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CHARLOTTE, N.C. - TAT Technologies Ltd. (NASDAQ:TATT) (TASE:TAT Tech), a $518 million market cap company that has delivered an impressive 150% return over the past year, has signed a three-year contract valued at approximately $12 million with an international commercial carrier to provide maintenance, repair, and overhaul (MRO) services for GTCP331-500 Auxiliary Power Units (APUs) used on Boeing 777 aircraft.
The contract, announced Monday, will generate about $4 million in annual revenue for the aviation services provider, adding to its robust revenue growth of 26% over the last twelve months.
"This new contract further strengthens TAT’s expanding position in the APU market," said Igal Zamir, CEO of TAT, in a press release statement. "We continue to build long-term relationships with customers based on our diverse offerings and industry-leading turnaround time."
The company noted that its strategic agreements with Honeywell have contributed to securing this latest contract for the Boeing 777 platform.
TAT Technologies provides various services to commercial and military aerospace industries, including heat transfer solutions, aviation accessories, and MRO services for aviation components. The company’s Limco subsidiary operates an FAA-certified repair station offering heat transfer MRO services to airlines, air cargo carriers, maintenance service centers, and military clients.
The company did not disclose the name of the international carrier that awarded the contract.
In other recent news, TAT Technologies Ltd. has announced a $10 million contract with a leading Israeli defense integrator, which brings the company’s cumulative expected revenues from defense sector contracts to $22 million year-to-date. This agreement includes original equipment manufacturing and maintenance, repair, and overhaul services. Additionally, Lake Street Capital Markets initiated coverage on TAT Technologies with a Buy rating, citing the company’s consistently growing backlog and potential for above-average revenue and earnings growth. Benchmark also raised its price target for TAT Technologies to $36 from $35, following strong first-quarter 2025 results that surpassed expectations. The company reported an adjusted EBITDA margin of 13.5% for the first quarter of 2025, exceeding Benchmark’s forecast of 12.9%. Furthermore, Truist Securities initiated a Buy rating on TAT Technologies, setting a price target of $35. Analysts highlighted the company’s potential for above-market growth and recent achievements in Auxiliary Power Unit repair contracts as positive indicators for near-term performance.
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