TAT Tech Secures $10M 5-Year APU MRO Contract with Int'l Air Carrier

TL;DR

**TAT Tech just landed a $10M, 5-year contract for aircraft maintenance, locking in future revenue!**

AI Summary

TAT Technologies Ltd. (NASDAQ: TATT) announced on January 16, 2024, that it has secured a new 5-year contract with an unnamed international air carrier. This agreement, focused on Auxiliary Power Unit (APU) Maintenance, Repair, and Overhaul (MRO) services, is estimated to generate total revenues of $10 million for TAT Technologies. This matters to investors because it demonstrates continued demand for TAT's specialized aviation services, providing a stable revenue stream and potentially boosting future earnings.

Why It Matters

This new contract provides TAT Technologies with a significant, stable revenue stream for the next five years, indicating strong demand for its specialized aviation maintenance services. It signals continued business growth and operational stability, which can positively impact the company's stock performance.

Risk Assessment

Risk Level: low — This filing reports a new contract win, which generally reduces business risk by securing future revenue, rather than introducing new risks.

Analyst Insight

A smart investor would view this as a positive indicator of stable future revenue and continued market relevance for TAT Technologies, potentially warranting a closer look at the company's long-term growth prospects and current valuation.

Key Numbers

• $10 million — Estimated total revenues (from the new 5-year APU MRO services contract)
• 5 years — Contract duration (for the APU MRO services)

Key Players & Entities

• TAT Technologies Ltd. (company) — the registrant and contract recipient
• international air carrier (company) — the client for APU MRO services
• $10 million (dollar_amount) — estimated total revenues from the contract
• January 16, 2024 (date) — date of the press release and contract announcement

Forward-Looking Statements

• TAT Technologies' revenue will see a positive impact from this contract over the next five years. (TAT Technologies Ltd.) — high confidence, target: 2029
• The company may announce additional similar contracts in the aviation MRO sector. (TAT Technologies Ltd.) — medium confidence, target: 2025

FAQ

Key Financial Figures

• $10 million — rvices with estimated total revenues of $10 million 2 ITEM 1 Press Release TAT Technol
• $2 million — s from this contract to be $10 million ($2 million per year). By signing this contract, w

Filing Documents

• zk2430776.htm (6-K) — 23KB
• 0001178913-24-000146.txt ( ) — 24KB

From the Filing

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 F O R M 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of January 2024 TAT TECHNOLOGIES LTD. (Name of Registrant) Hamelacha 5, Netanya 4250504, Israel (Address of Principal Executive Office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F Form 40-F Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ____________ TAT Technologies Ltd. 6-K Items 1. Press Release dated January 16, 2024 re TAT Technologies Ltd. Announcing the signing of another 5-year contract with an international air carrier for APU MRO services with estimated total revenues of $10 million 2 ITEM 1 Press Release TAT Technologies signs another 5-year contract with an international air carrier for APU MRO services with estimated total revenues of $10 million Netanya, Israel, January 16, 2024 – TAT Technologies Ltd. (TASE: TAT Tech, NASDAQ: TATT), a leading supplier of products and services for the commercial and military aviation industries and the ground defense industries, announces a new contract with an international air carrier. This contract is a result of a very successful partnership between the companies over the last several years which led the parties to sign a global fleet contract. As part of this contract, TAT will provide MRO services to the airline's GTCP331 model APUs. TAT estimates total revenues from this contract to be $10 million ($2 million per year). By signing this contract, we further advanced our dominating position as the leading APU 331-200 MRO in the market serving the widely utilized B757/767 fleet by providing APU 331-200 repairs with a reputation for quality and on time delivery to this important market. In 2020 and 2021, TAT (through its fully owned subsidiary, Piedmont Aviation Components based in Greensboro North Carolina) signed multiple strategic contracts with the Fortune 100 multi-national aerospace company Honeywell. Under these contracts, TAT was awarded a 10-year license for repair and overhaul of APUs for Boeing and Airbus's key platforms, including B737, B777, B767/757 and A320 aircraft as well as the C17 which is used for military purposes. The Company is also a global provider for APUs leases to airlines across multiple commercial platforms with an additional exclusive 10 yr. agreement for the B777 aircraft, with Honeywell. Piedmont has completed its facility upgrades required to commence MRO operations for the GTCP331-500 (B777) and GTCP131-9 (A320/B737). Igal Zamir, CEO of TAT stated: "We are very pleased with this contract, which comes after several years of very fruitful relationship. By signing this contract, we established our domination in the commercial segment of MRO for the APU331-200. About TAT Technologies LTD TAT Technologies Ltd. is a leading provider of services and products to the commercial and military aerospace and ground defense industries. TAT operates under four segments: (i) Original equipment manufacturing ("OEM") of heat transfer solutions and aviation accessories through its Gedera facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary. TAT controlling shareholders is the FIMI Private Equity Fund. 3 TAT's activities in the area of OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) broad range of heat transfer solutions, such as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on board aircraft in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units. TAT's activities in the area of MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT's Limco subs

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