TAT Technologies Secures $12 Million Airline Maintenance Contract

TAT Technologies has won a $12 million contract for airline maintenance services. The Israeli-based company provides products and services to the commercial and military aerospace, and ground defense sectors through its facilities in Israel and the US. The contract is for maintenance, repair, and overhaul (MRO) services for aviation components.

Title: TAT Technologies Secures $12 Million Contract for Boeing 777 Maintenance Services

TAT Technologies Ltd. (NASDAQ: TATT), a leading provider of services and products to the commercial and military aerospace and ground defense industries, has secured a significant three-year contract with an international airline. The contract, valued at approximately $12 million, involves providing maintenance, repair, and overhaul (MRO) services for the GTCP331-500 Auxiliary Power Unit (APU) used on the Boeing 777 platform.

The contract, announced on August 18, 2025, underscores TAT Technologies' expanding presence in the APU market and highlights the company's continued growth. The agreement, averaging $4 million per year, will further strengthen TAT's position in the aviation industry and contribute to its revenue streams.

Igal Zamir, CEO of TAT Technologies, commented on the contract, "This new contract further strengthens TAT's expanding position in the APU market. We continue to build long-term relationships with customers based on our diverse offerings and industry-leading turnaround time. Additionally, our leasing business creates compelling synergies with our MRO business, enabling deeper penetration into the half-billion-dollar APU market. The strategic agreements we signed with Honeywell continue to yield tangible revenue opportunities, including this latest award for the B777 platform."

TAT Technologies, based in Israel with facilities in the US, provides a range of services including OEM heat transfer solutions and aviation accessories, MRO services for aviation components, and heat transfer MRO services for airlines, air cargo carriers, maintenance service centers, and the military. The company's Limco subsidiary operates an FAA-certified repair station, which provides heat transfer MRO services.

The company's Q2 2025 financial results highlighted robust growth, with revenue increasing by 18% to $43.1 million, gross profit surging by 35.6% to $10.8 million, and net income climbing by 31.5% to $3.4 million. The value of the company's long-term agreements and backlog grew by approximately $85 million to $524 million, driven by winning several new contracts, including this latest Boeing 777 APU contract.

Despite facing challenges such as the strength of the Israeli shekel and ongoing volatility in the MRO market, TAT Technologies is confident in its ability to sustain growth and expand profit margins through 2026. The company is exploring strategic opportunities to further enhance its growth prospects and is strengthening its Board of Directors with capabilities to support the next phase of its development.

References:
[1] https://www.morningstar.com/news/pr-newswire/20250818ln53809/tat-technologies-secures-three-year-contract-with-an-international-airline-for-boeing-777-platform-with-revenues-of-12-million
[2] https://seekingalpha.com/news/4486750-tat-technologies-secures-three-year-contract-with-an-international-airline
[3] https://www.ainvest.com/news/tat-technologies-q2-2025-earnings-call-highlights-strong-revenue-growth-market-challenges-2508/