli Air Force and global defense leaders underscore TAT’s strategic role as a supplier of components and a provider of critical maintenance services across multiple aerial platforms," said Igal Zamir, President and Chief Executive Officer of TAT.

The company stated it is taking steps to position itself to meet growing demand resulting from recent geopolitical developments and increases in Israel’s defense budget.

TAT Technologies provides services and products to commercial and military aerospace and ground defense industries. Its offerings include heat transfer solutions, aviation accessories, and maintenance services for aircraft components such as jet engine parts, APUs, and landing gears.

The company is listed on both Nasdaq and the Tel Aviv Stock Exchange.

In other recent news, TAT Technologies reported strong first-quarter 2025 results, with an adjusted EBITDA margin of 13.5%, surpassing Benchmark’s expectations of 12.9%. Following these results, Benchmark raised its price target for the company to $36.00, maintaining a Buy rating. Meanwhile, Lake Street Capital Markets initiated coverage with a Buy rating and a $37.00 price target, highlighting the company’s growing backlog and potential for above-average revenue and earnings growth. Truist Securities also began coverage with a Buy rating, setting a $35.00 price target and noting TAT Technologies’ strategic gains in the commercial aerospace aftermarket component repair sector.

Additionally, TAT Technologies announced a public offering of 1,625,000 ordinary shares and a secondary offering of 2,525,000 shares by selling shareholders, with proceeds earmarked for general corporate purposes. The offering’s completion depends on market conditions, with Stifel, Nicolaus & Company and Truist Securities as joint book-running managers. Furthermore, TAT Technologies secured an expanded maintenance, repair, and overhaul partnership with an international cargo carrier, valued between $45 million and $55 million over five years. This contract involves maintenance for aircraft, including Boeing and Airbus models, emphasizing the company’s role in the auxiliary power unit market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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